6-K 1 edgar1q25ubsag.htm edgar1q25ubsag
 
 
 
 
 
 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 6-K
REPORT OF FOREIGN PRIVATE
 
ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Date: May 8, 2025
UBS 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 registrant files 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 AG,
 
which appears immediately following this
page.
 
edgarq25ubsagp3i0
 
UBS AG
First quarter
 
2025 report
 
 
 
 
Corporate calendar UBS AG
Information about future publication dates is generally
 
available at
ubs.com/global/en/investor-relations/events/calendar.html
Contacts
General inquiries
ubs.com/contact
Zurich +41-44-234-1111
London +44-207-567-8000
New York +1-212-821-3000
Hong Kong SAR +852-2971-8888
Singapore +65-6495-8000
Investor Relations
UBS’s Investor Relations team
manages relationships with
institutional investors, research
analysts and credit rating agencies.
 
ubs.com/investors
Zurich +41-44-234-4100
New York +1-212-882-5734
Media Relations
UBS’s Media Relations team manages
relationships with global media and
journalists.
ubs.com/media
Zurich +41-44-234-8500
mediarelations@ubs.com
London +44-20-7567-4714
 
ubs-media-relations@ubs.com
New York +1-212-882-5858
 
mediarelations@ubs.com
Hong Kong SAR +852-2971-8200
sh-mediarelations-ap@ubs.com
Imprint
Publisher: UBS 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 AG
2.
Business divisions and
 
Group Items
3.
Risk, capital, liquidity and funding,
and balance sheet
4.
Consolidated
 
financial statements
Appendix
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report
 
2
Terms used in this report, unless the context requires otherwise
“UBS”, “UBS Group”, “UBS Group AG consolidated”, “Group”
UBS Group AG and its consolidated subsidiaries
“UBS AG” and “UBS AG consolidated”, “we”, “us” and “our”
 
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. A number of APMs are reported in UBS’s 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
 
under “Alternative performance
 
measures”
in the
 
appendix to
 
this report.
 
These APMs
 
may qualify
 
as non-GAAP
 
measures as
 
defined by
 
US Securities
 
and
Exchange Commission (SEC) regulations.
Comparability
Comparative information in this report is
 
presented as follows.
Profit and loss information and
 
other flow-based information for the first
 
quarter of 2025 and
 
the fourth quarter
of 2024 is
 
based entirely on consolidated
 
data following the merger
 
of UBS AG
 
and Credit Suisse
 
AG. Profit and
loss information and other flow-based information for the first quarter of 2024 includes pre-merger UBS AG data
only.
 
Balance
 
sheet
 
information
 
as
 
at
 
31 March
 
2025
 
and
 
31 December
 
2024
 
includes
 
post-merger
 
consolidated
information. Balance sheet dates prior to 30 June
 
2024 reflect pre-merger UBS AG information
 
only.
 
Comparison between UBS AG consolidated
 
and UBS Group AG consolidated
A
 
comparison
 
of
 
selected
 
financial
 
and
 
capital
 
information
 
of
 
UBS
 
AG
 
consolidated
 
and
 
of
 
UBS
 
Group
 
AG
consolidated is provided after the Notes to the UBS AG
 
interim consolidated financial statements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report
 
3
UBS AG consolidated key figures
UBS AG consolidated key figures
As of or for the quarter ended
 
USD m, except where indicated
31.3.25
31.12.24
31.3.24
Results
Total revenues
 
12,163
 
11,317
 
9,108
Credit loss expense / (release)
 
124
 
241
 
52
Operating expenses
 
10,701
 
11,017
 
7,677
Operating profit / (loss) before tax
 
1,339
 
59
 
1,379
Net profit / (loss) attributable to shareholders
 
1,028
 
(257)
 
1,006
Profitability and growth
1
Return on equity (%)
 
4.3
 
(1.1)
 
7.3
Return on tangible equity (%)
 
4.6
 
(1.2)
 
8.2
Return on common equity tier 1 capital (%)
 
5.7
 
(1.3)
 
9.1
Return on leverage ratio denominator, gross (%)
 
3.1
 
2.9
 
3.3
Cost / income ratio (%)
 
88.0
 
97.3
 
84.3
Net profit growth (%)
 
2.2
n.m.
 
0.2
Resources
Total assets
 
1,547,489
 
1,568,060
 
1,116,806
Equity attributable to shareholders
 
96,553
 
94,003
 
55,046
Common equity tier 1 capital
2
 
70,756
 
73,792
 
43,863
Risk-weighted assets
2
 
481,539
 
495,110
 
328,732
Common equity tier 1 capital ratio (%)
2
 
14.7
 
14.9
 
13.3
Going concern capital ratio (%)
2
 
18.5
 
18.1
 
17.7
Total loss-absorbing capacity ratio (%)
2
 
38.0
 
36.7
 
34.3
Leverage ratio denominator
2
 
1,565,845
 
1,523,277
 
1,078,591
Common equity tier 1 leverage ratio (%)
2
 
4.5
 
4.8
 
4.1
Liquidity coverage ratio (%)
3
 
180.3
 
186.1
 
191.4
Net stable funding ratio (%)
 
122.8
 
124.1
 
121.6
Other
Invested assets (USD bn)
1,4
 
6,153
 
6,087
 
4,672
Personnel (full-time equivalents)
 
67,373
 
68,982
 
47,635
1 Refer to “Alternative performance measures” in
 
the appendix to this
 
report for the definition
 
and calculation method.
 
2 Based on the Swiss systemically
 
relevant bank framework. Refer to
 
the “Capital management”
section of this
 
report for more
 
information.
 
3 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.
 
4 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 AG Annual Report 2024, available under “Annual
 
reporting” at ubs.com/investors, for more information.
 
UBS AG first quarter 2025 report |
UBS AG | Recent developments
 
4
UBS AG
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 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 loss
 
of USD 11m
 
upon the completion
 
of
the transaction.
 
The completion
 
of the
 
transaction also
 
reduced UBS AG’s
 
RWA by
 
around USD 1.3bn
 
and UBS AG’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.
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.
 
 
UBS AG first quarter 2025 report |
UBS AG | Recent developments
 
5
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
a
 
similar impact
 
on UBS AG
 
consolidated as
 
on UBS Group,
 
with an
 
USD 8.6bn reduction
 
in UBS AG’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 UBS AG.
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.
 
Other developments
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 AG first quarter 2025 report |
UBS AG | Recent developments
 
6
Resolution of legacy Credit Suisse cross-border
 
matter
On 5 May 2025,
 
Credit Suisse Services AG
 
entered into an agreement with
 
the U.S. Department
 
of Justice to settle
a long-running tax-related
 
investigation into
 
Credit Suisse's implementation
 
of its 2014
 
plea agreement, relating to
its legacy cross-border business
 
with US taxpayers
 
booked in Switzerland,
 
which began before UBS
 
acquired Credit
Suisse. Credit Suisse Services AG
 
pleaded guilty to one count of
 
conspiracy to aid and assist in
 
the preparation of
false
 
income
 
tax
 
returns
 
and
 
will
 
pay
 
an
 
aggregate
 
of
 
USD 371.9m.
 
Credit
 
Suisse
 
Services AG
 
also
contemporaneously
 
entered
 
into
 
a
 
non-prosecution
 
agreement
 
regarding
 
US
 
taxpayers
 
booked
 
in
 
the
 
legacy
Credit Suisse Singapore booking
 
center and will
 
pay an
 
aggregate of USD
 
138.7m. UBS
 
AG has not
 
made any
 
post-
balance sheet adjustment as the expected
 
impact is not material.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
UBS AG | UBS AG consolidated performance
 
7
UBS AG consolidated 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
 
1,328
 
1,590
 
806
 
(17)
 
65
Other net income from financial instruments measured
 
at fair value through profit or loss
 
3,924
 
3,150
 
2,945
 
25
 
33
Net fee and commission income
 
6,630
 
6,354
 
5,148
 
4
 
29
Other income
 
281
 
223
 
209
 
26
 
35
Total revenues
 
12,163
 
11,317
 
9,108
 
7
 
34
Credit loss expense / (release)
 
124
 
241
 
52
 
(49)
 
140
Personnel expenses
 
5,910
 
5,212
 
4,161
 
13
 
42
General and administrative expenses
 
4,077
 
4,964
 
2,985
 
(18)
 
37
Depreciation, amortization and impairment of non-financial
 
assets
 
714
 
840
 
531
 
(15)
 
34
Operating expenses
 
10,701
 
11,017
 
7,677
 
(3)
 
39
Operating profit / (loss) before tax
 
1,339
 
59
 
1,379
 
(3)
Tax expense / (benefit)
 
 
303
 
313
 
366
 
(3)
 
(17)
Net profit / (loss)
 
1,035
 
(254)
 
1,014
 
2
Net profit / (loss) attributable to non-controlling interests
 
7
 
2
 
8
 
218
 
(10)
Net profit / (loss) attributable to shareholders
 
1,028
 
(257)
 
1,006
 
2
Comprehensive income
Total comprehensive income
 
2,657
 
(2,975)
 
(169)
Total comprehensive income attributable to non-controlling interests
 
22
 
(35)
 
(4)
Total comprehensive income attributable to shareholders
 
2,635
 
(2,940)
 
(166)
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
 
355
 
456
 
228
Personal & Corporate Banking
 
166
 
183
 
84
Asset Management
 
73
 
96
 
35
Investment Bank
 
116
 
175
 
114
Non-core and Legacy
 
191
 
316
 
61
Group Items
 
(2)
 
6
 
1
Total integration-related expenses
 
900
 
1,232
 
523
of which: total revenues
 
(3)
 
6
 
0
of which: operating expenses
 
903
 
1,226
 
523
of which: personnel expenses
 
386
 
421
 
117
of which: general and administrative expenses
 
460
 
664
 
345
of which: depreciation, amortization and impairment of non-financial
 
assets
 
57
 
141
 
61
1Q25 compared with 1Q24
The legal merger
 
of UBS AG
 
and Credit Suisse
 
AG on 31 May
 
2024 has had
 
a significant impact
 
on the results
 
from
June 2024 onward.
 
This discussion and
 
analysis of results compares
 
the first quarter of
 
2025, which covers three
full months of post-merger results, with the first quarter of
 
2024, which included only pre-merger results. This is a
material driver in many of the increases across
 
both revenues and operating expenses.
›
Refer to “Note 2 Accounting for the merger of UBS AG and Credit Suisse AG” in the “Consolidated financial
statements” section of the UBS AG Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
,
for more information about the accounting for the merger of UBS AG and Credit Suisse AG
 
UBS AG first quarter 2025 report |
UBS AG | UBS AG consolidated performance
 
8
Results: 1Q25 vs 1Q24
Operating
 
profit
 
before
 
tax
 
decreased
 
by
 
USD 40m,
 
or
 
3%,
 
to
 
USD 1,339m,
 
reflecting
 
increases
 
in
 
operating
expenses
 
and
 
net
 
credit
 
loss
 
expenses,
 
partly
 
offset
 
by
 
higher
 
total
 
revenues.
 
Operating
 
expenses
 
increased
 
by
USD 3,024m,
 
or
 
39%,
 
to
 
USD 10,701m,
 
largely
 
due
 
to
 
increases
 
of
 
USD 1,749m
 
in
 
personnel
 
expenses
 
and
USD 1,092m in general and
 
administrative expenses.
 
Depreciation, amortization and impairment
 
of non-financial
assets was
 
USD 183m higher.
 
Net credit
 
loss expenses
 
were USD 124m,
 
compared with
 
USD 52m
 
in the
 
first quarter
of 2024.
 
Total revenues increased by
 
USD 3,055m,
 
or 34%,
 
to USD 12,163m,
 
largely due
 
to a
 
USD 1,501m
 
increase
in combined net interest income and other
 
net income from financial instruments measured at fair
 
value through
profit or loss and
 
also due to a USD 1,482m increase
 
in net fee and
 
commission income. Other income increased
by USD 72m.
 
Integration-related expenses
 
in general
 
and administrative
 
expenses primarily
 
included shared
 
services costs
 
charged
from other companies
 
in the UBS
 
Group reporting
 
scope, consulting
 
fees and outsourcing
 
costs. Integration-related
personnel
 
expenses were
 
mainly
 
due
 
to
 
salaries
 
and variable
 
compensation related
 
to
 
the
 
integration
 
of Credit
Suisse. In addition,
 
there was accelerated depreciation of properties
 
and leasehold improvements in depreciation,
amortization and impairment of non-financial
 
assets.
 
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 increased by
 
USD 1,501m to USD 5,252m,
 
mainly driven by
 
increases in Global Wealth Management,
Personal & Corporate Banking and the Investment
 
Bank.
 
Global Wealth Management revenues increased by
 
USD 516m
 
to USD 2,074m, mainly driven by the consolidation
of Credit
 
Suisse AG net
 
interest income.
 
The
 
remaining variance
 
was due
 
to a
 
decrease in
 
net interest
 
income,
largely driven by a
 
decrease in deposit revenues due to
 
lower margins and a decrease
 
in loan revenues, reflecting
lower margins and average volumes.
Personal & Corporate Banking revenues increased by USD 343m to
 
USD 1,247m, largely due to the consolidation
of Credit Suisse AG net interest income.
Investment
 
Bank
 
revenues increased
 
by
 
USD 499m
 
to
 
USD 2,056m,
 
mainly
 
due
 
to
 
an
 
increase
 
in
 
Derivatives
 
&
Solutions revenues, mainly reflecting higher revenues
 
in 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
Prime Brokerage, supported by higher client
 
balances.
Non-core and
 
Legacy
 
revenues
 
increased by
 
USD 99m to
 
USD 117m, mainly
 
due to
 
the consolidation
 
of Credit
Suisse AG revenues.
 
Total revenues
 
reflected net
 
gains from
 
position exits,
 
along with
 
net interest
 
income from
securitized products and credit products.
Revenues in Group Items were negative USD 237m compared with negative USD 275m. Revenues 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 “Note 4 Net interest income” in the “Consolidated financial statements” section of this report for more
information about net interest income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
UBS AG | UBS AG consolidated performance
 
9
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
 
(266)
 
(292)
 
188
 
(9)
Net interest income from financial instruments measured
 
at fair value through profit or loss and other
 
1,594
 
1,882
 
618
 
(15)
 
158
Other net income from financial instruments measured
 
at fair value through profit or loss
 
3,924
 
3,150
 
2,945
 
25
 
33
Total
 
5,252
 
4,741
 
3,751
 
11
 
40
Global Wealth Management
 
2,074
 
2,085
 
1,558
 
(1)
 
33
of which: net interest income
 
1,589
 
1,717
 
1,204
 
(7)
 
32
of which: transaction-based income from foreign exchange and other
 
intermediary activity
1
 
485
 
368
 
354
 
32
 
37
Personal & Corporate Banking
 
 
1,247
 
1,378
 
904
 
(10)
 
38
of which: net interest income
 
 
1,059
 
1,168
 
772
 
(9)
 
37
of which: transaction-based income from foreign exchange and other
 
intermediary activity
1
 
188
 
211
 
132
 
(11)
 
42
Asset Management
 
(5)
 
(4)
 
(12)
 
47
 
(55)
Investment Bank
 
2,056
 
1,552
 
1,557
 
32
 
32
Non-core and Legacy
 
117
 
(171)
 
18
 
533
Group Items
 
(237)
 
(99)
 
(275)
 
139
 
(14)
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 1,482m to USD 6,630m, mainly driven by
 
the consolidation of
Credit Suisse AG revenues.
Fees from portfolio management increased by USD 646m
 
to USD 3,102m, and investment fund fees increased by
USD 342m to
 
USD 1,543m, predominantly in
 
Global Wealth
 
Management and
 
Asset Management,
 
respectively.
The increase
 
in Global
 
Wealth Management
 
was mainly
 
due to
 
the consolidation
 
of Credit
 
Suisse AG
 
revenues,
positive market performance and net new fee-generating asset inflows. For Asset
 
Management, the increase was
mainly from the consolidation of Credit Suisse
 
AG revenues.
Net brokerage fees
 
increased by USD 324m
 
to USD 1,280m, largely
 
as a result
 
of the consolidation
 
of Credit Suisse
AG revenues. The remaining variance was
 
mainly due to higher levels
 
of client activity across all
 
regions in Global
Wealth Management and driven by higher volumes
 
in Cash Equities in Execution Services in the
 
Investment Bank.
›
Refer to “Note 5 Net fee and commission income” in the “Consolidated financial statements” section of this report
for more information
Other income
Other
 
income
 
was
 
USD 281m
 
and
 
included
 
the
 
consolidation
 
of
 
Credit
 
Suisse AG
 
income,
 
compared
 
with
USD 209m in the first quarter of 2024. The increase was largely due to share of net profits of
 
associates and joint
ventures being
 
USD 121m higher,
 
primarily in
 
Personal &
 
Corporate Banking,
 
mainly reflecting
 
a USD 64m
 
gain
related to the Swisscard transactions.
›
Refer to the “Recent developments” section and “Personal & Corporate Banking” in the “Business divisions and
Group Items” section of this report for more information about the Swisscard transactions
›
Refer to “Note 6 Other income” in the “Consolidated financial statements” section of this report for more
information
Credit loss expense / release: 1Q25 vs
 
1Q24
Total net
 
credit loss
 
expenses
 
in the
 
first quarter
 
of 2025
 
were USD 124m,
 
reflecting net
 
releases of
 
USD 21m related
to performing positions
 
and net expenses
 
of USD 145m on
 
credit-impaired positions.
 
Net credit loss expenses
 
were
USD 52m in the first quarter of 2024.
›
Refer to “Note 9 Expected credit loss measurement” in the “Consolidated financial statements” section of this
report for more information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
UBS AG | UBS AG consolidated performance
 
10
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Total
For the quarter ended 31.3.25
Global Wealth Management
 
(7)
 
15
 
8
Personal & Corporate Banking
 
(8)
 
66
 
58
Asset Management
 
0
 
0
 
0
Investment Bank
 
(5)
 
54
 
49
Non-core and Legacy
 
0
 
10
 
10
Group Items
 
(1)
 
0
 
(1)
Total
 
(21)
 
145
 
124
For the quarter ended 31.12.24
Global Wealth Management
 
(26)
 
15
 
(11)
Personal & Corporate Banking
 
(24)
 
213
 
189
Asset Management
 
0
 
0
 
0
Investment Bank
 
32
 
30
 
62
Non-core and Legacy
 
(2)
 
4
 
2
Group Items
 
(1)
 
1
 
0
Total
 
(21)
 
262
 
241
For the quarter ended 31.3.24
Global Wealth Management
 
2
 
7
 
9
Personal & Corporate Banking
 
(12)
 
22
 
10
Asset Management
 
0
 
0
 
0
Investment Bank
 
10
 
22
 
32
Non-core and Legacy
 
0
 
0
 
0
Group Items
 
1
 
0
 
1
Total
 
1
 
51
 
52
 
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
 
 
5,910
 
5,212
 
4,161
 
13
 
42
of which: salaries and variable compensation
 
5,129
 
4,473
 
3,621
 
15
 
42
of which: variable compensation – financial advisors
1
 
1,409
 
1,400
 
1,267
 
1
 
11
General and administrative expenses
 
 
4,077
 
4,964
 
2,985
 
(18)
 
37
of which: net expenses for litigation, regulatory and similar
 
matters
 
196
 
393
 
8
 
(50)
Depreciation, amortization and impairment of non-financial
 
assets
 
714
 
840
 
531
 
(15)
 
34
Total operating expenses
 
10,701
 
11,017
 
7,677
 
(3)
 
39
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 1,749m
 
to
 
USD 5,910m,
 
mainly
 
driven
 
by
 
the
 
consolidation
 
of
Credit Suisse AG expenses,
 
reflecting the combined
 
workforce resulting from
 
the merger, as well
 
as higher
 
accruals
for
 
performance
 
awards
 
and
 
a
 
USD 142m
 
increase
 
in
 
financial
 
advisor
 
compensation
 
resulting
 
from
 
higher
compensable revenues.
 
›
Refer to “Note 7 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
 
1,092m to USD 4,077m,
 
mainly driven by the
 
consolidation
of Credit Suisse AG expenses, including an increase of USD 298m in shared services costs for Technology,
 
Finance
and
 
Risk
 
charged
 
by
 
other subsidiaries
 
of
 
UBS
 
Group
 
AG.
 
