1

MERGER BETWEEN UBS AG AND CREDIT SUISSE AG

On December 7, 2023, UBS AG (“UBS Parent Bank”) and Credit Suisse AG (“Credit Suisse Parent Bank”) entered into a merger

agreement that provides for the merger of Credit Suisse Parent Bank into UBS Parent Bank. On the terms and subject to the

conditions set forth in the merger agreement and in accordance with applicable provisions of the Swiss law, Credit Suisse Parent

Bank will merge with and into UBS Parent Bank. UBS Parent Bank being the absorbing company will continue to operate and

Credit Suisse Parent Bank being the absorbed company will cease to exist (the “Transaction”). Under the terms of the merger

agreement, at the effective time of the Transaction all of the outstanding ordinary shares of Credit Suisse Parent Bank will be

cancelled; no consideration will be paid as all of the outstanding shares of each of UBS Parent Bank and Credit Suisse Parent

Bank are owned by UBS Group AG. Completion of the Transaction is subject to certain conditions, including obtaining of all

regulatory approvals and licenses or other regulatory action required for the completion of the Transaction or the subsequent

continuation of the business by UBS Parent Bank.

2

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

All amounts in this section are in US dollars (USD) unless otherwise specified. The abbreviation “bn” is used to represent

“billion”. The abbreviation “CHF” is used to represent “Swiss francs”. Numbers presented throughout this section may not add up

precisely to the totals provided in the tables and text due to rounding. 

The following unaudited pro forma condensed combined financial information is intended to illustrate the effect of the transaction

(as previously defined) and comprises the following:

•

the unaudited pro forma condensed combined income statement of UBS AG for the year ended 31 December 2023,

prepared as if the Transaction occurred on 1 January 2023 (and the merger between UBS Group AG and Credit

Suisse Group AG (“Group merger”) occurred just before the transaction) ; and

•

the unaudited pro forma condensed combined balance sheet as of 31 December 2023 for UBS AG, prepared as if the

Transaction had occurred at that date (and the Group merger occurred as of 12 June 2023). 

The Transaction is a business combination of entities under common control (a “common control transaction”) as defined under

IFRS 3

Business Combinations

 since UBS Group AG is the common 100% shareholder of the two entities as of 12 June 2023

when the Group merger occurred, and it controls the two businesses merged before and after the Transaction. IFRS 3

Business

Combinations

 specifically scopes out such transactions; therefore, the application of the acquisition method is not required.

Instead, in the absence of a specific IFRS Accounting Standards requirement, UBS Parent Bank applied the

carry over basis

 (also

referred to as the predecessor accounting method) consistent with previous UBS group-internal legal entity transactions and as

commonly applied under Swiss regulations.

Under the carry over basis, the estimated IFRS Accounting Standards -equivalent balance sheet amounts of Credit Suisse Parent

Bank are added across each line item with the UBS Parent Bank balance sheet amounts, as at the transaction date. No adjustments

have been made to reflect, for example, the fair value of amortized cost assets and the fair value of non-financial assets and

liabilities that were recorded in the UBS Group AG consolidated financial statements as a result of applying the acquisition

method as required under IFRS 3

Business Combinations

 on 31 May 2023 for the acquisition of Credit Suisse Group AG (note

that with the acquisition date of 12 June 2023, for convenience the Credit Suisse Group was consolidated with effect from 31 May

2023, as the effect of transactions and activities in the period from 31 May 2023 to 12 June 2023 on the consolidated financial

statements was not material). 

The unaudited pro forma condensed combined financial information is presented for illustrative purposes only and reflects

estimates and assumptions made by UBS Parent Bank’s management that it considers reasonable. Such estimates and assumptions

are subject to change as additional analyses are completed in advance of the Transaction. The unaudited pro forma condensed

combined financial information does not purport to represent what UBS Parent Bank’s actual results of operations or financial

condition would have been had the Transaction occurred on the dates indicated, nor is it necessarily indicative of future results of

operations or financial condition. Adjustments enumerated in this document are pro forma in nature and are relevant for the

combination of the UBS Parent Bank and Credit Suisse Parent Bank only. Such adjustments are not relevant for UBS Group

consolidated reporting, unless otherwise disclosed in the audited consolidated financial statements of UBS Group AG as of and

for the year ended 31 December 2023, included in the UBS Group AG Annual Report.

