UBS 6-K
UBS Group AG (UBS)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 6-K
REPORT OF FOREIGN PRIVATE
ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Date: May 8, 2025
UBS Group AG
(Registrant's Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
(Address of principal executive office)
Commission File Number: 1-36764
UBS AG
(Registrant's Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
Aeschenvorstadt 1, 4051 Basel, Switzerland
(Address of principal executive offices)
Commission File Number: 1-15060
Indicate by check mark whether the registrants file or will file annual
reports under cover of Form 20-F or Form
40-
F.
Form 20-F
☒
Form 40-F
☐
This Form 6-K
consists of the
31 March 2025
Pillar 3 Report
of UBS Group and
significant regulated subsidiaries
and sub-groups, which appears immediately following this page.
Pillar 3 Report
31 March 2025
UBS Group and significant regulated subsidiaries
and sub-groups
Terms used in this report, unless the context requires
otherwise
“UBS”, “UBS Group”, “UBS Group
AG consolidated”, “Group”, “the
Group”, “we”, “us” and
“our”
UBS Group AG and its consolidated subsidiaries
“UBS AG” and “UBS
AG consolidated”
UBS AG and its consolidated subsidiaries
“Credit Suisse AG”
Credit Suisse AG and its consolidated subsidiaries
before the merger
with UBS AG
“Credit Suisse Group“ and “Credit Suisse”
Pre-acquisition Credit Suisse Group
“UBS Group AG” and “UBS
Group AG standalone”
UBS Group AG on a standalone basis
“UBS AG standalone”
UBS AG on a standalone basis
“UBS Switzerland AG” and “UBS
Switzerland AG standalone”
UBS Switzerland AG on a standalone basis
“UBS Europe SE consolidated”
UBS Europe SE and its consolidated subsidiaries
“UBS Americas Holding LLC” and
“UBS Americas Holding LLC consolidated”
UBS Americas Holding LLC and its consolidated subsidiaries
“Credit Suisse International standalone”
Credit Suisse International on a standalone basis
“1m”
One million, i.e. 1,000,000
“1bn”
One billion, i.e. 1,000,000,000
“1trn”
One trillion, i.e. 1,000,000,000,000
In this report, unless the context requires otherwise,
references to any gender shall apply to all genders.
Table of contents
UBS Group
Section 1
Introduction and basis for preparation
Section 2
Section 3
Section 4
Going and gone concern requirements
Section 5
Section 6
Significant regulated subsidiaries and sub-groups
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
UBS Americas Holding LLC consolidated
Section 7
Credit Suisse International standalone
Appendix
Abbreviations frequently used in our financial reports
Contacts
Switchboards
For all general inquiries:
ubs.com/contact
Zurich +41-44-234-1111
London +44-207-567-8000
New York +1-212-821-3000
Hong Kong SAR +852-2971-8888
Singapore +65-6495-8000
Investor Relations
UBS’s Investor Relations team
manages relationships with
institutional investors, research
analysts and credit rating agencies.
ubs.com/investors
Zurich +41-44-234-4100
New York +1-212-882-5734
Media Relations
UBS’s Media Relations team
manages relationships with global
media and journalists.
ubs.com/media
Zurich +41-44-234-8500
London +44-20-7567-4714
New York +1-212-882-5858
Hong Kong SAR +852-2971-8200
Office of the Group Company
Secretary
The Group Company Secretary
handles inquiries directed to the
Chairman or to other members
of the Board of Directors.
UBS Group AG, Office of the
Group Company Secretary
PO Box, CH-8098 Zurich, Switzerland
Zurich +41-44-235-6652
Shareholder Services
UBS’s Shareholder Services team,
a unit of the Group Company
Secretary’s office, manages
relationships with shareholders and
the registration of UBS Group AG
registered shares.
UBS Group AG, Shareholder Services
PO Box, CH-8098 Zurich, Switzerland
Zurich +41-44-235-6652
US Transfer Agent
For global registered share-related
inquiries in the US.
Computershare Trust Company NA
PO Box 43006
Providence, RI, 02940-3006, USA
Shareholder online inquiries:
www.computershare.com/us/
investor-inquiries
Shareholder website:
computershare.com/investor
Calls from the US
+1-866-305-9566
Calls from outside the US
+1-781-575-2623
TDD for hearing impaired
+1-800-231-5469
TDD for foreign shareholders
+1-201-680-6610
Imprint
Publisher: UBS Group AG, Zurich, Switzerland | ubs.com
Language: English
© UBS 2025. The key symbol and UBS are among
the registered and
unregistered trademarks of UBS. All rights reserved.
31 March 2025 Pillar 3 Report |
UBS Group | Introduction and basis for
preparation
2
UBS Group
Introduction and basis for preparation
Scope of Basel III Pillar 3 disclosures
The
Basel
Committee
on
Banking
Supervision
(the
BCBS)
final
Basel III
capital
adequacy
framework
consists
of
three
complementary pillars. Pillar 1 provides a framework for measuring minimum capital requirements
for the credit, market
and operational risks faced by banks. Pillar 2 addresses the principles of the supervisory review
process, emphasizing the
need
for
a
qualitative
approach
to supervising
banks. Pillar
3 requires
banks
to publish
a
range
of
disclosures,
mainly
covering risk, capital, leverage, liquidity and remuneration.
This
report
provides
Pillar 3
disclosures
for
the
UBS
Group
and
prudential
key
figures
and
regulatory
information
for
UBS AG consolidated and standalone,
UBS Switzerland AG standalone,
UBS Europe SE consolidated,
and UBS Americas
Holding LLC consolidated, as well as Credit Suisse
International standalone,
in the respective sections under “Significant
regulated subsidiaries and sub-groups”.
This
Pillar
3
report
has
been
prepared
for
the
first
time
in
accordance
with
the
Swiss
Financial
Market
Supervisory
Authority
(FINMA)
Ordinance
on
the
Disclosure
Obligations
of
Banks
and
Securities
Firms
(DisO-FINMA),
the
corresponding explanatory
notes, and the
underlying BCBS
Basel framework
disclosure requirements.
The revised
CAO
that
incorporates
the
final
Basel III
standards
into
Swiss
law
and
the
five
new
FINMA
ordinances
(including
the
DisO-
FINMA) that contain the implementing
provisions for the rev
ised CAO, entered into force
on 1 January 2025. The DisO-
FINMA replaces
FINMA Circular
2016/1 “Disclosure
– banks”
and incorporates
in particular
new and
revised disclosure
tables on risks and capital requirements.
As UBS
is a
systemically relevant
bank (an
SRB) under
Swiss banking
law,
UBS Group
AG and
UBS AG are
required
to
comply with regulations based on the final Basel
III framework as applicable to Swiss SRBs on a consolidated
basis.
Local
regulators
may
also
require
the
publication
of
Pillar 3
information
at
a
subsidiary
or
sub-group
level.
Where
applicable, these local disclosures
are provided under “Holding
company and significant
regulated subsidiaries and sub-
groups” at
ubs.com/investors
.
Changes to Pillar 3 disclosure requirements
The
DisO-FINMA
includes
new
and
amended
quarterly
tables
as
a
result
of
the
implementation
of
the
final
Basel III
standards in Switzerland.
New quarterly tables
The following new tables are required
on a quarterly basis.
–
CMS1: Comparison of modelled and standardized RWA
at risk level
–
CVA4: RWA flow statements of CVA risk exposures under
SA-CVA
The new
“MR2: Market
risk for
banks using
the IMA”
quarterly table
is not
applicable to
UBS, as
the internal
models
approach (the IMA) for market risk is currently not applied
by UBS.
Amended quarterly tables
The following quarterly tables have been amended.
–
KM1: Key
metrics. The
KM1 disclosures
tables for
UBS Group
AG consolidated,
UBS AG consolidated,
and UBS
AG
standalone now include
pre-output floor risk-weighted
assets (RWA) and
capital ratios. The
output floor,
which is being
phased in until
2028, is currently
not binding for
these scopes. For UBS
Switzerland AG, the output floor
is fully phased
in
and
binding.
Additionally,
the
KM1
table
includes
leverage
ratio
information
incorporating
the
mean
value
for
securities financing transactions (SFT) assets.
–
OV1: Overview of RWA.
The OV1 disclosure
table now includes new
rows for the level
and the impact of
the output
floor, which is currently not binding at the level of UBS
Group AG consolidated.
–
LR1: Summary
comparison
of accounting
assets vs
leverage ratio
exposure measure.
Under the
new regulation,
the
disclosure requires
banks to
carve out
the expected
losses on
advanced internal-ratings
based portfolio
less general
provisions (IRB shortfall) information on a separate
line. All other changes to the disclosure are not applicable to
UBS.
–
LR2: Leverage ratio common disclosure. The new regulation requires banks to disclose the
leverage ratio reflecting the
daily average of SFTs.
31 March 2025 Pillar 3 Report |
UBS Group | Introduction and basis for
preparation
3
Significant regulatory developments, disclosure requirements
and other changes
Developments in Switzerland aimed at strengthening financial
stability
Based
on
its
report
on
banking
stability
from
April
2024,
the
Swiss
Federal
Council
is
expected
to
launch
a
public
consultation
on
the
implementation
of
its
proposed
measures
at
the
ordinance
level
and
present
its
proposals
for
legislative
amendments
to
the
Swiss
Parliament
in
June
2025.
The
capital
treatment
of
foreign
participations
will
be
regulated at the
legislative level, rather than
at the ordinance
level; therefore
the respective measures
will be presented
to
the
Parliament.
Certain
proposals
that
are
under
consideration,
in
particular
the
capital
treatment
of
foreign
participations,
if
adopted,
could
require
UBS
Group
AG
and
UBS
AG
to
hold
a
significantly
higher
level
of
capital.
However,
the
ultimate
impact
of
the
proposals
on
UBS
cannot
yet
be
assessed,
due
to
the
broad
range
of
possible
outcomes at the end of the regulatory process.
Developments related to the implementation of the final
Basel III standards
In Switzerland,
the
amendments
to the
CAO that
incorporate
the
final
Basel III standards
into
Swiss
law
entered
into
force on 1 January 2025. The adoption of the final
Basel III standards led to an USD 8.6bn reduction
in the UBS Group’s
RWA. A
USD 6.5bn increase
in market
risk RWA
resulting from
the implementation
of the
Fundamental Review
of the
Trading
Book
(the
FRTB)
framework
was
more
than
offset
by
a
USD 9.0bn
reduction
in
operational
risk
RWA
and
a
USD 6.1bn reduction in
credit and counterparty
credit risk RWA.
The output floor,
which is being phased
in until 2028,
is currently not binding for the UBS Group.
In January 2025, the UK Prudential Regulation Authority (the PRA) announced that it has postponed the implementation
of the final Basel III standard by one year, to 1 January 2027, citing the need for greater
clarity on US plans. The PRA left
open the possibility of further postponement. The
date for the full phase-in
of the output floor continues
to be 1 January
- With UBS’s
entities not being
subject to the
corresponding UK regulation,
the overall impact
on UBS is
expected
to be limited.
In the EU, the final Basel III requirements became applicable as of 1 January 2025, except for the FRTB requirements, the
implementation of which has been delayed until at least 1 January 2026. In March 2025, the European Commission (the
EC) launched a consultation to determine the approach for implementing the FRTB requirements, as recent international
developments indicate
further delays
in the
FRTB implementation,
particularly in
the US
and the
UK. UBS
Europe SE
is
subject
to
Basel III
regulations
in
the
EU.
The
impact
on
UBS
can
only
be
determined
once
the
EC
publishes
its
final
decision.
In the
US, banking
agencies,
including the
Federal
Reserve
Board, have
been discussing
amendments
to their
original
proposals
regarding
the
implementation
of
the
final
Basel III
standards.
The
timing
and
the
content
of
a
re-proposal
remain
uncertain.
UBS
Americas
Holding
LLC
is
subject
to
the
US
requirements.
The
impact
on
UBS
can
only
be
determined once the US publishes its final rules.
Other developments
Capital returns
On 10
April
2025, the
shareholders
approved
a
dividend
of
USD 0.90
per
share
at
the
Annual General
Meeting.
The
dividend was paid on 17 April 2025 to shareholders
of record on 16 April 2025.
In
line
with
our
plan
to
repurchase
USD 1bn
of
shares
in
the
first
half
of
2025,
we
completed
share
repurchases
of
USD 0.5bn
during
the
first
quarter
of 2025.
We
plan
to repurchase
an additional
USD 0.5bn
of
shares
in the
second
quarter
of
2025,
and
USD 2bn
of
shares
in
the
second
half
of
2025.
We
are
maintaining
our
ambition
for
share
repurchases in 2026 to
exceed full-year 2022
levels of USD 5.6bn. Our
share repurchases will
be subject to maintaining
our common equity tier 1 capital ratio target of around 14%,
achieving our financial targets and the absence of material
and immediate changes to the current capital regime
in Switzerland.
Frequency and comparability of Pillar 3 disclosures
The
DisO-FINMA
specifies
the
reporting
frequency
for
each
disclosure.
In
line
with
these
FINMA-specified
disclosure
requirements,
including
with
regard
to
comparative
periods,
we
provide
quantitative
comparative
information
as
of
31 December 2024, prepared
in accordance with
FINMA Circular
2016/1 “Disclosure
– banks”, for
disclosures required
on a
quarterly basis.
Where specifically
required by
FINMA and / or
the BCBS,
we disclose
comparative information
for
additional reporting dates.
›
Refer to the 31 December 2024 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about previously published quarterly movement commentary
31 March 2025 Pillar 3 Report |
UBS Group | Key metrics
4
Key metrics
Key metrics for the first quarter of 2025
The KM1
and KM2
tables below
are based
on the
Swiss Financial
Market Supervisory
Authority (FINMA)
Ordinance on
the Disclosure Obligations
of Banks and
Securities Firms
(DisO-FINMA) rules.
The KM2 table
includes a reference
to the
total loss-absorbing capacity (TLAC) term sheet, published by the
Financial Stability Board (the FSB). The FSB provides this
term sheet at
fsb.org/2015/11/total-loss-absorbing-capacity-tlac-principles-and-term-sheet
.
Our capital ratio
increased,
reflecting a decrease
in our risk-weighted
assets (RWA) and
an increase in
our tier 1 capital.
Our
leverage
ratio
decreased,
reflecting
an
increase
in
the
leverage
ratio
denominator
(the
LRD),
partly
offset
by
an
increase in tier 1 capital.
Our common equity
tier 1 (CET1) capital
decreased by USD 2.2bn
to USD 69.2bn, mainly
as operating profit
before tax
of USD 2.1bn and
foreign currency translation gains
of USD 0.8bn were
more than offset by
a net share
repurchase effect
of
USD 3.0bn,
dividend
accruals
of
USD 0.8bn,
current
tax
expenses
of
USD 0.5bn
and
a
negative
effect
from
compensation-
and own-share-related capital components
of USD 0.5bn. The net share
repurchase effect of USD 3.0bn
reflects actual
share repurchases
of USD 0.5bn
made under
our 2024
share repurchase
program in
the first
quarter of
2025 and a USD 2.5bn capital reserve for expected
future share repurchases.
Our tier 1
capital
increased
by USD 0.1bn
to USD 87.8bn,
with a
USD 2.3bn
increase
in additional
tier 1 (AT1)
capital
more than
offsetting the
aforementioned
USD 2.2bn decrease
in CET1
capital. The
increase in
AT1 capital
was mainly
driven by
the issuance
of new
AT1 capital
instruments equivalent
to USD 3.0bn
and positive
impacts from
interest rate
risk hedge, foreign
currency translation and
other effects, partly
offset by the
call of AT1
capital instruments equivalent
to USD 1.3bn.
The TLAC available as
of 31 March 2025 included CET1
capital, AT1 capital and
non-regulatory capital elements of TLAC.
Our available TLAC increased by USD 1.8bn to USD 187.2bn, reflecting the aforementioned increase in tier 1 capital and
a
USD 1.7bn
increase
in
non-regulatory
capital
elements
of
TLAC.
The
increase
in
non-regulatory
capital
elements
of
TLAC was
driven by
new issuances
of TLAC-eligible
senior
unsecured debt
instruments
totaling USD
3.0bn equivalent
and positive impacts
from interest rate
risk hedge, foreign
currency translation and
other effects. These effects
were partly
offset by
the call
of USD 3.7bn
equivalent of
TLAC-eligible senior
unsecured debt
instruments and
a USD 0.2bn
TLAC-
eligible senior unsecured debt instrument ceasing to
be eligible as gone concern
capital as it entered the final
year before
maturity.
During the
first quarter
of 2025,
RWA decreased
by USD 15.3bn
to USD 483.3bn,
driven by
an USD 11.4bn
decrease
resulting from
asset size
and other
movements, an
USD 8.6bn reduction
as a
result of
the implementation
of the
final
Basel III
standards,
and
a
USD 1.1bn
reduction
resulting
from model
updates
and other
methodology
changes.
These
decreases were partly offset by a USD 5.9bn increase in currency
effects.
The
LRD
increased
by
USD 42.1bn
to
USD 1,561.6bn,
driven
by
an
increase
of
USD 28.8bn
as
a
result
of
the
implementation of the
final Basel III standards
and currency effects
of USD 26.5bn, partly
offset by asset
size and other
movements of USD 13.2bn.