General and
 
administrative expenses
 
also
 
included
 
a
USD 180m expense related to
 
the Swisscard transactions
 
in Personal &
 
Corporate Banking, as well
 
as USD 188m
higher
 
expenses
 
for
 
litigation,
 
regulatory
 
and
 
similar
 
matters
 
and
 
increases
 
of
 
USD 92m
 
in
 
technology
 
costs,
USD 76m in outsourcing costs and USD 73m in real estate and logistics
 
costs.
›
Refer to the “Recent developments” section and “Personal & Corporate Banking” in the “Business divisions and
Group Items” section of this report for more information about the Swisscard transactions
›
Refer to “Note 8 General and administrative expenses” in the “Consolidated financial statements” section of this
report for more information
›
Refer to “Note 16 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 AG Annual Report 2024,
available under “Annual reporting” at
ubs.com/investors
, for more information about litigation, regulatory and
similar matters on a UBS AG consolidated basis
 
UBS AG first quarter 2025 report |
UBS AG | UBS AG consolidated performance
 
11
Depreciation, amortization and impairment of
 
non-financial assets
Depreciation, amortization and impairment
 
of non-financial assets
 
increased by USD 183m
 
to USD 714m, mainly
due to higher
 
amortization of
 
internally generated
 
capitalized software as
 
a result of a
 
higher cost base
 
of software
assets following the consolidation of Credit Suisse
 
AG.
 
Tax: 1Q25 vs 1Q24
UBS AG had a net income tax expense
 
of USD 303m in the first quarter
 
of 2025, representing an effective
 
tax rate
of 22.7%, compared with USD 366m in the
 
first quarter of 2024 and an effective
 
tax rate of 26.5%.
 
The current tax expense was USD 431m, which includes USD 300m 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
 
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 128m.
 
This
 
reflects
 
the
 
aforementioned
 
deferred
 
tax
 
benefit
 
of
USD 131m and also
 
benefits of USD 39m in
 
respect of the
 
tax deduction for
 
deferred compensation awards and
USD 31m
 
in
 
respect of
 
an increase
 
in
 
deferred
 
tax asset
 
recognition
 
for the
 
quarter in
 
respect of
 
UBS
 
AG’s
 
US
branch. These
 
benefits were
 
partly offset
 
by
 
a net
 
deferred tax
 
expense of
 
USD 73m that
 
mainly related
 
to the
amortization
 
of
 
DTAs
 
previously
 
recognized
 
in
 
relation
 
to
 
tax
 
losses
 
carried
 
forward
 
and
 
deductible
 
temporary
differences.
Total comprehensive income attributable
 
to shareholders
In the first quarter
 
of 2025, total comprehensive
 
income attributable to shareholders
 
was USD 2,635m, reflecting a
net profit
 
of USD 1,028m
 
and other
 
comprehensive
 
income (OCI),
 
net of
 
tax, of USD
 
1,607m.
Foreign currency translation OCI was USD 794m, 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 233m,
 
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 AG
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
 
the change 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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
UBS AG | UBS AG consolidated performance
 
12
Key figures and personnel
Below is
 
an overview
 
of selected
 
key figures
 
of UBS AG
 
consolidated. 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
 
88.0%, compared
 
with 84.3%,
 
mainly reflecting
 
an increase
 
in operating
 
expenses,
partly offset by an increase in total revenues.
 
Personnel: 1Q25 vs 4Q24
The number
 
of internal
 
personnel employed
 
as of
 
31 March 2025
 
was 67,373
 
(full-time equivalents),
 
a net
 
decrease
of 1,609 compared with 31 December 2024.
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
Net profit
Net profit attributable to shareholders
 
1,028
 
(257)
 
1,006
Equity
 
Equity attributable to shareholders
 
96,553
 
94,003
 
55,046
less: goodwill and intangible assets
 
6,691
 
6,661
 
6,237
Tangible equity attributable to shareholders
 
89,862
 
87,343
 
48,809
less: other CET1 adjustments
 
19,106
 
13,550
 
4,946
CET1 capital
 
70,756
 
73,792
 
43,863
Returns
Return on equity (%)
 
4.3
 
(1.1)
 
7.3
Return on tangible equity (%)
 
4.6
 
(1.2)
 
8.2
Return on CET1 capital (%)
 
5.7
 
(1.3)
 
9.1
Common equity tier 1 capital: 1Q25 vs 4Q24
During
 
the first
 
quarter of
 
2025,
 
common equity
 
tier 1 (CET1)
 
capital decreased
 
by
 
USD 3.0bn to
 
USD 70.8bn,
mainly as operating
 
profit before tax of
 
USD 1.3bn and foreign currency
 
translation gains of
 
USD 0.8bn were more
than offset by dividend accruals of USD 4.5bn, and
 
current tax expenses of USD 0.4bn.
Return on common equity tier 1 capital: 1Q25
 
vs 1Q24
The annualized
 
return on
 
CET1 capital
 
was 5.7%,
 
compared with
 
9.1%, driven
 
by an
 
increase in
 
average CET1
capital, partly offset by higher net profit attributable to
 
shareholders.
Risk-weighted assets: 1Q25 vs 4Q24
During the first quarter
 
of 2025, RWA decreased by USD 13.6bn
 
to USD 481.5bn, driven
 
by a USD 9.5bn decrease
resulting from asset
 
size and other movements,
 
an USD 8.6bn reduction as
 
a result of
 
the implementation of the
final Basel III standards,
 
and a
 
USD 1.1bn reduction
 
resulting from model
 
updates and
 
other methodology
 
changes.
These decreases were partly offset by a USD 5.7bn increase in currency effects.
Common equity tier 1 capital ratio: 1Q25 vs 4Q24
The CET1 capital ratio decreased
 
to 14.7% from 14.9%,
 
reflecting the aforementioned decrease
 
in CET1 capital,
partly offset by the aforementioned decrease in RWA.
Leverage ratio denominator: 1Q25 vs 4Q24
During the
 
first quarter
 
of 2025,
 
the LRD
 
increased by
 
USD 42.6bn to
 
USD 1,565.8bn,
 
driven by
 
an increase
 
of
USD 28.8bn as a result
 
of the implementation of the final
 
Basel III standards and currency
 
effects of USD 26.6bn,
partly offset by asset size and other movements of USD
 
12.8bn.
Common equity tier 1 leverage ratio: 1Q25
 
vs 4Q24
The CET1 leverage ratio decreased
 
to 4.5% from 4.8%, reflecting the
 
aforementioned increase in the LRD
 
and the
aforementioned decrease in CET1 capital.
 
UBS AG first quarter 2025 report |
UBS AG | UBS AG consolidated performance
 
13
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.
 
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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Business divisions and Group Items
 
14
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.
This discussion and
 
analysis of the
 
results of
 
the business divisions
 
and Group Items
 
compares the
 
results for the
first quarter of
 
2025, which are
 
based entirely on
 
consolidated data following the
 
merger of UBS AG
 
and Credit
Suisse AG, with those for the
 
first quarter of 2024, which
 
only included
 
pre-merger UBS AG consolidated results.
This is a material driver in many of the increases
 
across both revenues and operating expenses.
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
 
1,589
 
1,717
 
1,204
 
(7)
 
32
Recurring net fee income
1
 
3,274
 
3,262
 
2,693
 
0
 
22
Transaction-based income
1
 
1,423
 
1,034
 
986
 
38
 
44
Other income
 
6
 
(31)
 
35
 
(83)
Total revenues
 
6,293
 
5,982
 
4,918
 
5
 
28
Credit loss expense / (release)
 
8
 
(11)
 
9
 
(5)
Operating expenses
 
5,069
 
5,315
 
3,975
 
(5)
 
28
Business division operating profit / (loss) before tax
 
1,216
 
679
 
935
 
79
 
30
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
 
30.1
 
95.6
 
(21.8)
Cost / income ratio (%)
1
 
80.6
 
88.8
 
80.8
Financial advisor compensation
2
 
1,409
 
1,400
 
1,267
 
1
 
11
Invested assets (USD bn)
1
 
4,218
 
4,182
 
3,302
 
1
 
28
Loans, gross (USD bn)
3
 
301.7
 
302.2
 
210.6
 
0
 
43
Customer deposits (USD bn)
3
 
464.8
 
470.6
 
351.2
 
(1)
 
32
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,4
 
0.4
 
0.4
 
0.3
Advisors (full-time equivalents)
 
9,693
 
9,803
 
8,809
 
(1)
 
10
1 Refer to “Alternative performance
 
measures” in the appendix to this report for
 
the definition and calculation method.
 
2 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.
 
3 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.
 
4 Refer to the
 
“Risk management and
 
control” section
 
of this report
 
for more
information about (credit-)impaired exposures. Excludes loans to financial advisors.
 
UBS AG first quarter 2025 report |
Business divisions and Group Items | Global Wealth
 
Management
 
15
Results: 1Q25 vs 1Q24
Profit before tax increased by USD 281m, or
 
30%, to USD 1,216m, mainly driven by the
 
positive impact from the
merger of UBS AG and Credit Suisse AG, and higher
 
total revenues, partly offset by higher operating
 
expenses.
Total revenues
Total
 
revenues
 
increased
 
by
 
USD 1,375m,
 
or
 
28%,
 
to
 
USD 6,293m,
 
mainly
 
due
 
to
 
the
 
consolidation
 
of
 
Credit
Suisse AG revenues. The remaining
 
increase largely reflected increases
 
in recurring net fee
 
income and transaction-
based income.
Net interest income
 
increased by USD 385m,
 
or 32%, to USD 1,589m,
 
mainly driven by
 
the consolidation of
 
Credit
Suisse AG net interest
 
income, partly offset
 
by a decrease in
 
deposit revenues due
 
to lower margins and
 
a decrease
in loan revenues, reflecting lower margins
 
and average volumes.
Recurring net fee income increased by USD 581m, or 22%, to USD 3,274m, mainly driven by the consolidation
 
of
Credit Suisse AG recurring
 
net fee income, positive
 
market performance and
 
net new fee-generating
 
asset inflows.
Transaction-based income increased
 
by USD 437m, or 44%,
 
to USD 1,423m, mainly driven
 
by the consolidation of
Credit Suisse AG transaction-based income
 
and higher levels of client activity across
 
all regions.
Other
 
income
 
decreased
 
by
 
USD 29m
 
to
 
USD 6m,
 
mostly
 
due
 
to
 
lower
 
shared
 
services
 
costs
 
charged
 
to
 
other
subsidiaries of UBS Group AG, mainly related to
 
secondments.
Credit loss expense / release
Net credit loss expenses were USD 8m, compared with net expenses
 
of USD 9m in the first quarter of 2024.
Operating expenses
Operating expenses
 
increased
 
by
 
USD 1,094m, or
 
28%, to
 
USD 5,069m, mainly
 
driven
 
by
 
the
 
consolidation of
Credit
 
Suisse
 
AG
 
operating
 
expenses
 
and
 
an
 
increase
 
in
 
financial
 
advisor
 
compensation
 
as
 
a
 
result
 
of
 
higher
compensable revenues.
Invested assets: 1Q25 vs 4Q24
Invested assets increased by USD 36bn, or 1%, to USD 4,218bn, mainly driven by positive foreign currency effects
of USD 36bn and net new asset inflows,
 
partly offset by negative market performance.
Loans: 1Q25 vs 4Q24
Loans were
 
broadly stable
 
at USD 301.7bn,
 
as positive
 
foreign currency
 
effects and
 
positive net
 
new loans
 
were
more than offset
 
by an effect
 
related to 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.
›
Refer to the “Risk management and control” section of this report for more information
Customer deposits: 1Q25 vs 4Q24
Customer deposits
 
decreased by
 
USD 5.8bn to
 
USD 464.8bn, mainly
 
driven by
 
net new
 
deposit outflows,
 
partly
offset by positive foreign currency effects.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Business divisions and Group Items | Personal
 
& Corporate Banking
 
16
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
 
953
 
1,032
 
681
 
(8)
 
40
Recurring net fee income
1
 
329
 
357
 
221
 
(8)
 
48
Transaction-based income
1
 
454
 
454
 
300
 
0
 
51
Other income
 
68
 
(49)
 
14
 
381
Total revenues
 
1,804
 
1,795
 
1,217
 
1
 
48
Credit loss expense / (release)
 
52
 
167
 
9
 
(69)
 
464
Operating expenses
 
1,373
 
1,289
 
715
 
7
 
92
Business division operating profit / (loss) before tax
 
378
 
339
 
493
 
12
 
(23)
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
 
(23.2)
 
10.7
 
(10.5)
Cost / income ratio (%)
1
 
76.1
 
71.8
 
58.8
Net interest margin (bps)
1
 
153
 
168
 
185
Loans, gross (CHF bn)
 
251.8
 
245.3
 
148.5
 
3
 
70
Customer deposits (CHF bn)
 
252.2
 
255.5
 
169.6
 
(1)
 
49
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,2
 
1.5
 
1.5
 
0.9
1
Refer to “Alternative
 
performance measures” in the
 
appendix to this report for
 
the definition and calculation
 
method.
 
2
Refer to the “Risk management
 
and control” section of this
 
report for more information
about (credit-)impaired exposures.
Results
:
1Q25 vs 1Q24
Profit before tax decreased by CHF 115m, or
 
23%, to CHF 378m, as higher total revenues were more
 
than offset
by higher operating expenses and net credit loss expenses.
Total revenues
Total
 
revenues
 
increased
 
by
 
CHF 587m,
 
or
 
48%,
 
to
 
CHF 1,804m,
 
mainly
 
due
 
to
 
the
 
consolidation
 
of
 
Credit
Suisse AG revenues.
 
Net interest income increased by CHF 272m to CHF 953m, largely reflecting the consolidation of Credit Suisse
 
AG
net interest income.
Recurring net
 
fee income
 
increased by
 
CHF 108m to
 
CHF 329m,
 
mainly due
 
to the
 
consolidation of
 
Credit Suisse
 
AG
recurring
 
net
 
fee
 
income,
 
as
 
well
 
as
 
an
 
increase
 
in
 
revenues
 
due
 
to
 
higher
 
investment
 
product
 
levels,
 
mostly
reflecting net new inflows and positive market
 
performance.
Transaction-based
 
income
 
increased
 
by
 
CHF 154m
 
to
 
CHF 454m,
 
largely
 
due
 
to
 
the
 
consolidation
 
of
 
Credit
Suisse AG transaction-based income.
Other income was CHF 68m, compared with CHF 14m,
 
and included a gain of CHF
 
58m related to the Swisscard
transactions.
Credit loss expense / release
Net credit loss expenses were CHF 52m, mainly reflecting the consolidation of Credit
 
Suisse AG, and included net
credit loss expenses on
 
credit-impaired positions, primarily in
 
the legacy Credit
 
Suisse corporate loan book, partly
offset by net
 
credit loss releases
 
related to performing
 
positions. Net
 
credit loss expenses
 
in the first
 
quarter of
 
2024
were CHF 9m.
Operating expenses
Operating expenses increased
 
by CHF 658m, or
 
92%, to CHF 1,373m,
 
largely due to
 
the consolidation of
 
Credit
Suisse AG
 
expenses,
 
and
 
included
 
both
 
a
 
CHF 164m
 
expense
 
related
 
to
 
the
 
Swisscard
 
transactions
 
and
 
higher
integration-related expenses.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Business divisions and Group Items | Personal
 
& Corporate Banking
 
17
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
 
1,059
 
1,168
 
772
 
(9)
 
37
Recurring net fee income
1
 
365
 
404
 
251
 
(10)
 
46
Transaction-based income
1
 
505
 
514
 
340
 
(2)
 
49
Other income
 
75
 
(54)
 
16
 
370
Total revenues
 
2,005
 
2,032
 
1,378
 
(1)
 
45
Credit loss expense / (release)
 
58
 
189
 
10
 
(69)
 
466
Operating expenses
 
1,526
 
1,457
 
809
 
5
 
89
Business division operating profit / (loss) before tax
 
421
 
385
 
558
 
9
 
(25)
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
 
(24.7)
 
12.5
 
(6.3)
Cost / income ratio (%)
1
 
76.1
 
71.7
 
58.7
Net interest margin (bps)
1
 
153
 
166
 
182
Loans, gross (USD bn)
 
284.7
 
270.2
 
164.5
 
5
 
73
Customer deposits (USD bn)
 
285.1
 
281.4
 
188.0
 
1
 
52
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,2
 
1.5
 
1.5
 
0.9
1 Refer to “Alternative
 
performance measures” in the appendix
 
to this report for the
 
definition and calculation method.
 
2 Refer to the “Risk management
 
and control” section of this
 
report for more information
about (credit-)impaired exposures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Business divisions and Group Items | Asset Management
 
18
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
 
711
 
487
 
0
 
46
Performance fees
 
30
 
44
 
22
 
(32)
 
36
Net gain from disposals
 
(2)
 
12
Total revenues
 
741
 
768
 
509
 
(3)
 
45
Credit loss expense / (release)
 
0
 
0
 
0
Operating expenses
 
603
 
642
 
459
 
(6)
 
31
Business division operating profit / (loss) before tax
 
137
 
125
 
50
 
10
 
173
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
2
 
173.2
 
31.5
 
(46.8)
Cost / income ratio (%)
2
 
81.4
 
83.7
 
90.1
Gross margin on invested assets (bps)
2
 
17
 
17
 
16
Information by business line / asset
 
class
Invested assets (USD bn)
2
Equities
 
753
 
755
 
579
 
0
 
30
Fixed Income
 
479
 
464
 
337
 
3
 
42
of which: money market
 
164
 
157
 
142
 
4
 
15
Multi-asset & Solutions
 
275
 
268
 
185
 
2
 
49
Hedge Fund Businesses
 
60
 
58
 
55
 
3
 
9
Real Estate & Private Markets
 
147
 
143
 
97
 
3
 
51
Total invested assets excluding associates
 
1,715
 
1,689
 
1,253
 
2
 
37
of which: passive strategies
 
823
 
807
 
575
 
2
 
43
Associates
3
 
81
 
84
 
23
 
(3)
 
250
Total invested assets
 
1,796
 
1,773
 
1,276
 
1
 
41
Information by region
Invested assets (USD bn)
2
Americas
 
447
 
443
 
376
 
1
 
19
Asia Pacific
4
 
222
 
224
 
155
 
(1)
 
43
EMEA (excluding Switzerland)
 
440
 
435
 
334
 
1
 
32
Switzerland
 
688
 
670
 
412
 
3
 
67
Total invested assets
 
1,796
 
1,773
 
1,276
 
1
 
41
Information by channel
Invested assets (USD bn)
2
Third-party institutional
 
1,027
 
1,008
 
684
 
2
 
50
Third-party wholesale
 
163
 
169
 
129
 
(4)
 
27
UBS’s wealth management businesses
 
525
 
512
 
440
 
2
 
19
Associates
3
 
81
 
84
 
23
 
(3)
 
250
Total invested assets
 
1,796
 
1,773
 
1,276
 
1
 
41
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 The invested assets
 
amounts reported for
associates are prepared in accordance with their local regulatory requirements and practices.
 
4 Includes invested assets from associates.
Results: 1Q25 vs 1Q24
Profit
 
before
 
tax
 
increased
 
by
 
USD 87m,
 
or
 
173%,
 
to
 
USD 137m,
 
mainly
 
reflecting
 
the
 
impact
 
from
 
the
consolidation of Credit Suisse AG.
Total revenues
Total
 
revenues
 
increased
 
by
 
USD 232m, or
 
45%,
 
to
 
USD 741m, primarily
 
reflecting
 
the
 
consolidation of
 
Credit
Suisse AG revenues.
Net management
 
fees increased
 
by USD 226m,
 
or 46%,
 
to USD 713m,
 
largely reflecting
 
the consolidation
 
of Credit
Suisse AG net management fees.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Business divisions and Group Items | Asset Management
 
19
Performance fees increased
 
by USD 8m, or 36%,
 
to USD 30m, mainly due
 
to the consolidation
 
of Credit Suisse AG
performance fees, partly offset by decreases
 
in the Hedge Fund and Real Estate businesses.
Operating expenses
Operating expenses
 
increased by
 
USD 144m, or
 
31%, to
 
USD 603m, largely
 
due
 
to the
 
consolidation of
 
Credit
Suisse AG operating expenses, and included
 
higher integration-related expenses.
Invested assets: 1Q25 vs 4Q24
 
Invested
 
assets
 
increased
 
by
 
USD 23bn,
 
or
 
1%,
 
to
 
USD 1,796bn,
 
reflecting
 
positive
 
foreign
 
currency
 
effects
 
of
USD 33bn and net new money inflows of USD
 
7bn, partly offset by negative market
 
performance of USD 14bn.
 