In the context of the Group merger, at the UBS Group AG level, IFRS 3

Business Combinations

 permits certain adjustments to be

made to the amounts forming part of the business combination accounting within a twelve-month measurement period from the

date of the Credit Suisse acquisition (12 June 2023), if new information about the facts and circumstances existing on the date of

the acquisition becomes available to management. The finalization of the respective valuations may result in further knock-on

impacts for the accompanying unaudited pro forma condensed combined financial information (and the future combined results of

operations or combined financial condition of the merged entity) and such impacts could be material. Other than those disclosed in

the notes, the unaudited pro forma condensed combined financial information does not reflect expense efficiencies, asset

dispositions or business reorganizations that are or may be contemplated, or any cost or revenue synergies, including any potential

restructuring actions.

The unaudited pro forma condensed combined financial information should be read in conjunction with the consolidated financial

statements of UBS Parent Bank and Credit Suisse Parent Bank and the accompanying notes included in UBS Parent Bank’s and

Credit Suisse Parent Bank’s Annual Reports on Form 20-F and interim financial reports on Form 6-K, as well as the additional

disclosures contained therein. These documents are available on UBS’s website at www.ubs.com/investors and at the SEC’s

website at www.sec.gov.

3

Unaudited Pro Forma Condensed Combined Balance Sheet

as of 31 December 2023

4

Unaudited Pro Forma Condensed Combined Balance Sheet

as of 31 December 2023 

1

Reflects the U.S. GAAP balance sheet for Credit Suisse Parent Bank as of 31 December 2023, translated to US dollars using

a spot rate of 1.19 (CHF/USD) and reflecting asset and liability presentation reclassification adjustments applied to conform

with UBS Parent Bank’s consolidated financial statement presentation. Refer to Note 2 in the explanatory notes for further

information. 

2

Refer to Note 3 in the explanatory notes for further information. 

See accompanying notes.

5

Unaudited Pro Forma Condensed Combined Income Statement 

for the year ended 31 December 2023

1

Reflects the U.S. GAAP income statement of Credit Suisse Parent Bank for the year ended 31 December 2023, translated to

US dollars using an average rate of 1.12 (CHF/USD) and reflecting presentation reclassification adjustments applied to

conform with UBS Parent Bank’s consolidated financial statement presentation. Refer to Note 2 in the explanatory notes for

further information. 

2

Refer to Note 3 in the explanatory notes for further information. 

3

Includes 15,483m relating to the cancellation of additional tier 1 capital obligations of Credit Suisse Parent Bank to Credit

Suisse Group AG that were written down concurrently with the FINMA ordered write-down of the additional tier 1 capital

instruments of Credit Suisse Group AG.

See accompanying notes. 

6

Explanatory notes to unaudited pro forma condensed combined financial information

(in USDbn except where otherwise indicated) 

Note 1: Basis of preparation 

The unaudited pro forma condensed combined financial information gives effect to the merger of Credit Suisse Parent Bank into

UBS Parent Bank (the “Transaction”). 

The unaudited pro forma condensed combined balance sheet gives effect to the Transaction as if it had closed on 31 December

2023. 

The unaudited pro forma condensed combined income statement for the year ended 31 December 2023 gives effect to the

Transaction as if it had closed on 1 January 2023. The unaudited pro forma condensed combined income statement for the year

ended 31 December 2023 does not include certain transaction accounting adjustments associated with the Group merger, as they

are already reflected in the historical income statement of the Credit Suisse Parent Bank for the year ended 31 December 2023.

