6-K 1 edgar1q25ubsgroup.htm edgar1q25ubsgroup
 
 
 
 
 
 
 
 
 
 
 
 
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: April 30, 2025
UBS Group AG
(Registrant's
 
Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
(Address of principal executive office)
Commission File Number: 1-36764
UBS AG
(Registrant's
 
Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
Aeschenvorstadt 1, 4051 Basel, Switzerland
 
(Address of principal executive offices)
Commission File Number: 1-15060
 
Indicate by check mark whether the registrants file or will file annual
 
reports under cover of Form 20-F or Form
40-
F.
Form 20-F
 
☒
 
Form 40-F
 
☐
 
 
This Form 6-K consists of the
 
First Quarter 2025 Report of UBS
 
Group AG, which appears immediately following
this page.
 
edgarq25ubsgroupagp3i0
 
 
 
UBS
 
Group
First quarter
 
2025 report
 
 
 
 
 
Corporate calendar UBS Group
Information about future publication dates is available
 
at
ubs.com/global/en/investor-relations/events/calendar.html
Contacts
Switchboards
For all general inquiries
 
ubs.com/contact
Zurich +41-44-234-1111
London +44-207-567-8000
New York +1-212-821-3000
Hong Kong +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 +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.
1.
UBS
 
Group
2.
UBS business divisions
 
and Group Items
3.
Risk, capital, liquidity and funding,
and balance sheet
4.
Consolidated
financial statements
Appendix
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report
 
2
Terms used in this report, unless the context requires otherwise
“UBS”, “UBS Group”, “UBS Group
 
AG consolidated”, “Group”, “we”,
 
“us” and “our”
UBS Group AG and its consolidated subsidiaries
“UBS AG” and “UBS
 
AG consolidated”
 
UBS AG and its consolidated subsidiaries
“Credit Suisse AG”
Credit Suisse AG and its consolidated subsidiaries
 
before the merger
with UBS AG
“Credit Suisse Group“ and “Credit Suisse”
Pre-acquisition Credit Suisse Group
“UBS Group AG”
 
UBS Group AG on a standalone basis
“UBS Switzerland AG”
UBS Switzerland AG on a standalone basis
“1m”
One million, i.e. 1,000,000
“1bn”
One billion, i.e. 1,000,000,000
“1trn”
One trillion, i.e. 1,000,000,000,000
In this report, unless the context requires otherwise,
 
references to any gender shall apply to all genders.
Alternative performance measures
An alternative performance measure (an APM) is a financial measure of historical or
 
future financial performance,
financial position
 
or cash
 
flows other
 
than a
 
financial measure
 
defined or
 
specified in
 
the applicable
 
recognized
accounting standards
 
or
 
in other
 
applicable regulations.
 
We
 
report
 
a
 
number of
 
APMs
 
in
 
the discussion
 
of
 
the
financial and
 
operating performance
 
of the
 
Group, our
 
business divisions
 
and Group
 
Items. We
 
use APMs
 
to provide
a
 
more
 
complete
 
picture of
 
our
 
operating performance
 
and
 
to
 
reflect
 
management’s view
 
of
 
the
 
fundamental
drivers
 
of
 
our
 
business
 
results. A
 
definition
 
of
 
each
 
APM,
 
the
 
method
 
used
 
to
 
calculate
 
it
 
and
 
the
 
information
content are presented
 
under “Alternative performance measures”
 
in the
 
appendix to this
 
report. Our APMs
 
may
qualify
 
as
 
non-GAAP
 
measures
 
as
 
defined
 
by
 
US
 
Securities
 
and
 
Exchange
 
Commission
 
(SEC)
 
regulations.
 
Our
underlying results are APMs and are non-GAAP
 
financial measures.
›
Refer to the “Group performance” section of this report and to “Alternative performance measures” in the
appendix to this report for additional information about underlying results
Significant regulated subsidiary and sub-group
 
information
Financial and regulatory key figures
 
for our significant regulated subsidiaries and sub-groups
 
will be published on
8 May 2025 and will be available under
 
“Holding company and significant
 
regulated subsidiaries and sub-groups”
at
ubs.com/investors
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report
 
3
Our key figures
Key figures
As of or for the quarter ended
USD m, except where indicated
31.3.25
31.12.24
31.3.24
1
Group results
Total revenues
 
12,557
 
11,635
 
12,739
Credit loss expense / (release)
 
100
 
229
 
106
Operating expenses
 
10,324
 
10,359
 
10,257
Operating profit / (loss) before tax
 
2,132
 
1,047
 
2,376
Net profit / (loss) attributable to shareholders
 
1,692
 
770
 
1,755
Diluted earnings per share (USD)
2
 
0.51
 
0.23
 
0.52
Profitability and growth
3,4
Return on equity (%)
 
7.9
 
3.6
 
8.2
Return on tangible equity (%)
 
8.5
 
3.9
 
9.0
Underlying return on tangible equity (%)
5,6
 
10.0
 
6.6
 
9.9
Return on common equity tier 1 capital (%)
 
9.6
 
4.2
 
9.0
Underlying return on common equity tier 1 capital (%)
5,6
 
11.3
 
7.2
 
9.9
Return on leverage ratio denominator, gross (%)
 
3.3
 
3.0
 
3.1
Cost / income ratio (%)
 
82.2
 
89.0
 
80.5
Underlying cost / income ratio (%)
5
 
77.4
 
81.9
 
77.2
Effective tax rate (%)
 
20.2
 
25.6
 
25.8
Net profit growth (%)
 
(3.6)
n.m.
 
70.6
Resources
3
Total assets
 
1,543,363
 
1,565,028
 
1,606,798
Equity attributable to shareholders
 
87,185
 
85,079
 
84,777
Common equity tier 1 capital
7
 
69,152
 
71,367
 
77,663
Risk-weighted assets
7
 
483,276
 
498,538
 
526,437
Common equity tier 1 capital ratio (%)
7
 
14.3
 
14.3
 
14.8
Going concern capital ratio (%)
7
 
18.2
 
17.6
 
17.7
Total loss-absorbing capacity ratio (%)
7
 
38.7
 
37.2
 
37.4
Leverage ratio denominator
7
 
1,561,583
 
1,519,477
 
1,599,646
Common equity tier 1 leverage ratio (%)
7
 
4.4
 
4.7
 
4.9
Liquidity coverage ratio (%)
8
 
181.0
 
188.4
 
220.2
Net stable funding ratio (%)
 
124.2
 
125.5
 
126.4
Other
Invested assets (USD bn)
4,9
 
6,153
 
6,087
 
5,848
Personnel (full-time equivalents)
 
106,789
 
108,648
 
111,549
Market capitalization
2,10
 
105,173
 
105,719
 
106,440
Total book value per share (USD)
2
 
27.35
 
26.80
 
26.44
Tangible book value per share (USD)
2
 
25.18
 
24.63
 
24.14
Credit-impaired lending assets as a percentage of total lending
 
assets, gross (%)
4
 
1.0
 
1.0
 
1.0
Cost of credit risk (bps)
4
 
7
 
15
 
7
1 Comparative-period information has been revised.
 
Refer to “Note 2 Accounting for the
 
acquisition of the Credit Suisse Group”
 
in the “Consolidated financial statements” section
 
of the UBS Group Annual
 
Report
2024, available under
 
“Annual
 
reporting” at ubs.com/investors,
 
for more information
 
about the relevant
 
adjustments.
 
2 Refer to the
 
“Share information
 
and earnings per
 
share” section of
 
this report for
 
more
information.
 
3 Refer to the
 
“Targets,
 
capital guidance and
 
ambitions” section of
 
the UBS Group
 
Annual Report 2024,
 
available under “Annual
 
reporting” at ubs.com/investors,
 
for more information
 
about our
performance targets.
 
4 Refer to “Alternative
 
performance measures” in the appendix
 
to this report for the definition and
 
calculation method.
 
5 Refer to the “Group performance” section
 
of this report for more
information about underlying results.
 
6 In the second quarter of 2024, comparative-period information for the first quarter
 
of 2024 has been restated to reflect the updated underlying tax impact.
 
7 Based on the
Swiss systemically relevant bank fram
 
ework. Refer to the “Capital management”
 
section of this report for more
 
information.
 
8 The disclosed ratios
 
represent quarterly averages for the
 
quarters presented and are
calculated based
 
on an
 
average of
 
62 data
 
points in
 
the first
 
quarter of
 
2025, 64
 
data points
 
in the
 
fourth quarter
 
of 2024
 
and 61
 
data points
 
in the
 
first quarter
 
of 2024.
 
Refer to
 
the “Liquidity
 
and funding
management” section of this report
 
for more information.
 
9 Consists of invested assets
 
for Global Wealth Management,
 
Asset Management (including
 
invested assets from associates)
 
and Personal &
 
Corporate
Banking. Refer to “Note 31 Invested assets and net new money” in the “Consolidated financial statements” section of the
 
UBS Group Annual Report 2024, available under “Annual
 
reporting” at ubs.com/investors,
for more information.
 
10 The calculation of market capitalization reflects total shares issued multiplied
 
by the share price at the end of the period.
 
 
UBS Group first quarter 2025 report |
UBS Group | Recent developments
 
4
UBS Group
Management report
Recent developments
Integration of Credit Suisse
We continue to
 
be on track
 
to substantially
 
complete the
 
integration of
 
Credit Suisse
 
by the end
 
of 2026.
 
Our focus
currently remains on client account migrations
 
and infrastructure decommissioning.
We have
 
commenced our Swiss
 
business migrations and
 
are preparing for
 
the first
 
main wave,
 
which is
 
planned
for the second
 
quarter of 2025,
 
and we aim
 
to complete the
 
Swiss booking center
 
migrations by the
 
end of the
first
 
quarter
 
of
 
2026.
 
In
 
the
 
first
 
quarter
 
of
 
2025
 
we
 
completed
 
the
 
consolidation
 
of
 
our
 
branch
 
network
 
in
Switzerland,
 
and we have
 
merged 95 branches
 
with existing
 
branches since the
 
merger of UBS
 
Switzerland AG and
Credit Suisse (Schweiz) AG in July 2024.
In the
 
first quarter
 
of 2025,
 
we realized
 
an additional
 
USD 0.9bn in
 
gross cost
 
savings. Cumulative
 
gross cost
 
savings
at the end
 
of the first
 
quarter of 2025
 
amounted to USD 8.4bn
 
compared with the 2022
 
combined cost base of
UBS and Credit Suisse. This
 
represents around 65% of our
 
ambition to deliver around USD 13bn
 
in annualized exit
rate gross cost savings by the end of 2026.
As of 31 March 2025, our
 
Non-core and Legacy business division has
 
delivered a 60% reduction in risk-weighted
assets (RWA)
 
since the second
 
quarter of 2023.
 
We now aim
 
for Non-core and
 
Legacy’s credit
 
and market risk
 
RWA
to be below USD 8bn by the end of 2025
 
and we expect its operating expenses,
 
excluding litigation, to be around
USD 1.8bn in 2025.
 
In March 2025, we completed
 
the sale of Select
 
Portfolio Servicing, the US mortgage
 
servicing business of Credit
Suisse, which was
 
managed in Non-core and
 
Legacy. We recognized a
 
gain of USD 97m
 
upon the completion of
the transaction. The
 
completion of the
 
transaction also reduced the
 
Group’s RWA by
 
around USD 1.3bn and the
Group’s leverage ratio denominator by around
 
USD 1.7bn.
We
 
entered
 
into
 
an
 
agreement
 
in
 
October
 
2024
 
to
 
sell
 
to
 
American
 
Express
 
Swiss
 
Holdings
 
GmbH
 
(American
Express) its
 
50% interest
 
in Swisscard
 
AECS GmbH
 
(Swisscard), a
 
joint venture
 
in Switzerland
 
between UBS
 
and
American Express, subject to certain closing conditions.
 
Also in October 2024, we entered into an agreement
 
with
Swisscard
 
to
 
transition
 
the
 
Credit
 
Suisse-branded
 
card
 
portfolios
 
to
 
UBS.
 
In
 
January
 
2025,
 
we
 
completed
 
the
purchase of the
 
card portfolios, with
 
the actual client
 
migration expected to
 
take place over
 
the following quarters.
The two transactions
 
are expected to
 
result in similar profit
 
and loss effects
 
over the course
 
of 2025 and, therefore,
on a net basis are not expected to have a material impact for the Group.
 
In the first quarter of 2025, we recorded
an expense
 
of USD 180m
 
related to
 
the acquisition
 
of the
 
card portfolio
 
and a
 
gain of
 
USD 64m related
 
to our
investment in Swisscard, and we expect to record a gain on the completion
 
of the sale of our interest in Swisscard
later in 2025.
Regulatory and legal developments
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.
 
 
UBS Group first quarter 2025 report |
UBS Group | Recent developments
 
5
Mutual recognition agreement with the UK
 
approved by the Swiss Parliament
In March
 
2025, the
 
Swiss Parliament
 
approved the
 
Berne Financial
 
Services Agreement
 
(the BFSA)
 
with the
 
UK,
which facilitates cross-border financial activities based on a new model for
 
regulatory cooperation and outcomes-
based
 
mutual
 
recognition of
 
domestic rules.
 
The
 
BFSA
 
is
 
supplemented by
 
an
 
enhanced
 
and
 
closer
 
supervisory
process and additional
 
supervisory arrangements where new
 
market access is
 
granted. It is
 
expected that the
 
UK
legislation will be finalized by the end of 2025.
 
Developments related to the 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 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.
Developments in the EU to simplify regulations
 
regarding environmental, social and governance
 
matters
In February
 
2025, the
 
EC published
 
proposals to
 
simplify the
 
requirements of the
 
Corporate Sustainability
 
Reporting
Directive
 
(the
 
CSRD),
 
the
 
Taxonomy
 
Regulation
 
and
 
the
 
Corporate
 
Sustainability
 
Due
 
Diligence
 
Directive
 
(the
CSDDD), with
 
the overarching
 
aims of
 
reducing the
 
reporting and
 
regulatory burden,
 
in particular
 
for small
 
and
medium-sized
 
enterprises,
 
and
 
enhancing
 
EU
 
competitiveness. In
 
April
 
2025,
 
the
 
European
 
Parliament
 
and
 
the
Council approved the
 
proposed directive
 
that delays certain
 
application dates of the
 
CSRD and the
 
CSDDD, with
that directive
 
entering into
 
force
 
on 17
 
April 2025.
 
The EU
 
Member States
 
have to
 
transpose this
 
directive into
national law by
 
31 December 2025. The
 
proposal to amend
 
certain requirements in
 
the CSRD and
 
the CSDDD is
expected to be adopted later in 2025. The
 
EC also proposed changes to the reporting
 
requirements under Article
8 of the EU Taxonomy Regulation that are expected to be adopted in the
 
second quarter of 2025. UBS entities
 
are
within the scope
 
of the regulations.
 
The impact of
 
the proposals on
 
UBS cannot yet
 
be assessed,
 
as they are
 
subject
to changes during the regulatory process.
US climate disclosure requirements
In March
 
2025, the
 
US Securities
 
and Exchange
 
Commission (the
 
SEC) announced
 
that it
 
would end
 
its legal
 
defense
of its 2024 climate disclosure regulation. The implementation of the regulation had previously been suspended by
the SEC as
 
a result of
 
legal challenges.
 
Certain US
 
states have
 
adopted or
 
intend to
 
adopt specific
 
state-level climate
risk disclosure
 
requirements for
 
companies operating
 
in their
 
respective states.
 
UBS will
 
monitor these
 
developments
to assess impact as rules are finalized.
 
 
UBS Group first quarter 2025 report |
UBS Group | Recent developments
 
6
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 CET1
 
capital ratio
 
target of
 
around 14%,
 
achieving our
 
financial
 
targets and
 
the absence
 
of material
and immediate changes to the current capital
 
regime in Switzerland.
Collaboration with 360 ONE WAM Ltd
In April 2025, we entered into a strategic
 
collaboration with 360 ONE WAM Ltd (360 ONE), one
 
of India’s largest
wealth and asset management firms. As part of the agreement, we plan to acquire warrants for a 4.95%
 
interest
in 360 ONE and
 
will transfer our
 
onshore wealth management
 
business in India
 
to 360 ONE, while
 
360 ONE clients
booked in Singapore will be served by
 
UBS Singapore. The closing of the transactions
 
is subject to approvals, and
the transactions are not expected to have a material impact
 
for UBS.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
UBS Group | Group performance
 
7
Group performance
 
Income statement
For the quarter ended
% change from
USD m
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Net interest income
 
1,629
 
1,838
 
1,940
 
(11)
 
(16)
Other net income from financial instruments measured
 
at fair value through profit or loss
 
3,937
 
3,144
 
4,182
 
25
 
(6)
Net fee and commission income
 
6,777
 
6,598
 
6,492
 
3
 
4
Other income
 
213
 
56
 
124
 
284
 
71
Total revenues
 
12,557
 
11,635
 
12,739
 
8
 
(1)
Credit loss expense / (release)
 
100
 
229
 
106
 
(56)
 
(6)
Personnel expenses
 
7,032
 
6,361
 
6,949
 
11
 
1
General and administrative expenses
 
2,431
 
3,004
 
2,413
 
(19)
 
1
Depreciation, amortization and impairment of non-financial
 
assets
 
861
 
994
 
895
 
(13)
 
(4)
Operating expenses
 
10,324
 
10,359
 
10,257
 
0
 
1
Operating profit / (loss) before tax
 
2,132
 
1,047
 
2,376
 
104
 
(10)
Tax expense / (benefit)
 
 
430
 
268
 
612
 
60
 
(30)
Net profit / (loss)
 
1,702
 
779
 
1,764
 
118
 
(3)
Net profit / (loss) attributable to non-controlling interests
 
10
 
9
 
9
 
18
 
20
Net profit / (loss) attributable to shareholders
 
1,692
 
770
 
1,755
 
120
 
(4)
Comprehensive income
Total comprehensive income
 
3,345
 
(1,878)
 
(245)
Total comprehensive income attributable to non-controlling interests
 
26
 
(27)
 
(5)
Total comprehensive income attributable to shareholders
 
3,319
 
(1,851)
 
(240)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
UBS Group | Group performance
 
8
Selected financial information of the business divisions and Group Items
For the quarter ended 31.3.25
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
 
6,422
 
2,211
 
741
 
3,183
 
284
 
(284)
 
12,557
of which: PPA effects and other integration items
1
 
165
 
241
 
138
 
30
 
574
of which: gain related to an investment in an associate
 
4
 
11
 
14
of which: items related to the Swisscard transactions
2
 
64
 
64
Total revenues (underlying)
 
6,253
 
1,895
 
741
 
3,045
 
284
 
(314)
 
11,904
Credit loss expense / (release)
 
6
 
53
 
0
 
35
 
7
 
(1)
 
100
Operating expenses as reported
 
5,057
 
1,551
 
606
 
2,427
 
669
 
15
 
10,324
of which: integration-related expenses and PPA effects
3
 
355
 
192
 
73
 
112
 
191
 
3
 
927
of which: items related to the Swisscard transactions
4
 
180
 
180
Operating expenses (underlying)
 
4,702
 
1,179
 
533
 
2,314
 
477
 
12
 
9,218
Operating profit / (loss) before tax as reported
 
1,359
 
607
 
135
 
722
 
(391)
 
(299)
 
2,132
Operating profit / (loss) before tax (underlying)
 
1,545
 
663
 
208
 
696
 
(200)
 
(326)
 
2,586
For the quarter ended 31.12.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
 
6,121
 
2,245
 
766
 
2,749
 
(58)
 
(188)
 
11,635
of which: PPA effects and other integration items
1
 
200
 
258
 
202
 
(4)
 
656
of which: loss related to an investment in an associate
 
(21)
 
(59)
 
(80)
Total revenues (underlying)
 
5,942
 
2,047
 
766
 
2,547
 
(58)
 
(184)
 
11,059
Credit loss expense / (release)
 
(14)
 
175
 
0
 
63
 
6
 
0
 
229
Operating expenses as reported
 
5,268
 
1,476
 
639
 
2,207
 
858
 
(88)
 
10,359
of which: integration-related expenses and PPA effects
3
 
460
 
209
 
96
 
174
 
317
 
(1)
 
1,255
of which: items related to the Swisscard transactions
5
 
41
 
41
Operating expenses (underlying)
 
4,808
 
1,226
 
543
 
2,032
 
541
 
(88)
 
9,062
Operating profit / (loss) before tax as reported
 
867
 
595
 
128
 
479
 
(923)
 
(100)
 
1,047
Operating profit / (loss) before tax (underlying)
 
1,147
 
646
 
224
 
452
 
(606)
 
(96)
 
1,768
For the quarter ended 31.3.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
 
6,143
 
2,423
 
776
 
2,751
 
1,001
 
(355)
 
12,739
of which: PPA effects and other integration items
1
 
234
 
256
 
293
 
(4)
 
779
Total revenues (underlying)
 
5,909
 
2,166
 
776
 
2,458
 
1,001
 
(351)
 
11,960
Credit loss expense / (release)
 
(3)
 
44
 
0
 
32
 
36
 
(2)
 
106
Operating expenses as reported
 
5,044
 
1,404
 
665
 
2,164
 
1,011
 
(33)
 
10,257
of which: integration-related expenses and PPA effects
3
 
404
 
160
 
71
 
143
 
242
 
1
 
1,021
Operating expenses (underlying)
 
4,640
 
1,245
 
594
 
2,022
 
769
 
(34)
 
9,236
Operating profit / (loss) before tax as reported
 
1,102
 
975
 
111
 
555
 
(46)
 
(320)
 
2,376
Operating profit / (loss) before tax (underlying)
 
1,272
 
878
 
182
 
404
 
197
 
(315)
 
2,617
1 Includes accretion of PPA adjustments
 
on financial instruments and other PPA
 
effects, as well as temporary
 
and incremental items directly related to the integration.
 
2 Represents the gain related to UBS’s
 
share
of income recorded by Swisscard for the sale of the Credit
 
Suisse card portfolios to UBS.
 
3 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles
resulting from the acquisition of the
 
Credit Suisse Group.
 
4 Represents the expense related to
 
the payment to Swisscard for the
 
sale of the Credit Suisse card
 
portfolios to UBS.
 
5 Represents the termination fee
paid to American Express related to the expected sale in 2025 of our 50% holding in Swisscard.
Integration-related expenses, by business division and Group Items
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Global Wealth Management
 
353
 
458
 
432
Personal & Corporate Banking
 
166
 
183
 
140
Asset Management
 
73
 
96
 
71
Investment Bank
 
112
 
174
 
143
Non-core and Legacy
 
191
 
317
 
242
Group Items
 
(2)
 
6
 
1
Total integration-related expenses
 
894
 
1,233
 
1,029
of which: total revenues
 
(5)
 
6
 
37
of which: operating expenses
 
899
 
1,227
 
992
of which: personnel expenses
 
559
 
599
 
555
of which: general and administrative expenses
 
279
 
484
 
355
of which: depreciation, amortization and impairment of non-financial
 
assets
 
60
 
144
 
82
 
 
UBS Group first quarter 2025 report |
UBS Group | Group performance
 
9
Underlying results
In addition to
 
reporting our
 
results in accordance
 
with IFRS
 
Accounting Standards,
 
we report underlying
 
results that
exclude items of profit or loss that management believes
 
are not representative of the underlying performance.
In
 
the
 
first
 
quarter
 
of
 
2025,
 
underlying
 
revenues
 
exclude
 
purchase
 
price
 
allocation
 
(PPA)
 
effects
 
and
 
other
integration items. PPA
 
effects mainly consist
 
of PPA
 
adjustments on financial
 
instruments measured at
 
amortized
cost, including
 
off-balance sheet
 
positions, arising
 
from the
 
acquisition of
 
the Credit
 
Suisse Group.
 
Accretion of
 
PPA
adjustments on financial
 
instruments is accelerated
 
when the related
 
financial instrument is
 
derecognized before
its contractual maturity. No adjustment is made for accretion of PPA on financial instruments within Non-core and
Legacy, due to the nature of its business model.
 
Underlying revenues also exclude a gain related to an investment
in an associate and items related to the Swisscard
 
transactions.
In
 
the
 
first
 
quarter
 
of
 
2025,
 
underlying
 
expenses
 
exclude
 
integration-related
 
expenses
 
that
 
are
 
temporary,
incremental and directly
 
related to the
 
integration of Credit
 
Suisse into
 
UBS, including costs
 
of internal
 
staff and
contractors
 
substantially
 
dedicated
 
to
 
integration
 
activities,
 
retention
 
awards,
 
redundancy
 
costs,
 
incremental
expenses from
 
the shortening
 
of useful lives
 
of property,
 
equipment and software,
 
and impairment charges
 
relating
to
 
these
 
assets.
 
Classification
 
as
 
integration-related
 
expenses
 
does
 
not
 
affect
 
the
 
timing
 
of
 
recognition
 
and
measurement
 
of
 
those
 
expenses
 
or
 
the
 
presentation
 
thereof
 
in
 
the
 
income
 
statement.
 
Underlying
 
operating
expenses also exclude items related to the
 
Swisscard transactions.
Results: 1Q25 vs 1Q24
Reported operating
 
profit before
 
tax decreased
 
by USD 244m,
 
or 10%,
 
to USD 2,132m,
 
reflecting a
 
decrease in
total
 
revenues
 
and
 
higher
 
operating
 
expenses,
 
partly
 
offset
 
by
 
lower
 
net
 
credit
 
loss
 
expenses.
 
Total
 
revenues
decreased by
 
USD 182m, or
 
1%, to
 
USD 12,557m, and
 
included a
 
decrease of
 
USD 205m in
 
accretion impacts
resulting from
 
PPA adjustments
 
on financial
 
instruments and
 
other integration
 
items. The
 
decrease in total
 
revenues
was driven by USD 556m lower net interest income and other net income from financial instruments measured at
fair
 
value
 
through
 
profit
 
or
 
loss,
 
partly
 
offset
 
by
 
a
 
USD 285m
 
increase
 
in
 
net
 
fee
 
and
 
commission
 
income
 
and
USD 89m higher other income. Operating expenses
 
increased by USD 67m, or 1%, to
 
USD 10,324m and included
a USD 93m decrease in integration-related expenses. The overall
 
increase in operating expenses was mainly driven
by an
 
USD 83m increase in
 
personnel expenses and
 
USD 18m higher general
 
and administrative expenses, partly
offset by a USD 34m decrease
 
in depreciation, amortization and
 
impairment of non-financial assets.
 
Net credit loss
expenses were USD 100m, compared with USD
 
106m in the first quarter of 2024.
Underlying results 1Q25 vs 1Q24
Underlying revenues for the
 
first quarter of 2025
 
excluded PPA effects
 
and other integration
 
items of USD 574m, a
USD 14m gain related to an investment in an associate
 
and a USD 64m gain related to the Swisscard transactions.
Underlying operating expenses
 
excluded USD 927m of
 
integration-related expenses and
 
PPA effects, as
 
well as
 
a
USD 180m expense related to the Swisscard
 
transactions.
On an underlying
 
basis, profit before
 
tax decreased by
 
USD 31m to USD 2,586m,
 
reflecting a USD 56m
 
decrease in
total revenues, partly offset by
 
an USD 18m decrease in
 
operating expenses and a USD 6m
 
decrease in net credit
loss expenses.
 
Total revenues: 1Q25 vs 1Q24
Net interest income and other net income from
 
financial instruments measured at
 
fair value through profit or loss
Total combined net
 
interest income
 
and other
 
net income
 
from financial
 
instruments
 
measured at
 
fair value
 
through
profit or loss decreased by USD 556m to USD 5,567m and included a decrease of USD 111m in accretion impacts
resulting from PPA adjustments on financial instruments and other PPA effects.
 
Global Wealth
 
Management revenues decreased
 
by USD 159m
 
to USD 2,195m, which
 
included USD 98m
 
lower
accretion of PPA
 
adjustments on
 
financial instruments
 
and other PPA
 
effects. Excluding
 
the aforementioned
 
effects,
net interest income decreased,
 
largely driven by a decrease in loan revenues, reflecting
 
lower margins
 
and average
volumes, while a decrease in deposit revenues from lower margins was more than offset by the impact of balance
sheet optimization measures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
UBS Group | Group performance
 
10
Personal
 
&
 
Corporate
 
Banking
 
revenues
 
decreased
 
by
 
USD 276m
 
to
 
USD 1,428m,
 
which
 
included
 
a
 
USD 27m
decrease
 
in
 
accretion
 
of
 
PPA
 
adjustments
 
on
 
financial
 
instruments
 
and
 
other
 
PPA
 
effects.
 
Excluding
 
the
aforementioned effects,
 
net
 
interest
 
income
 
decreased,
 
mainly
 
reflecting
 
lower
 
deposit
 
revenues
 
resulting
 
from
lower market interest rates and higher liquidity
 
and funding costs, partly offset by higher
 
loan revenues.
Investment Bank revenues increased by USD 485m
 
to USD 2,047m, including a USD 20m decrease in accretion of
PPA adjustments on
 
financial instruments and
 
other PPA effects.
 
The overall increase
 
was mainly due to
 
an increase
in Derivatives
 
& Solutions
 
revenues,
 
mostly driven
 
by Equity
 
Derivatives and
 
Foreign Exchange,
 
due to
 
increased
volatility and higher levels of
 
client activity. In addition, there
 
were higher revenues in Financing,
 
mainly driven by
increases in Prime Brokerage,
 
supported by higher client balances.
Non-core and Legacy
 
revenues
 
decreased by USD 737m
 
to USD 171m, mainly
 
due to lower
 
net gains from
 
position
exits and
 
a decrease in
 
net interest income
 
from securitized products
 
and credit
 
products as a
 
result of
 
a smaller
portfolio.
 
Revenues
 
in
 
the
 
first
 
quarter
 
of
 
2024
 
also
 
included
 
a
 
net
 
gain
 
of
 
USD 272m
 
from
 
the
 
conclusion
 
of
agreements with Apollo relating to the former
 
Credit Suisse securitized products group.
Revenues in
 
Group Items
 
were negative
 
USD 269m, compared
 
with negative
 
USD 406m in
 
the first
 
quarter of
 
2024,
and
 
included
 
lower
 
mark-to-market
 
losses
 
from
 
Group
 
hedging
 
and
 
own
 
debt,
 
including
 
hedge
 
accounting
ineffectiveness, within Group
 
Treasury. Revenues in
 
the first quarter
 
of 2025 were
 
driven by mark-to-market
 
effects
on own
 
credit and
 
portfolio-level economic hedges,
 
mainly due
 
to increases
 
in interest
 
rates and
 
cross-currency-
basis widening.
›
Refer to the relevant business division commentary in the “UBS business divisions and Group Items” section of this
report for more information about business-division-specific revenues
›
Refer to “Note 3 Net interest income” in the “Consolidated financial statements” section of this report for more
information about net interest income
 
 
Net interest income and other net income from financial instruments measured at fair value through profit or loss
For the quarter ended
% change from
USD m
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Net interest income from financial instruments measured
 
at amortized cost and fair value through other
comprehensive income
 
33
 
(55)
 
355
 
(91)
Net interest income from financial instruments measured
 
at fair value through profit or loss and other
 
1,597
 
1,893
 
1,585
 
(16)
 
1
Other net income from financial instruments measured
 
at fair value through profit or loss
 
3,937
 
3,144
 
4,182
 
25
 
(6)
Total
 
5,567
 
4,982
 
6,123
 
12
 
(9)
Global Wealth Management
 
2,195
 
2,217
 
2,354
 
(1)
 
(7)
of which: net interest income
 
1,708
 
1,849
 
1,873
 
(8)
 
(9)
of which: transaction-based income from foreign exchange and other
 
intermediary activity
1
 
487
 
368
 
482
 
32
 
1
Personal & Corporate Banking
 
 
1,428
 
1,572
 
1,704
 
(9)
 
(16)
of which: net interest income
 
 
1,239
 
1,362
 
1,508
 
(9)
 
(18)
of which: transaction-based income from foreign exchange and other
 
intermediary activity
1
 
189
 
209
 
196
 
(10)
 
(3)
Asset Management
 
(5)
 
(5)
 
(1)
 
0
 
488
Investment Bank
 
2,047
 
1,555
 
1,562
 
32
 
31
Non-core and Legacy
 
171
 
(153)
 
908
 
(81)
Group Items
 
(269)
 
(202)
 
(406)
 
33
 
(34)
1 Mainly includes spread-related income in connection with client-driven transactions,
 
foreign currency translation effects and income and expenses from
 
precious metals, which are included in the income
 
statement
line Other net income from financial instruments
 
measured at fair value through profit
 
or loss. The amounts
 
reported on this line are one
 
component of Transaction
 
-based income in the management discussion
 
and
analysis in the “Global Wealth Management” and “Personal & Corporate Banking” sections
 
of this report.
Net fee and commission income
Net fee and commission income
 
increased by USD 285m to USD 6,777m and
 
included a decrease of USD 130m
 
in
accretion of PPA adjustments on financial instruments and other PPA effects, which was reflected in other fee and
commission income, predominantly in Global Banking
 
in the Investment Bank.
Investment
 
fund
 
fees
 
increased
 
by
 
USD 286m
 
to
 
USD 1,543m
 
and
 
fees
 
for
 
portfolio
 
management
 
and
 
related
services
 
increased
 
by
 
USD 53m
 
to
 
USD 3,104m,
 
mainly
 
in
 
Global
 
Wealth
 
Management,
 
partly
 
offset
 
by
 
lower
revenues in
 
Asset Management.
 
The increase
 
in Global
 
Wealth Management was
 
mainly due
 
to positive
 
market
performance and net new fee-generating asset inflows.
 
The decrease in Asset Management was largely driven by
margin compression, negative
 
foreign currency
 
effects and the
 
impact of exits
 
from non-strategic
 
businesses, partly
offset by positive market performance.
 
Net brokerage fees increased
 
by USD 216m to USD 1,280m,
 
due to higher levels of
 
client activity across all regions
in Global Wealth
 
Management,
 
and in Cash
 
Equities in Execution
 
Services in the
 
Investment Bank, due
 
to higher
volumes.
›
Refer to “Note 4 Net fee and commission income” in the “Consolidated financial statements” section of this report
for more information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
UBS Group | Group performance
 
11
Other income
Other
 
income
 
was
 
USD 213m,
 
compared
 
with
 
USD 124m
 
in
 
the
 
first
 
quarter
 
of
 
2024.
 
Revenues
 
included
 
a
USD 97m gain in Non-core and Legacy related
 
to the sale of Select Portfolio Servicing,
 
the US mortgage servicing
business
 
of
 
Credit
 
Suisse,
 
and
 
a
 
USD 64m
 
gain
 
in
 
Personal
 
&
 
Corporate
 
Banking
 
related
 
to
 
the
 
Swisscard
transactions.
 
In addition,
 
there were losses
 
of USD 36m
 
recognized on repurchases
 
of UBS’s own
 
debt instruments,
compared with
 
gains of
 
USD 22m in
 
the first
 
quarter of
 
2024. The
 
first quarter
 
of 2025
 
also included
 
USD 33m
higher
 
losses
 
relating
 
to
 
insurance
 
and
 
similar
 
contracts,
 
mainly
 
driven
 
by
 
a
 
loss
 
from
 
an
 
exit
 
from
 
longevity
positions.
›
Refer to “Note 5 Other income” in the “Consolidated financial statements” section of this report for more
information
›
Refer to the “Recent developments” section and “Personal & Corporate Banking” and “Non-core and Legacy”
 
in the
“UBS business divisions and Group Items” section of this report for more information about Select Portfolio
Servicing and the Swisscard transactions
Credit loss expense / release: 1Q25 vs
 
1Q24
Total net
 
credit loss
 
expenses
 
in the
 
first quarter
 
of 2025
 
were USD 100m,
 
reflecting net
 
releases of
 
USD 21m
 
related
to performing positions
 
and net expenses
 
of USD 121m on
 
credit-impaired positions.
 
Net credit loss expenses
 
were
USD 106m in the first quarter of 2024.
›
Refer to “Note 8 Expected credit loss measurement” in the “Consolidated financial statements” section of this
report for more information
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Purchased
 
Total
For the quarter ended 31.3.25
Global Wealth Management
 
(7)
 
13
 
(1)
 
6
Personal & Corporate Banking
 
(8)
 
61
 
0
 
53
Asset Management
 
0
 
0
 
0
 
0
Investment Bank
 
(5)
 
40
 
0
 
35
Non-core and Legacy
 
0
 
(1)
 
8
 
7
Group Items
 
(1)
 
0
 
0
 
(1)
Total
 
(21)
 
113
 
8
 
100
For the quarter ended 31.12.24
Global Wealth Management
 
(26)
 
12
 
0
 
(14)
Personal & Corporate Banking
 
(24)
 
199
 
0
 
175
Asset Management
 
0
 
0
 
0
 
0
Investment Bank
 
32
 
31
 
0
 
63
Non-core and Legacy
 
(2)
 
5
 
3
 
6
Group Items
 
(1)
 
0
 
0
 
0
Total
 
(21)
 
247
 
3
 
229
For the quarter ended 31.3.24
Global Wealth Management
 
(12)
 
7
 
2
 
(3)
Personal & Corporate Banking
 
(13)
 
64
 
(7)
 
44
Asset Management
 
0
 
0
 
0
 
0
Investment Bank
 
7
 
26
 
(1)
 
32
Non-core and Legacy
 
(26)
 
37
 
25
 
36
Group Items
 
(2)
 
0
 
0
 
(2)
Total
 
(45)
 
133
 
18
 
106
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
UBS Group | Group performance
 
12
Operating expenses: 1Q25 vs 1Q24
Operating expenses
For the quarter ended
% change from
USD m
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Personnel expenses
 
 
7,032
 
6,361
 
6,949
 
11
 
1
of which: salaries and variable compensation
 
5,968
 
5,321
 
5,863
 
12
 
2
of which: variable compensation – financial advisors
1
 
1,409
 
1,400
 
1,267
 
1
 
11
General and administrative expenses
 
 
2,431
 
3,004
 
2,413
 
(19)
 
1
of which: net expenses for litigation, regulatory and similar
 
matters
 
114
 
99
 
(5)
 
15
Depreciation, amortization and impairment of non-financial
 
assets
 
861
 
994
 
895
 
(13)
 
(4)
Total operating expenses
 
10,324
 
10,359
 
10,257
 
0
 
1
1 Financial advisor compensation consists of cash
 
compensation, determined using a formulaic
 
approach based on production, and
 
deferred awards. It also
 
includes expenses related to compensation commitments
with financial advisors entered into at the time of recruitment that are subject to vesting requirements.
Personnel expenses
Personnel expenses increased by
 
USD 83m to USD 7,032m, mainly
 
as a result
 
of higher accruals for
 
performance
awards and a USD 142m increase in financial
 
advisor compensation resulting from higher compensable revenues.
This was partly offset by a decrease in salary expenses, reflecting the
 
impact of a smaller workforce.
›
Refer to “Note 6 Personnel expenses” in the “Consolidated financial statements” section of this report for more
information
General and administrative expenses
General and administrative expenses increased by USD 18m
 
to USD 2,431m, mainly due to a
 
USD 180m expense
related to the Swisscard transactions
 
in Personal & Corporate
 
Banking, as well as
 
USD 119m higher in expenses
 
for
litigation, regulatory
 
and similar
 
matters.
 
These increases
 
were mainly
 
offset by
 
a decrease
 
of USD 97m
 
in consulting
fees, primarily driven by
 
a reduction in integration-related
 
expenses. In addition, there
 
were decreases of USD 50m
in real estate and logistics costs, USD 45m in outsourcing costs, and
 
USD 31m in market data services.
 
›
Refer to the “Recent developments” section and “Personal & Corporate Banking” in the “UBS business divisions and
Group Items” section of this report for more information about the Swisscard transactions
›
Refer to “Note 7 General and administrative expenses” in the “Consolidated financial statements” section of this
report for more information
›
Refer to “Note 14 Provisions and contingent liabilities” in the “Consolidated financial statements” section of this
report for more information about litigation, regulatory and similar matters
›
Refer to the “Regulatory and legal developments” and “Risk factors” sections of the UBS Group Annual Report
2024, available under “Annual reporting” at
ubs.com/investors
, for more information about litigation, regulatory
and similar matters
 
Depreciation, amortization and impairment of
 
non-financial assets
Depreciation, amortization and
 
impairment of
 
non-financial assets
 
decreased by
 
USD 34m to
 
USD 861m, mainly
due to
 
a USD 58m decrease
 
associated with
 
real estate
 
leases, driven
 
by lower
 
integration-related expenses as
 
a
result of
 
higher levels
 
of accelerated
 
depreciation in
 
the first
 
quarter of
 
2024. This
 
decrease was
 
partly offset
 
by
USD 35m
 
higher
 
amortization
 
of
 
internally generated
 
capitalized
 
software,
 
as
 
a
 
result
 
of
 
a
 
higher
 
cost
 
base
 
of
software assets.
Tax: 1Q25 vs 1Q24
The Group had a
 
net income tax expense
 
of USD 430m
 
in the first quarter
 
of 2025, representing an
 
effective tax
rate of 20.2%, compared with USD 612m
 
in the first quarter of 2024 and an effective
 
tax rate of 25.8%.
The current tax expense was USD 460m, which includes USD 329m that
 
primarily related to the taxable profits of
UBS Switzerland AG and other entities and USD 131m that related to US corporate alternative
 
minimum tax, with
an equivalent
 
net deferred
 
tax benefit
 
for deferred
 
tax assets
 
(DTAs) recognized
 
in respect
 
of tax
 
credits carried
forward.
There
 
was
 
a
 
net
 
deferred
 
tax
 
benefit
 
of
 
USD 30m.
 
This
 
reflects
 
the
 
aforementioned
 
deferred
 
tax
 
benefit
 
of
USD 131m and
 
a benefit
 
of USD 39m
 
in respect
 
of the
 
tax deduction
 
for deferred
 
compensation awards. These
benefits were partly offset by
 
a net deferred tax
 
expense of USD 140m that mainly related
 
to the amortization of
DTAs previously recognized in relation to tax
 
losses carried forward and deductible
 
temporary differences.
We expect that the effective tax rate for the
 
UBS Group for the remaining nine months of
 
2025 will be materially
less than the structural rate of 23% due to
 
projected tax planning benefits.
 
 
UBS Group first quarter 2025 report |
UBS Group | Group performance
 
13
Total comprehensive income attributable
 
to shareholders
In the first quarter of 2025, total
 
comprehensive income attributable to shareholders was USD 3,319m, reflecting
a net profit of USD 1,692m and other comprehensive income
 
(OCI), net of tax, of USD 1,628m.
Foreign currency translation OCI was USD 768m, mainly resulting from the US dollar weakening against the Swiss
franc and the euro.
OCI
 
related
 
to
 
cash
 
flow
 
hedges
 
was
 
USD 545m,
 
mainly
 
reflecting
 
net
 
unrealized
 
gains
 
on
 
US
 
dollar
 
hedging
derivatives resulting
 
from decreases
 
in the
 
relevant US
 
dollar long-term
 
interest rates
 
and net
 
losses on
 
hedging
instruments that were reclassified from OCI
 
to the income statement.
OCI related to
 
own credit
 
on financial
 
liabilities designated
 
at fair value
 
was USD 279m,
 
primarily due
 
to a widening
of our own credit spreads.
›
Refer to “Statement of comprehensive income” in the “Consolidated financial statements” section of this report for
more information
›
Refer to “Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital” in
the “Capital management” section of this report for more information about the effects of OCI on common equity
tier 1 capital
›
Refer to “Note 21 Fair value measurement” in the “Consolidated financial statements” section of the UBS Group
Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information about own
credit on financial liabilities designated at fair value
Sensitivity to interest rate movements
As
 
of
 
31 March
 
2025,
 
it
 
is
 
estimated
 
that
 
a
 
parallel
 
shift
 
in
 
yield
 
curves
 
by
 
+100
 
basis
 
points
 
could
 
lead
 
to
 
a
combined increase in
 
annual net interest
 
income from our
 
banking book of
 
approximately USD 1.5bn in
 
the first
year after
 
such a
 
shift. Of
 
this increase,
 
approximately USD 0.9bn, USD 0.4bn
 
and USD 0.1bn
 
would result
 
from
changes in Swiss franc, US dollar and euro
 
interest rates, respectively.
A parallel shift in yield
 
curves by –100 basis points
 
could lead to a combined
 
increase in annual net
 
interest income
of approximately
USD 0.4bn. Of
 
this increase,
 
approximately USD 1.0bn
 
would result
 
from changes
 
in the
 
Swiss
franc interest
 
rate, driven
 
by both
 
contractual and
 
assumed flooring
 
benefits under
 
negative interest
 
rates. US
 
dollar
and euro interest rate changes
 
would lead to an offsetting decrease of USD
 
0.4bn and USD 0.1bn, respectively.
These estimates do not represent net interest income forecasts, as they are based
 
on a hypothetical scenario of an
immediate change in interest rates,
 
equal across all currencies and
 
relative to implied forward rates as
 
of 31 March
2025 applied to our banking
 
book. These estimates further assume no
 
change to balance sheet size
 
and product
mix, stable foreign exchange rates, and no specific
 
management action.
›
Refer to the “Risk management and control” section of this report for information about interest rate risk in the
banking book
Key figures and personnel
Below is
 
an overview
 
of selected
 
key figures
 
of the
 
Group. For
 
further information
 
about key
 
figures related
 
to
capital management, refer to the “Capital management”
 
section of this report.
 
Cost / income ratio: 1Q25 vs 1Q24
The cost / income
 
ratio was
 
82.2%, compared
 
with 80.5%,
 
as a
 
result of lower
 
total revenues
 
and higher
 
operating
expenses. On an underlying
 
basis the cost / income ratio
 
was 77.4%, compared with
 
77.2%, reflecting lower total
revenues,
 
partly offset by lower operating expenses.
Personnel: 1Q25 vs 4Q24
The
 
number
 
of
 
internal
 
and
 
external
 
personnel
 
employed
 
was
 
approximately
 
126,077
 
(workforce
 
count)
 
as
 
of
31 March 2025,
 
a net
 
decrease of
 
2,906 compared
 
with 31 December
 
2024. The
 
number of
 
internal personnel
employed
 
as
 
of
 
31 March
 
2025
 
was
 
106,789
 
(full-time
 
equivalents),
 
a
 
net
 
decrease
 
of
 
1,859
 
compared
 
with
31 December 2024.
 
The
 
number of
 
external staff
 
was
 
approximately
 
19,287 (workforce
 
count) as
 
of 31 March
2025, a net decrease of approximately 1,048 compared with 31
 
December 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
UBS Group | Group performance
 
14
Equity, CET1 capital and returns
As of or for the quarter ended
USD m, except where indicated
31.3.25
31.12.24
31.3.24
1
Net profit
Net profit / (loss) attributable to shareholders
 
1,692
 
770
 
1,755
Equity
 
Equity attributable to shareholders
 
87,185
 
85,079
 
84,777
less: goodwill and intangible assets
 
6,909
 
6,887
 
7,384
Tangible equity attributable to shareholders
 
80,276
 
78,192
 
77,393
less: other CET1 adjustments
 
11,123
 
6,825
 
(270)
CET1 capital
 
69,152
 
71,367
 
77,663
Returns
Return on equity (%)
 
7.9
 
3.6
 
8.2
Return on tangible equity (%)
 
8.5
 
3.9
 
9.0
Underlying return on tangible equity (%)
2
 
10.0
 
6.6
 
9.9
Return on CET1 capital (%)
 
9.6
 
4.2
 
9.0
Underlying return on CET1 capital (%)
2
 
11.3
 
7.2
 
9.9
1 Comparative-period information has been revised.
 