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
 
165
 
(15)
 
34
Capital Markets
 
349
 
424
 
349
 
(18)
 
0
Global Banking
 
570
 
684
 
514
 
(17)
 
11
Execution Services
1
 
517
 
471
 
398
 
10
 
30
Derivatives & Solutions
1
 
1,301
 
683
 
934
 
90
 
39
Financing
 
665
 
722
 
542
 
(8)
 
23
Global Markets
 
2,482
 
1,876
 
1,874
 
32
 
32
of which: Equities
 
1,815
 
1,448
 
1,360
 
25
 
33
of which: Foreign Exchange, Rates and Credit
 
667
 
428
 
514
 
56
 
30
Total revenues
 
3,052
 
2,560
 
2,388
 
19
 
28
Credit loss expense / (release)
 
49
 
62
 
32
 
(22)
 
53
Operating expenses
 
2,455
 
2,229
 
2,083
 
10
 
18
Business division operating profit / (loss) before tax
 
548
 
268
 
272
 
104
 
101
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
2
 
101.3
n.m.
 
(42.2)
Cost / income ratio (%)
2
 
80.4
 
87.1
 
87.3
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 Refer to “Alternative performance measures” in
 
the appendix to this report for the definition and calculation method.
Results: 1Q25 vs 1Q24
Profit before
 
tax increased
 
by USD 276m,
 
or 101%,
 
to USD 548m,
 
mainly due
 
to higher
 
total revenues,
 
partly offset
by higher operating expenses.
Total revenues
Total revenues increased by USD 664m, or
 
28%, to USD 3,052m,
 
reflecting increases in
 
Global Markets
 
and Global
Banking.
Global Banking
Global Banking revenues increased by USD 56m, or 11%,
 
to USD 570m, reflecting higher Advisory revenues.
 
Advisory revenues
 
increased by
 
USD 56m, or
 
34%, to
 
USD 221m, mostly
 
due to
 
higher merger
 
and acquisition
transaction revenues.
Capital Markets revenues were USD 349m,
 
unchanged year on year.
Global Markets
Global
 
Markets
 
revenues
 
increased
 
by
 
USD 608m,
 
or
 
32%,
 
to
 
USD 2,482m,
 
driven
 
by
 
higher
 
Derivatives
 
&
Solutions, Financing and Execution Services
 
revenues.
Execution
 
Services
 
revenues
 
increased
 
by
 
USD 119m,
 
or
 
30%,
 
to
 
USD 517m,
 
mainly
 
due
 
to
 
increases
 
in
 
Cash
Equities across all regions, driven by higher volumes.
Derivatives
 
&
 
Solutions
 
revenues
 
increased
 
by
 
USD 367m,
 
or
 
39%,
 
to
 
USD 1,301m,
 
mainly
 
reflecting
 
higher
revenues in Equity Derivatives and Foreign
 
Exchange, due to increased volatility and
 
higher levels of client activity.
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Business divisions and Group Items | Investment
 
Bank
 
20
Financing revenues increased by USD 123m, or 23%, to USD 665m, mainly driven by Prime Brokerage, supported
by higher client balances.
Equities
Global Markets Equities
 
revenues increased by
 
USD 455m, or 33%,
 
to USD 1,815m, mainly
 
due to higher
 
revenues
in Equity Derivatives, Cash Equities and Prime Brokerage.
Foreign Exchange, Rates and Credit
Global
 
Markets
 
Foreign
 
Exchange,
 
Rates
 
and
 
Credit
 
revenues
 
increased
 
by
 
USD 153m,
 
or
 
30%,
 
to
 
USD 667m,
mainly driven by increases in Foreign Exchange.
Credit loss expense / release
Net credit loss expenses were USD 49m, compared with net credit loss expenses of USD 32m, reflecting net credit
loss expenses on performing and credit-impaired positions, including
 
the impact of model updates.
Operating expenses
Operating expenses
 
increased by
 
USD 372m, or
 
18%, to
 
USD 2,455m, mainly
 
driven by
 
higher personnel
 
expenses.
Non-core and Legacy
Non-core and Legacy
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
 
119
 
(75)
 
21
 
471
Credit loss expense / (release)
 
10
 
2
 
0
Operating expenses
 
748
 
1,131
 
138
 
(34)
 
441
Operating profit / (loss) before tax
 
(639)
 
(1,208)
 
(118)
 
(47)
 
444
Results: 1Q25 vs 1Q24
Loss
 
before
 
tax
 
was
 
USD 639m,
 
primarily
 
due
 
to
 
the
 
impact
 
of
 
the
 
merger
 
of
 
UBS AG
 
and
 
Credit
 
Suisse AG,
compared with a loss before tax of USD 118m.
Total revenues
Total revenues were USD 119m, which
 
was USD 98m
 
higher than
 
the amount
 
recorded in the
 
first quarter
 
of 2024,
mainly due
 
to the
 
consolidation
 
of Credit
 
Suisse AG revenues.
 
Total revenues reflected net
 
gains from
 
position exits,
along with net interest income from securitized products and credit products.
 
Total
 
revenues in the first quarter of
2025 included a loss of
 
USD 11m from the sale of
 
Select Portfolio Servicing, the
 
US mortgage servicing business
 
of
Credit Suisse.
Credit loss expense / release
Net
 
credit loss
 
expenses were
 
USD 10m, almost
 
entirely
 
driven by
 
credit-impaired
 
positions, compared
 
with net
credit loss releases of USD 0m.
Operating expenses
Operating expenses
 
were USD 748m,
 
compared with
 
operating expenses
 
of USD 138m
 
recorded in the
 
first quarter
of 2024, with
 
the change largely
 
due to the
 
consolidation of Credit
 
Suisse AG expenses, and
 
included a USD 130m
increase in integration-related
 
expenses. Operating
 
expenses also
 
included a
 
USD 91m increase
 
related to litigation,
regulatory and similar matters.
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Business divisions and Group Items | Group
 
Items
 
21
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
 
(46)
 
51
 
(106)
 
(56)
Credit loss expense / (release)
 
(1)
 
0
 
1
Operating expenses
 
299
 
242
 
212
 
24
 
41
Operating profit / (loss) before tax
 
(344)
 
(190)
 
(319)
 
81
 
8
Results: 1Q25 vs 1Q24
Loss before
 
tax increased
 
by USD 25m
 
to USD 344m,
 
mainly due
 
to an
 
increase in
 
provisions for
 
litigation, regulatory
and similar matters and higher shared services costs charged by
 
other subsidiaries of UBS Group AG, partly offset
by lower mark-to-market
 
losses from Group
 
hedging and own
 
debt,
 
including hedge accounting ineffectiveness.
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 AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Risk management and control
 
23
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 AG 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.
The risk profile of UBS AG consolidated does
 
not differ materially from that of UBS Group
 
AG consolidated.
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 36bn compared
 
with 31 December 2024,
 
to USD 1,046bn 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 “UBS AG consolidated performance” section and “Note
9
 
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 AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Risk management and control
 
24
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
 
466,303
 
430,215
 
1,574
 
104,570
 
18,497
 
25,170
 
1,046,328
of which: loans and advances to customers (on-balance sheet)
 
297,010
 
284,705
 
10
 
17,676
 
1,687
 
5,100
 
606,188
of which: guarantees and irrevocable loan commitments (off-balance sheet)
 
20,082
 
44,771
 
11
 
35,088
 
1,345
 
20,755
 
122,051
Committed unconditionally revocable credit lines
3
 
78,172
 
65,381
 
0
 
546
 
4
 
804
 
144,907
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
 
1,407
 
4,267
 
0
 
609
 
1,270
 
0
 
7,554
Total allowances and provisions for expected credit losses
 
301
 
1,981
 
0
 
436
 
962
 
5
 
3,685
of which: stage 1
 
106
 
276
 
0
 
103
 
3
 
5
 
493
of which: stage 2
 
56
 
247
 
0
 
151
 
215
 
0
 
668
of which: stage 3
 
139
 
1,458
 
0
 
182
 
744
 
0
 
2,524
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
 
453,812
 
428,356
 
1,533
 
72,987
 
33,779
 
19,742
 
1,010,209
of which: loans and advances to customers (on-balance sheet)
 
297,602
 
270,165
 
9
 
17,497
 
1,660
 
3,243
 
590,176
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
 
79,462
 
65,749
 
0
 
452
 
4
 
3,233
 
148,900
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
 
1,421
 
4,187
 
0
 
595
 
1,289
 
0
 
7,492
Total allowances and provisions for expected credit losses
 
302
 
1,914
 
0
 
382
 
922
 
6
 
3,527
of which: stage 1
 
97
 
269
 
0
 
110
 
4
 
6
 
487
of which: stage 2
 
68
 
247
 
0
 
142
 
166
 
0
 
623
of which: stage 3
 
138
 
1,398
 
0
 
130
 
751
 
0
 
2,417
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 AG at any time but expose
 
UBS AG to credit risk if the client has the ability to draw the
 
facility before UBS AG 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
 
291,088
 
291,679
 
249,097
 
235,413
Residential real estate
 
102,372
 
107,176
 
198,482
 
186,137
Commercial / industrial real estate
 
9,383
 
9,487
 
38,582
 
37,413
Cash
 
28,054
 
28,455
 
2,737
 
2,631
Equity and debt instruments
 
124,412
 
120,376
 
2,600
 
2,783
Other collateral
2
 
26,867
 
26,186
 
6,696
 
6,450
Subject to guarantees
 
1,756
 
1,751
 
7,237
 
7,032
Uncollateralized and not subject to guarantees
 
4,166
 
4,172
 
28,371
 
27,720
Total loans and advances to customers, gross
 
297,010
 
297,602
 
284,705
 
270,165
Allowances
 
(224)
 
(231)
 
(1,715)
 
(1,660)
Total loans and advances to customers, net of allowances
 
296,786
 
297,371
 
282,990
 
268,505
Collateralized loans and advances to customers as a percentage of
 
total loans and advances to customers, gross (%)
 
98.0
 
98.0
 
87.5
 
87.1
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 AG
 
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 AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Risk management and control
 
25
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 AG
 
has
 
adopted
 
the
 
standardized
approach for all
 
legal entities regulated
 
by the Swiss
 
Financial Market Supervisory Authority
 
(FINMA). 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.
UBS AG
 
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 AG 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 AG
 
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
 
UBS AG’s banking book to
 
a +1-basis-point parallel shift in
 
yield
curves was
 
negative USD 38.6m
 
as of
 
31 March
 
2025, compared
 
with negative
 
USD 37.1m 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 UBS AG increased during the
 
first quarter of 2025, predominantly driven by
 
issuances of AT1
capital instruments during the quarter.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Risk management and control
 
26
The majority of
 
UBS AG’s interest rate
 
risk in the banking
 
book (IRRBB) as
 
of 31 March 2025
 
was a reflection
 
of the
net asset duration that it
 
ran to offset its modeled
 
sensitivity of net USD 30.3m (31 December 2024: USD 29.4m)
assigned to
 
its 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).
In addition to the aforementioned sensitivity, UBS AG calculates 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 7.9%, of
 
UBS AG’s tier 1
capital (31 December
 
2024: negative
 
USD 6.7bn, or
 
7.4%), which
 
is well below
 
the 15%
 
threshold as
 
per the
 
BCBS
supervisory outlier test for high levels of IRRBB.
The immediate
 
effect on
 
UBS AG’s 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
 
UBS AG’s 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 UBS AG’s tier 1 capital.
›
Refer to “Interest rate risk in the banking book” in the “Risk management and control” section of the UBS AG
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 “UBS AG consolidated performance” section of this report
for more information about the effects of increases in interest rates on the net interest income of UBS AG’s
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
 
(10.0)
 
(1.5)
 
(0.3)
 
(26.5)
 
(0.3)
 
(38.6)
 
7.4
 
(31.1)
Parallel up
2
 
(1,450.8)
 
(289.9)
 
(61.3)
 
(5,169.7)
 
(80.2)
 
(7,051.9)
 
1,347.7
 
(5,704.2)
Parallel down
2
 
1,543.3
 
317.7
 
72.6
 
5,439.3
 
81.7
 
7,454.5
 
(1,607.9)
 
5,846.5
Steepener
3
 
(785.1)
 
(15.6)
 
(12.7)
 
(1,398.6)
 
(19.5)
 
(2,231.5)
 
297.2
 
(1,934.3)
Flattener
4
 
518.1
 
(32.2)
 
1.0
 
201.9
 
2.6
 
691.4
 
11.0
 
702.4
Short-term up
5
 
(85.4)
 
(118.7)
 
(20.9)
 
(1,939.0)
 
(28.1)
 
(2,192.1)
 
595.9
 
(1,596.2)
Short-term down
6
 
55.3
 
118.0
 
20.9
 
2,040.0
 
28.7
 
2,263.0
 
(620.3)
 
1,642.6
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)
 
(1.3)
 
(0.3)
 
(24.6)
 
(0.5)
 
(37.1)
 
5.6
 
(31.6)
Parallel up
2
 
(1,510.7)
 
(251.8)
 
(64.4)
 
(4,747.8)
 
(96.2)
 
(6,670.9)
 
1,009.9
 
(5,661.1)
Parallel down
2
 
1,644.9
 
280.0
 
74.0
 
5,054.3
 
101.7
 
7,154.8
 
(1,183.4)
 
5,971.4
Steepener
3
 
(748.7)
 
(4.0)
 
(10.6)
 
(1,253.2)
 
(9.2)
 
(2,025.8)
 
167.6
 
(1,858.2)
Flattener
4
 
463.5
 
(37.8)
 
(2.2)
 
161.3
 
(11.0)
 
573.7
 
63.6
 
637.4
Short-term up
5
 
(150.2)
 
(112.6)
 
(24.0)
 
(1,815.4)
 
(46.8)
 
(2,148.9)
 
490.6
 
(1,658.3)
Short-term down
6
 
133.4
 
112.5
 
24.7
 
1,926.2
 
47.4
 
2,244.2
 
(510.8)
 
1,733.4
1 Economic value
 
of equity.
 
2 Rates across
 
all tenors move
 
by ±150 bps
 
for Swiss franc,
 
±200 bps for
 
euro and US
 
dollar, and
 
±250 bps for
 
pound sterling.
 
3 Short-term rates
 
decrease and long-term
 
rates
increase.
 
4 Short-term rates increase and long-term rates decrease.
 
5 Short-term rates increase more than long-term rates.
 
6 Short-term rates decrease more than long-term rates.
 
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Risk management and control
 
27
Country risk
 
UBS AG remains 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. UBS AG also continues
 
to monitor conflicts
 
in the Middle East.
 
As of 31 March 2025,
 
UBS AG’s direct
exposure to Israel was less than USD 0.5bn and its direct exposure to Gulf Cooperation Council countries was less
than USD 5bn,
 
while its direct exposure to
 
Egypt and Jordan was
 
limited, and there was
 
no direct exposure to Iran,
Iraq, Lebanon or Syria. UBS AG’s direct exposure to Russia
 
as of 31 March 2025 was less than
 
USD 0.5bn,
 
and its
direct
 
exposure
 
to
 
Belarus and
 
Ukraine remained
 
immaterial.
 
Potential second-order
 
impacts, such
 
as European
energy security, continue to be monitored.
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.
UBS AG continues
 
to monitor
 
ongoing trade
 
policy disputes,
 
as well
 
as economic
 
and political
 
developments in
addition to those mentioned above. As of 31 March 2025, UBS AG’s exposure to emerging market countries was
less than 10%
 
of its total country exposure and mainly
 
to certain countries in Asia.
›
Refer to the “Risk management and control” section of the UBS AG 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 the
 
Group, UBS AG
 
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.
 
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Risk management and control
 
28
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
 
merger
 
of
 
UBS AG
 
and
Credit Suisse AG
 
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.
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 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 AG
 
Annual Report
 
2024, available
 
under “Annual
reporting” at
ubs.com/investors
, which provides more information about relevant capital management objectives,
planning
 
and
 
activities, as
 
well
 
as
 
the
 
Swiss
 
SRB
 
total
 
loss-absorbing capacity
 
(TLAC) framework,
 
on
 
a
 
UBS AG
consolidated basis.
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 AG contributes
 
a significant portion
 
of capital to,
 
and provides substantial
 
liquidity to, its
 
subsidiaries. Many of
these
 
subsidiaries
 
are
 
subject
 
to
 
regulations
 
requiring
 
compliance
 
with
 
minimum
 
capital,
 
liquidity
 
and
 
similar
requirements.
›
Refer to the UBS Group and significant regulated subsidiaries and sub-groups 31 March 2025 Pillar 3 Report,
available 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 “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 risk-weighted assets
(RWA) and leverage ratio denominator (LRD), refer to “Risk-weighted assets” and “Leverage ratio denominator” in
this section
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Capital management
 
29
Swiss SRB going and gone concern requirements and information
As of 31.3.25
RWA
LRD
USD m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
 
14.96
1
 
72,036
 
5.02
1
 
78,554
Common equity tier 1 capital
 
10.61
2
 
51,092
 
3.52
3
 
55,067
of which: minimum capital
 
4.50
 
21,669
 
1.50
 
23,488
of which: buffer capital
 
5.50
 
26,485
 
2.00
 
31,317
of which: countercyclical buffer
 
0.44
 
2,123
Maximum additional tier 1 capital
 
4.35
2
 
20,944
 
1.50
 
23,488
of which: additional tier 1 capital
 
3.50
 
16,854
 
1.50
 
23,488
of which: additional tier 1 buffer capital
 
0.80
 
3,852
Eligible going concern capital
Total going concern capital
 
18.50
 
89,081
 
5.69
 
89,081
Common equity tier 1 capital
 
14.69
 
70,756
 
4.52
 
70,756
Total loss-absorbing additional tier 1 capital
 
3.81
 
18,325
 
1.17
 
18,325
of which: high-trigger loss-absorbing additional tier 1 capital
 
3.81
 
18,325
 
1.17
 
18,325
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
 
10.73
 
51,645
 
3.75
 
58,719
of which: base requirement including add-ons for market share and LRD
 
10.73
7
 
51,645
 
3.75
7
 
58,719
Eligible gone concern capital
Total gone concern loss-absorbing capacity
 
19.46
 
93,705
 
5.98
 
93,705
Total tier 2 capital
 
0.04
 
205
 
0.01
 
205
of which: non-Basel III-compliant tier 2 capital
 
0.04
 
205
 
0.01
 
205
TLAC-eligible unsecured debt
 
19.42
 
93,499
 
5.97
 
93,499
Total loss-absorbing capacity
Required total loss-absorbing capacity
 
25.68
 
123,681
 
8.77
 
137,273
Eligible total loss-absorbing capacity
 
37.96
 
182,786
 
11.67
 
182,786
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
 
481,539
Leverage ratio denominator
 
1,565,845
1 Includes applicable add-ons of 1.66% for risk-weighted assets (RWA) and 0.52% for leverage ratio denominator (LRD), of which 5 basis points for RWA and 2 basis points for LRD reflect a Pillar 2 capital add-on of
USD 262m related to the supply chain
 
finance funds matter at Credit
 
Suisse. An additional 16
 
basis points for RWA reflect
 
a Pillar 2 capital add-on
 
for uncollateralized exposures to hedge
 
funds, private equity
 
and
family offices, effective 1 January 2025.
 
2 Includes the Pillar 2 add-on for uncollateralized exposures to hedge funds, private equity and family
 
offices of 0.11% for CET1 capital and 0.05% for AT1 capital, effective
1 January 2025. For AT1 capital, under Pillar 1 requirements, a maximum of 4.3% of AT1 capital can be used to meet going concern requirements; 4.35% includes the aforementioned Pillar 2 capital add-on.
 
3 The
CET1 leverage ratio requirement of 3.52% consists of a 1.5%
 
base requirement, a 1.5% base buffer capital requirement, a 0.25% LRD add-on
 
requirement, a 0.25% market share add-on requirement
 
based on our
Swiss credit business and a 0.02% Pillar 2 capital add-on related to the supply chain finance funds matter at Credit Suisse.
 
4 A maximum of 25% of the gone concern requirements can be met with instruments that
have a remaining maturity of between one and
 
two years. Once at least 75% of the
 
minimum gone concern requirement has been met with
 
instruments that have a remaining maturity of greater than
 
two years, all
instruments that have a remaining
 
maturity of between one and
 
two years remain eligible to
 
be included in the total
 
gone concern capital.
 
5 From 1 January
 
2023, the resolvability discount
 
on the gone concern
capital requirements for systemically
 
important banks (SIBs) has
 
been replaced with reduced
 
base gone concern capital requirements
 
equivalent to 75% of the
 
total going concern requirements
 
(excluding countercyclical
buffer requirements and
 
the Pillar 2
 
add-ons).
 
