Related parties

12 Months Ended

Dec. 31, 2021

Entity [Table]

Disclosure Of Related Party Explanatory

Note

31 Related parties

UBS defines related parties as associates (entities

that

are

significantly influenced by UBS), joint ventures (entities in which

UBS shares control with another party), post-employment benefit

plans for UBS employees, key management personnel, close

family members of key management personnel and entities that

are, directly or indirectly, controlled or jointly controlled by key

management personnel or their close family members. Key

management personnel is defined as members of the Board of

Directors (BoD) and Group Executive Board (GEB).

a) Remuneration of key management personnel

The Chairman of the BoD has a specific management employment contract and receives pension benefits upon retirement. Total

remuneration of the Chairman of the BoD and all GEB members is included in the table below.

Remuneration of key management personnel

USD million, except where indicated

31.12.21

31.12.20

31.12.19

Base salaries and other cash payments

1

31

33

32

Incentive awards – cash

2

17

18

14

Annual incentive award under DCCP

26

27

21

Employer’s contributions to retirement benefit plans

3

3

3

Benefits in kind, fringe benefits (at market value)

1

1

1

Share-based compensation

3

45

47

37

Total

124

129

108

Total (CHF million)

4

113

121

107

1 May include role-based allowances in line with market practice and regulatory requirements. 2 The cash portion may also include blocked shares in line with regulatory requirements. 3 Compensation expense

is based on the share price on grant date taking into account performance conditions. Refer to Note 27 for more information. For GEB members, share-based compensation for 2021, 2020 and 2019 was entirely

composed of LTIP awards.For the Chairman of the BoD the share-based compensation for 2021, 2020 and 2019 was entirely composed of UBS shares. 4 Swiss franc amounts disclosed represent the respective US

dollar amounts translated at the applicable performance award currency exchange rates (2021: USD / CHF

0.92

; 2020: USD / CHF

0.94

; 2019: USD / CHF

0.99

).

The independent members of the BoD do not have employment

or service contracts with UBS, and thus are not entitled to benefits

upon termination of their service on the BoD. Payments to these

individuals for their services as external board members amounted

to USD

7.5

 million (CHF

6.9

 million) in 2021, USD

7.0

 million

(CHF

6.6

 million) in 2020 and USD

7.3

 million (CHF

7.3

 million) in

2019.

b) Equity holdings of key management personnel

Equity holdings of key management personnel

1

31.12.21

31.12.20

Number of shares held by members of the BoD, GEB and parties closely linked to them

2

4,597,006

5,288,317

1 No options were held in 2021 and 2020 by non-independent members of the BoD and any GEB member or any of its related parties. 2 Excludes shares granted under variable compensation plans with forfeiture

provisions.

Of the share totals above, no shares were held by close family

members of key management personnel on 31 December 2021

and 31 December 2020. No shares were held by entities that are

directly or indirectly controlled or jointly controlled by key

management personnel or their close family members on

31 December 2021 and 31 December 2020. As of 31 December

2021, no member of the BoD or GEB was the beneficial owner of

more than 1% of UBS Group AG’s shares.

c) Loans, advances and mortgages to key management personnel

The non-independent members of the BoD and GEB members are

granted loans, fixed advances and mortgages in the ordinary

course of business on substantially the same terms and conditions

that are available to other employees, including interest rates and

collateral, and neither involve more than

the normal risk of

collectability nor contain any other unfavorable features for the

firm. Independent BoD members are granted loans and

mortgages in the ordinary course of business at general market

conditions.

Movements in the loan, advances and mortgage balances are

as follows

Loans, advances and mortgages to key management personnel

1

USD million, except where indicated

2021

2020

Balance at the beginning of the year

38

33

Additions

11

14

Reductions

(15)

(8)

Balance at the end of the year

2

34

38

Balance at the end of the year (CHF million)

2, 3

31

34

1 All loans are secured loans. 2 There were no unused uncommitted credit facilities as of 31 December 2021 and 31 December 2020. 3 Swiss franc amounts disclosed represent the respective US dollar amounts

translated at the relevant year-end closing exchange rate.

d) Other related-party transactions with entities controlled by key management personnel

In 2021 and 2020, UBS did not enter into transactions with

entities that are directly or indirectly controlled or jointly

controlled by UBS’s key management personnel or their close

family members and as of 31 December 2021, 31 December

20

20

and 31

December 201

9

, there were no outstanding

balances related to such transactions. Furthermore, in 2021 and

2020, entities controlled by key management personnel did not

sell any goods or provide any services to UBS, and therefore did

not receive any fees from UBS. UBS also did not provide services

to such entities in 2021 and 2020, and therefore also received no

fees.

e) Transactions with associates and joint ventures

Loans to and outstanding receivables from associates and joint ventures

USD million

2021

2020

Carrying amount at the beginning of the year

630

982

Additions

133

527

Reductions

(497)

(1,001)

Foreign currency translation

(14)