Refer to “Note 2 Accounting for the acquisition
 
of the Credit Suisse Group” in the
 
“Consolidated financial statements” section of the
 
UBS Group Annual Report
2024, available under “Annual reporting”
 
at ubs.com/investors, for more information
 
about the relevant adjustments.
 
2 In the second quarter of 2024, comparative-period
 
information for the first quarter of 2024
has been restated to reflect the updated underlying tax impact.
Common equity tier 1 capital: 1Q25 vs 4Q24
During the first quarter of 2025,
 
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.
Return on common equity tier 1 capital: 1Q25
 
vs 1Q24
The annualized
 
return on
 
CET1 capital
 
was 9.6%,
 
compared with 9.0%.
 
On an underlying
 
basis the return
 
on CET1
capital was 11.3%,
 
compared with
 
9.9%. These
 
increases were driven
 
by a decrease
 
in average
 
CET1 capital,
 
partly
offset by a decrease in net profit attributable to shareholders.
Risk-weighted assets: 1Q25 vs 4Q24
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.
 
Common equity tier 1 capital ratio: 1Q25 vs 4Q24
Our CET1 capital
 
ratio was broadly
 
unchanged at 14.3%,
 
reflecting a USD 2.2bn
 
decrease in CET1 capital
 
offset by
a USD 15.3bn decrease in RWA.
Leverage ratio denominator: 1Q25 vs 4Q24
The leverage
 
ratio denominator
 
(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.
Common equity tier 1 leverage ratio: 1Q25
 
vs 4Q24
Our CET1
 
leverage ratio
 
decreased to
 
4.4% from
 
4.7%, reflecting
 
a USD 2.2bn
 
decrease in
 
CET1 capital
 
and a
USD 42.1bn increase in the LRD.
 
 
 
UBS Group first quarter 2025 report |
UBS Group | Group performance
 
15
Outlook
Rapid
 
and
 
significant
 
changes
 
to
 
trade
 
tariffs,
 
heightened
 
risk
 
of
 
escalation
 
and
 
significantly
 
increased
macroeconomic uncertainty
 
led
 
to
 
major
 
market volatility
 
in
 
the first
 
weeks of
 
April.
 
We actively
 
engaged
 
with
institutional and private
 
clients, helping them navigate
 
the uncertain environment with
 
advice on how
 
to protect
their assets and by facilitating their trading activity
 
across asset classes.
With a wide range of possible outcomes, the economic
 
path forward is particularly unpredictable. The prospect
 
of
higher
 
tariffs
 
on
 
global
 
trade
 
presents a
 
material
 
risk
 
to
 
global
 
growth and
 
inflation,
 
clouding
 
the
 
interest rate
outlook. Markets are likely
 
to remain sensitive to
 
new developments, both positive
 
and negative, which are
 
likely
to
 
lead
 
to
 
further
 
spikes
 
in
 
volatility.
 
Prolonged
 
uncertainty
 
would
 
affect
 
sentiment
 
and
 
cause
 
businesses
 
and
investors to delay important decisions on strategy,
 
capital allocation and investments.
In the second quarter we expect net interest
 
income (NII) in Global Wealth Management
 
to decline sequentially by
a low-single-digit percentage,
 
and we see a similar
 
decline in Personal
 
& Corporate Banking’s NII
 
in Swiss francs. In
US
 
dollar
 
terms,
 
Personal
 
&
 
Corporate
 
Banking’s
 
NII
 
is
 
expected
 
to
 
increase
 
sequentially
 
by
 
a
 
mid-single-digit
percentage, based
 
on
 
current foreign
 
exchange rates.
 
Continued market
 
uncertainty could
 
affect the
 
timing of
execution of our
 
Global Banking pipeline. As
 
a consequence of
 
tax planning measures related
 
to the integration,
we expect
 
our effective
 
tax rate
 
in the
 
second quarter
 
to be
 
around zero.
 
Pull-to-par revenues
1
 
are expected
 
to
reach USD 0.6bn, partially mitigating the expected
 
USD 1.1bn in integration-related expenses.
Despite this uncertain
 
environment we are
 
confident in our
 
ability to deliver on
 
our financial targets,
 
leveraging the
power of our diversified
 
business model. We remain focused
 
on serving our clients, executing
 
on integration and
acting as an engine of economic growth
 
in the communities we serve.
1
 
Pull-to-par revenues – revenues recognized when fair value reductions
 
taken on financial instruments acquired as part
 
of the Credit Suisse transaction through
 
the required purchase price allocation (PPA)
 
unwind as
the instruments approach their maturity.
 
 
UBS Group first quarter 2025 report |
UBS business divisions and Group Items
 
16
UBS business divisions and
Group Items
Management report
Our businesses
We report
 
five business
 
divisions, each
 
of which
 
qualifies as
 
an operating
 
segment pursuant
 
to IFRS
 
Accounting
Standards: Global Wealth Management,
 
Personal & Corporate Banking,
 
Asset Management, the Investment
 
Bank,
and Non-core and Legacy. Non-core and Legacy consists of positions and businesses not aligned with our strategy
and policies.
Our Group
 
functions are
 
support and
 
control functions
 
that provide
 
services to
 
the Group.
 
Virtually all
 
costs incurred
by our Group functions are
 
allocated to the business divisions,
 
leaving a residual amount that
 
we refer to as Group
Items in our segment reporting.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
 
Global Wealth Management
 
17
Global Wealth Management
Global Wealth Management
As of or for the quarter ended
% change from
USD m, except where indicated
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Results
Net interest income
 
1,708
 
1,849
 
1,873
 
(8)
 
(9)
Recurring net fee income
1
 
3,279
 
3,262
 
3,024
 
1
 
8
Transaction-based income
1
 
1,427
 
1,041
 
1,212
 
37
 
18
Other income
 
8
 
(32)
 
33
 
(77)
Total revenues
 
6,422
 
6,121
 
6,143
 
5
 
5
Credit loss expense / (release)
 
6
 
(14)
 
(3)
Operating expenses
 
5,057
 
5,268
 
5,044
 
(4)
 
0
Business division operating profit / (loss) before tax
 
1,359
 
867
 
1,102
 
57
 
23
Underlying results
Total revenues as reported
 
6,422
 
6,121
 
6,143
 
5
 
5
of which: PPA effects and other integration items
2
 
165
 
200
 
234
 
(17)
 
(29)
of which: PPA effects recognized in net interest income
 
159
 
192
 
257
 
(17)
 
(38)
of which: PPA effects and other integration items recognized in transaction-based income
 
6
 
8
 
(24)
 
(21)
of which: gain / (loss) related to an investment in an associate
 
4
 
(21)
Total revenues (underlying)
1
 
6,253
 
5,942
 
5,909
 
5
 
6
Credit loss expense / (release)
 
6
 
(14)
 
(3)
Operating expenses as reported
 
5,057
 
5,268
 
5,044
 
(4)
 
0
of which: integration-related expenses and PPA effects
1,3
 
355
 
460
 
404
 
(23)
 
(12)
Operating expenses (underlying)
1
 
4,702
 
4,808
 
4,640
 
(2)
 
1
of which: expenses for litigation, regulatory and similar matters
 
14
 
100
 
12
 
(86)
 
22
Business division operating profit / (loss) before tax as reported
 
1,359
 
867
 
1,102
 
57
 
23
Business division operating profit / (loss) before tax (underlying)
1
 
1,545
 
1,147
 
1,272
 
35
 
21
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
 
23.4
 
209.8
 
(9.1)
Cost / income ratio (%)
1
 
78.8
 
86.1
 
82.1
Average attributed equity (USD bn)
4
 
33.6
 
33.6
 
33.1
 
0
 
2
Return on attributed equity (%)
1,4
 
16.2
 
10.3
 
13.3
Financial advisor compensation
5
 
1,409
 
1,400
 
1,267
 
1
 
11
Net new fee-generating assets (USD bn)
1
 
27.2
 
13.3
 
17.6
Fee-generating assets (USD bn)
1
 
1,847
 
1,816
 
1,731
 
2
 
7
Net new assets (USD bn)
1
 
31.5
 
17.7
 
27.4
Net new assets growth rate (%)
1
 
3.0
 
1.7
 
2.8
Invested assets (USD bn)
1
 
4,218
 
4,182
 
4,023
 
1
 
5
Net new loans (USD bn)
1
 
2.2
 
(0.8)
 
(6.6)
Loans, gross (USD bn)
6
 
300.1
 
300.5
 
306.3
 
0
 
(2)
Net new deposits (USD bn)
1
 
(9.3)
 
2.7
 
8.0
Customer deposits (USD bn)
6
 
464.4
 
470.1
 
482.4
 
(1)
 
(4)
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,7
 
0.4
 
0.4
 
0.3
Advisors (full-time equivalents)
 
9,693
 
9,803
 
10,338
 
(1)
 
(6)
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
 
21.5
 
84.0
 
5.0
Cost / income ratio (%)
1
 
75.2
 
80.9
 
78.5
Return on attributed equity (%)
1,4
 
18.4
 
13.6
 
15.4
1 Refer to “Alternative
 
performance measures” in the appendix to
 
this report for the definition and
 
calculation method.
 
2 Includes accretion of PPA
 
adjustments on financial instruments and other
 
PPA effects,
 
as
well as temporary and incremental items
 
directly related to the integration.
 
3 Includes temporary, incremental
 
operating expenses directly related to the
 
integration, as well as amortization of
 
intangibles resulting
from the acquisition of the Credit Suisse Group.
 
4 Refer to the “Equity attribution” section of this report for more
 
information about the equity attribution framework.
 
5 Relates to licensed professionals with the
ability to provide investment
 
advice to clients in
 
the Americas. Consists
 
of cash compensation, determined
 
using a formulaic approach
 
based on production,
 
and deferred awards.
 
Also includes expenses related
 
to
compensation commitments with financial
 
advisors entered into at
 
the time of recruitment that
 
are subject to vesting
 
requirements. Recruitment loans
 
to financial advisors were
 
USD 2,738m as of 31 March
 
2025.
 
6 Loans and Customer deposits in this
 
table include customer brokerage receivables and payables, respectively, which are presented in separate reporting lines on
 
the balance sheet.
 
7 Refer to the “Risk management
and control” section of this report for more information about (credit-)impaired exposures. Excludes loans to financial advisors.
Results: 1Q25 vs 1Q24
Profit
 
before
 
tax increased
 
by
 
USD 257m, or
 
23%, to
 
USD 1,359m, mainly
 
due to
 
higher total
 
revenues, partly
offset
 
by
 
higher
 
operating expenses.
 
Underlying
 
profit
 
before
 
tax
 
was
 
USD 1,545m,
 
an
 
increase
 
of
 
21%,
 
after
excluding from operating expenses USD 355m of integration-related expenses and
 
purchase price allocation (PPA)
effects and also
 
excluding from total
 
revenues USD 165m of
 
PPA effects and other integration
 
items and a
 
USD 4m
gain related to an investment in an associate.
 
 
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
 
Global Wealth Management
 
18
Total revenues
Total
 
revenues increased by USD 279m, or 5%, to USD 6,422m, largely driven by higher recurring net fee income
and transaction-based
 
income,
 
partly offset by
 
lower net
 
interest income, and
 
included a USD
 
69m
 
decrease in PPA
effects and other integration
 
items. Excluding USD 165m
 
of PPA effects and other integration
 
items and a USD 4m
gain related to an investment in an associate,
 
underlying total revenues were USD 6,253m, an increase of 6%.
Net
 
interest
 
income
 
decreased
 
by
 
USD 165m,
 
or
 
9%,
 
to
 
USD 1,708m,
 
and
 
included
 
a
 
USD 98m
 
decrease
 
in
accretion of PPA
 
adjustments on financial
 
instruments and other
 
PPA effects.
 
The remaining variance
 
was largely
driven by lower loan revenues, reflecting
 
lower margins and average volumes, while
 
lower deposit revenues from
lower margins
 
were more
 
than offset
 
by the
 
impact of
 
balance sheet
 
optimization measures.
 
The decrease
 
also
included a
 
change to
 
our segmentation
 
approach that
 
was implemented
 
in February
 
2025 and
 
led to
 
a shift
 
of
some affluent clients
 
to Personal & Corporate
 
Banking. Excluding PPA
 
effects of USD 159m,
 
underlying net interest
income was USD 1,549m, a decrease of 4%.
 
Recurring
 
net
 
fee
 
income
 
increased
 
by
 
USD 255m,
 
or
 
8%,
 
to
 
USD 3,279m,
 
mainly
 
driven
 
by
 
positive
 
market
performance and net new fee-generating asset
 
inflows.
Transaction-based income
 
increased by
 
USD 215m, or
 
18%, to
 
USD 1,427m, mainly
 
driven by
 
higher levels
 
of client
activity across
 
all regions.
 
Excluding PPA
 
effects of
 
USD 6m, underlying
 
transaction-based income
 
was USD 1,421m,
an increase of 15%.
Other income decreased
 
by USD 25m to
 
USD 8m and included
 
a gain
 
of USD 4m related
 
to an investment
 
in an
associate. Excluding the aforementioned gain,
 
underlying other income was USD 4m,
 
a decrease of 88%.
Credit loss expense / release
Net credit
 
loss expenses
 
were USD 6m,
 
compared with
 
net credit
 
loss releases
 
of USD 3m
 
in the
 
first quarter
 
of
2024.
Operating expenses
Operating
 
expenses
 
increased
 
by
 
USD 13m
 
to
 
USD 5,057m,
 
mainly
 
driven
 
by
 
an
 
increase
 
in
 
financial
 
advisor
compensation as
 
a result
 
of higher
 
compensable revenues,
 
almost entirely
 
offset by
 
lower technology
 
expenses,
risk management
 
costs and
 
real estate
 
costs, and
 
included a
 
USD 49m decrease
 
in integration-related
 
expenses.
Excluding
 
USD 355m
 
of
 
integration-related
 
expenses
 
and
 
PPA
 
effects,
 
underlying
 
operating
 
expenses
 
were
USD 4,702m, an increase of 1%.
 
Invested assets: 1Q25 vs 4Q24
Invested
 
assets
 
increased
 
by
 
USD 36bn
 
to
 
USD 4,218bn,
 
mainly
 
driven
 
by
 
positive
 
foreign
 
currency
 
effects
 
of
USD 36.1bn
 
and
 
net
 
new
 
asset
 
inflows
 
of
 
USD 31.5bn,
 
partly
 
offset
 
by
 
negative
 
market
 
performance
 
of
USD 24.6bn.
Loans: 1Q25 vs 4Q24
Loans
 
were
 
broadly
 
stable
 
at
 
USD 300.1bn,
 
as
 
positive
 
foreign
 
currency
 
effects
 
and
 
positive
 
net
 
new
 
loans
 
of
USD 2.2bn were more than offset by the effect from the aforementioned shift
 
of some affluent clients to Personal
& Corporate Banking.
›
Refer to the “Risk management and control” section of this report for more information
Customer deposits: 1Q25 vs 4Q24
Customer
 
deposits
 
decreased
 
by
 
USD 5.7bn
 
to
 
USD 464.4bn,
 
mainly
 
driven
 
by
 
net
 
new
 
deposit
 
outflows
 
of
USD 9.3bn, partly offset by positive foreign currency effects.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
 
Global Wealth Management
 
19
Regional breakdown of performance measures
As of or for the quarter ended 31.3.25
USD m, except where indicated
Americas
1
Asia Pacific
EMEA
Switzerland
Divisional items
2
Global Wealth
Management
Net interest income
 
513
 
311
 
372
 
345
 
167
 
1,708
Recurring net fee income
3
 
2,022
 
276
 
535
 
432
 
14
 
3,279
Transaction-based income
3
 
460
 
455
 
272
 
255
 
(15)
 
1,427
Other income
 
8
 
(7)
 
(2)
 
(1)
 
9
 
8
Total revenues
 
3,003
 
1,034
 
1,177
 
1,031
 
177
 
6,422
Credit loss expense / (release)
 
16
 
3
 
0
 
(14)
 
0
 
6
Operating expenses
 
2,630
 
604
 
824
 
641
 
359
 
5,057
Operating profit / (loss) before tax
 
357
 
428
 
354
 
403
 
(183)
 
1,359
of which: PPA effects, integration-related items and other items
4
 
(186)
 
(186)
Cost / income ratio (%)
3
 
87.6
 
58.4
 
70.0
 
62.2
 
78.8
Net new fee-generating assets (USD bn)
3
 
10.2
 
4.4
 
8.7
 
4.1
 
(0.1)
 
27.2
Fee-generating assets (USD bn)
3
 
1,058
 
178
 
382
 
228
 
1
 
1,847
Net new assets (USD bn)
3
 
20.2
 
7.5
 
1.4
 
3.6
 
(1.1)
 
31.5
Net new assets growth rate (%)
3
 
3.8
 
4.5
 
0.8
 
1.9
 
3.0
Invested assets (USD bn)
3
 
2,082
 
689
 
670
 
773
 
4
 
4,218
Net new loans (USD bn)
3
 
0.9
 
1.3
 
0.3
 
(0.2)
 
0.0
 
2.2
Loans, gross (USD bn)
 
98.7
5
 
43.4
 
60.0
 
97.0
 
1.0
 
300.1
Net new deposits (USD bn)
3
 
(2.7)
 
(7.0)
 
(1.6)
 
1.9
 
0.1
 
(9.3)
Customer deposits (USD bn)
 
113.6
5
 
119.2
 
111.8
 
117.5
 
2.3
 
464.4
Advisors (full-time equivalents)
 
5,884
 
922
 
1,530
 
1,277
 
81
 
9,693
As of or for the quarter ended 31.3.24
USD m, except where indicated
Americas
1
Asia Pacific
EMEA
Switzerland
Divisional items
2
Global Wealth
Management
Net interest income
 
488
 
325
 
421
 
391
 
248
 
1,873
Recurring net fee income
3
 
1,827
 
252
 
513
 
419
 
14
 
3,024
Transaction-based income
3
 
397
 
356
 
265
 
225
 
(31)
 
1,212
Other income
 
15
 
15
 
(1)
 
(2)
 
6
 
33
Total revenues
 
2,727
 
948
 
1,198
 
1,033
 
236
 
6,143
Credit loss expense / (release)
 
8
 
(3)
 
(5)
 
(2)
 
0
 
(3)
Operating expenses
 
2,467
 
636
 
872
 
659
 
411
 
5,044
Operating profit / (loss) before tax
 
252
 
315
 
331
 
377
 
(174)
 
1,102
of which: PPA effects, integration-related items and other items
4
 
(170)
 
(170)
Cost / income ratio (%)
3
 
90.5
 
67.1
 
72.8
 
63.7
 
82.1
Net new fee-generating assets (USD bn)
3
 
12.9
 
2.3
 
2.0
 
0.5
 
(0.1)
 
17.6
Fee-generating assets (USD bn)
3
 
990
 
155
 
371
 
213
 
1
 
1,731
Net new assets (USD bn)
3
 
13.7
 
6.4
 
(0.2)
 
7.7
 
(0.2)
 
27.4
Net new assets growth rate (%)
3
 
2.9
 
3.9
 
(0.1)
 
4.2
 
2.8
Invested assets (USD bn)
3
 
1,979
 
641
 
662
 
736
 
5
 
4,023
Net new loans (USD bn)
3
 
(1.8)
 
(1.4)
 
(2.2)
 
(1.1)
 
(0.1)
 
(6.6)
Loans, gross (USD bn)
 
95.7
5
 
43.5
 
59.1
 
107.2
 
0.8
 
306.3
Net new deposits (USD bn)
3
 
(1.4)
 
3.0
 
2.5
 
4.0
 
(0.1)
 
8.0
Customer deposits (USD bn)
 
109.1
5
 
128.3
 
119.7
 
122.9
 
2.5
 
482.4
Advisors (full-time equivalents)
 
6,079
 
1,064
 
1,704
 
1,402
 
89
 
10,338
1 Including the following business
 
units: United States and Canada;
 
and Latin America.
 
2 Includes impacts from accretion of
 
purchase price allocation adjustments on
 
financial instruments and other PPA
 
effects,
integration-related expenses,
 
certain gains and
 
losses from investments
 
in associates and
 
minor functions,
 
which are not
 
included in the
 
four regions individually
 
presented in this
 
table.
 
3 Refer to
 
“Alternative
performance measures” in the
 
appendix to this report
 
for the definition and
 
calculation method.
 
4 Items of profit
 
or loss that management
 
believes are not representative
 
of the underlying performance,
 
namely
impacts from accretion of
 
purchase price allocation
 
adjustments on financial instruments
 
and other PPA
 
effects, integration-related expenses,
 
amortization of intangibles resulting
 
from the acquisition of
 
the Credit
Suisse Group, and certain
 
gains and losses from investments
 
in associates.
 
5 Loans and Customer
 
deposits in this table
 
include customer brokerage
 
receivables and payables,
 
respectively, which are
 
presented in
separate reporting lines on the balance sheet.
Regional comments 1Q25 vs 1Q24, except where
 
indicated
 
Americas
Profit
 
before
 
tax
 
increased
 
by
 
USD 105m
 
to
 
USD 357m.
 
Total
 
revenues
 
increased
 
by
 
USD 276m,
 
or
 
10%,
 
to
USD 3,003m, mainly driven
 
by increases
 
of USD 195m in
 
recurring net
 
fee income
 
and USD 63m
 
in transaction-
based
 
income.
 
Operating
 
expenses
 
increased
 
by
 
USD 163m,
 
or
 
7%,
 
to
 
USD 2,630m.
 
The
 
cost / income
 
ratio
decreased
 
to
 
87.6%
 
from
 
90.5%.
 
Loans
 
increased
 
by
 
1%
 
compared
 
with
 
the
 
fourth
 
quarter
 
of
 
2024,
 
to
USD 98.7bn, mainly
 
driven by
 
positive net
 
new loans
 
of USD 0.9bn.
 
Customer deposits
 
decreased by
 
2% compared
with the fourth
 
quarter of 2024,
 
to USD 113.6bn, mainly driven
 
by net new
 
deposit outflows of USD 2.7bn.
 
Net
new asset inflows were USD 20.2bn.
 
 
 
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
 
Global Wealth Management
 
20
Asia Pacific
Profit
 
before
 
tax
 
increased
 
by
 
USD 113m
 
to
 
USD 428m.
 
Total
 
revenues
 
increased
 
by
 
USD 86m,
 
or
 
9%,
 
to
USD 1,034m, mainly driven by
 
increases of USD 99m
 
in transaction-based income and
 
USD 24m in recurring
 
net
fee income, offset by a decrease of
 
USD 14m in net interest income. Operating expenses decreased by USD 32m,
or 5%, to USD 604m.
 
The cost / income ratio decreased
 
to 58.4% from 67.1%. Loans
 
increased by 4% compared
with the fourth quarter of 2024, to USD 43.4bn, mainly driven
 
by positive net new loans of USD 1.3bn. Customer
deposits decreased by 5% compared with the fourth quarter of 2024, to USD 119.2bn, mainly driven by net new
deposit outflows of USD 7.0bn. Net new asset
 
inflows were USD 7.5bn.
EMEA
Profit
 
before
 
tax
 
increased
 
by
 
USD 23m
 
to
 
USD 354m.
 
Total
 
revenues
 
decreased
 
by
 
USD 21m,
 
or
 
2%,
 
to
USD 1,177m, mainly
 
driven by
 
a decrease of
 
USD 49m in
 
net interest
 
income, partly
 
offset by
 
increases of USD
 
22m
in recurring net fee
 
income and USD 7m
 
in transaction-based income.
 
Operating expenses
 
decreased by USD 48m,
or 6%, to USD 824m.
 
The cost / income ratio decreased
 
to 70.0% from 72.8%. Loans
 
increased by 4% compared
with the fourth
 
quarter of 2024,
 
to USD 60.0bn,
 
mainly driven by
 
positive net
 
new loans of
 
USD 0.3bn and
 
positive
foreign
 
currency
 
effects.
 
Customer
 
deposits
 
increased
 
by
 
1%
 
compared
 
with
 
the
 
fourth
 
quarter
 
of
 
2024,
 
to
USD 111.8bn,
 
mainly
 
driven
 
by
 
positive
 
foreign
 
currency
 
effects,
 
partly
 
offset
 
by
 
net
 
new
 
deposit
 
outflows
 
of
USD 1.6bn. Net new asset inflows were USD 1.4bn.
Switzerland
Profit before
 
tax increased
 
by USD 26m
 
to USD 403m.
 
Total revenues decreased by
 
USD 2m to
 
USD 1,031m, mostly
driven by a
 
decrease of USD 46m
 
in net interest
 
income, partly offset
 
by increases of
 
USD 30m in transaction-based
income
 
and
 
USD 13m
 
in
 
recurring
 
net
 
fee
 
income.
 
Operating
 
expenses
 
decreased
 
by
 
USD 18m,
 
or
 
3%,
 
to
USD 641m. The cost / income ratio decreased to 62.2% from 63.7%. Loans decreased by 6% compared with the
fourth quarter
 
of 2024,
 
to USD 97.0bn,
 
mainly reflecting
 
the effect from
 
the aforementioned
 
shift of some
 
affluent
clients to Personal & Corporate
 
Banking. Customer deposits increased
 
by 2% compared with the
 
fourth quarter of
2024,
 
to
 
USD 117.5bn,
 
mainly
 
driven
 
by
 
net
 
new
 
deposit
 
inflows
 
of
 
USD 1.9bn
 
and
 
positive
 
foreign
 
currency
effects. Net new asset inflows were USD 3.6bn.
 
Divisional items
Operating loss
 
before
 
tax was
 
USD 183m, mainly
 
including USD 355m
 
of integration-related
 
expenses and
 
PPA
effects, partly offset
 
by the aforementioned
 
USD 165m related to
 
PPA
 
effects and other
 
integration items, and
 
a
gain of USD 4m related to an investment in an associate.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
 
Personal & Corporate Banking
 
21
Personal & Corporate Banking
 
Personal & Corporate Banking – in Swiss francs
As of or for the quarter ended
% change from
CHF m, except where indicated
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Results
Net interest income
 
1,114
 
1,204
 
1,332
 
(7)
 
(16)
Recurring net fee income
1
 
357
 
357
 
348
 
0
 
3
Transaction-based income
1
 
452
 
471
 
449
 
(4)
 
1
Other income
 
66
 
(49)
 
11
 
486
Total revenues
 
1,989
 
1,983
 
2,139
 
0
 
(7)
Credit loss expense / (release)
 
48
 
155
 
39
 
(69)
 
22
Operating expenses
 
1,396
 
1,305
 
1,241
 
7
 
12
Business division operating profit / (loss) before tax
 
545
 
524
 
859
 
4
 
(37)
Underlying results
Total revenues as reported
 
1,989
 
1,983
 
2,139
 
0
 
(7)
of which: PPA effects and other integration items
2
 
216
 
227
 
226
 
(5)
 
(5)
of which: PPA effects recognized in net interest income
 
 
192
 
209
 
212
 
(8)
 
(10)
of which: PPA effects and other integration items recognized in transaction-based income
 
25
 
18
 
14
 
36
 
75
of which: gain / (loss) related to an investment in an associate
 
9
 
(54)
of which: items related to the Swisscard transactions
3
 
58
Total revenues (underlying)
1
 
1,705
 
1,810
 
1,913
 
(6)
 
(11)
Credit loss expense / (release)
 
48
 
155
 
39
 
(69)
 
22
Operating expenses as reported
 
1,396
 
1,305
 
1,241
 
7
 
12
of which: integration-related expenses and PPA effects
1,4
 
172
 
185
 
141
 
(7)
 
22
of which: items related to the Swisscard transactions
5,6
 
164
 
37
 
341
Operating expenses (underlying)
1
 
1,060
 
1,083
 
1,100
 
(2)
 
(4)
of which: expenses for litigation, regulatory and similar matters
 
0
 
0
 
0
Business division operating profit / (loss) before tax as reported
 
545
 
524
 
859
 
4
 
(37)
Business division operating profit / (loss) before tax (underlying)
1
 
597
 
572
 
774
 
4
 
(23)
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
 
(36.5)
 
(2.4)
 
55.7
Cost / income ratio (%)
1
 
70.2
 
65.8
 
58.0
Average attributed equity (CHF bn)
7
 
18.2
 
18.6
 
19.1
 
(3)
 
(5)
Return on attributed equity (%)
1,7
 
12.0
 
11.2
 
18.0
Net interest margin (bps)
1
 
181
 
198
 
211
Loans, gross (CHF bn)
 
248.9
 
242.3
 
252.9
 
3
 
(2)
Customer deposits (CHF bn)
 
251.2
 
254.1
 
255.9
 
(1)
 
(2)
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,8
 
1.3
 
1.3
 
1.2
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
 
(22.9)
 
(18.2)
 
40.3
Cost / income ratio (%)
1
 
62.2
 
59.8
 
57.5
Return on attributed equity (%)
1,7
 
13.2
 
12.3
 
16.2
1 Refer to “Alternative
 
performance measures” in the appendix to
 
this report for the definition and
 
calculation method.
 
2 Includes accretion of PPA
 
adjustments on financial instruments and other
 
PPA effects, as
well as temporary and
 
incremental items directly related
 
to the integration.
 
3 Represents the gain
 
related to UBS’s
 
share of income recorded
 
by Swisscard for the
 
sale of the Credit
 
Suisse card portfolios
 
to UBS.
 
4 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles resulting from the acquisition of the
 
Credit Suisse Group.
 
5 For the first quarter of 2025
this represents the expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS.
 
6 For the fourth quarter of 2024 this represents the termination fee paid to American Express
related to the expected sale in 2025 of
 
our 50% holding in Swisscard.
 
7 Refer to the “Equity attribution” section
 
of this report for more information about
 
the equity attribution framework.
 
8 Refer to the “Risk
management and control” section of this report for more information about (credit-)impaired exposures.
 
 
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
 
Personal & Corporate Banking
 
22
Results
:
1Q25 vs 1Q24
Profit before tax decreased by CHF 314m, or
 
37%, to CHF 545m, mainly reflecting
 
higher operating expenses and
lower total revenues. Underlying profit before tax was CHF 597m, a decrease
 
of 23%, mainly driven by lower net
interest
 
income,
 
resulting
 
from
 
lower
 
market
 
interest
 
rates.
 
This
 
underlying
 
profit
 
excludes
 
from
 
total
 
revenues
CHF 216m of purchase price
 
allocation (PPA) effects and other integration items,
 
a gain of CHF 58m related
 
to the
Swisscard
 
transactions,
 
and
 
a
 
gain
 
of
 
CHF 9m
 
related
 
to
 
an
 
investment
 
in
 
an
 
associate;
 
it
 
also
 
excludes
 
from
operating expenses CHF 172m of
 
integration-related expenses and PPA
 
effects and a
 
CHF 164m expense related
to the Swisscard transactions.
 
Total revenues
Total
 
revenues decreased by
 
CHF 150m, or 7%,
 
to CHF 1,989m, mainly
 
due to lower
 
net interest
 
income, partly
offset by higher other income, and included a CHF 10m decrease in PPA effects and other integration items. Total
revenues in the first quarter of 2025
 
also included a gain of CHF 58m related
 
to the Swisscard transactions and a
gain of CHF 9m related
 
to an investment
 
in an associate.
 
Excluding CHF 216m of
 
PPA effects and other integration
items and the aforementioned gains, underlying total
 
revenues were CHF 1,705m, a decrease of 11%.
Net
 
interest
 
income
 
decreased
 
by
 
CHF 218m,
 
or
 
16%,
 
to
 
CHF 1,114m,
 
mainly
 
due
 
to
 
lower
 
deposit
 
revenues,
resulting
 
from
 
lower
 
market
 
interest
 
rates,
 
and
 
higher
 
liquidity
 
and
 
funding
 
costs,
 
partly
 
offset
 
by
 
higher
 
loan
revenues, including the effect from a shift of some
 
affluent clients from Global Wealth Management. Net interest
income also included a CHF 20m decrease in accretion of PPA adjustments
 
on financial instruments and other PPA
effects. Excluding PPA effects of CHF 192m,
 
underlying net interest income was CHF 923m,
 
a decrease of 18%.
Recurring net
 
fee income
 
increased by
 
CHF 9m, or
 
3%, to
 
CHF 357m, largely
 
due to
 
higher investment product
levels,
 
mainly
 
reflecting
 
net
 
new
 
inflows
 
and
 
positive
 
market
 
performance,
 
partly
 
offset
 
by
 
the
 
effect
 
from
 
a
reclassification
 
of
 
recurring
 
net
 
fee
 
income
 
to
 
transaction-based
 
income
 
as
 
a
 
result
 
of
 
aligning
 
Credit
 
Suisse
presentation to that of UBS in the second half
 
of 2024.
Transaction-based income was broadly stable at CHF 452m, as lower corporate client revenues were offset by the
positive impact
 
from the
 
aforementioned reclassification,
 
and included
 
an CHF 11m
 
increase in
 
accretion of
 
PPA
adjustments on
 
financial
 
instruments and
 
other PPA
 
effects.
 
Excluding CHF 25m
 
of PPA
 
effects and
 
other integration
items, underlying transaction-based income
 
was CHF 427m, a decrease of 2%.
Other income
 
increased by
 
CHF 55m to
 
CHF 66m, mainly
 
reflecting a
 
gain of
 
CHF 58m related
 
to the
 
Swisscard
transactions and
 
a gain of
 
CHF 9m related
 
to an investment
 
in an associate.
 
Excluding these
 
gains, underlying
 
other
income was negative CHF 2m.
Credit loss expense / release
Net credit loss expenses
 
were CHF 48m
 
and mainly reflected
 
net expenses on
 
credit-impaired positions, primarily
 
in
the legacy Credit Suisse corporate loan book. Net credit loss
 
expenses in the prior-year quarter were CHF 39m.
Operating expenses
Operating expenses increased by CHF 155m,
 
or 12%, to CHF 1,396m, largely
 
due to a CHF 164m expense
 
related
to
 
the
 
Swisscard
 
transactions,
 
and
 
included
 
a
 
CHF 30m
 
increase
 
in
 
integration-related
 
expenses.
 
Excluding
CHF 172m
 
of
 
integration-related
 
expenses
 
and
 
PPA
 
effects
 
and
 
the
 
aforementioned
 
expense
 
of
 
CHF 164m,
underlying operating expenses were CHF 1,060m, a decrease
 
of 4%, mainly driven by
 
lower personnel expenses,
including lower variable compensation.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
 
Personal & Corporate Banking
 
23
Personal & Corporate Banking – in US dollars
As of or for the quarter ended
% change from
USD m, except where indicated
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Results
Net interest income
 
1,239
 
1,362
 
1,508
 
(9)
 
(18)
Recurring net fee income
1
 
397
 
404
 
394
 
(2)
 
1
Transaction-based income
1
 
502
 
532
 
508
 
(6)
 
(1)
Other income
 
72
 
(53)
 
13
 
470
Total revenues
 
2,211
 
2,245
 
2,423
 
(2)
 
(9)
Credit loss expense / (release)
 
53
 
175
 
44
 
(69)
 
22
Operating expenses
 
1,551
 
1,476
 
1,404
 
5
 
10
Business division operating profit / (loss) before tax
 
607
 
595
 
975
 
2
 
(38)
Underlying results
Total revenues as reported
 
2,211
 
2,245
 
2,423
 
(2)
 
(9)
of which: PPA effects and other integration items
2
 
241
 
258
 
256
 
(7)
 
(6)
of which: PPA effects recognized in net interest income
 
213
 
237
 
240
 
(10)
 
(11)
of which: PPA effects and other integration items recognized in transaction-based income
 
27
 
20
 
16
 
35
 
70
of which: gain / (loss) related to an investment in an associate
 
11
 
(59)
of which: items related to the Swisscard transactions
3
 
64
Total revenues (underlying)
1
 
1,895
 
2,047
 
2,166
 
(7)
 
(13)
Credit loss expense / (release)
 
53
 
175
 
44
 
(69)
 
22
Operating expenses as reported
 
1,551
 
1,476
 
1,404
 
5
 
10
of which: integration-related expenses and PPA effects
1,4
 
192
 
209
 
160
 
(8)
 
20
of which: items related to the Swisscard transactions
5,6
 
180
 
41
 
340
Operating expenses (underlying)
1
 
1,179
 
1,226
 
1,245
 
(4)
 
(5)
of which: expenses for litigation, regulatory and similar matters
 
0
 
0
 
0
Business division operating profit / (loss) before tax as reported
 
607
 
595
 
975
 
2
 
(38)
Business division operating profit / (loss) before tax (underlying)
1
 
663
 
646
 
878
 
3
 
(25)
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
 
(37.8)
 
(1.0)
 
63.1
Cost / income ratio (%)
1
 
70.1
 
65.7
 
58.0
Average attributed equity (USD bn)
7
 
20.1
 
21.3
 
21.9
 
(6)
 
(8)
Return on attributed equity (%)
1,7
 
12.1
 
11.2
 
17.8
Net interest margin (bps)
1
 
181
 
196
 
208
Loans, gross (USD bn)
 
281.4
 
266.9
 
280.3
 
5
 
0
Customer deposits (USD bn)
 
284.0
 
279.9
 
283.6
 
1
 
0
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,8
 
1.3
 
1.3
 
1.2
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
 
(24.5)
 
(19.2)
 
46.9
Cost / income ratio (%)
1
 
62.2
 
59.9
 
57.5
Return on attributed equity (%)
1,7
 
13.2
 
12.1
 
16.0
1 Refer to “Alternative
 
performance measures” in the appendix to
 
this report for the definition and
 
calculation method.
 
2 Includes accretion of PPA
 
adjustments on financial instruments and other
 
PPA effects, as
well as temporary and
 
incremental items directly related
 
to the integration.
 
3 Represents the gain
 
related to UBS’s
 
share of income recorded
 
by Swisscard for the
 
sale of the Credit
 
Suisse card portfolios
 
to UBS.
 
4 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles resulting from the acquisition of the
 
Credit Suisse Group.
 
5 For the first quarter of 2025
this represents the expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS.
 
6 For the fourth quarter of 2024 this represents the termination fee paid to American Express
related to the expected sale in 2025 of
 
our 50% holding in Swisscard.
 
7 Refer to the “Equity attribution” section
 
of this report for more information about
 
the equity attribution framework.
 
8 Refer to the “Risk
management and control” section of this report for more information about (credit-)impaired exposures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
 
Asset Management
 
24
Asset Management
Asset Management
As of or for the quarter ended
% change from
USD m, except where indicated
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Results
Net management fees
1
 
713
 
709
 
745
 
1
 
(4)
Performance fees
 
30
 
44
 
30
 
(32)
 
0
Net gain from disposals
 
(2)
 
13
Total revenues
 
741
 
766
 
776
 
(3)
 
(4)
Credit loss expense / (release)
 
0
 
0
 
0
Operating expenses
 
606
 
639
 
665
 
(5)
 
(9)
Business division operating profit / (loss) before tax
 
135
 
128
 
111
 
6
 
22
Underlying results
Total revenues as reported
 
741
 
766
 
776
 
(3)
 
(4)
Total revenues (underlying)
2
 
741
 
766
 
776
 
(3)
 
(4)
Credit loss expense / (release)
 
0
 
0
 
0
Operating expenses as reported
 
606
 
639
 
665
 
(5)
 
(9)
of which: integration-related expenses
2
 
73
 
96
 
71
 
(24)
 
2
Operating expenses (underlying)
2
 
533
 
543
 
594
 
(2)
 
(10)
of which: expenses for litigation, regulatory and similar matters
 
0
 
1
 
0
Business division operating profit / (loss) before tax as reported
 
135
 
128
 
111
 
6
 
22
Business division operating profit / (loss) before tax (underlying)
2
 
208
 
224
 
182
 
(7)
 
15
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
2
 
22.3
 
5.2
 
16.6
Cost / income ratio (%)
2
 
81.7
 
83.3
 
85.8
Average attributed equity (USD bn)
3
 
2.7
 
2.8
 
2.6
 
(4)
 
3
Return on attributed equity (%)
2,3
 
19.8
 
18.0
 
16.7
Gross margin on invested assets (bps)
2
 
17
 
17
 
19
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
2
 
14.5
 
20.3
 
91.5
Cost / income ratio (%)
2
 
71.9
 
70.8
 
76.6
Return on attributed equity (%)
2,3
 
30.5
 
31.5
 
27.5
Information by business line / asset
 
class
Net new money (USD bn)
2
Equities
 
(1.4)
 
30.5
 
3.3
Fixed Income
 
9.8
 
4.1
 
13.8
of which: money market
 
5.2
 
4.3
 
10.4
Multi-asset & Solutions
 
0.9
 
(0.5)
 
1.7
Hedge Fund Businesses
 
0.6
 
(2.8)
 
(0.2)
Real Estate & Private Markets
 
0.1
 
(0.9)
 
0.3
Total net new money excluding associates
 
10.1
 
30.4
 
18.9
of which: net new money excluding money market
 
4.8
 
26.2
 
8.6
Associates
4
 
(3.2)
 
3.0
 
2.1
Total net new money
 
6.8
 
33.4
 
21.0
Invested assets (USD bn)
2
Equities
 
753
 
755
 
683
 
0
 
10
Fixed Income
 
479
 
464
 
450
 
3
 
6
of which: money market
 
164
 
157
 
145
 
4
 
13
Multi-asset & Solutions
 
275
 
268
 
278
 
2
 
(1)
Hedge Fund Businesses
 
60
 
58
 
58
 
3
 
3
Real Estate & Private Markets
 
147
 
143
 
148
 
3
 
0
Total invested assets excluding associates
 
1,715
 
1,689
 
1,617
 
2
 
6
of which: passive strategies
 
823
 
807
 
750
 
2
 
10
Associates
4
 
81
 
84
 
74
 
(3)
 
10
Total invested assets
 
1,796
 
1,773
 
1,691
 
1
 
6
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
 
Asset Management
 
25
Asset Management (continued)
As of or for the quarter ended
% change from
USD m, except where indicated
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Information by region
Invested assets (USD bn)
2
Americas
 
447
 
443
 
424
 
1
 
5
Asia Pacific
5
 
222
 
224
 
214
 
(1)
 
3
EMEA (excluding Switzerland)
 
440
 
435
 
374
 
1
 
18
Switzerland
 
688
 
670
 
679
 
3
 
1
Total invested assets
 
1,796
 
1,773
 
1,691
 
1
 
6
Information by channel
Invested assets (USD bn)
2
Third-party institutional
 
1,027
 
1,008
 
960
 
2
 
7
Third-party wholesale
 
163
 
169
 
176
 
(4)
 
(7)
UBS’s wealth management businesses
 
525
 
512
 
482
 
2
 
9
Associates
4
 
81
 
84
 
74
 
(3)
 
10
Total invested assets
 
1,796
 
1,773
 
1,691
 
1
 
6
1 Net management fees include transaction
 
fees, fund administration revenues
 
(including net interest and trading
 
income from lending activities and
 
foreign-exchange hedging as part of the
 
fund services offering),
distribution fees, incremental fund-related
 
expenses, gains or losses
 
from seed money and co-investments,
 
funding costs, the negative
 
pass-through impact of third-party performance
 
fees, and other items
 
that are
not Asset Management’s performance fees.
 
2 Refer to “Alternative
 
performance measures” in the appendix to this
 
report for the definition and calculation method.
 
3 Refer to the “Equity attribution” section of
this report for more information about the
 
equity attribution framework.
 
4 The invested assets and net new money amounts reported for
 
associates are prepared in accordance with their local
 
regulatory requirements
and practices.
 
5 Includes invested assets from associates.
Results: 1Q25 vs 1Q24
 
Profit before
 
tax increased
 
by USD 24m,
 
or 22%,
 
to USD 135m,
 
mainly due
 
to lower
 
operating expenses, partly
offset by
 
lower total
 
revenues.
 
Underlying profit before
 
tax was
 
USD 208m, an increase
 
of 15%,
 
after excluding
integration-related expenses of USD 73m.
Total revenues
Total
 
revenues decreased by
 
USD 35m, or 4%,
 
to USD 741m, primarily reflecting
 
a decrease in
 
net management
fees.
Net
 
management
 
fees
 
decreased
 
by
 
USD 32m,
 
or
 
4%,
 
to
 
USD 713m,
 
largely
 
driven
 
by
 
margin
 
compression,
negative foreign
 
currency effects
 
and the
 
impact of
 
exits from
 
non-strategic businesses,
 
partly offset
 
by positive
market performance.
 
Performance fees
 
were stable
 
at USD 30m,
 
as increases
 
in Fixed Income
 
were offset
 
by decreases
 
in the
 
Hedge Fund
and Real Estate Businesses.
Operating expenses
Operating expenses decreased by USD 59m, or 9%, to USD 606m, reflecting decreases across non-personnel and
personnel expenses,
 
and included a
 
USD 2m increase in
 
integration-related expenses.
 
Excluding integration-related
expenses of
 
USD 73m, underlying
 
operating
 
expenses were
 
USD 533m, a
 
decrease of
 
10%, mainly
 
due to
 
decreases
in personnel,
 
consulting and
 
legal expenses
 
and the
 
release of
 
a provision for
 
fund-administration-related expenses,
as well as decreases across a number of other expense
 
lines.
Invested assets: 1Q25 vs 4Q24
 
Invested assets
 
increased by
 
USD 23bn to
 
USD 1,796bn, reflecting positive
 
foreign currency
 
effects of
 
USD 33bn
and positive
 
net new
 
money of
 
USD 7bn, partly
 
offset by
 
negative market
 
performance of
 
USD 14bn.
 
Excluding
money market flows and associates, net new
 
money was USD 5bn.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
 
Investment Bank
 
26
Investment Bank
Investment Bank
As of or for the quarter ended
% change from
USD m, except where indicated
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Results
Advisory
 
221
 
260
 
189
 
(15)
 
17
Capital Markets
 
489
 
612
 
683
 
(20)
 
(28)
Global Banking
 
710
 
872
 
872
 
(19)
 
(19)
Execution Services
1
 
517
 
471
 
402
 
10
 
28
Derivatives & Solutions
1
 
1,291
 
683
 
934
 
89
 
38
Financing
 
665
 
723
 
542
 
(8)
 
23
Global Markets
 
2,473
 
1,877
 
1,878
 
32
 
32
of which: Equities
 
1,806
 
1,448
 
1,353
 
25
 
33
of which: Foreign Exchange, Rates and Credit
 
667
 
429
 
525
 
55
 
27
Total revenues
 
3,183
 
2,749
 
2,751
 
16
 
16
Credit loss expense / (release)
 
35
 
63
 
32
 
(45)
 
10
Operating expenses
 
2,427
 
2,207
 
2,164
 
10
 
12
Business division operating profit / (loss) before tax
 
722
 
479
 
555
 
51
 
30
Underlying results
Total revenues as reported
 
3,183
 
2,749
 
2,751
 
16
 
16
of which: PPA effects
2
 
138
 
202
 
293
 
(32)
 
(53)
of which: PPA effects recognized in Global Banking revenue line
 
147
 
197
 
288
 
(26)
 
(49)
Total revenues (underlying)
3
 
3,045
 
2,547
 
2,458
 
20
 
24
Credit loss expense / (release)
 
35
 
63
 
32
 
(45)
 
10
Operating expenses as reported
 
2,427
 
2,207
 
2,164
 
10
 
12
of which: integration-related expenses
3
 
112
 
174
 
143
 
(36)
 
(21)
Operating expenses (underlying)
3
 
2,314
 
2,032
 
2,022
 
14
 
14
of which: expenses for litigation, regulatory and similar matters
 
20
 
12
 
(1)
 
74
Business division operating profit / (loss) before tax as reported
 
722
 
479
 
555
 
51
 
30
Business division operating profit / (loss) before tax (underlying)
3
 
696
 
452
 
404
 
54
 
72
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
3
 
30.1
n.m.
 