The quarterly average
liquidity coverage ratio
(the LCR) of
the UBS Group
decreased 7.4 percentage
points to 181.0%,
remaining above the prudential requirement communicated by FINMA. The movement in the quarterly average
LCR was
primarily driven by
a decrease in
high-quality liquid assets
of USD 12.7bn to
USD 318.7bn, mainly reflecting
lower cash
available due to
a decrease
in customer
deposits, funding
of additional
trading assets
and lower
debt issued
measured
at amortized
cost, partly
offset by
higher cash
available from
lower lending
assets and
higher proceeds
from securities
financing transactions. The average
net cash outflows remained largely
unchanged at USD 176.2bn, as
higher outflows
from debt issued at amortized cost and customer deposits were substantially
offset by higher net inflows from securities
financing transactions.
As
of
31 March
2025,
the
net
stable
funding
ratio
of
the
UBS
Group
decreased
1.3 percentage
points
to
124.2%,
remaining
above
the
prudential
requirement
communicated
by
FINMA.
Available
stable
funding
(ASF)
increased
by
USD 4.9bn
to
USD 861.7bn,
mainly
driven
by
a
shift
in
client
deposit
composition
resulting
in
a
more
beneficial
ASF
treatment.
Required stable funding increased by USD 11.3bn to USD 693.8bn, primarily
reflecting higher lending assets,
largely due to currency effects, partly offset by lower derivative
balances.
31 March 2025 Pillar 3 Report |
UBS Group | Key metrics
5
KM1: Key metrics
USD m, except where indicated
31.3.25
31.12.24
30.9.24
30.6.24
31.3.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
69,152
71,367
74,213
76,104
77,663
2
Tier 1
87,837
87,739
91,024
91,804
92,983
3
Total capital
87,837
87,739
91,025
91,804
92,984
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
483,276
498,538
519,363
511,376
526,437
4a
Total risk-weighted assets (pre-floor)
1
483,276
4b
Minimum capital requirement
2
38,662
39,883
41,549
40,910
42,115
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
14.31
14.32
14.29
14.88
14.75
5b
Common equity tier 1 ratio (%) (pre-floor)
1
14.31
6
Tier 1 ratio (%)
18.18
17.60
17.53
17.95
17.66
6b
Tier 1 ratio (%) (pre-floor)
1
18.18
7
Total capital ratio (%)
18.18
17.60
17.53
17.95
17.66
7b
Total capital ratio (%) (pre-floor)
1
18.18
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
2.50
2.50
2.50
2.50
2.50
9
Countercyclical buffer requirement (%)
0.13
0.16
0.17
0.16
0.15
9a
Additional countercyclical buffer for Swiss mortgage loans
(%)
0.31
0.37
0.38
0.33
0.32
10
Bank G-SIB and / or D-SIB additional requirements (%)
1.50
3
1.00
1.00
1.00
1.00
11
Total of bank CET1 specific buffer requirements (%)
4
4.13
3.66
3.67
3.66
3.65
12
CET1 available after meeting the bank’s minimum capital requirements (%)
5
9.81
9.60
9.53
9.95
9.66
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
1,561,583
1,519,477
1,608,341
1,564,201
1,599,646
14
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves)
6
5.62
5.77
5.66
5.87
5.81
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
1
5.62
14c
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
1, 6
5.60
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
1
5.60
14e
Minimum capital requirements
1, 7
46,848
Liquidity coverage ratio (LCR)
8
15
Total high-quality liquid assets (HQLA)
318,735
331,481
360,628
378,235
422,617
16
Total net cash outflow
176,190
176,008
181,051
178,452
192,106
16a
of which: cash outflows
362,013
347,761
342,952
342,383
348,693
16b
of which: cash inflows
185,823
171,753
161,901
163,931
156,588
17
LCR (%)
180.96
188.37
199.25
211.99
220.21
Net stable funding ratio (NSFR)
18
Total available stable funding
861,717
856,804
904,295
882,282
887,037
19
Total required stable funding
693,777
682,508
712,773
689,025
701,560
20
NSFR (%)
124.21
125.54
126.87
128.05
126.44
1 First-time disclosure, based on the final Basel III standards implemented on 1
January 2025.
2 Calculated as 8% of total RWA, based on total capital minimum requirements,
excluding CET1 buffer requirements.
3 The G-SIB
additional CET1 capital buffer requirement
increased to 1.5%, effective 1
January 2025. The increase
follows the acquisition of Credit
Suisse Group in June 2023.
4 Excludes non-BCBS capital buffer
requirements for risk-weighted positions
that are directly or
indirectly backed by
residential properties in Switzerland.
5 Represents the CET1 ratio
that is available to
meet buffer requirements.
Calculated as the
CET1 ratio minus the BCBS CET1 capital
requirement and, where applicable, minus the BCBS
tier 2 capital requirement met with CET1 capital.
6 There is currently no temporary exemption
of central bank reserves
for UBS.
7 The higher of capital requirements based on
8% RWA or 3% LRD.
8 Calculated after the application of haircuts and inflow
and outflow rates, as well as,
where applicable, caps on Level 2 assets
and
cash inflows. Calculated based on an
average of 62 data points in
the first quarter of 2025 and 64
data points in the fourth quarter
of 2024. For the prior
-quarter data points, refer to the
respective Pillar 3 Report,
available under “Pillar 3 disclosures” at ubs.com/investors, for more information.
KM2: Key metrics – TLAC requirements (at resolution group level)
1
USD m, except where indicated
31.3.25
31.12.24
30.9.24
30.6.24
31.3.24
1
Total loss-absorbing capacity (TLAC) available
187,168
185,395
194,907
197,690
196,970
2
Total RWA at the level of the resolution group
483,276
498,538
519,363
511,376
526,437
3
TLAC as a percentage of RWA (%)
38.73
37.19
37.53
38.66
37.42
4
Leverage ratio exposure measure at the level of the resolution group
1,561,583
1,519,477
1,608,341
1,564,201
1,599,646
5
TLAC as a percentage of leverage ratio exposure measure (%)
11.99
12.20
12.12
12.64
12.31
6a
Does the subordination exemption in the antepenultimate
paragraph of
Section 11 of the FSB TLAC Term Sheet apply?
No
6b
Does the subordination exemption in the penultimate paragraph of
Section 11 of the FSB TLAC Term Sheet apply?
No
6c
If the capped subordination exemption applies, the amount of funding
issued that ranks pari passu with excluded liabilities and that is
recognized as external TLAC, divided by funding issued that ranks pari
passu with excluded liabilities and that would be recognized
as external
TLAC if no cap was applied (%)
N/A – Refer to our response to 6b.
1 Resolution group level is defined as the UBS Group AG consolidated level.
31 March 2025 Pillar 3 Report |
UBS Group | Risk-weighted assets
6
Risk-weighted assets
Overview of RWA and capital requirements
The
OV1
table
below
provides
an
overview
of
our
risk-weighted
assets
(RWA)
and
the
related
minimum
capital
requirements by
risk type.
The table
presented is
based on
the respective
Swiss Financial
Market Supervisory
Authority
(FINMA) template and empty rows indicate current non-applicability
to UBS.
During the
first quarter
of 2025,
RWA decreased
by USD 15.3bn
to USD 483.3bn,
driven by
an USD 11.4bn
decrease
resulting from
asset size
and other
movements, an
USD 8.6bn reduction
as a
result of
the implementation
of the
final
Basel III
standards,
and
a
USD 1.1bn
reduction
resulting
from model
updates
and other
methodology
changes.
These
decreases were partly offset by a USD 5.9bn increase in currency
effects.
Credit risk RWA increased by USD 3.6bn, driven by a
USD 4.8bn increase in currency effects and a USD 2.2bn increase as
a result of the
implementation of the final Basel III standards,
partly offset by decreases
of USD 2.0bn resulting from asset
size and other movements,
as well as model updates and other methodology changes
of USD 1.4bn.
–
The USD 2.2bn increase in row 1, ”Credit risk (excluding counterparty credit risk)”, resulting from the implementation
of
the
final
Basel III
standards
was
primarily
caused
by
the
shift
of
equity
exposures
from
the
simple
risk
weight
approach, disclosed in row 11,
“Equity positions under the simple risk weight approach”, under Basel III to row 1. The
impact of this shift on row 1
was USD 3.6bn. This is lower than the USD 5.5bn reported
in row 11 as on 31 December
2024, mainly due to risk weight changes and
the removal of a 1.06 multiplier on
risk weights calculated using internal
ratings-based
(IRB)
models.
Excluding
this
change,
the
remaining
credit
risk
RWA
decreased
as
a
result
of
the
implementation
of
the
final
Basel III
standards,
primarily
due
to
the
removal
of
a
1.06
multiplier
on
risk
weights
calculated
using
IRB
models,
which
more
than
offset
other
changes,
including
the
establishing
of
floors
and
the
introduction of regulatory-mandated loss-given-default parameters
for financial institutions and
large corporate clients
under the foundation internal ratings-based (F-IRB) approach
.
–
The
USD 2.0bn
decrease
in
asset
size
and
other
movements
was
mainly
driven
by
our
actions
to
actively
unwind
exposures
in Non-core
and
Legacy, in
addition
to the
natural
roll-off,
and lower
RWA from
loans
in Global
Wealth
Management, partly offset by higher RWA from loans and loan
commitments in the Investment Bank.
–
The USD 1.4bn decrease
from model updates
and other methodology
changes not related
to the implementation
of
the
final Basel
III standards
was
predominantly
attributable
to the
establishment
of a
new
model for
private-equity
subscription loans.
Counterparty
credit
risk
(CCR)
RWA
decreased
by
USD 7.0bn,
driven
by
a
USD 4.5bn
decrease
as
a
result
of
the
implementation
of
the
final
Basel III
standards,
as
well
as
a
USD 3.1bn
decrease
resulting
from
asset
size
and
other
movements, partly offset by a USD 0.6bn increase in currency
effects.
–
The USD 4.5bn
decrease resulting
from the
implementation of
the final
Basel III standards
was mainly
driven by
the
removal
of
a
1.06
multiplier
on
risk
weights
calculated
using
IRB
models,
as
well
as
the
application
of
the
F-IRB
approach for exposures to financial institutions and large
corporate clients.
–
The USD 3.1bn
decrease from
asset size
and other
movements was
mainly driven
by lower
RWA from
derivatives in
the Investment Bank.
For changes to
row 11, “Equity
positions under the
simple risk weight
approach during the
5-year transitional period”,
refer to the aforementioned credit risk RWA comment.
Market risk RWA increased by USD 4.2bn, driven by the implementation of the
Fundamental Review of the Trading Book
(the FRTB) framework,
which increased RWA
by USD 6.5bn. This
increase was partly
offset by an
asset size decrease
of
USD 2.3bn, largely due to derisking within Non-core and
Legacy.
Operational risk
RWA decreased
by USD 9.0bn
to USD 136.4bn,
as a
result of
the implementation
of the
standardized
approach for determining regulatory capital under the
final Basel III standards.
The flow tables for
credit risk, CCR
and credit valuation
adjustment (CVA) RWA
below provide further
details regarding
the movements in RWA in the first quarter of 2025.
›
Refer to the “Introduction and basis for preparation” section
of this report for more information about the regulatory standards
applied
›
Refer to the “Capital management”
section of the UBS Group first quarter 2025
report, available under
“
Quarterly reporting” at
ubs.com/investors
, for more information about capital management and
RWA, including details regarding movements in RWA
during the first quarter of 2025
31 March 2025 Pillar 3 Report |
UBS Group | Risk-weighted assets
7
OV1: Overview of RWA
Minimum
capital
requirements
1
USD m
31.3.25
31.12.24
31.3.25
1
Credit risk (excluding counterparty credit risk)
239,547
235,955
19,164
2
of which: standardized approach (SA)
57,511
51,817
4,601
2a
of which: non-counterparty-related risk
2
15,712
15,667
1,257
3
of which: foundation internal ratings-based (F-IRB) approach
3
38,171
3,054
4
of which: supervisory slotting approach
1,632
1,745
131
5
of which: advanced internal ratings-based (A-IRB) approach
142,233
182,393
11,379
5a
of which: adjustments related to the Swiss sectoral real estate floor
for exposures secured by real estate in Switzerland
3, 4
6
Counterparty credit risk
5
30,135
37,182
2,411
7
of which: SA for counterparty credit risk (SA-CCR)
7,155
8,315
572
8
of which: internal model method (IMM)
12,684
16,397
1,015
8a
of which: value-at-risk (VaR)
6,358
8,107
509
9
of which: other CCR
3,937
4,364
315
10
Credit valuation adjustment (CVA)
9,322
8,735
746
10a
of which: full basic approach (BA-CVA)
3
5,066
405
10b
of which: standardized approach (SA-CVA)
3
4,256
340
11
Equity positions under the simple risk weight approach during the 5-year
transitional period
6
5,544
12
Equity investments in funds – look-through approach
2,046
2,400
164
13
Equity investments in funds – mandate-based approach
1,121
789
90
14
Equity investments in funds – fallback approach
456
452
37
15
Settlement risk
343
184
27
16
Securitization exposures in banking book
6,739
7,433
539
17
of which: securitization internal ratings-based approach (SEC-IRBA)
3,550
3,547
284
18
of which: securitization external ratings-based approach (SEC-ERBA),
including internal assessment approach (IAA)
971
977
78
19
of which: securitization standardized approach (SEC-SA)
2,219
2,909
177
20
Market risk
31,352
27,189
2,508
21
of which: standardized approach (SA)
31,352
337
2,508
22
of which: internal models approach (IMA)
26,852
23
Capital charge for switch between trading book and banking book
24
Operational risk
136,394
145,426
10,912
25
Amounts below thresholds for deduction (250% risk weight)
7
25,820
27,249
2,066
25a
of which: deferred tax assets
17,553
18,066
1,404
26
Output floor applied (%)
3,8
60
5
27
Floor adjustment (before application of transitional cap)
3,9
28
Floor adjustment (after application of transitional cap)
10
29
Total
483,276
498,538
38,662
1 Calculated based on 8% of RWA.
2 Non-counterparty-related risk includes property, equipment, software and other items.
3 First-time disclosure, based on the final Basel III standards implemented on 1 January
2025.
4 The Swiss sectoral real
estate floor is not applicable at the
level of UBS Group AG consolidated.
5 Excludes settlement risk, which is separately
reported in line 15 “Settlement risk”.
Includes RWA with
central counterparties. The
split between the sub-components of counterparty
credit risk refers to the
calculation of the exposure measure.
6 The simple risk-weight approach is
no longer applicable at UBS,
and
equity positions in the banking book
are included in row 2. The
5-year transitional period is
effective as of 1 January
2025, but is not applicable to
UBS.
7 Includes Items subject to threshold
deduction treatment
that do not exceed their respective threshold and are risk weighted
at 250%. Items subject to threshold deduction treatment include significant investments in common shares of
non-consolidated financial institutions
(banks, insurance and other financial entities) and deferred tax assets arising from temporary differences.
8 The overall output floor of 72.5% is subject to a phase-in until 1 January 2028. As of 1 January 2025, the
applicable overall output
floor at the
level of UBS
Group AG consolidated
is 60%. In
2026 and 2027,
the output floor
will increase
by 5% per
year,
to 65% and
70%, respectively.
9 FINMA has
not opted to
implement a transitional cap
that would limit the
increase in RWA to
25% of a bank’s
RWA before the application
of the output floor.
10 Of our Basel
finalized RWA under the
standardized approach, 60%
are
below our actual Basel III finalized RWA. Therefore, the overall
output floor is not binding, and our RWA before and after the effects of the overall output floor are equal.
Comparison of modeled and standardized RWA at risk level
In this Pillar 3 report, we are introducing the ”CMS1: Comparison of modelled and standardized RWA at risk level” table
for the
first time.
The CMS1
table compares
RWA determined
using models
that UBS
has FINMA
approval to
use with
RWA determined under the
full standardized approach as
defined by FINMA.
The table also provides
the full standardized
approach for RWA
that are
the base of
the phased-in overall
output floor. The
purpose of the
overall output floor
is to
ensure
that
banks’
capital
requirements
based
on
modeled
approaches
where
permitted
do
not
fall
below
a
certain
percentage
of
capital
requirements
based
on
the
full
standardized
approach,
thereby
reducing
excessive
variability
of
RWA
and
enhancing
the
comparability
of
risk-based
capital
ratios
across
banks.
The
impact
of
the
output
floor,
if
applicable, will be disclosed in the “OV1: Overview of RWA”
table in rows 27 and 28. The applicable threshold pursuant
to the reporting date is
disclosed in row 26 of
the OV1 table, and in
column e in the CMS1
table below. The output floor,
which is at 60% as of 1 March 2025, will incrementally increase to a level of 72.5% by 2028.
As of 31 March 2025, the
floor is
not binding
at the
level of
UBS Group,
i.e. the
total of
our actual
RWA shown
in column
c in
the CMS1
table
below is greater
than 60% of
the RWA calculated
under the full
standardized approach shown in
column e, and
therefore
no adjustment is required. UBS
is undertaking mitigating actions with
respect to RWA under the
standardized approach
to minimize a future floor adjustment required as the level
of the output floor increases.
›
Refer to “Overview of RWA and capital requirements” in this section for information
about the OV1 table
The table
below provides
a summary
of the
key conceptual
differences between
the internal
model approach
and the
standardized approach.
31 March 2025 Pillar 3 Report |
UBS Group | Risk-weighted assets
8
Key differences between the internal model approach and the standardized approach
Internal model approach
Standardized approach
Key impact
Risk weighting
Reliance on internal ratings where each
counterparty/transaction receives a rating.
Reliance on external credit assessment institutions
where allowed in the regulatory framework.
Modelled approach produces RWA that is more
risk-sensitive.