The acquisition of Credit Suisse Group AG by UBS Group AG (“Group merger”) is also assumed to have occurred as of 1

January 2023 for the purpose of the pro forma income statement.

No adjustments have been reflected in the unaudited pro forma condensed combined financial information for the effects of items

that have been considered to be immaterial.

The unaudited pro forma condensed combined financial information was prepared based on the audited consolidated financial

statements of UBS Parent Bank and Credit Suisse Parent Bank respectively as of and for the year ended 31 December 2023, as

well as other relevant information. The unaudited pro forma condensed combined financial information should therefore be read

in conjunction with the following consolidated financial statements, including the notes thereto: 

•

the audited consolidated financial statements of UBS AG as of and for the year ended 31 December 2023, which have

been prepared in accordance with IFRS Accounting Standards and are included in the UBS AG Annual Report; and

•

the audited consolidated financial statements of Credit Suisse AG as of and for the year ended 31 December 2023,

which have been prepared in accordance with U.S. GAAP and are included in the Credit Suisse AG Annual Report.

The Credit Suisse Parent Bank historical consolidated financial statements were prepared in accordance with U.S. GAAP and

presented in Swiss francs (CHF). For purposes of the unaudited pro forma condensed combined financial information, those

financial statements have been adjusted to conform to the recognition, measurement and presentation requirements of IFRS

Accounting Standards and presented in US dollars (USD), which is the presentation currency of UBS Parent Bank. Balance sheet

information available for Credit Suisse Parent Bank in CHF has been translated to USD using a spot rate of 1.19 (CHF/USD) as of

31 December 2023. Income statement information available for Credit Suisse Parent Bank in CHF has been translated to USD

using an average rate of 1.12 (CHF/USD) for the year ended 31 December 2023.

Note 2: Presentation reclassification adjustments 

Presentation reclassification adjustments have been applied to Credit Suisse Parent Bank’s balance sheet and income statement

information in order to conform with UBS Parent Bank’s consolidated financial statement presentation. 

The tables below show the reclassification of historical Credit Suisse Parent Bank U.S. GAAP consolidated assets and liabilities

as of 31 December 2023 and income statement lines for the year ended 31 December 2023 from the Credit Suisse Parent Bank

presentation (horizontal captions and amounts) to the respective UBS Parent Bank asset and liability and income statement

structure (U.S. GAAP reclassified) (vertical captions and amounts). The Credit Suisse Parent Bank financial statement amounts

are presented in USD and have been translated from CHF as indicated in Note 1 above. 

7

Credit Suisse AG consolidated balance sheet as of 31 December 2023 

8

Credit Suisse AG consolidated balance sheet as of 31 December 2023 

9

Credit Suisse AG consolidated income statement for the year ended 31 December 2023 

10

Note 3: Transaction accounting adjustments

Transaction accounting adjustments include certain pro forma preliminary adjustments to conform Credit Suisse Parent Bank’s

balance sheet and income statement to UBS Parent Bank’s IFRS accounting policies and certain combination adjustments.

All pro forma adjustments have been considered on a pre- and post-tax basis. UBS Parent Bank’s internal tax assessment

concluded that there are estimated tax impacts arising from the pre-tax adjustments set out in this section. Refer to Notes 3i) and

3w) for further detail. This assessment included certain assumptions and represents UBS Parent Bank’s best estimate as to the

likely tax impacts. The assessment could change as further information becomes available, including how the entities and

businesses in each location will be reorganized, receipt of revised profit forecasts for those entities, and discussions with the

relevant tax authorities. 

The following notes reference the unaudited pro forma condensed combined financial information as of and for the year ended 31

December 2023.

Balance sheet 

a)

Reflects an adjustment to derecognize certain positions that were recognized under U.S. GAAP. Under U.S. GAAP,

lenders of securities are required to gross up their balance sheet if they receive securities as collateral (recognizing a

respective asset and liability for the securities received and the obligation to redeliver). These transactions are not

reflected in the balance sheet under IFRS Accounting Standards. Securities received as collateral and the associated

obligation to return securities received as collateral of 2.6bn recognized by Credit Suisse Parent Bank under U.S.