12.7
Cost / income ratio (%)
3
 
76.2
 
80.3
 
78.7
Average attributed equity (USD bn)
4
 
17.7
 
17.3
 
17.0
 
2
 
4
Return on attributed equity (%)
3,4
 
16.3
 
11.1
 
13.1
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
3
 
72.2
n.m.
 
(17.8)
Cost / income ratio (%)
3
 
76.0
 
79.8
 
82.3
Return on attributed equity (%)
3,4
 
15.8
 
10.5
 
9.5
1
Comparative figures for the quarter ended 31 March 2024 have been restated as a result of the shift of the foreign
 
exchange products that are traded over electronic platforms from Execution Services to Derivatives
& Solutions. The restatement had no effect
 
on total Global Markets revenues.
 
2 Includes accretion of PPA adjustments on financial
 
instruments and other PPA effects.
 
3 Refer to “Alternative performance measures”
in the appendix to this report for the definition and calculation method.
 
4 Refer to the “Equity attribution” section of this report for more information about the equity attribution framework.
 
 
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
 
Investment Bank
 
27
Results: 1Q25 vs 1Q24
Profit before tax increased
 
by USD 167m, or 30%, to
 
USD 722m, mainly due to
 
higher total revenues, partly
 
offset
by higher
 
operating expenses. Underlying
 
profit before
 
tax was
 
USD 696m, an
 
increase of
 
72%, after
 
excluding
USD 138m of purchase price allocation (PPA) effects
 
and USD 112m of integration-related expenses.
Total revenues
Total
 
revenues increased by USD 432m, or
 
16%, to USD 3,183m, due
 
to higher revenues in Global
 
Markets, partly
offset by lower revenues in Global Banking, and included an overall USD 155m
 
decrease in PPA
 
effects. Excluding
these effects, underlying total revenues were USD 3,045m, an increase of
 
24%.
Global Banking
Global Banking revenues decreased by USD 162m, or 19%, to
 
USD 710m, and included a USD 141m decrease in
accretion of PPA
 
adjustments on financial instruments and
 
other PPA
 
effects. Excluding such
 
accretion and other
effects, underlying Global Banking revenues were USD 564m, a decrease of
 
4%.
Advisory revenues
 
increased by
 
USD 32m, or
 
17%, to
 
USD 221m, mainly
 
due to
 
higher merger
 
and acquisition
transaction revenues.
Capital Markets revenues decreased by USD 194m, or 28%, to USD 489m, and included a USD 141m decrease in
accretion of PPA
 
adjustments on financial
 
instruments and other
 
PPA effects. Excluding
 
such accretion and
 
other
effects, underlying Capital
 
Markets revenues decreased
 
by USD 52m,
 
or 13%,
 
largely driven
 
by lower
 
Leveraged
Capital Markets revenues.
Global Markets
Global
 
Markets
 
revenues
 
increased
 
by
 
USD 595m,
 
or
 
32%,
 
to
 
USD 2,473m,
 
driven
 
by
 
higher
 
Derivatives
 
&
Solutions, Financing and Execution Services
 
revenues.
Execution Services
 
revenues increased
 
by USD 115m,
 
or 28%,
 
to USD 517m,
 
mainly driven
 
by increases
 
in Cash
Equities across all regions,
 
due to higher volumes.
Derivatives & Solutions revenues
 
increased by USD 357m, or
 
38%, to USD 1,291m, with increases
 
largely in Equity
Derivatives and Foreign Exchange,
 
due to increased volatility and higher levels
 
of client activity.
Financing revenues increased
 
by USD 123m, or
 
23%, to USD 665m,
 
mainly driven by
 
increases in Prime Brokerage,
supported by higher client balances.
Equities
Global Markets Equities revenues increased by USD 453m, or 33%,
 
to USD 1,806m, mainly driven by increases in
Equity Derivatives, Cash Equities and Prime Brokerage.
Foreign Exchange, Rates and Credit
Global
 
Markets
 
Foreign
 
Exchange,
 
Rates
 
and
 
Credit
 
revenues
 
increased
 
by
 
USD 142m,
 
or
 
27%,
 
to
 
USD 667m,
mainly driven by increases in Foreign Exchange.
Credit loss expense / release
Net credit loss expenses were
 
USD 35m, compared with net credit loss
 
expenses of USD 32m in
 
the first quarter of
2024.
Operating expenses
Operating expenses increased by USD
 
263m, or 12%, to USD 2,427m,
 
mainly due to higher
 
personnel expenses,
and
 
included
 
a
 
USD 31m
 
decrease
 
in
 
integration-related
 
expenses.
 
Excluding
 
integration-related
 
expenses
 
of
USD 112m, underlying operating expenses were USD
 
2,314m, an increase of 14%.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
 
Non-core and Legacy
 
28
Non-core and Legacy
Non-core and Legacy
As of or for the quarter ended
% change from
USD m, except where indicated
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Results
Total revenues
 
284
 
(58)
 
1,001
 
(72)
Credit loss expense / (release)
 
7
 
6
 
36
 
13
 
(80)
Operating expenses
 
669
 
858
 
1,011
 
(22)
 
(34)
Operating profit / (loss) before tax
 
(391)
 
(923)
 
(46)
 
(58)
 
759
Underlying results
Total revenues as reported
 
284
 
(58)
 
1,001
 
(72)
Total revenues (underlying)
1
 
284
 
(58)
 
1,001
 
(72)
Credit loss expense / (release)
 
7
 
6
 
36
 
13
 
(80)
Operating expenses as reported
 
669
 
858
 
1,011
 
(22)
 
(34)
of which: integration-related expenses
1
 
191
 
317
 
242
 
(40)
 
(21)
Operating expenses (underlying)
1
 
477
 
541
 
769
 
(12)
 
(38)
of which: expenses for litigation, regulatory and similar matters
 
7
 
(20)
 
(16)
Operating profit / (loss) before tax as reported
 
(391)
 
(923)
 
(46)
 
(58)
 
759
Operating profit / (loss) before tax (underlying)
1
 
(200)
 
(606)
 
197
 
(67)
Performance measures and other information
Average attributed equity (USD bn)
2
 
7.5
 
8.7
 
10.6
 
(14)
 
(30)
Risk-weighted assets (USD bn)
 
34.2
 
41.4
 
57.9
 
(18)
 
(41)
Leverage ratio denominator (USD bn)
 
34.9
 
53.5
 
119.9
 
(35)
 
(71)
1 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method.
 
2 Refer to the “Equity attribution” section of this report for
 
more information about the equity
attribution framework.
 
Composition of Non-core and Legacy
Total assets
RWA
LRD
USD bn
31.3.25
31.12.24
31.3.25
31.12.24
31.3.25
31.12.24
Exposure category
Equities
 
1.4
 
2.6
 
1.0
 
0.9
 
0.9
 
2.0
Macro
 
16.9
 
26.3
 
3.6
 
4.4
 
4.1
 
10.2
Loans
 
1.8
 
3.2
 
1.8
 
2.8
 
1.8
 
4.0
Securitized products
 
3.5
 
7.4
 
2.9
 
5.2
 
3.8
 
8.8
Credit
 
0.2
 
0.2
 
0.2
 
0.3
 
0.2
 
0.2
High-quality liquid assets
 
22.9
 
27.2
 
22.9
 
27.2
Operational risk
 
24.0
 
27.1
Other
 
1.2
 
1.4
 
0.5
 
0.7
 
1.1
 
1.1
Total
 
47.9
 
68.3
 
34.2
 
41.4
 
34.9
 
53.5
Results: 1Q25 vs 1Q24
Loss before tax
 
was USD 391m,
 
compared with
 
a loss
 
of USD 46m.
 
Underlying loss
 
before tax was
 
USD 200m, after
excluding integration-related expenses of USD 191m,
 
compared with underlying profit before tax of USD 197m.
Total revenues
Total
 
revenues were
 
USD 284m, a
 
decrease of
 
USD 717m, mainly
 
reflecting lower
 
net gains
 
from position
 
exits,
including a
 
USD 45m loss
 
from an
 
exit from
 
longevity positions,
 
and lower
 
net interest
 
income from
 
securitized
products and credit products as a result of a
 
smaller portfolio. Total
 
revenues in the first quarter of 2025 included
a gain of USD 97m from the sale of
 
Select Portfolio Servicing,
 
the US mortgage servicing business
 
of Credit Suisse.
Total
 
revenues in
 
the first
 
quarter of
 
2024 included
 
a net
 
gain of
 
USD 272m, after
 
accounting for
 
the purchase
price allocation adjustments recorded at the closing of the acquisition of the
 
Credit Suisse Group, from the sale of
assets from the former Credit
 
Suisse securitized products
 
group to Apollo Management
 
Holdings and certain other
entities (collectively Apollo).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
 
Non-core and Legacy
 
29
Credit loss expense / release
Net credit loss expenses were USD 7m, almost entirely reflecting
 
credit-impaired positions with a small number of
corporate counterparties. These compared with net
 
credit loss expenses of USD 36m in the first quarter
 
of 2024.
Operating expenses
Operating
 
expenses
 
were
 
USD 669m,
 
a
 
decrease
 
of
 
USD 342m,
 
mainly
 
due
 
to
 
lower
 
personnel
 
expenses,
technology expenses,
 
real estate
 
costs and
 
risk management
 
costs, and
 
included a
 
USD 51m decrease
 
in integration-
related
 
expenses.
 
Excluding
 
integration-related
 
expenses
 
of
 
USD 191m,
 
underlying
 
operating
 
expenses
 
were
USD 477m, a decrease of 38%.
Risk-weighted assets and leverage ratio denominator:
 
1Q25 vs 4Q24
The active unwinding of Non-core and Legacy assets resulted in a decrease
 
in risk-weighted assets (RWA) and the
leverage ratio
 
denominator (the LRD).
 
RWA decreased
 
by USD 7.2bn
 
to USD 34.2bn, mostly
 
due to
 
decreases in
the
 
securitized
 
product,
 
loan
 
and
 
macro
 
portfolios,
 
which
 
included
 
an
 
increase
 
in
 
RWA
 
related
 
to
 
the
implementation of the final
 
Basel III standards. In
 
addition, operational risk RWA
 
decreased by USD 3bn
 
resulting
from such implementation.
 
The LRD decreased by USD 18.6bn to
 
USD 34.9bn, mainly driven by reductions in the
macro, securitized product, high-quality liquid asset and
 
loan portfolios.
Group Items
Group Items
As of or for the quarter ended
% change from
USD m
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Results
Total revenues
 
(284)
 
(188)
 
(355)
 
51
 
(20)
Credit loss expense / (release)
 
(1)
 
0
 
(2)
Operating expenses
 
15
 
(88)
 
(33)
Operating profit / (loss) before tax
 
(299)
 
(100)
 
(320)
 
200
 
(7)
Underlying results
Total revenues as reported
 
(284)
 
(188)
 
(355)
 
51
 
(20)
of which: PPA effects and other integration items
1
 
30
 
(4)
 
(4)
Total revenues (underlying)
2
 
(314)
 
(184)
 
(351)
 
71
 
(10)
Credit loss expense / (release)
 
(1)
 
0
 
(2)
Operating expenses as reported
 
15
 
(88)
 
(33)
of which: integration-related expenses
2
 
3
 
(1)
 
1
Operating expenses (underlying)
2
 
12
 
(88)
 
(34)
of which: expenses for litigation, regulatory and similar matters
 
72
 
6
 
0
Operating profit / (loss) before tax as reported
 
(299)
 
(100)
 
(320)
 
200
 
(7)
Operating profit / (loss) before tax (underlying)
2
 
(326)
 
(96)
 
(315)
 
240
 
3
1
Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration.
 
2 Refer to “Alternative performance measures”
in the appendix to this report for the definition and calculation method.
Results: 1Q25 vs 1Q24
Loss before tax decreased by USD 21m, or 7%, to USD 299m, mainly driven by lower mark-to-market losses from
Group hedging
 
and own
 
debt, partly
 
offset by
 
an increase
 
in provisions
 
for litigation,
 
regulatory and
 
similar matters.
In
 
addition,
 
the
 
first
 
quarter
 
of
 
2024
 
included
 
a
 
USD 25m
 
donation
 
expense.
 
Underlying
 
loss
 
before
 
tax
 
was
USD 326m, after excluding
 
from total revenues USD 30m
 
of purchase price allocation
 
effects and other
 
integration
items and also excluding
 
from operating expenses
 
USD 3m of integration-related
 
expenses. This compared with
 
an
underlying loss before tax of USD 315m in the first
 
quarter of 2024.
 
Income
 
from
 
Group
 
hedging
 
and
 
own
 
debt,
 
including
 
hedge
 
accounting
 
ineffectiveness,
 
was
 
net
 
negative
USD 118m, compared with net negative income of USD 191m. The losses in the first quarter of 2025 were driven
by mark-to-market effects on own
 
credit and portfolio-level economic hedges, mainly
 
due to increases
 
in interest
rates and cross-currency-basis widening.
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Risk management and
 
control
 
31
Risk management and control
This
 
section
 
provides
 
information
 
about
 
key
 
developments
 
during
 
the
 
reporting
 
period
 
and
 
should
 
be
 
read
 
in
conjunction with
 
the “Risk
 
management and
 
control” section
 
of the
 
UBS Group
 
Annual Report
 
2024, available
under “Annual
 
reporting” at
ubs.com/investors
, and
 
the “Recent
 
developments” section of
 
this report
 
for more
information about the integration of Credit Suisse.
Toward the end of the first quarter of 2025 and into April, heightened geopolitical tensions and the imposition of
new tariffs exerted significant pressure on markets.
 
The weakening of the US dollar resulted in passive
 
increases in
reported exposures
 
from our
 
non-US-dollar-denominated
 
portfolios. In
 
addition, the
 
high volatility
 
led to
 
an increase
in margin calls in Global Wealth
 
Management and the Investment
 
Bank,
 
which were met within the
 
orderly course
of business.
 
We are closely
 
monitoring these
 
developments,
 
continually assessing
 
portfolio impacts
 
and considering
potential mitigating actions.
Credit risk
 
Overall banking products exposure
Overall banking products exposure
 
increased by USD 35bn compared
 
with 31 December 2024,
 
to USD 1,037bn as
of 31 March 2025,
 
primarily reflecting currency
 
effects in Loans
 
and advances to
 
customers and balances
 
at central
banks, inflows
 
from roll-offs of
 
securities financing
 
transactions in
 
balances at
 
central banks,
 
and purchases
 
of high-
quality liquid asset portfolio securities in
 
Other financial assets measured at amortized cost.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about balance sheet
movements
›
Refer to the “Group performance” section and “Note
8
 
Expected credit loss measurement” in the “Consolidated
financial statements” section of this report for more information about credit loss expense / release
Overall traded products exposure
Overall traded products exposure decreased by
 
USD 12bn compared with 31 December 2024, to USD 54bn
 
as of
31 March 2025, primarily driven by decreases
 
in over-the-counter derivatives exposure in the
 
Investment Bank and
Personal & Corporate Banking, reflecting market
 
movements.
Loan underwriting
In the
 
Investment Bank,
 
mandated loan
 
underwriting commitments
 
on a
 
notional basis
 
increased by
 
USD 3.9bn
compared with 31 December 2024, to USD 8.4bn as of 31 March 2025, driven by new mandates, partly offset by
deal syndications. As of 31 March
 
2025, USD 0.9bn of these commitments
 
had not been distributed as
 
originally
planned.
Loan underwriting exposures
 
in the Investment
 
Bank are classified
 
as held for
 
trading, with
 
fair values reflecting
 
the
market conditions
 
at the
 
end of
 
the quarter.
 
Credit hedges
 
are in place
 
to help
 
protect against
 
fair value
 
movements
in the portfolio.
Syndication of
 
underwriting exposure continues,
 
despite the
 
volatile market
 
conditions. As
 
of 25 April
 
2025, we
had
 
a
 
USD 1.1bn
 
exposure
 
reduction,
 
bringing
 
our
 
outstanding
 
mandated
 
loan
 
underwriting
 
commitments
 
to
USD 7.4bn.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Risk management and
 
control
 
32
Banking and traded products exposure in the business divisions and Group Items
31.3.25
USD m
Global
Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
 
Bank
Non-core
 
and Legacy
Group
 
Items
Total
Banking products exposure, gross
1,2
 
464,710
 
426,822
 
1,574
 
104,477
 
17,816
 
21,271
 
1,036,669
of which: loans and advances to customers (on-balance sheet)
 
295,424
 
281,423
 
10
 
17,676
 
1,195
 
521
 
596,249
of which: guarantees and irrevocable loan commitments (off-balance sheet)
 
20,082
 
44,769
 
11
 
35,088
 
1,345
 
20,755
 
122,049
Committed unconditionally revocable credit lines
3
 
78,171
 
65,381
 
0
 
546
 
4
 
0
 
144,102
Traded products exposure, gross
2,4
 
15,461
 
3,303
 
0
 
35,437
 
54,201
of which: over-the-counter derivatives
 
11,835
 
2,875
 
0
 
10,061
 
24,771
of which: securities financing transactions
 
18
 
0
 
0
 
16,107
 
16,126
of which: exchange-traded derivatives
 
3,607
 
428
 
0
 
9,269
 
13,304
Total credit-impaired exposure, gross
1
 
1,391
 
3,825
 
0
 
609
 
959
 
0
 
6,784
of which: stage 3
 
1,316
 
3,471
 
0
 
565
 
63
 
0
 
5,415
of which: PCI
 
75
 
354
 
0
 
45
 
896
 
0
 
1,369
Total allowances and provisions for expected credit losses
 
289
 
1,588
 
0
 
421
 
326
 
5
 
2,629
of which: stage 1
 
106
 
276
 
0
 
103
 
3
 
5
 
493
of which: stage 2
 
56
 
247
 
0
 
151
 
2
 
0
 
455
of which: stage 3
 
120
 
1,024
 
0
 
164
 
49
 
0
 
1,357
of which: PCI
 
6
 
42
 
0
 
3
 
273
 
0
 
324
31.12.24
USD m
Global
Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
 
Bank
Non-core
 
and Legacy
Group
Items
Total
Banking products exposure, gross
1,2
 
452,053
 
424,994
 
1,530
 
72,964
 
33,150
 
17,478
 
1,002,169
of which: loans and advances to customers (on-balance sheet)
 
295,856
 
266,869
 
9
 
17,497
 
1,163
 
551
 
581,944
of which: guarantees and irrevocable loan commitments (off-balance
 
sheet)
 
18,978
 
46,986
 
5
 
34,516
 
2,211
 
17,164
 
119,859
Committed unconditionally revocable credit lines
3
 
79,460
 
65,749
 
0
 
452
 
4
 
0
 
145,665
Traded products exposure, gross
2,4
 
14,900
 
5,034
 
0
 
46,076
 
66,009
of which: over-the-counter derivatives
 
11,705
 
4,594
 
0
 
17,371
 
33,670
of which: securities financing transactions
 
186
 
0
 
0
 
18,352
 
18,538
of which: exchange-traded derivatives
 
3,009
 
440
 
0
 
10,353
 
13,802
Total credit-impaired exposure, gross
1
 
1,397
 
3,714
 
0
 
595
 
930
 
0
 
6,637
of which: stage 3
 
1,324
 
3,358
 
0
 
549
 
69
 
0
 
5,300
of which: PCI
 
73
 
356
 
0
 
46
 
861
 
0
 
1,337
Total allowances and provisions for expected credit losses
 
292
 
1,512
 
0
 
379
 
318
 
6
 
2,507
of which: stage 1
 
97
 
269
 
0
 
110
 
4
 
6
 
487
of which: stage 2
 
68
 
247
 
0
 
142
 
2
 
0
 
459
of which: stage 3
 
121
 
960
 
0
 
124
 
48
 
0
 
1,253
of which: PCI
 
7
 
36
 
0
 
2
 
264
 
0
 
309
1 IFRS 9 gross
 
exposure for banking products
 
includes the following financial
 
instruments in scope of
 
expected credit loss measurement:
 
balances at central
 
banks, amounts due from
 
banks, loans and
 
advances to
customers, other
 
financial assets at
 
amortized cost,
 
guarantees and
 
irrevocable loan commitments.
 
2 Internal management
 
view of credit
 
risk, which
 
differs in certain
 
respects from
 
IFRS Accounting
 
Standards.
 
3 Commitments that can be canceled by UBS at any time but expose UBS to credit risk if the client has the ability to draw the facility before UBS can take action. These commitments are subject to expected credit loss
requirements.
 
4 As counterparty risk for traded products is managed at the counterparty level, no further split between exposures in the
 
Investment Bank, Non-core and Legacy, and Group Items is provided.
 
Collateralization of Loans and advances to customers
1
Global Wealth Management
Personal & Corporate Banking
USD m, except where indicated
31.3.25
31.12.24
31.3.25
31.12.24
Secured by collateral
 
289,609
 
290,053
 
246,679
 
232,913
Residential real estate
 
101,415
 
106,124
 
196,775
 
184,404
Commercial / industrial real estate
 
9,218
 
9,312
 
37,903
 
36,682
Cash
 
28,025
 
28,418
 
2,732
 
2,624
Equity and debt instruments
 
124,274
 
120,223
 
2,598
 
2,778
Other collateral
2
 
26,677
 
25,977
 
6,671
 
6,424
Subject to guarantees
 
1,723
 
1,715
 
7,092
 
6,886
Uncollateralized and not subject to guarantees
 
4,092
 
4,088
 
27,651
 
27,070
Total loans and advances to customers, gross
 
295,424
 
295,856
 
281,423
 
266,869
Allowances
 
(212)
 
(221)
 
(1,334)
 
(1,271)
Total loans and advances to customers, net of allowances
 
295,212
 
295,635
 
280,089
 
265,598
Collateralized loans and advances to customers as a percentage of
 
total loans and advances to customers, gross (%)
 
98.0
 
98.0
 
87.7
 
87.3
1 Collateral arrangements generally incorporate a range of collateral, including
 
cash, equity and debt instruments, real estate, and other collateral. For the
 
purposes of this disclosure, UBS applies a risk-based approach
that generally prioritizes
 
collateral according to
 
its liquidity profile.
 
In the case
 
of loan facilities
 
with funded and
 
unfunded elements,
 
the collateral is
 
first allocated to
 
the funded element.
 
For legacy Credit
 
Suisse
infrastructure, a
 
risk-based approach is
 
applied that generally
 
prioritizes real estate
 
collateral and prioritizes
 
other collateral according
 
to its liquidity
 
profile. In the
 
case of loan
 
facilities with funded
 
and unfunded
elements, the collateral
 
is proportionately allocated.
 
2 Includes but is not limited
 
to life insurance contracts,
 
rights in respect of
 
subscription or capital commitments
 
from fund partners,
 
inventory, gold and
 
other
commodities.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Risk management and
 
control
 
33
Market risk
As part
 
of going
 
live with
 
the Fundamental
 
Review of
 
the Trading
 
Book (FRTB)
 
framework for
 
the calculation
 
of
market-risk-related regulatory
 
capital requirements
 
on 1 January
 
2025, UBS
 
has adopted
 
the standardized
 
approach
for all
 
legal entities
 
regulated by
 
the Swiss
 
Financial Market
 
Supervisory Authority
 
(FINMA), including
 
the UBS
 
Group.
The FINMA value-at-risk
 
(VaR) multiplier derived
 
from negative backtesting
 
exceptions for
 
market risk
 
risk-weighted
assets is no longer relevant for the regulatory capital
 
calculation.
The UBS
 
Group excluding certain
 
legacy Credit
 
Suisse components continued
 
to maintain generally
 
low levels
 
of
management VaR. Average management VaR (1-day,
 
95% confidence level) in the first quarter of 2025 decreased
to USD 9m from USD 11m, mainly driven by the
 
Investment Bank.
Average management
 
VaR (1-day,
 
98% confidence
 
level) of
 
the legacy
 
Credit Suisse
 
components in
 
the first
 
quarter
of
 
2025
 
decreased
 
to
 
USD 4m
 
from
 
USD 6m,
 
driven
 
by
 
continued
 
strategic
 
migration
 
of
 
positions
 
to
 
UBS
 
and
exposure reductions in Non-core and Legacy.
Management value-at-risk (1-day, 95% confidence level, 5 years of historical data) of the business divisions and
 
Group Items excluding certain legacy Credit Suisse components, by general market risk type
1,2
Average by risk type
USD m
Min.
Max.
Period end
Average
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Global Wealth Management
 
1
 
2
 
1
 
2
 
0
 
1
 
2
 
0
 
0
Personal & Corporate Banking
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
Asset Management
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
Investment Bank
 
1
 
14
 
8
 
8
 
2
 
14
 
10
 
4
 
3
Non-core and Legacy
 
1
 
1
 
1
 
1
 
0
 
1
 
1
 
0
 
0
Group Items
 
3
 
6
 
4
 
4
 
1
 
3
 
3
 
1
 
0
Diversification effect
3,4
 
(6)
 
(6)
 
(1)
 
(4)
 
(4)
 
(1)
 
0
Total as of 31.3.25
 
2
 
15
 
8
 
9
 
2
 
15
 
11
 
5
 
3
Total as of 31.12.24
 
5
 
17
 
11
 
11
 
2
 
17
 
10
 
4
 
6
Management value-at-risk (1-day, 98% confidence level, 2 years of historical data) of certain legacy Credit
 
Suisse
components of the business divisions and Group Items, by general market risk type
1,2
Average by risk type
USD m
Min.
Max.
Period end
Average
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Global Wealth Management
 
1
 
1
 
1
 
1
 
1
 
0
 
0
 
0
 
0
Personal & Corporate Banking
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
Asset Management
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
Investment Bank
 
1
 
2
 
1
 
1
 
1
 
0
 
1
 
0
 
0
Non-core and Legacy
 
2
 
5
 
2
 
4
 
0
 
2
 
3
 
1
 
0
Group Items
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
Diversification effect
3,4
 
(1)
 
(1)
 
0
 
0
 
(1)
 
0
 
0
Total as of 31.3.25
 
3
 
6
 
3
 
4
 
1
 
2
 
3
 
1
 
0
Total as of 31.12.24
 
5
 
9
 
5
 
6
 
2
 
3
 
5
 
1
 
0
1 The legacy Credit Suisse components
 
not included in the UBS Group management
 
VaR predominantly reflect the portfolio
 
in Non-core and Legacy. These
 
positions continue to be managed on legacy Credit
 
Suisse
infrastructure based on legacy Credit Suisse management VaR methodology until full migration of these positions to UBS infrastructure or the liquidation of the positions. This process is ongoing, and the management
VaR of the legacy Credit Suisse components is expected to continue decreasing over
 
time.
 
2 Statistics at individual levels may not be summed
 
to deduce the corresponding aggregate figures. The minima and maxima
for each level may occur on different days,
 
and, likewise, the VaR
 
for each business division or risk type,
 
being driven by the extreme loss tail of
 
the corresponding distribution of simulated profits and
 
losses for that
business division or risk type, may well
 
be driven by different days in the historical
 
time series, rendering invalid
 
the simple summation of figures to arrive
 
at the aggregate total.
 
3 The difference between the
 
sum
of the standalone VaR
 
for the business divisions and
 
Group Items and the total
 
VaR.
 
4 As the minima and
 
maxima for different business
 
divisions and Group Items occur
 
on different days, it
 
is not meaningful to
calculate a portfolio diversification effect.
Economic value of equity and net interest income
 
sensitivity
The economic value of equity
 
(EVE) sensitivity in the UBS
 
Group banking book to a
 
+1-basis-point parallel shift in
yield curves
 
was negative
 
USD 38.7m as
 
of 31 March
 
2025, compared
 
with negative
 
USD 37.3m as
 
of 31 December
2024.
 
This excluded
 
the sensitivity
 
of USD 7.4m
 
from additional
 
tier 1 (AT1)
 
capital instruments
 
(as per
 
specific
FINMA requirements) in contrast
 
to general Basel
 
Committee on Banking
 
Supervision (BCBS)
 
guidance. Exposure in
the banking book of the UBS Group increased during the first quarter of 2025, predominantly driven by issuances
of AT1 capital instruments during the quarter.
The majority of our interest rate risk in the
 
banking book (IRRBB) as of 31 March 2025 was a reflection of the
 
net
asset duration
 
that we ran
 
to offset
 
our modeled
 
sensitivity of
 
net USD 30.3m
 
(31 December 2024: USD 29.4m)
assigned
 
to
 
our
 
equity,
 
goodwill
 
and
 
real
 
estate,
 
with
 
the
 
aim
 
of
 
generating
 
a
 
stable
 
net
 
interest
 
income
contribution. Of this, USD
 
18.1m and USD 10.5m
 
were attributable to
 
the US dollar and the
 
Swiss franc portfolios,
respectively,
 
(31 December 2024: USD 17.1m and USD
 
10.6m, respectively).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Risk management and
 
control
 
34
In addition to
 
the aforementioned
 
sensitivity, we
 
calculate the
 
six interest
 
rate shock
 
scenarios prescribed
 
by FINMA.
The “Parallel up” scenario,
 
assuming all positions
 
were measured at
 
fair value, was
 
the most severe as
 
of 31 March
2025
 
and
 
would
 
have
 
resulted
 
in
 
a
 
change
 
in
 
EVE
 
of
 
negative
 
USD 7.1bn,
 
or
 
8.1%,
 
of
 
our
 
tier 1
 
capital
(31 December
 
2024:
 
negative
 
USD 6.7bn,
 
or
 
7.6%),
 
which
 
is
 
well
 
below
 
the
 
15%
 
threshold
 
as
 
per
 
the
 
BCBS
supervisory outlier test for high levels of IRRBB.
The immediate effect
 
on our tier 1
 
capital in the
 
“Parallel up” scenario
 
as of 31 March
 
2025 would have
 
been a
decrease of approximately
 
USD 0.7bn, or 0.8%,
 
(31 December 2024: USD 0.9bn,
 
or 1.0%), reflecting the
 
fact that
the
 
vast
 
majority
 
of
 
our
 
banking
 
book
 
is
 
accrual
 
accounted
 
or
 
subject
 
to
 
hedge
 
accounting.
 
The
 
“Parallel
 
up”
scenario would subsequently have a positive effect
 
on net interest income, assuming a constant
 
balance sheet.
As the overall interest rate risk sensitivity shows a greater
 
impact from slower asset repricing compared with faster
liabilities repricing,
 
the “Parallel
 
down“ scenario
 
was the
 
most beneficial
 
as of
 
31 March 2025
 
and would
 
have
resulted in
 
a change
 
in EVE
 
of positive
 
USD 7.5bn (31 December 2024:
 
positive USD 7.2bn) and
 
a small
 
positive
immediate effect on our tier 1 capital.
›
Refer to “Interest rate risk in the banking book” in the “Risk management and control”
 
section of the UBS Group
Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information about the
management of interest rate risk in the banking book
›
Refer to “Sensitivity to interest rate movements” in the “Group performance” section of this report for more
information about the effects of increases in interest rates on the net interest income of our banking book
Interest rate risk – banking book
31.3.25
USD m
Effect on EVE
1
 
– FINMA
Effect on EVE
1
 
– BCBS
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 (AT1)
capital instruments
Total
+1 bp
 
(9.9)
 
(1.6)
 
(0.3)
 
(26.6)
 
(0.3)
 
(38.7)
 
7.4
 
(31.3)
Parallel up
2
 
(1,449.0)
 
(303.5)
 
(62.3)
 
(5,182.3)
 
(79.6)
 
(7,076.8)
 
1,334.4
 
(5,742.4)
Parallel down
2
 
1,541.5
 
335.4
 
74.9
 
5,455.0
 
81.1
 
7,487.8
 
(1,593.0)
 
5,894.7
Steepener
3
 
(786.0)
 
(21.3)
 
(15.2)
 
(1,399.0)
 
(20.0)
 
(2,241.6)
 
297.3
 
(1,944.3)
Flattener
4
 
519.3
 
(28.6)
 
3.3
 
199.5
 
3.2
 
696.8
 
7.9
 
704.6
Short-term up
5
 
(83.8)
 
(119.7)
 
(19.3)
 
(1,946.8)
 
(27.4)
 
(2,197.0)
 
587.6
 
(1,609.4)
Short-term down
6
 
53.7
 
119.1
 
19.2
 
2,048.1
 
28.0
 
2,268.1
 
(611.7)
 
1,656.4
31.12.24
USD m
Effect on EVE
1
 
– FINMA
Effect on EVE
1
 
– BCBS
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 (AT1)
capital instruments
Total
+1 bp
 
(10.5)
 
(1.4)
 
(0.3)
 
(24.6)
 
(0.5)
 
(37.3)
 
5.5
 
(31.7)
Parallel up
2
 
(1,509.7)
 
(263.7)
 
(65.5)
 
(4,758.9)
 
(95.6)
 
(6,693.4)
 
1,000.4
 
(5,693.0)
Parallel down
2
 
1,643.9
 
295.9
 
76.2
 
5,068.6
 
101.1
 
7,185.8
 
(1,173.0)
 
6,012.8
Steepener
3
 
(749.1)
 
(10.4)
 
(12.7)
 
(1,255.4)
 
(9.7)
 
(2,037.3)
 
168.0
 
(1,869.3)
Flattener
4
 
464.0
 
(33.3)
 
(0.2)
 
161.0
 
(10.5)
 
581.0
 
61.0
 
642.1
Short-term up
5
 
(149.4)
 
(112.2)
 
(22.8)
 
(1,820.7)
 
(46.1)
 
(2,151.1)
 
484.4
 
(1,666.7)
Short-term down
6
 
132.6
 
112.2
 
23.3
 
1,931.8
 
46.6
 
2,246.5
 
(504.4)
 
1,742.2
1 Economic value
 
of equity.
 
2 Rates across all
 
tenors move by ±150
 
bps for Swiss
 
franc, ±200 bps for
 
euro and US
 
dollar, and
 
±250 bps for pound
 
sterling.
 
3 Short-term rates
 
decrease and long-term rates
increase.
 
4 Short-term rates increase and long-term rates decrease.
 
5 Short-term rates increase more than long-term rates.
 
6 Short-term rates decrease more than long-term rates.
Country risk
We remain
 
watchful of
 
a range
 
of geopolitical
 
developments and
 
political changes
 
in a
 
number of
 
countries, as
well as
 
global trade
 
relations, including
 
policies related
 
to tariffs,
 
and international
 
tensions from
 
the Russia–Ukraine
war.
 
We also continue to monitor conflicts in the Middle
 
East. As of 31 March 2025, our direct
 
exposure to Israel
was less than
 
USD 0.5bn and our
 
direct exposure
 
to Gulf Cooperation
 
Council countries was less
 
than USD 5bn,
while our direct exposure
 
to Egypt and Jordan
 
was limited, and
 
there was no direct
 
exposure to Iran, Iraq,
 
Lebanon
or Syria. Our direct exposure
 
to Russia as of 31 March
 
2025 was less than USD 0.5bn, and our
 
direct exposure to
Belarus
 
and
 
Ukraine
 
remained
 
immaterial.
 
Potential
 
second-order
 
impacts,
 
such
 
as
 
European
 
energy
 
security,
continue to be monitored.
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Risk management and
 
control
 
35
In the first quarter
 
of 2025, inflation abated
 
to some extent in
 
major Western economies, although there are
 
still
concerns
 
regarding
 
future
 
developments,
 
and
 
central
 
banks’
 
monetary
 
policies
 
and
 
trade
 
policies
 
and
 
barriers
remain
 
in
 
the
 
spotlight.
 
In
 
China,
 
tariffs
 
imposed
 
by
 
the
 
US,
 
stress
 
in
 
the
 
property
 
sector
 
and
 
strained
 
local
government
 
finances
 
continue
 
to
 
have
 
an
 
adverse
 
impact
 
on
 
economic
 
growth,
 
raising
 
the
 
risk
 
of
 
financial
instability. This combination of
 
factors translates into
 
a more uncertain
 
and volatile environment, which
 
increases
the risk of financial market disruption.
We continue to monitor ongoing trade policy
 
disputes, as well as economic and political
 
developments in addition
to those mentioned above. As of 31 March 2025, our exposure to emerging market countries was less than 10%
of our total country exposure and mainly to
 
certain countries in Asia.
›
Refer to the “Risk management and control” section of the UBS Group Annual Report 2024, available under
“Annual reporting” at
ubs.com/investors
, for more information
Non-financial risk
Compliance risk
Achieving
 
fair
 
outcomes
 
for
 
our
 
clients,
 
upholding
 
market
 
integrity
 
and
 
cultivating
 
the
 
highest
 
standards
 
of
employee conduct
 
are of
 
critical importance
 
to us.
 
Therefore,
 
we maintain
 
a conduct
 
risk framework
 
across our
activities, which is designed to align our standards and
 
conduct with these objectives and to retain momentum
 
on
fostering a strong culture.
Suitability risk,
 
product selection,
 
cross-divisional service
 
offerings, quality
 
of advice
 
and price
 
transparency continue
to be
 
areas of
 
heightened focus for
 
UBS and
 
for the
 
industry as a
 
whole. Cross-border
 
risk (including the
 
risk of
unintended
 
permanent
 
establishment)
 
remains
 
an
 
area
 
of
 
regulatory
 
attention
 
for
 
global
 
financial
 
institutions,
including a
 
focus on
 
market access,
 
such as
 
third-country market
 
access into
 
the European
 
Economic Area.
 
We
maintain
 
a
 
series
 
of
 
controls designed
 
to
 
address
 
these
 
risks,
 
and
 
we
 
are
 
increasing the
 
number
 
of
 
automated
controls, thereby increasing overall control coverage.
Reputational
 
risk,
 
regulatory
 
fragmentation
 
related
 
to
 
environmental,
 
social
 
and
 
governance
 
topics,
 
and
 
the
elevated risk of greenwashing arising from our service offering,
 
disclosures and commitments remain key risks for
2025.
Financial crime risk
Financial crime, including
 
money laundering, terrorist
 
financing, sanctions violations,
 
fraud, bribery and
 
corruption,
presents a major risk, as technological innovation and geopolitical developments increase the complexity of doing
business and heightened regulatory attention continues.
An effective financial crime prevention
 
program therefore remains essential,
 
and we continue to focus on
 
strategic
enhancements to our global anti-money-laundering, know-your-client and sanctions
 
programs. Money laundering
and
 
financial
 
fraud
 
techniques
 
are
 
becoming
 
increasingly
 
sophisticated,
 
and
 
geopolitical
 
volatility
 
makes
 
the
sanctions
 
landscape more
 
complex.
 
The
 
extensive
 
and
 
continuously evolving
 
sanctions arising
 
from
 
the
 
Russia–
Ukraine war
 
require constant
 
attention to
 
prevent circumvention
 
risks, while
 
conflicts in
 
the Middle
 
East may
 
further
increase terrorist-financing
 
risks. Complex
 
investment and
 
technology restrictions, coupled
 
with relatively
 
limited
asset-freeze sanctions,
 
apply
 
in the
 
case of
 
China, which
 
has in
 
response imposed
 
both its
 
own restrictions
 
and
domestic laws countering the sanctions,
 
and we will continue to closely monitor this
 
situation as it evolves.
Operational risk
There is an increased risk of cyber-related operational disruption
 
to business activities at
 
our locations and those of
third-party suppliers due
 
to operating a
 
more complex set
 
of legal entities since
 
the acquisition of
 
Credit Suisse and
the increasingly dynamic threat environment, which is intensified by
 
current geopolitical factors and evidenced by
continuing high volumes
 
of, and the increasing
 
sophistication of, cyberattacks
 
against financial institutions
 
globally
and on third-party service providers.
We remain on
 
heightened alert to
 
respond to and
 
mitigate elevated cyber-
 
and information-security threats, and
continue to invest in improving our technology infrastructure and information-security
 
governance to improve our
defense, detection and response capabilities
 
against attacks. In addition, we operate
 
a global framework designed
to drive enhancements in operational resilience across all business divisions and relevant jurisdictions,
 
and we also
work
 
with
 
the
 
third-party
 
service
 
providers
 
that
 
are
 
of
 
critical
 
importance
 
to
 
our
 
operations
 
to
 
assess
 
their
operational resilience against our standards and
 
to mitigate any identified risks.
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Risk management and
 
control
 
36
The
 
increasing
 
interest
 
in
 
data-driven
 
advisory
 
processes
 
and
 
the
 
use
 
of
 
artificial
 
intelligence
 
(AI)
 
and
 
machine
learning are opening up new questions related
 
to the fairness of AI
 
algorithms, data life-cycle management, data
ethics, data privacy and security, and records
 
management.
Legal entity
 
integration, including
 
that of
 
existing Credit
 
Suisse businesses,
 
and the
 
closing of
 
legacy businesses
introduce operational
 
complexity and
 
the risk
 
that businesses
 
in wind-down
 
are not
 
effectively managed.
 
These
risks continue
 
to be
 
carefully monitored
 
in addition
 
to the
 
delivery of
 
consolidated financial
 
and regulatory
 
reporting
submissions.
Capital management
The
 
disclosures
 
in
 
this
 
section
 
are
 
provided
 
for
 
UBS Group AG
 
on
 
a
 
consolidated
 
basis
 
and
 
focus
 
on
 
key
developments during
 
the reporting
 
period and
 
information in
 
accordance with
 
the Basel III
 
framework, as
 
applicable
to Swiss systemically relevant banks (SRBs).
 
They should be read in conjunction
 
with “Capital management” in the
“Capital, liquidity and funding,
 
and balance sheet” section
 
of the UBS Group
 
Annual Report 2024, available
 
under
“Annual
 
reporting”
 
at
ubs.com/investors
,
 
which
 
provides
 
more
 
information
 
about
 
our
 
capital
 
management
objectives, planning and activities, as
 
well as the Swiss SRB total loss-absorbing capacity
 
(TLAC) framework.
In Switzerland, the
 
amendments to the Capital
 
Adequacy Ordinance (the CAO) that
 
incorporate the final Basel III
standards into
 
Swiss law,
 
including the
 
five new
 
ordinances that
 
contain the
 
implementing provisions
 
for the
 
revised
CAO, entered into force on 1 January 2025.
UBS Group AG
 
is
 
a
 
holding
 
company
 
and
 
conducts
 
substantially
 
all
 
of
 
its
 
operations
 
through
 
UBS AG
 
and
subsidiaries thereof. UBS Group AG and UBS AG contribute a significant portion of their respective capital to, and
provide substantial
 
liquidity to,
 
such subsidiaries.
 
Many of
 
these subsidiaries
 
are subject
 
to regulations
 
requiring
compliance with minimum capital, liquidity
 
and similar requirements.
›
Refer to the 31 March 2025 Pillar 3 Report, which will be available as of 8 May 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about additional regulatory disclosures for UBS Group AG on a
consolidated basis, as well as the significant regulated subsidiaries and sub-groups of UBS Group AG
›
Refer to the
 
UBS AG first
 
quarter 2025
 
report, which
 
will be available
 
as of 8 May
 
2025 under
 
“Quarterly
 
reporting” at
ubs.com/investors
, for more information
 
about capital
 
and other
 
regulatory
 
information
 
for UBS AG
 
consolidated,
 
in
accordance
 
with the Basel
 
III framework,
 
as applicable
 
to Swiss SRBs
›
Refer to “Developments related to the implementation of the final Basel III standards” in the “Recent
developments” section for more information about the incorporation of the final Basel III standards in Switzerland
and globally; for specific impacts of the implementation of the final Basel III standards on Group risk-weighted
assets (RWA) and leverage ratio denominator (LRD), refer to “Risk-weighted assets” and “Leverage ratio
denominator” in this section
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Capital management
 
37
We are
 
subject to the going
 
and gone concern requirements
 
of the Swiss
 
CAO, which include the
 
too-big-to-fail
(TBTF) provisions
 
applicable to Swiss
 
SRBs. The
 
table below provides
 
the RWA-
 
and LRD-based requirements
 
and
information as of 31 March 2025.
Effective 1 January 2025,
 
a Pillar 2 capital
 
add-on for uncollateralized
 
exposures to hedge
 
funds, private equity
 
and
family offices has been introduced.
 
This resulted in an increase of
 
16 basis points in the RWA-based
 
going concern
capital requirement as of 31 March 2025.
Swiss SRB going and gone concern requirements and information
As of 31.3.25
RWA
LRD
USD m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
 
14.91
1
 
72,044
 
5.00
1
 
78,079
Common equity tier 1 capital
 
10.56
2
 
51,026
 
3.50
3
 
54,655
of which: minimum capital
 
4.50
 
21,747
 
1.50
 
23,424
of which: buffer capital
 
5.50
 
26,580
 
2.00
 
31,232
of which: countercyclical buffer
 
0.44
 
2,145
Maximum additional tier 1 capital
 
4.35
2
 
21,019
 
1.50
 
23,424
of which: additional tier 1 capital
 
3.50
 
16,915
 
1.50
 
23,424
of which: additional tier 1 buffer capital
 
0.80
 
3,866
Eligible going concern capital
Total going concern capital
 
18.18
 
87,837
 
5.62
 
87,837
Common equity tier 1 capital
 
14.31
 
69,152
 
4.43
 
69,152
Total loss-absorbing additional tier 1 capital
 
3.87
 
18,684
 
1.20
 
18,684
of which: high-trigger loss-absorbing additional tier 1 capital
 
3.87
 
18,684
 
1.20
 
18,684
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
 
10.73
7
 
51,831
 
3.75
7
 
58,559
of which: base requirement including add-ons for market share and LRD
 
10.73
 
51,831
 
3.75
 
58,559
Eligible gone concern capital
Total gone concern loss-absorbing capacity
 
20.55
 
99,331
 
6.36
 
99,331
Total tier 2 capital
 
0.04
 
205
 
0.01
 
205
of which: non-Basel III-compliant tier 2 capital
 
0.04
 
205
 
0.01
 
205
TLAC-eligible senior unsecured debt
 
20.51
 
99,126
 
6.35
 
99,126
Total loss-absorbing capacity
Required total loss-absorbing capacity
 
25.63
 
123,876
 
8.75
 
136,639
Eligible total loss-absorbing capacity
 
38.73
 
187,168
 
11.99
 
187,168
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
 
483,276
Leverage ratio denominator
 
1,561,583
1 Includes applicable
 
add-ons of
 
1.60% for
 
risk-weighted assets
 
(RWA) and
 
0.50% for leverage
 
ratio denominator
 
(LRD), of
 
which 16
 
basis points
 
for RWA
 
reflect the Pillar
 
2 capital
 
add-on for
 
uncollateralized
exposures to hedge funds, private equity and family offices, effective 1 January 2025.
 