Granular risk-sensitive risk weights differentiation
via individual probability of defaults (PDs) and
loss given defaults (LGDs) for mortgages.
Less granular risk weights based on loan-to-value
(LTV)
bands for mortgages.
The Group’s residential mortgage portfolio is
focused on the Swiss market, and the Group has
robust review processes in place concerning
borrowers’ ability to repay. This results in the
Group’s residential mortgage portfolio having a low
average LTV and results in an average risk-weight
of 19% under the A-IRB approach.
Modeled LGD captures transaction quality
features incl. collateralization. Under the
foundation internal rating-based (F-IRB)
approach, the LGD values are calculated based
on the rules set by regulatory authorities. This is
applicable for banks and large corporates.
No differentiation for transaction features.
Impact relevant across all asset classes.
Credit risk mitigation
Credit risk mitigation recognized via risk-sensitive
LGD or exposure at default (EAD).
Limited recognition of credit risk mitigation.
Standardized approach RWA higher than modeled
RWA for most transaction types.
Wider variety of eligible collateral.
Restricted list of eligible collateral.
Limited recognition of collateral results in higher
RWA for Lombard lending and securities financing
transactions (SFTs).
Repo value-at-risk (VaR)
allows use of VaR
models to estimate exposure and collateral for
SFTs. Approach permits full diversification and
netting across all collateral types.
Conservative and crude regulatory haircuts with
limited risk-sensitivity.
The effects
of guarantees and credit derivatives
are considered through either adjusting PD
and / or LGD estimates. UBS applies the F-IRB
approach for guarantee recognition.
In case of eligible guarantees and credit derivatives,
substitution is applied and the risk weight
applicable to the protection provider can be
assigned to the protected portion of the underlying
exposure.
CCF
A credit conversion factor (CCF) is applied to
model expected future drawdowns over the 12-
month period, irrespective of the actual maturity
of a particular transaction. The CCF includes
downturn adjustments and is the result of
analysis of internal data and expert opinion.
Credit exposure equivalents are determined by
applying CCF to off-balance sheet items. The CCFs
vary based on product type, maturity and the
underlying contractual agreements.
Modeled CCFs can be more tailored and
differentiated.
EAD for derivatives
Internal model method (IMM) facilitates the use
of a Monte Carlo simulation to estimate
exposure.
SA-CCR is calculated as the replacement costs plus
regulatory add-ons that take into account potential
future market moves at predetermined fixed rates.
For large,
diversified derivatives portfolios,
standardized EAD is higher than modeled EAD.
Application of multiplier on IMM exposure
estimate.
Differentiates add-ons by five exposure types and
three maturity buckets only.
Variability in holding period applied to
collateralized transactions, reflecting liquidity
risks.
Limited netting can be recognized.
EAD for SFTs
The repo VaR approach is a model based on a
Monte Carlo simulation and historical calibration
to estimate exposure, computed as quantile
exposure.
The comprehensive approach considers the adjusted
exposure after applicable supervisory haircuts on
both the exposure and the collateral received to
take account of possible future fluctuations in the
value of either the exposure or the collateral.
For large, diversified SFT portfolios, standardized
EAD is higher than modeled EAD.
Maturity in risk weight
Regulatory RWA function considers maturity: the
longer the maturity, the higher the risk weight.
No differentiation for maturity of transactions,
except for interbank exposures.
Model approach produces lower RWA for high-
quality, short-term transactions.
Credit valuation
adjustment
Not applicable under the final Basel III standards.
UBS calculates the credit valuation adjustment
(CVA) risk capital requirement using both the
standardized approach (SA-CVA) and the basic
approach (BA-CVA) in line with the final Basel III
standards. The SA-CVA uses sensitivities to market
risk factors (e.g. interest rates and credit spreads)
and uses those sensitivities with regulatory-
prescribed risk weights and correlations to arrive at
a capital charge. The BA-CVA approach is simpler
and less risk-sensitive.
Where the BA-CVA and the SA-CVA is applied
under the output floor calculation, the application
of internal ratings is not permitted.
Securitization exposures
in the banking book
The regulatory capital requirements are
calculated using a waterfall logic of approaches.
First, the securitization internal ratings-based
approach (SEC-IRBA) is applied, if possible. If this
approach cannot be applied, one of the
standardized approaches is applied.
If the SEC-IRBA cannot be applied, the regulatory
capital requirements are calculated using the
following hierarchy of approaches:
the securitization
external ratings-based approach or the
securitization standardized approach. Otherwise, a
1,250% risk weight is applied as a fallback.
31 March 2025 Pillar 3 Report |
UBS Group | Risk-weighted assets
9
Key differences between the internal model approach and the standardized approach (continued)
Internal model approach
Standardized approach
Key impact
Market risk
UBS does not apply the internal model approach
for market risk.
UBS currently applies the standardized approach of
the FRTB framework, in which minimum market risk
capital requirements are computed on the basis of
three components: the sensitivities-based method
(the SBM), the default risk charge (the DRC) and
the residual risk add-on (the RRAO). The SBM
captures delta, vega and curvature risk of the
underlying trading positions, the DRC uses the
jump-to-default risk in positions subject to equity
and credit risk, and positions that may not be
adequately capitalized by the SBM and the DRC
additionally attract an RRAO charge.
Where the standardized approach is applied under
the output floor calculation, the application of
internal ratings is not permitted.
The new FRTB framework replaced the VaR-
and
stressed VaR-based Basel 2.5 market risk
framework.
Operational risk
Not applicable under the final Basel III standards.
The standardized approach is based on the business
indicator component, derived from financial
statement metrics, as well as the internal loss
multiplier, derived from average historical
operational losses. The new framework replaced the
advanced measurement approach.
As
of
31 March
2025,
the
output
floor
is
set
at
USD 439.8bn,
representing
60%
of
RWA
calculated
using
the
full
standardized
approach
effective
for
the
full
year
2025.
This
floor
remains
USD 43.5bn
below
the
actual
RWA
of
USD 483.3bn.
The
difference
of
USD 249.7bn
between
the
RWA
calculated
using
the
full
standardized
approach
of
USD 733.0bn and
actual RWA
of USD 483.3bn
is primarily driven
by USD 126.4bn
from credit risk
RWA, USD 108.8bn
from
CCR
RWA,
USD 8.5bn
from
securitization
RWA
and
USD 5.7bn
from
CVA
RWA.
UBS
is
undertaking
mitigating
actions with the aim of reducing the full standardized approach RWA
.
Credit risk
RWA under
the full
standardized approach
are higher
than actual
RWA. Under
the standardized
approach,
fixed
risk
weights
are
applied
to
residential
mortgage
exposures,
depending
on
the
loan-to-value
(LTV).
The
internal
model-based approach considers borrowers’ ability to service debt more accurately, including mortgage affordability and
calibration based
on historic
data. The
Group’s residential
mortgage portfolio
is focused
on the
Swiss market,
and the
Group has robust review processes
in place concerning borrowers’
ability to repay. This results
in the Group’s residential
mortgage
portfolio
having
a
low
average
LTV
and
results
in
an
average
risk
weight
of
19%
under
the
advanced
IRB
approach. For Lombard lending the average risk weight using internal models is around
10%. The risk weight under the
standardized approach is higher
for these exposures
primarily due to
the differences in
the treatment of
collateral. Further
corporate
exposures
have
higher
risk
weights
under
the
standardized
approach
compared
with
an
average
52%
risk
weight under the internal model approach.
CCR RWA
under the full
standardized approach are
higher than actual
RWA, primarily reflecting
higher risk weights
under
the standardized approach compared with
the IRB risk weights
mainly in the corporate asset
class, especially on managed
funds.
In
addition
to
risk
weights,
exposures
calculated
under
the
standardized
approach
are
higher,
because
the
standardized approach does not fully recognize the benefits
of netting, portfolio diversification and collateral.
CVA RWA
calculated
using
the
full standardized
approach
are
higher than
actual
RWA, as
the
application
of internal
ratings is not permitted under the standardized approach
for output floor calculations.
Securitization RWA calculated
using the full
standardized approach are
higher than actual
RWA, due to
more conservative
assumptions
and
less
granular
risk
assessments
permitted
under
the
SEC-SA
when
compared
with
the
SEC-IRBA
framework.
31 March 2025 Pillar 3 Report |
UBS Group | Risk-weighted assets
10
CMS1: Comparison of modelled and standardized RWA at risk level
31.3.25
a
b
c
d
e
USD m
RWA for modelled
approaches that UBS has
FINMA approval to use
RWA for portfolios
where standardized
approaches are used
Total Actual RWA
(i.e. RWA which banks
report as current
requirements)
RWA calculated using
full standardized
approach
(i.e. used in the base
of the output floor)
Output floor base
(60% of RWA
calculated using full
standardized
approach)
1
Credit risk (excluding counterparty credit risk)
182,036
57,511
239,547
365,925
219,555
2
Counterparty credit risk
24,141
5,994
30,135
138,962
83,377
3
Credit valuation adjustment (CVA)
9,322
9,322
15,012
9,007
4
Securitization exposures in banking book
3,550
3,189
6,739
15,211
9,126
5
Market risk
31,352
31,352
31,208
18,725
6
Operational risk
136,394
136,394
136,394
81,836
7
Residual RWA
1
2,213
27,573
29,787
30,307
18,184
8
Total
211,940
271,336
483,276
733,019
439,811
2
1 Includes settlement risk, equity investment in
funds and deferred tax assets recognized for
temporary differences.
2 Conceptually, the output floor
is applied at the total RWA level,
rather than at individual risk-
type levels.
RWA flow statements of credit risk exposures under
the internal ratings-based approach
The
CR8
table
below
provides
a
breakdown
of
the
credit
risk
RWA
movements
in
the
first
quarter
of
2025
across
movement categories defined by the Basel Committee on Banking
Supervision (the BCBS).
Credit risk RWA under the IRB
approach decreased by USD 2.1bn
to USD 182.0bn during the
first quarter of 2025. This
balance reflects credit risk
under the IRB approach
,
including the F-IRB approach
under the final
Basel III standards from
1 January 2025 onward, as well as credit risk under the
supervisory slotting approach.
Movements in
asset size
increased RWA
by USD 1.8bn,
mainly due
to increases
in loans
and loan
commitments in
the
Investment Bank
and Personal
& Corporate
Banking. These
increases were
partly offset
by reductions
in Non-core
and
Legacy,
driven by our actions to actively unwind the portfolio, in addition
to the natural roll-off.
Movements in asset quality, including changes
in risk density across the overall portfolio,
decreased RWA by USD 4.8bn,
mainly from improved risk density in the Investment Bank,
as well as from improvements in lending exposures related
to
risk density
in
Global Wealth
Management
and Personal
&
Corporate
Banking.
Such
reductions
were
partly
offset
by
increases in Group Items due to changes in risk density.
Model updates
decreased RWA
by USD 0.5bn,
primarily from
changes related
to the
recalibration of
certain multipliers
as a result of improvements to models.
Methodology and policy changes resulted
in an RWA decrease of USD 2.5bn, mainly
driven by a USD 4.6bn decrease as
a result
of the
implementation of
the final
Basel III standards,
primarily due
to the
removal of
a 1.06
multiplier on
risk
weights calculated using IRB models, which more than offset
other changes, including the establishing of floors and the
introduction of regulatory
-mandated loss-given-default
parameters for
financial institutions and
large corporate
clients.
These reductions were partly
offset by increases from other
methodology changes not related
to the implementation of
the final Basel III standards,
primarily related to an increase in RWA of USD 2.1bn from
private-equity subscription loans,
shifting from the
standardized approach for
credit risk
to the F-IRB
approach. This shift
in approaches reduced
the Group’s
RWA by USD 1.3bn.
The first quarter
of 2025 included
the sale of
Select Portfolio Servicing,
which resulted
in a credit
risk RWA decrease
of
USD 0.1bn. The completion of the transaction reduced the
Group’s RWA by around USD 1.3bn.
Currency effects, driven
by the weakening
of the US
dollar against other
major currencies, resulted
in an RWA
increase
of USD 3.9bn.
›
Refer to “Definitions of credit risk and counterparty credit risk
RWA movement table components for CR8 and CCR7” in the
“Credit risk” section of the 31 December 2024 Pillar
3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for
definitions of credit risk RWA movement table components
CR8: RWA flow statements of credit risk exposures under IRB
USD m
For the quarter
ended 31.3.25
1
RWA as of the beginning of the quarter
184,138
2
Asset size
1,840
3
Asset quality
(4,832)
4
Model updates
(468)
5
Methodology and policy
(2,499)
5a
of which: Impact from the implementation of final Basel III
standards
(4,599)
5b
of which: others
2,100
6
Acquisitions and disposals
(79)
7
Foreign exchange movements
3,936
8
Other
9
RWA as of the end of the quarter
182,036
31 March 2025 Pillar 3 Report |
UBS Group | Risk-weighted assets
11
RWA flow statements of counterparty credit risk exposures
under the internal model method and VaR
The CCR7 table below presents a flow statement
explaining changes in CCR RWA determined
under the internal model
method (the IMM) for derivatives and the value-at-risk (VaR
)
approach for securities financing transactions
(SFTs).
CCR RWA on derivatives under the IMM decreased
by USD 3.7bn to USD 12.7bn during the first
quarter of 2025. Asset
size movements contributed to an RWA decrease of USD 2.2bn, mainly in the Investment Bank. Methodology and policy
changes
resulted
in
a
decrease
of
USD 1.5bn,
from
the
implementation
of
the
final
Basel III
standards,
driven
by
the
removal of a 1.06 multiplier on risk weights calculated using IRB models, as well as the application of the F-IRB approach
for exposures
to financial
institutions and
large corporate
clients. Model
updates resulted
in a
decrease of
USD 0.3bn.
Foreign exchange movements resulted in an RWA increase
of USD 0.3bn.
CCR RWA on SFTs under
the VaR approach decreased by USD 1.7bn to
USD 6.4bn during the first quarter of 2025.
Asset
size
movements
contributed
to
an
RWA
decrease
of
USD 1.3bn,
mainly
in
Group
Treasury.
Methodology
and
policy
changes resulted in
a decrease of
USD 1.9bn, mainly from
the implementation of
the final Basel III
standards,
driven by
the
removal
of
a
1.06
multiplier
on
risk
weights
calculated
using
IRB
models,
as
well
as
the
application
of
the
F-IRB
approach for exposures to financial institutions and large corporate clients.
Model updates increased RWA by USD 0.9bn
as a
result of an
update to the
repo VaR model
related to the
treatment of collateral.
Asset quality movements
contributed
to a USD 0.5bn increase in RWA, primarily due to an increase
in risk density in Group Treasury.
›
Refer to “Definitions of credit risk and counterparty credit risk
RWA movement table components for CR8 and CCR7” in
the
“Credit risk” section of the 31 December 2024 Pillar
3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for
definitions of CCR RWA movement table components
CCR7: RWA flow statements of CCR exposures under the internal model method (IMM) and value-at-risk (VaR)
For the quarter ended 31.3.25
USD m
Derivatives
SFTs
Total
Subject to IMM
Subject to VaR
1
RWA as of the beginning of the quarter
16,397
8,107
24,504
2
Asset size
(2,165)
(1,346)
(3,510)
3
Credit quality of counterparties
(36)
520
484
4
Model updates
(295)
866
571
5
Methodology and policy
(1,492)
(1,897)
(3,389)
5a
of which: impact from the implementation of final Basel
III standards
(1,492)
(1,897)
(3,389)
5b
of which: others
6
Acquisitions and disposals
7
Foreign exchange movements
275
108
383
8
Other
9
RWA as of the end of the quarter
12,684
6,358
19,042
RWA flow statements of CVA risk exposures under
SA-CVA
In this 31 March 2025 Pillar 3 report, we have
introduced the ”CVA4: RWA flow statements of CVA
risk exposures under
SA-CVA” table for the first time,
as part of the final Basel III standards
.
The CVA4 table shows the variations
in RWA for
CVA
risk
determined
under
the
standardized
approach
for
calculating
CVA
capital
requirements
(SA-CVA).
The
CVA
capital charge
covers the
risk of
mark-to-market losses
associated with
the deterioration
of counterparty
credit quality.
UBS
applies
SA-CVA
on
positions
where
we
use
the
internal
model
method
to
derive
the
exposure
at
default
for
derivatives,
and the basic approach, BA-CVA, for all other positions.
›
Refer to “Overview of RWA and capital requirements” in this section for the
materiality of BA-CVA and SA-CVA RWA and capital
requirements
SA-CVA RWA was USD 4.3bn as of 31 March 2025. As UBS has introduced
the SA-CVA approach from 1 January 2025,
no comparative-period information for 31 December 2024 is
available.
CVA4: RWA
flow statements of CVA risk exposures under SA-CVA
USD m
Total RWA
1
RWA as of 31.12.24
2
RWA as of 31.3.25
4,256
31 March 2025 Pillar 3 Report |
UBS Group | Going and gone concern requirements
and eligible capital
12
Going and gone concern requirements and eligible
capital
The
table
below
provides
details
of
the
Swiss
systemically
relevant
bank
(the
SRB)
going
and
gone
concern
capital
requirements as required
by the Swiss Financial Market Supervisory Authority (FINMA
).
›
Refer to the “Capital management” section of the
UBS Group first quarter 2025 report, available under
”Quarterly reporting” at
ubs.com/investors
, for more information about capital management
Effective 1 January 2025, a
Pillar 2 capital
add-on for uncollateralized exposures
to hedge funds,
private equity and
family
offices
has
been
introduced.