GAAP have been derecognized under IFRS Accounting Standards .

b)

Reflects an adjustment to reverse certain netting impacts allowable under U.S. GAAP but not under IFRS Accounting

Standards. Under U.S. GAAP, derivative financial instruments may be presented on a net basis where an enforceable

master netting agreement is in place. Offsetting rules under IFRS Accounting Standards are more restrictive,

requiring, in addition to having an enforceable right to offset upon the counterparty’s default, the right to offset if the

reporting entity itself defaults and the right and intent to offset in the normal course of business.

UBS Parent Bank has reviewed Credit Suisse Parent Bank’s offsetting under U.S. GAAP and the estimated impact of

this accounting difference as of 31 December 2023 results in an increase in Credit Suisse Parent Bank’s total assets

and liabilities by approximately 55.0bn. The table below summarizes the impact of this adjustment on the relevant

balance sheet line items. 

c)

An adjustment has been reflected to include an accrual for estimated costs to effect the merger of 48m, based on the

estimate of costs to be incurred up to closing of the Transaction for both UBS Parent Bank and Credit Suisse Parent

Bank, consisting primarily of external legal, accounting and consulting fees. An increase to liabilities of 48m for

estimated costs for Credit Suisse Parent Bank and UBS Parent Bank is reflected in the unaudited pro forma condensed

combined balance sheet line under “Other non-financial liabilities”. Refer to Note 3q) for the associated impact on the

pro forma condensed combined income statement for the year ended 31 December 2023.

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d)

Reflects an adjustment to recognize an estimated 697m provision for onerous contracts, reflecting UBS management

decisions for a service arrangement that were taken in connection with the Group merger. Under U.S. GAAP, onerous

contract provisions cannot be recognized while the respective contract is still in use; under IFRS Accounting

Standards, such provisions are recognized on the basis of a management decision to reduce usage at a future date. An

associated income statement charge to “General and administrative expenses” has been reflected in the pro forma

condensed combined income statement presented (for the year ended 31 December 2023). Refer to Note 3s) for the

associated impact on the pro forma condensed combined income statement for the year ended 31 December 2023.

e)

As mentioned in Note 3m)ii., share based payments under which Credit Suisse Parent Bank delivers shares of its

parent are considered to be cash settled under IFRS Accounting Standards , as opposed to equity settled under U.S.

GAAP, requiring the following pro forma balance sheet adjustments:

i.

recognition of a liability of 218m within “Other non-financial liabilities” with a corresponding debit to

“Retained earnings” in equity; and

ii.

reversal of the life-to-date share-based obligation of 989m recorded as “Share premium” in equity with a

corresponding credit to “Retained earnings”. 

f)

Credit Suisse AG applies defined contribution accounting for the Credit Suisse Swiss Pension plan under U.S. GAAP,

whereas under IFRS Accounting Standards defined benefit accounting is applied. A net Swiss pension asset of 77m

has been recognized in “Other non-financial assets” as of 31 December 2023 under IFRS Accounting Standards for

prepaid contributions. 

g)

For the purpose of the unaudited condensed combined pro forma information, an additional expense of 100m has been

reflected in the pro forma income statement for the year ended 31 December 2023 and a provision of 100m has been

recognized in the pro forma balance sheet as of 31 December 2023 for real estate onerous contract provisions in

connection with decisions to vacate certain premises post the Group merger . Under U.S. GAAP, onerous contract

provisions cannot be recognized while the respective contract is still in use; under IFRS Accounting Standards, such

provisions are recognized on the basis of a management decision to reduce usage. Refer to Note 3t) for the associated

impact on the pro forma condensed combined income statement for the year ended 31 December 2023.

h)

As mentioned in Note 3p), Credit Suisse Parent Bank’s U.S. GAAP expected credit loss allowances and provisions on

non-impaired exposures were higher than those under IFRS Accounting Standards as of 31 December 2023.