2 Includes the Pillar 2 add-on for uncollateralized exposures to hedge funds, private equity and family offices of 0.11% for CET1
capital and 0.05% for
 
AT1 capital, effective
 
1 January 2025. For
 
AT1 capital, under
 
Pillar 1 requirements,
 
a maximum of 4.3% of
 
AT1 capital can
 
be used to meet
 
going concern requirements; 4.35%
 
includes the
aforementioned Pillar 2
 
capital add-on.
 
3 Our CET1 leverage
 
ratio requirement of
 
3.50% consists of
 
a 1.5% base
 
requirement, a 1.5%
 
base buffer capital
 
requirement, a 0.25% LRD
 
add-on requirement and
 
a
0.25% market share add-on requirement
 
based on our Swiss credit business.
 
4 A maximum of 25% of the gone
 
concern requirements can be met with
 
instruments that have a remaining maturity
 
of between one
and two years. Once at least 75%
 
of the minimum gone concern requirement has been met with
 
instruments that have a remaining maturity of greater
 
than two years, all instruments that have a
 
remaining maturity
of between one and two years remain eligible to be included in the total gone concern capital.
 
5 From 1 January 2023, the resolvability discount on the
 
gone concern capital requirements for systemically important
banks (SIBs) has been replaced with reduced base gone concern capital requirements equivalent to 75% of the total going concern requirements (excluding countercyclical buffer requirements and the Pillar 2 add-on).
 
6 As of July
 
2024, the Swiss
 
Financial Market Supervisory
 
Authority (FINMA) has
 
the authority to impose
 
a surcharge of
 
up to 25% of
 
the total going
 
concern capital requirements (excluding
 
countercyclical buffer
requirements and the Pillar 2 add-on) should obstacles to an SIB’s resolvability be identified
 
in future resolvability assessments.
 
7 Includes applicable add-ons of 1.08% for RWA and 0.38% for LRD.
Additional capital requirements for
 
UBS Group AG consolidated under current
 
requirements
As a result of the acquisition of the Credit Suisse
 
Group in 2023, the capital add-ons for market share
 
and LRD for
UBS Group AG consolidated will increase commensurate with the Group’s increased market
 
share and higher LRD
after
 
the
 
acquisition.
 
We
 
currently
 
estimate
 
that
 
this
 
will
 
add
 
around
 
USD 10bn
 
to
 
the
 
Group’s
 
tier 1
 
capital
requirement, when
 
fully phased
 
in. The phase-in
 
of the
 
increased capital
 
requirements will
 
commence from
 
the end
of 2025 and will be completed by the beginning
 
of 2030, at the latest.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Capital management
 
38
Total loss-absorbing capacity
The table below provides Swiss SRB going and gone concern information based on the Swiss SRB
 
framework and
requirements that are discussed under “Capital management” in the “Capital, liquidity and funding, and
 
balance
sheet” section of
 
the UBS Group
 
Annual Report 2024,
 
available under “Annual reporting”
 
at
ubs.com/investors
.
Changes
 
to
 
the
 
Swiss
 
SRB
 
framework
 
and
 
requirements
 
after
 
the
 
publication
 
of
 
our
 
Annual
 
Report
 
2024
 
are
described above.
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
 
87,837
 
87,739
Total tier 1 capital
 
87,837
 
87,739
Common equity tier 1 capital
 
69,152
 
71,367
Total loss-absorbing additional tier 1 capital
 
18,684
 
16,372
of which: high-trigger loss-absorbing additional tier 1 capital
 
18,684
 
15,126
of which: low-trigger loss-absorbing additional tier 1 capital
 
1,245
Eligible gone concern capital
Total gone concern loss-absorbing capacity
 
99,331
 
97,655
Total tier 2 capital
 
205
 
207
of which: non-Basel III-compliant tier 2 capital
 
205
 
207
TLAC-eligible senior unsecured debt
 
99,126
 
97,449
Total loss-absorbing capacity
Total loss-absorbing capacity
 
187,168
 
185,394
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
 
483,276
 
498,538
Leverage ratio denominator
 
1,561,583
 
1,519,477
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
 
18.2
 
17.6
of which: common equity tier 1 capital ratio
 
14.3
 
14.3
Gone concern loss-absorbing capacity ratio
 
20.6
 
19.6
Total loss-absorbing capacity ratio
 
38.7
 
37.2
Leverage ratios (%)
Going concern leverage ratio
 
5.6
 
5.8
of which: common equity tier 1 leverage ratio
 
4.4
 
4.7
Gone concern leverage ratio
 
6.4
 
6.4
Total loss-absorbing capacity leverage ratio
 
12.0
 
12.2
Total loss-absorbing capacity and movement
 
Our TLAC increased by USD 1.8bn to USD 187.2bn
 
in the first quarter of 2025.
Going concern capital and movement
Our
 
going
 
concern
 
capital
 
increased
 
by
 
USD 0.1bn
 
to
 
USD 87.8bn.
 
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.
›
Refer to “Share information and earnings per share” in this section for more information about our share
repurchase programs
Our loss-absorbing additional
 
tier 1 (AT1) capital
 
increased by USD 2.3bn to
 
USD 18.7bn, 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.
Following the approval of a maximum amount of conversion capital by UBS Group AG’s shareholders at the 2024
Annual General
 
Meeting, AT1
 
capital instruments
 
issued from
 
the beginning
 
of the
 
fourth quarter
 
of 2023
 
are,
upon the
 
occurrence of
 
a trigger event
 
or a
 
viability event,
 
subject to
 
conversion into
 
UBS Group AG
 
ordinary shares
rather than a
 
write-down. AT1 capital instruments
 
issued prior to
 
the fourth quarter of
 
2023 remain subject to
 
a
write-down.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Capital management
 
39
Gone concern loss-absorbing capacity and movement
Our total gone concern loss-absorbing capacity increased by USD 1.7bn to USD 99.3bn and included
 
USD 99.1bn of
TLAC-eligible
 
senior
 
unsecured
 
debt instruments.
 
The increase
 
of USD
 
1.7bn
 
mainly
 
reflected
 
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.
 
›
Refer to “Bondholder information” at
 
ubs.com/investors
for more information about the eligibility of capital and
senior unsecured debt instruments and about key features and terms and conditions of capital instruments
Loss-absorbing capacity and leverage ratios
Our CET1 capital
 
ratio was broadly
 
unchanged at 14.3%,
 
reflecting a USD 2.2bn
 
decrease in CET1 capital
 
offset by
a USD 15.3bn decrease in RWA.
 
Our CET1
 
leverage ratio
 
decreased to
 
4.4% from
 
4.7%, reflecting
 
a USD 2.2bn
 
decrease in
 
CET1 capital
 
and a
USD 42.1bn increase in the LRD.
Our going concern
 
capital ratio increased
 
to 18.2% from
 
17.6%, largely reflecting
 
a USD 15.3bn decrease
 
in RWA.
Our going concern leverage
 
ratio decreased to 5.6%
 
from 5.8%, largely reflecting
 
a USD 42.1bn increase
 
in the LRD.
Our
 
gone
 
concern
 
loss-absorbing
 
capacity
 
ratio
 
increased
 
to
 
20.6%
 
from
 
19.6%,
 
due
 
to
 
the
 
aforementioned
decrease in RWA and an increase in gone concern
 
loss-absorbing capacity of USD 1.7bn.
 
Our gone concern leverage ratio
 
was stable at 6.4%
 
as the aforementioned increase in
 
the LRD was offset
 
by an
increase in gone concern loss-absorbing capacity
 
of USD 1.7bn.
Swiss SRB total loss-absorbing capacity movement
USD m
Going concern capital
Swiss SRB
Common equity tier 1 capital as of 31.12.24
 
71,367
Operating profit / (loss) before tax
 
2,132
Current tax (expense) / benefit
 
(460)
Foreign currency translation effects, before tax
 
770
Share repurchase program
 
(506)
Capital reserve for expected future share repurchases
 
(2,500)
Compensation-
 
and own-share-related capital components
 
(453)
Eligible deferred tax assets on temporary differences (incl. excess
 
over threshold)
 
(196)
Other
1
 
(1,003)
Common equity tier 1 capital as of 31.3.25
 
69,152
Loss-absorbing additional tier 1 capital as of 31.12.24
 
16,372
Issuance of high-trigger loss-absorbing additional tier 1 capital
 
3,000
Call of low-trigger loss-absorbing additional tier 1 capital
 
(1,250)
Interest rate risk hedge, foreign currency translation and other effects
 
562
Loss-absorbing additional tier 1 capital as of 31.3.25
 
18,684
Total going concern capital as of 31.12.24
 
87,739
Total going concern capital as of 31.3.25
 
87,837
Gone concern loss-absorbing capacity
Tier 2 capital as of 31.12.24
 
207
Interest rate risk hedge, foreign currency translation and other effects
 
(1)
Tier 2 capital as of 31.3.25
 
205
TLAC-eligible unsecured debt as of 31.12.24
 
97,449
Issuance of TLAC-eligible senior unsecured debt
 
3,046
Call of TLAC-eligible senior unsecured debt
 
(3,714)
Debt no longer eligible as gone concern loss-absorbing capacity
 
due to residual tenor falling to below one year
 
(165)
Interest rate risk hedge, foreign currency translation and other effects
 
2,510
TLAC-eligible unsecured debt as of 31.3.25
 
99,126
Total gone concern loss-absorbing capacity as of 31.12.24
 
97,655
Total gone concern loss-absorbing capacity as of 31.3.25
 
99,331
Total loss-absorbing capacity
Total loss-absorbing capacity as of 31.12.24
 
185,394
Total loss-absorbing capacity as of 31.3.25
 
187,168
1 Includes dividend accruals for 2025 (negative USD 0.8bn) and movements related to other items.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Capital management
 
40
Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital
USD m
31.3.25
31.12.24
Total equity under IFRS Accounting Standards
 
87,590
 
85,574
Equity attributable to non-controlling interests
 
(405)
 
(494)
Defined benefit plans, net of tax
 
(949)
 
(833)
Deferred tax assets recognized for tax loss carry-forwards
 
(2,210)
 
(2,288)
Deferred tax assets for unused tax credits
 
(817)
 
(688)
Deferred tax assets on temporary differences, excess over threshold
 
(1,059)
 
(803)
Goodwill, net of tax
1
 
(5,726)
 
(5,702)
Intangible assets, net of tax
 
(697)
 
(702)
Compensation-related components (not recognized in net profit)
 
(2,656)
 
(2,800)
Expected losses on advanced internal ratings-based portfolio less provisions
 
(578)
 
(568)
Unrealized (gains) / losses from cash flow hedges, net of tax
 
2,051
 
2,585
Own credit related to (gains) / losses on financial liabilities
 
measured at fair value that existed at the balance sheet date, net of tax
 
895
 
1,178
Own credit related to (gains) / losses on derivative financial instruments
 
that existed at the balance sheet date
 
(70)
 
(62)
Prudential valuation adjustments
 
(165)
 
(167)
Accruals for dividends to shareholders for 2024
 
(2,835)
 
(2,835)
Capital reserve for expected future share repurchases
 
(2,500)
Other
 
(718)
2
 
(25)
Total common equity tier 1 capital
 
69,152
 
71,367
1 Includes goodwill related to
 
significant investments in
 
financial institutions of USD
 
19m as of 31
 
March 2025 (USD 19m
 
as of 31 December
 
2024) presented on the
 
balance sheet line Investments
 
in associates.
 
2 Includes dividend accruals for 2025 and other items.
Additional information
Sensitivity to currency movements
 
Risk-weighted assets
We estimate that a 10% depreciation of the US dollar against other currencies would have increased our RWA by
USD 21bn and
 
our CET1
 
capital by
 
USD 2.4bn as
 
of 31
 
March 2025
 
(31 December
 
2024: USD 22bn
 
and USD 2.4bn,
respectively)
 
and
 
decreased
 
our
 
CET1
 
capital
 
ratio
 
by
 
14 basis
 
points
 
(31
 
December
 
2024:
 
14 basis
 
points).
Conversely,
 
a
 
10%
 
appreciation
 
of
 
the
 
US
 
dollar
 
against
 
other
 
currencies
 
would
 
have
 
decreased
 
our
 
RWA
 
by
USD 19bn and our
 
CET1 capital by
 
USD 2.2bn (31 December
 
2024: USD 20bn and
 
USD 2.2bn, respectively) and
increased our CET1 capital ratio by 13 basis points (31
 
December 2024: 14 basis points).
Leverage ratio denominator
We estimate that a
 
10% depreciation of the
 
US dollar against other
 
currencies would have increased
 
our LRD by
USD 100bn
 
as
 
of
 
31
 
March
 
2025
 
(31
 
December
 
2024:
 
USD 97bn)
 
and
 
decreased
 
our
 
CET1
 
leverage
 
ratio
 
by
12 basis points
 
(31 December
 
2024: 13 basis
 
points). Conversely, a
 
10% appreciation
 
of the
 
US dollar
 
against other
currencies would have decreased
 
our LRD by USD 90bn
 
(31 December 2024: USD 88bn) and
 
increased our CET1
leverage ratio by 13 basis points (31 December
 
2024: 14 basis points).
The aforementioned
 
sensitivities do
 
not consider
 
foreign currency
 
translation effects
 
related to
 
defined benefit
 
plans
other than those related to the currency
 
translation of the net equity of foreign operations.
›
Refer to “Active management of sensitivity to foreign exchange movements” under “Capital management” in the
“Capital, liquidity and funding, and balance sheet” section of the UBS Group Annual Report 2024, available under
“Annual reporting” at
ubs.com/investors
, for more information
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Capital management
 
41
Risk-weighted assets
 
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.
 
Movement in risk-weighted assets, by key driver
USD bn
RWA as of
31.12.24
Currency
effects
Impact from the
implementation
of final Basel III
standards
Model updates
and other
methodology
changes
Asset size and
other
1
RWA as of
31.3.25
Credit and counterparty credit risk
2
 
292.2
 
5.5
 
(6.1)
 
(1.1)
 
(8.2)
 
282.3
Non-counterparty-related risk
3
 
33.7
 
0.4
 
(0.8)
 
33.3
Market risk
 
27.2
 
6.5
 
(2.3)
 
31.4
Operational risk
 
145.4
 
(9.0)
 
136.4
Total
 
498.5
 
5.9
 
(8.6)
 
(1.1)
 
(11.4)
 
483.3
1 Includes the Pillar 3 categories “Asset size”, “Credit
 
quality of counterparties”, “Acquisitions and disposals”
 
and “Other”. For more information, refer to the 31 March 2025 Pillar 3 Report,
 
which will be available
as of 8
 
May 2025
 
under “Pillar 3
 
disclosures” at ubs.com/investors.
 
2 Includes settlement
 
risk, credit
 
valuation adjustments,
 
equity and investments
 
in funds exposures
 
in the
 
banking book, and
 
securitization
exposures in the banking book.
 
3 Non-counterparty-related risk includes deferred tax assets recognized for temporary differences,
 
property, equipment, software and other items.
Credit and counterparty credit risk
Credit and counterparty credit risk RWA decreased by
 
USD 9.9bn to USD 282.3bn as of 31 March 2025, driven by
an
 
USD 8.2bn
 
decrease
 
resulting
 
from
 
asset
 
size
 
and
 
other
 
movements,
 
a
 
decrease
 
of
 
USD 6.1bn
 
due
 
to
 
the
implementation
 
of
 
the
 
final
 
Basel III
 
standards,
 
and
 
a
 
USD 1.1bn
 
decrease
 
reflecting
 
model
 
updates
 
and
 
other
methodology changes, partly offset by an
 
increase of USD 5.5bn resulting from currency
 
effects.
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 main changes relate to restrictions on using internal ratings-based (IRB) models
for
 
exposures
 
to
 
financial
 
institutions
 
and
 
large
 
corporate
 
clients,
 
a
 
revised
 
standardized
 
approach
 
with
 
more
granular risk-weights, and a revised credit valuation
 
adjustment framework.
The
 
aforementioned impact
 
from
 
the implementation
 
of the
 
final Basel III
 
standards on
 
credit
 
and counterparty
credit risk RWA of
 
USD 6.1bn was
 
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 to
 
financial institutions and large corporate clients.
Asset size and other movements by business
 
division and Group Items:
–
Non-core and
 
Legacy RWA
 
decreased by
 
USD 5.3bn,
 
mainly driven
 
by our
 
actions to
 
actively unwind
 
the portfolio,
in addition to the natural roll-off. The first quarter of 2025 included the sale of Select Portfolio Servicing,
 
which
resulted in an RWA decrease of USD 1.3bn.
–
Global Wealth Management RWA decreased by
 
USD 1.0bn, mainly driven by lower RWA from
 
loans.
–
Investment
 
Bank
 
RWA
 
decreased
 
by
 
USD 0.8bn,
 
mainly
 
due
 
to
 
lower
 
RWA
 
from
 
derivatives,
 
partly
 
offset
 
by
higher RWA from loans and loan commitments.
–
Group Items RWA
 
decreased by USD 0.8bn,
 
following higher allocation
 
of high-quality liquid
 
assets (HQLA) to
business divisions.
–
Personal & Corporate Banking RWA decreased
 
by USD 0.5bn.
–
Asset Management RWA increased by USD 0.2bn.
Model updates and other methodology
 
changes not related to
 
the implementation of the final
 
Basel III standards
resulted in a
 
USD 1.1bn reduction
 
in RWA, mainly
 
reflecting decreases
 
related to the
 
establishment of
 
a new model
for
 
private
 
equity
 
subscription
 
loans
 
and
 
also
 
related
 
to
 
the
 
recalibration
 
of
 
certain
 
multipliers
 
as
 
a
 
result
 
of
improvements to
 
models, partly
 
offset by
 
an increase
 
related to
 
a model
 
update for
 
securities financing
 
transactions.
›
Refer to the 31 March 2025 Pillar 3 Report, which will be available as of 8 May 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
 
›
Refer to “Credit risk” in the “Risk management and control” section of this report for more information
 
›
Refer to “Developments related to the implementation of the final Basel III standards” in the “Recent
developments” section of this report for more information about the incorporation of the final Basel III standards
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Capital management
 
42
Market risk
Market risk RWA
 
increased by USD 4.2bn
 
to USD 31.4bn in
 
the first quarter
 
of 2025, 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 de-risking within
 
Non-core and
Legacy.
 
The final
 
Basel III standards
 
on the
 
minimum capital
 
requirements for
 
market risk
 
from the
 
Basel Committee
 
on
Banking Supervision,
 
known as
 
the FRTB
 
framework,
 
entered into
 
force in
 
Switzerland on
 
1 January 2025.
 
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 the delta,
 
vega and curvature risk
of the
 
underlying trading
 
positions, and
 
the DRC
 
captures the
 
jump-to-default risk in
 
positions subject
 
to equity
and credit risk. In addition, positions that may not be adequately capitalized by the SBM and the DRC additionally
attract
 
an
 
RRAO
 
charge.
 
The
 
new
 
FRTB
 
framework
 
replaced
 
the
 
value-at-risk
 
(VaR)-
 
and
 
stressed
 
VaR-based
Basel 2.5 market risk framework.
›
Refer to “Market risk” in the “Risk management and control” section of this report for more information
›
Refer to “Developments related to the implementation of the final Basel III standards” in the “Recent
developments” section of this report for more information about the implementation of the final Basel III standards
Operational risk
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.
 
The allocation
 
methodology for
 
operational risk
 
RWA
has been adjusted
 
to better reflect
 
the contributions of
 
each division to
 
the RWA calculation
 
under the final
 
Basel III
standards.
 
Under
 
the
 
revised
 
approach,
 
allocations
 
are
 
based
 
on
 
historical
 
losses
 
and
 
revenues
 
in
 
approximate
proportion to the weight that these factors
 
have in the standardized approach calculation.
The
 
final
 
Basel III
 
standards
 
on
 
the
 
operational
 
risk
 
capital
 
requirements
 
entered
 
into
 
force
 
in
 
Switzerland
 
on
1 January 2025. The standardized approach is based
 
on the business indicator component, which
 
is derived from
financial
 
statement
 
metrics,
 
as
 
well
 
as
 
the
 
internal
 
loss
 
multiplier,
 
which
 
is
 
derived
 
from
 
average
 
historical
operational losses. The new framework
 
replaced the advanced measurement approach.
›
Refer to “Note 14 Provisions and contingent liabilities” in the “Consolidated financial statements” section of this
report for more information
›
Refer to “Developments related to the implementation of the final Basel III standards” in the “Recent
developments” section of this report for more information about the implementation of the final Basel III standards
Outlook
 
We expect RWA developments with regard to model updates and methodology changes to be broadly flat during
the second quarter of 2025.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Capital management
 
43
Risk-weighted assets, by business division and Group Items
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Manage-
ment
Investment
Bank
Non-core and
Legacy
Group
 
Items
Total
RWA
31.3.25
Credit and counterparty credit risk
1
 
96.1
 
115.4
 
6.9
 
53.1
 
6.8
 
3.9
 
282.3
Non-counterparty-related risk
2
 
6.5
 
2.9
 
0.7
 
4.2
 
0.8
 
18.0
 
33.3
Market risk
 
0.8
 
0.1
 
27.9
 
2.4
 
0.1
 
31.4
Operational risk
 
60.4
 
18.5
 
6.5
 
23.8
 
24.0
 
3.2
 
136.4
Total
 
163.8
 
137.0
 
14.1
 
109.0
 
34.2
 
25.2
 
483.3
31.12.24
Credit and counterparty credit risk
1
 
93.6
 
120.6
 
7.2
 
56.2
 
10.7
 
3.9
 
292.2
Non-counterparty-related risk
2
 
6.4
 
2.9
 
0.7
 
3.6
 
1.5
 
18.7
 
33.7
Market risk
 
2.7
 
0.2
 
0.0
 
22.1
 
2.2
 
0.0
 
27.2
Operational risk
 
63.2
 
19.3
 
7.2
 
24.4
 
27.1
 
4.2
 
145.4
Total
 
165.8
 
143.0
 
15.1
 
106.4
 
41.4
 
26.8
 
498.5
31.3.25 vs 31.12.24
Credit and counterparty credit risk
1
 
2.5
 
(5.1)
 
(0.3)
 
(3.1)
 
(3.8)
 
0.0
 
(9.9)
Non-counterparty-related risk
2
 
0.2
 
0.1
 
0.0
 
0.6
 
(0.6)
 
(0.7)
 
(0.5)
Market risk
 
(1.9)
 
(0.2)
 
0.0
 
5.8
 
0.3
 
0.1
 
4.2
Operational risk
 
(2.8)
 
(0.8)
 
(0.8)
 
(0.7)
 
(3.0)
 
(1.0)
 
(9.0)
Total
 
(2.0)
 
(6.0)
 
(1.0)
 
2.6
 
(7.2)
 
(1.5)
 
(15.3)
1 Includes settlement risk, credit valuation adjustments,
 
equity and investments in funds exposures in the
 
banking book, and securitization exposures in the banking
 
book.
 
2 Non-counterparty-related risk includes
deferred tax assets
 
recognized for temporary
 
differences (31 March
 
2025: USD 17.6bn; 31
 
December 2024: USD
 
18.1bn), as well
 
as property,
 
equipment, software and
 
other items (31 March
 
2025: USD 15.7bn;
31 December 2024: USD 15.7bn).
Leverage ratio denominator
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.
Movement in leverage ratio denominator, by key driver
USD bn
LRD as of
 
31.12.24
Currency
 
effects
Impact from the
implementation
of final Basel III
standards
Asset size and
 
other
LRD as of
 
31.3.25
On-balance sheet exposures (excluding derivatives and securities
 
financing
transactions)
1
 
1,140.6
 
21.2
 
(1.9)
 
23.0
 
1,182.9
Derivative exposures
 
132.0
 
1.5
 
37.5
 
(21.2)
 
149.8
Securities financing transaction exposures
 
177.1
 
2.6
 
(0.2)
 
(14.7)
 
164.7
Off-balance sheet items
1
 
69.8
 
1.1
 
(6.5)
 
(0.2)
 
64.2
Total exposures
 
1,519.5
 
26.5
 
28.8
 
(13.2)
 
1,561.6
1 From the first
 
quarter of 2025 onward,
 
we have included the
 
assets deducted from tier
 
1 capital items in
 
On-balance sheet exposures
 
and Off-balance sheet
 
items. The
 
comparative-period information has
 
been
amended to
 
reflect the
 
disclosure format
 
changes for
 
the new
 
final Basel
 
III standards.
 
Refer to
 
the UBS Group
 
fourth quarter
 
2024 report,
 
available under
 
“Quarterly reporting”
 
at ubs.com/investors,
 
for more
information about previously published disclosure.
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 CAO 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
 
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.
›
Refer to “Developments related to the implementation of the final Basel III standards” in the “Recent
developments” section of this report for more information about the implementation of the final Basel III standards
The LRD movements
 
described below
 
exclude currency
 
effects and the
 
impact from the
 
implementation of
 
the final
Basel III standards.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Capital management
 
44
On-balance sheet exposures (excluding derivatives and securities financing transactions)
 
increased by USD 23.0bn,
mainly
 
reflecting
 
increases
 
in
 
the
 
HQLA
 
portfolio
 
and
 
cash
 
and
 
balances
 
at
 
central
 
banks
 
in
 
Group
 
Treasury.
Furthermore, there
 
were also
 
increases in
 
trading portfolio
 
assets, reflecting
 
an increase
 
in inventory
 
held in
 
the
Investment Bank.
Derivative
 
exposures
 
decreased
 
by
 
USD 21.2bn,
 
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 14.7bn,
 
mainly due to
 
roll-offs of cash
 
reinvestment
trades in Group Treasury.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about balance sheet
movements
Leverage ratio denominator, by business division and Group Items
USD bn
Global Wealth
Management
 
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
 
31.3.25
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
1
 
487.8
 
403.5
 
4.2
 
252.3
 
23.4
 
11.7
 
1,182.9
Derivative exposures
 
25.9
 
6.0
 
0.0
 
113.8
 
4.0
 
0.0
 
149.8
Securities financing transaction exposures
 
57.0
 
37.1
 
0.1
 
63.5
 
6.8
 
0.3
 
164.7
Off-balance sheet items
1
 
18.0
 
29.0
 
0.1
 
16.1
 
0.6
 
0.3
 
64.2
Total exposures
 
588.7
 
475.6
 
4.3
 
445.8
 
34.9
 
12.3
 
1,561.6
31.12.24
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
1
 
474.7
 
397.5
 
4.2
 
211.5
 
39.9
 
12.8
 
1,140.6
Derivative exposures
 
11.9
 
5.6
 
0.0
 
104.6
 
9.5
 
0.4
 
132.0
Securities financing transaction exposures
 
71.6
 
44.8
 
0.1
 
59.2
 
2.3
 
(0.9)
 
177.1
Off-balance sheet items
1
 
18.4
 
30.9
 
0.1
 
18.2
 
1.8
 
0.2
 
69.8
Total exposures
 
576.6
 
478.9
 
4.5
 
393.5
 
53.5
 
12.5
 
1,519.5
31.3.25 vs 31.12.24
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
 
13.1
 
5.9
 
0.0
 
40.9
 
(16.5)
 
(1.1)
 
42.3
Derivative exposures
 
14.0
 
0.4
 
0.0
 
9.3
 
(5.5)
 
(0.4)
 
17.7
Securities financing transaction exposures
 
(14.6)
 
(7.7)
 
0.0
 
4.2
 
4.5
 
1.2
 
(12.3)
Off-balance sheet items
 
(0.4)
 
(1.9)
 
(0.1)
 
(2.1)
 
(1.2)
 
0.0
 
(5.6)
Total exposures
 
12.1
 
(3.3)
 
(0.1)
 
52.3
 
(18.7)
 
(0.2)
 
42.1
1 From the first
 
quarter of 2025 onward,
 
we have included the
 
assets deducted from tier
 
1 capital items in
 
On-balance sheet exposures
 
and Off-balance sheet
 
items. The
 
comparative-period information has
 
been
amended to
 
reflect the
 
disclosure format
 
changes for
 
the new
 
final Basel
 
III standards.
 
Refer to
 
the UBS Group
 
fourth quarter
 
2024 report,
 
available under
 
“Quarterly reporting”
 
at ubs.com/investors,
 
for more
information about previously published disclosure.
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Capital management
 
45
Equity attribution
Under our equity attribution
 
framework, tangible equity
 
is attributed based on
 
equally weighted average
 
RWA and
average LRD, which both include resource allocations from our Group functions to the business divisions. Average
RWA and LRD are converted
 
to CET1 capital equivalents
 
using target capital ratios.
 
If the attributed tangible equity
calculated under the weighted-driver approach is less than
 
the CET1 capital equivalent of risk-based capital (RBC)
for any business division,
 
the CET1 capital equivalent of RBC is used as a floor for that
 
business division.
 
The floor
was applicable for Asset Management and
 
Non-core and Legacy in all of the periods shown
 
below.
In addition to
 
tangible equity,
 
we allocate equity
 
to the business
 
divisions to
 
support goodwill
 
and intangible
 
assets.
We
 
also
 
allocate
 
to
 
the
 
business
 
divisions
 
attributed
 
equity
 
related
 
to
 
CET1
 
capital
 
deduction
 
items
 
that
 
are
attributable to divisional activities, such as compensation-related components or expected losses on the advanced
internal ratings-based portfolio less provisions. We attribute all remaining capital deduction items to Group Items.
These primarily
 
include equity
 
related to deferred
 
tax assets,
 
accruals for shareholder
 
returns, and unrealized
 
gains /
losses from cash flow hedges.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about movements in
equity attributable to shareholders
Average attributed equity
For the quarter ended
USD bn
31.3.25
31.12.24
31.3.24
1
Global Wealth Management
 
33.6
 
33.6
 
33.1
Personal & Corporate Banking
 
20.1
 
21.3
 
21.9
Asset Management
 
2.7
 
2.8
 
2.6
Investment Bank
 
17.7
 
17.3
 
17.0
Non-core and Legacy
 
7.5
 
8.7
 
10.6
Group Items
2
 
4.6
 
2.3
 
0.0
Average equity attributed to business divisions and Group Items
 
86.1
 
86.1
 
85.2
1 Comparative-period information has been revised.
 
Refer to “Note 2 Accounting for the acquisition
 
of the Credit Suisse Group” in the
 
“Consolidated financial statements” section of
 
the UBS Group Annual Report
2024, available under “Annual reporting” at
 
ubs.com/investors, for more information about the relevant
 
adjustments.
 
2 Includes average attributed equity related to capital deduction items for deferred tax
 
assets,
accruals for
 
shareholder returns
 
and unrealized
 
gains /
 
losses from
 
cash flow
 
hedges. The
 
increase compared
 
with the
 
fourth quarter
 
of 2024
 
was mainly
 
driven by
 
the capital
 
reserve for
 
expected future
 
share
repurchases.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Liquidity and funding management
 
46
Liquidity and funding management
Strategy, objectives and governance
 
This
 
section
 
provides
 
liquidity
 
and
 
funding
 
management
 
information
 
and
 
should
 
be
 
read
 
in
 
conjunction
 
with
“Liquidity and funding
 
management” in
 
the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section of the
 
UBS
Group
 
Annual
 
Report
 
2024,
 
available
 
under
 
“Annual
 
reporting”
 
at
ubs.com/investors
,
 
which
 
provides
 
more
information
 
about
 
the
 
Group’s
 
strategy,
 
objectives
 
and
 
governance
 
in
 
connection
 
with
 
liquidity
 
and
 
funding
management.
Liquidity coverage ratio
The
 
quarterly
 
average
 
liquidity
 
coverage
 
ratio
 
(the
 
LCR)
 
of
 
the
 
UBS
 
Group
 
decreased
 
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 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.
›
Refer to the
31 March 2025 Pillar 3 Report, which will be available as of 8 May 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about the LCR
Liquidity coverage ratio
USD bn, except where indicated
Average 1Q25
1
Average 4Q24
1
High-quality liquid assets
 
318.7
 
331.5
Net cash outflows
2
 
176.2
 
176.0
Liquidity coverage ratio (%)
3
 
181.0
 
188.4
1 Calculated based on an average of
 
62 data points in the first quarter
 
of 2025 and 64 data points in
 
the fourth quarter of 2024.
 
2 Represents the net cash outflows expected
 
over a stress period of 30 calendar
days.
 
3 Calculated after the application of haircuts and inflow and outflow rates, as well as,
 
where applicable, caps on Level 2 assets and cash inflows.
Net stable funding ratio
 
As of 31 March 2025,
 
the net stable funding
 
ratio (the NSFR) 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.
›
Refer to the 31 March 2025 Pillar 3 Report, which will be available as of 8 May 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about the NSFR
Net stable funding ratio
USD bn, except where indicated
31.3.25
31.12.24
Available stable funding
 
861.7
 
856.8
Required stable funding
 
693.8
 
682.5
Net stable funding ratio (%)
 
124.2
 
125.5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Balance sheet and off-balance
 
sheet
 
47
Balance sheet and off-balance sheet
This
 
section
 
provides
 
balance
 
sheet
 
and
 
off-balance sheet
 
information
 
and
 
should
 
be
 
read
 
in
 
conjunction
 
with
“Balance sheet
 
and off-balance
 
sheet” in
 
the “Capital,
 
liquidity and
 
funding, and
 
balance sheet”
 
section of
 
the
UBS Group
 
Annual Report
 
2024, available
 
under “Annual reporting”
 
at
ubs.com/investors
, which
 
provides more
information about the balance sheet and off-balance
 
sheet positions.
 
Balances disclosed in this
 
report represent quarter-end
 
positions, unless indicated
 
otherwise. Intra-quarter balances
fluctuate in the ordinary course of business
 
and may differ from quarter-end positions.
Balance sheet assets (31 March 2025 vs
 
31 December 2024)
Total assets
 
were USD 1,543.4bn
 
as of
 
31 March 2025,
 
a decrease
 
of USD 21.6bn
 
compared with
 
31 December
2024.
Derivatives and
 
cash collateral
 
receivables on
 
derivative instruments
 
decreased by
 
USD 52.5bn, predominantly
 
in
Derivatives & Solutions in the Investment Bank,
 
primarily reflecting a decrease in foreign currency
 
contracts, where
the contracts in
 
place at the
 
end of March
 
2025 had a
 
lower fair value
 
than the contracts
 
in place at
 
the end of
December 2024.
 
Securities financing
 
transactions at
 
amortized cost
 
decreased by
 
USD 16.5bn, mainly
 
reflecting
roll-offs of cash reinvestment trades in Group
 
Treasury.
These decreases were partly offset by
 
a USD 16.4bn increase in Lending assets, mainly
 
reflecting currency effects.
Cash
 
and
 
balances
 
at
 
central
 
banks
 
increased
 
by
 
USD 8.1bn,
 
mainly
 
due
 
to
 
inflows
 
from
 
roll-offs
 
of
 
securities
financing transactions measured at amortized cost and currency effects, partly
 
offset by purchases of high-quality
liquid asset
 
(HQLA) portfolio
 
securities.
 
Other financial
 
assets measured
 
at fair
 
value increased
 
by USD 7.8bn,
 
mainly
driven
 
by
 
investments
 
in
 
securities
 
financing
 
transactions
 
measured
 
at
 
fair
 
value
 
and
 
HQLA
 
portfolio
 
securities.
Other financial
 
assets measured
 
at amortized
 
cost increased
 
by USD 7.7bn,
 
mainly reflecting purchases
 
of HQLA
portfolio securities. Trading
 
assets increased by
 
USD 6.1bn, reflecting higher
 
inventory held in
 
the Investment
 
Bank.
 
Assets
As of
% change from
USD bn
31.3.25
31.12.24
31.12.24
Cash and balances at central banks
 
231.4
 
223.3
 
4
Lending
1
 
615.3
 
598.9
 
3
Securities financing transactions at amortized cost
 
101.8
 
118.3
 
(14)
Trading assets
 
165.2
 
159.1
 
4
Derivatives and cash collateral receivables on derivative instruments
 
177.0
 
229.5
 
(23)
Brokerage receivables
 
28.7
 
25.9
 
11
Other financial assets measured at amortized cost
 
66.5
 
58.8
 
13
Other financial assets measured at fair value
2
 
105.5
 
97.7
 
8
Non-financial assets
 
51.9
 
53.6
 
(3)
Total assets
 
1,543.4
 
1,565.0
 
(1)
1 Consists of Loans and advances to customers and Amounts due from banks.
 
2 Consists of Financial assets at fair value not held for trading and Financial assets measured at fair
 
value through other comprehensive
income.
 
Balance sheet liabilities (31 March 2025 vs
 
31 December 2024)
Total liabilities were USD 1,455.8bn as
 
of 31 March 2025, a decrease of
 
USD 23.7bn compared with 31 December
2024.
Derivatives and cash collateral payables on derivative instruments decreased by USD 42.5bn, predominantly in the
Investment
 
Bank,
 
primarily
 
reflecting
 
the
 
same
 
drivers
 
as
 
on
 
the
 
asset
 
side.
 
Customer
 
deposits
 
decreased
 
by
USD 0.9bn, mainly reflecting
 
net new deposit
 
outflows
 
of USD 13.5bn, primarily
 
in Global Wealth
 
Management,
largely offset by currency effects.
These decreases were partly offset by a USD 10.9bn increase
 
in brokerage payables, mainly reflecting higher client
activity levels.
 
Trading liabilities
 
increased by
 
USD 7.9bn, mainly
 
due to
 
an increase
 
in short
 
positions held
 
in the
Investment Bank.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Balance sheet and off-balance
 
sheet
 
48
The “Liabilities,
 
by product
 
and currency”
 
table
 
in this
 
section provides
 
more information
 
about the
 
Group’s funding
sources.
›
Refer to “Bondholder information” at
 
ubs.com/investors
for more information about capital and senior debt
instruments
 
›
Refer to the “Consolidated financial statements” section of this report for more information
Liabilities and equity
As of
 
% change from
USD bn
31.3.25
31.12.24
31.12.24
Short-term borrowings
1,2
 
58.4
 
53.9
 
8
Securities financing transactions at amortized cost
 
15.0
 
14.8
 
1
Customer deposits
 
744.9
 
745.8
 
0
Debt issued designated at fair value and long-term debt issued measured
 
at amortized cost
2
 
295.4
 
291.6
 
1
Trading liabilities
 
43.1
 
35.2
 
22
Derivatives and cash collateral payables on derivative instruments
 
173.6
 
216.1
 
(20)
Brokerage payables
 
59.9
 
49.0
 
22
Other financial liabilities measured at amortized cost
 
19.1
 
21.0
 
(9)
Other financial liabilities designated at fair value
 
27.2
 
28.7
 
(5)
Non-financial liabilities
 
19.1
 
23.2
 
(18)
Total liabilities
 
1,455.8
 
1,479.5
 
(2)
Share capital
 
0.3
 
0.3
 
0
Share premium
 
10.9
 
12.0
 
(9)
Treasury shares
 
(6.5)
 
(6.4)
 
2
Retained earnings
 
80.0
 
78.0
 
3
Other comprehensive income
3
 
2.4
 
1.1
 
122
Total equity attributable to shareholders
 
87.2
 
85.1
 
2
Equity attributable to non-controlling interests
 
0.4
 
0.5
 
(18)
Total equity
 
87.6
 
85.6
 
2
Total liabilities and equity
 
1,543.4
 
1,565.0
 
(1)
1 Consists of short-term debt issued measured at amortized cost and amounts due to banks, which includes amounts due to central banks.
 
2 The classification of debt issued measured at amortized cost into short-
term and long-term is based
 
on original contractual
 
maturity and therefore long-term
 
debt also includes debt
 
with a remaining time
 
to maturity of less
 
than one year.
 
This classification does
 
not consider any
 
early
redemption features.
 
3 Excludes other comprehensive income related to defined benefit plans and own credit, which is recorded directly in Retained earnings.
Equity (31 March 2025 vs 31 December 2024)
Equity attributable to shareholders increased
 
by USD 2,106m to USD 87,185m as of
 
31 March 2025.
The
 
net
 
increase
 
of
 
USD 2,106m
 
was
 
mainly
 
driven
 
by
 
positive
 
total
 
comprehensive
 
income
 
attributable
 
to
shareholders
 
of
 
USD 3,319m, reflecting
 
a
 
net
 
profit
 
of
 
USD 1,692m
 
and
 
other
 
comprehensive
 
income
 
(OCI)
 
of
USD 1,628m. OCI mainly included OCI related to foreign currency translation of USD 768m, cash flow hedge OCI
of USD 545m
 
and OCI
 
related to
 
own credit
 
on financial
 
liabilities designated
 
at fair
 
value of
 
USD 279m. In
 
addition,
deferred share-based
 
compensation awards
 
of USD 329m
 
were expensed
 
in the
 
income statement,
 
increasing share
premium.
These
 
increases
 
were
 
partly
 
offset
 
by
 
net
 
treasury
 
share
 
activity,
 
which
 
reduced
 
equity
 
by
 
USD 1,452m,
predominantly due to
 
the purchasing of
 
USD 997m of shares
 
in relation
 
to employee share-based
 
compensation
plans and the repurchasing of USD 506m
 
of shares under our 2024 share repurchase
 
program.
The payment of the 2024 dividend of USD 0.90 per
 
share, approved by shareholders at the 2025 Annual General
Meeting, reduced equity attributable to shareholders
 
by USD 2.9bn in April 2025.
›
Refer to the “Group performance” and “Consolidated financial statements” sections of this report for more
information
›
Refer to “Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital” in
the “Capital management” section of this report for more information about the effects of OCI on common equity
tier 1 capital
›
Refer to the “Share information and earnings per share”
 
section of this report for more information about our
share repurchase programs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Balance sheet and off-balance
 
sheet
 
49
Liabilities, by product and currency
USD equivalent
All currencies
of which: USD
of which: CHF
of which: EUR
USD bn
31.3.25
31.12.24
31.3.25
31.12.24
31.3.25
31.12.24
31.3.25
31.12.24
Short-term borrowings
58.4
53.9
22.5
22.5
7.9
5.7
12.6
11.7
of which: amounts due to banks
27.8
23.3
7.8
8.1
7.4
5.4
3.4
3.1
of which: short-term debt issued
1,2
30.6
30.5
14.7
14.5
0.4
0.3
9.2
8.6
Securities financing transactions at amortized cost
15.0
14.8
7.3
7.9
3.6
3.8
2.8
2.9
Customer deposits
744.9
745.8
301.5
310.3
306.2
297.2
69.5
71.1
of which: demand deposits
223.6
221.8
53.8
54.0
109.6
107.8
33.2
32.8
of which: retail savings / deposits
190.5
182.3
35.4
34.9
151.0
143.3
4.1
4.0
of which: sweep deposits
39.6
41.9
39.6
41.9
0.0
0.0
0.0
0.0
of which: time deposits
291.2
299.8
172.6
179.4
45.6
46.1
32.3
34.3
Debt issued designated at fair value and long-term debt issued measured
 
at amortized
cost
2
295.4
291.6
165.9
165.7
42.3
41.5
64.5
62.1
Trading liabilities
43.1
35.2
16.9
14.4
1.0
1.3
12.3
10.0
Derivatives and cash collateral payables on derivative instruments
173.6
216.1
145.5
182.9
3.3
4.4
16.2
18.0
Brokerage payables
59.9
49.0
47.9
38.1
0.6
0.5
3.3
3.4
Other financial liabilities measured at amortized cost
 
19.1
21.0
9.3
11.7
5.0
3.7
2.3
2.0
Other financial liabilities designated at fair value
27.2
28.7
5.1
4.1
0.0
0.1
2.3
4.3
Non-financial liabilities
19.1
23.2
10.7
13.0
3.3
4.1
2.8
2.8
Total liabilities
1,455.8
1,479.5
732.6
770.7
373.1
362.3
188.6
188.3
1 Short-term debt issued consists of
 
certificates of deposit, commercial paper,
 
acceptances and promissory notes, and
 
other money market paper.
 
2 The classification of
 
debt issued measured at amortized
 
cost into
short-term and long-term is based on original contractual maturity and therefore long-term debt also includes debt with a remaining time to maturity of less than one year.
 
This classification does not consider any early
redemption features.
Off-balance sheet (31 March 2025 vs
 
31 December 2024)
Guarantees increased
 
by USD 2.2bn,
 
mainly driven by
 
an increase
 
in sponsored
 
repo clearing
 
in Group
 
Treasury.
Forward
 
starting reverse
 
repurchase
 
and
 
securities borrowing
 
agreements
 
decreased
 
by
 
USD 6.7bn, reflecting
 
a
decrease in levels of business division activity in short-dated
 
securities financing transactions.
Off-balance sheet
As of
% change from
USD bn
31.3.25
31.12.24
31.12.24
Guarantees
1,2
 
40.6
 
38.4
 
6
Irrevocable loan commitments
1
 
79.5
 
79.6
 
0
Committed unconditionally revocable credit lines
 
144.1
 
145.7
 
(1)
Forward starting reverse repurchase and securities borrowing agreements
 
18.2
 
24.9
 
(27)
1 Guarantees and irrevocable loan commitments are shown net of sub-participations.
 
2 Includes guarantees measured at fair value through profit or loss.
Share information and earnings per share
UBS Group AG
 
shares
 
are
 
listed
 
on
 
the
 
SIX
 
Swiss
 
Exchange
 
(SIX).
 
They
 
are
 
also
 
listed
 
on
 
the
 
New
 
York
 
Stock
Exchange (the NYSE) as global registered shares. Each share has
 
a nominal value of USD 0.10. Shares issued were
unchanged in the first quarter of 2025 compared
 
with the fourth quarter of 2024.
We held 274m shares as of
 
31 March 2025, of which 168m shares had
 
been acquired under our 2022 and 2024
share repurchase programs
 
for cancellation purposes. The remaining 106m shares are primarily held to hedge our
share delivery obligations related to employee
 
share-based compensation and participation
 
plans.
Treasury shares
 
held decreased
 
by
 
13m
 
shares in
 
the first
 
quarter of
 
2025.
 
This mainly
 
reflected the
 
delivery of
treasury shares
 
under our
 
share-based compensation
 
plans,
 
largely offset
 
by the
 
purchasing of
 
29.4m shares
 
in
relation to employee share-based compensation
 
plans and 15.0m shares repurchased under our
 
2024 program.
 