This
resulted
in
an
increase
of
16 basis
points
in
the
RWA-based
going
concern
capital
requirement as of 31 March 2025.
Swiss SRB going and gone concern requirements and information
As of 31.3.25
RWA
LRD
USD m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
14.91
1
72,044
5.00
1
78,079
Common equity tier 1 capital
10.56
2
51,026
3.50
3
54,655
of which: minimum capital
4.50
21,747
1.50
23,424
of which: buffer capital
5.50
26,580
2.00
31,232
of which: countercyclical buffer
0.44
2,145
Maximum additional tier 1 capital
4.35
2
21,019
1.50
23,424
of which: additional tier 1 capital
3.50
16,915
1.50
23,424
of which: additional tier 1 buffer capital
0.80
3,866
Eligible going concern capital
Total going concern capital
18.18
87,837
5.62
87,837
Common equity tier 1 capital
14.31
69,152
4.43
69,152
Total loss-absorbing additional tier 1 capital
3.87
18,684
1.20
18,684
of which: high-trigger loss-absorbing additional tier 1 capital
3.87
18,684
1.20
18,684
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
10.73
7
51,831
3.75
7
58,559
of which: base requirement including add-ons for market share and
LRD
10.73
51,831
3.75
58,559
Eligible gone concern capital
Total gone concern loss-absorbing capacity
20.55
99,331
6.36
99,331
Total tier 2 capital
0.04
205
0.01
205
of which: non-Basel III-compliant tier 2 capital
0.04
205
0.01
205
TLAC-eligible senior unsecured debt
20.51
99,126
6.35
99,126
Total loss-absorbing capacity
Required total loss-absorbing capacity
25.63
123,876
8.75
136,639
Eligible total loss-absorbing capacity
38.73
187,168
11.99
187,168
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
483,276
Leverage ratio denominator
1,561,583
1 Includes applicable
add-ons of
1.60% for
risk-weighted assets
(RWA) and
0.50% for leverage
ratio denominator
(LRD), of
which 16
basis points
for RWA
reflect the Pillar
2 capital
add-on for
uncollateralized
exposures to hedge funds, private equity and family offices, effective 1 January 2025.
2 Includes the Pillar 2 add-on for uncollateralized exposures to hedge funds, private equity and family offices of 0.11% for CET1
capital and 0.05% for
AT1 capital, effective
1 January 2025. For
AT1 capital, under
Pillar 1 requirements,
a maximum of 4.3%
of AT1 capital
can be used to
meet going concern requirements;
4.35% includes the
aforementioned Pillar 2
capital add-on.
3 Our CET1 leverage
ratio requirement of
3.50% consists of
a 1.5% base
requirement, a 1.5%
base buffer capital
requirement, a 0.25% LRD
add-on requirement and
a
0.25% market share add-on requirement
based on our Swiss credit business.
4 A maximum of 25% of the gone
concern requirements can be met with
instruments that have a remaining maturity of
between one
and two years. Once at least
75% of the minimum gone concern requirement has been met with
instruments that have a remaining maturity of greater
than two years, all instruments that have a
remaining maturity
of between one and two years remain eligible to be included in the total gone concern capital.
5 From 1 January 2023, the resolvability discount on the
gone concern capital requirements for systemically important
banks (SIBs) has been replaced with reduced base gone concern capital requirements equivalent to 75% of the total going concern requirements (excluding countercyclical buffer requirements and the Pillar 2 add-on).
6 As of July
2024, the Swiss
Financial Market Supervisory
Authority (FINMA) has
the authority to impose
a surcharge of up
to 25% of
the total going
concern capital requirements (excluding
countercyclical buffer
requirements and the Pillar 2 add-on) should obstacles to an SIB’s resolvability be identified
in future resolvability assessments.
7 Includes applicable add-ons of 1.08% for RWA and 0.38% for LRD.
31 March 2025 Pillar 3 Report |
UBS Group | Leverage ratio
13
Leverage ratio
Basel III leverage ratio
The Basel Committee on Banking Supervision (the BCBS)
leverage ratio, as summarized in the “KM1: Key metrics“
table
in
section
2
of
this
report,
is
calculated
by
dividing
the
period-end
tier 1
capital
by
the
period-end
leverage
ratio
denominator (the LRD).
The LRD consists of on-balance sheet assets and off-balance sheet items based on IFRS Accounting Standards. Derivative
exposures are
adjusted for
a number of
items, including
replacement values
and eligible
cash variation
margin netting,
potential future
exposure and
net notional
amounts for
written credit
derivatives. The
LRD also
includes an
additional
charge for counterparty credit risk related to securities financing transactions
(SFTs).
On-balance
sheet
items
(excluding
derivatives
and
securities
financing
transactions
(SFTs),
but
including
collateral),
as
disclosed in the
LR2 table,
differ from IFRS
Accounting Standards
total assets
due to
adjustments to the
former for
the
application of the regulatory scope of consolidation and due to the carrying amounts for derivative financial instruments
and SFTs, which
are removed
and replaced
with exposures,
as per
the leverage
ratio rules, in
separate line
items in
the
LR2 table.
Difference between the Swiss systemically relevant bank
and BCBS leverage ratio
The LRD is
the same under
Swiss systemically relevant
bank (SRB) and
BCBS rules. However,
there is a
difference in
the
capital
numerator
between
the
two
frameworks.
Under
BCBS
rules
only
common
equity
tier 1
(CET1)
and
additional
tier 1
capital
are
included in
the
numerator.
Under Swiss
SRB rules
UBS
is required
to meet
going and
gone
concern
leverage ratio requirements. Therefore, depending on the
requirement, the numerator includes tier 1 capital
instruments,
tier 2 capital instruments and / or total loss-absorbing capacity
-eligible senior unsecured debt.
The
difference
between
the total
leverage
ratio
exposures
of
USD 1,561.6bn
and total
consolidated
assets
as per
the
published financial
statements of
USD 1,543.4bn was
USD 18.2bn, reflecting
the sum
of lines 2
to 12 in
the following
table.
LR1: Summary comparison of accounting assets vs leverage ratio exposure measure
1
USD m
31.3.25
31.12.24
1
Total consolidated assets as per published financial statements
1,543,363
1,565,028
2
Adjustment for investments in banking, financial, insurance or
commercial entities that are consolidated for accounting
purposes but outside the
scope of regulatory consolidation
(18,302)
(17,750)
3
Adjustment for securitized exposures that meet the operational
requirements for the recognition of risk transference
4
Adjustments for temporary exemption of central bank reserves (if applicable)
5
Adjustment for fiduciary assets recognized on the balance
sheet pursuant to the operative accounting framework but excluded
from the leverage
ratio exposure measure
6
Adjustments for regular-way purchases and sales of financial assets subject to trade date
accounting
7
Adjustments for eligible cash pooling transactions
8
Adjustments for derivative financial instruments
(27,249)
(97,478)
9
Adjustment for securities financing transactions, (i.e. repos and similar secured lending)
10,547
10,246
10
Adjustment for off-balance sheet items (i.e. conversion to credit equivalent amounts
of off-balance sheet exposures)
64,103
69,788
11
Adjustments for prudent valuation adjustments and specific and
general provisions which have reduced Tier 1 capital
2
(578)
12
Other adjustments
(10,301)
(10,356)
12a
of which: asset amounts deducted in determining Tier 1 capital
(11,336)
(11,586)
12b
of which: consolidated entities under the regulatory scope
of consolidation
1,035
1,230
13
Leverage ratio exposure
1,561,583
1,519,477
1 The comparative-period information has been amended to reflect the LR1 disclosure format effective from 1 January 2025 under the final Basel III standards. Refer to the 31 December 2024 Pillar 3 report, available
under “Pillar 3 disclosures” at ubs.com/investors, for more information about previously published LR1 disclosures.
2 Reflects the shortfall to expected losses on advanced internal ratings-based portfolio less general
provisions. Deduction items other than the IRB shortfall are disclosed in row 12a.
31 March 2025 Pillar 3 Report |
UBS Group | Leverage ratio
14
LR2: Leverage ratio common disclosure
1
USD m, except where indicated
31.3.25
31.12.24
On-balance sheet exposures
1
On-balance sheet items (excluding derivatives and securities financing
transactions (SFTs), but including collateral)
1,233,897
1,196,136
2
Gross-up for derivatives collateral provided where deducted from balance
sheet assets pursuant to the operative accounting framework
3
(Deductions of receivable assets for cash variation margin provided
in derivatives transactions)
(38,997)
(43,952)
4
(Adjustment for securities received under securities financing
transactions that are recognised as an asset)
5
(Specific and general provisions associated with on-balance sheet exposures
that are deducted from Tier 1 capital)
(630)
6
(Asset amounts deducted in determining Tier 1 capital)
(11,336)
(11,586)
7
Total on-balance sheet exposures (excluding derivatives and SFTs)
1,182,933
1,140,598
Derivative Exposures
8
Replacement cost associated with all derivatives transactions (where
applicable net of eligible cash variation margin and/or with
bilateral
netting)
55,440
48,149
9
Add-on amounts for potential future exposure associated
with all derivatives transactions
108,400
102,062
10
(Exempted qualifying central counterparty (QCCP ) leg of client-cleared
trade exposures)
(15,524)
(19,136)
11
Adjusted effective notional amount of all written credit
derivatives
2
84,284
63,230
12
(Adjusted effective notional offsets and add-on deductions for
written credit derivatives )
3
(82,835)
(62,278)
13
Total derivative exposures
149,765
132,027
Securities financing transaction exposures
14
Gross SFT assets (with no recognition of netting), after adjusting
for sale accounting transactions
260,304
267,231
15
(Netted amounts of cash payables and cash receivables of gross SFT assets)
(106,121)
(100,411)
16
Counterparty credit risk exposure for SFT assets
10,547
10,245
17
Agent transaction exposures
18
Total securities financing transaction exposures
164,730
177,065
Other off-balance sheet exposures
19
Off-balance sheet exposure at gross notional amount
278,126
276,719
20
(Adjustments for conversion to credit equivalent amounts)
(214,022)
(206,931)
21
(Specific and general provisions associated with off-balance sheet
exposures deducted in determining Tier 1 capital)
52
22
Total off-balance sheet items
64,156
69,788
Capital and total exposures (leverage ratio denominator),
phase-in
23
Tier 1 capital
87,837
87,739
24
Total exposures (leverage ratio denominator)
1,561,583
1,519,477
Leverage ratio
25
Basel III leverage ratio (including the impact of any applicable temporary
exemption of central bank reserves)
4
5.62
5.77
25a
Basel III leverage ratio (excluding the impact of any applicable temporary exemption
of central bank reserves)
4
5.62
5.77
26
Leverage ratio minimum requirement
5
3.00
3.00
27
Leverage ratio buffers
5
2.00
2.00
Disclosure of mean values
28
Mean value of gross SFT assets, after adjustment for sale accounting transactions
and netted of amounts of associated cash payables and cash
receivables
159,968
29
Quarter-end value of gross SFT assets, after adjustment for sale accounting transactions and netted
of amounts of associated cash payables and
cash receivables
154,183
30
Total exposures (including the impact of any applicable temporary exemption
of central bank reserves) incorporating mean values from row 28
of gross SFT assets (after adjustment for sale accounting
transactions and netted of amounts of associated cash payables and cash
receivables)
4
1,567,368
30a
Total exposures (excluding the impact of any applicable temporary exemption
of central bank reserves) incorporating mean values from row
28 of gross SFT assets (after adjustment for sale accounting
transactions and netted of amounts of associated cash payables and cash
receivables)
4
1,567,368
31
Basel III leverage ratio (including the impact of any applicable temporary
exemption of central bank reserves) incorporating mean values from
row 28 of gross SFT assets (after adjustment for sale accounting
transactions and netted of amounts of associated cash payables
and cash
receivables)
4
5.60
31a
Basel III leverage ratio (excluding the impact of any applicable temporary exemption
of central bank reserves) incorporating mean values
from row 28 of gross SFT assets (after adjustment for
sale accounting transactions and netted of amounts of associated
cash payables and
cash receivables)
4
5.60
1 The comparative-period information has been
amended to reflect the LR2 disclosure format effective from
1 January 2025 under the final Basel
III standards. Specifically, collateral
for derivative positions has been
included in row
1 of the
LR2 table and
has been adjusted
as applicable under
leverage ratio rules
in the subsequent
rows. Refer
to the 31
December 2024 Pillar
3 report, available
under “Pillar 3
disclosures” at
ubs.com/investors, for more information about
previously published LR2 disclosures.
2 Includes protection sold, including agency transactions.
3 Protection sold can be offset with protection bought on
the same
underlying reference entity, provided that the conditions according to the Basel III leverage ratio framework and disclosure requirements are met.
4 There is currently no temporary exemption of central bank reserves
for UBS.
5 The buffer is based on Swiss SRB requirements as per the Capital Adequacy Ordinance.
These
requirements are above BCBS requirements for G-SIBs.
During
the
first
quarter
of
2025,
the
LRD
increased
by
USD 42.1bn
to
USD 1,561.6bn,
driven
by
an
increase
of
USD 28.8bn as a result
of the implementation of
the final Basel III standards
and currency effects
of USD 26.5bn, partly
offset by asset size and other movements of USD
13.2bn.
31 March 2025 Pillar 3 Report |
UBS Group | Leverage ratio
15
The
impact
from
the
implementation
of
the
final
Basel III
standards
on
the
LRD
was
an
increase
of
USD 28.8bn.
In
Switzerland, the amendments to the Capital Adequacy Ordinance that incorporate the final Basel III standards into Swiss
law entered
into force
on 1
January
- The
increase
was mainly
in
derivatives, as
a result
of the
change from
the
current
exposure
method
to
the
standardized
approach
for
counterparty
credit
risk,
including
the
application
of
the
prescribed 1.4× multiplier to address risks, for example
wrong-way risk, that are not directly captured in the
framework.
This was partly offset by
decreases in off-balance sheet positions resulting from a
change to credit conversion factors and
on-balance sheet exposures due to an alignment of the consolidation
scope between RWA and LRD.
On-balance sheet exposures (excluding
derivatives and securities financing
transactions) increased by USD 42.3bn, mainly
due to asset size and other movements of USD 23.0bn and currency effects of
USD 21.2bn, partly offset by a USD 1.9bn
impact from the implementation of
the final Basel III standards.
The asset size movement mainly
reflected increases in the
high-quality liquid asset portfolio
and cash and balances at
central banks in Group Treasury.
In addition, there were also
increases in trading portfolio assets, reflecting an increase
in inventory held in the Investment Bank.
Derivative exposures increased by USD 17.7bn, mainly due to a USD 37.5bn impact from
the implementation of the final
Basel III standards
and currency
effects of
USD 1.5bn, partly
offset by
asset size
and other
movements of
USD 21.2bn.
The asset size movement was mainly due to mark-to-market movements in foreign currency contracts and lower trading
volumes in the Investment Bank.
Securities financing
transaction exposures
decreased by
USD 12.3bn, mainly
due to asset
size and other
movements of
USD 14.7bn and a
USD 0.2bn impact from
the implementation
of the final
Basel III standards,
partly offset by
currency
effects of USD 2.6bn. The asset size movement is mainly
due to roll-offs of cash reinvestment trades in Group Treasury
.
Off-balance sheet
items decreased
by USD 5.6bn,
mainly due
to a
USD 6.5bn impact
from the
implementation of
the
final Basel III standards and
asset size and other
movements of USD 0.2bn, partly offset
by currency effects of
USD 1.1bn.
›
Refer to “Leverage ratio denominator” in the
“Risk, capital, liquidity and funding, and balance
sheet” section of the UBS Group
first quarter 2025 report,
available under “Quarterly reporting” at
ubs.com/investors
, for more information
Liquidity and funding
Liquidity coverage ratio
We monitor the liquidity coverage
ratio (the LCR) in all significant currencies
in order to manage any currency
mismatch
between high-quality liquid assets (HQLA) and the net expected
cash outflows in times of stress.
Pillar 3 disclosure requirement
First quarter 2025 report section
Disclosure
First quarter 2025 report page number
Concentration of funding sources
Balance sheet and off-balance sheet
Liabilities, by product and currency
49
High-quality liquid assets
HQLA must be
easily and immediately convertible
into cash at little
or no loss
of value, especially during
a period of stress.
HQLA are
assets that
are
of low
risk and
are
unencumbered.
Other characteristics
of HQLA
are
ease and
certainty
of
valuation, low
correlation with
risky assets,
listing of
the assets
on a developed
and recognized
exchange, existence
of
an active and sizable
market for the
assets, and low volatility.
Our HQLA predominantly
consist of assets that
qualify as
Level 1 in the LCR framework, including cash, central bank reserves and government bonds. In the first quarter
of 2025,
our average
HQLA decreased
by USD 12.7bn to
USD 318.7bn, mainly
reflecting lower
cash available due
to a decrease
in customer deposits,
funding of additional
trading assets and
lower debt issued
measured at amortized cost,
partly offset
by higher cash available from lower lending assets
and higher proceeds from securities
financing transactions.
High-quality liquid assets (HQLA)
Average 1Q25
1
Average 4Q24
1
USD bn, except where indicated
Level 1
weighted
liquidity
value
2
Level 2
weighted
liquidity
value
2
Total
weighted
liquidity
value
2
Level 1
weighted
liquidity
value
2
Level 2
weighted
liquidity
value
2
Total
weighted
liquidity
value
2
Cash balances
3
225.4
225.4
231.5
231.5
Securities (on- and off-balance sheet)
69.4
23.9
93.3
75.8
24.2
100.0
Total HQLA
4
294.8
23.9
318.7
307.3
24.2
331.5
1 Calculated based on an average of 62 data points in the first quarter of 2025 and 64 data points
in the fourth quarter of 2024.