6 As of
 
July 2024, FINMA
 
has the authority
 
to impose a
 
surcharge of up
 
to 25% of
 
the total going
 
concern capital requirements
 
(excluding countercyclical buffer
requirements and the Pillar 2 add-ons) should obstacles to an SIB’s resolvability be identified
 
in future resolvability assessments.
 
7 Includes applicable add-ons of 1.08% for RWA and 0.38% for LRD.
UBS AG, on a consolidated basis, is 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 above provides the RWA-
 
and LRD-
based requirements and information as of 31 March 2025.
 
UBS AG and UBS Switzerland AG are subject
 
to going and gone concern requirements
 
on a standalone basis.
 
Effective 1 January 2025,
 
a Pillar 2 capital
 
add-on for uncollateralized
 
exposures to hedge
 
funds, private equity
 
and
family offices has been introduced.
 
This resulted in an increase of
 
16 basis points in the RWA-based
 
going concern
capital requirement as of 31 March 2025.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Capital management
 
30
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 AG
 
Annual
 
Report
 
2024,
 
available
 
under
 
“Annual
 
reporting”
 
at
ubs.com/investors
.
Changes to the Swiss SRB framework
 
and requirements after the publication of the
 
UBS AG 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
 
89,081
 
89,623
Total tier 1 capital
 
89,081
 
89,623
Common equity tier 1 capital
 
70,756
 
73,792
Total loss-absorbing additional tier 1 capital
 
18,325
 
15,830
of which: high-trigger loss-absorbing additional tier 1 capital
 
18,325
 
14,585
of which: low-trigger loss-absorbing additional tier 1 capital
 
1,245
Eligible gone concern capital
Total gone concern loss-absorbing capacity
 
93,705
 
92,177
Total tier 2 capital
 
205
 
207
of which: non-Basel III-compliant tier 2 capital
 
205
 
207
TLAC-eligible unsecured debt
 
93,499
 
91,970
Total loss-absorbing capacity
Total loss-absorbing capacity
 
182,786
 
181,800
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
 
481,539
 
495,110
Leverage ratio denominator
 
1,565,845
 
1,523,277
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
 
18.5
 
18.1
of which: common equity tier 1 capital ratio
 
14.7
 
14.9
Gone concern loss-absorbing capacity ratio
 
19.5
 
18.6
Total loss-absorbing capacity ratio
 
38.0
 
36.7
Leverage ratios (%)
Going concern leverage ratio
 
5.7
 
5.9
of which: common equity tier 1 leverage ratio
 
4.5
 
4.8
Gone concern leverage ratio
 
6.0
 
6.1
Total loss-absorbing capacity leverage ratio
 
11.7
 
11.9
Total loss-absorbing capacity and movement
 
TLAC increased by USD 1.0bn to USD 182.8bn in
 
the first quarter of 2025.
Going concern capital and movement
Going concern capital decreased by USD 0.5bn to
 
USD 89.1bn. Common equity tier 1 (CET1)
 
capital decreased by
USD 3.0bn to
 
USD 70.8bn, mainly
 
as operating
 
profit before
 
tax of
 
USD 1.3bn and
 
foreign currency
 
translation
gains
 
of
 
USD 0.8bn
 
were
 
more
 
than
 
offset
 
by
 
dividend
 
accruals
 
of
 
USD 4.5bn,
 
and
 
current
 
tax
 
expenses
 
of
USD 0.4bn.
Loss-absorbing additional tier 1 (AT1) capital issued by the Group
 
and on lent to UBS AG increased by
 
USD 2.5bn
to USD 18.3bn,
 
reflecting the
 
issuance of
 
new AT1
 
capital instruments
 
equivalent
 
to USD 3.0bn
 
and positive
 
impacts
from interest rate risk hedge, foreign currency translation and other effects, partly offset by the call of AT1 capital
instruments equivalent to USD 1.3bn.
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 by
 
UBS Group AG
 
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.
 
The corresponding
 
AT1 capital
 
instruments on
 
lent to
 
UBS AG contain
 
the same
 
provisions.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Capital management
 
31
Gone concern loss-absorbing capacity and movement
Total
 
gone concern loss-absorbing capacity
 
increased by
 
USD 1.5bn to USD 93.7bn
 
and included USD 93.5bn
 
of
TLAC-eligible unsecured debt instruments that were
 
issued by the Group
 
and on lent to
 
UBS AG. The increase of
USD 1.5bn 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 and key features
and terms and conditions of capital instruments
Loss-absorbing capacity and leverage ratios
The CET1
 
capital ratio
 
decreased to
 
14.7% from
 
14.9%, reflecting a
 
USD 3.0bn decrease
 
in CET1
 
capital, partly
offset by a USD 13.6bn decrease in RWA.
 
The
 
CET1
 
leverage
 
ratio
 
decreased
 
to
 
4.5%
 
from
 
4.8%,
 
driven
 
by
 
a
 
USD 42.6bn
 
increase
 
in
 
the
 
LRD
 
and
 
the
aforementioned decrease in CET1 capital.
The going concern capital ratio increased to 18.5%
 
from 18.1%, reflecting a USD 13.6bn decrease
 
in RWA, partly
offset by a USD 0.5bn decrease in going concern
 
capital.
The going concern
 
leverage ratio
 
decreased to 5.7%
 
from 5.9%, reflecting
 
the aforementioned
 
increase in the
 
LRD
and a USD 0.5bn decrease in going concern capital.
The gone
 
concern loss-absorbing
 
capacity ratio
 
increased to
 
19.5% from
 
18.6%, reflecting
 
the aforementioned
decrease in RWA and a USD 1.5bn increase in
 
gone concern loss-absorbing capacity.
 
The gone concern
 
leverage ratio decreased
 
to 6.0%
 
from 6.1%, reflecting
 
the aforementioned
 
increase in the
 
LRD,
partly offset by the aforementioned increase
 
in gone concern loss-absorbing capacity.
Swiss SRB total loss-absorbing capacity movement
USD m
Going concern capital
Swiss SRB
Common equity tier 1 capital as of 31.12.24
 
73,792
Operating profit / (loss) before tax
 
1,339
Current tax (expense) / benefit
 
(431)
Foreign currency translation effects, before tax
 
796
Other
1
 
(4,739)
Common equity tier 1 capital as of 31.3.25
 
70,756
Loss-absorbing additional tier 1 capital as of 31.12.24
 
15,830
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
 
744
Loss-absorbing additional tier 1 capital as of 31.3.25
 
18,325
Total going concern capital as of 31.12.24
 
89,623
Total going concern capital as of 31.3.25
 
89,081
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
 
91,970
Issuance of TLAC-eligible unsecured debt
 
3,046
Call of TLAC-eligible 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
 
2,362
TLAC-eligible unsecured debt as of 31.3.25
 
93,499
Total gone concern loss-absorbing capacity as of 31.12.24
 
92,177
Total gone concern loss-absorbing capacity as of 31.3.25
 
93,705
Total loss-absorbing capacity
Total loss-absorbing capacity as of 31.12.24
 
181,800
Total loss-absorbing capacity as of 31.3.25
 
182,786
1 Includes dividend accruals for 2025 (negative USD 4.5bn) and movements related to other items.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Capital management
 
32
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
 
97,123
 
94,666
Equity attributable to non-controlling interests
 
(569)
 
(662)
Defined benefit plans, net of tax
 
(938)
 
(822)
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
 
(162)
Goodwill, net of tax
1
 
(6,231)
 
(6,207)
Intangible assets, net of tax
 
(105)
 
(103)
Expected losses on advanced internal ratings-based portfolio less provisions
 
(579)
 
(569)
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
 
943
 
1,179
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
 
(13,000)
 
(13,000)
Other
 
(4,515)
3
 
(69)
Total common equity tier 1 capital
 
70,756
 
73,792
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 Reflects an ordinary dividend distribution of USD 6,500m and the appropriation of USD 6,500m to a special dividend reserve, both approved at the 2025 Annual General
 
Meeting in April 2025. The decision on the
special dividend payment
 
is intended to
 
be made at
 
an Extraordinary General
 
Meeting in the
 
second half of
 
2025, considering any
 
proposed requirements from
 
Switzerland’s ongoing
 
review of its
 
capital regime.
 
3 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 2.5bn as
 
of 31
 
March 2025
 
(31 December
 
2024: USD 21bn
 
and USD 2.6bn,
respectively)
 
and
 
decreased
 
our
 
CET1
 
capital
 
ratio
 
by
 
10
 
basis
 
points
 
(31
 
December
 
2024:
 
11
 
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 2.3bn (31 December
 
2024: USD 19bn and
 
USD 2.3bn, respectively) and
increased our CET1 capital ratio by 10 basis points
 
(31 December 2024: 11 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 12 basis points (31 December
 
2024: 13 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 AG Annual Report 2024, available under
“Annual reporting” at
ubs.com/investors
, for more information
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Capital management
 
33
Risk-weighted assets
 
During the first quarter of
 
2025, RWA decreased by
 
USD 13.6bn to USD 481.5bn,
 
driven by a USD 9.5bn decrease
resulting from asset size
 
and other movements, an
 
USD 8.6bn reduction as a
 
result of the
 
implementation of the
final Basel III standards,
 
and a USD 1.1bn
 
reduction resulting
 
from model updates
 
and other methodology
 
changes.
These decreases were partly offset by a USD
 
5.7bn increase in currency effects.
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
 
292.3
 
5.4
 
(6.1)
 
(1.1)
 
(6.6)
 
283.9
Non-counterparty-related risk
3
 
30.2
 
0.4
 
(0.7)
 
29.9
Market risk
 
27.2
 
6.5
 
(2.3)
 
31.4
Operational risk
 
145.4
 
(9.0)
 
136.4
Total
 
495.1
 
5.7
 
(8.6)
 
(1.1)
 
(9.5)
 
481.5
1 Includes the Pillar 3 categories “Asset
 
size”, “Credit quality of counterparties”, “Acquisitions
 
and disposals” and “Other”. For
 
more information, refer to the UBS Group
 
and significant regulated subsidiaries and
sub-groups 31 March 2025
 
Pillar 3 Report, available
 
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 8.4bn to USD 283.9bn as of 31 March 2025, driven by
a
 
USD 6.6bn
 
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 5.4bn 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
 
USD 6.1bn
 
impact
 
from
 
the
 
implementation
 
of
 
the
 
final
 
Basel III
 
standards
 
on
 
credit
 
and
counterparty credit risk RWA
 
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 5.1bn,
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
 
0.7bn,
 
mainly
 
due
 
to
 
lower
 
RWA
 
from derivatives,
 
partly
 
offset
 
by
higher RWA from loans and loan commitments.
–
Personal & Corporate Banking RWA decreased by
 
USD 0.4bn.
–
Asset Management RWA decreased by USD 0.1bn.
–
Group Items RWA increased by
 
USD 0.7bn, mainly as
 
a result of higher
 
intercompany exposures to UBS Group
AG, partly offset by higher allocation of high-quality
 
liquid assets (HQLA) to business divisions.
 
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 UBS Group and significant regulated subsidiaries and sub-groups 31 March 2025 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information on a UBS Group AG consolidated
basis
 
›
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 AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Capital management
 
34
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 incorporation 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 “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
Risk-weighted assets, 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
RWA
31.3.25
Credit and counterparty credit risk
1
 
96.1
 
115.7
 
6.4
 
53.2
 
6.8
 
5.7
 
283.9
Non-counterparty-related risk
2
 
5.1
 
2.3
 
0.6
 
3.3
 
0.7
 
17.9
 
29.9
Market risk
 
0.8
 
0.1
 
28.0
 
2.4
 
0.0
 
31.4
Operational risk
 
60.4
 
18.5
 
6.5
 
23.8
 
24.0
 
3.2
 
136.4
Total
 
162.4
 
136.6
 
13.5
 
108.3
 
34.0
 
26.8
 
481.5
31.12.24
Credit and counterparty credit risk
1
 
93.6
 
120.7
 
7.0
 
56.3
 
10.6
 
4.1
 
292.3
Non-counterparty-related risk
2
 
5.3
 
2.2
 
0.5
 
3.1
 
0.8
 
18.3
 
30.2
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
 
164.8
 
142.5
 
14.8
 
106.0
 
40.6
 
26.6
 
495.1
31.3.25 vs 31.12.24
Credit and counterparty credit risk
1
 
2.5
 
(5.1)
 
(0.5)
 
(3.1)
 
(3.8)
 
1.5
 
(8.4)
Non-counterparty-related risk
2
 
(0.2)
 
0.2
 
0.0
 
0.2
 
(0.1)
 
(0.3)
 
(0.3)
Market risk
 
(1.9)
 
(0.2)
 
0.0
 
5.9
 
0.3
 
0.0
 
4.2
Operational risk
 
(2.8)
 
(0.8)
 
(0.8)
 
(0.7)
 
(3.0)
 
(1.0)
 
(9.0)
Total
 
(2.4)
 
(5.8)
 
(1.3)
 
2.3
 
(6.6)
 
0.3
 
(13.6)
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 17.7bn; 31
 
December 2024: USD
 
17.9bn), as well
 
as property,
 
equipment, software and
 
other items (31
 
March 2025: USD 12.2bn;
31 December 2024: USD 12.2bn).
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Capital management
 
35
Leverage ratio denominator
During the
 
first quarter
 
of 2025,
 
the LRD
 
increased by
 
USD 42.6bn to
 
USD 1,565.8bn, driven
 
by an
 
increase of
USD 28.8bn as a result
 
of the implementation of the
 
final Basel III standards and currency
 
effects of USD 26.6bn,
partly offset by asset size and other movements
 
of USD 12.8bn.
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
 
1,143.9
 
21.3
 
(1.9)
 
24.3
 
1,187.6
Derivative exposures
 
132.2
 
1.5
 
37.5
 
(21.8)
 
149.3
Securities financing transaction exposures
 
177.1
 
2.6
 
(0.2)
 
(14.7)
 
164.7
Off-balance sheet items
1
 
70.1
 
1.1
 
(6.5)
 
(0.5)
 
64.2
Total
 
1,523.3
 
26.6
 
28.8
 
(12.8)
 
1,565.8
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 AG
 
Annual Report 2024,
 
available under “Annual
 
reporting” at ubs.com/investors,
 
for more information
about previously published disclosures.
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
 
change from
 
the current
 
exposure
method to the standardized approach for counterparty
 
credit risk, including the application of the prescribed 1.4×
multiplier to address risks, for
 
example wrong-way risk, that are
 
not directly captured in
 
the framework. This was
partly offset
 
by decreases in
 
off-balance sheet positions
 
resulting from
 
a change to
 
credit conversion
 
factors and
on-balance sheet exposures due to an alignment of the
 
consolidation scope between RWA and LRD.
›
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.
 
On-balance sheet exposures (excluding derivatives and securities financing transactions)
 
increased by USD 24.3bn,
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 21.8bn,
 
mainly
 
due
 
to
 
mark-to-market
 
movements
 
in
 
foreign
 
currency
contracts and lower trading volumes in the
 
Investment Bank.
Securities financing transactions 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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Capital management
 
36
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
 
488.0
 
406.4
 
3.8
 
251.5
 
23.3
 
14.7
 
1,187.6
Derivative exposures
 
25.1
 
6.2
 
0.0
 
113.8
 
4.0
 
0.2
 
149.3
Securities financing transaction exposures
 
57.0
 
37.1
 
0.1
 
63.4
 
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
 
588.0
 
478.6
 
4.0
 
444.9
 
34.7
 
15.6
 
1,565.8
31.12.24
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
1
 
475.4
 
399.8
 
3.8
 
211.1
 
39.3
 
14.5
 
1,143.9
Derivative exposures
 
12.2
 
6.0
 
0.0
 
104.6
 
9.7
 
(0.2)
 
132.2
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
 
31.3
 
0.1
 
18.2
 
1.8
 
0.2
 
70.1
Total
 
577.5
 
481.8
 
4.1
 
393.2
 
53.1
 
13.6
 
1,523.3
31.3.25 vs 31.12.24
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
 
12.6
 
6.6
 
0.0
 
40.4
 
(16.1)
 
0.2
 
43.7
Derivative exposures
 
12.9
 
0.2
 
0.0
 
9.3
 
(5.6)
 
0.4
 
17.2
Securities financing transaction exposures
 
(14.6)
 
(7.7)
 
0.0
 
4.2
 
4.5
 
1.2
 
(12.4)
Off-balance sheet items
 
(0.4)
 
(2.3)
 
(0.1)
 
(2.1)
 
(1.2)
 
0.1
 
(5.9)
Total
 
10.5
 
(3.2)
 
(0.1)
 
51.8
 
(18.4)
 
2.0
 
42.6
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 AG Annual Report 2024, available under “Annual
 
reporting” at ubs.com/investors, for more information about
previously published disclosures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Liquidity and funding management
 
37
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 AG
 
Annual
 
Report
 
2024,
 
available
 
under
 
“Annual
 
reporting”
 
at
ubs.com/investors
,
 
which
 
provides
 
more
information
 
about
 
UBS AG’s
 
strategy,
 
objectives
 
and
 
governance
 
in
 
connection
 
with
 
liquidity
 
and
 
funding
management.
Liquidity coverage ratio
The quarterly average liquidity
 
coverage ratio (the
 
LCR) of UBS AG
 
consolidated decreased 5.8 percentage points
to 180.3%. The
 
movement in the quarterly
 
average LCR was
 
primarily driven by a
 
decrease in high-quality
 
liquid
assets
 
of
 
USD 12.7bn
 
to
 
USD 318.9bn,
 
mainly
 
reflecting
 
lower
 
cash
 
available
 
due
 
to
 
a
 
decrease
 
in
 
customer
deposits, funding of additional
 
trading assets and lower
 
debt issued measured at
 
amortized cost, partly offset
 
by
higher cash
 
available from
 
lower lending
 
assets and
 
higher proceeds
 
from securities
 
financing transactions.
 
The
average net cash outflows decreased
 
by USD 1.3bn to USD 176.9bn, reflecting higher
 
net inflows from securities
financing transactions, partly offset by higher
 
outflows from capital instruments on lent
 
from UBS Group AG and
customer deposits.
›
Refer to the UBS Group and significant regulated subsidiaries and sub-groups
31 March 2025 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, and to “Liquidity and funding management” in the
“Capital, liquidity and funding, and balance sheet” section of the UBS AG Annual Report 2024, available under
“Annual reporting” at
ubs.com/investors
, for more information about the LCR on a UBS AG consolidated basis
 
Liquidity coverage ratio
USD bn, except where indicated
Average 1Q25
1
Average 4Q24
1
High-quality liquid assets
 
318.9
 
331.6
Net cash outflows
2
 
176.9
 
178.2
Liquidity coverage ratio (%)
3
 
180.3
 
186.1
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
 
UBS AG consolidated decreased 1.3 percentage
points to 122.8%. Available
 
stable funding (ASF) increased
 
by USD 6.7bn to USD 853.7bn,
 
mainly driven by a shift
in the
 
client deposit
 
composition
 
resulting in
 
a more
 
beneficial
 
ASF treatment
 
and higher
 
regulatory capital.
 
Required
stable funding
 
increased by
 
USD 12.7bn to
 
USD 695.2bn, mainly
 
driven by
 
higher lending
 
assets, largely
 
due to
currency effects, partly offset by lower derivative
 
balances.
›
Refer to the UBS Group and significant regulated subsidiaries and sub-groups 31 March 2025 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, and to “Liquidity and funding management” in the
“Capital, liquidity and funding, and balance sheet” section of the UBS AG Annual Report 2024, available under
“Annual reporting” at
ubs.com/investors
, for more information about the NSFR on a UBS AG consolidated basis
Net stable funding ratio
USD bn, except where indicated
31.3.25
31.12.24
Available stable funding
853.7
847.0
Required stable funding
695.2
682.5
Net stable funding ratio (%)
122.8
124.1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Balance sheet and off-balance sheet
 
38
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 AG
 
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 1,547.5bn
 
as of
 
31 March 2025,
 
a decrease
 
of USD 20.6bn
 
compared with
 
31 December
2024.
 
Derivatives and
 
cash collateral
 
receivables on
 
derivative instruments
 
decreased by
 
USD 52.8bn, 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 an USD 18.0bn 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 7.9bn, 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 7.6bn,
 
mainly reflecting purchases
 
of HQLA
portfolio securities. Trading
 
assets increased by
 
USD 6.2bn, 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
 
623.5
 
605.5
 
3
Securities financing transactions at amortized cost
 
101.8
 
118.3
 
(14)
Trading assets
 
165.4
 
159.2
 
4
Derivatives and cash collateral receivables on derivative instruments
 
177.6
 
230.4
 
(23)
Brokerage receivables
 
28.7
 
25.9
 
11
Other financial assets measured at amortized cost
 
66.9
 
59.3
 
13
Other financial assets measured at fair value
2
 
105.3
 
97.4
 
8
Non-financial assets
 
46.9
 
48.8
 
(4)
Total assets
 
1,547.5
 
1,568.1
 
(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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Balance sheet and off-balance sheet
 
39
Balance sheet liabilities (31 March 2025
 
vs 31 December 2024)
Total liabilities were USD 1,450.4bn as
 
of 31 March 2025, a decrease of
 
USD 23.0bn compared with 31 December
2024.
 