Shares
 
acquired
 
under
 
our
 
2024
 
program
 
totaled
 
48m
 
as
 
of
 
31 March
 
2025
 
for
 
a
 
total
 
acquisition
 
cost
 
of
USD 1,506m
 
(CHF 1,321m). A
 
new,
 
two-year
 
share
 
repurchase
 
program
 
of
 
up
 
to
 
USD 3.5bn
 
was
 
approved
 
by
shareholders at the 2025 Annual General Meeting (the AGM). 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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Share information and earnings
 
per share
 
50
Shares
 
acquired
 
under
 
our
 
2022
 
program
 
totaled
 
121m
 
as
 
of
 
31 March
 
2025
 
for
 
a
 
total
 
acquisition
 
cost
 
of
USD 2,277m (CHF 2,138m). This program concluded
 
on 28 March 2024, and the 121m shares repurchased
 
under
this program were
 
canceled in
 
April 2025 by
 
means of
 
a capital reduction,
 
as approved
 
by shareholders
 
at the 2025
AGM.
›
Refer to the “Equity, CET1 capital and returns” table in the “Group performance” section of this report
 
for more
information about equity attributable to shareholders and tangible equity attributable to shareholders
Share information and earnings per share
As of or for the quarter ended
31.3.25
31.12.24
31.3.24
1
Basic and diluted earnings (USD m)
Net profit / (loss) attributable to shareholders for basic
 
EPS
 
1,692
 
770
 
1,755
less: (profit) / loss on own equity derivative contracts
 
0
 
0
 
0
Net profit / (loss) attributable to shareholders for diluted
 
EPS
 
1,691
 
770
 
1,755
.
Weighted average shares outstanding
Weighted average shares outstanding for basic EPS
2
 
3,177,005,662
 
3,179,446,604
 
3,205,234,203
Effect of dilutive potential shares resulting from notional
 
employee shares, in-the-money options and warrants outstanding
3
 
154,934,196
 
156,592,019
 
159,939,399
Weighted average shares outstanding for diluted EPS
 
3,331,939,858
 
3,336,038,623
 
3,365,173,602
.
Earnings per share (USD)
Basic
 
0.53
 
0.24
 
0.55
Diluted
 
0.51
 
0.23
 
0.52
.
Shares outstanding and potentially dilutive instruments
Shares issued
 
3,462,087,722
 
3,462,087,722
 
3,462,087,722
Treasury shares
4
 
274,295,444
 
287,262,471
 
255,661,512
of which: related to the 2022 share repurchase program
 
120,506,008
 
120,506,008
 
120,506,008
of which: related to the 2024 share repurchase program
 
47,977,687
 
32,962,298
Shares outstanding
 
3,187,792,278
 
3,174,825,251
 
3,206,426,210
Potentially dilutive instruments
5
 
23,529,297
 
14,127,377
 
11,621,246
.
Other key figures
Total book value per share (USD)
 
27.35
 
26.80
 
26.44
Tangible book value per share (USD)
 
25.18
 
24.63
 
24.14
Share price (USD)
6
 
30.38
 
30.54
 
30.74
Market capitalization (USD m)
7
 
105,173
 
105,719
 
106,440
1 Comparative-period information has been revised.
 
Refer to “Note 2 Accounting for the acquisition
 
of the Credit Suisse Group” in the
 
“Consolidated financial statements” section of the
 
UBS Group Annual Report
2024, available under “Annual
 
reporting” at ubs.com/investors,
 
for more information about the relevant
 
adjustments.
 
2 The weighted average shares
 
outstanding for basic earnings per share (EPS)
 
are calculated
by taking the number
 
of shares at the
 
beginning of the period,
 
adjusted by the number
 
of shares acquired or
 
issued during the
 
period, multiplied by
 
a time-weighted factor for
 
the period outstanding.
 
As a result,
balances are affected
 
by the timing
 
of acquisitions and
 
issuances during the
 
period.
 
3 The weighted
 
average number of
 
shares for notional
 
employee awards
 
with performance conditions
 
reflects all potentially
dilutive shares that are expected to vest under the terms of the awards.
 
4 Based on a settlement date view.
 
5 Reflects potential shares that could dilute basic EPS in the future but were
 
not dilutive for any of the
periods presented. Mainly includes equity
 
-based awards subject to
 
absolute and relative performance
 
conditions and equity derivative
 
contracts.
 
6 Represents the share price
 
as listed on the SIX
 
Swiss Exchange,
translated to US dollars using the closing exchange rate as of the respective date.
 
7 The calculation of market capitalization reflects total shares
 
issued multiplied by the share price at the end of the period.
Ticker symbols UBS Group AG
Security identification codes
Trading exchange
SIX / NYSE
Bloomberg
Reuters
ISIN
CH0244767585
SIX Swiss Exchange
UBSG
UBSG SW
UBSG.S
Valoren
24 476 758
New York Stock Exchange
UBS
UBS UN
UBS.N
CUSIP
CINS H42097 10 7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Consolidated financial statements |
 
UBS Group AG interim consolidated financial
 
statements (unaudited)
 
52
UBS Group AG interim consolidated financial
statements (unaudited)
Income statement
For the quarter ended
USD m
Note
31.3.25
31.12.24
31.3.24
Interest income from financial instruments measured at
 
amortized cost and fair value through
other comprehensive income
3
 
6,981
 
7,829
 
10,078
Interest expense from financial instruments measured at
 
amortized cost
3
 
(6,948)
 
(7,884)
 
(9,724)
Net interest income from financial instruments measured
 
at fair value through profit or loss and other
3
 
1,597
 
1,893
 
1,585
Net interest income
3
 
1,629
 
1,838
 
1,940
Other net income from financial instruments measured
 
at fair value through profit or loss
 
3,937
 
3,144
 
4,182
Fee and commission income
4
 
7,426
 
7,269
 
7,080
Fee and commission expense
4
 
(649)
 
(671)
 
(588)
Net fee and commission income
4
 
6,777
 
6,598
 
6,492
Other income
5
 
213
 
56
 
124
Total revenues
 
12,557
 
11,635
 
12,739
Credit loss expense / (release)
8
 
100
 
229
 
106
Personnel expenses
6
 
7,032
 
6,361
 
6,949
General and administrative expenses
7
 
2,431
 
3,004
 
2,413
Depreciation, amortization and impairment of non-financial
 
assets
 
861
 
994
 
895
Operating expenses
 
10,324
 
10,359
 
10,257
Operating profit / (loss) before tax
 
2,132
 
1,047
 
2,376
Tax expense / (benefit)
 
430
 
268
 
612
Net profit / (loss)
 
1,702
 
779
 
1,764
Net profit / (loss) attributable to non-controlling interests
 
10
 
9
 
9
Net profit / (loss) attributable to shareholders
 
1,692
 
770
 
1,755
Earnings per share (USD)
Basic
 
0.53
 
0.24
 
0.55
Diluted
 
0.51
 
0.23
 
0.52
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Consolidated financial statements |
 
UBS Group AG interim consolidated financial
 
statements (unaudited)
 
53
 
Statement of comprehensive income
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Comprehensive income attributable to shareholders
1
Net profit / (loss)
 
1,692
 
770
 
1,755
Other comprehensive income that may be reclassified to the income
 
statement
Foreign currency translation
Foreign currency translation movements related to net assets of foreign operations, before tax
 
1,318
 
(3,388)
 
(3,473)
Effective portion of changes in fair value of hedging instruments
 
designated as net investment hedges, before tax
 
(549)
 
1,565
 
2,182
Foreign currency translation differences on foreign operations reclassified to the
 
income statement
 
3
 
20
 
0
Effective portion of changes in fair value of hedging instruments
 
designated as net investment hedges reclassified
 
to the income statement
 
(1)
 
(34)
 
1
Income tax relating to foreign currency translations, including the effect of
 
net investment hedges
 
(2)
 
2
 
13
Subtotal foreign currency translation, net of tax
 
768
 
(1,835)
 
(1,277)
Financial assets measured at fair value through other comprehensive income
Net unrealized gains / (losses), before tax
 
(3)
 
(1)
 
0
Net realized (gains) / losses reclassified to the income statement
 
from equity
 
0
 
0
 
0
Income tax relating to net unrealized gains / (losses)
 
0
 
0
 
0
Subtotal financial assets measured at fair value through other comprehensive
 
income, net of tax
 
(3)
 
(1)
 
0
Cash flow hedges of interest rate risk
Effective portion of changes in fair value of derivative instruments designated
 
as cash flow hedges, before tax
 
349
 
(1,366)
 
(1,246)
Net (gains) / losses reclassified to the income statement from
 
equity
 
322
 
400
 
544
Income tax relating to cash flow hedges
 
(125)
 
181
 
119
Subtotal cash flow hedges, net of tax
 
545
 
(785)
 
(583)
Cost of hedging
Cost of hedging, before tax
 
31
 
(98)
 
(9)
Income tax relating to cost of hedging
 
0
 
0
 
0
Subtotal cost of hedging, net of tax
 
31
 
(98)
 
(9)
Total other comprehensive income that may be reclassified to the income statement, net
 
of tax
 
1,342
 
(2,719)
 
(1,870)
Other comprehensive income that will not be reclassified to the income
 
statement
Defined benefit plans
Gains / (losses) on defined benefit plans, before tax
 
5
 
(68)
 
(62)
Income tax relating to defined benefit plans
 
2
 
22
 
6
Subtotal defined benefit plans, net of tax
 
7
 
(46)
 
(56)
Own credit on financial liabilities designated at fair value
Gains / (losses) from own credit on financial liabilities designated
 
at fair value, before tax
 
279
 
145
 
(69)
Income tax relating to own credit on financial liabilities designated
 
at fair value
 
(1)
 
(2)
 
2
Subtotal own credit on financial liabilities designated at
 
fair value, net of tax
 
279
 
144
 
(68)
Total other comprehensive income that will not be reclassified to the income statement,
 
net of tax
 
286
 
98
 
(124)
Total other comprehensive income
 
1,628
 
(2,622)
 
(1,994)
Total comprehensive income attributable to shareholders
 
3,319
 
(1,851)
 
(240)
Comprehensive income attributable to non-controlling
 
interests
Net profit / (loss)
 
10
 
9
 
9
Total other comprehensive income that will not be reclassified to the income statement,
 
net of tax
 
15
 
(35)
 
(14)
Total comprehensive income attributable to non-controlling interests
 
26
 
(27)
 
(5)
Total comprehensive income
Net profit / (loss)
 
1,702
 
779
 
1,764
Other comprehensive income
 
1,643
 
(2,657)
 
(2,008)
of which: other comprehensive income that may be reclassified
 
to the income statement
 
1,342
 
(2,719)
 
(1,870)
of which: other comprehensive income that will not be reclassified
 
to the income statement
 
302
 
62
 
(138)
Total comprehensive income
 
3,345
 
(1,878)
 
(245)
1 Refer to the “Group performance” section of this report for more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Consolidated financial statements |
 
UBS Group AG interim consolidated financial
 
statements (unaudited)
 
54
 
Balance sheet
USD m
Note
31.3.25
31.12.24
Assets
Cash and balances at central banks
 
231,370
 
223,329
Amounts due from banks
 
21,107
 
18,903
Receivables from securities financing transactions measured at amortized
 
cost
 
101,784
 
118,301
Cash collateral receivables on derivative instruments
10
 
38,994
 
43,959
Loans and advances to customers
8
 
594,150
 
579,967
Other financial assets measured at amortized cost
11
 
66,513
 
58,835
Total financial assets measured at amortized cost
 
1,053,918
 
1,043,293
Financial assets at fair value held for trading
9
 
165,236
 
159,065
of which: assets pledged as collateral that may be sold or repledged
 
by counterparties
 
48,262
 
38,532
Derivative financial instruments
9, 10
 
138,035
 
185,551
Brokerage receivables
9
 
28,747
 
25,858
Financial assets at fair value not held for trading
9
 
102,317
 
95,472
Total financial assets measured at fair value through profit or loss
 
434,334
 
465,947
Financial assets measured at fair value through other comprehensive income
9
 
3,216
 
2,195
Investments in associates
 
2,496
 
2,306
Property, equipment and software
 
15,564
 
15,498
Goodwill and intangible assets
 
6,909
 
6,887
Deferred tax assets
 
11,090
 
11,134
Other non-financial assets
11
 
15,836
 
17,766
Total assets
 
1,543,363
 
1,565,028
Liabilities
Amounts due to banks
 
27,794
 
23,347
Payables from securities financing transactions measured at amortized cost
 
14,999
 
14,833
Cash collateral payables on derivative instruments
10
 
31,520
 
35,490
Customer deposits
 
744,866
 
745,777
Debt issued measured at amortized cost
13
 
213,880
 
214,219
Other financial liabilities measured at amortized cost
11
 
19,143
 
21,033
Total financial liabilities measured at amortized cost
 
1,052,202
 
1,054,698
Financial liabilities at fair value held for trading
9
 
43,099
 
35,247
Derivative financial instruments
9, 10
 
142,117
 
180,636
Brokerage payables designated at fair value
 
9
 
59,921
 
49,023
Debt issued designated at fair value
9, 12
 
112,092
 
107,909
Other financial liabilities designated at fair value
9, 11
 
27,235
 
28,699
Total financial liabilities measured at fair value through profit or loss
 
384,465
 
401,514
Provisions and contingent liabilities
 
14
 
8,517
 
8,409
Other non-financial liabilities
 
11
 
10,590
 
14,834
Total liabilities
 
1,455,773
 
1,479,454
Equity
Share capital
 
346
 
346
Share premium
 
10,908
 
12,012
Treasury shares
 
(6,509)
 
(6,402)
Retained earnings
 
80,023
 
78,035
Other comprehensive income recognized directly in equity, net of tax
 
2,418
 
1,088
Equity attributable to shareholders
 
87,185
 
85,079
Equity attributable to non-controlling interests
 
405
 
494
Total equity
 
87,590
 
85,574
Total liabilities and equity
 
1,543,363
 
1,565,028
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Consolidated financial statements |
 
UBS Group AG interim consolidated financial
 
statements (unaudited)
 
55
 
Statement of changes in equity
USD m
Share
capital and
share
premium
Treasury
shares
Retained
earnings
OCI
recognized
directly in
equity,
net of tax
1
of which:
foreign
currency
translation
of which:
cash flow
hedges
Total equity
attributable to
shareholders
Balance as of 1 January 2025
2
 
12,359
 
(6,402)
 
78,035
 
1,088
 
3,830
 
(2,585)
 
85,079
Acquisition of treasury shares
 
(1,520)
3
 
(1,520)
Delivery of treasury shares under share-based compensation
 
plans
 
(1,328)
 
1,392
 
64
Other disposal of treasury shares
 
5
 
21
3
 
27
Share-based compensation expensed in the income statement
 
329
 
329
Tax (expense) / benefit
 
9
 
9
Equity classified as obligation to purchase own shares
 
(22)
 
(22)
Translation effects recognized directly in retained earnings
 
12
 
(12)
 
(12)
 
0
Share of changes in retained earnings of associates and
 
joint ventures
 
(2)
 
(2)
New consolidations / (deconsolidations) and other increases
 
/ (decreases)
 
(98)
 
0
 
(98)
Total comprehensive income for the period
 
1,978
 
1,342
 
768
 
545
 
3,319
of which: net profit / (loss)
 
1,692
 
1,692
of which: OCI, net of tax
 
286
 
1,342
 
768
 
545
 
1,628
Balance as of 31 March 2025
2
 
11,254
 
(6,509)
 
80,023
 
2,418
 
4,599
 
(2,051)
 
87,185
Non-controlling interests as of 31 March 2025
 
405
Total equity as of 31 March 2025
 
87,590
Balance as of 1 January 2024
2,4
 
13,562
 
(4,796)
 
74,397
 
2,462
 
5,584
 
(3,109)
 
85,624
Acquisition of treasury shares
 
(1,008)
3
 
(1,008)
Delivery of treasury shares under share-based compensation
 
plans
 
(595)
 
627
 
32
Other disposal of treasury shares
 
1
 
20
3
 
21
Share-based compensation expensed in the income statement
 
334
 
334
Tax (expense) / benefit
 
5
 
5
Equity classified as obligation to purchase own shares
 
1
 
1
Translation effects recognized directly in retained earnings
 
(72)
 
72
 
72
 
0
Share of changes in retained earnings of associates and
 
joint ventures
 
(1)
 
(1)
New consolidations / (deconsolidations) and other increases
 
/ (decreases)
 
11
 
(3)
 
8
Total comprehensive income for the period
 
1,631
 
(1,870)
 
(1,277)
 
(583)
 
(240)
of which: net profit / (loss)
 
1,755
 
1,755
of which: OCI, net of tax
 
(124)
 
(1,870)
 
(1,277)
 
(583)
 
(1,994)
Balance as of 31 March 2024
2,4
 
13,318
 
(5,157)
 
75,952
 
663
 
4,307
 
(3,621)
 
84,777
Non-controlling interests as of 31 March 2024
 
506
Total equity as of 31 March 2024
4
 
85,283
1 Excludes other comprehensive income related to defined benefit plans and own credit that is recorded directly in Retained earnings.
 
2 Excludes non-controlling interests.
 
3 Includes treasury shares acquired and
disposed of by the Investment Bank in its capacity as a market
 
maker with regard to UBS shares and related derivatives,
 
and to hedge certain issued structured debt instruments.
 
These acquisitions and disposals are
reported based on the sum
 
of the net monthly
 
movements.
 
4 Comparative-period information has been
 
revised. Refer to “Note 2
 
Accounting for the acquisition
 
of the Credit Suisse Group”
 
in the “Consolidated
financial statements” section of the UBS Group Annual Report 2024, available under “Annual
 
reporting” at ubs.com/investors, for more information about
 
the relevant adjustments.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Consolidated financial statements |
 
UBS Group AG interim consolidated financial
 
statements (unaudited)
 
56
Statement of cash flows
Year-to-date
USD m
31.3.25
31.3.24
Cash flow from / (used in) operating activities
Net profit / (loss)
 
1,702
 
1,764
Non-cash items included in net profit and other adjustments
Depreciation, amortization and impairment of non-financial
 
assets
 
861
 
895
Credit loss expense / (release)
 
100
 
106
Share of net (profit) / loss of associates and joint ventures
 
and impairment related to associates
 
(136)
 
(58)
Deferred tax expense / (benefit)
 
(30)
 
144
Net loss / (gain) from investing activities
 
(231)
 
12
Net loss / (gain) from financing activities
 
2,080
 
(3,460)
Other net adjustments
1
 
(7,494)
 
16,762
Net change in operating assets and liabilities
1
Amounts due from banks and amounts due to banks
 
4,228
 
1,547
Receivables from securities financing transactions measured at amortized
 
cost
 
18,364
 
(5,686)
Payables from securities financing transactions measured at amortized cost
 
668
 
(71)
Cash collateral on derivative instruments
 
1,110
 
(692)
Loans and advances to customers
 
(2,642)
 
6,401
Customer deposits
 
(13,476)
 
(2,545)
Financial assets and liabilities at fair value held for trading and derivative financial
 
instruments
 
14,243
 
(4,422)
Brokerage receivables and payables
 
7,897
 
2,577
Financial assets at fair value not held for trading and other financial assets
 
and liabilities
 
(9,392)
 
2,891
Provisions and other non-financial assets and liabilities
 
(2,237)
 
(4,035)
Income taxes paid, net of refunds
 
(237)
 
(585)
Net cash flow from / (used in) operating activities
2
 
15,377
 
11,544
Cash flow from / (used in) investing activities
Disposal of subsidiaries, business, associates and intangible assets
 
354
3
Purchase of property, equipment and software
 
(558)
 
(413)
Disposal of property, equipment and software
 
26
 
28
Purchase of financial assets measured at fair value through other
 
comprehensive income
 
(2,149)
 
(520)
Disposal and redemption of financial assets measured at
 
fair value through other comprehensive income
 
1,151
 
1,070
Purchase of debt securities measured at amortized cost
 
(7,871)
 
(851)
Disposal and redemption of debt securities measured at amortized
 
cost
 
1,883
 
2,002
Net cash flow from / (used in) investing activities
 
(7,163)
 
1,315
Cash flow from / (used in) financing activities
Repayment of Swiss National Bank funding
 
(22,082)
4
Net issuance (repayment) of short-term debt measured at amortized
 
cost
 
(517)
 
(5,851)
Net movements in treasury shares and own equity derivative activity
 
(1,453)
 
(973)
Issuance of debt designated at fair value and long-term debt measured
 
at amortized cost
 
34,697
 
28,469
Repayment of debt designated at fair value and long-term debt measured
 
at amortized cost
 
(34,631)
 
(39,137)
Inflows from securities financing transactions measured at amortized
 
cost
5
 
565
 
1,000
Outflows from securities financing transactions measured at amortized
 
cost
5
 
(1,285)
 
(2,052)
Net cash flows from other financing activities
 
(335)
 
(192)
Net cash flow from / (used in) financing activities
 
(2,958)
 
(40,818)
Total cash flow
Cash and cash equivalents at the beginning of the period
 
244,090
 
340,311
Net cash flow from / (used in) operating, investing and financing
 
activities
 
5,256
 
(27,959)
Effects of exchange rate differences on cash and cash equivalents
1
 
5,044
 
(12,852)
Cash and cash equivalents at the end of the period
6
 
254,390
 
299,499
of which: cash and balances at central banks
6
 
231,370
 
271,527
of which: amounts due from banks
6
 
19,503
 
20,014
of which: money market paper
6,7
 
3,517
 
7,958
Additional information
Net cash flow from / (used in) operating activities includes:
Interest received in cash
 
10,729
 
14,382
Interest paid in cash
 
10,514
 
12,123
Dividends on equity investments, investment funds and associates
 
received in cash
 
734
 
582
1 Foreign currency
 
translation and foreign
 
exchange effects on
 
operating assets and
 
liabilities and on
 
cash and cash
 
equivalents are presented
 
within the Other
 
net adjustments line,
 
with the exception
 
of foreign
currency hedge effects related to foreign
 
exchange swaps, which are
 
presented on the line Financial assets
 
and liabilities at fair value
 
held for trading and derivative
 
financial instruments.
 
2 Includes cash receipts
from the sale
 
of loans and
 
loan commitments of
 
USD 330m and USD 7,464m
 
within Non-core and
 
Legacy for the
 
three-month periods ended
 
31 March 2025 and
 
31 March 2024, respectively.
 
3 Includes cash
proceeds net of cash and
 
cash equivalents disposed from
 
the sale of the US
 
mortgage servicing business of Credit
 
Suisse, Select Portfolio
 
Servicing, which was managed
 
in Non-core and Legacy.
 
Refer to “Note 29
Changes in organization and acquisitions
 
and disposals of subsidiaries and businesses”
 
in the “Consolidated financial statements”
 
section of the UBS Group
 
Annual Report 2024 for more
 
information.
 
4 Reflects
the repayment of
 
the Emergency Liquidity
 
Assistance facility
 
to the Swiss
 
National Bank,
 
which was
 
recognized in the
 
balance sheet line
 
Amounts due
 
to banks.
 
5 Reflects cash
 
flows from securities
 
financing
transactions measured at
 
amortized cost that
 
use UBS debt
 
instruments as the
 
underlying.
 
6 Includes only balances
 
with an original
 
maturity of three months
 
or less.
 
7 Money market
 
paper is included in
 
the
balance sheet under Financial assets at fair
 
value not held for trading
 
(31 March 2025: USD 2,874m; 31 March
 
2024: USD 6,854m), Other financial assets
 
measured at amortized cost (31 March 2025:
 
USD 397m;
31 March 2024: USD 221m),
 
Financial assets measured at
 
fair value through other
 
comprehensive income (31 March
 
2025: USD 0m; 31 March 2024:
 
USD 420m) and Financial assets
 
at fair value held
 
for trading
(31 March 2025: USD 246m; 31 March 2024: USD 463m).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
57
Notes to the UBS Group AG interim consolidated
financial statements (unaudited)
Note 1
 
Basis of accounting
Basis of preparation
The consolidated
 
financial statements
 
(the financial
 
statements) of
 
UBS Group AG and
 
its subsidiaries
 
(together,
UBS
 
or
 
the
 
Group)
 
are
 
prepared
 
in
 
accordance
 
with
 
IFRS
 
Accounting
 
Standards, as
 
issued
 
by
 
the
 
International
Accounting Standards
 
Board (the
 
IASB), and
 
are
 
presented in
 
US
 
dollars. These
 
interim
 
financial statements
 
are
prepared in accordance with IAS 34,
Interim Financial Reporting
.
In preparing
 
these interim financial
 
statements, the same
 
accounting policies and
 
methods of
 
computation have
been applied as in the
 
UBS Group AG consolidated annual
 
financial statements for
 
the period ended 31 December
2024. These interim
 
financial statements are
 
unaudited and should
 
be read
 
in conjunction with
 
UBS Group AG’s
audited consolidated financial
 
statements in the
 
UBS Group Annual Report
 
2024 and
 
the “Management report”
sections of this report, including the disclosures in the “Recent developments”
 
section of this report regarding the
sale of Select Portfolio Servicing,
 
the US mortgage servicing business of Credit Suisse,
 
and the transactions related
to Swisscard. In the opinion of management, all necessary adjustments have been made
 
for a fair presentation of
the Group’s financial position, results of
 
operations and cash flows.
Preparation of
 
these interim financial
 
statements requires management
 
to make
 
estimates and
 
assumptions that
affect
 
the
 
reported
 
amounts
 
of
 
assets,
 
liabilities,
 
income,
 
expenses
 
and
 
disclosures
 
of
 
contingent
 
assets
 
and
liabilities. These estimates
 
and assumptions are based
 
on the best available
 
information. Actual results
 
in the future
could differ
 
from such
 
estimates and
 
differences may
 
be material
 
to the
 
financial statements.
 
Revisions to
 
estimates,
based on regular
 
reviews, are recognized
 
in the period
 
in which they
 
occur. For more
 
information about areas of
estimation
 
uncertainty
 
that
 
are
 
considered
 
to
 
require
 
critical
 
judgment,
 
refer
 
to
 
“Note 1a
 
Material
 
accounting
policies” in the “Consolidated financial statements”
 
section of the UBS Group Annual Report
 
2024.
Currency translation rates
The
 
following table
 
shows the
 
rates of
 
the main
 
currencies used
 
to translate
 
the financial
 
information of
 
UBS’s
operations with a functional currency other
 
than the US dollar into US dollars.
Currency translation rates
Closing exchange rate
Average rate
1
As of
For the quarter ended
31.3.25
31.12.24
31.3.24
31.3.25
31.12.24
31.3.24
1 CHF
 
1.13
 
1.10
 
1.11
 
1.11
 
1.13
 
1.13
1 EUR
 
1.08
 
1.04
 
1.08
 
1.05
 
1.06
 
1.08
1 GBP
 
1.29
 
1.25
 
1.26
 
1.26
 
1.27
 
1.26
100 JPY
 
0.67
 
0.63
 
0.66
 
0.66
 
0.65
 
0.67
1 Monthly income statement items of operations with a functional currency other than the US dollar are translated into US dollars using month-end rates. Disclosed average rates for a quarter represent an average of
three month-end rates,
 
weighted according
 
to the
 
income and expense
 
volumes of
 
all operations
 
of the
 
Group with the
 
same functional
 
currency for each
 
month. Weighted
 
average rates
 
for individual business
divisions may deviate from the weighted average rates for the Group.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
58
Note 2
 
Segment reporting
UBS’s business divisions
 
are organized globally into
 
five business divisions:
 
Global Wealth Management,
 
Personal &
Corporate Banking, Asset Management, the
 
Investment Bank,
 
and Non-core and Legacy. All five business
 
divisions
are supported by Group Items and qualify as reportable segments for the purpose of segment reporting. Together
with Group Items they reflect the management
 
structure of the Group.
›
Refer to the “Consolidated financial statements” section of the UBS Group Annual Report 2024 for more
information about the Group’s reporting segments
Segment reporting
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Non-core and
Legacy
Group Items
UBS Group
For the quarter ended 31 March 2025
Net interest income
 
1,708
 
1,239
 
(15)
 
(893)
 
19
 
(429)
 
1,629
Non-interest income
 
4,714
 
972
 
756
 
4,076
 
265
 
144
 
10,927
Total revenues
 
6,422
 
2,211
 
741
 
3,183
 
284
 
(284)
 
12,557
Credit loss expense / (release)
 
6
 
53
 
0
 
35
 
7
 
(1)
 
100
Operating expenses
 
5,057
 
1,551
 
606
 
2,427
 
669
 
15
 
10,324
Operating profit / (loss) before tax
 
1,359
 
607
 
135
 
722
 
(391)
 
(299)
 
2,132
Tax expense / (benefit)
 
430
Net profit / (loss)
 
1,702
As of 31 March 2025
Total assets
 
556,949
 
443,017
 
22,982
 
456,540
 
47,940
 
15,935
1,543,363
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Non-core and
Legacy
Group Items
UBS Group
For the quarter ended 31 March 2024
Net interest income
 
1,873
 
1,508
 
(16)
 
(862)
 
360
 
(922)
 
1,940
Non-interest income
 
4,270
 
915
 
792
 
3,613
 
642
 
567
 
10,798
Total revenues
 
6,143
 
2,423
 
776
 
2,751
 
1,001
 
(355)
 
12,739
Credit loss expense / (release)
 
(3)
 
44
 
0
 
32
 
36
 
(2)
 
106
Operating expenses
 
5,044
 
1,404
 
665
 
2,164
 
1,011
 
(33)
 
10,257
Operating profit / (loss) before tax
 
1,102
 
975
 
111
 
555
 
(46)
 
(320)
 
2,376
Tax expense / (benefit)
 
612
Net profit / (loss)
 
1,764
As of 31 December 2024
Total assets
 
559,601
 
447,068
 
22,702
 
453,422
 
68,260
 
13,975
 
1,565,028
Note 3
 
Net interest income
Net interest income
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Interest income from loans and deposits
1
 
6,105
 
6,951
 
9,089
Interest income from securities financing transactions measured
 
at amortized cost
2
 
839
 
822
 
1,217
Interest income from other financial instruments measured
 
at amortized cost
 
360
 
350
 
347
Interest income from debt instruments measured at fair
 
value through other comprehensive income
 
27
 
24
 
27
Interest income from derivative instruments designated as cash
 
flow hedges
 
 
(351)
 
(318)
 
(602)
Total interest income from financial instruments measured at amortized cost and fair
 
value through other comprehensive income
 
6,981
 
7,829
 
10,078
Interest expense on loans and deposits
3
 
3,698
 
4,253
 
5,439
Interest expense on securities financing transactions measured
 
at amortized cost
4
 
415
 
457
 
495
Interest expense on debt issued
 
2,794
 
3,127
 
3,740
Interest expense on lease liabilities
 
41
 
46
 
50
Total interest expense from financial instruments measured at amortized cost
 
6,948
 
7,884
 
9,724
Total net interest income from financial instruments measured at amortized cost and fair
 
value through other comprehensive
income
 
33
 
(55)
 
355
Net interest income from financial instruments measured at fair value through profit
 
or loss and other
 
1,597
 
1,893
 
1,585
Total net interest income
 
1,629
 
1,838
 
1,940
1 Consists of
 
interest income from
 
cash and balances
 
at central banks,
 
amounts due from
 
banks, and
 
cash collateral receivables
 
on derivative
 
instruments, as
 
well as negative
 
interest on amounts
 
due to banks,
customer deposits, and
 
cash collateral payables
 
on derivative instruments.
 
2 Includes interest
 
income on receivables
 
from securities financing
 
transactions and negative
 
interest, including fees,
 
on payables from
securities financing transactions.
 
3 Consists of interest expense on amounts due to
 
banks, cash collateral payables on derivative instruments, and customer deposits, as well as negative interest on cash and balances
at central banks, amounts due
 
from banks, and cash
 
collateral receivables on derivative
 
instruments.
 
4 Includes interest expense on payables
 
from securities financing transactions and
 
negative interest, including
fees, on receivables from securities financing transactions.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
59
Note 4
 
Net fee and commission income
Net fee and commission income
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Underwriting fees
 
187
 
206
 
194
M&A and corporate finance fees
 
244
 
277
 
259
Brokerage fees
 
1,376
 
1,170
 
1,150
Investment fund fees
 
1,543
 
1,579
 
1,257
Portfolio management and related services
 
3,104
 
3,085
 
3,051
Other
 
972
 
951
 
1,169
Total fee and commission income
1
 
7,426
 
7,269
 
7,080
of which: recurring
 
4,610
 
4,638
 
4,407
of which: transaction-based
 
2,783
 
2,586
 
2,641
of which: performance-based
 
33
 
45
 
32
Fee and commission expense
 
649
 
671
 
588
Net fee and commission income
 
6,777
 
6,598
 
6,492
1 Reflects third-party fee and commission
 
income for the first quarter of
 
2025 of USD 4,431m for Global
 
Wealth Management (fourth quarter of
 
2024: USD 4,190m; first quarter of 2024:
 
USD 3,986m), USD 730m
for Personal &
 
Corporate Banking (fourth
 
quarter of 2024:
 
USD 686m; first quarter
 
of 2024: USD 708m),
 
USD 939m for Asset Management
 
(fourth quarter of 2024:
 
USD 944m; first quarter
 
of 2024: USD 941m),
USD 1,243m for the Investment Bank (fourth
 
quarter of 2024: USD 1,285m; first quarter of
 
2024: USD 1,332m), USD 68m for Non-core and Legacy
 
(fourth quarter of 2024: USD 93m; first quarter
 
of 2024: USD 108m)
and USD 14m for Group Items (fourth quarter of 2024: USD 72m; first quarter of 2024: USD 5m).
Note 5
 
Other income
Other income
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Associates, joint ventures and subsidiaries
Net gains / (losses) from acquisitions and disposals of
 
subsidiaries
1
 
94
2
 
26
 
(1)
Net gains / (losses) from disposals of investments in associates
 
and joint ventures
 
3
 
3
 
(2)
Share of net profit / (loss) of associates and joint ventures
136
3
(34)
58
Total
 
233
 
(5)
 
55
Income from properties
4
 
3
 
6
 
14
Net gains / (losses) from properties held for sale
 
8
 
1
 
(1)
Other
5
 
(31)
 
54
 
56
Total other income
 
213
 
56
 
124
1 Includes foreign exchange gains / (losses) reclassified
 
from other comprehensive income related to the disposal
 
or closure of foreign operations.
 
2 Includes a gain of USD 97m recognized
 
upon completion of the
sale of Select
 
Portfolio Servicing,
 
the US mortgage
 
servicing business of
 
Credit Suisse,
 
which was
 
managed in Non-core
 
and Legacy.
 
Refer to "Note
 
29 Changes in
 
organization and acquisitions
 
and disposals of
subsidiaries and businesses" in the “Consolidated financial statements” section of
 
the UBS Group Annual Report 2024 for more information.
 
3 Includes a gain of USD 64m related
 
to UBS’s share of income recorded
by Swisscard for the sale
 
of the Credit Suisse card
 
portfolios to UBS. Refer to "Note 29
 
Changes in organization and acquisitions and
 
disposals of subsidiaries and businesses" in
 
the “Consolidated financial statements”
section of the UBS Group Annual Report 2024 for more information.
 
4 Includes rent received from third parties.
 
5 Includes losses of USD 36m for the first quarter of 2025 related
 
to the repurchase of UBS’s own
debt instruments (fourth quarter of 2024: losses USD 9m; first quarter of 2024: gains of USD 22m).
 
Note 6
 
Personnel expenses
Personnel expenses
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Salaries and variable compensation
1
 
5,968
 
5,321
 
5,863
of which: variable compensation – financial advisors
2
 
1,409
 
1,400
 
1,267
Contractors
 
72
 
76
 
86
Social security
 
405
 
386
 
409
Post-employment benefit plans
 
349
 
296
 
367
Other personnel expenses
 
237
 
282
 
225
Total personnel expenses
 
7,032
 
6,361
 
6,949
1 Includes role-based
 
allowances.
 
2 Financial advisor
 
compensation consists of
 
cash compensation, determined
 
using a formulaic
 
approach based on
 
production, and deferred
 
awards. It
 
also includes expenses
related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
60
Note 7
 
General and administrative expenses
General and administrative expenses
USD m
31.3.25
31.12.24
31.3.24
Outsourcing costs
 
378
 
475
 
423
Technology costs
 
573
 
622
 
588
Consulting, legal and audit fees
 
287
 
470
 
403
Real estate and logistics costs
 
239
 
299
 
289
Market data services
 
168
 
184
 
199
Marketing and communication
 
123
 
194
 
115
Travel and entertainment
 
74
 
108
 
72
Litigation, regulatory and similar matters
1
 
114
 
99
 
(5)
Other
 
475
2
 
554
 
330
Total general and administrative expenses
 
2,431
 
3,004
 
2,413
1 Reflects the net increase / (decrease) in provisions for litigation, regulatory and similar matters recognized in the income statement. The fourth and first quarters of 2024 also reflect decreases in acquired contingent
liabilities measured under IFRS 3. Refer to Note 14b for more information.
 
2 Includes a USD 180m expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS. Refer to "Note
29 Changes in organization and acquisitions and disposals of subsidiaries and businesses" in the “Consolidated financial statements”
 
section of the UBS Group Annual Report 2024 for more information.
Note 8
 
Expected credit loss measurement
a) Credit loss expense / release
 
Total net credit loss expenses in the first quarter of
 
2025
 
were USD 100m, reflecting USD 21m net releases related
to performing positions and USD 121m net
 
expenses on credit-impaired positions.
Net expected credit
 
loss (ECL)
 
on performing corporate
 
loans was flat
 
in the first
 
quarter of
 
2025. Net ECL
 
expenses
on defaulted corporate loans were USD 94m, of which USD 47m was in Personal & Corporate Banking, USD 40m
in the Investment Bank and USD 7m in Non-core
 
and Legacy.
Net ECL releases on performing real-estate-backed loans
 
were USD 22m in the first quarter of 2025, driven by the
substitution of
 
the severe
 
stagflation scenario,
 
primarily by
 
the forecasted
 
lower interest
 
rates curves
 
in the
 
new
scenario mix as described below.
 
These net ECL releases included
 
USD 24m of releases in Switzerland
 
and USD 3m
of expenses
 
in the
 
US. Net
 
expenses on
 
defaulted real-estate-backed
 
loans were
 
USD 11m and
 
related to
 
three
commercial real estate counterparties in the
 
US.
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Purchased
 
Total
For the quarter ended 31.3.25
Global Wealth Management
 
(7)
 
13
 
(1)
 
6
Personal & Corporate Banking
 
(8)
 
61
 
0
 
53
Asset Management
 
0
 
0
 
0
 
0
Investment Bank
 
(5)
 
40
 
0
 
35
Non-core and Legacy
 
0
 
(1)
 
8
 
7
Group Items
 
(1)
 
0
 
0
 
(1)
Total
 
(21)
 
113
 
8
 
100
For the quarter ended 31.12.24
Global Wealth Management
 
(26)
 
12
 
0
 
(14)
Personal & Corporate Banking
 
(24)
 
199
 
0
 
175
Asset Management
 
0
 
0
 
0
 
0
Investment Bank
 
32
 
31
 
0
 
63
Non-core and Legacy
 
(2)
 
5
 
3
 
6
Group Items
 
(1)
 
0
 
0
 
0
Total
 
(21)
 
247
 
3
 
229
For the quarter ended 31.3.24
Global Wealth Management
 
(12)
 
7
 
2
 
(3)
Personal & Corporate Banking
 
(13)
 
64
 
(7)
 
44
Asset Management
 
0
 
0
 
0
 
0
Investment Bank
 
7
 
26
 
(1)
 
32
Non-core and Legacy
 
(26)
 
37
 
25
 
36
Group Items
 
(2)
 
0
 
0
 
(2)
Total
 
(45)
 
133
 
18
 
106
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
61
Note 8
 
Expected credit loss measurement (continued)
b) Changes to ECL models, scenarios and
 
scenario weights
 
Scenarios and scenario weights
The expected
 
credit loss
 
(ECL) scenarios,
 
along with
 
their related
 
macroeconomic factors and
 
market data,
 
were
reviewed in light of the economic
 
and political conditions prevailing
 
in the first quarter of
 
2025 through a series of
governance meetings,
 
with input
 
and feedback
 
from UBS Risk
 
and Finance
 
experts across
 
the business
 
divisions and
regions.
 
As
 
of
 
31 March
 
2025,
 
there
 
was
 
a
 
high
 
degree
 
of
 
geopolitical
 
and
 
macroeconomic
 
uncertainty,
 
including
uncertainty relating
 
to tariffs
 
that could
 
be introduced
 
by the
 
US government
 
after that
 
date and
 
the economic
consequences thereof.
 
The actual
 
announcing of
 
the tariffs
 
in April
 
2025 was
 
subsequent to
 
the reporting date.
UBS has
 
assessed the
 
situation based
 
on
 
the uncertainties
 
that existed
 
on the
 
reporting date
 
and has
 
exercised
judgment. The scenario suite was adjusted in the first
 
quarter of 2025 to replace the two downside scenarios.
 
The
global crisis scenario has replaced the stagflationary geopolitical crisis scenario as the severe downside scenario. It
targets
 
risks
 
such
 
as
 
sovereign
 
defaults,
 
low
 
interest
 
rates
 
and
 
significant
 
emerging
 
market
 
stress.
 
The
 
severe
stagflation scenario
 
previously explored
 
risks related
 
to higher
 
inflation and
 
rising interest
 
rates. The mild
 
stagflation
crisis
 
scenario
 
has
 
replaced
 
the
 
mild
 
debt
 
crisis
 
scenario
 
as
 
the
 
mild
 
downside scenario.
 
In
 
the
 
mild
 
stagflation
scenario, interest rates
 
are assumed to
 
rise rather than
 
decline, as in
 
the previously
 
applied mild debt
 
crisis scenario.
However,
 
the
 
declines
 
in
 
GDP
 
and
 
equities
 
are
 
similar.
 
As
 
a
 
consequence
 
of
 
the
 
circumstances
 
and
 
prevailing
uncertainties at
 
the end
 
of the
 
first quarter
 
of 2025, the
 
weight allocation between
 
the four
 
scenarios has
 
been
amended.
 
The scenario weights are illustrated in the
 
table below.
All of the scenarios,
 
including the asset
 
price appreciation
and the baseline
 
scenarios,
 
have been updated based
 
on
the latest macroeconomic
 
forecasts as of
 
31 March 2025. The
 
assumptions on a
 
calendar-year basis are
 
included in
the table below.
 
UBS is
 
closely monitoring
 
the current
 
market situation,
 
and it
 
will carefully
 
assess developments,
 
potentially revisiting
the narratives and weightings in the second
 
quarter of 2025.
Comparison of shock factors
Baseline
Key parameters
2024
2025
2026
Real GDP growth (annual percentage change)
US
 
 
2.8
 
1.5
 
0.7
Eurozone
 
0.8
 
0.5
 
0.8
Switzerland
 
1.3
 
0.7
 
1.6
Unemployment rate (%, annual average)
US
 
 
4.0
 
4.4
 
5.2
Eurozone
 
6.4
 
6.5
 
6.6
Switzerland
 
2.5
 
2.8
 
2.8
Fixed income: 10-year government bonds (%, Q4)
USD
 
4.6
 
4.2
 
4.3
EUR
 
2.4
 
2.8
 
2.9
CHF
 
0.3
 
0.7
 
0.8
Real estate (annual percentage change, Q4)
US
 
 
3.8
 
3.5
 
3.7
Eurozone
 
2.6
 
5.0
 
3.4
Switzerland
 
0.9
 
4.0
 
2.5
Economic scenarios and weights applied
Assigned weights in %
ECL scenario
31.3.25
31.12.24
31.3.24
Asset price appreciation
 
5.0
–
–
Baseline
 
50.0
 
60.0
 
60.0
Mild debt crisis
 
–
 
15.0
 
15.0
Stagflationary geopolitical crisis
–
 
25.0
 
25.0
Mild stagflationary crisis
 
30.0
–
–
Global crisis
 
 
15.0
–
–
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
62
Note 8
 
Expected credit loss measurement (continued)
c) ECL-relevant balance sheet and off-balance
 
sheet positions including ECL allowances
 
and provisions
The following tables
 
provide information
 
about financial
 
instruments and
 
certain non-financial
 
instruments that
 
are
subject
 
to
 
ECL
 
requirements.
 
For
 
amortized-cost
 
instruments,
 
the
 
carrying
 
amount
 
represents
 
the
 
maximum
exposure to credit risk, taking
 
into account the allowance for
 
credit losses. Financial assets measured at
 
fair value
through other comprehensive
 
income (FVOCI) are
 
also subject to ECL;
 
however, unlike amortized-cost
 
instruments,
the allowance
 
for credit
 
losses for
 
FVOCI instruments
 
does not
 
reduce the
 
carrying amount
 
of these financial
 
assets.
Instead, the
 
carrying amount
 
of financial
 
assets measured
 
at FVOCI
 
represents the
 
maximum exposure
 
to credit
 
risk.
In addition to recognized financial assets, certain off-balance sheet financial instruments and other credit lines are
also subject to ECL.
 
The maximum exposure to
 
credit risk for off-balance
 
sheet financial instruments is calculated
based on the maximum contractual amounts.
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.3.25
Carrying amount
1
ECL allowances
2
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Cash and balances at central banks
 
231,370
 
231,207
 
18
 
0
 
145
 
(60)
 
0
 
(28)
 
0
 
(33)
Amounts due from banks
 
21,107
 
21,070
 
37
 
0
 
0
 
(9)
 
(5)
 
(4)
 
0
 
0
Receivables from securities financing transactions measured at
amortized cost
 
101,784
 
101,784
 
0
 
0
 
0
 
(3)
 
(3)
 
0
 
0
 
0
Cash collateral receivables on derivative instruments
 
38,994
 
38,994
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
Loans and advances to customers
 
594,150
 
567,285
 
22,470
 
3,582
 
813
 
(2,099)
 
(289)
 
(300)
 
(1,228)
 
(281)
of which: Private clients with mortgages
 
257,254
 
245,046
 
10,800
 
1,309
 
99
 
(133)
 
(39)
 
(50)
 
(36)
 
(8)
of which: Real estate financing
 
83,414
 
78,340
 
4,828
 
228
 
18
 
(62)
 
(26)
 
(32)
 
(4)
 
0
of which: Large corporate clients
 
25,097
 
21,923
 
2,115
 
740
 
320
 
(646)
 
(82)
 
(111)
 
(335)
 
(119)
of which: SME clients
 
21,787
 
18,381
 
2,287
 
996
 
122
 
(811)
 
(65)
 
(67)
 
(646)
 
(33)
of which: Lombard
 
152,821
 
152,732
 
1
 
32
 
55
 
(48)
 
(8)
 
0
 
(18)
 
(22)
of which: Credit cards
 
2,025
 
1,564
 
420
 
41
 
0
 
(44)
 
(8)
 
(11)
 
(26)
 
0
of which: Commodity trade finance
 
4,330
 
4,311
 
12
 
7
 
0
 
(81)
 
(8)
 
0
 
(73)
 
0
of which: Ship / aircraft financing
 
8,029
 
7,713
 
316
 
0
 
0
 
(19)
 
(16)
 
(4)
 
0
 
0
of which: Consumer financing
 
2,629
 
2,414
 
109
 
73
 
33
 
(92)
 
(16)
 
(19)
 
(62)
 
5
Other financial assets measured at amortized cost
 
66,513
 
65,766
 
560
 
176
 
11
 
(121)
 
(24)
 
(8)
 
(82)
 
(8)
of which: Loans to financial advisors
 
2,738
 
2,600
 
48
 
89
 
0
 
(40)
 
(3)
 
(1)
 
(36)
 
0
Total financial assets measured at amortized cost
 
1,053,918
 
1,026,106
 
23,085
 
3,758
 
969
 
(2,293)
 
(321)
 
(340)
 
(1,309)
 
(322)
Financial assets measured at fair value through other comprehensive
income
 
3,216
 
3,216
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
Total on-balance sheet financial assets in scope of ECL requirements
 
1,057,134
 
1,029,322
 
23,085
 
3,758
 
969
 
(2,293)
 
(321)
 
(340)
 
(1,309)
 
(322)
Total exposure
ECL provisions
2
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Guarantees
 
42,586
 
40,618
 
1,800
 
131
 
37
 
(60)
 
(12)
 
(20)
 
(27)
 
0
of which: Large corporate clients
 
7,103
 
6,487
 
530
 
64
 
23
 
(14)
 
(6)
 
(4)
 
(4)
 
0
of which: SME clients
 
2,885
 
2,529
 
316
 
31
 
8
 
(22)
 
(3)
 
(15)
 
(4)
 
0
of which: Financial intermediaries and hedge funds
 
 
25,139
 
24,249
 
890
 
0
 
0
 
(1)
 
(1)
 
0
 
0
 
0
of which: Lombard
 
3,591
 
3,561
 
0
 
30
 
0
 
(6)
 
(1)
 
0
 
(5)
 
0
of which: Commodity trade finance
 
2,160
 
2,158
 
1
 
0
 
0
 
(1)
 
(1)
 
0
 
0
 
0
Irrevocable loan commitments
 
79,463
 
75,299
 
3,906
 
217
 
40
 
(219)
 
(116)
 
(81)
 
(20)
 
(2)
of which: Large corporate clients
 
48,349
 
45,150
 
3,033
 
138
 
27
 
(160)
 
(84)
 
(59)
 
(16)
 
(2)
Forward starting reverse repurchase and securities borrowing
agreements
 
18,178
 
18,178
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
Unconditionally revocable loan commitments
 
144,102
 
140,458
 
3,442
 
202
 
0
 
(55)
 
(41)
 
(14)
 
0
 
0
of which: Real estate financing
 
7,384
 
7,030
 
354
 
0
 
0
 
(3)
 
(4)
 
1
 
0
 
0
of which: Large corporate clients
 
13,497
 
12,751
 
722
 
23
 
0
 
(15)
 
(8)
 
(5)
 
(2)
 
0
of which: SME clients
 
10,902
 
9,952
 
801
 
149
 
0
 
(23)
 
(18)
 
(5)
 
0
 
0
of which: Lombard
 
72,767
 
72,757
 
8
 
2
 
0
 
0
 
0
 
0
 
0
 
0
of which: Credit cards
 
10,285
 
9,815
 
467
 
3
 
0
 
(8)
 
(6)
 
(2)
 
0
 
0
Irrevocable committed prolongation of existing loans
 
4,129
 
4,126
 
2
 
2
 
0
 
(3)
 
(3)
 
0
 
0
 
0
Total off-balance sheet financial instruments and other credit lines
 
288,458
 
278,679
 
9,150
 
551
 
78
 
(337)
 
(172)
 
(115)
 
(47)
 
(2)
Total allowances and provisions
 
(2,629)
 
(493)
 
(455)
 
(1,357)
 
(324)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective
 
ECL allowances.
 