2 Calculated after the application of haircuts and, where applicable, caps on Level 2
assets.
3 Includes cash and balances with central banks and other eligible balances as prescribed by FINMA.
4 Calculated in accordance with FINMA requirements.
31 March 2025 Pillar 3 Report |
UBS Group | Liquidity and funding
16
Liquidity coverage ratio development during the first quarter
of 2025
The quarterly average
LCR of
the UBS
Group decreased 7.4 percentage points
to 181.0%,
remaining above the
prudential
requirement communicated by the Swiss Financial Market Supervisory Authority
(FINMA). The movement in the
quarterly
average LCR
was primarily
driven by
a decrease
in HQLA
of USD 12.7bn
to USD 318.7bn,
mainly reflecting
lower cash
available due to
a decrease
in customer deposits,
funding of additional
trading assets
and lower
debt issued measured
at amortized
cost, partly
offset by
higher cash
available from
lower lending
assets and
higher proceeds
from securities
financing transactions. The average
net cash outflows remained
largely unchanged at USD 176.2bn,
as higher outflows
from debt issued at amortized cost and customer deposits were
substantially offset by higher net inflows from securities
financing transactions.
LIQ1: Liquidity coverage ratio (LCR)
Average 1Q25
1
Average 4Q24
1
USD bn, except where indicated
Unweighted
value
Weighted
value
2
Unweighted
value
Weighted
value
2
High-quality liquid assets (HQLA)
1
Total HQLA
323.3
318.7
336.0
331.5
Cash outflows
2
Retail deposits and deposits from small business customers
350.5
40.4
350.0
40.2
3
of which: stable deposits
30.9
1.1
31.2
1.1
4
of which: less stable deposits
319.5
39.3
318.9
39.1
5
Unsecured wholesale funding
283.7
145.1
279.9
139.4
6
of which: operational deposits (all counterparties)
61.9
15.4
66.5
16.5
7
of which: non-operational deposits (all counterparties)
205.9
113.7
200.6
110.1
8
of which: unsecured debt
15.9
15.9
12.8
12.8
9
Secured wholesale funding
88.5
86.2
10
Additional requirements:
166.3
46.7
172.9
45.6
11
of which: outflows related to derivatives and other transactions
81.7
26.6
85.1
25.5
12
of which: outflows related to loss of funding on debt products
3
0.2
0.2
0.4
0.4
13
of which: committed credit and liquidity facilities
84.4
19.9
87.4
19.7
14
Other contractual funding obligations
29.4
27.5
25.6
23.7
15
Other contingent funding obligations
336.2
13.8
361.4
12.7
16
Total cash outflows
362.0
347.8
Cash inflows
17
Secured lending
294.1
114.9
276.1
105.4
18
Inflows from fully performing exposures
78.1
35.8
80.2
36.6
19
Other cash inflows
35.2
35.2
29.7
29.7
20
Total cash inflows
407.3
185.8
386.1
171.8
Average 1Q25
1
Average 4Q24
1
USD bn, except where indicated
Total adjusted
value
4
Total adjusted
value
4
Liquidity coverage ratio (LCR)
21
Total HQLA
318.7
331.5
22
Net cash outflows
176.2
176.0
23
LCR (%)
181.0
188.4
1 Calculated based
on an average
of 62 data
points in
the first quarter
of 2025
and 64 data
points in the
fourth quarter of
2024.
2 Calculated after
the application of
haircuts and inflow
and outflow
rates.
3 Includes outflows related to loss of
funding on asset-backed securities,
covered bonds, other structured
financing instruments, asset-backed
commercial papers, structured entities
(conduits), securities investment
vehicles and other such financing facilities.
4 Calculated after the application of haircuts and inflow and outflow rates, as well
as, where applicable, caps on Level 2 assets and cash inflows.
31 March 2025 Pillar 3 Report |
Significant regulated subsidiaries and
sub-groups | Introduction
17
Significant regulated subsidiaries
and sub-groups
Introduction
Scope of disclosures in these sections
The
sections
below
include
capital
and
other
regulatory
information
as
of
31 March
2025
for
UBS AG
consolidated,
UBS AG
standalone,
UBS Switzerland AG
standalone,
UBS Europe SE
consolidated,
UBS Americas Holding LLC
consolidated and Credit Suisse International standalone. Capital information in the following sections is based on Pillar 1
capital requirements.
Entities may
be subject
to significant
additional Pillar
2 requirements,
which represent
additional
amounts of capital considered necessary and are agreed with regulators based on the risk profile of the respective entity.
UBS AG consolidated, UBS AG standalone, UBS Switzerland
AG standalone and UBS Europe SE consolidated
Implementation of the final Basel III standards
In
Switzerland,
the
amendments
to
the
Capital
Adequacy
Ordinance
(the
CAO)
that
incorporate
the
final
Basel III
standards
into Swiss
law,
including
the
five
new
ordinances
that
contain
the
implementing
provisions
for
the
revised
CAO, entered into force on 1 January
2025.
In the EU, the final Basel III requirements became applicable as of 1 January 2025, except for the Fundamental Review of
the Trading Book requirements, the implementation of which
has been delayed until at least 1 January 2026.
›
Refer to the “UBS AG consolidated”, “UBS
AG standalone”, “UBS Switzerland AG standalone”
and “UBS Europe SE consolidated”
sections of this report for more information about the impacts
resulting from the adoption of the final Basel III standards
UBS AG consolidated
Key metrics for the first quarter of 2025
The
table
below
is
based
on
the
Swiss
Financial
Market
Supervisory
Authority
(FINMA)
Ordinance
on
the
Disclosure
Obligations of Banks and Securities Firms (DisO-FINMA) rules
and IFRS Accounting Standards.
During the
first quarter
of 2025,
tier 1
capital
decreased
by USD 0.5bn
to USD
89.1bn. Common
equity tier
1 (CET1)
capital decreased by USD 3.0bn to USD 70.8bn, mainly as operating profit before tax of USD 1.3bn and foreign currency
translation gains
of USD 0.8bn
were more
than offset
by dividend
accruals
of USD 4.5bn
and current
tax expenses
of
USD 0.4bn.
Additional
tier 1
(AT1)
capital
issued
by
the
Group
and
on
lent
to
UBS AG
increased
by
USD 2.5bn
to
USD 18.3bn, reflecting the
issuance of new AT1
capital instruments equivalent to
USD 3.0bn and positive
impacts from
interest rate risk hedge, foreign currency translation and other effects, partly offset by the call of AT1 capital instruments
equivalent to USD 1.3bn.
During
the
first
quarter
of
2025,
risk-weighted
assets
(RWA)
decreased
by
USD 13.6bn
to
USD 481.5bn,
driven
by
a
USD 9.5bn
decrease
resulting
from
asset
size
and
other
movements,
an
USD 8.6bn
reduction
as
a
result
of
the
implementation
of
the
final
Basel III
standards,
and
a
USD 1.1bn
reduction
resulting
from
model
updates
and
other
methodology changes. These decreases were partly offset
by a USD 5.7bn increase in currency effects.
During the first quarter
of 2025, the leverage
ratio denominator (the LRD)
increased by USD 42.6bn
to USD 1,565.8bn,
driven by an increase of USD 28.8bn as
a result of the implementation of the final
Basel III standards and currency effects
of USD 26.6bn,
partly offset
by asset
size and
other movements
of USD 12.8bn.
The
asset size
and other
movements
mainly reflected decreases
in derivative exposures
and securities financing
transaction exposures, partly
offset by increases
in the
high-quality liquid
asset (HQLA)
portfolio and
cash and
balances at
central banks
in Group
Treasury and
trading
portfolio assets in the Investment Bank.
Correspondingly, the CET1
capital ratio of
UBS AG consolidated decreased to
14.7% from 14.9%,
reflecting the decrease
in CET1 capital,
partly offset by
the decrease in
RWA. The Basel III leverage
ratio decreased to 5.7%
from 5.9%, reflecting
the increase in the LRD and the aforementioned decrease
in tier 1 capital.
31 March 2025 Pillar 3 Report |
Significant regulated subsidiaries and
sub-groups | UBS AG consolidated
18
The
quarterly
average
liquidity
coverage
ratio
(the
LCR)
of
UBS AG
consolidated
decreased
5.8 percentage
points
to
180.3%.
The
movement
in
the
quarterly
average
LCR
was
primarily
driven
by a
decrease
in
HQLA
of
USD 12.7bn
to
USD 318.9bn, mainly reflecting
lower cash available
due to a
decrease in customer
deposits, funding of
additional trading
assets and lower debt issued measured
at amortized cost, partly offset by higher
cash available from lower lending assets
and higher
proceeds from
securities financing
transactions. The
average net
cash outflows
decreased by
USD 1.3bn to
USD 176.9bn, reflecting higher
net inflows from
securities financing transactions,
partly offset by
higher outflows from
capital instruments on lent from UBS Group AG and customer
deposits.
As of 31 March 2025, the net stable funding ratio of UBS AG consolidated decreased 1.3 percentage points to 122.8%.
Available
stable
funding
(ASF)
increased
by
USD 6.7bn
to
USD 853.7bn,
mainly
driven
by a
shift
in
the
client
deposit
composition resulting in a
more beneficial ASF
treatment and higher regulatory
capital. Required stable funding increased
by USD 12.7bn to USD
695.2bn, mainly driven
by higher lending assets,
largely due to
currency effects, partly
offset by
lower derivative balances.
KM1: Key metrics
USD m, except where indicated
31.3.25
31.12.24
30.9.24
30.6.24
31.3.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
70,756
73,792
84,423
83,001
43,863
2
Tier 1
89,081
89,623
100,673
98,133
58,067
3
Total capital
89,081
89,623
100,675
98,133
58,067
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
481,539
495,110
515,520
509,953
328,732
4a
Total risk-weighted assets (pre-floor)
1
481,539
4b
Minimum capital requirement
2
38,523
39,609
41,242
40,796
26,299
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
14.69
14.90
16.38
16.28
13.34
5b
Common equity tier 1 ratio (%) (pre-floor)
1
14.69
6
Tier 1 ratio (%)
18.50
18.10
19.53
19.24
17.66
6b
Tier 1 ratio (%) (pre-floor)
1
18.50
7
Total capital ratio (%)
18.50
18.10
19.53
19.24
17.66
7b
Total capital ratio (%) (pre-floor)
1
18.50
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
2.50
2.50
2.50
2.50
2.50
9
Countercyclical buffer requirement (%)
0.13
0.15
0.17
0.16
0.14
9a
Additional countercyclical buffer for Swiss mortgage loans
(%)
0.31
0.37
0.39
0.33
0.30
10
Bank G-SIB and / or D-SIB additional requirements (%)
3
11
Total of bank CET1 specific buffer requirements (%)
4
2.63
2.65
2.67
2.66
2.64
12
CET1 available after meeting the bank’s minimum capital requirements (%)
5
10.19
10.10
11.53
11.24
8.84
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
1,565,845
1,523,277
1,611,151
1,564,001
1,078,591
14
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves)
6
5.69
5.88
6.25
6.27
5.38
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
1
5.69
14c
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
1, 6
5.67
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
1
5.67
14e
Minimum capital requirements
1, 7
46,975
Liquidity coverage ratio (LCR)
8
15
Total high-quality liquid assets (HQLA)
318,893
331,627
360,628
280,303
251,041
16
Total net cash outflow
176,928
178,228
183,725
143,576
131,296
16a
of which: cash outflows
366,165
352,482
347,583
298,083
268,701
16b
of which: cash inflows
189,237
174,254
163,858
154,507
137,405
17
LCR (%)
180.28
186.08
196.34
194.12
191.38
Net stable funding ratio (NSFR)
18
Total available stable funding
853,742
847,008
903,402
882,760
589,263
19
Total required stable funding
695,201
682,504
712,729
691,477
484,727
20
NSFR (%)
122.81
124.10
126.75
127.66
121.57
1 First-time disclosure, based on the final Basel III standards implemented on 1
January 2025.
2 Calculated as 8% of total RWA, based on total capital minimum requirements,
excluding CET1 buffer requirements.
3 Swiss SRB going and gone concern requirements and information for UBS AG consolidated are provided below in this section.
4 Excludes non-BCBS capital buffer requirements for risk-weighted positions that are
directly or indirectly backed by residential properties in Switzerland.
5 Represents the CET1 ratio that is available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement
and, where applicable, minus the BCBS tier 2 capital requirement met with CET1 capital.
6 There is currently no temporary exemption of central bank
reserves for UBS.
7 The higher of capital requirements based
on 8% RWA or
3% LRD.
8 Calculated after the application of
haircuts and inflow and outflow
rates, as well
as, where applicable,
caps on Level 2 assets
and cash inflows. Calculated
based on an average
of 62
data points in
the first quarter of
2025 and 64 data
points in the fourth
quarter of 2024.
For the prior-quarter data points, refer to
the respective Pillar 3
Report, available under “Pillar
3 disclosures” at ubs.com/investors,
for more information.
31 March 2025 Pillar 3 Report |
Significant regulated subsidiaries and
sub-groups | UBS AG consolidated
19
Swiss systemically relevant bank going and gone concern
requirements and information
The tables below
provide details of
the Swiss systemically
relevant bank RWA-
and LRD-based going
and gone concern
requirements and
information as required
by FINMA;
details regarding
eligible gone concern
instruments are also
provided
below.
Effective 1 January 2025, a
Pillar 2 capital add-on for
uncollateralized exposures to hedge
funds, private equity
and family
offices
has
been
introduced.
This
resulted
in
an
increase
of
16 basis
points
in
the
RWA-based
going
concern
capital
requirement as of 31 March 2025.
UBS
AG’s
outstanding
non-Basel III-compliant
tier 2
capital
instruments
and
total
loss-absorbing
capacity-eligible
unsecured debt instruments are eligible to meet gone concern
requirements until one year before maturity.
More information
about the
going and
gone concern
requirements
is provided
in the
“Total
loss-absorbing
capacity”
section of the UBS AG Annual Report 2024, available under
“Annual reporting” at
ubs.com/investors.
Swiss SRB going and gone concern requirements and information
As of 31.3.25
RWA
LRD
USD m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
14.96
1
72,036
5.02
1
78,554
Common equity tier 1 capital
10.61
2
51,092
3.52
3
55,067
of which: minimum capital
4.50
21,669
1.50
23,488
of which: buffer capital
5.50
26,485
2.00
31,317
of which: countercyclical buffer
0.44
2,123
Maximum additional tier 1 capital
4.35
2
20,944
1.50
23,488
of which: additional tier 1 capital
3.50
16,854
1.50
23,488
of which: additional tier 1 buffer capital
0.80
3,852
Eligible going concern capital
Total going concern capital
18.50
89,081
5.69
89,081
Common equity tier 1 capital
14.69
70,756
4.52
70,756
Total loss-absorbing additional tier 1 capital
3.81
18,325
1.17
18,325
of which: high-trigger loss-absorbing additional tier 1 capital
3.81
18,325
1.17
18,325
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
10.73
51,645
3.75
58,719
of which: base requirement including add-ons for market share and LRD
10.73
7
51,645
3.75
7
58,719
Eligible gone concern capital
Total gone concern loss-absorbing capacity
19.46
93,705
5.98
93,705
Total tier 2 capital
0.04
205
0.01
205
of which: non-Basel III-compliant tier 2 capital
0.04
205
0.01
205
TLAC-eligible unsecured debt
19.42
93,499
5.97
93,499
Total loss-absorbing capacity
Required total loss-absorbing capacity
25.68
123,681
8.77
137,273
Eligible total loss-absorbing capacity
37.96
182,786
11.67
182,786
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
481,539
Leverage ratio denominator
1,565,845
1 Includes applicable add-ons of 1.66% for risk-weighted assets (RWA) and 0.52% for leverage ratio denominator (LRD), of which 5 basis points for RWA and 2 basis points for LRD reflect a Pillar 2 capital add-on of
USD 262m related to the supply chain
finance funds matter at Credit
Suisse. An additional 16
basis points for RWA reflect
a Pillar 2 capital add-on
for uncollateralized exposures to hedge
funds, private equity
and
family offices, effective 1 January 2025.
2 Includes the Pillar 2 add-on for uncollateralized exposures to hedge funds, private equity and family
offices of 0.11% for CET1 capital and 0.05% for AT1 capital, effective
1 January 2025. For AT1 capital, under Pillar 1 requirements, a maximum of 4.3% of AT1 capital can be used to meet going concern requirements; 4.35% includes the aforementioned Pillar 2 capital add-on.
3 The
CET1 leverage ratio requirement of 3.52% consists of a 1.5%
base requirement, a 1.5% base buffer capital requirement, a 0.25% LRD add-on
requirement, a 0.25% market share add-on requirement
based on our
Swiss credit business and a 0.02% Pillar 2 capital add-on related to the supply chain finance funds matter at Credit Suisse.
4 A maximum of 25% of the gone concern requirements can be met with instruments that
have a remaining maturity of between one and two
years. Once at least 75% of the
minimum gone concern requirement has been met with
instruments that have a remaining maturity of greater
than two years, all
instruments that have a remaining
maturity of between one and
two years remain eligible to
be included in the total
gone concern capital.
5 From 1 January
2023, the resolvability discount
on the gone concern
capital requirements for systemically
important banks (SIBs) has
been replaced with reduced
base gone concern capital requirements
equivalent to 75% of the
total going concern requirements
(excluding countercyclical
buffer requirements and
the Pillar 2
add-ons).