Derivatives and cash collateral payables on derivative instruments decreased by USD 42.7bn, predominantly in the
Investment
 
Bank,
 
primarily
 
reflecting
 
the
 
same
 
drivers
 
as
 
on
 
the
 
asset
 
side.
 
Customer
 
deposits
 
decreased
 
by
USD 2.0bn, mainly reflecting
 
net new deposit
 
outflows of USD 14.6bn,
 
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.
The “Liabilities,
 
by product and currency” table in this section provides more information
 
about UBS AG’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
 
747.5
 
749.5
 
0
Funding from UBS Group AG measured at amortized cost
 
111.5
 
107.9
 
3
Debt issued designated at fair value and long-term debt issued measured
 
at amortized cost
2
 
175.1
 
173.1
 
1
Trading liabilities
 
43.1
 
35.2
 
22
Derivatives and cash collateral payables on derivative instruments
 
174.3
 
217.0
 
(20)
Brokerage payables
 
59.9
 
49.0
 
22
Other financial liabilities measured at amortized cost
 
19.4
 
21.8
 
(11)
Other financial liabilities designated at fair value
 
32.8
 
34.0
 
(4)
Non-financial liabilities
 
13.5
 
17.0
 
(21)
Total liabilities
 
1,450.4
 
1,473.4
 
(2)
Share capital
 
0.4
 
0.4
 
0
Share premium
 
84.7
 
84.8
 
0
Retained earnings
 
9.1
 
7.8
 
16
Other comprehensive income
3
 
2.3
 
1.0
 
134
Total equity attributable to shareholders
 
96.6
 
94.0
 
3
Equity attributable to non-controlling interests
 
0.6
 
0.7
 
(14)
Total equity
 
97.1
 
94.7
 
3
Total liabilities and equity
 
1,547.5
 
1,568.1
 
(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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
 
sheet | Balance sheet and off-balance sheet
 
40
Equity (31 March 2025 vs 31 December 2024)
Equity attributable to shareholders increased
 
by USD 2,550m to USD 96,553m as of
 
31 March 2025.
The
 
increase
 
of
 
USD 2,550m
 
was
 
mainly
 
driven
 
by
 
total
 
comprehensive income
 
attributable
 
to
 
shareholders
 
of
USD 2,635m, reflecting a net
 
profit of USD 1,028m
 
and other comprehensive income
 
(OCI) of USD 1,607m. OCI
mainly included OCI related to foreign currency translation of USD 794m, cash flow hedge OCI of USD 545m and
own credit on financial liabilities designated at
 
fair value of USD 233m.
The 2024
 
dividend distribution
 
to UBS
 
Group AG,
 
as approved
 
by the
 
2025 Annual
 
General Meeting
 
of shareholders
(the AGM), reduced equity
 
attributable to shareholders
 
by USD 6,500m in April 2025.
 
The AGM also approved
 
the
appropriation of USD 6,500m to
 
a special dividend
 
reserve with no
 
change to equity.
 
The decision on
 
the special
dividend
 
payment
 
is
 
intended
 
to
 
be
 
made
 
at
 
an
 
Extraordinary
 
General
 
Meeting
 
in
 
the
 
second
 
half
 
of
 
2025,
considering any proposed requirements
 
from Switzerland’s ongoing review of its capital
 
regime.
›
Refer to the “UBS AG consolidated 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
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
747.5
749.5
302.6
312.5
307.0
298.2
69.8
71.5
of which: demand deposits
226.0
225.0
54.8
55.7
110.4
108.7
33.5
33.2
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
291.4
300.3
172.8
179.9
45.6
46.1
32.3
34.3
Funding from UBS Group AG measured at amortized cost
111.5
107.9
75.2
74.4
2.7
2.6
30.2
27.6
Debt issued designated at fair value and long-term debt issued measured
 
at amortized
cost
2
175.1
173.1
86.0
86.2
41.2
40.5
31.5
30.4
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
174.3
217.0
145.6
183.4
3.3
4.4
16.5
18.3
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
 
19.4
21.8
10.5
12.9
4.2
3.2
2.3
1.9
Other financial liabilities designated at fair value
32.8
34.0
8.7
6.5
0.1
0.1
3.7
5.6
Non-financial liabilities
13.5
17.0
6.7
8.7
2.4
3.2
2.5
2.5
Total liabilities
1,450.4
1,473.4
729.9
767.5
374.0
363.3
187.6
185.8
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.
Committed unconditionally revocable
 
credit lines
 
decreased by
 
USD 4.0bn, mainly
 
driven by
 
a decrease
 
in credit
lines provided across
 
business divisions, partly offset by
 
currency effects. 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
 
144.9
 
148.9
 
(3)
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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | UBS AG
 
interim consolidated financial statements
 
(unaudited)
 
42
UBS 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
4
 
6,643
 
7,501
 
6,240
Interest expense from financial instruments measured at
 
amortized cost
4
 
(6,909)
 
(7,793)
 
(6,052)
Net interest income from financial instruments measured
 
at fair value through profit or loss and other
4
 
1,594
 
1,882
 
618
Net interest income
4
 
1,328
 
1,590
 
806
Other net income from financial instruments measured
 
at fair value through profit or loss
 
3,924
 
3,150
 
2,945
Fee and commission income
5
 
7,280
 
7,024
 
5,607
Fee and commission expense
5
 
(650)
 
(670)
 
(458)
Net fee and commission income
5
 
6,630
 
6,354
 
5,148
Other income
6
 
281
 
223
 
209
Total revenues
 
12,163
 
11,317
 
9,108
Credit loss expense / (release)
9
 
124
 
241
 
52
Personnel expenses
7
 
5,910
 
5,212
 
4,161
General and administrative expenses
8
 
4,077
 
4,964
 
2,985
Depreciation, amortization and impairment of non-financial
 
assets
 
714
 
840
 
531
Operating expenses
 
10,701
 
11,017
 
7,677
Operating profit / (loss) before tax
 
1,339
 
59
 
1,379
Tax expense / (benefit)
 
303
 
313
 
366
Net profit / (loss)
 
1,035
 
(254)
 
1,014
Net profit / (loss) attributable to non-controlling interests
 
7
 
2
 
8
Net profit / (loss) attributable to shareholders
 
1,028
 
(257)
 
1,006
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | UBS AG
 
interim consolidated financial statements
 
(unaudited)
 
43
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)
 
1,028
 
(257)
 
1,006
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
 
1,307
 
(3,416)
 
(1,565)
Effective portion of changes in fair value of hedging instruments
 
designated as net investment hedges, before tax
 
(511)
 
1,463
 
807
Foreign currency translation differences on foreign operations reclassified to the
 
income statement
 
0
 
11
 
0
Effective portion of changes in fair value of hedging instruments
 
designated as net investment hedges reclassified
 
to
 
the income statement
 
0
 
(12)
 
1
Income tax relating to foreign currency translations, including the effect of
 
net investment hedges
 
(2)
 
3
 
13
Subtotal foreign currency translation, net of tax
 
794
 
(1,951)
 
(744)
Financial assets measured at fair value through other comprehensive income
Net unrealized gains / (losses), before tax
 
(3)
 
(1)
 
(1)
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)
 
(1)
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
 
(1,367)
 
(1,076)
Net (gains) / losses reclassified to the income statement from
 
equity
 
322
 
400
 
492
Income tax relating to cash flow hedges
 
(125)
 
181
 
117
Subtotal cash flow hedges, net of tax
 
545
 
(785)
 
(467)
Cost of hedging
Cost of hedging, before tax
 
20
 
(53)
 
(6)
Income tax relating to cost of hedging
 
 
0
 
0
 
0
Subtotal cost of hedging, net of tax
 
20
 
(53)
 
(6)
Total other comprehensive income that may be reclassified to the income statement, net
 
of tax
 
1,356
 
(2,790)
 
(1,219)
Other comprehensive income that will not be reclassified to the income
 
statement
Defined benefit plans
Gains / (losses) on defined benefit plans, before tax
 
18
 
(56)
 
36
Income tax relating to defined benefit plans
 
0
 
20
 
(8)
Subtotal defined benefit plans, net of tax
 
19
 
(37)
 
28
Own credit on financial liabilities designated at fair value
Gains / (losses) from own credit on financial liabilities designated
 
at fair value, before tax
 
233
 
145
 
19
Income tax relating to own credit on financial liabilities designated
 
at fair value
 
(1)
 
(2)
 
0
Subtotal own credit on financial liabilities designated at
 
fair value, net of tax
 
233
 
144
 
19
Total other comprehensive income that will not be reclassified to the income statement,
 
net of tax
 
251
 
107
 
47
Total other comprehensive income
 
1,607
 
(2,684)
 
(1,171)
Total comprehensive income attributable to shareholders
 
2,635
 
(2,940)
 
(166)
Comprehensive income attributable to non-controlling
 
interests
Net profit / (loss)
 
7
 
2
 
8
Total other comprehensive income that will not be reclassified to the income statement,
 
net of tax
 
15
 
(37)
 
(12)
Total comprehensive income attributable to non-controlling interests
 
22
 
(35)
 
(4)
Total comprehensive income
 
Net profit / (loss)
 
1,035
 
(254)
 
1,014
Other comprehensive income
 
 
1,622
 
(2,721)
 
(1,183)
of which: other comprehensive income that may be reclassified
 
to the income statement
 
1,356
 
(2,790)
 
(1,219)
of which: other comprehensive income that will not be reclassified
 
to the income statement
 
266
 
70
 
36
Total comprehensive income
 
 
2,657
 
(2,975)
 
(169)
1 Refer to the “UBS AG consolidated performance” section of this report for more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | UBS AG
 
interim consolidated financial statements
 
(unaudited)
 
44
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
 
20,285
 
18,111
Receivables from securities financing transactions measured at amortized
 
cost
 
101,784
 
118,302
Cash collateral receivables on derivative instruments
11
 
38,994
 
43,959
Loans and advances to customers
9
 
603,233
 
587,347
Other financial assets measured at amortized cost
12
 
66,864
 
59,279
Total financial assets measured at amortized cost
 
1,062,530
 
1,050,326
Financial assets at fair value held for trading
10
 
165,437
 
159,223
of which: assets pledged as collateral that may be sold or repledged
 
by counterparties
 
48,262
 
38,532
Derivative financial instruments
10, 11
 
138,620
 
186,435
Brokerage receivables
10
 
28,747
 
25,858
Financial assets at fair value not held for trading
10
 
102,075
 
95,203
Total financial assets measured at fair value through profit or loss
 
434,879
 
466,719
Financial assets measured at fair value through other comprehensive income
10
 
3,216
 
2,195
Investments in associates
 
2,495
 
2,306
Property, equipment and software
 
12,024
 
12,091
Goodwill and intangible assets
 
6,691
 
6,661
Deferred tax assets
 
10,519
 
10,481
Other non-financial assets
12
 
15,134
 
17,282
Total assets
 
1,547,489
 
1,568,060
Liabilities
Amounts due to banks
 
27,794
 
23,347
Payables from securities financing transactions measured at amortized cost
 
14,992
 
14,824
Cash collateral payables on derivative instruments
11
 
32,037
 
36,366
Customer deposits
 
747,452
 
749,476
Funding from UBS Group AG measured at amortized cost
13
 
111,457
 
107,918
Debt issued measured at amortized cost
15
 
98,259
 
101,104
Other financial liabilities measured at amortized cost
12
 
19,421
 
21,762
Total financial liabilities measured at amortized cost
 
1,051,412
 
1,054,796
Financial liabilities at fair value held for trading
10
 
43,099
 
35,247
Derivative financial instruments
10, 11
 
142,230
 
180,678
Brokerage payables designated at fair value
10
 
59,921
 
49,023
Debt issued designated at fair value
10, 14
 
107,393
 
102,567
Other financial liabilities designated at fair value
10, 12
 
32,792
 
34,041
Total financial liabilities measured at fair value through profit or loss
 
385,436
 
401,555
Provisions
16
 
5,495
 
5,131
Other non-financial liabilities
12
 
8,024
 
11,911
Total liabilities
 
1,450,367
 
1,473,394
Equity
Share capital
 
386
 
386
Share premium
 
84,693
 
84,777
Retained earnings
 
9,128
 
7,838
Other comprehensive income recognized directly in equity, net of tax
 
2,346
 
1,002
Equity attributable to shareholders
 
96,553
 
94,003
Equity attributable to non-controlling interests
 
569
 
662
Total equity
 
97,123
 
94,666
Total liabilities and equity
 
1,547,489
 
1,568,060
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | UBS AG
 
interim consolidated financial statements
 
(unaudited)
 
45
Statement of changes in equity
USD m
Share
capital and
share
premium
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
 
85,163
 
7,838
 
1,002
 
3,686
 
(2,585)
 
94,003
Premium on shares issued and warrants exercised
 
0
 
0
Tax (expense) / benefit
 
9
 
9
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)
 
(92)
 
0
 
(92)
Total comprehensive income for the period
 
1,279
 
1,356
 
794
 
545
 
2,635
of which: net profit / (loss)
 
1,028
 
1,028
of which: OCI, net of tax
 
251
 
1,356
 
794
 
545
 
1,607
Balance as of 31 March 2025
2
 
85,079
 
9,128
 
2,346
 
4,480
 
(2,051)
 
96,553
Non-controlling interests as of 31 March 2025
 
569
Total equity as of 31 March 2025
 
97,123
Balance as of 1 January 2024
2
 
25,024
 
28,235
 
1,974
 
4,947
 
(2,961)
 
55,234
Premium on shares issued and warrants exercised
 
0
 
0
Tax (expense) / benefit
 
5
 
5
Translation effects recognized directly in retained earnings
 
(60)
 
60
 
60
 
0
Share of changes in retained earnings of associates and
 
joint ventures
 
(1)
 
(1)
New consolidations / (deconsolidations) and other increases
 
/ (decreases)
 
(26)
 
(26)
Total comprehensive income for the period
 
1,053
 
(1,219)
 
(744)
 
(467)
 
(166)
of which: net profit / (loss)
 
1,006
 
1,006
of which: OCI, net of tax
 
47
 
(1,219)
 
(744)
 
(467)
 
(1,171)
Balance as of 31 March 2024
2
 
25,003
 
29,228
 
815
 
4,203
 
(3,368)
 
55,046
Non-controlling interests as of 31 March 2024
 
317
Total equity as of 31 March 2024
 
55,363
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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | UBS AG
 
interim consolidated financial statements
 
(unaudited)
 
46
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)
 
1,035
 
1,014
Non-cash items included in net profit and other adjustments
Depreciation, amortization and impairment of non-financial
 
assets
 
714
 
531
Credit loss expense / (release)
 
124
 
52
Share of net (profit) / loss of associates and joint ventures
 
and impairment related to associates
 
(136)
 
(15)
Deferred tax expense / (benefit)
 
(128)
 
(72)
Net loss / (gain) from investing activities
 
(123)
 
105
Net loss / (gain) from financing activities
 
1,942
 
(2,371)
Other net adjustments
1
 
(7,432)
 
10,212
Net change in operating assets and liabilities
1
Amounts due from banks and amounts due to banks
 
4,245
 
17,620
Receivables from securities financing transactions measured at amortized
 
cost
 
18,365
 
(1,242)
Payables from securities financing transactions measured at amortized cost
 
670
 
74
Cash collateral on derivative instruments
 
733
 
(6,031)
Loans and advances to customers
 
(4,143)
 
(1,380)
Customer deposits
 
(14,668)
 
(3,041)
Financial assets and liabilities at fair value held for trading and derivative financial
 
instruments
 
14,468
 
(12,477)
Brokerage receivables and payables
 
7,897
 
2,400
Financial assets at fair value not held for trading and other financial assets
 
and liabilities
 
(9,730)
 
(534)
Provisions and other non-financial assets and liabilities
 
(1,932)
 
(1,728)
Income taxes paid, net of refunds
 
(189)
 
(479)
Net cash flow from / (used in) operating activities
 
11,710
2
 
2,638
Cash flow from / (used in) investing activities
Disposal of subsidiaries, business, associates and intangible assets
 
354
3
Purchase of property, equipment and software
 
(425)
 
(292)
Disposal of property, equipment and software
 
26
 
0
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)
 
(850)
Disposal and redemption of debt securities measured at amortized
 
cost
 
1,883
 
2,002
Net cash flow from / (used in) investing activities
 
(7,031)
 
1,409
Cash flow from / (used in) financing activities
Net issuance (repayment) of short-term debt measured at amortized
 
cost
 
(507)
 
(4,657)
Issuance of debt designated at fair value and long-term debt measured
 
at amortized cost
4
 
35,185
 
29,798
Repayment of debt designated at fair value and long-term debt measured
 
at amortized cost
4
 
(33,063)
 
(28,918)
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)
Net cash flows from other financing activities
 
(316)
 
(128)
Net cash flow from / (used in) financing activities
 
580
 
(2,905)
Total cash flow
Cash and cash equivalents at the beginning of the period
 
243,359
 
190,469
Net cash flow from / (used in) operating, investing and financing
 
activities
 
5,259
 
1,143
Effects of exchange rate differences on cash and cash equivalents
1
 
5,035
 
(7,708)
Cash and cash equivalents at the end of the period
6
 
253,653
 
183,903
of which: cash and balances at central banks
6
 
231,370
 
163,378
of which: amounts due from banks
6
 
18,768
 
12,836
of which: money market paper
6,7
 
3,515
 
7,689
Additional information
Net cash flow from / (used in) operating activities includes:
Interest received in cash
 
10,820
 
9,596
Interest paid in cash
 
10,505
 
8,602
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 within Non-core and Legacy.
 
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 AG
 
Annual Report 2024 for more information.
 
4 Includes funding from UBS Group
 
AG measured at amortized cost (recognized
 
on the balance sheet in Funding
 
from UBS
Group AG measured at amortized cost) and measured at fair value (recognized on the balance sheet in Other financial liabiliti
 
es designated at fair value).
 
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 395m;
31 March 2024: USD 170m), 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 245m).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
47
Notes to the UBS AG interim consolidated financial
statements (unaudited)
Note 1
 
Basis of accounting
Basis of preparation
The consolidated financial statements (the financial statements) of UBS AG and its subsidiaries (together, UBS AG)
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 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 AG’s
 
audited
consolidated financial statements in
 
the UBS AG 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
 
UBS AG’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 2,
 
as well
 
as “Note 1a
 
Material
accounting policies” in the “Consolidated financial
 
statements” section of the UBS AG Annual
 
Report 2024.
Currency translation rates
The following table shows the rates of the
 
main currencies used to translate the
 
financial information of UBS AG’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 UBS
 
AG with the same functional currency for each month. Weighted average rates for individual business
 
divisions
may deviate from the weighted average rates for UBS AG.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
48
Note 2
 
Accounting for the merger of UBS AG and
 
Credit Suisse AG
Merger of UBS AG and Credit Suisse AG
The merger of UBS AG and Credit Suisse AG effected on 31 May 2024
 
with no consideration payable by UBS AG
constituted a business combination
 
under common control.
 
For details of the accounting for
 
the merger, including
accounting
 
policies
 
applicable
 
to
 
business
 
combinations
 
under
 
common
 
control,
 
refer
 
to
 
“Note
 
1a
 
Material
accounting
 
policies”
 
and
 
“Note 2
 
Accounting
 
for
 
the
 
merger
 
of
 
UBS AG
 
and
 
Credit
 
Suisse AG”
 
in
 
the
“Consolidated financial statements” section of
 
the UBS AG Annual Report 2024.
Comparability
The income statement,
 
the statement of
 
comprehensive income, the statement
 
of cash flows and
 
the statement of
changes in
 
equity for
 
the first
 
quarter of
 
2025 and
 
the income
 
statement and
 
the statement
 
of comprehensive
income for
 
the fourth
 
quarter of
 
2024 are
 
based entirely
 
on consolidated
 
data following
 
the merger
 
of UBS AG
and Credit Suisse AG.
 