2 Negative balances are representative of a net improvement in
credit quality since the acquisition of the respective financial instrument, which is reflected as a negative ECL allowance.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
63
Note 8
 
Expected credit loss measurement (continued)
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.12.24
Carrying amount
1
ECL allowances
2
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Cash and balances at central banks
 
223,329
 
223,201
 
13
 
0
 
114
 
(47)
 
0
 
(21)
 
0
 
(25)
Amounts due from banks
 
18,903
 
18,704
 
198
 
0
 
0
 
(36)
 
(1)
 
(5)
 
0
 
(30)
Receivables from securities financing transactions measured at
amortized cost
 
118,301
 
118,301
 
0
 
0
 
0
 
(2)
 
(2)
 
0
 
0
 
0
Cash collateral receivables on derivative instruments
 
43,959
 
43,959
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
Loans and advances to customers
 
579,967
 
553,532
 
22,049
 
3,565
 
820
 
(1,978)
 
(276)
 
(323)
 
(1,134)
 
(244)
of which: Private clients with mortgages
 
249,756
 
239,540
 
8,987
 
1,146
 
84
 
(160)
 
(46)
 
(70)
 
(30)
 
(14)
of which: Real estate financing
 
82,602
 
78,410
 
3,976
 
195
 
20
 
(58)
 
(24)
 
(27)
 
(7)
 
0
of which: Large corporate clients
 
25,286
 
20,816
 
3,462
 
707
 
301
 
(573)
 
(72)
 
(123)
 
(277)
 
(100)
of which: SME clients
 
20,768
 
17,403
 
2,265
 
952
 
148
 
(742)
 
(55)
 
(47)
 
(613)
 
(26)
of which: Lombard
 
147,504
 
147,136
 
260
 
48
 
61
 
(42)
 
(6)
 
0
 
(18)
 
(18)
of which: Credit cards
 
1,978
 
1,533
 
406
 
39
 
0
 
(41)
 
(6)
 
(11)
 
(25)
 
0
of which: Commodity trade finance
 
4,203
 
4,089
 
106
 
8
 
0
 
(81)
 
(9)
 
0
 
(71)
 
0
of which: Ship / aircraft financing
 
7,848
 
6,974
 
874
 
0
 
0
 
(31)
 
(14)
 
(16)
 
0
 
0
of which: Consumer financing
 
2,820
 
2,480
 
114
 
159
 
67
 
(93)
 
(15)
 
(19)
 
(62)
 
4
Other financial assets measured at amortized cost
 
58,835
 
58,209
 
436
 
178
 
12
 
(125)
 
(25)
 
(7)
 
(84)
 
(8)
of which: Loans to financial advisors
 
2,723
 
2,568
 
59
 
95
 
0
 
(41)
 
(4)
 
(1)
 
(37)
 
0
Total financial assets measured at amortized cost
 
1,043,293
 
1,015,906
 
22,697
 
3,743
 
946
 
(2,187)
 
(304)
 
(357)
 
(1,218)
 
(307)
Financial assets measured at fair value through other comprehensive
income
 
2,195
 
2,195
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
Total on-balance sheet financial assets in scope of ECL requirements
 
1,045,488
 
1,018,102
 
22,697
 
3,743
 
946
 
(2,187)
 
(304)
 
(357)
 
(1,218)
 
(307)
Total exposure
ECL provisions
2
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Guarantees
 
40,279
 
38,858
 
1,242
 
151
 
27
 
(64)
 
(16)
 
(24)
 
(24)
 
0
of which: Large corporate clients
 
7,817
 
7,096
 
635
 
78
 
8
 
(17)
 
(7)
 
(9)
 
(2)
 
0
of which: SME clients
 
2,524
 
2,074
 
393
 
41
 
15
 
(26)
 
(5)
 
(15)
 
(7)
 
0
of which: Financial intermediaries and hedge funds
 
 
21,590
 
21,449
 
141
 
0
 
0
 
(1)
 
(1)
 
0
 
0
 
0
of which: Lombard
 
3,709
 
3,652
 
24
 
29
 
4
 
(6)
 
(1)
 
0
 
(5)
 
0
of which: Commodity trade finance
 
2,678
 
2,676
 
2
 
0
 
0
 
(1)
 
(1)
 
0
 
0
 
0
Irrevocable loan commitments
 
79,579
 
75,158
 
4,178
 
187
 
56
 
(177)
 
(105)
 
(61)
 
(10)
 
(2)
of which: Large corporate clients
 
47,381
 
43,820
 
3,393
 
125
 
43
 
(155)
 
(91)
 
(54)
 
(8)
 
(2)
Forward starting reverse repurchase and securities borrowing
agreements
 
24,896
 
24,896
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
Unconditionally revocable loan commitments
 
145,665
 
143,262
 
2,149
 
250
 
5
 
(76)
 
(59)
 
(17)
 
0
 
0
of which: Real estate financing
 
7,674
 
7,329
 
345
 
0
 
0
 
(6)
 
(4)
 
(2)
 
0
 
0
of which: Large corporate clients
 
14,690
 
14,089
 
584
 
14
 
3
 
(22)
 
(14)
 
(7)
 
(2)
 
0
of which: SME clients
 
9,812
 
9,289
 
333
 
190
 
0
 
(34)
 
(28)
 
(6)
 
0
 
0
of which: Lombard
 
73,267
 
73,181
 
84
 
0
 
1
 
0
 
0
 
0
 
0
 
0
of which: Credit cards
 
10,074
 
9,604
 
467
 
3
 
0
 
(8)
 
(6)
 
(2)
 
0
 
0
Irrevocable committed prolongation of existing loans
 
4,608
 
4,602
 
4
 
2
 
0
 
(3)
 
(3)
 
0
 
0
 
0
Total off-balance sheet financial instruments and other credit lines
 
295,027
 
286,776
 
7,572
 
590
 
89
 
(320)
 
(183)
 
(102)
 
(34)
 
(2)
Total allowances and provisions
 
(2,507)
 
(487)
 
(459)
 
(1,253)
 
(309)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances.
 
2 Negative balances are representative of a net improvement in credit
quality since the acquisition of the respective financial instrument, which is reflected as a negative ECL allowance.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
64
Note 8
 
Expected credit loss measurement (continued)
The table
 
below provides information
 
about the gross
 
carrying amount of
 
exposures subject to
 
ECL and
 
the ECL
coverage ratio for UBS’s core
 
loan portfolios (i.e.
Loans and advances to customers
 
and
 
Loans to financial advisors
)
and
 
relevant
 
off-balance
 
sheet
 
exposures.
Cash
 
and
 
balances
 
at
 
central
 
banks
,
Amounts
 
due
 
from
 
banks
,
Receivables from
 
securities
 
financing transactions
,
Cash collateral
 
receivables
 
on derivative
 
instruments
 
and
Financial
assets measured
 
at fair
 
value through
 
other comprehensive
 
income
 
are not included
 
in the
 
table below, due
 
to their
lower sensitivity to ECL.
ECL coverage ratios are calculated by dividing ECL
 
allowances and provisions by the gross carrying amount of the
related exposures.
The
 
overall
 
coverage
 
ratio
 
for
 
performing
 
positions
 
was
 
unchanged
 
at
 
10 basis
 
points.
 
Coverage
 
ratios
 
for
performing positions related
 
to corporate lending (on-balance
 
sheet) increased by
 
5 basis points to 72 basis
 
points.
Coverage ratios
 
for performing
 
positions related
 
to real
 
estate lending
 
(on-balance sheet)
 
decreased by
 
1 basis point
to 4 basis points.
 
Coverage ratios for core loan portfolio
31.3.25
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
 
257,387
 
245,085
 
10,850
 
1,345
 
107
 
5
 
2
 
46
 
3
 
269
 
706
Real estate financing
 
83,476
 
78,366
 
4,860
 
232
 
18
 
7
 
3
 
65
 
7
 
187
 
130
Total real estate lending
 
340,863
 
323,451
 
15,710
 
1,577
 
125
 
6
 
2
 
52
 
4
 
257
 
622
Large corporate clients
 
25,744
 
22,004
 
2,225
 
1,075
 
438
 
251
 
37
 
497
 
79
 
3,120
 
2,703
SME clients
 
22,598
 
18,446
 
2,354
 
1,642
 
155
 
359
 
35
 
286
 
64
 
3,934
 
2,106
Total corporate lending
 
48,341
 
40,451
 
4,580
 
2,717
 
593
 
302
 
36
 
389
 
72
 
3,612
 
2,548
Lombard
 
152,869
 
152,740
 
1
 
50
 
77
 
3
 
1
 
31
 
1
 
3,652
 
2,811
Credit cards
 
2,069
 
1,572
 
431
 
66
 
0
 
214
 
49
 
255
 
94
 
3,847
 
0
Commodity trade finance
 
4,410
 
4,319
 
12
 
80
 
0
 
183
 
18
 
10
 
18
 
9,154
 
5,616
Ship / aircraft financing
 
8,048
 
7,729
 
319
 
0
 
0
 
24
 
20
 
117
 
24
 
0
 
0
Consumer financing
 
2,721
 
2,430
 
128
 
135
 
28
 
340
 
65
 
1,501
 
137
 
4,624
 
0
Other loans and advances to customers
 
36,927
 
34,883
 
1,590
 
184
 
270
 
44
 
6
 
44
 
8
 
1,452
 
3,907
Loans to financial advisors
 
2,778
 
2,603
 
49
 
125
 
0
 
144
 
13
 
174
 
16
 
2,870
 
0
Total other lending
 
209,822
 
206,275
 
2,530
 
640
 
376
 
23
 
4
 
165
 
6
 
3,778
 
3,258
Total
1
 
599,026
 
570,177
 
22,820
 
4,935
 
1,094
 
36
 
5
 
132
 
10
 
2,561
 
2,572
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
 
9,352
 
9,083
 
264
 
6
 
0
 
4
 
3
 
33
 
4
 
421
 
0
Real estate financing
 
8,225
 
7,851
 
374
 
0
 
0
 
8
 
10
 
0
 
8
 
0
 
0
Total real estate lending
 
17,578
 
16,934
 
638
 
6
 
0
 
6
 
6
 
0
 
6
 
416
 
0
Large corporate clients
 
69,056
 
64,495
 
4,286
 
225
 
49
 
27
 
15
 
160
 
24
 
972
 
313
SME clients
 
15,801
 
14,290
 
1,268
 
223
 
21
 
47
 
19
 
293
 
41
 
475
 
190
Total corporate lending
 
84,857
 
78,785
 
5,554
 
448
 
70
 
31
 
16
 
190
 
27
 
725
 
277
Lombard
 
79,638
 
79,597
 
8
 
33
 
0
 
1
 
1
 
14
 
1
 
1,602
 
0
Credit cards
 
10,285
 
9,815
 
467
 
3
 
0
 
8
 
6
 
37
 
8
 
0
 
0
Commodity trade finance
 
3,019
 
3,001
 
17
 
0
 
0
 
2
 
2
 
14
 
2
 
0
 
0
Ship / aircraft financing
 
2,520
 
2,486
 
34
 
0
 
0
 
0
 
0
 
0
 
0
 
0
 
0
Consumer financing
 
377
 
377
 
0
 
0
 
0
 
3
 
3
 
0
 
3
 
0
 
0
Financial intermediaries and hedge funds
 
29,826
 
28,309
 
1,517
 
0
 
0
 
1
 
1
 
3
 
1
 
0
 
0
Other off-balance sheet commitments
 
42,180
 
41,197
 
914
 
61
 
8
 
9
 
5
 
86
 
7
 
1,536
 
0
Total other lending
 
167,845
 
164,782
 
2,958
 
97
 
8
 
4
 
2
 
34
 
3
 
1,506
 
0
Total
2
 
270,279
 
260,501
 
9,150
 
551
 
78
 
12
 
7
 
126
 
11
 
859
 
228
Total on- and off-balance sheet
3
 
869,306
 
830,678
 
31,969
 
5,486
 
1,172
 
28
 
6
 
130
 
10
 
2,390
 
2,416
1 Includes Loans and advances
 
to customers and Loans
 
to financial advisors,
 
which are presented on
 
the balance sheet line Other
 
financial assets measured
 
at amortized cost.
 
2 Excludes Forward
 
starting reverse
repurchase and securities borrowing agreements.
 
3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related
 
ECL coverage ratio (bps).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
65
Note 8
 
Expected credit loss measurement (continued)
Coverage ratios for core loan portfolio
31.12.24
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
 
249,916
 
239,586
 
9,056
 
1,176
 
98
 
6
 
2
 
77
 
5
 
257
 
1,447
Real estate financing
 
82,660
 
78,434
 
4,003
 
202
 
20
 
7
 
3
 
67
 
6
 
353
 
2
Total real estate lending
 
332,576
 
318,020
 
13,059
 
1,378
 
118
 
7
 
2
 
74
 
5
 
271
 
1,203
Large corporate clients
 
25,859
 
20,888
 
3,585
 
983
 
402
 
222
 
35
 
344
 
80
 
2,814
 
2,500
SME clients
 
21,510
 
17,459
 
2,312
 
1,565
 
174
 
345
 
32
 
205
 
52
 
3,918
 
1,474
Total corporate lending
 
47,369
 
38,347
 
5,897
 
2,549
 
576
 
278
 
33
 
290
 
67
 
3,492
 
2,190
Lombard
 
147,547
 
147,141
 
260
 
66
 
79
 
3
 
0
 
8
 
0
 
2,719
 
2,317
Credit cards
 
2,019
 
1,539
 
416
 
64
 
0
 
205
 
39
 
256
 
85
 
3,857
 
0
Commodity trade finance
 
4,284
 
4,098
 
106
 
79
 
0
 
189
 
22
 
40
 
23
 
8,984
 
4,226
Ship / aircraft financing
 
7,879
 
6,988
 
891
 
0
 
0
 
39
 
20
 
184
 
39
 
0
 
0
Consumer financing
 
2,912
 
2,495
 
133
 
221
 
63
 
318
 
62
 
1,449
 
132
 
2,786
 
0
Other loans and advances to customers
 
37,359
 
35,179
 
1,610
 
342
 
228
 
42
 
8
 
57
 
10
 
917
 
3,909
Loans to financial advisors
 
2,764
 
2,571
 
60
 
132
 
0
 
149
 
14
 
159
 
17
 
2,785
 
0
Total other lending
 
204,764
 
200,012
 
3,477
 
905
 
370
 
24
 
4
 
164
 
7
 
2,691
 
2,804
Total
1
 
584,708
 
556,380
 
22,433
 
4,831
 
1,064
 
35
 
5
 
145
 
10
 
2,424
 
2,294
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
 
8,473
 
8,271
 
176
 
25
 
1
 
4
 
4
 
22
 
4
 
84
 
0
Real estate financing
 
8,694
 
8,300
 
394
 
0
 
0
 
7
 
6
 
33
 
7
 
0
 
0
Total real estate lending
 
17,167
 
16,571
 
570
 
25
 
1
 
6
 
5
 
30
 
6
 
84
 
0
Large corporate clients
 
69,892
 
65,009
 
4,612
 
217
 
54
 
28
 
17
 
150
 
26
 
588
 
290
SME clients
 
13,944
 
12,788
 
842
 
287
 
27
 
53
 
30
 
324
 
48
 
281
 
0
Total corporate lending
 
83,837
 
77,797
 
5,454
 
504
 
81
 
32
 
19
 
177
 
30
 
413
 
186
Lombard
 
80,390
 
80,235
 
120
 
30
 
4
 
1
 
0
 
1
 
0
 
1,764
 
0
Credit cards
 
10,074
 
9,604
 
467
 
3
 
0
 
8
 
6
 
36
 
8
 
0
 
0
Commodity trade finance
 
3,487
 
3,464
 
23
 
0
 
0
 
3
 
3
 
51
 
3
 
0
 
0
Ship / aircraft financing
 
2,669
 
2,663
 
6
 
0
 
0
 
13
 
13
 
49
 
13
 
0
 
0
Consumer financing
 
134
 
134
 
0
 
0
 
0
 
6
 
6
 
0
 
6
 
0
 
0
Financial intermediaries and hedge funds
 
19,609
 
19,145
 
464
 
0
 
0
 
1
 
1
 
8
 
1
 
0
 
0
Other off-balance sheet commitments
 
52,765
 
52,268
 
468
 
27
 
2
 
4
 
2
 
28
 
2
 
2,903
 
0
Total other lending
 
169,127
 
167,512
 
1,549
 
61
 
6
 
2
 
1
 
23
 
2
 
2,171
 
0
Total
2
 
270,131
 
261,880
 
7,572
 
590
 
89
 
12
 
7
 
135
 
11
 
580
 
171
Total on- and off-balance sheet
3
 
854,839
 
818,260
 
30,006
 
5,421
 
1,153
 
27
 
6
 
142
 
10
 
2,223
 
2,131
1 Includes Loans and advances to
 
customers and Loans to financial
 
advisors, which are presented
 
on the balance sheet line
 
Other financial assets measured
 
at amortized cost.
 
2 Excludes Forward starting
 
reverse
repurchase and securities borrowing agreements.
 
3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related
 
ECL coverage ratio (bps).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
66
Note 9
 
Fair value measurement
a) Fair value hierarchy
The fair
 
value hierarchy
 
classification of
 
financial and
 
non-financial assets
 
and liabilities
 
measured at
 
fair value
 
is
summarized in the table below.
During the first three
 
months of 2025, assets and
 
liabilities that were transferred from
 
Level 2 to Level 1, or
 
from
Level 1 to Level 2, and were held for the entire
 
reporting period were not material.
Determination of fair values from quoted market prices or valuation techniques
1
31.3.25
31.12.24
USD m
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial assets measured at fair value on a recurring basis
Financial assets at fair value held for trading
133,772
27,799
3,665
165,236
128,393
27,564
3,108
159,065
of which: Equity instruments
 
117,456
 
320
 
138
 
117,914
 
116,501
 
430
 
91
 
117,022
of which: Government bills / bonds
 
8,304
 
3,468
 
46
 
11,817
 
4,443
 
3,261
 
41
 
7,746
of which: Investment fund units
 
7,180
 
949
 
149
 
8,279
 
6,537
 
987
 
151
 
7,675
of which: Corporate and municipal bonds
 
828
 
20,606
 
876
 
22,310
 
911
 
17,462
 
838
 
19,211
of which: Loans
 
0
 
2,254
 
2,292
 
4,545
 
0
 
5,200
 
1,799
 
6,998
of which: Asset-backed securities
 
4
 
197
 
162
 
363
 
1
 
219
 
153
 
373
Derivative financial instruments
1,372
134,204
2,459
138,035
795
181,965
2,792
185,551
of which: Foreign exchange
 
570
 
48,895
 
71
 
49,536
 
472
 
100,328
 
66
 
100,867
of which: Interest rate
 
0
 
37,566
 
898
 
38,464
 
0
 
40,553
 
878
 
41,431
of which: Equity / index
 
0
 
39,940
 
937
 
40,877
 
0
 
35,747
 
1,129
 
36,876
of which: Credit
 
0
 
2,668
 
517
 
3,185
 
0
 
2,555
 
581
 
3,136
of which: Commodities
 
2
 
4,989
 
35
 
5,026
 
1
 
2,599
 
17
 
2,617
Brokerage receivables
 
0
 
28,747
 
0
 
28,747
 
0
 
25,858
 
0
 
25,858
Financial assets at fair value not held for trading
 
40,762
 
52,368
 
9,187
 
102,317
 
35,911
 
50,813
 
8,748
 
95,472
of which: Financial assets for unit-linked investment contracts
 
17,398
 
4
 
0
 
17,403
 
17,101
 
6
 
0
 
17,106
of which: Corporate and municipal bonds
 
30
 
14,844
 
145
 
15,020
 
31
 
14,695
 
133
 
14,859
of which: Government bills / bonds
 
22,856
 
6,062
 
0
 
28,919
 
18,264
 
6,204
 
0
 
24,469
of which: Loans
 
0
 
4,972
 
3,589
 
8,561
 
0
 
4,427
 
3,192
 
7,619
of which: Securities financing transactions
 
0
 
24,995
 
731
 
25,726
 
0
 
24,026
 
611
 
24,638
of which: Asset-backed securities
 
0
 
1,041
 
540
 
1,581
 
0
 
972
 
597
 
1,569
of which: Auction rate securities
 
0
 
0
 
191
 
191
 
0
 
0
 
191
 
191
of which: Investment fund units
 
387
 
362
 
640
 
1,389
 
423
 
401
 
681
 
1,505
of which: Equity instruments
 
90
 
0
 
2,932
 
3,023
 
93
 
0
 
2,917
 
3,010
Financial assets measured at fair value through other comprehensive income on
 
a recurring basis
Financial assets measured at fair value through other comprehensive
 
income
 
1,130
 
2,087
 
0
 
3,216
 
59
 
2,137
 
0
 
2,195
of which: Government bills / bonds
 
1,064
 
0
 
0
 
1,064
 
0
 
0
 
0
 
0
of which: Commercial paper and certificates of deposit
 
0
 
1,916
 
0
 
1,916
 
0
 
1,959
 
0
 
1,959
of which: Corporate and municipal bonds
 
66
 
171
 
0
 
236
 
59
 
178
 
0
 
237
Non-financial assets measured at fair value on a recurring basis
Precious metals and other physical commodities
 
7,623
 
0
 
0
 
7,623
 
7,341
 
0
 
0
 
7,341
Non-financial assets measured at fair value on a non-recurring basis
Other non-financial assets
2
 
0
 
0
 
89
 
89
 
0
 
0
 
84
 
84
Total assets measured at fair value
184,658
245,204
15,400
445,263
172,499
288,337
14,732
475,568
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
67
Note 9
 
Fair value measurement (continued)
Determination of fair values from quoted market prices or valuation techniques (continued)
1
31.3.25
31.12.24
USD m
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial liabilities measured at fair value on a recurring basis
Financial liabilities at fair value held for trading
 
30,503
 
12,565
 
31
 
43,099
 
24,577
 
10,429
 
240
 
35,247
of which: Equity instruments
 
22,597
 
390
 
21
 
23,008
 
18,528
 
257
 
29
 
18,814
of which: Corporate and municipal bonds
 
2
 
10,768
 
5
 
10,775
 
5
 
8,771
 
206
 
8,982
of which: Government bills / bonds
 
6,490
 
1,210
 
0
 
7,699
 
4,336
 
1,174
 
0
 
5,510
of which: Investment fund units
 
1,414
 
96
 
3
 
1,512
 
1,708
 
162
 
3
 
1,873
Derivative financial instruments
1,407
136,581
4,130
142,117
829
175,747
4,060
180,636
of which: Foreign exchange
 
553
 
50,511
 
44
 
51,108
 
506
 
94,035
 
46
 
94,587
of which: Interest rate
 
0
 
33,911
 
337
 
34,248
 
0
 
36,313
 
324
 
36,636
of which: Equity / index
 
0
 
44,707
 
3,293
 
48,000
 
0
 
39,597
 
3,142
 
42,739
of which: Credit
 
0
 
3,182
 
374
 
3,556
 
0
 
3,280
 
414
 
3,694
of which: Commodities
 
2
 
4,128
 
25
 
4,155
 
1
 
2,200
 
15
 
2,216
of which: Loan commitments measured at FVTPL
 
0
 
45
 
29
 
74
 
0
 
75
 
62
 
137
Financial liabilities designated at fair value on a recurring basis
Brokerage payables designated at fair value
 
0
 
59,921
 
0
 
59,921
 
0
 
49,023
 
0
 
49,023
Debt issued designated at fair value
 
0
 
99,373
 
12,719
 
112,092
 
0
 
94,573
 
13,336
 
107,909
Other financial liabilities designated at fair value
 
0
 
24,483
 
2,752
 
27,235
 
0
 
25,931
 
2,768
 
28,699
of which: Financial liabilities related to unit-linked investment contracts
 
0
 
17,528
 
0
 
17,528
 
0
 
17,203
 
0
 
17,203
of which: Securities financing transactions
 
0
 
3,985
 
108
 
4,094
 
0
 
5,798
 
0
 
5,798
of which: Over-the-counter debt instruments and others
 
0
 
2,969
 
2,644
 
5,613
 
0
 
2,930
 
2,768
 
5,698
Total liabilities measured at fair value
31,910
332,923
19,632
384,465
25,406
355,703
20,405
401,514
1 Bifurcated embedded derivatives are presented on the same balance sheet lines
 
as their host contracts and are not included in this table. The fair value of these
 
derivatives was not material for the periods presented.
 
2 Other non-financial assets primarily consist of properties and other non-current assets held for sale, which are measured at the
 
lower of their net carrying amount or fair value less costs to sell.
b) Valuation adjustments
The table below summarizes the changes
 
in deferred day-1 profit or loss reserves during the
 
relevant period.
 
Deferred day-1 profit or loss is generally released into
Other net income from financial instruments measured
 
at fair
value
 
through
 
profit
 
or
 
loss
 
when
 
the
 
pricing
 
of
 
equivalent
 
products
 
or
 
the
 
underlying
 
parameters
 
become
observable or when the transaction is closed out.
Deferred day-1 profit or loss reserves
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Reserve balance at the beginning of the period
 
421
 
418
 
404
Profit / (loss) deferred on new transactions
 
65
 
57
 
42
(Profit) / loss recognized in the income statement
 
(95)
 
(51)
 
(62)
Foreign currency translation
 
(1)
 
(4)
 
0
Reserve balance at the end of the period
 
391
 
421
 
384
The table below summarizes other valuation
 
adjustment reserves recognized on the
 
balance sheet.
Other valuation adjustment reserves on the balance sheet
As of
USD m
31.3.25
31.12.24
Own credit adjustments on financial liabilities designated at fair value
1
 
(897)
 
(1,165)
of which: debt issued designated at fair value
 
(929)
 
(1,188)
of which: other financial liabilities designated at fair value
 
32
 
23
Credit valuation adjustments
2
 
(128)
 
(125)
Funding and debit valuation adjustments
 
(69)
 
(96)
Other valuation adjustments
 
(971)
 
(1,207)
of which: liquidity
 
(570)
 
(746)
of which: model uncertainty
 
(401)
 
(460)
1 Own credit adjustments on financial liabilities designated at fair value includes amounts for TLAC notes.
 
2 Amount does not include reserves against defaulted counterparties.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
68
Note 9
 
Fair value measurement (continued)
c) Level 3 instruments: valuation techniques
 
and inputs
The
 
table
 
below
 
presents material
 
Level 3
 
assets
 
and
 
liabilities,
 
together
 
with
 
the
 
valuation
 
techniques
 
used
 
to
measure fair value,
 
as well as
 
the inputs used
 
in a given
 
valuation technique that are
 
considered significant as of
31 March 2025 and unobservable, and a range
 
of values for those unobservable inputs.
The range of values
 
represents the highest- and
 
lowest-level inputs used in the valuation
 
techniques. Therefore, the
range does not reflect the level of uncertainty regarding a particular input or an assessment of the reasonableness of
the Group’s estimates and assumptions, but rather the different underlying characteristics of the relevant
 
assets and
liabilities held by the Group.
 
The significant unobservable
 
inputs disclosed in
 
the table below
 
are consistent with
 
those included in
 
“Note 21 Fair
value measurement” in the “Consolidated financial
 
statements” section of the UBS Group
 
Annual Report 2024.
Valuation techniques and inputs used in the fair value measurement of Level 3 assets and liabilities
Fair value
Significant unobservable
input(s)
1
Range of inputs
Assets
Liabilities
Valuation technique(s)
31.3.25
31.12.24
USD bn
31.3.25
31.12.24
31.3.25
31.12.24
low
high
weighted
average
2
low
high
weighted
average
2
unit
1
Financial assets and liabilities at fair value held for
 
trading and Financial assets at fair value not held for
 
trading
Corporate and municipal
bonds
 
1.0
 
1.0
 
0.0
 
0.2
Relative value to
market comparable
Bond price equivalent
 
23
 
105
 
89
 
23
 
114
 
98
points
Discounted expected
cash flows
Discount margin
 
917
 
917
 
917
 
868
 
868
 
868
basis
points
Traded loans,
 
loans
designated at fair value
and guarantees
 
6.1
 
5.2
 
0.0
 
0.0
Relative value to
market comparable
Loan price equivalent
 
1
 
102
 
93
 
1
 
173
 
84
points
Discounted expected
cash flows
Credit spread
 
17
 
395
 
132
 
16
 
545
 
195
basis
points
Market comparable
and securitization
model
Credit spread
 
97
 
1,939
 
280
 
75
 
1,899
 
208
basis
points
Asset-backed securities
 
0.7
 
0.7
 
0.0
 
0.0
Relative value to
market comparable
Bond price equivalent
 
1
 
100
 
78
 
0
 
112
 
79
points
Investment fund units
3
 
0.8
 
0.8
 
0.0
 
0.0
Relative value to
market comparable
Net asset value
Equity instruments
3
 
3.1
 
3.0
 
0.0
 
0.0
Relative value to
market comparable
Price
Debt issued designated at
fair value
4
 
12.7
 
13.3
Other financial liabilities
designated at fair value
 
2.8
 
2.8
Discounted expected
cash flows
Funding spread
 
95
 
221
 
95
 
201
basis
points
Derivative financial instruments
Interest rate
 
0.9
 
0.9
 
0.3
 
0.3
Option model
Volatility of interest rates
 
51
 
112
 
50
 
156
basis
points
IR-to-IR correlation
 
67
 
99
 
60
 
99
%
Discounted expected
cash flows
Funding spread
 
5
 
20
 
5
 
20
basis
points
Credit
 
0.5
 
0.6
 
0.4
 
0.4
Discounted expected
cash flows
Credit spreads
 
 
3
 
1,760
 
2
 
1,789
basis
points
Credit correlation
 
50
 
66
 
50
 
66
%
Recovery rates
 
0
 
100
 
0
 
100
%
Option model
Credit volatility
 
60
 
79
 
59
 
127
%
Recovery rates
 
0
 
40
%
Equity / index
 
0.9
 
1.1
 
3.3
 
3.1
Option model
Equity dividend yields
 
0
 
16
 
0
 
16
%
Volatility of equity stocks,
equity and other indices
 
2
 
111
 
4
 
126
%
Equity-to-FX correlation
 
(65)
 
70
 
(65)
 
80
%
Equity-to-equity correlation
 
15
 
100
 
0
 
100
%
Loan commitments
measured at FVTPL
 
0.0
 
0.1
Relative value to
market comparable
Loan price equivalent
 
82
 
100
 
60
 
101
points
1 The ranges of significant unobservable inputs are represented in points,
 
percentages and basis points. Points are a percentage
 
of par (e.g. 100 points would be 100% of par).
 
2 Weighted averages are provided for
most non-derivative financial instruments and were calculated
 
by weighting inputs based on the
 
fair values of the respective instruments. Weighted averages are
 
not provided for inputs related
 
to Other financial liabilities
designated at fair value
 
and Derivative financial instruments,
 
as this would not
 
be meaningful.
 
3 The range
 
of inputs is not
 
disclosed, as there is
 
a dispersion of values
 
given the diverse nature
 
of the investments.
 
4 Debt issued designated at fair value primarily consists of UBS structured notes, which include variable maturity notes with various equity and foreign exchange underlying risks, as well as rates-linked and credit-linked
notes, all of
 
which have embedded
 
derivative parameters
 
that are considered
 
to be unobservable.
 
The equivalent
 
derivative instrument parameters
 
for debt issued
 
or embedded derivatives
 
for over-the-counter
 
debt
instruments are presented in the respective derivative financial instruments lines in this table.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
69
Note 9
 
Fair value measurement (continued)
d) Level 3 instruments: sensitivity to changes
 
in unobservable input assumptions
 
The table below summarizes those financial assets and liabilities classified as Level 3 for
 
which a change in one or
more of
 
the unobservable
 
inputs to
 
reflect reasonably
 
possible alternative
 
assumptions would
 
change fair
 
value
significantly, and the estimated effect thereof.
 
The
 
sensitivity data
 
shown below
 
presents an
 
estimation of
 
valuation uncertainty
 
based
 
on
 
reasonably possible
alternative values for Level 3
 
inputs at the balance sheet
 
date and does not represent
 
the estimated effect of stress
scenarios. Typically,
 
these financial
 
assets and
 
liabilities are
 
sensitive to
 
a combination
 
of inputs
 
from Levels 1–3.
Although well-defined interdependencies
 
may exist
 
between Level 1 / 2 parameters
 
and Level 3
 
parameters (e.g.
between interest rates,
 
which are generally
 
Level 1 or Level 2,
 
and prepayments,
 
which are generally
 
Level 3), these
have not been incorporated
 
in the table. Furthermore,
 
direct interrelationships between
 
the Level 3 parameters are
not a significant element of the valuation uncertainty.
Sensitivity of fair value measurements to changes in unobservable input assumptions
1
31.3.25
31.12.24
USD m
Favorable
 
changes
Unfavorable
 
changes
Favorable
 
changes
Unfavorable
 
changes
Traded loans, loans measured at fair value and guarantees
 
147
 
(115)
 
185
 
(143)
Securities financing transactions
 
25
 
(20)
 
30
 
(24)
Auction rate securities
 
8
 
(6)
 
8
 
(6)
Asset-backed securities
 
23
 
(18)
 
32
 
(28)
Equity instruments
 
348
 
(314)
 
333
 
(308)
Investment fund units
 
176
 
(178)
 
179
 
(181)
Loan commitments measured at FVTPL
 
15
 
(47)
 
38
 
(42)
Interest rate derivatives, net
 
77
 
(65)
 
115
 
(70)
Credit derivatives, net
 
88
 
(108)
 
112
 
(117)
Foreign exchange derivatives, net
 
4
 
(3)
 
3
 
(2)
Equity / index derivatives, net
 
619
 
(503)
 
732
 
(617)
Other
 
256
 
(152)
 
289
 
(161)
Total
 
1,785
 
(1,528)
 
2,056
 
(1,700)
1 Sensitivity of issued and over-the-counter debt instruments is reported with the equivalent derivative
 
or Other.
e) Level 3 instruments: movements during
 
the period
The table below presents additional information about material Level 3 assets and liabilities measured at fair value
on a recurring basis. Level 3 assets and liabilities
 
may be hedged with instruments
 
classified as Level 1 or Level 2 in
the fair
 
value hierarchy
 
and, as
 
a
 
result,
 
realized and
 
unrealized gains
 
and losses
 
included in
 
the table
 
may not
include the effect of related hedging
 
activity. Furthermore, the realized and unrealized gains and
 
losses presented
in the table are not
 
limited solely to those
 
arising from Level 3 inputs,
 
as valuations are generally
 
derived from both
observable and unobservable parameters.
Assets
 
and
 
liabilities
 
transferred
 
into
 
or
 
out
 
of
 
Level 3
 
are
 
presented
 
as
 
if
 
those
 
assets
 
or
 
liabilities
 
had
 
been
transferred on 1 January 2025.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
70
Note 9
 
Fair value measurement (continued)
Movements of Level 3 instruments
USD bn
Balance
at the
 
beginning
of the
period
Net gains /
losses
included in
compre-
hensive
income
1
of which:
related to
instruments
held at the
end of the
period
Purchases
Sales
Issuances
Settlements
Transfers
 
into
 
Level 3
Transfers
 
out of
 
Level 3
Foreign
 
currency
 
translation
Balance
at the
end
of the
period
For the three months ended 31 March 2025
2
Financial assets at fair value held for
trading
 
3.1
 
0.0
 
(0.0)
 
0.2
 
(0.8)
 
1.1
 
(0.3)
 
0.3
 
(0.1)
 
0.0
 
3.7
of which: Equity instruments
 
0.1
 
0.0
 
0.0
 
0.0
 
(0.0)
0.0
 
(0.0)
 
0.1
 
(0.0)
 
0.0
 
0.1
of which: Corporate and municipal
bonds
 
0.8
 
0.0
 
0.0
 
0.2
 
(0.1)
0.0
 
(0.0)
 
0.1
 
(0.1)
 
0.0
 
0.9
of which: Loans
 
1.8
 
0.0
 
(0.0)
 
0.0
 
(0.5)
 
1.1
 
(0.3)
 
0.1
 
(0.0)
 
0.0
 
2.3
Derivative financial instruments –
assets
 
2.8
 
(0.5)
 
(0.4)
0.0
 
0.0
 
0.7
 
(0.6)
 
0.4
 
(0.3)
 
0.0
 
2.5
of which: Interest rate
 
0.9
 
(0.0)
 
(0.0)
0.0
 
0.0
 
0.0
 
(0.1)
 
0.3
 
(0.1)
 
(0.0)
 
0.9
of which: Equity / index
 
1.1
 
(0.3)
 
(0.3)
0.0
0.0
 
0.4
 
(0.2)
 
0.1
 
(0.1)
 
0.0
 
0.9
of which: Credit
 
0.6
 
(0.0)
 
(0.0)
0.0
0.0
 
0.2
 
(0.2)
 
0.0
 
(0.1)
 
0.0
 
0.5
Financial assets at fair value not held
for trading
 
8.7
 
0.1
 
0.1
 
0.1
 
(0.2)
 
0.6
 
(0.2)
 
0.1
 
(0.1)
 
0.1
 
9.2
of which: Loans
 
3.2
 
0.1
 
0.1
 
0.0
 
(0.0)
 
0.5
 
(0.1)
 
0.0
 
(0.1)
 
0.0
 
3.6
of which: Auction rate securities
 
0.2
 
(0.0)
 
(0.0)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
 
0.2
of which: Equity instruments
 
2.9
 
0.0
 
0.0
 
0.0
 
(0.1)
0.0
 
(0.0)
 
0.0
 
(0.0)
 
0.0
 
2.9
of which: Investment fund units
 
0.7
 
0.0
 
(0.0)
 
0.0
 
(0.1)
0.0
0.0
 
0.0
0.0
 
0.0
 
0.6
of which: Asset-backed securities
 
0.6
 
(0.0)
 
(0.0)
 
0.0
 
(0.0)
0.0
0.0
 
0.0
 
(0.1)
 
0.0
 
0.5
Derivative financial instruments –
liabilities
 
4.1
 
0.2
 
0.2
0.0
 
(0.0)
 
0.7
 
(0.6)
 
0.1
 
(0.3)
 
0.0
 
4.1
of which: Interest rate
 
0.3
 
0.0
 
0.0
0.0
 
(0.0)
 
0.0
 
(0.0)
 
0.0
 
(0.0)
 
0.0
 
0.3
of which: Equity / index
 
3.1
 
0.2
 
0.1
0.0
0.0
 
0.6
 
(0.5)
 
0.1
 
(0.3)
 
0.0
 
3.3
of which: Credit
 
0.4
 
0.0
 
0.0
0.0
0.0
 
0.1
 
(0.1)
 
0.0
 
(0.0)
 
(0.0)
 
0.4
of which: Loan commitments
measured at FVTPL
 
0.1
 
(0.0)
 
(0.0)
0.0
0.0
 
0.0
 
(0.0)
 
0.0
 
(0.0)
0.0
 
0.0
Debt issued designated at fair value
 
13.3
 
0.2
 
0.2
0.0
0.0
 
1.7
 
(1.2)
 
0.6
 
(2.1)
 
0.2
 
12.7
Other financial liabilities designated at
fair value
 
2.8
 
(0.0)
 
(0.0)
0.0
 
(0.0)
 
0.3
 
(0.3)
 
0.0
 
(0.0)
 
0.0
 
2.8
For the three months ended 31 March 2024
Financial assets at fair value held for
trading
 
22.6
 
(0.2)
 
(0.0)
 
0.4
 
(8.9)
 
0.9
 
(3.4)
 
1.6
 
(0.7)
 
(0.1)
 
12.4
of which: Equity instruments
 
0.3
 
(0.0)
 
0.0
 
0.0
 
(0.0)
0.0
 
(0.0)
 
0.1
 
(0.1)
 
(0.0)
 
0.2
of which: Corporate and municipal
bonds
 
1.3
 
(0.1)
 
(0.0)
 
0.3
 
(0.4)
0.0
 
(0.0)
 
0.0
 
(0.0)
 
(0.0)
 
1.0
of which: Loans
 
19.6
 
0.4
 
(0.0)
 
0.0
 
(7.8)
 
0.9
 
(3.3)
 
1.4
 
(0.5)
 
(0.0)
 
10.6
Derivative financial instruments –
assets
 
2.6
 
0.1
 
0.1
 
0.0
 
(0.0)
 
0.4
 
(0.4)
 
0.1
 
(0.3)
 
(0.0)
 
2.4
of which: Interest rate
 
0.4
 
0.1
 
0.1
 
0.0
 
(0.0)
 
0.1
 
(0.1)
 
0.0
 
(0.1)
 
0.0
 
0.4
of which: Equity / index
 
1.3
 
(0.1)
 
(0.1)
0.0
 
(0.0)
 
0.3
 
(0.2)
 
0.0
 
(0.1)
 
(0.0)
 
1.2
of which: Credit
 
0.5
 
(0.0)
 
0.0
0.0
 
(0.0)
 
0.0
 
(0.1)
 
0.1
 
(0.1)
 
(0.0)
 
0.4
Financial assets at fair value not held
for trading
 
8.4
 
(0.0)
 
(0.1)
 
0.1
 
(0.1)
 
0.4
 
(0.4)
 
0.4
 
(0.1)
 
(0.1)
 
8.7
of which: Loans
 
2.3
 
0.1
 
0.1
 
0.0
 
(0.0)
 
0.2
 
(0.3)
0.0
 
(0.1)
 
(0.0)
 
2.2
of which: Auction rate securities
 
1.2
 
0.0
 
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
 
1.2
of which: Equity instruments
 
3.1
 
(0.0)
 
(0.1)
 
0.0
 
(0.0)
 
0.0
 
(0.0)
0.0
0.0
 
(0.1)
 
3.0
of which: Investment fund units
 
0.4
 
(0.0)
 
0.0
 
0.0
 
(0.0)
0.0
 
(0.0)
 
0.3
 
(0.0)
 
(0.0)
 
0.7
of which: Asset-backed securities
 
0.5
 
0.0
 
0.0
 
0.0
 
0.0
 
0.0
 
0.0
 
0.0
 
0.0
 
0.0
 
0.4
Derivative financial instruments –
liabilities
 
5.6
 
0.3
 
0.3
0.0
 
(0.2)
 
1.6
 
(1.2)
 
0.3
 
(0.6)
 
(0.0)
 
5.9
of which: Interest rate
 
0.2
 
0.1
 
0.1
0.0
0.0
 
0.0
 
(0.1)
 
0.0
 
(0.0)
 
0.0
 
0.3
of which: Equity / index
 
3.3
 
0.5
 
0.4
0.0
 
(0.0)
 
1.5
 
(0.8)
 
0.2
 
(0.3)
 
(0.0)
 
4.3
of which: Credit
 
0.6
 
(0.0)
 
(0.0)
0.0
 
(0.0)
 
0.1
 
(0.2)
 
0.1
 
(0.1)
 
(0.0)
 
0.5
of which: Loan commitments
measured at FVTPL
 
1.0
 
(0.1)
 
(0.1)
0.0
 
(0.2)
 
0.0
 
(0.0)
 
0.0
 
(0.2)
 
(0.0)
 
0.6
Debt issued designated at fair value
 
15.3
 
0.2
 
0.2
0.0
0.0
 
1.6
 
(1.4)
 
0.9
 
(2.5)
 
(0.1)
 
14.0
Other financial liabilities designated at
fair value
 
2.6
 
(0.2)
 
(0.1)
 
0.0
 
(0.0)
 
0.0
 
(0.3)
 
0.5
 
(0.0)
 
(0.0)
 
2.7
1 Net gains / losses included in
 
comprehensive income are recognized in Net
 
interest income and Other net income
 
from financial instruments measured at
 
fair value through profit or loss
 
in the Income statement,
and also in
 
Gains / (losses)
 
from own credit
 
on financial liabilities
 
designated at fair
 
value, before
 
tax in the
 
Statement of comprehensive
 
income.
 
2 Total Level 3
 
assets as of
 
31 March 2025 were
 
USD 15.4bn
(31 December 2024: USD 14.7bn). Total Level 3 liabilities as of 31 March 2025 were USD 19.6bn (31 December 2024:
 
USD 20.4bn).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
71
Note 9
 
Fair value measurement (continued)
f) Financial instruments not measured
 
at fair value
The table
 
below reflects
 
the estimated
 
fair values
 
of financial
 
instruments not
 
measured at
 
fair value.
 