6 As of
July 2024, FINMA
has the authority
to impose a
surcharge of up
to 25% of
the total going
concern capital requirements
(excluding countercyclical
buffer
requirements and the Pillar 2 add-ons) should obstacles to an SIB’s resolvability be identified
in future resolvability assessments.
7 Includes applicable add-ons of 1.08% for RWA and 0.38% for LRD.
31 March 2025 Pillar 3 Report |
Significant regulated subsidiaries and
sub-groups | UBS AG consolidated
20
Swiss SRB going and gone concern information
USD m, except where indicated
31.3.25
31.12.24
Eligible going concern capital
Total going concern capital
89,081
89,623
Total tier 1 capital
89,081
89,623
Common equity tier 1 capital
70,756
73,792
Total loss-absorbing additional tier 1 capital
18,325
15,830
of which: high-trigger loss-absorbing additional tier 1 capital
18,325
14,585
of which: low-trigger loss-absorbing additional tier 1 capital
1,245
Eligible gone concern capital
Total gone concern loss-absorbing capacity
93,705
92,177
Total tier 2 capital
205
207
of which: non-Basel III-compliant tier 2 capital
205
207
TLAC-eligible unsecured debt
93,499
91,970
Total loss-absorbing capacity
Total loss-absorbing capacity
182,786
181,800
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
481,539
495,110
Leverage ratio denominator
1,565,845
1,523,277
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
18.5
18.1
of which: common equity tier 1 capital ratio
14.7
14.9
Gone concern loss-absorbing capacity ratio
19.5
18.6
Total loss-absorbing capacity ratio
38.0
36.7
Leverage ratios (%)
Going concern leverage ratio
5.7
5.9
of which: common equity tier 1 leverage ratio
4.5
4.8
Gone concern leverage ratio
6.0
6.1
Total loss-absorbing capacity leverage ratio
11.7
11.9
UBS AG standalone
Key metrics for the first quarter of 2025
The
table
below
is
based
on
the
Swiss
Financial
Market
Supervisory
Authority
(FINMA)
Ordinance
on
the
Disclosure
Obligations of Banks and Securities Firms (DisO-FINMA) rules
and IFRS Accounting Standards.
During the
first quarter
of 2025,
tier 1
capital
decreased
by USD 1.6bn
to USD
89.3bn. Common
equity tier
1 (CET1)
capital decreased by USD 4.1bn to
USD 71.0bn, mainly as operating profit before
tax of USD 0.4bn was more
than offset
by USD 4.5bn
of additional
accruals for
capital returns
to UBS
Group AG.
Additional
tier 1 (AT1)
capital
issued by
the
Group
and
on
lent
to
UBS AG
increased
by
USD 2.5bn
to
USD 18.3bn,
reflecting
the
issuance
of
new
AT1
capital
instruments
equivalent to USD 3.0bn and positive impacts from interest rate risk hedge, foreign currency translation and
other effects, partly offset by the call of AT1 capital instruments
equivalent to USD 1.3bn.
Phase-in
risk-weighted
assets
(RWA)
increased
by
USD 6.9bn
to
USD 514.9bn
during
the
first
quarter
of
2025.
This
included a USD 16.1bn
increase in RWA
on investments in Swiss
and foreign-domiciled subsidiaries,
predominantly due
to the phased increase of risk weights in accordance with the relevant FINMA decree. This increase was partly offset by a
USD 3.1bn decrease
in RWA
from the
implementation
of the
final
Basel III standards
and a
USD 6.1bn
decrease
from
asset size and other movements.
During the
first quarter
of 2025,
the leverage
ratio denominator
(the LRD)
increased by
USD 36.1bn to
USD 935.5bn,
driven by an increase of USD 31.3bn as
a result of the implementation of the final
Basel III standards and currency effects
of USD 13.2bn, partly offset by an
USD 8.4bn decrease due to asset
size and other movements. The
asset size movement
was mainly driven by decrease
s
in derivative exposures, securities
financing transaction exposures and
off-balance sheet
items, partly
offset by
increases in
cash and
balances at
central banks,
trading assets
and the
high-quality liquid
asset
(HQLA)
portfolio.
Correspondingly, the phase-in CET1 capital ratio of
UBS AG standalone decreased to 13.8% from 14.8%,
reflecting the
decrease in
CET1 capital
and the
increase in
phase-in RWA.
The firm’s
Basel III leverage
ratio decreased
to 9.5%
from
10.1%, reflecting the increase in the LRD and the aforementioned
decrease in tier 1 capital.
31 March 2025 Pillar 3 Report |
Significant regulated subsidiaries and
sub-groups | UBS AG standalone
21
The
quarterly
average
liquidity
coverage
ratio
(the
LCR)
of
UBS AG
standalone
decreased
14.8 percentage
points
to
229.2%, remaining above the prudential requirement communicated by FINMA. The movement in the quarterly average
LCR was
primarily driven
by an
increase in
net cash
outflows by
USD 7.3bn to
USD 66.0bn, reflecting
higher outflows
from
capital
instruments
on
lent
from
UBS
Group
AG
and
customer
deposits,
and
lower
inflows
from
intercompany
funding to
subsidiaries, partly offset
by higher net
inflows from securities
financing transactions. The
effect of the
increase
in average net cash outflows was partly
offset by an increase in the
average HQLA of USD 7.9bn to USD 150.5bn, mainly
reflecting
higher
cash
available
from
an
average
lower
funding
provided
to
subsidiaries,
partly
offset
by
lower
cash
available from debt issued measured at amortized cost.
As
of
31 March
2025,
the
net
stable
funding
ratio
increased
0.8 percentage
points
to
98.1%,
remaining
above
the
prudential
requirement
communicated
by
FINMA.
Available
stable
funding
remained
largely
stable
at
USD 410.5bn.
Required
stable
funding
decreased
by
USD 3.1bn
to
USD 418.7bn,
mainly
driven
by
lower
derivative
balances,
partly
offset by higher intercompany funding.
KM1: Key metrics
USD m, except where indicated
31.3.25
31.12.24
30.9.24
30.6.24
31.3.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
70,980
75,051
83,113
82,329
51,971
2
Tier 1
89,305
90,881
99,363
97,461
66,175
3
Total capital
89,305
90,882
99,365
97,461
66,175
Risk-weighted assets (amounts)
1
4
Total risk-weighted assets (RWA)
514,897
507,964
565,180
554,478
356,821
4a
Total risk-weighted assets (pre-floor)
2
514,897
4b
Minimum capital requirement
3
41,192
40,637
45,214
44,358
28,546
Risk-based capital ratios as a percentage of RWA
1
5
Common equity tier 1 ratio (%)
13.79
14.77
14.71
14.85
14.56
5b
Common equity tier 1 ratio (%) (pre-floor)
2
13.79
6
Tier 1 ratio (%)
17.34
17.89
17.58
17.58
18.55
6b
Tier 1 ratio (%) (pre-floor)
2
17.34
7
Total capital ratio (%)
17.34
17.89
17.58
17.58
18.55
7b
Total capital ratio (%) (pre-floor)
2
17.34
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
2.50
2.50
2.50
2.50
2.50
9
Countercyclical buffer requirement (%)
0.15
0.19
0.19
0.18
0.12
9a
Additional countercyclical buffer for Swiss mortgage loans
(%)
0.00
0.00
0.00
0.00
0.00
10
Bank G-SIB and / or D-SIB additional requirements (%)
4
11
Total of bank CET1 specific buffer requirements (%)
5
2.65
2.69
2.69
2.68
2.62
12
CET1 available after meeting the bank’s minimum capital requirements (%)
6
9.29
9.89
9.58
9.58
10.06
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
935,496
899,348
944,404
921,796
641,315
14
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves)
7
9.55
10.11
10.52
10.57
10.32
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
2
9.55
14c
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
2, 7
9.52
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
2
9.52
14e
Minimum capital requirements
2, 8
41,192
Liquidity coverage ratio (LCR)
9
15
Total high-quality liquid assets (HQLA)
150,544
142,661
170,179
137,003
123,742
16
Total net cash outflow
65,962
58,620
60,445
50,458
46,115
16a
of which: cash outflows
238,931
231,213
228,228
197,846
174,814
16b
of which: cash inflows
172,969
172,593
167,783
147,387
128,700
17
LCR (%)
229.18
243.95
282.26
269.55
268.69
Net stable funding ratio (NSFR)
10
18
Total available stable funding
410,507
410,197
446,435
448,005
274,568
19
Total required stable funding
418,661
421,792
444,875
437,275
288,322
20
NSFR (%)
98.05
97.25
100.35
102.45
95.23
1 Based on phase-in rules for RWA. Refer to “Swiss systemically relevant bank going and gone concern
requirements and information” below for more information.
2 First-time disclosure, based on the final Basel III
standards implemented on 1 January 2025.
3 Calculated as 8% of total RWA, based on
total capital minimum requirements, excluding CET1 buffer requirements.
4 Swiss SRB going and gone concern requirements
and information for UBS AG standalone are provided below in this section.
5 Excludes non-BCBS capital buffer requirements for risk-weighted positions that are directly or indirectly backed
by residential properties
in Switzerland.
6 Represents the CET1 ratio that is available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and, where applicable, minus the BCBS tier 2 capital
requirement met with CET1 capital.
7 There is currently
no temporary exemption of
central bank reserves
for UBS.
8 The higher of
capital requirements based on
8% RWA or 3%
LRD.
9 Calculated after the
application of haircuts and inflow and outflow rates,
as well as, where applicable, caps on
Level 2 assets and cash inflows. Calculated based
on an average of 62 data points in the first quarter
of 2025 and 64 data
points in the fourth quarter of 2024. For the prior-quarter data points,
refer to the respective Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors,
for more information.
10 In accordance with
Art. 17h para. 3
and 4 of the Liquidity
Ordinance, UBS AG
standalone is required to maintain
a minimum NSFR of
at least 80% without
taking into account excess
funding of UBS Switzerland
AG and 100% after
taking into account such excess funding.
31 March 2025 Pillar 3 Report |
Significant regulated subsidiaries and
sub-groups | UBS AG standalone
22
Swiss systemically relevant bank going and gone concern
requirements and information
The
tables
below
provide
details
of
the
Swiss
systemically
relevant
bank
(SRB)
RWA-
and
LRD-based
going
and
gone
concern requirements
and
information
as required
by FINMA;
details
regarding
eligible
gone
concern instruments
are
also provided below.
UBS AG standalone
is subject
to a
gone concern capital
requirement based
on the sum
of: (i) the
nominal value
of the
gone concern
instruments issued
by UBS
entities and
held by
the parent
firm; (ii) 75%
of the
capital requirements
resulting
from third-party exposure
on a standalone
basis; and (iii) a
buffer requirement equal
to 30% of
the Group’s gone
concern
capital requirement
on UBS
AG’s consolidated
exposure.
As of
1 January
2024, the
buffer requirement
has been
fully
phased
in.
The
gone
concern
capital
requirement
is the
higher
of
the
RWA-
and
LRD-based
requirements,
calculated
separately. The gone concern
capital coverage ratio reflects how
much gone concern capital
is available to meet
the gone
concern requirement.
UBS AG’s
outstanding
non-Basel III-compliant
tier 2 capital
instruments and
total loss-absorbing
capacity-eligible
unsecured
debt
instruments
are
eligible
to
meet
gone
concern
requirements
until
one
year
before
maturity.
Effective 1 January 2025, a
Pillar 2 capital add-on for
uncollateralized exposures to hedge
funds, private equity
and family
offices has
been introduced.
This resulted
in an
increase as
of 31 March
2025 of
14 basis points
in the
RWA phase-in-
based
going
concern
capital
requirement
and
13 basis
points
in
the
RWA
fully
applied-based
going
concern
capital
requirement.
More information about
the going and
gone concern requirements
is provided
in the “UBS
AG standalone”
section of
the 31 December 2024 Pillar 3 Report, available under “Pillar
3 disclosures” at
ubs.com/investors.
Swiss SRB going and gone concern requirements and information
As of 31.3.25
RWA, phase-in
RWA, fully applied as of 1.1.28
1
LRD
USD m, except where indicated
in %
in %
in %
Required going concern capital
Total going concern capital
14.64
2
75,393
14.63
2
80,651
5.03
2
47,037
Common equity tier 1 capital
10.30
3
53,036
10.29
3
56,729
3.53
33,004
of which: minimum capital
4.50
23,170
4.50
24,807
1.50
14,032
of which: buffer capital
5.50
28,319
5.50
30,320
2.00
18,710
of which: countercyclical buffer
0.15
780
0.15
835
Maximum additional tier 1 capital
4.34
3
22,357
4.34
3
23,922
1.50
14,032
of which: additional tier 1 capital
3.50
18,021
3.50
19,295
1.50
14,032
of which: additional tier 1 buffer capital
0.80
4,119
0.80
4,410
Eligible going concern capital
Total going concern capital
17.34
89,305
16.20
89,305
9.55
89,305
Common equity tier 1 capital
13.79
70,980
12.88
70,980
7.59
70,980
Total loss-absorbing additional tier 1 capital
3.56
18,325
3.32
18,325
1.96
18,325
of which: high-trigger loss-absorbing additional tier 1 capital
3.56
18,325
3.32
18,325
1.96
18,325
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
514,897
551,278
Leverage ratio denominator
935,496
Required gone concern capital
4
Higher of RWA-
or LRD-based
Total gone concern loss-absorbing capacity
74,884
Eligible gone concern capital
Total gone concern loss-absorbing capacity
93,703
Gone concern capital coverage ratio
125.13
1 Fully applied
relates to participation
RWA. Direct
and indirect investments
including holding
of regulatory
capital instruments
in Switzerland-domiciled
subsidiaries and direct
and indirect
investments including
holding of regulatory capital instruments in foreign-domiciled subsidiaries are risk weighted at 235% and 340%, respectively,
for the current year. Risk weights will gradually
increase by 5 percentage points per year
for Switzerland-domiciled investments and
20 percentage points per year
for foreign-domiciled investments until
the fully applied risk weights
of 250% and 400%,
respectively, are applied.
2 Includes applicable
add-ons of 1.63% for risk-weighted assets (RWA,
phase-in), 1.62% for risk-weighted assets (RWA,
fully applied) and 0.53% for leverage
ratio denominator (LRD), of which 5
basis points for RWA phase-in, 5
basis
points for RWA fully applied and 3 basis points for LRD reflect a Pillar 2 capital add-on
of USD 262m related to the supply chain finance funds matter at Credit Suisse.
An additional 14 basis points for RWA phase-in
and 13 basis points for RWA fully applied
reflect a Pillar 2 capital add-on for uncollateralized
exposures to hedge fund, private equity and
family offices, effective 1 January
2025.
3 Includes the Pillar 2 add-on for
uncollateralized exposures to hedge funds,
private equity and family offices of
0.10% for CET1 capital and 0.04%
for AT1 capital for RWA
phase-in and 0.09% for CET1 capital
and 0.04% for AT1 capital
for RWA
fully applied, effective 1 January 2025. For AT1
capital, under Pillar 1 requirements, a maximum of 4.3%
of AT1 capital can be used to meet going concern
requirements; 4.34% includes the aforementioned Pillar 2
capital add-on.
4 A maximum of 25% of the gone concern requirements
can be met with instruments that have a remaining maturity of
between one and two years. Once at least 75% of the minimum
gone concern
requirement has been met with instruments that
have a remaining maturity of greater
than two years, all instruments
that have a remaining maturity of
between one and two years remain eligible
to be included in
the total gone concern capital.
31 March 2025 Pillar 3 Report |
Significant regulated subsidiaries and
sub-groups | UBS AG standalone
23
Swiss SRB going and gone concern information
USD m, except where indicated
31.3.25
31.12.24
Eligible going concern capital
Total going concern capital
89,305
90,881
Total tier 1 capital
89,305
90,881
Common equity tier 1 capital
70,980
75,051
Total loss-absorbing additional tier 1 capital
18,325
15,830
of which: high-trigger loss-absorbing additional tier 1 capital
18,325
14,585
of which: low-trigger loss-absorbing additional tier 1 capital
1,245
Eligible gone concern capital
Total gone concern loss-absorbing capacity
93,703
92,174
Total tier 2 capital
204
204
of which: non-Basel III-compliant tier 2 capital
204
204
TLAC-eligible unsecured debt
93,499
91,970
Total loss-absorbing capacity
Total loss-absorbing capacity
183,009
183,055
Denominators for going and gone concern ratios
Risk-weighted assets, phase-in
514,897
507,964
of which: investments in Switzerland-domiciled subsidiaries
1
86,606
83,221
of which: investments in foreign-domiciled subsidiaries
1
174,830
162,098
Risk-weighted assets, fully applied as of 1.1.28
551,278
555,726
of which: investments in Switzerland-domiciled subsidiaries
1
92,134
90,458
of which: investments in foreign-domiciled subsidiaries
1
205,683
202,623
Leverage ratio denominator
935,496
899,348
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio, phase-in
17.3
17.9
of which: common equity tier 1 capital ratio, phase-in
13.8
14.8
Going concern capital ratio, fully applied as of 1.1.28
16.2
16.4
of which: common equity tier 1 capital ratio, fully applied as of 1.1.28
12.9
13.5
Leverage ratios (%)
Going concern leverage ratio
9.5
10.1
of which: common equity tier 1 leverage ratio
7.6
8.3
Capital coverage ratio (%)
Gone concern capital coverage ratio
125.1
122.3
1 Fully applied relates to participation RWA.
Direct and indirect investments including
holding of regulatory capital instruments in
Switzerland-domiciled subsidiaries and for direct and
indirect investments including
holding of regulatory capital instruments in foreign-domiciled subsidiaries are risk-weighted at 235% and 340%, respectively, for the current
year. Risk weights will gradually increase by 5
percentage points per year
for Switzerland-domiciled investments and 20 percentage points per year for foreign-domiciled investments until the fully applied risk weights of 250% and
400%, respectively, are applied.