The income
 
statement, the
 
statement of
 
comprehensive income,
 
the statement
 
of cash
 
flows
and the statement of changes in equity for the first
 
quarter of 2024 include pre-merger UBS AG
 
data only.
Balance
 
sheet
 
information
 
as
 
of
 
31 March
 
2025
 
and
 
31 December
 
2024
 
includes
 
post-merger
 
consolidated
information.
 
Note 3
 
Segment reporting
UBS AG’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 UBS AG.
›
Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2024 for more information
about UBS AG’s reporting segments.
Segment reporting
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Non-core and
Legacy
Group
 
Items
UBS AG
For the quarter ended 31 March 2025
Net interest income
 
1,589
 
1,059
 
(15)
 
(885)
 
(35)
 
(385)
 
1,328
Non-interest income
 
4,703
 
946
 
756
 
3,938
 
155
 
338
 
10,836
Total revenues
 
6,293
 
2,005
 
741
 
3,052
 
119
 
(46)
 
12,163
Credit loss expense / (release)
 
8
 
58
 
0
 
49
 
10
 
(1)
 
124
Operating expenses
 
5,069
 
1,526
 
603
 
2,455
 
748
 
299
 
10,701
Operating profit / (loss) before tax
 
1,216
 
421
 
137
 
548
 
(639)
 
(344)
 
1,339
Tax expense / (benefit)
 
303
Net profit / (loss)
 
1,035
As of 31 March 2025
Total assets
 
557,012
 
445,289
 
22,590
 
455,886
 
47,829
 
18,884
 
1,547,489
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Non-core and
Legacy
Group
Functions
UBS AG
For the quarter ended 31 March 2024
Net interest income
 
1,204
 
772
 
(14)
 
(797)
 
14
 
(374)
 
806
Non-interest income
 
3,714
 
606
 
523
 
3,184
 
7
 
268
 
8,302
Total revenues
 
4,918
 
1,378
 
509
 
2,388
 
21
 
(106)
 
9,108
Credit loss expense / (release)
 
9
 
10
 
0
 
32
 
0
 
1
 
52
Operating expenses
 
3,975
 
809
 
459
 
2,083
 
138
 
212
 
7,677
Operating profit / (loss) before tax
 
935
 
558
 
50
 
272
 
(118)
 
(319)
 
1,379
Tax expense / (benefit)
 
366
Net profit / (loss)
 
1,014
As of 31 December 2024
Total assets
 
560,194
 
449,224
 
22,291
 
453,078
 
67,696
 
15,577
 
1,568,060
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
49
Note 4
 
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
 
5,767
 
6,623
 
5,438
Interest income from securities financing transactions measured
 
at amortized cost
2
 
839
 
822
 
988
Interest income from other financial instruments measured
 
at amortized cost
 
360
 
350
 
323
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)
 
(537)
Total interest income from financial instruments measured at amortized cost and fair
 
value through other comprehensive income
 
6,643
 
7,501
 
6,240
Interest expense on loans and deposits
3
 
5,558
 
6,697
 
4,836
Interest expense on securities financing transactions measured
 
at amortized cost
4
 
418
 
464
 
407
Interest expense on debt issued
 
899
 
592
 
787
Interest expense on lease liabilities
 
35
 
40
 
22
Total interest expense from financial instruments measured at amortized cost
 
6,909
 
7,793
 
6,052
Total net interest income from financial instruments measured at amortized cost and fair
 
value through other comprehensive
income
 
(266)
 
(292)
 
188
Net interest income from financial instruments measured at fair value through profit
 
or loss and other
 
1,594
 
1,882
 
618
Total net interest income
 
1,328
 
1,590
 
806
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,
 
customer deposits, and funding from
 
UBS Group AG measured at
 
amortized cost,
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.
Note 5
 
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
 
219
 
206
 
224
M&A and corporate finance fees
 
244
 
277
 
234
Brokerage fees
 
1,376
 
1,170
 
1,019
Investment fund fees
 
1,543
 
1,558
 
1,201
Portfolio management and related services
 
3,102
 
3,083
 
2,456
Other
 
796
 
729
 
472
Total fee and commission income
1
 
7,280
 
7,024
 
5,607
of which: recurring
 
4,607
 
4,628
 
3,668
of which: transaction-based
 
2,639
 
2,351
 
1,915
of which: performance-based
 
33
 
45
 
24
Fee and commission expense
 
650
 
670
 
458
Net fee and commission income
 
6,630
 
6,354
 
5,148
1 Reflects third-party fee and commission income for
 
the first quarter of 2025 of USD 4,429m for
 
Global Wealth Management (fourth quarter of 2024:
 
USD 4,193m; first quarter of 2024: USD 3,506m),
 
USD 735m
for Personal & Corporate
 
Banking (fourth quarter of
 
2024: USD 749m; first quarter
 
of 2024: USD 490m),
 
USD 939m for Asset Management
 
(fourth quarter of 2024:
 
USD 977m; first quarter of
 
2024: USD 671m),
USD 1,134m for the Investment Bank
 
(fourth quarter of 2024:
 
USD 1,009m; first quarter of 2024:
 
USD 940m), USD 15m for Group Items
 
(fourth quarter of 2024:
 
USD 8m; first quarter of 2024:
 
negative USD 3m)
and USD 29m for Non-core and Legacy (fourth quarter of 2024: USD 88m; first quarter of 2024: USD 3m).
 
Note 6
 
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
 
(13)
2
 
13
 
(1)
Net gains / (losses) from disposals of investments in associates
 
and joint ventures
 
3
 
2
 
0
Share of net profit / (loss) of associates and joint ventures
 
136
3
 
(33)
 
15
Total
 
126
 
(18)
 
15
Income from properties
4
 
3
 
4
 
5
Net gains / (losses) from properties held for sale
 
8
 
1
 
0
Income from shared services provided to UBS Group AG or its subsidiaries
 
167
 
181
 
169
Other
 
(22)
 
54
 
20
Total other income
 
281
 
223
 
209
1 Includes foreign exchange gains / (losses) reclassified from
 
other comprehensive income related to the disposal or
 
closure of foreign operations.
 
2 Includes a loss of USD 11m 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
 
AG Annual
 
Report 2024 for
 
more information.
 
3 Includes a
 
gain of USD
 
64m related to
 
UBS AG’s
 
share of
 
income
recorded by Swisscard
 
for the sale
 
of the Credit
 
Suisse card portfolios
 
to UBS AG.
 
Refer to “Note
 
29 Changes in
 
organization and acquisitions
 
and disposals of
 
subsidiaries and businesses”
 
in the “Consolidated
financial statements” section of the UBS AG Annual Report 2024 for more information.
 
4 Includes rent received from third parties.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
50
Note 7
 
Personnel expenses
Personnel expenses
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Salaries and variable compensation
1
 
5,129
 
4,473
 
3,621
of which: variable compensation – financial advisors
2
 
1,409
 
1,400
 
1,267
Contractors
 
37
 
32
 
21
Social security
 
310
 
286
 
208
Post-employment benefit plans
 
257
 
200
 
186
Other personnel expenses
 
176
 
221
 
125
Total personnel expenses
 
5,910
 
5,212
 
4,161
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.
Note 8
 
General and administrative expenses
General and administrative expenses
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Outsourcing costs
 
197
 
262
 
121
Technology costs
 
255
 
286
 
163
Consulting, legal and audit fees
 
257
 
414
 
202
Real estate and logistics costs
 
203
 
245
 
130
Market data services
 
152
 
164
 
106
Marketing and communication
 
76
 
130
 
66
Travel and entertainment
 
66
 
93
 
54
Litigation, regulatory and similar matters
1
 
196
 
393
 
8
Other
 
2,676
2
 
2,979
 
2,137
of which: shared services costs charged by UBS Group AG or its subsidiaries
 
2,231
 
2,502
 
1,933
Total general and administrative expenses
 
4,077
 
4,964
 
2,985
1 Reflects the net increase / (decrease) in provisions
 
for litigation, regulatory and similar matters recognized in the income
 
statement. Refer to Note 16b for more information.
 
2 Includes a USD 180m expense related
to payment to Swisscard for the
 
sale of the Credit Suisse
 
card portfolios to UBS AG.
 
Refer to “Note 29 Changes
 
in organization and acquisitions and
 
disposals of subsidiaries and businesses”
 
in the “Consolidated
financial statements” section of the UBS AG Annual Report 2024 for more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
51
Note 9
 
Expected credit loss measurement
a) Credit loss expense / release
 
Total net credit loss expenses in the first quarter
 
of 2025 were USD 124m, reflecting USD 21m net releases related
to performing positions and USD 145m 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 116m,
 
of which USD 52m
 
was in Personal
 
& Corporate Banking,
 
USD 54m
in the Investment Bank and USD 10m
 
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
Total
For the quarter ended 31.3.25
Global Wealth Management
 
(7)
 
15
 
8
Personal & Corporate Banking
 
(8)
 
66
 
58
Asset Management
 
0
 
0
 
0
Investment Bank
 
(5)
 
54
 
49
Non-core and Legacy
 
0
 
10
 
10
Group Items
 
(1)
 
0
 
(1)
Total
 
(21)
 
145
 
124
For the quarter ended 31.12.24
Global Wealth Management
 
(26)
 
15
 
(11)
Personal & Corporate Banking
 
(24)
 
213
 
189
Asset Management
 
0
 
0
 
0
Investment Bank
 
32
 
30
 
62
Non-core and Legacy
 
(2)
 
4
 
2
Group Items
 
(1)
 
1
 
0
Total
 
(21)
 
262
 
241
For the quarter ended 31.3.24
Global Wealth Management
 
2
 
7
 
9
Personal & Corporate Banking
 
(12)
 
22
 
10
Asset Management
 
0
 
0
 
0
Investment Bank
 
10
 
22
 
32
Non-core and Legacy
 
0
 
0
 
0
Group Items
 
1
 
0
 
1
Total
 
1
 
51
 
52
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
52
Note 9
 
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 AG
 
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 AG 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 AG
 
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 AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
53
Note 9
 
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.
No
 
purchased
 
credit-impaired
 
financial
 
assets
 
were
 
recognized
 
in
 
the
 
first
 
quarter
 
of
 
2025.
 
Originated
 
credit-
impaired financial assets were not material
 
and are not presented in the table below.
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
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
 
231,370
 
231,207
 
163
 
0
 
(240)
 
0
 
(240)
 
0
Amounts due from banks
 
20,285
 
20,248
 
37
 
0
 
(11)
 
(5)
 
(4)
 
(1)
Receivables from securities financing transactions measured at amortized
 
cost
 
101,784
 
101,784
 
0
 
0
 
(3)
 
(3)
 
0
 
0
Cash collateral receivables on derivative instruments
 
38,994
 
38,994
 
0
 
0
 
0
 
0
 
0
 
0
Loans and advances to customers
 
603,233
 
576,017
 
22,744
 
4,471
 
(2,955)
 
(289)
 
(300)
 
(2,366)
of which: Private clients with mortgages
 
258,849
 
246,480
 
10,943
 
1,426
 
(143)
 
(39)
 
(50)
 
(53)
of which: Real estate financing
 
84,915
 
79,744
 
4,923
 
247
 
(105)
 
(26)
 
(32)
 
(48)
of which: Large corporate clients
 
25,200
 
22,015
 
2,120
 
1,065
 
(915)
 
(82)
 
(111)
 
(722)
of which: SME clients
 
22,033
 
18,578
 
2,318
 
1,137
 
(1,030)
 
(65)
 
(67)
 
(897)
of which: Lombard
 
153,007
 
152,909
 
1
 
97
 
(113)
 
(8)
 
0
 
(105)
of which: Credit cards
 
2,025
 
1,564
 
420
 
41
 
(44)
 
(8)
 
(11)
 
(26)
of which: Commodity trade finance
 
4,331
 
4,311
 
12
 
8
 
(123)
 
(8)
 
0
 
(115)
of which: Ship / aircraft financing
 
8,221
 
7,905
 
316
 
0
 
(19)
 
(16)
 
(4)
 
0
of which: Consumer financing
 
2,617
 
2,403
 
109
 
106
 
(125)
 
(16)
 
(19)
 
(90)
Other financial assets measured at amortized cost
 
66,864
 
66,110
 
560
 
194
 
(127)
 
(24)
 
(8)
 
(96)
of which: Loans to financial advisors
 
2,738
 
2,600
 
48
 
89
 
(40)
 
(3)
 
(1)
 
(36)
Total financial assets measured at amortized cost
 
1,062,530
 
1,034,361
 
23,505
 
4,665
 
(3,336)
 
(321)
 
(553)
 
(2,463)
Financial assets measured at fair value through other comprehensive income
 
3,216
 
3,216
 
0
 
0
 
0
 
0
 
0
 
0
Total on-balance sheet financial assets in scope of ECL requirements
2
 
1,065,747
 
1,037,577
 
23,505
 
4,665
 
(3,336)
 
(321)
 
(553)
 
(2,463)
Total exposure
ECL provisions
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Guarantees
 
42,588
 
40,620
 
1,800
 
168
 
(57)
 
(13)
 
(20)
 
(24)
of which: Large corporate clients
 
7,103
 
6,487
 
530
 
87
 
(14)
 
(6)
 
(4)
 
(4)
of which: SME clients
 
2,885
 
2,529
 
316
 
39
 
(22)
 
(3)
 
(15)
 
(4)
of which: Financial intermediaries and hedge funds
 
 
25,139
 
24,249
 
890
 
0
 
(1)
 
(1)
 
0
 
0
of which: Lombard
 
3,591
 
3,561
 
0
 
30
 
(3)
 
(1)
 
0
 
(2)
of which: Commodity trade finance
 
2,160
 
2,158
 
1
 
0
 
(1)
 
(1)
 
0
 
0
Irrevocable loan commitments
 
79,463
 
75,299
 
3,906
 
257
 
(233)
 
(116)
 
(81)
 
(36)
of which: Large corporate clients
 
48,349
 
45,150
 
3,033
 
165
 
(161)
 
(84)
 
(59)
 
(18)
Forward starting reverse repurchase and securities borrowing agreements
 
18,178
 
18,178
 
0
 
0
 
0
 
0
 
0
 
0
Unconditionally revocable loan commitments
 
144,907
 
141,263
 
3,442
 
202
 
(55)
 
(41)
 
(14)
 
0
of which: Real estate financing
 
7,384
 
7,030
 
354
 
0
 
(3)
 
(4)
 
1
 
0
of which: Large corporate clients
 
13,497
 
12,751
 
722
 
23
 
(15)
 
(8)
 
(5)
 
(2)
of which: SME clients
 
10,902
 
9,952
 
801
 
149
 
(23)
 
(18)
 
(5)
 
0
of which: Lombard
 
72,767
 
72,757
 
8
 
2
 
0
 
0
 
0
 
0
of which: Credit cards
 
10,285
 
9,815
 
467
 
3
 
(8)
 
(6)
 
(2)
 
0
Irrevocable committed prolongation of existing loans
 
4,165
 
4,162
 
2
 
2
 
(3)
 
(3)
 
0
 
0
Total off-balance sheet financial instruments and other credit lines
2
 
289,302
 
279,523
 
9,150
 
629
 
(348)
 
(172)
 
(115)
 
(61)
Total allowances and provisions
2
 
(3,685)
 
(493)
 
(668)
 
(2,524)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL
 
allowances.
 
2 Refer to Note 2 for more information about the merger of UBS AG
and Credit Suisse AG.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
54
Note 9
 
Expected credit loss measurement (continued)
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.12.24
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
 
223,329
 
223,201
 
128
 
0
 
(186)
 
0
 
(186)
 
0
Amounts due from banks
 
18,111
 
17,912
 
198
 
0
 
(42)
 
(1)
 
(5)
 
(36)
Receivables from securities financing transactions measured at amortized
 
cost
 
118,302
 
118,302
 
0
 
0
 
(2)
 
(2)
 
0
 
0
Cash collateral receivables on derivative instruments
 
43,959
 
43,959
 
0
 
0
 
0
 
0
 
0
 
0
Loans and advances to customers
 
587,347
 
560,531
 
22,309
 
4,506
 
(2,830)
 
(276)
 
(323)
 
(2,230)
of which: Private clients with mortgages
 
251,955
 
241,690
 
9,009
 
1,256
 
(166)
 
(46)
 
(70)
 
(50)
of which: Real estate financing
 
83,780
 
79,480
 
4,071
 
229
 
(100)
 
(24)
 
(27)
 
(49)
of which: Large corporate clients
 
25,599
 
21,073
 
3,493
 
1,033
 
(828)
 
(72)
 
(123)
 
(632)
of which: SME clients
 
21,002
 
17,576
 
2,293
 
1,133
 
(963)
 
(55)
 
(47)
 
(860)
of which: Lombard
 
147,714
 
147,326
 
266
 
122
 
(107)
 
(6)
 
0
 
(101)
of which: Credit cards
 
1,978
 
1,533
 
406
 
39
 
(41)
 
(6)
 
(11)
 
(25)
of which: Commodity trade finance
 
4,204
 
4,089
 
106
 
9
 
(122)
 
(9)
 
0
 
(113)
of which: Ship / aircraft financing
 
8,058
 
7,136
 
922
 
0
 
(31)
 
(14)
 
(16)
 
0
of which: Consumer financing
 
2,814
 
2,468
 
114
 
232
 
(137)
 
(15)
 
(19)
 
(102)
Other financial assets measured at amortized cost
 
59,279
 
58,645
 
439
 
194
 
(135)
 
(25)
 
(7)
 
(103)
of which: Loans to financial advisors
 
2,723
 
2,568
 
59
 
95
 
(41)
 
(4)
 
(1)
 
(37)
Total financial assets measured at amortized cost
 
1,050,326
 
1,022,550
 
23,074
 
4,701
 
(3,195)
 
(304)
 
(521)
 
(2,369)
Financial assets measured at fair value through other comprehensive income
 
2,195
 
2,195
 
0
 
0
 
0
 
0
 
0
 
0
Total on-balance sheet financial assets in scope of ECL requirements
2
 
1,052,521
 
1,024,746
 
23,074
 
4,701
 
(3,195)
 
(304)
 
(521)
 
(2,369)
Total exposure
ECL provisions
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Guarantees
 
40,280
 
38,860
 
1,242
 
178
 
(61)
 
(16)
 
(24)
 
(22)
of which: Large corporate clients
 
7,818
 
7,098
 
635
 
85
 
(18)
 
(6)
 
(9)
 
(2)
of which: SME clients
 
2,524
 
2,074
 
393
 
57
 
(27)
 
(5)
 
(15)
 
(7)
of which: Financial intermediaries and hedge funds
 
 
21,590
 
21,449
 
141
 
0
 
(1)
 
(1)
 
0
 
0
of which: Lombard
 
3,709
 
3,652
 
24
 
33
 
(4)
 
(1)
 
0
 
(3)
of which: Commodity trade finance
 
2,678
 
2,676
 
2
 
0
 
(1)
 
(1)
 
0
 
0
Irrevocable loan commitments
 
79,579
 
75,158
 
4,178
 
243
 
(192)
 
(105)
 
(61)
 
(26)
of which: Large corporate clients
 
47,381
 
43,820
 
3,393
 
168
 
(155)
 
(91)
 
(54)
 
(10)
Forward starting reverse repurchase and securities borrowing agreements
 
24,896
 
24,896
 
0
 
0
 
0
 
0
 
0
 
0
Unconditionally revocable loan commitments
 
148,900
 
146,496
 
2,149
 
255
 
(75)
 
(59)
 
(17)
 
0
of which: Real estate financing
 
7,674
 
7,329
 
345
 
0
 
(6)
 
(4)
 
(2)
 
0
of which: Large corporate clients
 
14,692
 
14,091
 
584
 
17
 
(22)
 
(14)
 
(7)
 
(2)
of which: SME clients
 
9,812
 
9,289
 
333
 
190
 
(34)
 
(28)
 
(6)
 
0
of which: Lombard
 
73,267
 
73,181
 
84
 
1
 
0
 
0
 
0
 
0
of which: Credit cards
 
10,074
 
9,604
 
467
 
3
 
(8)
 
(6)
 
(2)
 
0
Irrevocable committed prolongation of existing loans
 
4,608
 
4,602
 
4
 
2
 
(3)
 
(3)
 
0
 
0
Total off-balance sheet financial instruments and other credit lines
2
 
298,263
 
290,012
 
7,572
 
678
 
(332)
 
(183)
 
(102)
 
(48)
Total allowances and provisions
2
 
(3,527)
 
(487)
 
(623)
 
(2,417)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective
 
ECL allowances.
 