Valuation
principles applied
 
when determining fair
 
value estimates for
 
financial instruments not
 
measured at
 
fair value
 
are
consistent with those described in “Note 21
 
Fair value measurement” in the “Consolidated financial statements”
section of the UBS Group Annual Report 2024.
Financial instruments not measured at fair value
31.3.25
31.12.24
USD bn
Carrying
amount
Fair value
Carrying
amount
Fair value
Assets
Cash and balances at central banks
 
231.4
 
231.4
 
223.3
 
223.3
Amounts due from banks
 
21.1
 
21.1
 
18.9
 
18.9
Receivables from securities financing transactions measured at amortized
 
cost
 
101.8
 
101.8
 
118.3
 
118.3
Cash collateral receivables on derivative instruments
 
39.0
 
39.0
 
44.0
 
44.0
Loans and advances to customers
 
594.1
 
592.2
 
580.0
 
579.7
Other financial assets measured at amortized cost
 
66.5
 
65.1
 
58.8
 
57.0
Liabilities
Amounts due to banks
 
27.8
 
27.8
 
23.3
 
23.4
Payables from securities financing transactions measured at amortized cost
 
15.0
 
15.0
 
14.8
 
14.8
Cash collateral payables on derivative instruments
 
31.5
 
31.5
 
35.5
 
35.5
Customer deposits
 
744.9
 
745.6
 
745.8
 
746.6
Debt issued measured at amortized cost
 
213.9
 
218.5
 
214.2
 
220.6
Other financial liabilities measured at amortized cost
1
 
14.6
 
14.6
 
16.4
 
16.4
1 Excludes lease liabilities.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
72
Note 10
 
Derivative instruments
a) Derivative instruments
As of 31.3.25, USD bn
Derivative
financial
assets
Derivative
financial
liabilities
Notional values
related to derivative
financial assets and
liabilities
1
Other
notional
values
2
Derivative financial instruments
Interest rate
 
38.5
 
34.2
 
3,716
 
18,048
Credit derivatives
 
3.2
 
3.6
 
173
Foreign exchange
 
49.5
 
51.1
 
7,248
 
294
Equity / index
 
40.9
 
48.0
 
1,419
 
104
Commodities
 
5.0
 
4.2
 
180
 
19
Other
3
 
0.9
 
1.1
 
178
Total derivative financial instruments, based on netting under IFRS Accounting Standards
4
 
138.0
 
142.1
 
12,913
 
18,465
Further netting potential not recognized on the balance
 
sheet
5
 
(122.6)
 
(127.8)
of which: netting of recognized financial liabilities / assets
 
(100.8)
 
(100.8)
of which: netting with collateral received / pledged
 
(21.8)
 
(27.0)
Total derivative financial instruments, after consideration of further netting potential
 
15.5
 
14.3
As of 31.12.24, USD bn
Derivative financial instruments
Interest rate
 
41.4
 
36.6
 
3,644
 
16,844
Credit derivatives
 
3.1
 
3.7
 
144
Foreign exchange
 
100.9
 
94.6
 
7,207
 
269
Equity / index
 
36.9
 
42.7
 
1,365
 
93
Commodities
 
2.6
 
2.2
 
155
 
17
Other
3
 
0.6
 
0.8
 
87
Total derivative financial instruments, based on netting under IFRS Accounting Standards
4
 
185.6
 
180.6
 
12,602
 
17,223
Further netting potential not recognized on the balance
 
sheet
5
 
(161.7)
 
(166.3)
of which: netting of recognized financial liabilities / assets
 
(135.5)
 
(135.5)
of which: netting with collateral received / pledged
 
(26.2)
 
(30.8)
Total derivative financial instruments, after consideration of further netting potential
 
23.9
 
14.3
1 In cases where derivative
 
financial instruments are presented
 
on a net basis
 
on the balance sheet,
 
the respective notional
 
values of the netted
 
derivative financial instruments
 
are still presented on
 
a gross basis.
Notional amounts of client-cleared ETD and OTC transactions
 
through central clearing counterparties are not disclosed, as they
 
have a significantly different risk profile.
 
2 Other notional values relate to derivatives
that are cleared through either a central counterparty or an exchange and settled on a
 
daily basis. The fair value of these derivatives is presented on the balance sheet net of the corresponding cash margin under Cash
collateral receivables on derivative
 
instruments and Cash collateral payables
 
on derivative instruments and
 
was not material for all
 
periods presented.
 
3 Includes Loan commitments measured at
 
FVTPL, as well as
unsettled purchases and sales of non-derivative
 
financial instruments for which the changes
 
in the fair value between trade
 
date and settlement date are recognized
 
as derivative financial instruments.
 
4 Financial
assets and liabilities
 
are presented net
 
on the balance sheet
 
if UBS has
 
the unconditional and
 
legally enforceable right to
 
offset the recognized
 
amounts, both in
 
the normal course
 
of business and
 
in the event of
default, bankruptcy or insolvency of UBS or
 
its counterparties, and intends either
 
to settle on a net basis
 
or to realize the asset and
 
settle the liability simultaneously.
 
5 Reflects the netting potential in
 
accordance
with enforceable master netting and similar arrangements where not all criteria for a net presentation on the balance sheet have been met. Refer to “Note 22 Offsetting financial assets and financial liabilities” in the
“Consolidated financial statements” section of the UBS Group Annual Report 2024 for more information.
 
b) Cash collateral on derivative instruments
USD bn
Receivables
31.3.25
Payables
31.3.25
Receivables
31.12.24
Payables
31.12.24
Cash collateral on derivative instruments, based on netting under IFRS Accounting
 
Standards
1
 
39.0
 
31.5
 
44.0
 
35.5
Further netting potential not recognized on the balance
 
sheet
2
 
(24.3)
 
(16.6)
 
(28.3)
 
(21.7)
of which: netting of recognized financial liabilities / assets
 
(22.2)
 
(14.5)
 
(25.9)
 
(19.3)
of which: netting with collateral received / pledged
 
(2.1)
 
(2.1)
 
(2.4)
 
(2.4)
Cash collateral on derivative instruments, after consideration of further netting potential
 
14.7
 
14.9
 
15.7
 
13.8
1 Financial assets and liabilities are presented
 
net on the balance sheet if UBS
 
has the unconditional and legally enforceable right
 
to offset the recognized amounts,
 
both in the normal course of
 
business and in the
event of default,
 
bankruptcy or insolvency
 
of UBS or
 
its counterparties, and
 
intends either to
 
settle on a
 
net basis or
 
to realize the
 
asset and settle
 
the liability simultaneously.
 
2 Reflects the
 
netting potential in
accordance with enforceable
 
master netting and
 
similar arrangements where
 
not all criteria
 
for a net
 
presentation on the
 
balance sheet have
 
been met. Refer
 
to “Note 22
 
Offsetting financial assets
 
and financial
liabilities” in the “Consolidated financial statements” section of the UBS Group Annual Report 2024 for more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
73
Note
11
 
Other assets and liabilities
a) Other financial assets measured at amortized cost
USD m
31.3.25
31.12.24
Debt securities
 
48,097
 
41,585
Loans to financial advisors
 
2,738
 
2,723
Fee- and commission-related receivables
 
2,506
 
2,242
Finance lease receivables
 
6,056
 
5,879
Settlement and clearing accounts
 
 
445
 
430
Accrued interest income
 
2,101
 
2,115
Other
1
 
4,571
 
3,862
Total other financial assets measured at amortized cost
 
66,513
 
58,835
1 Predominantly includes cash collateral provided to exchanges and clearing houses to secure securities trading activity through
 
those counterparties.
b) Other non-financial assets
USD m
31.3.25
31.12.24
Precious metals and other physical commodities
 
 
7,623
 
7,341
Deposits and collateral provided in connection with litigation,
 
regulatory and similar matters
1
 
2,012
 
1,946
Prepaid expenses
 
1,867
 
1,679
Current tax assets
 
 
1,460
 
1,546
VAT,
 
withholding tax and other tax receivables
 
875
 
1,233
Properties and other non-current assets held for sale
 
189
 
196
Assets of disposal groups held for sale
2
 
1,705
Other
 
1,810
 
2,119
Total other non-financial assets
 
15,836
 
17,766
1 Refer to Note 14 for more information.
 
2 Refer to Note 5 for more information about the sale of Select Portfolio Servicing.
c) Other financial liabilities measured at amortized cost
USD m
31.3.25
31.12.24
Other accrued expenses
 
3,039
 
3,140
Accrued interest expenses
 
4,951
 
5,876
Settlement and clearing accounts
 
2,218
 
1,944
Lease liabilities
 
4,560
 
4,597
Other
 
 
4,375
 
5,476
Total other financial liabilities measured at amortized cost
 
19,143
 
21,033
d) Other financial liabilities designated at fair value
USD m
31.3.25
31.12.24
Financial liabilities related to unit-linked investment contracts
 
17,528
 
17,203
Securities financing transactions
 
4,093
 
5,798
Over-the-counter debt instruments and other
 
5,613
 
5,698
Total other financial liabilities designated at fair value
 
27,235
 
28,699
e) Other non-financial liabilities
USD m
31.3.25
31.12.24
Compensation-related liabilities
 
6,716
 
9,592
of which: net defined benefit liability
 
779
 
763
Current tax liabilities
 
1,818
 
1,671
Deferred tax liabilities
 
365
 
340
VAT,
 
withholding tax and other tax payables
 
1,054
 
1,156
Deferred income
 
546
 
555
Liabilities of disposal groups held for sale
1
 
1,199
Other
 
91
 
320
Total other non-financial liabilities
 
10,590
 
14,834
1 Refer to Note 5 for more information about the sale of Select Portfolio Servicing.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
74
Note
12
 
Debt issued designated at fair value
Debt issued designated at fair value
USD m
31.3.25
31.12.24
Equity-linked
1
 
57,151
 
54,069
Rates-linked
 
 
23,778
 
23,641
Credit-linked
 
5,354
 
5,225
Fixed-rate
 
14,352
 
14,250
Commodity-linked
 
3,462
 
3,592
Other
 
7,995
 
7,131
of which: debt that contributes to total loss-absorbing capacity
 
5,263
 
4,934
Total debt issued designated at fair value
2
 
112,092
 
107,909
1 Includes investment fund unit-linked instruments issued.
 
2 As of 31 March 2025, 100% of Total debt issued designated at fair value was unsecured
 
(31 December 2024: 100%).
Note
13
 
Debt issued measured at amortized cost
Debt issued measured at amortized cost
USD m
31.3.25
31.12.24
Short-term debt
1
 
30,572
 
30,509
Senior unsecured debt
 
 
130,323
 
133,159
of which: contributes to total loss-absorbing capacity
 
93,863
 
92,515
Covered bonds
 
9,044
 
8,762
Subordinated debt
 
17,038
 
15,030
of which: eligible as high-trigger loss-absorbing additional
 
tier 1 capital instruments
2
 
16,352
 
13,084
of which: eligible as low-trigger loss-absorbing additional
 
tier 1 capital instruments
 
1,245
of which: eligible as non-Basel III-compliant tier 2 capital
 
instruments
 
205
 
207
Debt issued through the Swiss central mortgage institutions
 
26,474
 
26,335
Other long-term debt
 
429
 
424
Long-term debt
3
 
183,308
 
183,709
Total debt issued measured at amortized cost
4,5
 
213,880
 
214,219
1 Debt with an original contractual
 
maturity of less than
 
one year,
 
includes mainly certificates of deposit
 
and commercial paper.
 
2 For 31 March
 
2025, includes USD 10.1bn (31
 
December 2024: USD 6.9bn)
 
that
are, upon the occurrence of a trigger event or a viability event, subject to conversion into ordinary UBS
 
shares.
 
3 Debt with an original contractual maturity greater than or equal to one year. The classification of debt
issued into short-term and long-term does
 
not consider any early redemption
 
features.
 
4 Net of bifurcated embedded derivatives,
 
the fair value of which
 
was not material for the
 
periods presented.
 
5 Except for
Covered bonds (100% secured), Debt issued through the Swiss central mortgage institutions (100% secured) and Other long-term
 
debt (92% secured), 100% of the balance was unsecured as of 31 March 2025.
Note 14
 
Provisions and contingent liabilities
a) Provisions and contingent liabilities
The table below presents an overview of total provisions
 
and contingent liabilities.
Overview of total provisions and contingent liabilities
USD m
31.3.25
31.12.24
Provisions related to expected credit losses (IFRS 9,
Financial Instruments
)
1
 
337
 
320
Provisions related to Credit Suisse loan commitments (IFRS
 
3,
Business Combinations
)
 
809
 
997
Provisions related to litigation, regulatory and similar matters
 
(IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
)
 
3,852
 
3,602
Acquisition-related contingent liabilities relating to litigation,
 
regulatory and similar matters (IFRS 3,
Business Combinations
)
 
2,031
 
2,122
Restructuring, real-estate and other provisions (IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
)
 
1,489
 
1,368
Total provisions and contingent liabilities
 
8,517
 
8,409
1 Refer to Note 8c for more information about ECL provisions recognized for off-balance sheet financial instruments and credit lines.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
75
Note 14
 
Provisions and contingent liabilities
 
(continued)
The table below presents additional information for provisions under IAS 37,
Provisions, Contingent Liabilities and
Contingent Assets
.
Additional information for provisions under IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
USD m
Litigation,
regulatory and
similar matters
1
Restructuring
2
Real estate
3
Other
4
Total
Balance as of 31 December 2024
 
3,602
 
813
 
240
 
315
 
4,969
Increase in provisions recognized in the income statement
 
124
 
318
 
4
 
41
 
488
Release of provisions recognized in the income statement
 
(11)
 
(34)
 
(2)
 
(22)
 
(68)
Provisions used in conformity with designated purpose
 
(30)
 
(191)
 
(13)
 
(12)
 
(246)
Reclassifications
 
100
5
 
0
 
0
 
0
 
100
Foreign currency translation and other movements
 
66
 
15
 
9
 
7
 
97
Balance as of 31 March 2025
 
3,852
 
921
 
239
 
329
 
5,340
1 Consists of provisions
 
for losses
 
resulting from
 
legal, liability
 
and compliance risks.
 
2 Includes USD
 
374m of provisions
 
for onerous
 
contracts related
 
to real estate
 
as of 31
 
March 2025
 
(31 December 2024:
USD 383m) and USD 439m of personnel-related restructuring provisions as
 
of 31 March 2025 (31 December 2024: USD 334m), as
 
well as provisions for onerous contracts related to technology.
 
3 Mainly includes
provisions for reinstatement costs with respect to
 
leased properties.
 
4 Mainly includes provisions related to employee benefits, VAT and operational risks.
 
5 Includes reclassifications from IFRS 3 contingent liabilities
to IAS 37 provisions.
Information about provisions and
 
contingent liabilities in respect of
 
litigation, regulatory and similar matters,
 
as a
class,
 
is
 
included
 
in
 
Note 14b.
 
There
 
are
 
no
 
material
 
contingent
 
liabilities
 
associated
 
with
 
the
 
other
 
classes
 
of
provisions.
b) Litigation, regulatory and similar matters
The Group operates in
 
a legal and regulatory
 
environment that exposes it to
 
significant litigation and similar risks
arising from disputes
 
and regulatory proceedings. As
 
a result,
 
UBS (which for
 
purposes of this
 
Note may
 
refer to
UBS
 
Group
 
AG
 
and/or
 
one
 
or
 
more
 
of
 
its
 
subsidiaries,
 
as
 
applicable)
 
is
 
involved
 
in
 
various
 
disputes
 
and
 
legal
proceedings, including litigation, arbitration,
 
and regulatory and criminal investigations.
Such matters are subject
 
to many uncertainties,
 
and the outcome and the
 
timing of resolution are
 
often difficult to
predict,
 
particularly in
 
the
 
earlier
 
stages
 
of
 
a
 
case.
 
There
 
are
 
also
 
situations
 
where
 
the Group
 
may
 
enter into
 
a
settlement
 
agreement.
 
This
 
may
 
occur
 
in
 
order
 
to
 
avoid
 
the
 
expense,
 
management
 
distraction
 
or
 
reputational
implications of
 
continuing to
 
contest liability,
 
even
 
for those
 
matters for
 
which
 
the Group
 
believes it
 
should be
exonerated. The uncertainties inherent in all such matters affect the amount and timing of any potential outflows
for both matters
 
with respect to
 
which provisions have
 
been established and
 
other contingent liabilities.
 
The Group
makes
 
provisions
 
for
 
such
 
matters
 
brought
 
against
 
it
 
when,
 
in
 
the
 
opinion
 
of
 
management
 
after
 
seeking legal
advice, it
 
is more
 
likely than
 
not that
 
the Group
 
has a
 
present legal
 
or constructive obligation
 
as a
 
result of
 
past
events, it
 
is probable
 
that an
 
outflow of
 
resources will
 
be required,
 
and the
 
amount can
 
be reliably
 
estimated. Where
these factors
 
are
 
otherwise satisfied,
 
a
 
provision may
 
be
 
established for
 
claims that
 
have
 
not
 
yet been
 
asserted
against the
 
Group, but
 
are nevertheless
 
expected to
 
be, based
 
on
 
the Group’s
 
experience with
 
similar asserted
claims.
 
If
 
any
 
of
 
those
 
conditions
 
is
 
not
 
met,
 
such
 
matters
 
result
 
in
 
contingent
 
liabilities.
 
If
 
the
 
amount
 
of
 
an
obligation cannot
 
be reliably
 
estimated, a
 
liability exists
 
that is
 
not recognized
 
even if
 
an outflow
 
of resources
 
is
probable. Accordingly, no
 
provision is
 
established even if
 
the potential
 
outflow of resources
 
with respect
 
to such
matters could be significant. Developments relating to a matter that occur after the relevant reporting period, but
prior
 
to
 
the
 
issuance
 
of
 
financial
 
statements, which
 
affect
 
management’s assessment
 
of
 
the
 
provision
 
for
 
such
matter
 
(because,
 
for
 
example,
 
the
 
developments provide
 
evidence of
 
conditions that
 
existed
 
at
 
the
 
end
 
of
 
the
reporting
 
period),
 
are
 
adjusting
 
events
 
after
 
the
 
reporting period
 
under
 
IAS
 
10
 
and
 
must
 
be
 
recognized in
 
the
financial statements for the reporting period.
Specific litigation, regulatory and other matters are
 
described below, including all such matters that
 
management
considers to be material and others that management believes to be of significance to the Group due to potential
financial,
 
reputational
 
and
 
other
 
effects.
 
The
 
amount
 
of
 
damages
 
claimed,
 
the
 
size
 
of
 
a
 
transaction
 
or
 
other
information is
 
provided where
 
available and
 
appropriate in order
 
to assist
 
users in
 
considering the
 
magnitude of
potential exposures.
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
76
Note 14
 
Provisions and contingent liabilities
 
(continued)
In the case of certain matters below, we state that we have established a provision, and for the other matters, we
make no such statement. When we
 
make this statement and we expect
 
disclosure of the amount of a provision
 
to
prejudice seriously our
 
position with other
 
parties in the
 
matter because it
 
would reveal what
 
UBS believes to
 
be
the
 
probable
 
and
 
reliably estimable
 
outflow, we
 
do
 
not
 
disclose
 
that amount.
 
In
 
some
 
cases we
 
are
 
subject to
confidentiality obligations
 
that preclude
 
such disclosure.
 
With respect
 
to the
 
matters for
 
which we
 
do not
 
state
whether we have
 
established a provision,
 
either: (a) we
 
have not established
 
a provision; or
 
(b) we have
 
established
a provision
 
but expect
 
disclosure of
 
that fact
 
to prejudice
 
seriously our
 
position with
 
other parties
 
in the
 
matter
because it would reveal the fact that
 
UBS believes an outflow of resources to be probable
 
and reliably estimable.
With respect to certain litigation, regulatory
 
and similar matters for which we
 
have established provisions, we are
able to
 
estimate the expected
 
timing of outflows.
 
However, the aggregate
 
amount of the
 
expected outflows for
those matters for which we
 
are able to estimate expected
 
timing is immaterial relative to
 
our current and expected
levels of liquidity over the relevant time periods.
The
 
aggregate
 
amount
 
provisioned
 
for
 
litigation,
 
regulatory
 
and
 
similar
 
matters
 
as
 
a
 
class
 
is
 
disclosed
 
in
 
the
“Provisions” table in Note 14 a) above. UBS provides below
 
an estimate of the aggregate liability for its litigation,
regulatory and
 
similar matters
 
as a
 
class of
 
contingent liabilities.
 
Estimates of
 
contingent liabilities
 
are inherently
imprecise and
 
uncertain as
 
these
 
estimates require UBS
 
to
 
make speculative
 
legal assessments
 
as
 
to claims
 
and
proceedings that involve
 
unique fact patterns
 
or novel legal
 
theories, that have
 
not yet been
 
initiated or are
 
at early
stages of
 
adjudication, or
 
as to
 
which
 
alleged damages
 
have
 
not been
 
quantified by
 
the claimants.
 
Taking into
account these uncertainties
 
and the other factors
 
described herein, UBS
 
estimates the future losses
 
that could arise
from litigation,
 
regulatory and
 
similar matters
 
disclosed below
 
for which
 
an estimate
 
is possible,
 
that are
 
not covered
by existing
 
provisions (including
 
acquisition-related contingent
 
liabilities established
 
under IFRS
 
3 in connection
 
with
the acquisition of Credit Suisse), are in the range
 
of USD 0bn to USD 1.8bn.
 
Litigation, regulatory
 
and similar
 
matters may
 
also result
 
in non-monetary
 
penalties and
 
consequences. A
 
guilty plea
to, or conviction of, a crime could have material consequences for UBS. Resolution of regulatory proceedings may
require UBS to obtain waivers of regulatory disqualifications to maintain certain operations, may entitle regulatory
authorities to limit, suspend or terminate
 
licenses and regulatory authorizations, and may
 
permit financial market
utilities to
 
limit, suspend
 
or terminate
 
UBS’s participation
 
in such
 
utilities. Failure
 
to obtain
 
such waivers,
 
or any
limitation, suspension
 
or termination
 
of licenses,
 
authorizations or
 
participations, could
 
have material
 
consequences
for UBS.
The
 
amounts
 
shown
 
in
 
the
 
table
 
below
 
reflect
 
the
 
provisions
 
recorded
 
under
 
IFRS
 
Accounting
 
Standards.
 
In
connection with
 
the acquisition
 
of Credit
 
Suisse, UBS
 
Group AG
 
additionally has
 
reflected in
 
its purchase
 
accounting
under IFRS
 
3 a
 
valuation adjustment
 
reflecting an
 
estimate of
 
outflows relating
 
to contingent
 
liabilities for
 
all present
obligations included in
 
the scope
 
of the
 
acquisition at fair
 
value upon
 
closing, even
 
if it
 
is not
 
probable that the
contingent
 
liability
 
will
 
result
 
in
 
an
 
outflow
 
of
 
resources,
 
significantly
 
decreasing
 
the
 
recognition
 
threshold
 
for
litigation
 
liabilities
 
beyond
 
those
 
that
 
generally apply
 
under
 
IFRS
 
Accounting Standards.
 
The
 
IFRS
 
3
 
acquisition-
related contingent liabilities
 
of USD 2.0bn at
 
31 March 2025 reflect
 
a decrease of
 
USD 0.1bn from 31 December
2024 as a result of reclassifications to provisions
 
under IAS 37.
Provisions for litigation, regulatory and similar matters, by business division and in Group Items
1
USD m
Global Wealth
Management
Personal &
Corporate
Banking
 
Asset
Management
Investment
Bank
Non-core
and Legacy
Group Items
UBS Group
Balance as of 31 December 2024
 
1,271
 
147
 
1
 
266
 
1,779
 
139
 
3,602
Increase in provisions recognized in the income statement
 
15
 
0
 
0
 
29
 
7
 
73
 
124
Release of provisions recognized in the income statement
 
(1)
 
0
 
0
 
(9)
 
0
 
(1)
 
(11)
Provisions used in conformity with designated purpose
 
(12)
 
0
 
0
 
0
 
(15)
 
(2)
 
(30)
Reclassifications
2
 
(1)
 
0
 
0
 
0
 
101
 
0
 
100
Foreign currency translation and other movements
 
46
 
6
 
0
 
7
 
6
 
0
 
66
Balance as of 31 March 2025
 
1,318
 
153
 
0
 
293
 
1,878
 
209
 
3,852
1 Provisions, if any, for
 
the matters described in items 2
 
and 9 of this Note are recorded
 
in Global Wealth Management. Provisions,
 
if any, for the matters
 
described in items 4, 5, 6, 7,
 
8, 11 and 12 of this
 
Note are
recorded in Non-core
 
and Legacy.
 
Provisions, if
 
any, for
 
the matters described
 
in item 1
 
of this Note
 
are allocated between
 
Global Wealth
 
Management, Personal
 
& Corporate
 
Banking and Non-core
 
and Legacy.
Provisions, if any, for the matters described in item 3 of this Note are allocated between the Investment Bank, Non-core
 
and Legacy and Group Items. Provisions, if any, for the matters described in item 10 of this Note
are allocated between the Investment Bank and Non-core and Legacy.
 
2 Includes reclassifications from IFRS 3 contingent liabilities to IAS 37 provisions.
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
77
Note 14
 
Provisions and contingent liabilities
 
(continued)
1. Inquiries regarding cross-border wealth management
 
businesses
 
Tax
 
and regulatory
 
authorities in
 
a number
 
of countries
 
have made
 
inquiries, served
 
requests for
 
information or
examined
 
employees
 
located
 
in
 
their
 
respective
 
jurisdictions
 
relating
 
to
 
the
 
cross-border
 
wealth
 
management
services provided by
 
UBS and
 
other financial
 
institutions. Credit Suisse
 
offices in various
 
locations, including
 
the UK,
the Netherlands, France and
 
Belgium, have been contacted
 
by regulatory and law enforcement
 
authorities seeking
records and information
 
concerning investigations
 
into Credit Suisse’s
 
historical private
 
banking services
 
on a cross-
border basis and
 
in part through
 
its local branches
 
and banks.
 
The UK and
 
French aspects of
 
these issues have
 
been
closed. UBS is continuing to cooperate with
 
the authorities.
Since 2013, UBS
 
(France) S.A., UBS AG
 
and certain former employees
 
have been under investigation in
 
France in
relation to UBS’s cross-border business with French
 
clients. In connection with this investigation, the investigating
judges ordered UBS AG to provide bail (“
caution
”) of EUR 1.1bn.
In 2019,
 
the court of
 
first instance
 
returned a verdict
 
finding UBS AG
 
guilty of
 
unlawful solicitation of
 
clients on
French territory and aggravated
 
laundering of the proceeds
 
of tax fraud, and UBS
 
(France) S.A. guilty of aiding
 
and
abetting unlawful
 
solicitation and
 
of laundering
 
the proceeds
 
of tax
 
fraud. The
 
court imposed
 
fines aggregating
EUR 3.7bn on UBS AG and UBS (France) S.A. and awarded EUR 800m of civil
 
damages to the French state. A trial
in the
 
Paris Court
 
of Appeal
 
took place
 
in March
 
2021. In
 
December 2021,
 
the Court
 
of Appeal
 
found UBS AG
guilty of unlawful solicitation and aggravated laundering of the proceeds of tax fraud. The court ordered a fine of
EUR
 
3.75m,
 
the
 
confiscation
 
of
 
EUR 1bn,
 
and
 
awarded
 
civil
 
damages
 
to
 
the
 
French
 
state
 
of
 
EUR 800m.
 
UBS
appealed the decision to
 
the French Supreme Court. The
 
Supreme Court rendered its judgment
 
on 15 November
2023. It
 
upheld the
 
Court of
 
Appeal’s decision regarding
 
unlawful solicitation and
 
aggravated laundering of
 
the
proceeds of tax fraud, but overturned
 
the confiscation of EUR 1bn, the penalty of EUR 3.75m
 
and the EUR 800m
of civil
 
damages awarded
 
to the
 
French state.
 
The case
 
has been
 
remanded to
 
the Court
 
of Appeal
 
for a
 
retrial
regarding these overturned elements.
 
The French state has reimbursed the
 
EUR 800m of civil damages
 
to UBS AG.
In
 
May
 
2014,
 
Credit
 
Suisse
 
entered
 
into
 
settlement
 
agreements
 
with
 
the
 
SEC,
 
Federal
 
Reserve
 
and
 
New
 
York
Department of Financial Services and entered
 
into an agreement with the US Department
 
of Justice (DOJ) to plead
guilty to
 
conspiring to
 
aid and
 
abet US
 
taxpayers in
 
filing false
 
tax returns
 
(2014 Plea
 
Agreement). Credit
 
Suisse
continued to report
 
to and cooperate
 
with US authorities
 
in accordance with its
 
obligations under the
 
2014 Plea
Agreement, including by
 
conducting a review
 
of cross-border services
 
provided by Credit
 
Suisse. In this connection,
Credit Suisse provided
 
information to US
 
authorities regarding potentially undeclared US
 
assets held by
 
clients at
Credit Suisse. UBS continues to cooperate with
 
the ongoing investigation by the DOJ.
Our balance sheet at 31 March 2025 reflected provisions
 
in an amount that UBS believes to be appropriate under
the applicable accounting standard. As in the case of other matters for
 
which we have established provisions, the
future
 
outflow of
 
resources in
 
respect of
 
such
 
matters cannot
 
be
 
determined with
 
certainty
 
based on
 
currently
available information
 
and accordingly
 
may ultimately
 
prove to
 
be substantially
 
greater (or
 
may be
 
less) than
 
the
provision that we have recognized.
2. Madoff
In relation to
 
the Bernard
 
L. Madoff Investment
 
Securities LLC
 
(BMIS) investment
 
fraud, UBS AG,
 
UBS (Luxembourg)
S.A. (now UBS
 
Europe SE, Luxembourg
 
branch) and certain
 
other UBS subsidiaries have
 
been subject to
 
inquiries
by a
 
number of
 
regulators, including
 
the Swiss
 
Financial Market
 
Supervisory Authority
 
(FINMA) and
 
the Luxembourg
Commission
 
de
 
Surveillance
 
du
 
Secteur
 
Financier.
 
Those
 
inquiries
 
concerned
 
two
 
third-party
 
funds
 
established
under Luxembourg
 
law,
 
substantially all
 
assets of
 
which were
 
with BMIS,
 
as well
 
as certain
 
funds established
 
in
offshore
 
jurisdictions
 
with
 
either
 
direct
 
or
 
indirect
 
exposure
 
to
 
BMIS.
 
These
 
funds
 
faced
 
severe
 
losses,
 
and
 
the
Luxembourg funds are in liquidation. The documentation establishing both funds identifies UBS entities in various
roles,
 
including custodian,
 
administrator,
 
manager,
 
distributor and
 
promoter,
 
and indicates
 
that UBS
 
employees
serve as board members.
In 2009 and 2010, the liquidators
 
of the two Luxembourg funds
 
filed claims against UBS entities,
 
non-UBS entities
and
 
certain
 
individuals,
 
including
 
current
 
and
 
former
 
UBS
 
employees,
 
seeking
 
amounts
 
totaling
 
approximately
EUR 2.1bn, which includes
 
amounts that the
 
funds may be
 
held liable to
 
pay the trustee
 
for the liquidation
 
of BMIS
(BMIS Trustee).
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
78
Note 14
 
Provisions and contingent liabilities
 
(continued)
A large number of alleged beneficiaries have filed claims
 
against UBS entities (and non-UBS entities) for purported
losses relating to
 
the Madoff fraud.
 
The majority of
 
these cases have
 
been filed in
 
Luxembourg, where decisions
that the claims in eight test cases were inadmissible have been affirmed by the Luxembourg Court of Appeal, and
the Luxembourg Supreme Court has dismissed
 
a further appeal in one of the test
 
cases.
In the
 
US, the
 
BMIS Trustee
 
filed claims
 
against UBS
 
entities, among
 
others, in
 
relation to
 
the two
 
Luxembourg
funds and one of
 
the offshore funds. The
 
total amount claimed against
 
all defendants in
 
these actions was
 
not less
than USD 2bn. In
 
2014, the US
 
Supreme Court rejected
 
the BMIS Trustee’s
 
motion for leave
 
to appeal decisions,
dismissing all
 
claims against
 
UBS defendants
 
except those
 
for the
 
recovery of
 
approximately USD 125m
 
of payments
alleged to be
 
fraudulent conveyances
 
and preference
 
payments. Similar
 
claims have
 
been filed against
 
Credit Suisse
entities seeking to recover
 
redemption payments. In
 
2016, the bankruptcy
 
court dismissed these
 
claims against the
UBS entities
 
and most
 
of the
 
Credit Suisse entities.
 
In 2019, the
 
Court of Appeals
 
reversed the dismissal
 
of the
 
BMIS
Trustee’s remaining claims. The case has been
 
remanded to the Bankruptcy Court
 
for further proceedings.
3. Foreign exchange, LIBOR and benchmark rates,
 
and other trading practices
Foreign-exchange-related regulatory matters:
 
Beginning in 2013, numerous authorities commenced investigations
concerning possible
 
manipulation of
 
foreign
 
exchange markets
 
and
 
precious
 
metals prices.
 
As
 
a
 
result
 
of these
investigations, UBS entered into resolutions with Swiss, US and
 
UK regulators and the European Commission. UBS
was granted conditional immunity
 
by the Antitrust Division
 
of the DOJ
 
and by authorities
 
in other jurisdictions
 
in
connection with potential competition law violations relating to foreign exchange and precious metals businesses.
In December
 
2021, the
 
European Commission
 
issued a
 
decision imposing
 
a fine
 
of EUR 83.3m
 
on Credit
 
Suisse
entities based on findings of anticompetitive practices in the foreign exchange market. Credit Suisse has appealed
the decision to the European General Court.
 
UBS received leniency and accordingly no fine was assessed.
Foreign-exchange-related civil litigation:
Putative class actions have been filed since 2013 in US federal courts and
in
 
other jurisdictions
 
against UBS,
 
Credit
 
Suisse and
 
other banks
 
on
 
behalf of
 
persons who
 
engaged in
 
foreign
currency transactions with any of the defendant banks.
 
UBS and Credit Suisse have resolved US federal court class
actions relating to foreign currency transactions with the defendant banks and persons who
 
transacted in foreign
exchange futures
 
contracts and
 
options on
 
such futures.
 
Certain class
 
members have
 
excluded themselves
 
from
that settlement
 
and filed
 
individual actions in
 
US and
 
English courts against
 
UBS, Credit
 
Suisse and
 
other banks,
alleging violations of US and European competition laws and unjust enrichment. UBS, Credit Suisse and the other
banks
 
have
 
resolved
 
those individual
 
matters.
 
In
 
addition,
 
Credit
 
Suisse
 
and
 
UBS,
 
together
 
with
 
other
 
financial
institutions, were named in
 
a consolidated putative
 
class action in
 
Israel, which made
 
allegations similar to those
made in
 
the actions
 
pursued in
 
other jurisdictions.
 
Credit Suisse
 
and UBS
 
entered into
 
agreements to
 
settle all
 
claims
in this action in April 2022 and February 2024, respectively. Credit Suisse’s settlement received
 
court approval and
will be deemed
 
final in May
 
2025 if the
 
petitioners do
 
not further appeal.
 
UBS’s settlement
 
remains subject
 
to court
approval.
 
LIBOR and other benchmark-related regulatory
 
matters:
 
Numerous government agencies conducted investigations
regarding potential improper attempts by UBS, among others, to manipulate LIBOR and other benchmark rates at
certain
 
times.
 
UBS
 
and
 
Credit
 
Suisse
 
reached
 
settlements
 
or
 
otherwise
 
concluded
 
investigations
 
relating
 
to
benchmark interest
 
rates with
 
the investigating
 
authorities. UBS
 
was granted
 
conditional leniency
 
or conditional
immunity
 
from
 
authorities
 
in
 
certain
 
jurisdictions,
 
including
 
the
 
Antitrust
 
Division
 
of
 
the
 
DOJ
 
and
 
the
 
Swiss
Competition Commission (WEKO), in
 
connection with potential
 
antitrust or competition
 
law violations related
 
to
certain rates.
 
However, UBS
 
has not
 
reached a
 
final settlement
 
with WEKO,
 
as the
 
Secretariat of
 
WEKO has
 
asserted
that UBS does not qualify for full immunity.
LIBOR and
 
other benchmark-related
 
civil litigation:
 
A number
 
of putative
 
class actions
 
and other
 
actions are
 
pending
in the federal
 
courts in New
 
York against UBS
 
and numerous other banks
 
on behalf of
 
parties who transacted in
certain interest rate benchmark-based derivatives. Also
 
pending in the US
 
and in other jurisdictions are
 
a number
of other
 
actions asserting losses
 
related to
 
various products whose
 
interest rates were
 
linked to
 
LIBOR and other
benchmarks, including
 
adjustable rate
 
mortgages, preferred
 
and debt securities,
 
bonds pledged
 
as collateral, loans,
depository
 
accounts,
 
investments
 
and
 
other
 
interest-bearing
 
instruments.
 
The
 
complaints
 
allege
 
manipulation,
through various
 
means, of
 
certain benchmark
 
interest rates,
 
including USD LIBOR,
 
Yen LIBOR,
 
EURIBOR, CHF LIBOR,
and GBP LIBOR and seek unspecified compensatory
 
and other damages under various legal
 
theories.
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
79
Note 14
 
Provisions and contingent liabilities
 
(continued)
USD LIBOR class and individual actions in the
 
US:
Beginning in 2013, putative class actions
 
were filed in US federal
district courts
 
(and subsequently
 
consolidated in
 
the US
 
District Court
 
for the Southern
 
District of New
 
York (SDNY))
by plaintiffs who
 
engaged in over-the-counter
 
instruments, exchange-traded
 
Eurodollar futures and
 
options, bonds
or
 
loans
 
that
 
referenced
 
USD LIBOR.
 
The
 
complaints
 
allege
 
violations
 
of
 
antitrust
 
law
 
and
 
the
 
Commodities
Exchange Act,
 
as well
 
breach of
 
contract and unjust
 
enrichment. Following various
 
rulings by
 
the SDNY
 
and the
Second Circuit
 
dismissing certain
 
of the
 
causes of
 
action and
 
allowing others
 
to proceed,
 
one
 
class action
 
with
respect
 
to
 
transactions
 
in
 
over-the-counter
 
instruments
 
and
 
several
 
actions
 
brought
 
by
 
individual
 
plaintiffs
 
are
proceeding in the district court.
 
UBS and Credit Suisse
 
have entered into settlement agreements in
 
respect of the
class actions relating
 
to exchange-traded
 
instruments, bonds
 
and loans. These
 
settlements have
 
received final court
approval and
 
the actions
 
have been
 
dismissed as
 
to UBS
 
and Credit
 
Suisse. In
 
addition, an
 
individual action
 
was
filed in
 
federal court
 
in California
 
against UBS,
 
Credit Suisse
 
and numerous
 
other banks
 
alleging that
 
the defendants
conspired to fix the interest rate used as the basis for loans to consumers by jointly
 
setting the USD ICE LIBOR rate
and
 
monopolized
 
the
 
market
 
for
 
LIBOR-based
 
consumer loans
 
and
 
credit
 
cards. The
 
court
 
dismissed
 
the
 
initial
complaint and
 
subsequently
 
dismissed an
 
amended complaint
 
with prejudice;
 
the US
 
Court of
 
Appeals for
 
the Ninth
Circuit affirmed the dismissal. In
 
April 2025, plaintiffs filed
 
a petition for a
 
writ of certiorari with
 
the US Supreme
Court challenging the decisions of the lower
 
courts.
Other benchmark
 
class actions
 
in the
 
US:
The Yen
 
LIBOR/Euroyen TIBOR,
 
EURIBOR and
 
GBP LIBOR
 
actions have
been dismissed. Plaintiffs have appealed the
 
dismissals.
In January 2023, defendants
 
moved to dismiss the
 
complaint in the CHF
 
LIBOR action. In 2023,
 
the court approved
a settlement by Credit Suisse of the claims
 
against it in this matter.
Government bonds:
 
In 2021,
 
the European
 
Commission issued
 
a decision
 
finding that
 
UBS and
 
six other
 
banks
breached European
 
Union antitrust
 
rules between
 
2007 and
 
2011 relating
 
to European
 
government bonds. The
European Commission fined UBS EUR 172m,
 
which amount was confirmed on appeal
 
on 26 March 2025.
Credit default
 
swap auction
 
litigation –
In June
 
2021, Credit
 
Suisse, along
 
with other
 
banks and
 
entities, was
 
named
in a
 
putative class action
 
filed in
 
federal court in
 
New Mexico alleging
 
manipulation of credit default
 
swap (CDS)
final auction prices.
 
Defendants filed a
 
motion to enforce
 
a previous CDS
 
class action settlement
 
in the
 
SDNY. In
January 2024,
 
the SDNY
 
ruled that,
 
to the
 
extent claims
 
in the
 
New
 
Mexico action
 
arise from
 
conduct prior
 
to
30 June 2014, those claims are barred by
 
the SDNY settlement. The plaintiffs have
 
appealed the SDNY decision.
With respect
 
to additional
 
matters and
 
jurisdictions not
 
encompassed by
 
the settlements
 
and orders
 
referred to
above, UBS’s
 
balance sheet
 
at 31
 
March 2025
 
reflected a
 
provision in
 
an amount
 
that UBS
 
believes to
 
be appropriate
under the
 
applicable accounting
 
standard. As
 
in the
 
case of
 
other matters
 
for which
 
we have
 
established provisions,
the future outflow of resources in respect of such matters
 
cannot be determined with certainty based on currently
available information
 
and accordingly
 
may ultimately
 
prove to
 
be substantially
 
greater (or
 
may be
 
less) than
 
the
provision that we have recognized.
4. Mortgage-related matters
Government and
 
regulatory
 
related matters
:
DOJ RMBS
 
settlement
 
– In January
 
2017, Credit Suisse
 
Securities (USA)
LLC (CSS
 
LLC) and
 
its current
 
and former
 
US subsidiaries
 
and US
 
affiliates reached
 
a settlement
 
with the
 
DOJ related
to its
 
legacy
 
Residential Mortgage-Backed
 
Securities (RMBS)
 
business, a
 
business conducted
 
through
 
2007. The
settlement resolved
 
potential civil claims
 
by the
 
DOJ related
 
to certain of
 
those Credit
 
Suisse entities’ packaging,
marketing,
 
structuring,
 
arrangement,
 
underwriting,
 
issuance
 
and
 
sale
 
of
 
RMBS.
 
Pursuant
 
to
 
the
 
terms
 
of
 
the
settlement a civil monetary penalty was
 
paid to the DOJ in
 
January 2017. The settlement also required
 
the Credit
Suisse entities
 
to provide
 
certain levels
 
of consumer
 
relief measures,
 
including affordable
 
housing payments and
loan forgiveness, and the DOJ
 
and Credit Suisse agreed to the appointment
 
of an independent monitor to
 
oversee
the
 
completion of
 
the
 
consumer
 
relief
 
requirements
 
of
 
the
 
settlement. UBS
 
continues
 
to
 
evaluate its
 
approach
toward
 
satisfying
 
the
 
remaining
 
consumer
 
relief
 
obligations.
 
The
 
aggregate
 
amount
 
of
 
the
 
consumer
 
relief
obligation
 
increased
 
after
 
2021
 
by
 
5%
 
per
 
annum
 
of
 
the
 
outstanding
 
amount
 
due
 
until
 
these
 
obligations
 
are
settled. The monitor publishes reports periodically on
 
these consumer relief matters.
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
80
Note 14
 
Provisions and contingent liabilities
 
(continued)
Civil litigation:
 
Repurchase litigations
 
– Credit
 
Suisse affiliates
 
are defendants
 
in various
 
civil litigation
 
matters related
to their roles as issuer, sponsor, depositor, underwriter and/or servicer of RMBS transactions. These cases currently
include
 
repurchase
 
actions
 
by
 
RMBS
 
trusts
 
and/or
 
trustees,
 
in
 
which
 
plaintiffs
 
generally
 
allege
 
breached
representations and
 
warranties
 
in
 
respect of
 
mortgage loans
 
and
 
failure
 
to
 
repurchase such
 
mortgage loans
 
as
required
 
under
 
the
 
applicable
 
agreements. The
 
amounts disclosed
 
below
 
do
 
not
 
reflect
 
actual
 
realized
 
plaintiff
losses to
 
date. Unless
 
otherwise stated,
 
these amounts
 
reflect
 
the original
 
unpaid principal
 
balance amounts
 
as
alleged in these actions.
DLJ Mortgage Capital, Inc. (DLJ) is a defendant
 
in New York State court in five actions:
 
An action brought by Asset
Backed
 
Securities
 
Corporation
 
Home
 
Equity
 
Loan
 
Trust,
 
Series
 
2006-HE7
 
alleges
 
damages
 
of
 
not
 
less
 
than
USD 374m.
 
In
 
December 2023,
 
the
 
court granted
 
in
 
part
 
DLJ’s
 
motion
 
to
 
dismiss, dismissing
 
with
 
prejudice all
notice-based
 
claims;
 
the
 
parties
 
have
 
appealed.
 
An
 
action
 
by
 
Home
 
Equity
 
Asset
 
Trust,
 
Series
 
2006-8,
 
alleges
damages of not
 
less than
 
USD 436m. An action
 
by Home
 
Equity Asset Trust
 
2007-1 alleges damages
 
of not
 
less
than USD 420m.
 
Following a
 
non-jury trial,
 
the court
 
issued a
 
decision in
 
December 2024
 
that the
 
plaintiff had
established breaches
 
of representations
 
and warranties
 
relating to 209
 
of the 783
 
loans at issue.
 
The court
 
deferred
decision as to
 
damages, which will
 
either be agreed
 
upon by the
 
parties or briefed
 
for further decision
 
by the court.
An action
 
by Home
 
Equity Asset Trust
 
2007-2 alleges damages
 
of not
 
less than
 
USD 495m. An
 
action by
 
CSMC
Asset-Backed Trust 2007-NC1 does not allege
 
a damages amount.
5. ATA litigation
Since November 2014, a
 
series of lawsuits have
 
been filed against a
 
number of banks, including
 
Credit Suisse, in
the US District Court
 
for the Eastern District of
 
New York
 
(EDNY) and the SDNY
 
alleging claims under the
 
United
States Anti-Terrorism
 
Act (ATA)
 
and the Justice
 
Against Sponsors of Terrorism
 
Act. The plaintiffs
 
in each of
 
these
lawsuits are, or are relatives of, victims of various terrorist
 
attacks in Iraq and allege a conspiracy
 
and/or aiding and
abetting based on allegations that various
 
international financial institutions, including the defendants, agreed to
alter,
 
falsify or omit
 
information from payment
 
messages that involved
 
Iranian parties for
 
the express
 
purpose of
concealing the
 
Iranian parties’ financial
 
activities and transactions
 
from detection
 
by US
 
authorities. The lawsuits
allege that
 
this conduct
 
has made
 
it possible
 
for Iran
 
to transfer
 
funds to
 
Hezbollah and
 
other terrorist
 
organizations
actively engaged
 
in harming
 
US military
 
personnel and
 
civilians. In
 
January 2023,
 
the Second
 
Circuit
 
affirmed
 
a
September 2019
 
ruling by
 
the EDNY
 
granting defendants’
 
motion to
 
dismiss the
 
first filed
 
lawsuit. In
 
October 2023,
the US Supreme Court denied plaintiffs’ petition for a writ
 
of certiorari. In February 2024, plaintiffs filed a motion
to vacate the judgment in the first filed lawsuit. Of
 
the other seven cases, four are stayed, including one that was
dismissed as
 
to Credit
 
Suisse and
 
most of
 
the bank
 
defendants prior
 
to entry
 
of the
 
stay, and in three
 
cases plaintiffs
have filed amended complaints.
6. Customer account matters
Several
 
clients
 
have
 
claimed
 
that
 
a
 
former
 
relationship
 
manager
 
in
 
Switzerland
 
had
 
exceeded
 
his
 
investment
authority
 
in
 
the
 
management of
 
their
 
portfolios, resulting
 
in
 
excessive
 
concentrations of
 
certain
 
exposures and
investment losses. Credit
 
Suisse AG has
 
investigated the claims,
 
as well as
 
transactions among the
 
clients. Credit
Suisse AG filed a criminal complaint against the former relationship manager with
 
the Geneva Prosecutor’s Office
upon which the
 
prosecutor initiated
 
a criminal investigation.
 
