UBS Group AG 6-K, filed May 8, 2025
UBS Group AG (UBS)
6-K
2025-05-08
For: 2025-03-30
View Original
Added on
July 04, 2026
About this 6-K
UBS Group AG filed this 6-K on May 8, 2025.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Date: 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
☒
☐
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.
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
Section 2
Section 3
Section 4
Section 5
Section 6
Significant regulated subsidiaries and sub-groups
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Section 7
Appendix
Contacts
Switchboards
For all general inquiries:
ubs.com/contact
Zurich +41-44-234-1111
London +44-207-567-8000
New York +1-212-821-3000
Hong Kong SAR +852-2971-8888
Singapore +65-6495-8000
Investor Relations
UBS’s Investor Relations team
manages relationships with
institutional investors, research
analysts and credit rating agencies.
ubs.com/investors
Zurich +41-44-234-4100
New York +1-212-882-5734
Media Relations
UBS’s Media Relations team
manages relationships with global
media and journalists.
ubs.com/media
Zurich +41-44-234-8500
mediarelations@ubs.com
London +44-20-7567-4714
ubs-media-relations@ubs.com
New York +1-212-882-5858
mediarelations@ubs.com
Hong Kong SAR +852-2971-8200
sh-mediarelations-ap@ubs.com
Office of the Group Company
Secretary
The Group Company Secretary
handles inquiries directed to the
Chairman or to other members
of the Board of Directors.
UBS Group AG, Office of the
Group Company Secretary
PO Box, CH-8098 Zurich, Switzerland
sh-company-secretary@ubs.com
Zurich +41-44-235-6652
Shareholder Services
UBS’s Shareholder Services team,
a unit of the Group Company
Secretary’s office, manages
relationships with shareholders and
the registration of UBS Group AG
registered shares.
UBS Group AG, Shareholder Services
PO Box, CH-8098 Zurich, Switzerland
sh-shareholder-services@ubs.com
Zurich +41-44-235-6652
US Transfer Agent
For global registered share-related
inquiries in the US.
Computershare Trust Company NA
PO Box 43006
Providence, RI, 02940-3006, USA
Shareholder online inquiries:
www.computershare.com/us/
investor-inquiries
Shareholder website:
computershare.com/investor
Calls from the US
+1-866-305-9566
Calls from outside the US
+1-781-575-2623
TDD for hearing impaired
+1-800-231-5469
TDD for foreign shareholders
+1-201-680-6610
Imprint
Publisher: UBS Group AG, Zurich, Switzerland | ubs.com
Language: English
© UBS 2025. The key symbol and UBS are among the registered and
unregistered trademarks of UBS. All rights reserved.
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
2030. With UBS’s entities not being subject to the corresponding UK regulation, the overall impact on UBS is expected
to be limited.
In the EU, the final Basel III requirements became applicable as of 1 January 2025, except for the FRTB requirements, the
implementation of which has been delayed until at least 1 January 2026. In March 2025, the European Commission (the
EC) launched a consultation to determine the approach for implementing the FRTB requirements, as recent international
developments indicate further delays in the FRTB implementation, particularly in the US and the UK. UBS Europe SE is
subject to Basel III regulations in the EU. The impact on UBS can only be determined once the EC publishes its final
decision.
In the US, banking agencies, including the Federal Reserve Board, have been discussing amendments to their original
proposals regarding the implementation of the final Basel III standards. The timing and the content of a re-proposal
remain uncertain. UBS Americas Holding LLC is subject to the US requirements. The impact on UBS can only be
determined once the US publishes its final rules.