UBS Switzerland AG standalone
Key metrics for the first quarter of 2025
The
table
below
is
based
on
the
Swiss
Financial
Market
Supervisory
Authority
(FINMA)
Ordinance
on
the
Disclosure
Obligations of Banks and Securities Firms (DisO-FINMA) rules
and IFRS Accounting Standards.
During
the
first
quarter
of
2025,
common
equity
tier 1
capital
decreased
by
CHF 0.1bn
to
CHF 21.6bn,
mainly
as
operating profit of CHF 0.8bn was more than offset by
additional dividend accruals and other items.
Total risk-weighted assets (RWA)
decreased by CHF 11.7bn to CHF 174.6bn, including a decrease of CHF 8.2bn from the
implementation of final Basel III standards. The
output floor, which is now fully phased
in at 72.5% for UBS Switzerland
AG standalone in 2025, remains higher than internal model
-based RWA.
The leverage
ratio denominator
(the LRD)
decreased by
CHF 4.3bn to
CHF 551.7bn,
mainly driven
by decreases
in the
balance
sheet,
securities
financing
transactions
and
credit
commitment
exposures,
partly
offset
by
an
increase
in
exposures for derivatives mainly as a result of the implementation
of the final Basel III standards.
31 March 2025 Pillar 3 Report |
Significant regulated subsidiaries and
sub-groups | UBS Switzerland AG standalone
24
The
quarterly
average
liquidity
coverage
ratio
(the
LCR)
of
UBS
Switzerland AG
decreased
6.4 percentage
points
to
137.1%,
remaining
above
the
prudential
requirement
communicated
by
the
FINMA.
The
movement
in
the
quarterly
average
LCR
was
primarily
driven
by
a
decrease
in
high-quality
liquid
assets
(HQLA)
of
CHF 13.8bn
to
CHF 111.2bn,
reflecting lower cash available from funding received from UBS AG. The effect of the decrease in HQLA was partly offset
by a decrease
in net cash
outflows of
CHF 6.0bn to CHF
81.2bn, reflecting
lower outflows from
intercompany funding
from UBS AG, partly offset by higher outflows from customer
deposits.
As of
31 March
2025, the
net stable
funding ratio
decreased
3.7 percentage
points to
128.5%,
remaining above
the
prudential
requirement
communicated
by
FINMA.
Available
stable
funding
decreased
by
CHF 4.1bn
to
CHF 355.0bn,
mainly
driven
by
lower
customer
deposits
and
debt
issued.
Required
stable
funding
increased
by
CHF 4.6bn
to
CHF 276.3bn, mainly driven by higher lending assets, partly
offset by lower derivative balances.
KM1: Key metrics
CHF m, except where indicated
31.3.25
31.12.24
30.9.24
30.6.24
31.3.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
21,596
21,659
22,016
12,601
12,630
2
Tier 1
29,590
29,652
30,009
17,601
17,630
3
Total capital
29,590
29,652
30,009
17,601
17,630
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
174,610
186,265
185,237
110,294
111,292
4a
Total risk-weighted assets (pre-floor)
153,743
168,033
167,384
100,623
102,993
4b
Minimum capital requirement
1
13,969
14,901
14,819
8,824
8,903
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
12.37
11.63
11.89
11.43
11.35
5b
Common equity tier 1 ratio (%) (pre-floor)
2
14.05
12.89
13.15
12.52
12.26
6
Tier 1 ratio (%)
16.95
15.92
16.20
15.96
15.84
6b
Tier 1 ratio (%) (pre-floor)
2
19.25
17.65
17.93
17.49
17.12
7
Total capital ratio (%)
16.95
15.92
16.20
15.96
15.84
7b
Total capital ratio (%) (pre-floor)
2
19.25
17.65
17.93
17.49
17.12
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
2.50
2.50
2.50
2.50
2.50
9
Countercyclical buffer requirement (%)
0.06
0.08
0.08
0.07
0.05
9a
Additional countercyclical buffer for Swiss mortgage loans
(%)
0.80
0.88
0.90
0.81
0.81
10
Bank G-SIB and / or D-SIB additional requirements (%)
3
11
Total of bank CET1 specific buffer requirements (%)
4
2.56
2.58
2.58
2.57
2.55
12
CET1 available after meeting the bank’s minimum capital requirements (%)
5
7.87
7.13
7.39
6.93
6.85
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
551,716
556,053
567,484
337,149
337,653
14
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves)
6
5.36
5.33
5.29
5.22
5.22
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
2
5.36
14c
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
2, 6
5.34
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
2
5.34
14e
Minimum capital requirements
2, 7
16,551
Liquidity coverage ratio (LCR)
8
15
Total high-quality liquid assets (HQLA)
111,231
125,007
126,037
78,141
77,489
16
Total net cash outflow
81,164
87,160
85,964
53,601
54,396
16a
of which: cash outflows
110,357
116,768
114,992
74,884
75,050
16b
of which: cash inflows
29,193
29,608
29,027
21,283
20,654
17
LCR (%)
137.08
143.47
146.68
145.89
142.47
Net stable funding ratio (NSFR)
9
18
Total available stable funding
355,035
359,170
369,168
224,953
224,591
19
Total required stable funding
276,279
271,688
274,029
165,291
166,818
20
NSFR (%)
128.51
132.20
134.72
136.10
134.63
1 Calculated as 8% of total RWA, based on total capital minimum requirements,
excluding CET1 buffer requirements.
2 First-time disclosure, based on the final Basel III standards implemented
on 1 January 2025.
3 Swiss SRB going
and gone concern
requirements and information
for UBS Switzerland
AG are provided
below.
4 Excludes non-BCBS capital
buffer requirements for
risk-weighted positions that
are directly or
indirectly backed by residential properties in Switzerland.
5 Represents the CET1 ratio that is available to meet buffer requirements. Calculated as
the CET1 ratio minus the BCBS CET1 capital requirement and, where
applicable, minus the BCBS tier 2 capital requirement met with CET1 capital.
6 There is currently no temporary exemption of central bank reserves for UBS.
7 The higher of capital requirements based on 8% RWA
or 3% LRD.
8 Calculated after the application of
haircuts and inflow and outflow rates,
as well as, where applicable,
caps on Level 2 assets and
cash inflows. Calculated based on
an average of 62 data
points in
the first quarter of 2025 and 64 data points in the fourth quarter of 2024. For the prior-quarter data points,
refer to the respective Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors,
for more
information.
9 UBS Switzerland AG is required to maintain a minimum NSFR
of at least 100% on an ongoing basis, as set out
in Art. 17h para. 1 of the Liquidity Ordinance.
A portion of the excess funding is used
to fulfill the NSFR requirement of UBS AG standalone.
31 March 2025 Pillar 3 Report |
Significant regulated subsidiaries and
sub-groups | UBS Switzerland AG standalone
25
Swiss systemically relevant bank going and gone concern
requirements and information
The
tables
below
provide
details
of the
Swiss
systemically
relevant
bank
(SRB)
RWA-
and
LRD-based
going
and
gone
concern requirements
and information
as required
by FINMA
;
details regarding
eligible
gone concern
instruments
are
also provided below.
UBS Switzerland AG is considered an
SRB under Swiss banking law
and is subject to capital regulations
on a standalone
basis.
As
of
31 March
2025,
the
going
concern
capital
and
leverage
ratio
requirements
for
UBS
Switzerland AG
standalone were 15.16% (including a countercyclical buffer
of 0.86%) and 5.00%, respectively.
The Swiss SRB
framework and
going concern requirements
applicable to
UBS Switzerland AG
standalone are
the same
as those applicable to
UBS Group AG consolidated.
The gone concern requirement
corresponds to 62% of
the Group’s
going concern
requirements, excluding
the countercyclical
buffer requirements
and Pillar 2
add-ons. Outstanding
total
loss-absorbing
capacity-eligible
unsecured
debt
instruments
are
eligible to
meet
gone concern
requirements
until one
year before maturity.
The gone concern
requirements were 8.87%
for the RWA-based
requirement and 3.10%
for the LRD-based
requirement.
›
Refer to “Capital and capital ratios of our
significant regulated subsidiaries” in the “Capital,
liquidity and funding, and balance
sheet” section of the UBS Group Annual Report 2024,
available under “Annual reporting” at
ubs.com/investors
, for more
information about the joint liability of UBS AG and
UBS Switzerland AG
Swiss SRB going and gone concern requirements and information
As of 31.3.25
RWA
LRD
CHF m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
15.16
1
26,475
5.00
1
27,586
Common equity tier 1 capital
10.86
18,967
3.50
19,310
of which: minimum capital
4.50
7,857
1.50
8,276
of which: buffer capital
5.50
9,604
2.00
11,034
of which: countercyclical buffer
0.86
1,506
Maximum additional tier 1 capital
4.30
7,508
1.50
8,276
of which: additional tier 1 capital
3.50
6,111
1.50
8,276
of which: additional tier 1 buffer capital
0.80
1,397
Eligible going concern capital
Total going concern capital
16.95
29,590
5.36
29,590
Common equity tier 1 capital
12.37
21,596
3.91
21,596
Total loss-absorbing additional tier 1 capital
4.58
7,995
1.45
7,995
of which: high-trigger loss-absorbing additional tier 1 capital
4.58
7,995
1.45
7,995
Required gone concern capital
2
Total gone concern loss-absorbing capacity
8.87
15,481
3.10
17,103
of which: base requirement including add-ons for market share and
LRD
8.87
3
15,481
3.10
3
17,103
Eligible gone concern capital
Total gone concern loss-absorbing capacity
11.02
19,248
3.49
19,248
TLAC-eligible unsecured debt
11.02
19,248
3.49
19,248
Total loss-absorbing capacity
Required total loss-absorbing capacity
24.03
41,956
8.10
44,689
Eligible total loss-absorbing capacity
27.97
48,838
8.85
48,838
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
174,610
Leverage ratio denominator
551,716
1 Includes applicable add-ons of 1.44% for risk-weighted assets (RWA) and 0.50% for leverage ratio denominator (LRD).
2 A maximum of 25% of the gone concern requirements can be met with instruments that
have a remaining maturity of between one and two years. Once at least 75% of the minimum gone concern requirement has been met with instruments that have a remaining maturity of greater than
two years, all
instruments that have a remaining maturity of between one and two years remain eligible to be included in the total gone concern capital.
3 Includes applicable add-ons of 0.89% for RWA and 0.31% for LRD.
31 March 2025 Pillar 3 Report |
Significant regulated subsidiaries and
sub-groups | UBS Switzerland AG standalone
26
Swiss SRB going and gone concern information
CHF m, except where indicated
31.3.25
31.12.24
Eligible going concern capital
Total going concern capital
29,590
29,652
Total tier 1 capital
29,590
29,652
Common equity tier 1 capital
21,596
21,659
Total loss-absorbing additional tier 1 capital
7,995
7,994
of which: high-trigger loss-absorbing additional tier 1 capital
7,995
7,994
Eligible gone concern capital
Total gone concern loss-absorbing capacity
19,248
19,274
TLAC-eligible unsecured debt
19,248
19,274
Total loss-absorbing capacity
Total loss-absorbing capacity
48,838
48,926
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
174,610
186,265
Leverage ratio denominator
551,716
556,053
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
16.9
15.9
of which: common equity tier 1 capital ratio
12.4
11.6
Gone concern loss-absorbing capacity ratio
11.0
10.3
Total loss-absorbing capacity ratio
28.0
26.3
Leverage ratios (%)
Going concern leverage ratio
5.4
5.3
of which: common equity tier 1 leverage ratio
3.9
3.9
Gone concern leverage ratio
3.5
3.5
Total loss-absorbing capacity leverage ratio
8.9
8.8
31 March 2025 Pillar 3 Report |
Significant regulated subsidiaries and
sub-groups | UBS Europe SE consolidated
27
UBS Europe SE consolidated
Key metrics for the first quarter of 2025
The table below provides information about the regulatory capital components,
capital ratios, leverage ratio and liquidity
of UBS Europe SE
consolidated based
on Basel
Committee
on Banking
Supervision (BCBS)
Pillar 1 requirements
and in
accordance with EU regulatory rules and IFRS Accounting
Standards.
During the first
quarter of 2025,
available capital increased
by EUR 0.2bn to
EUR 4.0bn, primarily
due to the
merger of
UBS Europe SE and Credit Suisse
(Italy) S.A. In the
EU, the final Basel III requirements
became applicable as of
1 January
2025, except for the
Fundamental Review of the
Trading Book (the FRTB) requirements, the
implementation of which has
been
delayed
until
at
least
1 January
2026.
Risk-weighted
assets
increased
by
EUR 0.4bn
to
EUR 14.5bn,
including
a
EUR 1.3bn increase resulting from the implementation of the final Basel III standards.
Leverage ratio exposure was stable
at EUR 55.6bn.
The average liquidity coverage ratio (the LCR)
remained well above the regulatory requirement of
100%, at 140.4%. The
increase in the
LCR was
driven by
a EUR 1.4bn
increase in
high-quality liquid
assets (HQLA),
partly offset
by higher
net
cash outflows
.
The
increase
in HQLA
was
mainly
due to
an increase
in
intercompany
funding,
partly
offset
by
higher
client-driven activity levels in the Investment Bank
in Asian markets. The net stable
funding ratio remained well above the
regulatory
requirements
of
100%,
at
140.5%.
Available
stable
funding
increased
by
EUR 1.4bn,
mainly
reflecting
an
increase in longer-term intercompany funding.
Required stable funding decreased by EUR 0.4bn, mainly driven by higher
levels of client-driven activity levels in the Investment Bank
in Asian markets.
KM1: Key metrics
1,2
EUR m, except where indicated
31.3.25
31.12.24
3
30.9.24
3
30.6.24
3
31.3.24
3
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
3,424
3,239
2,701
2,740
2,619
2
Tier 1
4,024
3,839
3,301
3,340
3,219
3
Total capital
4,024
3,839
3,301
3,340
3,219
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
14,474
14,079
12,657
12,423
12,645
4a
Total risk-weighted assets (RWA) (pre-floor)
4
14,474
4b
Minimum capital requirement
5
1,158
1,126
1,013
994
1,012
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
23.7
23.0
21.3
22.1
20.7
5b
CET1 ratio (%) (pre-floor)
4
23.7
6
Tier 1 ratio (%)
27.8
27.3
26.1
26.9
25.5
6b
Tier 1 ratio (%) (pre-floor)
4
27.8
7
Total capital ratio (%)
27.8
27.3
26.1
26.9
25.5
7b
Total capital ratio (%) (pre-floor)
4
27.8
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
2.5
2.5
2.5
2.5
2.5
9
Countercyclical buffer requirement (%)
0.7
0.7
0.7
0.7
0.6
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
Total of bank CET1 specific buffer requirements (%)
3.2
3.2
3.2
3.2
3.1
12
CET1 available after meeting the bank’s minimum capital requirements (%)
6
19.2
18.5
16.8
17.6
16.2
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
55,593
55,676
50,053
50,630
48,797
14
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves)
7,8
7.2
6.9
6.6
6.6
6.6
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
4
7.2
14e
Minimum capital requirements
4,9
1,668
Liquidity coverage ratio (LCR)
10
15
Total high-quality liquid assets (HQLA)
18,664
17,285
16,741
17,269
18,284
16
Total net cash outflow
13,355
12,542
11,523
11,658
12,406
17
LCR (%)
140.4
138.9
145.2
148.3
147.9
Net stable funding ratio (NSFR)
18
Total available stable funding
18,580
17,134
14,409
14,846
13,384
19
Total required stable funding
13,222
13,656
11,266
11,410
10,874
20
NSFR (%)
140.5
125.5
127.9
130.1
123.1
1 Based on applicable EU regulatory rules.
2 Row 9a of the FINMA template is applicable to FINMA-regulated scope only and
rows 14c and 14d have been removed because the EU does not require the disclosure
of mean values for
SFTs.
3 Comparative figures have been restated
to align with the regulatory
reports as submitted to the
European Central Bank.
4 First-time disclosure, based on
the final Basel III standards
implemented on 1 January 2025.
5 Calculated as 8% of total RWA,
based on total capital minimum
requirements, excluding CET1 buffer requirements.
6 Represents the CET1 ratio that is
available for meeting
buffer requirements. Calculated as the
CET1 ratio minus 4.5% and
after considering, where applicable,
CET1 capital that has been used
to meet tier 1 and / or total
capital ratio requirements under Pillar
1.
7 On
the basis of tier 1 capital.
8 There is currently no temporary exemption of central bank reserves for UBS Europe SE.
9 The higher of capital requirements based on 8% RWA or 3% LRD.
10 Figures are calculated
based on a 12
‑
month average.
31 March 2025 Pillar 3 Report |
Significant regulated subsidiaries and
sub-groups | UBS Americas Holding LLC consolidated
28
UBS Americas Holding LLC consolidated
Key metrics for the first quarter of 2025
The table
below is
based on
Basel Committee
on Banking
Supervision
(BCBS) Pillar
1 requirements
and in
accordance
with US Basel III rules and generally accepted accounting
principles in the US (US GAAP).