Several clients of
 
the former relationship
 
manager also
filed criminal complaints with the
 
Geneva Prosecutor’s Office. In February 2018,
 
the former relationship manager
was sentenced to five years
 
in prison by the Geneva criminal
 
court for fraud, forgery
 
and criminal mismanagement
and ordered
 
to pay
 
damages of
 
approximately USD 130m. On
 
appeal, the Criminal
 
Court of
 
Appeals of
 
Geneva
and, subsequently, the Swiss Federal Supreme
 
Court upheld the main findings of the
 
Geneva criminal court.
Civil lawsuits have
 
been initiated against Credit
 
Suisse AG and
 
/ or certain
 
affiliates in various jurisdictions,
 
based
on the findings established in the criminal
 
proceedings against the former relationship
 
manager.
In Singapore,
 
in a
 
civil lawsuit
 
against Credit
 
Suisse Trust
 
Limited, the
 
Singapore International Commercial
 
Court
issued a judgment
 
finding for
 
the plaintiffs and,
 
in September 2023,
 
the court awarded
 
damages of USD 742.73m,
excluding post-judgment
 
interest. This
 
figure does
 
not exclude
 
potential overlap
 
with the
 
Bermuda proceedings
against Credit Suisse Life (Bermuda) Ltd., described below, and the court ordered the parties to ensure there is no
double recovery
 
in relation
 
to this
 
award and
 
the Bermuda
 
proceedings. On
 
appeal from
 
this judgment,
 
in
 
July
2024, the court ordered changes
 
to the damages calculation and directed
 
the parties to agree
 
on adjustments to
the award. The court ordered
 
a revised award of USD 461m,
 
including interest and costs,
 
in October 2024 and the
Singapore proceeding has concluded.
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
81
Note 14
 
Provisions and contingent liabilities
 
(continued)
In Bermuda, in the civil
 
lawsuit brought against Credit Suisse Life
 
(Bermuda) Ltd., the Supreme Court of Bermuda
issued a judgment awarding damages of USD 607.35m to the plaintiff. Credit Suisse Life (Bermuda)
 
Ltd. appealed
the
 
decision.
 
In
 
June
 
2023,
 
the
 
Bermuda
 
Court
 
of
 
Appeal
 
confirmed
 
the
 
award
 
and
 
the
 
Supreme
 
Court
 
of
Bermuda’s
 
finding
 
that
 
Credit
 
Suisse
 
Life
 
(Bermuda)
 
Ltd.
 
breached
 
its
 
contractual
 
and
 
fiduciary
 
duties,
 
but
overturned the finding that Credit Suisse Life (Bermuda) Ltd. made fraudulent misrepresentations. In March 2024,
the Bermuda Court of Appeal granted Credit
 
Suisse Life (Bermuda) Ltd.’s motion for
 
leave to appeal the judgment
to the
 
Judicial Committee
 
of the
 
Privy
 
Council and
 
the notice
 
of such
 
appeal was
 
filed.
 
The
 
Bermuda Court
 
of
Appeal also ordered that the current stay continue pending determination of the
 
appeal on the condition that the
damages awarded, plus interest calculated at
 
the Bermuda statutory rate of 3.5%,
 
remain in the escrow account.
In
 
Switzerland,
 
civil
 
lawsuits
 
have
 
been
 
commenced
 
against
 
Credit
 
Suisse AG
 
in
 
the
 
Court
 
of
 
First
 
Instance
 
of
Geneva, with statements of claim served in March
 
2023 and March 2024.
7. Mozambique matter
Credit
 
Suisse
 
was
 
subject to
 
investigations by
 
regulatory
 
and
 
enforcement
 
authorities, as
 
well as
 
civil
 
litigation,
regarding certain Credit
 
Suisse entities’
 
arrangement of
 
loan financing
 
to Mozambique
 
state enterprises,
 
Proindicus
S.A. and Empresa Moçambicana de Atum
 
S.A. (EMATUM), a
 
distribution to private investors of loan
 
participation
notes (LPN) related
 
to the EMATUM
 
financing in September
 
2013, and certain
 
Credit Suisse
 
entities’ subsequent
role in arranging the exchange
 
of those LPNs for
 
Eurobonds issued by the
 
Republic of Mozambique.
 
In 2019, three
former Credit Suisse employees pleaded guilty in the EDNY to accepting improper personal benefits in connection
with financing transactions carried out with
 
two Mozambique state enterprises.
In
 
October 2021,
 
Credit
 
Suisse reached
 
settlements with
 
the DOJ,
 
the US
 
Securities and
 
Exchange Commission
(SEC), the
 
UK Financial
 
Conduct Authority
 
(FCA) and
 
FINMA to
 
resolve inquiries
 
by these
 
agencies, including
 
findings
that Credit
 
Suisse failed
 
to appropriately
 
organize and
 
conduct its
 
business with
 
due skill
 
and care,
 
and manage
risks. Credit
 
Suisse Group
 
AG entered
 
into a
 
three-year Deferred
 
Prosecution Agreement
 
(DPA) with
 
the DOJ
 
in
connection with the criminal information
 
charging Credit Suisse Group AG
 
with conspiracy to commit wire
 
fraud
and Credit
 
Suisse Securities
 
(Europe) Limited
 
(CSSEL) entered
 
into a
 
Plea Agreement
 
and pleaded
 
guilty to
 
one count
of conspiracy to
 
violate the US
 
federal wire fraud
 
statute. Under the
 
terms of the
 
DPA, UBS Group
 
AG (as successor
to Credit Suisse Group
 
AG) continued compliance enhancement and remediation efforts agreed
 
by Credit Suisse,
and undertake additional measures as
 
outlined in the DPA.
 
In January 2025, as
 
permitted under the terms of
 
the
DPA, the DOJ elected to extend the term of
 
the DPA by one year.
8. ETN-related litigation
XIV litigation:
Since March 2018, three class action complaints
 
were filed in the SDNY on behalf
 
of a putative class
of purchasers
 
of VelocityShares
 
Daily Inverse
 
VIX Short-Term
 
Exchange Traded
 
Notes linked
 
to the
 
S&P 500
 
VIX
Short-Term
 
Futures
 
Index
 
(XIV
 
ETNs).
 
The
 
complaints have
 
been
 
consolidated and
 
asserts
 
claims
 
against
 
Credit
Suisse
 
for
 
violations
 
of
 
various
 
anti-fraud
 
and
 
anti-manipulation provisions
 
of
 
US
 
securities
 
laws
 
arising
 
from
 
a
decline in the value of XIV ETNs in February 2018. On appeal from an order of the SDNY dismissing all claims, the
Second Circuit
 
issued an
 
order that
 
reinstated a
 
portion of
 
the claims.
 
In decisions
 
in March
 
2023 and
 
February
2025,
 
the
 
court
 
granted
 
class
 
certification
 
for
 
two
 
of
 
the
 
three
 
classes
 
proposed
 
by
 
plaintiffs
 
and
 
denied class
certification of the third proposed class.
9. Bulgarian former clients matter
In December 2020, the Swiss Office
 
of the Attorney General brought charges against Credit
 
Suisse AG and other
parties concerning the diligence and controls applied to a historical relationship with Bulgarian former
 
clients who
are
 
alleged to
 
have laundered
 
funds through
 
Credit Suisse
 
AG accounts.
 
In
 
June 2022,
 
following a
 
trial, Credit
Suisse AG was convicted in the Swiss Federal Criminal Court of certain historical organizational
 
inadequacies in its
anti-money-laundering framework
 
and ordered to pay
 
a fine of CHF 2m. In
 
addition, the court seized
 
certain client
assets in the amount of approximately CHF 12m
 
and ordered Credit Suisse AG to pay a
 
compensatory claim in the
amount of approximately
 
CHF 19m. Credit Suisse
 
AG appealed the decision
 
to the Swiss Federal
 
Court of Appeals.
Following the
 
merger of
 
UBS AG
 
and Credit
 
Suisse AG,
 
UBS AG
 
confirmed the
 
appeal. In
 
November 2024,
 
the
court issued a judgment that
 
acquitted UBS AG and annulled
 
the fine and compensatory claim
 
ordered by the first
instance court.
 
In February
 
2025, the
 
court affirmed
 
the acquittal
 
of UBS
 
AG, and
 
the Office
 
of the
 
Attorney General
has appealed
 
the judgment
 
to the
 
Swiss Federal
 
Supreme Court.
 
UBS has
 
also appealed
 
limited to
 
the issue
 
whether
a successor entity by merger can be criminally
 
liable for acts of the predecessor entity.
 
 
 
 
UBS Group first
 
quarter 2025
 
report |
Consolidated
 
financial statements
 
| Notes to the
 
UBS Group AG
 
interim consolidated
 
financial
 
statements (unaudited)
 
82
Note 14
 
Provisions and contingent liabilities
 
(continued)
10. Archegos
Credit
 
Suisse
 
and
 
UBS
 
have
 
received
 
requests
 
for
 
documents
 
and
 
information
 
in
 
connection
 
with
 
inquiries,
investigations
 
and/or
 
actions
 
relating
 
to
 
their
 
relationships
 
with
 
Archegos
 
Capital
 
Management
 
(Archegos),
including from FINMA
 
(assisted by a
 
third party appointed
 
by FINMA), the
 
DOJ, the SEC,
 
the US Federal
 
Reserve,
the
 
US
 
Commodity
 
Futures
 
Trading
 
Commission
 
(CFTC),
 
the
 
US
 
Senate
 
Banking
 
Committee,
 
the
 
Prudential
Regulation Authority (PRA),
 
the FCA,
 
the WEKO,
 
the Hong
 
Kong Competition Commission
 
and other
 
regulatory
and governmental agencies. UBS is cooperating with the authorities in these matters. In July 2023, CSI and CSSEL
entered into a settlement agreement
 
with the PRA providing for
 
the resolution of the PRA’s
 
investigation. Also in
July 2023, FINMA
 
issued a decree
 
ordering remedial measures
 
and the Federal
 
Reserve Board issued
 
an Order
 
to
Cease and Desist. Under the terms of the order,
 
Credit Suisse paid a civil money penalty and agreed to undertake
certain remedial
 
measures relating
 
to counterparty
 
credit risk
 
management, liquidity
 
risk management
 
and non-
financial risk management, as well as enhancements to board oversight and governance. UBS Group, as
 
the legal
successor to Credit Suisse Group AG,
 
is a party to the FINMA
 
decree and Federal Reserve Board
 
Cease and Desist
Order.
 
Civil
 
actions
 
relating
 
to
 
Credit
 
Suisse’s
 
relationship with
 
Archegos
 
have
 
been
 
filed
 
against
 
Credit
 
Suisse
 
and/or
certain officers and directors, including claims
 
for breaches of fiduciary duties.
11. Credit Suisse financial disclosures
Credit Suisse
 
Group AG
 
and certain
 
directors, officers and
 
executives have
 
been named
 
in securities
 
class action
complaints pending in the SDNY and New Jersey federal court. These complaints, filed on behalf
 
of purchasers of
Credit Suisse shares, additional
 
tier 1 capital notes, and other securities in 2023 and 2024, allege that defendants
made
 
misleading
 
statements
 
regarding:
 
(i) customer
 
outflows
 
in
 
late
 
2022;
 
(ii) the
 
adequacy
 
of
 
Credit
 
Suisse’s
financial
 
reporting
 
controls;
 
and
 
(iii) the
 
adequacy
 
of
 
Credit
 
Suisse’s
 
risk
 
management
 
processes,
 
and
 
include
allegations
 
relating
 
to
 
Credit
 
Suisse
 
Group AG’s
 
merger
 
with
 
UBS
 
Group AG.
 
Many
 
of
 
the
 
actions
 
have
 
been
consolidated, and
 
a motion
 
to dismiss
 
was granted
 
in part
 
and denied
 
in part
 
in September
 
2024. For
 
one additional
action, filed in October 2023, a motion to dismiss
 
remains pending.
Credit Suisse has received requests for documents and information from regulatory and governmental agencies in
connection with inquiries,
 
investigations and/or actions
 
relating to
 
these matters, as
 
well as
 
for other statements
regarding Credit Suisse’s financial condition,
 
including from the SEC, the DOJ
 
and FINMA. UBS is cooperating with
the authorities in these matters.
12. Merger-related litigation
Certain Credit
 
Suisse Group AG
 
affiliates and certain
 
directors, officers
 
and executives have
 
been named in
 
class
action complaints pending in
 
the SDNY.
 
One complaint, brought
 
on behalf of
 
Credit Suisse shareholders,
 
alleges
breaches of fiduciary duty under Swiss law and
 
civil RICO claims under US federal law. In February 2024, the
 
court
granted
 
defendants’
 
motions
 
to
 
dismiss
 
the
 
civil
 
RICO
 
claims
 
and
 
conditionally
 
dismissed
 
the
 
Swiss
 
law
 
claims
pending defendants’ acceptance of
 
jurisdiction in Switzerland. In
 
March 2024, having
 
received consents to
 
Swiss
jurisdiction from all defendants served with the complaint, the
 
court dismissed the Swiss law claims against those
defendants. Additional
 
complaints, brought
 
on behalf
 
of holders
 
of Credit
 
Suisse additional
 
tier 1 capital
 
notes (AT1
noteholders) allege breaches of
 
fiduciary duty under Swiss
 
law, arising
 
from a series
 
of scandals and
 
misconduct,
which
 
led
 
to
 
Credit
 
Suisse
 
Group
 
AG’s
 
merger
 
with
 
UBS
 
Group
 
AG,
 
causing
 
losses
 
to
 
shareholders
 
and
 
AT1
noteholders. Motions to dismiss these complaints were granted in March 2024 and
 
September 2024 on the basis
that Switzerland
 
is the
 
most appropriate
 
forum for
 
litigation. Plaintiffs
 
in two
 
of these
 
cases have
 
appealed the
dismissal.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Appendix
 
83
Appendix
Alternative performance measures
An alternative performance measure (an APM) is a financial measure of historical or
 
future financial performance,
financial position
 
or cash
 
flows other
 
than a
 
financial measure
 
defined or
 
specified in
 
the applicable
 
recognized
accounting standards or in
 
other applicable regulations. A
 
number of APMs
 
are reported in
 
the discussion of
 
the
financial and operating performance of
 
the external reports (annual, quarterly
 
and other reports). APMs
 
are used
to provide
 
a more
 
complete
 
picture of
 
operating
 
performance and
 
to reflect
 
management’s
 
view of
 
the fundamental
drivers
 
of
 
the
 
business
 
results. A
 
definition
 
of
 
each
 
APM,
 
the
 
method
 
used
 
to
 
calculate
 
it
 
and
 
the
 
information
content are presented in alphabetical order
 
in the table below. These APMs may
 
qualify as non-GAAP measures as
defined by US Securities and Exchange Commission
 
(SEC) regulations.
APM label
Calculation
 
Information content
Cost / income ratio (%)
Calculated as operating expenses divided by
 
total
revenues.
This measure provides information about the
efficiency of the business by comparing operating
expenses with total revenues.
Cost of credit risk (bps)
Calculated as total credit loss expense / (release)
(annualized for reporting periods shorter than
12 months) divided by the average balance
 
of lending
assets for the reporting period, expressed in basis
points. Lending assets include the gross amounts
 
of
Amounts due from banks and Loans and advances
 
to
customers.
This measure provides information about the total
credit loss expense / (release) incurred in relation to
the average balance of gross lending assets for the
period.
Credit-impaired lending assets as a
percentage of total lending assets,
gross (%)
Calculated as credit-impaired lending assets divided
by total lending assets. Lending assets includes
 
the
gross amounts of Amounts due from banks and
Loans and advances to customers. Credit-impaired
lending assets refers to the sum of stage 3 and
purchased credit-impaired positions.
This measure provides information about the
proportion of credit-impaired lending assets in the
overall portfolio of gross lending assets.
Fee-generating assets (USD)
– Global Wealth Management
Calculated as the sum of discretionary and
nondiscretionary wealth management portfolios
(mandate volume) and assets where generated
revenues are predominantly of a recurring nature, i.e.
mainly investment, mutual, hedge and private-market
funds where we have a distribution agreement,
including client commitments into closed-ended
private-market funds from the date that recurring
fees are charged. Assets related to our Global
Financial Intermediaries business are excluded, as
 
are
assets of sanctioned clients.
This measure provides information about the volume
of invested assets that create a revenue stream,
whether as a result of the nature of the contractual
relationship with clients or through the fee structure
of the asset. An increase in the level of fee-generating
assets results in an increase in the associated revenue
stream. Assets of sanctioned clients are excluded from
fee-generating assets.
Gross margin on invested assets (bps)
– Asset Management
Calculated as total revenues (annualized for reporting
periods shorter than 12 months) divided by
 
average
invested assets.
This measure provides information about the total
revenues of the business in relation to invested assets.
Impaired loan portfolio as a percentage
of total loan portfolio, gross (%)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as impaired loan portfolio divided by
 
total
gross loan portfolio.
This measure provides information about the
proportion of impaired loan portfolio in the total gross
loan portfolio.
Integration-related expenses (USD)
Generally include costs of internal staff
 
and
contractors substantially dedicated to integration
activities, retention awards, redundancy costs,
incremental expenses from the shortening of useful
lives of property, equipment and software, and
impairment charges relating to these assets.
Classification as integration-related expenses does
 
not
affect the timing of recognition and measurement of
those expenses or the presentation thereof in the
income statement. Integration-related expenses
incurred by Credit Suisse also included expenses
associated with restructuring programs that existed
prior to the acquisition.
This measure provides information about expenses
that are temporary, incremental and directly related to
the integration of Credit Suisse into UBS.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Appendix
 
84
APM label
Calculation
 
Information content
Invested assets (USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management
Calculated as the sum of managed fund
 
assets,
managed institutional assets, discretionary and
advisory wealth management portfolios, fiduciary
deposits, time deposits, savings accounts,
 
and wealth
management securities or brokerage accounts.
This measure provides information about the volume
of client assets managed by or deposited with
 
UBS for
investment purposes.
Net interest margin (bps)
– Personal & Corporate Banking
Calculated as net interest income (annualized for
reporting periods shorter than 12 months) divided by
average loans.
This measure provides information about the
profitability of the business by calculating the
difference between the price charged for lending and
the cost of funding, relative to loan value.
Net new assets (USD)
– Global Wealth Management
Calculated as the net amount of inflows and
 
outflows
of invested assets (as defined in UBS policy) recorded
during a specific period, plus interest and dividends.
Excluded from the calculation are movements due to
market performance, foreign exchange translation,
fees, and the effects on invested assets of strategic
decisions by UBS to exit markets or services.
 
This measure provides information about the
development of invested assets during a
 
specific
period as a result of net new asset flows, plus the
effect of interest and dividends.
 
Net new assets growth rate (%)
– Global Wealth Management
Calculated as the net amount of inflows and
 
outflows
of invested assets (as defined in UBS policy) recorded
during a specific period (annualized for reporting
periods shorter than 12 months), plus
 
interest and
dividends, divided by total invested assets
 
at the
beginning of the period.
This measure provides information about the growth
of invested assets during a specific period
 
as a result
of net new asset flows.
 
Net new deposits (USD)
– Global Wealth Management
Calculated as the net amount of inflows and
 
outflows
of deposits recorded during a specific period. Deposits
include customer deposits and customer brokerage
payables. Excluded from the calculation are
movements due to fair value measurement, foreign
exchange translation, dividends, interest and fees,
 
as
well as the effects on customer deposits of strategic
decisions by UBS to exit markets or services.
This measure provides information about the
development of deposits during a specific period
 
as a
result of net new deposit flows.
Net new fee-generating assets (USD)
– Global Wealth Management
Calculated as the net amount of fee-generating
 
asset
inflows and outflows, including dividend
 
and interest
inflows into mandates and outflows from mandate
fees paid by clients during a specific period.
 
Excluded
from the calculation are the effects on fee-generating
assets of strategic decisions by UBS to exit
 
markets or
services.
 
This measure provides information about the
development of fee-generating assets during
 
a
specific period as a result of net flows, excluding
movements due to market performance and
 
foreign
exchange translation, as well as the effects on fee-
generating assets of strategic decisions by UBS
 
to exit
markets or services.
 
Net new loans (USD)
– Global Wealth Management
Calculated as the net amount of originations,
drawdowns and repayments of loans recorded during
a specific period. Loans include loans and
 
advances to
customers and customer brokerage receivables.
Excluded from the calculation are allowances,
movements due to fair value measurement, foreign
exchange translation, interest and fees, as well
 
as the
effects on loans and advances to customers of
strategic decisions by UBS to exit markets or
 
services.
This measure provides information about the
development of loans during a specific period
 
as a
result of net new loan flows.
Net new money (USD)
– Global Wealth Management,
Asset Management
Calculated as the net amount of inflows and
 
outflows
of invested assets (as defined in UBS policy) recorded
during a specific period. Excluded from the calculation
are movements due to market performance, foreign
exchange translation, dividends, interest and fees,
 
as
well as the effects on invested assets of strategic
decisions by UBS to exit markets
 
or services. Net new
money is not measured for Personal & Corporate
Banking.
This measure provides information about the
development of invested assets during a
 
specific
period as a result of net new money flows.
Net profit growth (%)
Calculated as the change in net profit attributable
 
to
shareholders from continuing operations between
current and comparison periods divided by net profit
attributable to shareholders from continuing
operations of the comparison period.
This measure provides information about profit
growth since the comparison period.
Operating expenses (underlying)
(USD)
Calculated by adjusting operating expenses
 
as
reported in accordance with IFRS Accounting
Standards for items that management believes
 
are
not representative of the underlying performance of
the businesses.
›
Refer to the “Group performance” section of this
report for more information
This measure provides information about the amount
of operating expenses, while excluding items
 
that
management believes are not representative of the
underlying performance of the businesses.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Appendix
 
85
APM label
Calculation
 
Information content
Operating profit / (loss) before tax
(underlying) (USD)
Calculated by adjusting operating profit / (loss) before
tax as reported in accordance with IFRS Accounting
Standards for items that management believes
 
are
not representative of the underlying performance of
the businesses.
›
Refer to the “Group performance” section of this
report for more information
This measure provides information about the amount
of operating profit / (loss) before tax, while excluding
items that management believes are not
representative of the underlying performance of the
businesses.
Pre-tax profit growth (%)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management,
the Investment Bank
Calculated as the change in net profit before tax
attributable to shareholders from continuing
operations between current and comparison periods
divided by net profit before tax attributable to
shareholders from continuing operations of the
comparison period.
This measure provides information about pre-tax
profit growth since the comparison period.
Pre-tax profit growth (underlying) (%)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management,
the Investment Bank
Calculated as the change in net profit before tax
attributable to shareholders from continuing
operations between current and comparison periods
divided by net profit before tax attributable to
shareholders from continuing operations of the
comparison period. Net profit before tax attributable
to shareholders from continuing operations excludes
items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about pre-tax
profit growth since the comparison period, while
excluding items that management believes
 
are not
representative of the underlying performance of the
businesses.
Recurring net fee income
(USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as the total of fees for services provided
 
on
an ongoing basis, such as portfolio management
 
fees,
asset-based investment fund fees and custody
 
fees,
which are generated on client assets, and
administrative fees for accounts.
This measure provides information about the amount
of recurring net fee income.
Return on attributed equity (%)
Calculated as business division operating profit before
tax (annualized for reporting periods shorter than
12 months) divided by average attributed
 
equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity.
Return on common equity tier 1
capital (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average common equity
 
tier 1
capital.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital.
Return on equity (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable
 
to
shareholders.
This measure provides information about the
profitability of the business in relation to equity.
Return on leverage ratio denominator,
gross (%)
Calculated as total revenues (annualized for reporting
periods shorter than 12 months) divided by
 
average
leverage ratio denominator.
This measure provides information about the revenues
of the business in relation to the leverage ratio
denominator.
Return on tangible equity (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable
 
to
shareholders less average goodwill and intangible
assets.
This measure provides information about the
profitability of the business in relation to tangible
equity.
Tangible book value per share
(USD)
Calculated as equity attributable to shareholders less
goodwill and intangible assets divided by the
 
number
of shares outstanding.
This measure provides information about tangible net
assets on a per-share basis.
Total book value per share
(USD)
Calculated as equity attributable to shareholders
divided by the number of shares outstanding.
This measure provides information about net assets
on a per-share basis.
Total revenues (underlying)
(USD)
Calculated by adjusting total revenues as reported in
accordance with IFRS Accounting Standards for items
that management believes are not representative of
the underlying performance of the businesses.
›
Refer to the “Group performance” section of this
report for more information
This measure provides information about the amount
of total revenues, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Transaction-based income
(USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as the total of the non-recurring portion
 
of
net fee and commission income, mainly composed
 
of
brokerage and transaction-based investment fund
fees, and credit card fees, as well as fees for payment
and foreign-exchange transactions, together with
other net income from financial instruments
measured at fair value through profit or loss.
This measure provides information about the amount
of the non-recurring portion of net fee and
commission income, together with other net
 
income
from financial instruments measured at fair value
through profit or loss.
Underlying cost / income ratio (%)
Calculated as underlying operating expenses
 
(as
defined above) divided by underlying total
 
revenues
(as defined above).
 
This measure provides information about the
efficiency of the business by comparing operating
expenses with total revenues, while excluding items
that management believes are not representative of
the underlying performance of the businesses.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2025 report |
Appendix
 
86
APM label
Calculation
 
Information content
Underlying net profit growth (%)
Calculated as the change in net profit attributable
 
to
shareholders from continuing operations between
current and comparison periods divided by net profit
attributable to shareholders from continuing
operations of the comparison period.
 
Net profit
attributable to shareholders from continuing
operations excludes items that management
 
believes
are not representative of the underlying performance
of the businesses and also excludes related tax
impact.
This measure provides information about profit
growth since the comparison period, while excluding
items that management believes are not
representative of the underlying performance of the
businesses.
Underlying return on attributed equity
(%)
 
Calculated as underlying business division
 
operating
profit before tax (annualized for reporting periods
shorter than 12 months) (as defined above)
 
divided by
average attributed equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Underlying return on common equity
tier 1 capital (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average common equity
 
tier 1
capital. Net profit attributable to shareholders
excludes items that management believes
 
are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Underlying return on tangible equity
(%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable
 
to
shareholders less average goodwill and intangible
assets. Net profit attributable to shareholders excludes
items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about the
profitability of the business in relation to tangible
equity, while excluding items that management
believes are not representative of the underlying
performance of the businesses.
This is
 
a general list
 
of the APMs
 
used in our
 
financial reporting. Not
 
all of
 
the APMs listed
 
above may appear
 
in
this particular report.
Information related to underlying return on common equity tier 1 capital (RoCET1) and underlying return on tangible
equity (%)
As of or for the quarter ended
USD m, except where indicated
31.3.25
31.12.24
31.3.24
1
Underlying operating profit / (loss) before tax
 
2,586
 
1,768
 
2,617
Underlying tax expense / (benefit)
2
 
587
 
456
 
677
Net profit / (loss) attributable to non-controlling interests
 
10
 
9
 
9
Underlying net profit / (loss) attributable to shareholders
2
 
1,989
 
1,303
 
1,932
Underlying net profit / (loss) attributable to shareholders
3
 
7,955
 
5,211
 
7,727
Tangible equity
 
 
80,276
 
78,192
 
77,393
Average tangible equity
 
 
79,234
 
79,084
 
77,751
CET1 capital
 
 
69,152
 
71,367
 
77,663
Average CET1 capital
 
 
70,260
 
72,790
 
77,833
Underlying return on tangible equity (%)
2
 
10.0
 
6.6
 
9.9
Underlying return on common equity tier 1 capital (%)
2
 
11.3
 
7.2
 
9.9
1 Comparative-period information has been revised. Refer to “Note 2 Accounting for the acquisition
 
of the Credit Suisse Group” in the “Consolidated financial statements” section of
 
the UBS Group Annual Report
2024, available under “Annual reporting” at ubs.com/investors,
 
for more information about the relevant adjustments.
 
2 In the second quarter of 2024, comparative-period information for the first quarter of 2024
has been restated to reflect the updated underlying tax impact.
 
3 Annualized for reporting periods shorter than 12 months.
 
 
 
UBS Group first quarter 2025 report |
Appendix
 
87
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
 
 
 
UBS Group first quarter 2025 report |
Appendix
 
88
Abbreviations frequently used in our financial reports (continued)
K
KRT
 
Key Risk Taker
L
LAS
 
liquidity-adjusted stress
LCR
 
liquidity coverage ratio
LGD
 
loss given default
LIBOR
 
London Interbank Offered
Rate
LLC
 
limited liability company
LoD
 
lines of defense
LRD
 
leverage ratio denominator
LTIP
 
Long-Term
 
Incentive Plan
LTV
 
loan-to-value
M
M&A
 
mergers and acquisitions
MRT
 
Material Risk Taker
N
NII
 
net interest income
NSFR
 
net stable funding ratio
NYSE
 
New York Stock Exchange
O
OCA
 
own credit adjustment
OCI
 
other comprehensive
income
OECD
 
Organisation for Economic
Co-operation and
Development
OTC
 
over-the-counter
P
PCI
 
purchased credit impaired
PD
 
probability of default
PIT
 
point in time
PPA
 
purchase price allocation
Q
QCCP
 
qualifying central
counterparty
R
RBC
 
risk-based capital
RbM
 
risk-based monitoring
REIT
 
real estate investment trust
RMBS
 
residential mortgage-
backed securities
RniV
 
risks not in VaR
RoCET1
 
return on CET1 capital
RoU
 
right-of-use
rTSR
 
relative total shareholder
return
RWA
 
risk-weighted assets
S
SA
 
standardized approach or
société anonyme
SA-CCR
 
standardized approach for
counterparty credit risk
SAR
 
Special Administrative
Region of the People’s
Republic of China
SDG
 
Sustainable Development
Goal
SEC
 
US Securities and Exchange
Commission
SFT
 
securities financing
transaction
SIBOR
 
Singapore Interbank
Offered Rate
SICR
 
significant increase in credit
risk
SIX
 
SIX Swiss Exchange
SME
 
small and medium-sized
entities
SMF
 
Senior Management
Function
SNB
 
Swiss National Bank
SOR
 
Singapore Swap Offer Rate
SPPI
 
solely payments of principal
and interest
SRB
 
systemically relevant bank
SVaR
 
stressed value-at-risk
T
TBTF
 
too big to fail
TCFD
 
Task
 
Force on Climate-
related Financial Disclosures
TIBOR
 
Tokyo
 
Interbank Offered
Rate
TLAC
 
total loss-absorbing capacity
TTC
 
through the cycle
U
USD
 
US dollar
V
VaR
 
value-at-risk
VAT
value added tax
This is a
 
general list
 
of the
 
abbreviations frequently
 
used in
 
our financial
 
reporting. Not
 
all of the
 
listed abbreviations
may appear in this particular report.
 
 
UBS Group first quarter 2025 report |
Appendix
 
89
Information sources
 
Reporting publications
Annual publications
UBS
 
Group
 
Annual
 
Report
:
 
Published
 
in
 
English,
 
this
 
report
 
provides
 
descriptions
 
of:
 
the
 
Group
 
strategy
 
and
performance; the
 
strategy and
 
performance of
 
the business divisions
 
and Group functions;
 
risk, treasury
 
and capital
management; corporate
 
governance;
 
the compensation
 
framework, including
 
information about
 
compensation for
the Board of Directors and the Group Executive Board members; and financial information, including the financial
statements.
 
“Auszug aus
 
dem Geschäftsbericht
”: This publication
 
provides a German
 
translation of
 
selected sections
 
of the UBS
Group Annual Report.
 
Compensation
 
Report
:
 
This
 
report
 
discusses
 
the
 
compensation
 
framework
 
and
 
provides
 
information
 
about
compensation for
 
the Board
 
of Directors
 
and the
 
Group Executive
 
Board members.
 
It is
 
available in
 
English and
German (
“Vergütungsbericht
”) and represents a component of the UBS
 
Group Annual Report.
Sustainability Report
: Published
 
in English,
 
the Sustainability Report
 
provides disclosures on
 
environmental, social
and governance topics related to the UBS Group.
 
It also provides certain disclosures related to diversity,
 
equity and
inclusion.
Quarterly publications
 
Quarterly financial report
: This report provides an
 
update on performance and strategy (where
 
applicable) for the
respective quarter. It is available in English.
The annual
 
and quarterly
 
publications
 
are available
 
in .pdf and
 
online formats
 
at
ubs.com/investors
, under
 
“Financial
information”.
 
Printed copies, in any language, of the aforementioned
 
annual publications are no longer provided.
 
Other information
Website
The “Investor
 
Relations” website
 
at
ubs.com/investors
 
provides the
 
following information
 
about UBS:
 
results-related
news
 
releases;
 
financial
 
information,
 
including
 
results-related
 
filings
 
with
 
the
 
US
 
Securities
 
and
 
Exchange
Commission
 
(the
 
SEC);
 
information
 
for
 
shareholders,
 
including
 
UBS
 
dividend
 
and
 
share
 
repurchase
 
program
information, and for bondholders, including rating agencies reports; the corporate calendar; and presentations by
management for investors and financial analysts. Information is available online in English, with some information
also available in German.
Results presentations
Quarterly
 
results
 
presentations
 
are
 
webcast
 
live.
 
Recordings
 
of
 
most
 
presentations
 
can
 
be
 
downloaded
 
from
ubs.com/presentations
.
Messaging service
Email
 
alerts
 
to
 
news
 
about
 
UBS
 
can
 
be
 
subscribed
 
for
 
under
 
“UBS
 
News
 
Alert”
 
at
ubs.com/global/en/investor-
relations/contact/investor-services.html
. Messages are sent in English, German, French or Italian, with an option to
select theme preferences for such alerts.
Form 20-F and other submissions to the US
 
Securities and Exchange Commission
UBS files periodic
 
reports with
 
and submits
 
other information
 
to the
 
SEC. Principal
 
among these
 
filings is the
 
annual
report on Form 20-F,
 
filed pursuant to
 
the US Securities
 
Exchange Act of 1934.
 
The filing of
 
Form 20-F is structured
as a wraparound document. Most sections of the filing can be
 
satisfied by referring to the UBS Group AG Annual
Report. However, there is
 
a small amount
 
of additional information in
 
Form 20-F that is
 
not presented elsewhere
and is particularly targeted at readers in the US. Readers are encouraged to refer to this additional disclosure. Any
document that is filed with
 
the SEC is available on the
 
SEC’s website:
sec.gov
. Refer to
ubs.com/investors
 
for more
information.
 
 
 
UBS Group first quarter 2025 report |
Appendix
 
90
Cautionary statement
 
regarding forward-looking statements
 
|
 
This report contains
 
statements that
 
constitute “forward-looking
 
statements”, including
 
but
not limited to management’s
 
outlook for UBS’s financial performance,
 
statements relating to the
 
anticipated effect of transactions
 
and strategic initiatives on
UBS’s
 
business and
 
future
 
development and
 
goals
 
or
 
intentions to
 
achieve climate,
 
sustainability and
 
other social
 
objectives. While
 
these
 
forward-looking
statements represent
 
UBS’s judgments,
 
expectations and
 
objectives concerning the
 
matters described,
 
a number
 
of risks,
 
uncertainties and
 
other important
factors could cause actual
 
developments and results to
 
differ materially from UBS’s expectations.
 
In particular, the global economy may suffer
 
significant adverse
effects from increasing political tensions between world
 
powers, changes to international
 
trade policies, including those related to
 
tariffs and trade barriers, and
ongoing conflicts
 
in the Middle
 
East, as well
 
as the continuing
 
Russia–Ukraine war. UBS’s
 
acquisition of the
 
Credit Suisse
 
Group has materially
 
changed its
 
outlook
and strategic direction and introduced
 
new operational challenges. The integration of the
 
Credit Suisse entities into the
 
UBS structure is expected
 
to continue
through 2026 and presents significant
 
operational and execution risk, including the
 
risks that UBS may be
 
unable to achieve the cost
 
reductions and business
benefits contemplated by
 
the transaction, that
 
it may incur
 
higher costs to
 
execute the integration
 
of Credit Suisse
 
and that the
 
acquired business may
 
have
greater risks
 
or liabilities
 
than expected.
 
Following the
 
failure of
 
Credit Suisse,
 
Switzerland is
 
considering significant
 
changes to
 
its capital,
 
resolution and
 
regulatory
regime, which,
 
if proposed
 
and adopted,
 
may significantly
 
increase our
 
capital requirements
 
or impose
 
other costs
 
on UBS.
 
These factors
 
create greater
 
uncertainty
about forward-looking statements. Other factors that may affect UBS’s
 
performance and ability to achieve its plans, outlook and
 
other objectives also include,
but are not limited to: (i) the degree to which UBS
 
is successful in the execution of its
 
strategic plans, including its cost reduction
 
and efficiency initiatives and its
ability to manage its levels of risk-weighted assets (RWA) and leverage ratio denominator (LRD), liquidity coverage ratio and other financial resources, including
changes in
 
RWA assets
 
and liabilities
 
arising from
 
higher market
 
volatility and
 
the size
 
of the
 
combined Group;
 
(ii) the degree
 
to which
 
UBS is
 
successful in
implementing changes to
 
its businesses to
 
meet changing market,
 
regulatory and
 
other conditions; (iii) inflation
 
and interest
 
rate volatility
 
in major
 
markets;
(iv) developments in the macroeconomic climate
 
and in the markets in which UBS operates
 
or to which it is exposed, including
 
movements in securities prices or
liquidity, credit
 
spreads, currency exchange rates,
 
residential and commercial real
 
estate markets, general economic conditions, and
 
changes to national trade
policies on the financial position or creditworthiness of
 
UBS’s clients and counterparties, as well as on
 
client sentiment and levels of activity; (v) changes in the
availability of capital and funding, including any adverse changes in UBS’s credit spreads and credit ratings of UBS, as well as availability and cost of funding to
meet requirements for debt
 
eligible for total loss-absorbing capacity
 
(TLAC); (vi) changes in central bank
 
policies or the implementation of
 
financial legislation
and regulation in Switzerland, the US, the UK, the EU and other
 
financial centers that have imposed, or resulted in, or may do so in the
 
future, more stringent
or entity-specific
 
capital, TLAC,
 
leverage ratio,
 
net stable
 
funding ratio,
 
liquidity and
 
funding requirements,
 
heightened operational
 
resilience requirements,
incremental tax requirements, additional levies, limitations on
 
permitted activities, constraints on remuneration, constraints on transfers of capital
 
and liquidity
and sharing of operational costs across
 
the Group or other measures,
 
and the effect these
 
will or would have
 
on UBS’s business activities; (vii) UBS’s ability
 
to
successfully implement resolvability
 
and related regulatory requirements and
 
the potential need to
 
make further changes to
 
the legal structure or booking
 
model
of UBS in
 
response to legal
 
and regulatory requirements
 
and any additional
 
requirements due to
 
its acquisition
 
of the Credit
 
Suisse Group, or
 
other developments;
(viii) UBS’s ability to
 
maintain and improve
 
its systems and
 
controls for complying
 
with sanctions in
 
a timely manner
 
and for
 
the detection and
 
prevention of
money laundering to meet evolving regulatory
 
requirements and expectations, in particular in
 
the current geopolitical turmoil;
 
(ix) the uncertainty arising from
domestic stresses
 
in certain
 
major economies;
 
(x) changes in
 
UBS’s competitive
 
position, including
 
whether differences
 
in regulatory
 
capital and
 
other requirements
among the major financial centers adversely affect UBS’s
 
ability to compete in certain lines of business; (xi) changes
 
in the standards of conduct applicable to its
businesses that
 
may result
 
from new
 
regulations or
 
new enforcement
 
of existing
 
standards, including
 
measures to
 
impose new
 
and enhanced
 
duties when
interacting with customers and in
 
the execution and handling of
 
customer transactions; (xii) the liability
 
to which UBS may be exposed,
 
or possible constraints or
sanctions
 
that
 
regulatory
 
authorities
 
might
 
impose
 
on
 
UBS,
 
due
 
to
 
litigation,
 
contractual
 
claims
 
and
 
regulatory
 
investigations, including
 
the
 
potential
 
for
disqualification from
 
certain businesses,
 
potentially large
 
fines or
 
monetary penalties,
 
or the
 
loss of
 
licenses or
 
privileges as
 
a
 
result of
 
regulatory or
 
other
governmental sanctions, as well
 
as the effect that litigation, regulatory and
 
similar matters have on the
 
operational risk component of its
 
RWA; (xiii) UBS’s ability
to retain and attract the
 
employees necessary to generate revenues and to manage,
 
support and control its businesses, which may
 
be affected by competitive
factors; (xiv) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of
goodwill, the
 
recognition of deferred
 
tax assets and
 
other matters; (xv) UBS’s
 
ability to
 
implement new technologies
 
and business methods,
 
including digital
services, artificial intelligence and other technologies, and ability to successfully compete with both existing and new financial service providers, some of which
may not be regulated to the same extent; (xvi) limitations on the effectiveness of UBS’s internal processes for risk management, risk control, measurement and
modeling, and
 
of
 
financial models
 
generally; (xvii) the
 
occurrence of
 
operational failures,
 
such as
 
fraud, misconduct,
 
unauthorized trading,
 
financial crime,
cyberattacks, data leakage and systems failures, the risk of which is increased with persistently high levels of cyberattack threats;
 
(xviii) restrictions on the ability
of UBS Group AG, UBS AG and regulated
 
subsidiaries of UBS AG to make
 
payments or distributions, including
 
due to restrictions on the ability
 
of its subsidiaries
to make loans or distributions, directly or indirectly, or, in the case of financial difficulties, due to the exercise by FINMA or the regulators of UBS’s operations in
other countries of their broad statutory powers in relation to protective measures, restructuring and liquidation proceedings;
 
(xix) the degree to which changes
in regulation, capital or
 
legal structure, financial results
 
or other factors may
 
affect UBS’s ability
 
to maintain its stated
 
capital return objective; (xx) uncertainty
over the scope of actions that may be required by UBS, governments and others for UBS to achieve goals relating to climate, environmental and social matters,
as well as the
 
evolving nature of
 
underlying science
 
and industry and
 
the possibility of
 
conflict between
 
different governmental standards
 
and regulatory regimes;
(xxi) the ability
 
of UBS to
 
access capital markets;
 
(xxii) the ability
 
of UBS to
 
successfully recover from
 
a disaster or
 
other business continuity problem
 
due to a
hurricane, flood, earthquake, terrorist attack, war,
 
conflict, pandemic, security breach, cyberattack, power loss, telecommunications failure
 
or other natural or
man-made event; and (xxiii) the effect that these or other factors or unanticipated
 
events, including media reports and speculations, may have on its reputation
and the additional consequences
 
that this may have on
 
its business and performance.
 
The sequence in which the factors
 
above are presented is not indicative
 
of
their likelihood of occurrence
 
or the potential magnitude
 
of their consequences. UBS’s
 
business and financial performance could
 
be affected by
 
other factors
identified in its past and future filings and reports, including those filed with the US
 
Securities and Exchange Commission (the SEC). More detailed information
about those factors is set forth in
 
documents furnished by
 
UBS and filings made by UBS
 
with the SEC, including the
 
UBS Group AG and UBS AG Annual
 
Reports
on Form 20-F for the year ended 31 December 2024. UBS is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-
looking statements, whether as a result of new information,
 
future events, or otherwise.
Rounding |
 
Numbers presented throughout this report may not add up
 
precisely to the totals provided in the tables and text.
 
Percentages and percent changes
disclosed in text and tables are
 
calculated on the basis of unrounded
 
figures. Absolute changes between reporting periods disclosed in
 
the text, which can be
derived from numbers presented in related tables, are calculated on
 
a rounded basis.
Tables |
 
Within tables, blank fields generally indicate non-applicability or that presentation of any content would not be meaningful, or that information is not
available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis.
 
Values
that are zero on a rounded basis can be either negative
 
or positive on an actual basis.
Websites |
 
In this report, any
 
website addresses are provided
 
solely for information
 
and are not intended
 
to be active links.
 
UBS is not incorporating
 
the contents
of any such websites into this report.
edgarq25ubsgroupagp94i0
UBS Group AG
PO Box
CH-8098 Zurich
ubs.com
This
 
Form
 
6-K
 
is
 
hereby
 
incorporated
 
by
 
reference
 
into
 
(1)
 
each
 
of
 
the
 
registration
 
statements
 
on
 
Form
 
F-3
(Registration Number
 
333-283672), and
 
on Form
 
S-8 (Registration
 
Numbers 333-200634;
 
333-200635; 333-200641;
333-200665;
 
333-215254;
 
333-215255;
 
333-228653;
 
333-230312;
 
333-249143
 
and
 
333-272975),
 
and
 
into
 
each
prospectus outstanding
 
under any
 
of the
 
foregoing registration
 
statements, (2)
 
any outstanding
 
offering circular
 
or
similar document issued
 
or authorized by
 
UBS AG that
 
incorporates by reference any
 
Forms 6-K of
 
UBS AG that
are incorporated into
 
its registration statements filed
 
with the SEC,
 
and (3) the
 
base prospectus of
 
Corporate Asset
Backed Corporation (“CABCO”)
 
dated June 23, 2004
 
(Registration Number 333-111572), the Form
 
8-K of CABCO
filed and
 
dated June
 
23, 2004
 
(SEC File
 
Number 001-13444),
 
and the
 
Prospectus Supplements
 
relating to
 
the CABCO
Series 2004-101 Trust dated May 10, 2004 and May 17, 2004 (Registration
 
Number 033-91744 and 033-91744-05).
 
 
 
 
 
 
 
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
 
registrants have duly caused this
report to be signed on their behalf by the undersigned, thereunto duly
 
authorized.
UBS Group AG
By:
 
/s/
 
Sergio Ermotti
 
___
Name:
 
Sergio Ermotti
Title:
 
Group Chief Executive Officer
 
By:
 
/s/ Todd Tuckner
 
_
Name:
 
Todd Tuckner
Title:
 
Group Chief Financial Officer
By:
 
/s/ Steffen Henrich
 
____________
Name:
 
Steffen Henrich
Title:
 
Group Controller
 
UBS AG
By:
 
/s/
 
Sergio Ermotti
 
_
Name:
 
Sergio Ermotti
Title:
 
President of the Executive Board
By:
 
/s/ Todd Tuckner
 
_
Name:
 
Todd Tuckner
Title:
 
Chief Financial Officer
By:
 
/s/ Steffen Henrich
 
_____________
Name:
 
Steffen Henrich
Title:
 
Controller
 
Date:
 
April 30, 2025