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
2
Total RWA at the level of the resolution group
3
TLAC as a percentage of RWA (%)
4
Leverage ratio exposure measure at the level of the resolution group
5
TLAC as a percentage of leverage ratio exposure measure (%)
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)
2
of which: standardized approach (SA)
2a
of which: non-counterparty-related risk
2
3
of which: foundation internal ratings-based (F-IRB) approach
3
4
of which: supervisory slotting approach
5
of which: advanced internal ratings-based (A-IRB) approach
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
7
of which: SA for counterparty credit risk (SA-CCR)
8
of which: internal model method (IMM)
8a
of which: value-at-risk (VaR)
9
of which: other CCR
10
Credit valuation adjustment (CVA)
10a
of which: full basic approach (BA-CVA)
3
10b
of which: standardized approach (SA-CVA)
3
11
Equity positions under the simple risk weight approach during the 5-year transitional period
6
12
Equity investments in funds – look-through approach
13
Equity investments in funds – mandate-based approach
14
Equity investments in funds – fallback approach
15
Settlement risk
16
Securitization exposures in banking book
17
of which: securitization internal ratings-based approach (SEC-IRBA)
18
of which: securitization external ratings-based approach (SEC-ERBA), including internal assessment approach (IAA)
19
of which: securitization standardized approach (SEC-SA)
20
Market risk
21
of which: standardized approach (SA)
22
of which: internal models approach (IMA)
23
Capital charge for switch between trading book and banking book
24
Operational risk
25
Amounts below thresholds for deduction (250% risk weight)
7
25a
26
Output floor applied (%)
3,8
27
Floor adjustment (before application of transitional cap)
3,9
28
Floor adjustment (after application of transitional cap)
10
29
Total
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)
2
Counterparty credit risk
3
Credit valuation adjustment (CVA)
4
Securitization exposures in banking book
5
Market risk
6
Operational risk
7
Residual RWA
1
8
Total
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
2
Asset size
3
Asset quality
4
Model updates
5
Methodology and policy
5a
of which: Impact from the implementation of final Basel III standards
5b
of which: others
6
Acquisitions and disposals
7
Foreign exchange movements
8
Other
9
RWA as of the end of the quarter
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
2
Asset size
3
Credit quality of counterparties
4
Model updates
5
Methodology and policy
5a
of which: impact from the implementation of final Basel III standards
5b
of which: others
6
Acquisitions and disposals
7
Foreign exchange movements
8
Other
9
RWA as of the end of the quarter
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
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
1
1
Common equity tier 1 capital
2
3
of which: minimum capital
of which: buffer capital
of which: countercyclical buffer
Maximum additional tier 1 capital
2
of which: additional tier 1 capital
of which: additional tier 1 buffer capital
Eligible going concern capital
Total going concern capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
7
7
of which: base requirement including add-ons for market share and LRD
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Total tier 2 capital
of which: non-Basel III-compliant tier 2 capital
TLAC-eligible senior unsecured debt
Total loss-absorbing capacity
Required total loss-absorbing capacity
Eligible total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
1 Includes applicable add-ons of 1.60% 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
2
Adjustment for investments in banking, financial, insurance or commercial entities that are consolidated for accounting purposes but outside the
scope of regulatory consolidation
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
9
Adjustment for securities financing transactions, (i.e. repos and similar secured lending)
10
Adjustment for off-balance sheet items (i.e. conversion to credit equivalent amounts of off-balance sheet exposures)
11
Adjustments for prudent valuation adjustments and specific and general provisions which have reduced Tier 1 capital
2
12
Other adjustments
12a
of which: asset amounts deducted in determining Tier 1 capital
12b
of which: consolidated entities under the regulatory scope of consolidation
13
Leverage ratio exposure
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)
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)
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)
6
(Asset amounts deducted in determining Tier 1 capital)
7
Total on-balance sheet exposures (excluding derivatives and SFTs)
Derivative Exposures
8
Replacement cost associated with all derivatives transactions (where applicable net of eligible cash variation margin and/or with bilateral
netting)
9
Add-on amounts for potential future exposure associated with all derivatives transactions
10
(Exempted qualifying central counterparty (QCCP ) leg of client-cleared trade exposures)
11
Adjusted effective notional amount of all written credit derivatives
2
12
(Adjusted effective notional offsets and add-on deductions for written credit derivatives )
3
13
Total derivative exposures
Securities financing transaction exposures
14
Gross SFT assets (with no recognition of netting), after adjusting for sale accounting transactions
15
(Netted amounts of cash payables and cash receivables of gross SFT assets)
16
Counterparty credit risk exposure for SFT assets
17
Agent transaction exposures
18
Total securities financing transaction exposures
Other off-balance sheet exposures
19
Off-balance sheet exposure at gross notional amount
20
(Adjustments for conversion to credit equivalent amounts)
21
(Specific and general provisions associated with off-balance sheet exposures deducted in determining Tier 1 capital)
22
Total off-balance sheet items
Capital and total exposures (leverage ratio denominator), phase-in
23
Tier 1 capital
24
Total exposures (leverage ratio denominator)
Leverage ratio
25
4
25a
Basel III leverage ratio (excluding the impact of any applicable temporary exemption of central bank reserves)
4
26
Leverage ratio minimum requirement
5
27
Leverage ratio buffers
5
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
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
30