Effective 1 October 2024 and through 30 September 2025,
UBS Americas Holding LLC is
subject to a stress capital
buffer
(an SCB)
of 9.3%,
in addition
to the
minimum capital
requirements. The
SCB was
determined by
the Federal
Reserve
Board following
the completion
of the
2024 Comprehensive
Capital Analysis
and Review
(the CCAR)
based on
Dodd–
Frank Act Stress
Test (DFAST) results
and planned future dividends.
The SCB, which
replaces the static capital
conservation
buffer of 2.5%, is subject to change on an annual basis or
as otherwise determined by the Federal Reserve Board.
During the first quarter
of 2025, common equity
tier 1 and tier 1 capital
both increased by USD
0.1bn, primarily due
to
net operating profit, partly
offset by an increase
in deduction from deferred
tax assets arising from
temporary differences,
and preferred dividends
paid to UBS
AG. Risk-weighted
assets (RWA) increased
by USD 0.8bn to
USD 79.3bn, due to
a
USD 1.4bn increase in market risk RWA, partly offset by a USD 0.6bn decrease in credit risk RWA. The increase
in market
risk RWA was
due to higher
exposures in value-at-risk
/ stressed value-at-risk
and specific risk,
which both increased
by
USD 0.7bn. The decrease in
credit risk RWA
was mostly due to
a USD 1.5bn decrease relating
to the wind-down of
legacy
Credit Suisse exposures, partly offset by USD 0.9bn increase
in derivatives due to higher business
volumes. Leverage ratio
exposure, calculated on an average
basis, increased USD 7.5bn to USD 205.0bn
and as a result, the tier 1
leverage ratio
decreased 0.3 percentage
points to
9.3%. The
tier 1 supplementary
leverage ratio
(the SLR)
decreased 0.2 percentage
points to 8.1%, primarily driven by a USD 6.4bn increase
in SLR exposure.
The
average
liquidity
coverage
ratio
decreased
0.7 percentage
points
to
132.9%,
as
net
cash
outflows
increased
by
USD 1.1bn
and
high-quality
liquid
assets
increased
by
USD 1.4bn.
The
average
net
stable
funding
ratio
decreased
1.8 percentage points to 134.0%;
this was due to a USD 1.4bn decrease in available
stable funding.
KM1: Key metrics
1
USD m, except where indicated
31.3.25
31.12.24
30.9.24
30.6.24
2
31.3.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
16,236
16,123
23,303
23,036
14,136
2
Tier 1
19,053
18,941
26,121
25,846
16,975
3
Total capital
19,258
19,181
26,378
26,103
17,174
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
79,345
78,585
84,944
84,289
75,897
4b
Minimum capital requirement
3
6,348
6,287
6,795
6,743
6,072
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
20.5
20.5
27.4
27.3
18.6
6
Tier 1 ratio (%)
24.0
24.1
30.8
30.7
22.4
7
Total capital ratio (%)
24.3
24.4
31.1
31.0
22.6
Additional CET1 buffer requirements as a percentage of RWA
8
BCBS capital conservation buffer requirement (%)
2.5
2.5
2.5
2.5
2.5
8a
US stress capital buffer requirement (%)
9.3
9.3
9.1
9.1
9.1
9
Countercyclical buffer requirement (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
BCBS total of bank CET1 specific buffer requirements (%)
2.5
2.5
2.5
2.5
2.5
11a
US total bank specific capital buffer requirements (%)
9.3
9.3
9.1
9.1
9.1
12
CET1 available after meeting the bank’s minimum capital requirements (%)
4
16.0
16.0
22.9
22.8
14.1
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
5
204,960
197,487
197,597
205,699
6
183,701
14
Basel III leverage ratio (%)
7
9.3
9.6
13.2
12.6
9.2
14a
Total Basel III supplementary leverage ratio exposure measure
5
234,346
227,973
227,490
232,968
6
209,750
14b
Basel III supplementary leverage ratio (%)
7
8.1
8.3
11.5
11.1
8.1
Liquidity coverage ratio (LCR)
15
Total high-quality liquid assets (HQLA)
5
28,182
26,801
32,069
29,749
8
28,410
16
Total net cash outflow
5,9
21,213
20,064
24,649
20,135
8
18,947
17
LCR (%)
132.9
133.6
130.1
147.7
8
149.9
Net stable funding ratio (NSFR)
18
Total available stable funding
5
107,920
109,283
112,554
107,825
8
107,370
19
Total required stable funding
5,9
80,532
80,456
81,952
79,651
8
80,303
20
NSFR (%)
134.0
135.8
137.3
135.4
8
133.7
1 As the final Basel
III standards have not been
implemented in the US,
rows that are not applicable
have been removed from the
FINMA template.
2 Regulatory information is inclusive of
Credit Suisse Holdings
(USA), Inc., following
the reparenting
of this entity
under UBS Americas
Holding LLC
on 7 June
- Prior
periods have not
been restated.
3 Calculated as
8% of total
RWA, based
on total minimum
capital
requirements, excluding CET1
buffer requirements.
4 Represents the CET1
ratio that is
available to meet
buffer requirements. Calculated
as the CET1
ratio minus the
BCBS CET1 capital
requirement and, where
applicable, minus the BCBS additional tier 1 and tier 2 capital requirements met with CET1 capital.
5 Figures are calculated on a quarterly average.
6 Leverage exposure for 30 June 2024 has been calculated as
if the reparenting of Credit Suisse Holdings (USA), Inc., occurred on the first day of the calendar quarter.
7 On the basis of tier 1 capital.
8 The liquidity coverage ratio and net stable funding ratio for 30 June 2024
are calculated on a simple daily average of the quarter which included the business activity of Credit Suisse Holdings (USA), Inc., beginning on 7 June 2024.
9 Reflected at 85% of the full amount in accordance with
the Federal Reserve tailoring rule.
31 March 2025 Pillar 3 Report |
Significant regulated subsidiaries and
sub-groups | Credit Suisse International standalone
29
Credit Suisse International standalone
Key metrics for the first quarter of 2025
The table
below is
based on
Basel Committee
on Banking
Supervision
(BCBS) Pillar
1 requirements
and in
accordance
with UK Prudential Regulatory Authority regulations and IFRS
Accounting Standards.
During the first quarter of 2025, common equity tier 1 capital and total capital were stable at USD 6.8bn. Risk-weighted
assets
(RWA)
decreased
by
USD 1.6bn
to
USD 9.3bn,
driven
by
decreases
in
credit
risk
RWA
and
credit
valuation
adjustment
RWA
due
to
a
reduction
in
trading
activity
levels.
Leverage
ratio
exposure
decreased
by
USD 9.2bn
to
USD 23.3bn, mainly driven by decreases in reverse repos,
trading inventory, cash and derivatives.
The average liquidity coverage ratio was 361.8%, compared with 363.3%
in the fourth quarter of 2024. The movement
was driven by
a decrease of USD 1.0bn
in high-quality liquid assets
(HQLA), reflecting the re-balancing
of HQLA to release
trapped liquidity held in the entity, and a USD 0.2bn reduction
in net cash outflows.
The
net
stable
funding
ratio
(the
NSFR)
of
Credit
Suisse
International
standalone
remained
above
the
regulatory
requirement of
100%, at
241.8%, compared
with 214.8%
in the
fourth quarter
of 2024.
The movement
in the
NSFR
was driven by
a decrease of
USD 3.5bn in available
stable funding,
mainly reflecting decreases
in capital and
long-term
funding. This
was partly
offset by
a decrease
of USD 2.5bn
in required
stable funding,
mainly driven
by a
decrease
in
derivative exposures, trading inventory and unsecured
lending.
KM1: Key metrics
1
USD m, except where indicated
31.3.25
31.12.24
30.9.24
30.6.24
31.3.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
6,816
6,883
12,945
12,814
12,896
2
Tier 1
6,816
6,883
14,145
14,014
14,096
3
Total capital
6,816
6,883
14,145
14,014
14,096
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
9,332
10,951
16,983
19,699
28,068
4b
Minimum capital requirement
2
747
876
1,359
1,576
2,245
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
73.04
62.86
76.22
65.05
45.95
6
Tier 1 ratio (%)
73.04
62.86
83.29
71.14
50.22
7
Total capital ratio (%)
73.04
62.86
83.29
71.14
50.22
Additional CET1 buffer requirements as a percentage of RWA
8
BCBS capital conservation buffer requirement (%)
2.50
2.50
2.50
2.50
2.50
9
Countercyclical buffer requirement (%)
0.93
0.76
0.73
0.58
0.61
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
BCBS total of bank CET1 specific buffer requirements (%)
3.43
3.26
3.23
3.08
3.11
12
CET1 available after meeting the bank’s minimum capital requirements (%)
3
65.04
54.86
71.72
60.55
41.45
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
23,341
32,521
55,245
58,250
67,069
14
Basel III leverage ratio (%)
4
29.20
21.16
25.60
24.06
21.02
Liquidity coverage ratio (LCR)
5
15
Total high-quality liquid assets (HQLA)
14,008
15,031
14,984
14,578
14,589
16
Total net cash outflow
4,070
4,253
4,206
4,423
4,485
17
LCR (%)
361.77
363.29
367.15
345.26
340.28
Net stable funding ratio (NSFR)
18
Total available stable funding
13,990
17,503
21,600
23,409
26,680
19
Total required stable funding
6,145
8,693
12,935
16,461
20,010
20
NSFR (%)
241.78
214.78
182.88
150.84
136.72
1 As the final Basel
III standards have not
been implemented in the
UK, rows that are not
applicable have been removed
from the FINMA template.
2 Calculated as 8%
of total RWA, based
on total minimum
capital requirements, excluding CET1
buffer requirements.
3 Represents the CET1 ratio
that is available to meet buffer
requirements. Calculated as the
CET1 ratio minus the BCBS CET1
capital requirement and,
where applicable, minus the BCBS additional tier 1 and tier 2 capital requirements met with CET1 capital.
4 On the basis of tier 1 capital.
5 Based on Pillar 1 requirements; calculated using a 12-month average.
31 March 2025 Pillar 3 Report |
Appendix
30
Appendix
Abbreviations frequently used in our financial reports
A
ABS
asset-backed securities
AG
Aktiengesellschaft
AGM
Annual General Meeting of
shareholders
AI
artificial intelligence
A-IRB
advanced internal ratings-
based
ALCO
Asset and Liability
Committee
AMA
advanced measurement
approach
AML
anti-money laundering
AoA
Articles of Association
APM
alternative performance
measure
ARR
alternative reference rate
ARS
auction rate securities
ASF
available stable funding
AT1
additional tier 1
AuM
assets under management
B
BCBS
Basel Committee on
Banking Supervision
BIS
Bank for International
Settlements
BoD
Board of Directors
C
CAO
Capital Adequacy
Ordinance
CCAR
Comprehensive Capital
Analysis and Review
CCF
credit conversion factor
CCP
central counterparty
CCR
counterparty credit risk
CCRC
Corporate Culture and
Responsibility Committee
CDS
credit default swap
CEO
Chief Executive Officer
CET1
common equity tier 1
CFO
Chief Financial Officer
CGU
cash-generating unit
CHF
Swiss franc
CIO
Chief Investment Office
C&ORC
Compliance & Operational
Risk Control
CRM
credit risk mitigation
CRO
Chief Risk Officer
CST
combined stress test
CUSIP
Committee on Uniform
Security Identification
Procedures
CVA
credit valuation adjustment
D
DBO
defined benefit obligation
DCCP
Deferred Contingent
Capital Plan
DFAST
Dodd–Frank Act Stress Test
DM
discount margin
DOJ
US Department of Justice
DTA
deferred tax asset
DVA
debit valuation adjustment
E
EAD
exposure at default
EB
Executive Board
EC
European Commission
ECB
European Central Bank
ECL
expected credit loss
EGM
Extraordinary General
Meeting of shareholders
EIR
effective interest rate
EL
expected loss
EMEA
Europe, Middle East and
Africa
EOP
Equity Ownership Plan
EPS
earnings per share
ESG
environmental, social and
governance
ETD
exchange-traded derivatives
ETF
exchange-traded fund
EU
European Union
EUR
euro
EURIBOR
Euro Interbank Offered Rate
EVE
economic value of equity
EY
Ernst & Young Ltd
F
FCA
UK Financial Conduct
Authority
FDIC
Federal Deposit Insurance
Corporation
FINMA
Swiss Financial Market
Supervisory Authority
FMIA
Swiss Financial Market
Infrastructure Act
FRTB
Fundamental Review of the
Trading Book
FSB
Financial Stability Board
FTA
Swiss Federal Tax
Administration
FVA
funding valuation
adjustment
FVOCI
fair value through other
comprehensive income
FVTPL
fair value through profit or
loss
FX
foreign exchange
G
GAAP
generally accepted
accounting principles
GBP
pound sterling
GCRG
Group Compliance,
Regulatory and Governance
GDP
gross domestic product
GEB
Group Executive Board
GHG
greenhouse gas
GIA
Group Internal Audit
GRI
Global Reporting Initiative
G-SIB
global systemically
important bank
H
HQLA
high-quality liquid assets
I
IA
Internal Audit
IAS
International Accounting
Standards
IASB
International Accounting
Standards Board
IBOR
interbank offered rate
IFRIC
International Financial
Reporting Interpretations
Committee
IFRS
accounting standards
Accounting
issued by the IASB
Standards
IRB
internal ratings-based
IRRBB
interest rate risk in the
banking book
ISDA
International Swaps and
Derivatives Association
ISIN
International Securities
Identification Number
31 March 2025 Pillar 3 Report |
Appendix
31
Abbreviations frequently used in our financial reports (continued)
K
KRT
Key Risk Taker
L
LAS
liquidity-adjusted stress
LCR
liquidity coverage ratio
LGD
loss given default
LIBOR
London Interbank Offered
Rate
LLC
limited liability company
LoD
lines of defense
LRD
leverage ratio denominator
LTIP
Long-Term
Incentive Plan
LTV
loan-to-value
M
M&A
mergers and acquisitions
MRT
Material Risk Taker
N
NII
net interest income
NSFR
net stable funding ratio
NYSE
New York Stock Exchange
O
OCA
own credit adjustment
OCI
other comprehensive
income
OECD
Organisation for Economic
Co-operation and
Development
OTC
over-the-counter
P
PCI
purchased credit impaired
PD
probability of default
PIT
point in time
PPA
purchase price allocation
Q
QCCP
qualifying central
counterparty
R
RBC
risk-based capital
RbM
risk-based monitoring
REIT
real estate investment trust
RMBS
residential mortgage-
backed securities
RniV
risks not in VaR
RoCET1
return on CET1 capital
RoU
right-of-use
rTSR
relative total shareholder
return
RWA
risk-weighted assets
S
SA
standardized approach or
société anonyme
SA-CCR
standardized approach for
counterparty credit risk
SAR
Special Administrative
Region of the People’s
Republic of China
SDG
Sustainable Development
Goal
SEC
US Securities and Exchange
Commission
SFT
securities financing
transaction
SIBOR
Singapore Interbank
Offered Rate
SICR
significant increase in credit
risk
SIX
SIX Swiss Exchange
SME
small and medium-sized
entities
SMF
Senior Management
Function
SNB
Swiss National Bank
SOR
Singapore Swap Offer Rate
SPPI
solely payments of principal
and interest
SRB
systemically relevant bank
SVaR
stressed value-at-risk
T
TBTF
too big to fail
TCFD
Task
Force on Climate-
related Financial Disclosures
TIBOR
Tokyo
Interbank Offered
Rate
TLAC
total loss-absorbing capacity
TTC
through the cycle
U
USD
US dollar
V
VaR
value-at-risk
VAT
value added tax
This is a general list of the abbreviations frequently used in our financial reporting. Not all of
the listed abbreviations may
appear in this particular report.
31 March 2025 Pillar 3 Report |
Appendix
32
Cautionary statement
|
This report
and the
information contained
herein are
provided solely
for information
purposes, and
are not to
be construed
as solicitation
of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating
to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this report. Refer to UBS’s most recent annual report on
Form 20-
F,
quarterly reports and other information
furnished to or filed with
the US Securities and Exchange
Commission (the SEC) on Form
6-K, available at
ubs.com/investors
, for additional information.
Rounding |
Numbers presented throughout this report may not add up
precisely to the totals provided in the tables and text.
Percentages and percent changes
disclosed in text and tables are
calculated on the basis of unrounded
figures. Absolute changes between reporting periods disclosed in
the text, which can be
derived from numbers presented in related tables, are calculated on
a rounded basis.
Tables |
Within tables, blank fields generally indicate non-applicability or that presentation of any content would not be meaningful, or that information is not
available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis.
Values
that are zero on a rounded basis can be either negative
or positive on an actual basis.
Websites |
In this report,
any website
addresses are provided
solely for information
and are not
intended to
be active links.
UBS does not
incorporate
the contents
of any such websites into this report.
UBS Group AG
PO Box
CH-8098 Zurich
ubs.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this
report to be signed on their behalf by the undersigned, thereunto duly
authorized.
UBS Group AG
By: _/s/ David Kelly _____________
Name:
David Kelly
Title:
Managing Director
By: _/s/ Ella Copetti-Campi ______________
Name:
Ella Copetti-Campi
Title:
Executive Director
UBS AG
By: _/s/ David Kelly _____________
Name:
David Kelly
Title:
Managing Director
By: _/s/ Ella Copetti-Campi ______________
Name:
Ella Copetti-Campi
Title:
Executive Director
Date:
May 8, 2025