2 Refer to Note 2 for more information about the merger of UBS AG
and Credit Suisse AG.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
55
Note 9
 
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 AG’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
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
 
258,992
 
246,519
 
10,993
 
1,480
 
6
 
2
 
45
 
3
 
361
Real estate financing
 
85,020
 
79,771
 
4,955
 
295
 
12
 
3
 
64
 
7
 
1,613
Total real estate lending
 
344,012
 
326,290
 
15,948
 
1,774
 
7
 
2
 
51
 
4
 
569
Large corporate clients
 
26,115
 
22,097
 
2,231
 
1,788
 
350
 
37
 
496
 
79
 
4,040
SME clients
 
23,062
 
18,643
 
2,385
 
2,034
 
446
 
35
 
283
 
63
 
4,409
Total corporate lending
 
49,177
 
40,739
 
4,616
 
3,822
 
395
 
36
 
386
 
72
 
4,236
Lombard
 
153,120
 
152,917
 
1
 
203
 
7
 
1
 
31
 
1
 
5,198
Credit cards
 
2,069
 
1,572
 
431
 
66
 
214
 
49
 
255
 
94
 
3,847
Commodity trade finance
 
4,454
 
4,319
 
12
 
123
 
276
 
18
 
10
 
18
 
9,376
Ship / aircraft financing
 
8,240
 
7,921
 
319
 
0
 
23
 
20
 
117
 
23
 
0
Consumer financing
 
2,743
 
2,418
 
128
 
196
 
457
 
65
 
1,500
 
137
 
4,598
Other loans and advances to customers
 
42,373
 
40,130
 
1,590
 
653
 
80
 
5
 
44
 
7
 
4,742
Loans to financial advisors
 
2,778
 
2,603
 
49
 
125
 
144
 
13
 
174
 
16
 
2,870
Total other lending
 
215,777
 
211,880
 
2,530
 
1,367
 
37
 
4
 
165
 
6
 
4,991
Total
1
 
608,966
 
578,909
 
23,094
 
6,963
 
49
 
5
 
130
 
10
 
3,450
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
 
9,352
 
9,083
 
264
 
6
 
4
 
3
 
33
 
4
 
453
Real estate financing
 
8,225
 
7,851
 
374
 
0
 
8
 
10
 
0
 
8
 
0
Total real estate lending
 
17,578
 
16,934
 
638
 
6
 
6
 
6
 
0
 
6
 
448
Large corporate clients
 
69,056
 
64,495
 
4,286
 
275
 
27
 
15
 
160
 
24
 
874
SME clients
 
15,801
 
14,290
 
1,268
 
243
 
52
 
19
 
293
 
41
 
759
Total corporate lending
 
84,857
 
78,785
 
5,554
 
518
 
32
 
16
 
190
 
27
 
820
Lombard
 
79,638
 
79,597
 
8
 
33
 
2
 
1
 
14
 
1
 
2,461
Credit cards
 
10,285
 
9,815
 
467
 
3
 
8
 
6
 
37
 
8
 
0
Commodity trade finance
 
3,019
 
3,001
 
17
 
0
 
2
 
2
 
14
 
2
 
0
Ship / aircraft financing
 
2,520
 
2,486
 
34
 
0
 
0
 
0
 
0
 
0
 
0
Consumer financing
 
377
 
377
 
0
 
0
 
3
 
3
 
0
 
3
 
0
Financial intermediaries and hedge funds
 
30,668
 
29,151
 
1,517
 
0
 
1
 
1
 
3
 
1
 
0
Other off-balance sheet commitments
 
42,182
 
41,199
 
914
 
69
 
10
 
5
 
86
 
7
 
1,434
Total other lending
 
168,689
 
165,626
 
2,958
 
105
 
4
 
2
 
34
 
3
 
1,707
Total
2
 
271,124
 
261,345
 
9,150
 
629
 
13
 
7
 
126
 
11
 
964
Total on- and off-balance sheet
3
 
880,089
 
840,254
 
32,244
 
7,592
 
38
 
6
 
129
 
10
 
3,244
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 AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
56
Note 9
 
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
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
 
252,121
 
241,736
 
9,079
 
1,306
 
7
 
2
 
77
 
5
 
386
Real estate financing
 
83,880
 
79,504
 
4,098
 
278
 
12
 
3
 
66
 
6
 
1,768
Total real estate lending
 
336,001
 
321,240
 
13,177
 
1,584
 
8
 
2
 
73
 
5
 
628
Large corporate clients
 
26,427
 
21,145
 
3,617
 
1,665
 
313
 
34
 
341
 
79
 
3,795
SME clients
 
21,966
 
17,631
 
2,341
 
1,993
 
439
 
31
 
203
 
52
 
4,316
Total corporate lending
 
48,393
 
38,776
 
5,958
 
3,659
 
370
 
33
 
287
 
67
 
4,079
Lombard
 
147,821
 
147,332
 
267
 
222
 
7
 
0
 
8
 
0
 
4,531
Credit cards
 
2,019
 
1,539
 
416
 
64
 
205
 
39
 
256
 
85
 
3,857
Commodity trade finance
 
4,327
 
4,098
 
106
 
122
 
283
 
22
 
40
 
23
 
9,258
Ship / aircraft financing
 
8,089
 
7,150
 
938
 
0
 
38
 
20
 
175
 
38
 
0
Consumer financing
 
2,951
 
2,484
 
134
 
334
 
464
 
62
 
1,447
 
133
 
3,057
Other loans and advances to customers
 
40,576
 
38,188
 
1,636
 
752
 
83
 
7
 
56
 
9
 
3,965
Loans to financial advisors
 
2,764
 
2,571
 
60
 
132
 
149
 
14
 
159
 
17
 
2,785
Total other lending
 
208,547
 
203,363
 
3,558
 
1,627
 
39
 
4
 
161
 
7
 
4,152
Total
1
 
592,941
 
563,379
 
22,693
 
6,869
 
48
 
5
 
143
 
10
 
3,301
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
 
8,473
 
8,271
 
176
 
26
 
4
 
4
 
22
 
4
 
81
Real estate financing
 
8,694
 
8,300
 
394
 
0
 
7
 
6
 
33
 
7
 
0
Total real estate lending
 
17,167
 
16,571
 
570
 
26
 
6
 
5
 
30
 
6
 
81
Large corporate clients
 
69,896
 
65,013
 
4,612
 
271
 
28
 
17
 
151
 
26
 
528
SME clients
 
13,944
 
12,788
 
842
 
315
 
59
 
30
 
324
 
48
 
532
Total corporate lending
 
83,840
 
77,800
 
5,454
 
586
 
33
 
19
 
177
 
30
 
530
Lombard
 
80,390
 
80,235
 
120
 
35
 
1
 
0
 
1
 
0
 
2,330
Credit cards
 
10,074
 
9,604
 
467
 
3
 
8
 
6
 
36
 
8
 
0
Commodity trade finance
 
3,487
 
3,464
 
23
 
0
 
3
 
3
 
51
 
3
 
0
Ship / aircraft financing
 
2,669
 
2,663
 
6
 
0
 
13
 
13
 
49
 
13
 
0
Consumer financing
 
134
 
134
 
0
 
0
 
6
 
6
 
0
 
6
 
0
Financial intermediaries and hedge funds
 
22,842
 
22,378
 
464
 
0
 
1
 
1
 
8
 
1
 
0
Other off-balance sheet commitments
 
52,765
 
52,268
 
468
 
29
 
4
 
2
 
28
 
2
 
2,945
Total other lending
 
172,360
 
170,745
 
1,549
 
67
 
3
 
1
 
23
 
2
 
2,470
Total
2
 
273,367
 
265,117
 
7,572
 
678
 
12
 
7
 
135
 
10
 
704
Total on- and off-balance sheet
3
 
866,308
 
828,495
 
30,265
 
7,547
 
37
 
6
 
141
 
10
 
3,067
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 AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
57
Note 10
 
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
 
133,803
 
27,969
 
3,665
 
165,437
 
128,428
 
27,687
 
3,108
 
159,223
of which: Equity instruments
 
117,487
 
320
 
138
 
117,945
 
116,536
 
430
 
91
 
117,056
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
 
20,777
 
876
 
22,480
 
911
 
17,585
 
838
 
19,334
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
 
134,789
 
2,459
 
138,620
 
795
 
182,849
 
2,792
 
186,435
of which: Foreign exchange
 
 
570
 
48,911
 
71
 
49,551
 
472
 
100,572
 
66
 
101,111
of which: Interest rate
 
 
0
 
38,135
 
898
 
39,033
 
0
 
41,193
 
878
 
42,071
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
 
52,129
 
9,185
 
102,075
 
35,910
 
50,545
 
8,747
 
95,203
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
 
123
 
640
 
1,150
 
423
 
133
 
681
 
1,237
of which: Equity instruments
 
90
 
0
 
2,930
 
3,020
 
91
 
0
 
2,916
 
3,008
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
 
184,689
 
245,720
 
15,398
 
445,808
 
172,532
 
289,076
 
14,731
 
476,340
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
58
Note 10
 
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
136,694
4,130
142,230
829
175,788
4,060
180,678
of which: Foreign exchange
 
 
553
 
50,624
 
44
 
51,220
 
506
 
94,077
 
46
 
94,628
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
96,189
11,204
107,393
0
90,725
11,842
102,567
Other financial liabilities designated at fair value
0
28,525
4,267
32,792
0
29,779
4,262
34,041
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: Funding from UBS Group AG
 
0
 
4,042
 
1,515
 
5,557
 
0
 
3,848
 
1,494
 
5,342
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
31,909
333,894
19,633
385,436
25,406
355,744
20,405
401,555
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
 
397
Profit / (loss) deferred on new transactions
 
65
 
57
 
42
(Profit) / loss recognized in the income statement
 
(95)
 
(51)
 
(60)
Foreign currency translation
 
(1)
 
(4)
 
0
Reserve balance at the end of the period
 
391
 
421
 
379
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
 
(942)
 
(1,165)
of which: debt issued designated at fair value
 
(680)
 
(780)
of which: other financial liabilities designated at fair value
 
(262)
 
(385)
Credit valuation adjustments
2
 
(128)
 
(125)
Funding and debit valuation adjustments
 
(69)
 
(96)
Other valuation adjustments
 
(971)
 
(1,206)
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 AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
59
Note 10
 
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
UBS AG’s estimates
 
and assumptions,
 
but rather
 
the different
 
underlying characteristics
 
of the
 
relevant assets
 
and
liabilities
 
held by UBS
 
AG.
 
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 AG 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
 
11.2
 
11.8
Other financial liabilities
designated at fair value
 
4.3
 
4.3
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 AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
60
Note 10
 
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 AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
61
Note 10
 
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
 
11.8
 
0.2
 
0.2
0.0
0.0
 
1.7
 
(1.2)
 
0.6
 
(2.1)
 
0.2
 
11.2
Other financial liabilities designated at
fair value
 
4.3
 
(0.0)
 
(0.0)
0.0
 
(0.0)
 
0.3
 
(0.3)
 
0.0
 
(0.0)
 
0.0
 
4.3
For the three months ended 31 March 2024
Financial assets at fair value held for
trading
 
1.8
 
(0.0)
 
(0.0)
 
0.2
 
(0.8)
 
0.4
 
(0.3)
 
0.1
 
(0.1)
 
(0.0)
 
1.4
of which: Equity instruments
 
0.1
 
0.0
 
0.0
 
0.0
 
(0.0)
0.0
 
(0.0)
 
0.1
 
(0.0)
 
(0.0)
 
0.2
of which: Corporate and municipal
bonds
 
0.6
 
(0.0)
 
(0.0)
 
0.2
 
(0.2)
0.0
0.0
 
0.0
 
(0.0)
 
(0.0)
 
0.5
of which: Loans
 
0.9
 
0.0
 
0.0
 
0.0
 
(0.5)
 
0.4
 
(0.3)
 
0.1
 
(0.0)
 
(0.0)
 
0.6
Derivative financial instruments –
assets
 
1.3
 
(0.0)
 
(0.1)
0.0
0.0
 
0.4
 
(0.3)
 
0.1
 
(0.1)
 
(0.0)
 
1.3
of which: Interest rate
 
0.3
 
0.1
 
0.1
0.0
0.0
 
0.0
 
(0.1)
0.0
 
(0.1)
 
0.0
 
0.3
of which: Equity / index
 
0.7
 
(0.1)
 
(0.1)
0.0
0.0
 
0.4
 
(0.2)
 
0.0
 
(0.0)
 
(0.0)
 
0.7
of which: Credit
 
0.3
 
(0.0)
 
(0.0)
0.0
0.0
 
0.0
 
(0.1)
 
0.1
 
(0.0)
 
(0.0)
 
0.3
Financial assets at fair value not held
for trading
 
4.1
 
0.0
 
0.0
 
0.0
 
(0.0)
 
0.4
 
(0.1)
0.0
 
(0.0)
 
(0.0)
 
4.4
of which: Loans
 
1.3
 
0.0
 
0.0
0.0
0.0
 
0.2
 
(0.1)
0.0
 
(0.0)
 
(0.0)
 
1.3
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
 
1.1
 
0.0
 
0.0
 
0.0
 
(0.0)
 
0.0
 
(0.0)
0.0
0.0
 
(0.0)
 
1.1
of which: Investment fund units
 
0.2
 
0.0
 
0.0
 
0.0
 
(0.0)
0.0
0.0
0.0
0.0
 
(0.0)
 
0.2
Derivative financial instruments –
liabilities
 
3.2
 
0.5
 
0.4
0.0
0.0
 
1.7
 
(1.0)
 
0.2
 
(0.1)
 
(0.0)
 
4.5
of which: Interest rate
 
0.1
 
0.0
 
0.0
0.0
0.0
 
0.0
 
(0.0)
 
0.0
 
(0.0)
 
0.0
 
0.2
of which: Equity / index
 
2.7
 
0.5
 
0.4
0.0
0.0
 
1.7
 
(0.9)
 
0.2
 
(0.1)
 
(0.0)
 
4.0
of which: Credit
 
0.3
 
(0.0)
 
(0.0)
0.0
0.0
 
0.0
 
(0.1)
 
0.0
 
(0.0)
 
(0.0)
 
0.2
Debt issued designated at fair value
 
7.8
 
0.2
 
0.2
0.0
0.0
 
1.6
 
(0.8)
 
0.3
 
(1.6)
 
(0.1)
 
7.4
Other financial liabilities designated at
fair value
 
2.3
 
(0.1)
 
(0.1)
0.0
0.0
 
0.1
 
(0.2)
 
0.0
 
(0.0)
 
(0.0)
 
2.1
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 AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
62
Note 10
 
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 AG 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
 
20.3
 
20.3
 
18.1
 
18.1
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
 
603.2
 
597.1
 
587.3
 
582.4
Other financial assets measured at amortized cost
 
66.9
 
65.4
 
59.3
 
57.5
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
 
32.0
 
32.0
 
36.4
 
36.4
Customer deposits
 
747.5
 
748.2
 
749.5
 
750.0
Funding from UBS Group AG measured at amortized cost
 
111.5
 
115.3
 
107.9
 
112.5
Debt issued measured at amortized cost
 
98.3
 
98.7
 
101.1
 
102.7
Other financial liabilities measured at amortized cost
1
 
15.6
 
15.6
 
17.9
 
17.9
1 Excludes lease liabilities.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
63
Note 11
 
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
 
39.0
 
34.2
 
3,722
 
18,048
Credit derivatives
 
3.2
 
3.6
 
173
Foreign exchange
 
49.6
 
51.2
 
7,255
 
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
 
138.6
 
142.2
 
12,927
 
18,465
Further netting potential not recognized on the balance
 
sheet
5
 
(123.2)
 
(127.9)
of which: netting of recognized financial liabilities / assets
 
(100.9)
 
(100.9)
of which: netting with collateral received / pledged
 
(22.3)
 
(27.0)
Total derivative financial instruments, after consideration of further netting potential
 
15.4
 
14.4
As of 31.12.24, USD bn
Derivative financial instruments
Interest rate
 
42.1
 
36.6
 
3,650
 
16,844
Credit derivatives
 
3.1
 
3.7
 
144
Foreign exchange
 
101.1
 
94.6
 
7,216
 
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
 
186.4
 
180.7
 
12,617
 
17,223
Further netting potential not recognized on the balance
 
sheet
5
 
(162.6)
 
(166.4)
of which: netting of recognized financial liabilities / assets
 
(135.6)
 
(135.6)
of which: netting with collateral received / pledged
 
(27.1)
 
(30.8)
Total derivative financial instruments, after consideration of further netting potential
 
23.8
 
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 AG 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
 
32.0
 
44.0
 
36.4
Further netting potential not recognized on the balance
 
sheet
2
 
(24.3)
 
(17.1)
 
(28.3)
 
(22.6)
of which: netting of recognized financial liabilities / assets
 
(22.2)
 
(15.0)
 
(25.9)
 
(20.2)
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 AG Annual Report 2024 for more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
64
Note
12
 
Other assets and liabilities
 
a) Other financial assets measured at amortized cost
USD m
31.3.25
31.12.24
Debt securities
 
48,095
 
41,583
Loans to financial advisors
 
2,738
 
2,723
Fee- and commission-related receivables
 
2,493
 
2,231
Finance lease receivables
 
6,104
 
5,934
Settlement and clearing accounts
 
 
444
 
430
Accrued interest income
 
2,127
 
2,196
Other
1
 
4,864
 
4,182
Total other financial assets measured at amortized cost
 
66,864
 
59,279
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
 
1,285
 
1,194
Current tax assets
 
 
1,410
 
1,504
VAT,
 
withholding tax and other tax receivables
 
816
 
1,129
Properties and other non-current assets held for sale
 
189
 
195
Assets of disposal groups held for sale
2
 
1,823
Other
 
1,799
 
2,149
Total other non-financial assets
 
15,134
 
17,282
1 Refer to Note 16 for more information.
 
2 Refer to Note 6 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
 
2,646
 
2,732
Accrued interest expenses
 
4,910
 
5,862
Settlement and clearing accounts
 
2,193
 
1,925
Lease liabilities
 
3,824
 
3,871
Other
 
 
5,849
 
7,372
Total other financial liabilities measured at amortized cost
 
19,421
 
21,762
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
Funding from UBS Group AG
1
 
5,557
 
5,342
Total other financial liabilities designated at fair value
 
32,792
 
34,041
1 Funding from UBS Group AG
 
consists of subordinated debt of UBS
 
AG and its subsidiaries toward
 
UBS Group AG. Subordinated
 
debt consists of unsecured debt
 
obligations that are contractually subordinated
 
in
right of payment to all other present and future non-subordinated obligations of the respective issuing entity.
 
e) Other non-financial liabilities
USD m
31.3.25
31.12.24
Compensation-related liabilities
 
4,460
 
6,897
of which: net defined benefit liability
 
704
 
691
Current tax liabilities
 
1,697
 
1,536
Deferred tax liabilities
 
303
 
283
VAT,
 
withholding tax and other tax payables
 
888
 
1,067
Deferred income
 
596
 
614
Liabilities of disposal groups held for sale
1
 
1,212
Other
 
80
 
304
Total other non-financial liabilities
 
8,024
 
11,911
1 Refer to Note 6 for more information about the sale of Select Portfolio Servicing.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
65
Note
13
 
Funding from UBS Group AG measured
 
at amortized cost
Funding from UBS Group AG measured at amortized cost
USD m
31.3.25
31.12.24
Debt contributing to total loss-absorbing capacity (TLAC)
 
88,236
 
87,036
Debt eligible as high-trigger loss-absorbing additional tier
 
1 capital instruments
1
 
18,325
 
14,585
Debt eligible as low-trigger loss-absorbing additional
 
tier 1 capital instruments
 
1,245
Other
2
 
4,895
 
5,051
Total funding from UBS Group AG measured at amortized cost
3,4
 
111,457
 
107,918
1 For 31 March 2025, includes
 
USD 10.1bn (31 December 2024: USD 6.9bn)
 
that is, upon the occurrence
 
of a trigger event or a viability event,
 
subject to conversion into ordinary UBS shares.
 
2 Includes debt no
longer eligible as TLAC having a residual maturity of less than one
 
year and high-trigger loss-absorbing additional tier 1 capital instruments that ceased to
 
be eligible when UBS Group AG issued notice of redemption.
 
3 Consists of subordinated debt of
 
UBS AG and its subsidiaries
 
toward UBS Group AG.
 