of gross SFT assets (after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash receivables)
4
30a
28 of gross SFT assets (after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash
receivables)
4
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
31a
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 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 2025. 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
Securities (on- and off-balance sheet)
Total HQLA
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, 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
Cash outflows
2
Retail deposits and deposits from small business customers
3
of which: stable deposits
4
of which: less stable deposits
5
Unsecured wholesale funding
6
of which: operational deposits (all counterparties)
7
of which: non-operational deposits (all counterparties)
8
of which: unsecured debt
9
Secured wholesale funding
10
Additional requirements:
11
of which: outflows related to derivatives and other transactions
12
of which: outflows related to loss of funding on debt products
3
13
of which: committed credit and liquidity facilities
14
Other contractual funding obligations
15
Other contingent funding obligations
16
Total cash outflows
Cash inflows
17
Secured lending
18
Inflows from fully performing exposures
19
Other cash inflows
20
Total cash inflows
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
22
Net cash outflows
23
LCR (%)
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)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (pre-floor)
1
4b
Minimum capital requirement
2
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
5b
Common equity tier 1 ratio (%) (pre-floor)
1
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
1
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
1
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
3
11
Total of bank CET1 specific buffer requirements (%)
4
12
CET1 available after meeting the bank’s minimum capital requirements (%)
5
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
6
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
1
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
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
1
14e
Minimum capital requirements
1, 7
Liquidity coverage ratio (LCR)
8
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
16a
of which: cash outflows
16b
of which: cash inflows
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
1
1
Common equity tier 1 capital
2
3
of which: minimum capital
of which: buffer capital
of which: countercyclical buffer
Maximum additional tier 1 capital
2
of which: additional tier 1 capital
of which: additional tier 1 buffer capital
Eligible going concern capital
Total going concern capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
of which: base requirement including add-ons for market share and LRD
7
7
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Total tier 2 capital
of which: non-Basel III-compliant tier 2 capital
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Required total loss-absorbing capacity
Eligible total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
1 Includes applicable add-ons of 1.66% 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
Total tier 1 capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
of which: low-trigger loss-absorbing additional tier 1 capital
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Total tier 2 capital
of which: non-Basel III-compliant tier 2 capital
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
of which: common equity tier 1 capital ratio
Gone concern loss-absorbing capacity ratio
Total loss-absorbing capacity ratio
Leverage ratios (%)
Going concern leverage ratio
of which: common equity tier 1 leverage ratio
Gone concern leverage ratio
Total loss-absorbing capacity leverage ratio
UBS 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)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
1
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (pre-floor)
2
4b
Minimum capital requirement
3
Risk-based capital ratios as a percentage of RWA
1
5
Common equity tier 1 ratio (%)
5b
Common equity tier 1 ratio (%) (pre-floor)
2
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
2
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
2
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
4
11
Total of bank CET1 specific buffer requirements (%)
5
12
CET1 available after meeting the bank’s minimum capital requirements (%)
6
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
7
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
2
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
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
2
14e
Minimum capital requirements
2, 8
Liquidity coverage ratio (LCR)
9
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
16a
of which: cash outflows
16b
of which: cash inflows
17
LCR (%)
229.18
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
2
2
2
Common equity tier 1 capital
3
3
of which: minimum capital
of which: buffer capital
of which: countercyclical buffer
Maximum additional tier 1 capital
3
3
of which: additional tier 1 capital
of which: additional tier 1 buffer capital
Eligible going concern capital
Total going concern capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
Required gone concern capital
4
Higher of RWA- or LRD-based
Total gone concern loss-absorbing capacity
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Gone concern capital coverage ratio
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
Total tier 1 capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
of which: low-trigger loss-absorbing additional tier 1 capital
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Total tier 2 capital
of which: non-Basel III-compliant tier 2 capital
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Total loss-absorbing capacity
Denominators for going and gone concern ratios
Risk-weighted assets, phase-in
of which: investments in Switzerland-domiciled subsidiaries
1
of which: investments in foreign-domiciled subsidiaries
1
Risk-weighted assets, fully applied as of 1.1.28
of which: investments in Switzerland-domiciled subsidiaries
1
of which: investments in foreign-domiciled subsidiaries
1
Leverage ratio denominator
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio, phase-in
of which: common equity tier 1 capital ratio, phase-in
Going concern capital ratio, fully applied as of 1.1.28