Therefore, a pro forma adjustment has been made to increase the carrying amount of “Loans and advances to

customers” by 68m, due to the lower expected credit loss allowance recorded against it under IFRS Accounting

Standards, and to decrease “Provisions” by 18m, to reflect the lower expected credit loss provision on off-balance

sheet commitments and guarantees under IFRS Accounting Standards .

i)

The current and deferred tax balance sheet positions of the individual entities contained in the Credit Suisse Parent

Bank consolidation perimeter have been analyzed in light of the pre-tax adjustments made in the unaudited condensed

combined pro forma balance sheet. A pro forma adjustment has been made to increase “Deferred tax assets” by 245m,

which reflected revaluations for the US and Singapore branches of Credit Suisse AG based on combined profit

forecasts following completion of the Transaction . 

Refer to Note 3w) for tax impacts on the pro forma condensed income statement for the year ended 31 December

2023 as well as other disclosures regarding taxation. 

j)

An adjustment has been made to increase provisions by 200m, relating to a difference in policy between Credit Suisse

Parent Bank under U.S. GAAP and UBS Parent Bank under IFRS Accounting Standards, where certain provisions are

measured using the low point in a range under U.S. GAAP but measured at a mid-point under IFRS Accounting

Standards (when each point in a range is as likely as any other). Refer to Note 3u) for the associated impact on the pro

forma condensed combined income statement for the year ended 31 December 2023.

k)

The Transaction is considered to be a contribution by UBS Group AG of Credit Suisse AG’s business that is merged,

under a common control basis, into UBS AG. The following Credit Suisse AG equity component reclassification

steps are required to effect the common control merger (see “Common control merger equity component

reclassifications” column in the table below):

•

Equity balances in “Share capital”, “Retained earnings” and “Other comprehensive income recognized directly

in equity, net of tax” as of 31 May 2023, the Group merger date and when UBS AG and Credit Suisse AG were

brought under common control, are reclassified to “Share premium”.

•

Equity balances accumulating between the Group merger date and 31 December 2023 are retained within their

original equity reserves and added across to the corresponding UBS AG equity balances, with the following

exceptions:

−

Foreign currency translation balances are reset to nil as of the Transaction date (as of 31 December 2023)

by analogy with what would be allowed for a first-time adopter of IFRS (given that, at the Transaction date,

the Credit Suisse AG financial information, on a carry-over basis is converted for the first time to IFRS). 

Foreign currency translation balances, recorded in “Other comprehensive income recognized directly in

equity, net of tax”, are therefore reclassified to “Share premium” as of 31 December 2023;

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−

As the foreign currency translation reserve is being reset to zero, the foreign currency risk is deemed to not

exist and therefore the net investment hedge designation is not available between the Group merger date

and 31 December 2023. Therefore, the fair value changes of the hedging instruments (originally designated

as part of the net investment hedge program) would not be recorded as part of the net investment hedge

reserve, but rather in retained earnings. Net investment hedge balances that accumulated between the Group

merger date and the date of the Transaction (which, for the purpose of the pro forma condensed combined

balance sheet is as of 31 December 2023), recognized in “Other comprehensive income recognized directly

in equity, net of tax”, are therefore reclassified to “Retained earnings”.

1

Reflects the U.S. GAAP balance sheet for Credit Suisse Parent Bank as of 31 December 2023 translated to US dollars using a spot rate of 1.19

(CHF/USD) and reclassified to reflect UBS Parent Bank’s equity component presentation.