123

Carrying amount at the end of the year 

251

630

of which: unsecured loans and receivables

243

621

Other transactions with associates and joint ventures

As of or for the year ended

USD million

31.12.21

31.12.20

Payments to associates and joint ventures for goods and services received

157

139

Fees received for services provided to associates and joint ventures

104

128

Liabilities to associates and joint ventures

127

91

Commitments and contingent liabilities to associates and joint ventures

7

9

Refer to Note 29 for an overview of investments in associates and joint ventures

UBS AG

Entity [Table]

Disclosure Of Related Party Explanatory

Note 31 Related parties

UBS AG defines related parties as associates (entities that are

significantly influenced by UBS), joint ventures (entities in which

UBS shares control with another party), post-employment benefit

plans for UBS AG employees, key management personnel, close

family members of key management personnel and entities that

are, directly or indirectly, controlled or jointly controlled by key

management personnel or their close family members. Key

management personnel is defined as members of the Board of

Directors (BoD) and Executive Board (EB).

a) Remuneration of key management personnel

The Chairman of the BoD has a specific management employment contract and receives pension benefits upon retirement. Total

remuneration of the Chairman of the BoD and all EB members is included in the table below.

The independent members of the BoD do not have employment

or service contracts with UBS AG, and thus are not entitled to

benefits upon termination of their service on the BoD. Payments

to these individuals for their services as external board members

amounted to USD

7.5

 million (CHF

6.9

 million) in 2021, USD

7.0

million (CHF

6.6

 million) in 2020 and USD

7.3

 million (CHF

7.3

million) in 2019.

b) Equity holdings of key management personnel

Equity holdings of key management personnel

1

31.12.21

31.12.20

Number of shares held by members of the BoD, EB and parties closely linked to them

2

4,175,515

4,956,640

1 No options were held in 2021 and 2020 by non-independent members of the BoD and any GEB member or any of its related parties. 2 Excludes shares granted under variable compensation plans with forfeiture

provisions.

Of the share totals above, no shares were held by close family

members of key management personnel on 31 December 2021

and 31 December 2020. No shares were held by entities that are

directly or indirectly controlled or jointly controlled by key

management personnel or their close family members on

31 December 2021 and 31 December 2020. As of 31 December

2021, no member of the BoD or EB was the beneficial owner of

more than 1% of UBS Group AG’s shares.

c) Loans, advances and mortgages to key management personnel

The non-independent members of the BoD and EB members are

granted loans, fixed advances and mortgages in the ordinary

course of business on substantially the same terms and conditions

that are available to other employees, including interest rates and

collateral, and neither involve more than the normal risk of

collectability nor contain any other unfavorable features for the

firm. Independent BoD members are granted loans and

mortgages in the ordinary course of business at general market

conditions.

Movements in the loan, advances and mortgage balances are

as follows.

Loans, advances and mortgages to key management personnel

1

USD million, except where indicated

2021

2020

Balance at the beginning of the year

31

23

Additions

11

13

Reductions

(15)

(5)

Balance at the end of the year

2

28

31

Balance at the end of the year (CHF million)

2, 3

25

28

1 All loans are secured loans. 2 There were no unused uncommitted credit facilities as of 31 December 2021 and 31 December 2020. 3 Swiss franc amounts disclosed represent the respective US dollar amounts

translated at the relevant year-end closing exchange rate.

d) Other related-party transactions with entities controlled by key management personnel

In 2021 and 2020, UBS AG did not enter into transactions with

entities that are

directly or indirectly controlled or jointly

controlled by UBS AG’s key management personnel or their close

family members

and as of 31

December

2021

, 31

December

20

20

and 31

December 201

9

, th

ere were no outstanding

balances related to such transactions. Furthermore, in 2021 and

2020, entities controlled by key management personnel did not

sell any goods or provide any services to UBS AG, and therefore

did not receive any fees from UBS AG. UBS AG also did not

provide services to such entities in 2021 and 2020, and therefore

also received no fees.

e) Transactions with associates and joint ventures

Loans to and outstanding receivables from associates and joint ventures

USD million

2021

2020

Carrying amount at the beginning of the year

630

982

Additions

133

527

Reductions

(497)

(1,001)

Foreign currency translation

(14)

123

Carrying amount at the end of the year 

251

630

of which: unsecured loans and receivables

243

621

Other transactions with associates and joint ventures

As of or for the year ended

USD million

31.12.21

31.12.20

Payments to associates and joint ventures for goods and services received

157

139

Fees received for services provided to associates and joint ventures

104

128

Liabilities to associates and joint ventures

127

91

Commitments and contingent liabilities to associates and joint ventures

7

9

Refer to Note 29 for an overview of investments in associates and joint ventures

f) Receivables and payables from / to UBS Group AG and other subsidiaries of UBS Group AG

USD million

31.12.21

31.12.20

Receivables

Loans and advances to customers

1,049

1,470

Financial assets at fair value held for trading

187

76

Other financial assets measured at amortized cost

45

38

Payables

Customer deposits

2,828

3,324

Funding from UBS Group AG

57,295

53,979

Other financial liabilities measured at amortized cost

1,887

1,820

Other financial liabilities designated at fair value

1

2,340

1,375

1 Represents funding recognized from UBS Group AG that is designated at fair value. Refer to Note 19b for more information.