of which: common equity tier 1 capital ratio, fully applied as of 1.1.28
Leverage ratios (%)
Going concern leverage ratio
of which: common equity tier 1 leverage ratio
Capital coverage ratio (%)
Gone concern capital coverage ratio
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)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (pre-floor)
4b
Minimum capital requirement
1
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
5b
Common equity tier 1 ratio (%) (pre-floor)
2
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
2
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
2
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
3
11
Total of bank CET1 specific buffer requirements (%)
4
12
CET1 available after meeting the bank’s minimum capital requirements (%)
5
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
6
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
2
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
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
2
14e
Minimum capital requirements
2, 7
Liquidity coverage ratio (LCR)
8
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
16a
of which: cash outflows
16b
of which: cash inflows
17
LCR (%)
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
1
1
Common equity tier 1 capital
of which: minimum capital
of which: buffer capital
of which: countercyclical buffer
Maximum additional tier 1 capital
of which: additional tier 1 capital
of which: additional tier 1 buffer capital
Eligible going concern capital
Total going concern capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
Required gone concern capital
2
Total gone concern loss-absorbing capacity
of which: base requirement including add-ons for market share and LRD
3
3
Eligible gone concern capital
Total gone concern loss-absorbing capacity
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Required total loss-absorbing capacity
Eligible total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
1 Includes applicable add-ons of 1.44% for risk-weighted assets (RWA) and 0.50% for leverage ratio denominator (LRD). 2 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
Total tier 1 capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
Eligible gone concern capital
Total gone concern loss-absorbing capacity
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
of which: common equity tier 1 capital ratio
Gone concern loss-absorbing capacity ratio
Total loss-absorbing capacity ratio
Leverage ratios (%)
Going concern leverage ratio
of which: common equity tier 1 leverage ratio
Gone concern leverage ratio
Total loss-absorbing capacity leverage ratio
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)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (RWA) (pre-floor)
4
4b
Minimum capital requirement
5
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
5b
CET1 ratio (%) (pre-floor)
4
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
4
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
4
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
Total of bank CET1 specific buffer requirements (%)
12
CET1 available after meeting the bank’s minimum capital requirements (%)
6
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
7,8
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
4
14e
Minimum capital requirements
4,9
Liquidity coverage ratio (LCR)
10
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
17
LCR (%)
Net stable funding ratio (NSFR)
18
Total available stable funding
19
Total required stable funding
20
NSFR (%)
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)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4b
Minimum capital requirement
3
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
6
Tier 1 ratio (%)
7
Total capital ratio (%)
Additional CET1 buffer requirements as a percentage of RWA
8
BCBS capital conservation buffer requirement (%)
8a
US stress capital buffer requirement (%)
9
Countercyclical buffer requirement (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
BCBS total of bank CET1 specific buffer requirements (%)
11a
US total bank specific capital buffer requirements (%)
12
CET1 available after meeting the bank’s minimum capital requirements (%)
4
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
5
6
14
Basel III leverage ratio (%)
7
14a
Total Basel III supplementary leverage ratio exposure measure
5
6
14b
Basel III supplementary leverage ratio (%)
7
Liquidity coverage ratio (LCR)
15
Total high-quality liquid assets (HQLA)
5
8
16
Total net cash outflow
5,9
8
17
LCR (%)
8
Net stable funding ratio (NSFR)
18
Total available stable funding
5
8
19
Total required stable funding
5,9
8
20
NSFR (%)
8
1 As the final Basel III standards have not been implemented in the US, rows that are not applicable have been removed from the FINMA template. 2 Regulatory information is inclusive of Credit Suisse Holdings
(USA), Inc., following the reparenting of this entity under UBS Americas Holding LLC on 7 June 2024. 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)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4b
Minimum capital requirement
2
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
6
Tier 1 ratio (%)
7
Total capital ratio (%)
Additional CET1 buffer requirements as a percentage of RWA
8
BCBS capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
BCBS total of bank CET1 specific buffer requirements (%)
12
CET1 available after meeting the bank’s minimum capital requirements (%)
3
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%)
4
Liquidity coverage ratio (LCR)
5
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
17
LCR (%)
Net stable funding ratio (NSFR)
18
Total available stable funding
19
Total required stable funding
20
NSFR (%)
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 |
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 |
disclosed in text and tables are calculated on the basis of unrounded figures. Absolute changes between reporting periods disclosed in the text, which can be
derived from numbers presented in related tables, are calculated on a rounded basis.
Tables |
available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis. Values
that are zero on a rounded basis can be either negative or positive on an actual basis.
Websites |
of any such websites into this report.
UBS Group AG
PO Box
CH-8098 Zurich
ubs.com
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