2

Cumulative equity component impacts from the above balance sheet transaction accounting adjustments that affect “Equity attributable to

shareholders”.

l)

UBS Parent Bank has reviewed exposures and transactions with Credit Suisse Parent Bank as of 31 December 2023 to

identify intercompany balance sheet and income statement amounts. As a result, UBS Parent Bank has applied

intercompany asset and liability elimination adjustments of 22.2bn as summarized in the table below. UBS Parent

Bank also aggregated the estimated long/short positions in trading securities in both UBS Parent Bank and Credit

Suisse Parent Bank by security (CUSIP/ISIN) and aggregated the positions into a single net asset/liability amount by

individual security. This resulted in an estimated balance sheet asset and liability reduction of 689m as set out in the

table below. Refer to Note 3x) for intercompany income statement eliminations.

13

Income statement

m)

A

pro forma adjustment to decrease personnel expense by a net of 33m for the year ended 31 December 2023 has

been made. This adjustment reflects the following: 

i.

Credit Suisse Parent Bank’s and UBS Parent Bank’s income statements for the year ended 31 December

2023 include merger retention award expense from the grant date of 12 June 2023, the date of the

acquisition of Credit Suisse Group, to 31 December 2023. As the proforma condensed combined income

statement has been prepared as if the Group merger occurred on 1 January 2023, an estimate for an

additional five months of merger retention award costs of 65m has been recognized in 2023 proforma

personnel expense. 

ii.

Credit Suisse Parent Bank consolidated accounts under U.S. GAAP applied equity settled accounting for

share-based payments that it will settle using shares of its parent (rather than its own shares). Under IFRS

Accounting Standards, a subsidiary delivering its parent’s shares is required to treat such schemes as cash

settled. In addition, compensation expense has been retrospectively recalibrated to reflect the estimated

impact of a conversion from Credit Suisse Group AG shares to UBS Group AG shares (leveraging the

conversion rate taken for the Group merger on 12 June 2023) as of 1 January 2023, with a consequential

decrease in share-based compensation expense of 98m for the year ended 31 December 2023. Refer to

Note 3e) for the respective balance sheet impact. This adjustment is non-recurring in nature.

n)

The Credit Suisse Bank Swiss pension plan has been accounted for as a defined contribution plan under U.S. GAAP,

and under IFRS Accounting Standards it is accounted for as a defined benefit plan. Personnel expenses include an

estimated pro forma adjustment of 194m for the year ended 31 December 2023 that reflects, primarily, additional

expenses recognized under IFRS Accounting Standards to align future Swiss pension benefits of the Credit Suisse

pension plan to the UBS pension plan. 

o)

Under IFRS Accounting Standards, Day 1 gains on financial instruments, after taking account of any valuation

adjustments, are recognized in the income statement only when their fair value is evidenced by an observable market

source. A similar restriction does not exist under U.S. GAAP. On this basis, a debit adjustment of 65m has been

recognized in the pro forma condensed combined income statement for the year ended 31 December 2023. 

14

p)

For the purpose of the condensed combined pro forma financial information, differences between accounting for

expected credit losses between U.S. GAAP and IFRS Accounting Standards have been considered. Under U.S.

GAAP, higher provisioning in comparison with IFRS Accounting Standards is driven by expected credit losses being

measured over a credit exposure’s lifetime as opposed to the staging approach under IFRS Accounting Standards.

Accordingly, a pro forma reduction of 86m in estimated credit loss expense in the income statement has been made in

order to reduce the larger Credit Suisse Parent Bank U.S. GAAP expected credit loss expense on non-impaired

exposures to the lower IFRS Accounting Standards amount: 

i.

68m decrease in credit loss expenses relating to non-impaired Loans and advances to customers

ii.

18m decrease in credit loss expenses relating to Provisions for qualifying off-balance sheet commitments

and guarantees that are not impaired. 