Subordinated debt consists of unsecured
 
debt obligations that are contractually
 
subordinated in right of payment
 
to all other
present and future non-subordinated obligations of the respective issuing entity.
 
4 UBS AG has also recognized funding from UBS Group AG that is designated at fair value. Refer to Note 12d for more information.
 
Note
14
 
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
 
15,178
 
14,250
Commodity-linked
 
3,462
 
3,592
Other
 
2,470
 
1,789
Total debt issued designated at fair value
2
 
107,393
 
102,567
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
15
 
Debt issued measured at amortized cost
Debt issued measured at amortized cost
USD m
31.3.25
31.12.24
Short-term debt
1
 
30,582
 
30,509
Senior unsecured debt
 
 
30,106
 
33,416
Covered bonds
 
9,089
 
8,814
Subordinated debt
 
676
 
689
of which: eligible as non-Basel III-compliant tier 2 capital
 
instruments
 
205
 
207
Debt issued through the Swiss central mortgage institutions
 
27,378
 
27,251
Other long-term debt
 
429
 
424
Long-term debt
2
 
67,677
 
70,595
Total debt issued measured at amortized cost
3,4
 
98,259
 
101,104
1 Debt with an original contractual maturity of
 
less than one year,
 
includes mainly certificates of deposit and commercial
 
paper.
 
2 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.
 
3 Net of bifurcated
 
embedded derivatives,
 
the fair value
 
of which was
 
not material for
 
the periods
presented.
 
4 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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
66
Note 16
 
Provisions and contingent liabilities
a) Provisions
The table below presents an overview of total provisions.
Overview of total provisions
USD m
31.3.25
31.12.24
Provisions other than provisions for expected credit losses
 
5,146
 
4,799
Provisions for expected credit losses
1
 
348
 
332
Total provisions
 
5,495
 
5,131
1 Refer to Note 9c for more information about ECL provisions recognized for off-balance sheet financial instruments and credit lines.
 
The table below presents additional information
 
for provisions other than provisions for
 
expected credit losses.
Additional information for provisions other than provisions for expected credit losses
USD m
Litigation,
regulatory and
similar matters
1
Restructuring
2
Real estate
3
Other
4
Total
Balance as of 31 December 2024
 
3,598
 
699
 
224
 
278
 
4,799
Increase in provisions recognized in the income statement
 
226
 
247
 
4
 
37
 
515
Release of provisions recognized in the income statement
 
(12)
 
(28)
 
(1)
 
(15)
 
(57)
Provisions used in conformity with designated purpose
 
(30)
 
(149)
 
(12)
 
(12)
 
(204)
Foreign currency translation and other movements
 
65
 
13
 
9
 
7
 
93
Balance as of 31 March 2025
 
3,848
 
781
 
223
 
294
 
5,146
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 342m of personnel-related restructuring provisions as
 
of 31 March 2025 (31 December 2024: USD 262m), 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.
 
Information about provisions and
 
contingent liabilities in respect of
 
litigation, regulatory and similar matters,
 
as a
class,
 
is
 
included
 
in
 
Note
 
16b.
 
There
 
are
 
no
 
material
 
contingent
 
liabilities
 
associated
 
with
 
the
 
other
 
classes
 
of
provisions.
b) Litigation, regulatory and similar matters
UBS 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
 
is involved in
 
various disputes and
 
legal proceedings,
including litigation, arbitration, and regulatory and criminal investigations. “UBS”, “we”
 
and “our”, for purposes
of this Note, refer to UBS AG and / or one or more
 
of its subsidiaries, as applicable.
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 UBS 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
 
UBS
 
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. UBS 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 UBS
 
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 UBS,
 
but are
 
nevertheless
expected to be, based on UBS’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
 
UBS
 
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 AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
67
Note 16
 
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 16a 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 are in the range of USD
 
0bn to USD 3.2bn.
 
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.
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 AG
Balance as of 31 December 2024
 
1,271
 
147
 
1
 
266
 
1,779
 
135
 
3,598
Increase in provisions recognized in the income statement
 
15
 
0
 
0
 
29
 
109
 
72
 
226
Release of provisions recognized in the income statement
 
(2)
 
0
 
0
 
(9)
 
0
 
(1)
 
(12)
Provisions used in conformity with designated purpose
 
(12)
 
0
 
0
 
0
 
(15)
 
(2)
 
(30)
Foreign currency translation and other movements
 
47
 
6
 
0
 
7
 
5
 
0
 
65
Balance as of 31 March 2025
 
1,318
 
153
 
0
 
293
 
1,878
 
205
 
3,848
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 and 8 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.
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
68
Note 16
 
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 AG
 
entered into
 
settlement agreements
 
with the
 
SEC, the
 
Federal Reserve,
 
the New York
Department
 
of
 
Financial
 
Services
 
and
 
agreed
 
with
 
the
 
U.S.
 
Department
 
of
 
Justice
 
(the
 
DOJ)
 
to
 
plead
 
guilty
 
to
conspiring to
 
aid and
 
abet US
 
taxpayers
 
in filing
 
false tax
 
returns (the
 
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
since
 
the
 
2014
 
Plea
 
Agreement.
 
In
 
May
 
2025,
 
Credit
 
Suisse
 
Services
 
AG
 
entered
 
into
 
a
 
plea
 
agreement
 
(the
2025 Plea Agreement) with the
 
DOJ under which
 
it agreed to
 
plead guilty to
 
one count of
 
conspiracy to aid
 
and
assist in
 
the preparation
 
of false
 
income
 
tax returns.
 
In
 
addition, Credit
 
Suisse
 
Services AG
 
entered into
 
a
 
non-
prosecution agreement
 
with the
 
DOJ (the
 
2025 NPA)
 
relating to
 
legacy Credit
 
Suisse accounts
 
booked in
 
Credit
Suisse’s Singapore booking center. The 2025
 
Plea Agreement and the
 
2025 NPA provide for
 
penalties, restitution
and
 
forfeiture
 
of
 
USD
 
511m
 
in
 
the
 
aggregate.
 
The
 
2025
 
Plea
 
Agreement
 
and
 
the
 
2025
 
NPA
 
include
 
ongoing
obligations of UBS to furnish
 
information and cooperate
 
with DOJ’s investigations
 
of legacy Credit Suisse accounts
held by US
 
persons in
 
its Switzerland
 
and Singapore
 
booking centers
 
and related
 
accounts in
 
other booking
 
centers.
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.
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
69
Note 16
 
Provisions and contingent liabilities
 
(continued)
In 2009 and 2010, the liquidators
 
of the two Luxembourg funds
 
filed claims against UBS entities,
 
non-UBS entities
and
 
certain
 
individuals,
 
including
 
current
 
and
 
former
 
UBS
 
employees,
 
seeking
 
amounts
 
totaling
 
approximately
EUR 2.1bn, which includes
 
amounts that the
 
funds may be
 
held liable to
 
pay the trustee
 
for the liquidation
 
of BMIS
(BMIS Trustee).
A large number of alleged beneficiaries have filed claims
 
against UBS entities (and non-UBS entities) for purported
losses relating to
 
the Madoff fraud.
 
The majority of
 
these cases have
 
been filed in
 
Luxembourg, where decisions
that the claims in eight test cases were inadmissible have been affirmed by the Luxembourg Court of Appeal, and
the Luxembourg Supreme Court has dismissed
 
a further appeal in one of the test
 
cases.
In the
 
US, the
 
BMIS Trustee
 
filed claims
 
against UBS
 
entities, among
 
others, in
 
relation to
 
the two
 
Luxembourg
funds and one of
 
the offshore funds. The
 
total amount claimed against
 
all defendants in
 
these actions was
 
not less
than USD 2bn. In
 
2014, the US
 
Supreme Court rejected
 
the BMIS Trustee’s
 
motion for leave
 
to appeal decisions,
dismissing all
 
claims against
 
UBS defendants
 
except those
 
for the
 
recovery of
 
approximately USD 125m
 
of payments
alleged to be
 
fraudulent conveyances
 
and preference
 
payments. Similar
 
claims have
 
been filed against
 
Credit Suisse
entities seeking to recover
 
redemption payments. In
 
2016, the bankruptcy
 
court dismissed these
 
claims against the
UBS entities
 
and most
 
of the
 
Credit Suisse entities.
 
In 2019, the
 
Court of Appeals
 
reversed the dismissal
 
of the
 
BMIS
Trustee’s remaining claims. The case has been
 
remanded to the Bankruptcy Court
 
for further proceedings.
3. Foreign exchange, LIBOR and benchmark rates,
 
and other trading practices
Foreign-exchange-related regulatory matters:
 
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.
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
70
Note 16
 
Provisions and contingent liabilities
 
(continued)
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.
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.
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
71
Note 16
 
Provisions and contingent liabilities
 
(continued)
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.
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.
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
72
Note 16
 
Provisions and contingent liabilities
 
(continued)
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.
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.
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
 
the UBS AG interim consolidated financial
 
statements (unaudited)
 
73
Note 16
 
Provisions and contingent liabilities
 
(continued)
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.
 
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.
Note 17
 
Events after the reporting period
On 5 May 2025, Credit
 
Suisse Services AG entered
 
into an agreement with
 
the U.S. Department of
 
Justice to settle
a long-running tax-related
 
investigation into Credit
 
Suisse's implementation
 
of its 2014
 
plea agreement, relating
 
to
its
 
legacy
 
cross-border
 
business
 
with
 
US
 
taxpayers
 
booked
 
in
 
Switzerland,
 
which
 
began
 
before
 
UBS
 
acquired
Credit Suisse. Credit
 
Suisse Services
 
AG pleaded
 
guilty to
 
one count
 
of conspiracy
 
to aid
 
and assist
 
in the
 
preparation
of
 
false
 
income
 
tax
 
returns
 
and
 
will
 
pay
 
an
 
aggregate
 
of
 
USD 371.9m.
 
Credit
 
Suisse
 
Services
 
AG
 
also
contemporaneously
 
entered
 
into
 
a
 
non-prosecution
 
agreement
 
regarding
 
US
 
taxpayers
 
booked
 
in
 
the
 
legacy
Credit Suisse Singapore booking
 
center and will
 
pay an
 
aggregate of
 
USD 138.7m. UBS
 
AG has not
 
made any
 
post-
balance sheet adjustment as the expected
 
impact is not material.
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Comparison between
 
UBS AG consolidated and UBS Group AG consolidated
 
74
Comparison between UBS AG consolidated and
 
UBS Group AG consolidated
The table below provides
 
a comparison of selected
 
financial and capital information of
 
UBS AG consolidated and
of UBS Group AG consolidated.
 
UBS AG and
 
UBS Group AG both
 
prepare consolidated
 
financial statements
 
in accordance
 
with IFRS
 
Accounting
Standards. UBS Group AG has applied acquisition accounting as defined by IFRS 3,
Business Combinations
, to the
acquisition of the Credit Suisse Group in 2023. The merger of UBS AG and Credit Suisse AG on 31 May 2024 has
been
 
accounted
 
for
 
as
 
a
 
business
 
combination
 
under
 
common
 
control,
 
as
 
defined
 
in
 
IFRS 3,
 
using
 
the
 
historic
carrying values
 
of the
 
assets and
 
liabilities of
 
Credit Suisse AG
 
as at
 
the date
 
of the
 
transaction (31 May
 
2024),
determined
 
under
 
IFRS
 
Accounting
 
Standards.
 
Therefore,
 
differences
 
exist
 
between
 
the
 
accounting
 
treatments
applied
 
at
 
the
 
UBS Group AG
 
and
 
UBS AG
 
consolidated
 
levels.
 
There
 
are
 
also
 
certain
 
scope
 
and
 
presentation
differences, as noted below.
›
Refer to “Note 2 Accounting for the merger of UBS AG and Credit Suisse AG” in the “Consolidated financial
statements” section of the UBS AG Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
,
for more information about the accounting for the merger of UBS AG and Credit Suisse AG
Assets,
 
liabilities,
 
revenues,
 
operating
 
expenses
 
and
 
tax
 
expenses
 
/
 
(benefits)
 
relating
 
to
 
UBS
 
Group AG and
 
its
directly held
 
subsidiaries,
 
including UBS
 
Business Solutions
 
AG, are
 
reflected in
 
the consolidated
 
financial statements
of UBS Group AG but
 
not in those of
 
UBS AG. UBS AG’s
 
assets, liabilities, revenues
 
and operating expenses
 
related
to transactions
 
with UBS
 
Group AG and its
 
directly held
 
subsidiaries, including
 
UBS Business
 
Solutions AG and
 
other
shared services subsidiaries,
 
are not subject to
 
elimination in the
 
UBS AG consolidated financial
 
statements, but are
eliminated in the UBS Group AG consolidated financial
 
statements.
In the
 
first quarter
 
of 2025,
 
UBS AG consolidated
 
recognized a
 
net profit
 
of USD 1,035m,
 
while UBS Group
 
AG
consolidated recognized
 
a net profit
 
of USD 1,702m.
 
The USD 667m
 
difference was
 
mainly due to
 
certain purchase
price allocation
 
(PPA) effects
 
recognized at
 
the UBS Group
 
AG level
 
upon the
 
acquisition of
 
the Credit
 
Suisse Group.
These resulted
 
in net
 
accretion income
 
at the
 
UBS Group AG
 
level, net
 
of tax
 
effects, whereas
 
UBS AG has
 
not
applied acquisition
 
accounting and
 
does not have
 
the PPA effects
 
or the corresponding
 
net income. The
 
PPA effects
also resulted in lower
 
expenses for litigation, regulatory and
 
similar matters for UBS
 
Group AG and
 
a higher gain
from the sale of
 
Select Portfolio Servicing,
 
the US mortgage servicing
 
business of Credit
 
Suisse. Other differences
 
in
net profit
 
mainly arise
 
as UBS
 
Business Solutions AG
 
and other
 
shared services
 
subsidiaries of
 
UBS Group AG charge
other legal entities within the UBS AG consolidation
 
scope a markup on costs incurred for
 
services provided.
 
The equity
 
of UBS Group
 
AG consolidated
 
was USD 9.5bn
 
lower than
 
the equity
 
of UBS AG
 
consolidated as
 
of
31 March 2025.
 
This difference
 
was mainly
 
due to
 
consolidation scope differences
 
of USD 4.8bn,
 
as well
 
as PPA
effects of USD 4.5bn recognized at
 
the UBS Group AG level
 
upon the acquisition of the
 
Credit Suisse Group that
did not impact UBS AG
 
consolidated, primarily related
 
to loans and loan
 
commitments measured at
 
amortized cost
and contingent liabilities recognized under IFRS
 
3 for litigation.
The going concern capital of UBS Group AG consolidated
 
was USD 1.2bn lower than the going concern capital
 
of
UBS AG consolidated as of
 
31 March 2025, reflecting the
 
common equity tier 1
 
(CET1) capital of
 
UBS Group AG
being lower
 
by USD 1.6bn,
 
partly offset
 
by its
 
going concern
 
loss-absorbing additional
 
tier 1 (AT1)
 
capital being
USD 0.4bn higher.
 
The USD 1.6bn
 
lower CET1
 
capital of
 
UBS Group AG
 
consolidated was
 
primarily due
 
to UBS Group
 
AG consolidated
IFRS equity being USD 9.5bn lower, compensation-related
 
regulatory capital accruals at the
 
UBS Group AG level of
USD 2.7bn, a
 
capital reserve
 
for
 
expected future
 
share repurchases
 
of
 
USD 2.5bn and
 
a
 
USD 0.9bn effect
 
from
eligible deferred tax assets
 
on temporary differences,
 
largely offset by a
 
USD 13.9bn difference in
 
dividend accruals
between UBS Group AG and UBS AG.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Consolidated financial statements | Comparison between
 
UBS AG consolidated and UBS Group AG consolidated
 
75
Comparison between UBS AG consolidated and UBS Group AG consolidated
As of or for the quarter ended 31.3.25
As of or for the quarter ended 31.12.24
USD m, except where indicated
UBS AG
consolidated
UBS Group AG
consolidated
Difference
(absolute)
UBS AG
consolidated
UBS Group AG
consolidated
Difference
(absolute)
Income statement
Total revenues
 
12,163
 
12,557
 
(393)
 
11,317
 
11,635
 
(318)
Credit loss expense / (release)
 
124
 
100
 
24
 
241
 
229
 
12
Operating expenses
 
10,701
 
10,324
 
377
 
11,017
 
10,359
 
658
Operating profit / (loss) before tax
 
1,339
 
2,132
 
(793)
 
59
 
1,047
 
(989)
Net profit / (loss)
 
 
1,035
 
1,702
 
(667)
 
(254)
 
779
 
(1,034)
Balance sheet
Total assets
 
1,547,489
 
1,543,363
 
4,126
 
1,568,060
 
1,565,028
 
3,033
Total liabilities
 
1,450,367
 
1,455,773
 
(5,406)
 
1,473,394
 
1,479,454
 
(6,060)
Total equity
 
 
97,123
 
87,590
 
9,532
 
94,666
 
85,574
 
9,092
Capital, liquidity and funding information
Common equity tier 1 capital
 
70,756
 
69,152
 
1,604
 
73,792
 
71,367
 
2,425
Going concern capital
 
89,081
 
87,837
 
1,244
 
89,623
 
87,739
 
1,884
Risk-weighted assets
 
481,539
 
483,276
 
(1,737)
 
495,110
 
498,538
 
(3,429)
Common equity tier 1 capital ratio (%)
 
14.7
 
14.3
 
0.4
 
14.9
 
14.3
 
0.6
Going concern capital ratio (%)
 
18.5
 
18.2
 
0.3
 
18.1
 
17.6
 
0.5
Total loss-absorbing capacity ratio (%)
 
38.0
 
38.7
 
(0.8)
 
36.7
 
37.2
 
(0.5)
Leverage ratio denominator
 
1,565,845
 
1,561,583
 
4,261
 
1,523,277
 
1,519,477
 
3,799
Common equity tier 1 leverage ratio (%)
 
4.5
 
4.4
 
0.1
 
4.8
 
4.7
 
0.1
Liquidity coverage ratio (%)
1
 
180.3
 
181.0
 
(0.7)
 
186.1
 
188.4
 
(2.3)
Net stable funding ratio (%)
 
122.8
 
124.2
 
(1.4)
 
124.1
 
125.5
 
(1.4)
1 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 and 64 data points in the fourth
 
quarter of 2024.
Refer to the “Liquidity and funding management” section of this report for more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS AG first quarter 2025 report |
Appendix
 
76
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
1
 
(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
1
 
(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 AG first quarter 2025 report |
Appendix
 
77
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
1
 
(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.
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 AG first quarter 2025 report |
Appendix
 
78
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.
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
1
 
(%)
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
1
 
(%)
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
1
 
(%)
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
1
 
(%)
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
1
 
(%)
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.
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 AG first quarter 2025 report |
Appendix
 
79
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
1
(%)
 
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
1
 
(%)
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
1
(%)
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.
1
Profit or loss information for each of the
 
first quarter of 2025 and the
 
fourth quarter of 2024 is based
 
entirely on consolidated data following the merger
 
of UBS AG and Credit Suisse AG
 
and for the purpose of the
calculation of return measures has
 
been annualized by multiplying such
 
by four.
 
Profit or loss information for
 
the first quarter of 2024
 
includes pre-merger UBS AG data
 
only and for the purpose
 
of the calculation of
return measures has been annualized by multiplying such by four.
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.
 
 
UBS AG first quarter 2025 report |
Appendix
 
80
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 AG first quarter 2025 report |
Appendix
 
81
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 AG first quarter 2025 report |
Appendix
 
82
Information sources
 
Reporting publications
Annual publications
UBS
 
AG
 
Annual
 
Report
:
 
Published
 
in
 
English,
 
this
 
report
 
provides
 
descriptions
 
of:
 
the
 
performance
 
of
 
UBS AG
(consolidated);
 
the
 
strategy
 
and
 
performance
 
of
 
the
 
business
 
divisions
 
and
 
Group
 
functions;
 
risk,
 
treasury
 
and
capital management; corporate governance;
 
and financial information, including
 
the financial statements.
 
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 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 AG first quarter 2025 report |
Appendix
 
83
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.
edgarq25ubsagp87i0
UBS AG
P.O. Box, CH-8098 Zurich
P.O. Box, CH-4002 Basel
ubs.com
This
 
Form 6-K
 
is
 
hereby incorporated
 
by reference
 
into (1)
 
the
 
registration statements
 
of
 
UBS AG
 
on
 
Form
 
F-3
(Registration Number 333-283672),
 
and into each
 
prospectus outstanding
 
under the foregoing
 
registration statement,
(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
 
registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
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:
 
May 8, 2025