Refer to Note 3h) for the respective balance sheet impact.

q)

General and administrative expenses for the year ended 31 December 2023 contain a 48m accrual for estimated costs

to effect the legal merger that are not yet reflected the balance sheet as of 31 December 2023. Refer to Note 3c) for

the respective balance sheet impact and further detail on this adjustment. This adjustment is non-recurring in nature.

r)

Under U.S. GAAP, recycling of own credit gains and losses to the income statement is recognized upon derecognition

of the related financial instrument. Under IFRS Accounting Standards there is no recycling to the income statement

and the balances are recognized, and remain in, retained earnings within equity. An estimated adjustment of 123m for

the year ended 31 December 2023 has been made to reverse the gains recognized in the income statement under U.S.

GAAP for the Credit Suisse Parent Bank, reflected as a reduction to “Other net income from financial instruments

measured at fair value through profit or loss”.

s)

As mentioned in Note 3d), an expense of 697m has been recognized in “General and administrative expenses” in

connection with the recognition of an onerous contract provision under IFRS Accounting Standards. This adjustment

is non-recurring in nature.

t)

As mentioned in Note 3g), an expense of 100m has been recognized in “General and administrative expenses” in

connection with the recognition of real estate onerous contract provisions. This adjustment is non-recurring in nature.

u)

As mentioned in Note 3j), an expense of 200m has been recognized in “General and administrative expenses” in

connection with the recognition of a provision. This adjustment is non-recurring in nature.

v)

The U.S. GAAP cash flow hedge Other Comprehensive Income (“OCI”) balance of the Credit Suisse Parent Bank

was set to zero as of the Group merger date, which, for the purpose of the pro forma condensed combined income

statement, was as of 1 January 2023. An adjustment has been made to “Net interest income” to reflect the reversal of

an estimated 579m loss related to the difference between the amortization of cash flow hedge OCI under U.S. GAAP

and the estimated amount that would have been recognized for the for the year ended 31 December 2023 following

the reset of the cash flow hedge OCI balance to zero as of 1 January 2023.

w)

Income tax expense / (benefit) has been analyzed in light of the pre -tax adjustments made in the unaudited condensed

combined pro forma income statement. A pro forma credit adjustment of 30m has been reflected in “Tax expense /

(benefit)” in respect of estimated pre-tax pro forma adjustments that relate to legal entities whose tax positions give

rise to a tax impact, and other tax adjustments. As mentioned in Note 3i), a deferred tax benefit of 245m has been

recognized in “Income tax expense / (benefit)” reflecting revaluations for the US and Singapore branches of Credit

Suisse AG based on combined profit forecasts following completion of the Transaction . 

All pro forma pre-tax adjustments for Credit Suisse Parent Bank full year ended 31 December 2023 have been

considered and no further tax expense or benefit has been recognized in connection with the pre-tax adjustments in

the pro forma condensed combined income statement as it is assumed that the other pre-tax adjustments will either not

be recognized for tax purposes, or they will generally relate to entities with tax losses carried forward that are not

recognized as deferred tax assets. Any changes to the pro forma condensed combined income statement for the year

ended 31 December 2023 in respect of these entities would, therefore, only affect the amount of their unrecognized

tax losses carried forward and would have no impact on their tax expenses or benefits for the year ended 31 December

2023. This assessment includes assumptions and represents UBS Parent Bank’s best estimate as to the likely tax

impacts. The assessment could change as further information becomes available, including how the entities and

businesses of Credit Suisse Parent Bank in each location will be reorganized, receipt of revised profit forecasts for

those entities, and discussions with the relevant tax authorities.

x)

As mentioned in Note 3l), UBS Parent Bank has reviewed exposures and transactions with Credit Suisse Parent Bank

to identify intercompany balance sheet and income statement amounts. The only material intercompany income

statement amounts impacting the line items presented relate to the remuneration of staff seconded from Credit Suisse

Parent Bank to UBS Parent Bank. Remuneration for such staff is recognized by Credit Suisse Parent Bank in “Other

income” while UBS Parent Bank records the equal and opposite expense in “General and administrative expenses”.

Accordingly, intercompany secondment income and expense of 173m recognized during the year ended 31 December

2023 has been eliminated. Refer to Note 3l) for intercompany balance sheet eliminations.