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Provisions
 12 Months Ended
Dec. 31, 2023
Disclosure Of Other Provisions [Line Items]  
Disclosure Of Provisions Explanatory
 
 
Note 18
 
Provisions and contingent liabilities
a) Provisions
The table below presents an overview of total provisions
 
and contingent liabilities.
 
 
 
 
 
 
 
 
USD m
31.12.23
31.12.22
Provisions related to expected credit losses (IFRS 9,
Financial Instruments
)
1
350
201
Provisions related to Credit Suisse loan commitments (IFRS
 
3,
Business Combinations
)
2
1,924
Provisions related to litigation, regulatory and similar matters
 
(IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
)
4,020
2,586
Acquisition-related contingent liabilities (IFRS 3,
Business Combinations
)
2
3,832
Restructuring, real-estate and other provisions (IAS 37,
 
Provisions, Contingent Liabilities and Contingent Assets
)
2,123
456
Total provisions and contingent liabilities
12,250
3,243
of which: Credit Suisse
2
9,681
1 Refer to Note 10 for more information.
 
2 Refer to Note 2 for more information about the acquisition of the Credit Suisse Group.
The
 
table
 
below
 
presents
 
additional
 
information
 
for
 
provisions
 
under
 
IAS
 
37,
Provisions,
 
Contingent
 
Liabilities
 
and
Contingent Assets
.
 
 
 
 
 
 
 
 
 
USD m
Litigation,
regulatory and
similar matters
1
Restructuring
2
Real estate
3
Other
4
Total 2023
Balance at the beginning of the year
2,586
130
129
197
3,042
Provisions recognized upon the acquisition of the Credit
 
Suisse Group
5
2,883
68
108
578
3,637
Increase in provisions recognized in the income statement
909
1,031
12
492
2,444
Release of provisions recognized in the income statement
(97)
(129)
(1)
(137)
(365)
Provisions used in conformity with designated purpose
(2,344)
(370)
(15)
(29)
(2,759)
Foreign currency translation and other movements
85
12
27
21
145
Balance at the end of the year
4,020
741
259
1,123
6,144
of which: Credit Suisse
5
2,210
519
114
918
3,762
1 Consists of provisions for losses resulting from legal, liability and compliance risks.
 
2 Consists of USD
448
m of provisions for onerous contracts related to real estate as of 31 December 2023 (31 December 2022:
USD
28
m) and
 
USD
294
m of
 
personnel-related restructuring
 
provisions as
 
of 31
 
December 2023
 
(31 December
 
2022: USD
102
m).
 
3 Mainly includes
 
provisions for
 
reinstatement costs
 
with respect
 
to leased
properties.
 
4 Mainly includes provisions related to onerous contracts and employee benefits.
 
5 Refer to Note 2 for more information about the acquisition of the Credit Suisse Group.
Restructuring provisions relate to onerous contracts for property and personnel-related provisions.
 
Onerous contracts for
property are recognized when UBS is committed
 
to pay for non-lease components, such
 
as utilities, service charges, taxes
and maintenance,
 
when a
 
property
 
is vacated
 
or not
 
fully recovered
 
from sub-tenants
 
.
 
Personnel-related
 
restructuring
provisions are
 
generally used
 
within a
 
short period
 
of time.
 
The level
 
of personnel-related
 
provisions can
 
change when
natural
 
staff
 
attrition
 
reduces
 
the
 
number
 
of
 
people
 
affected
 
by
 
a
 
restructuring
 
event,
 
and
 
therefore
 
results
 
in
 
lower
estimated costs.
Other provisions mainly include
 
provisions related to onerous
 
contracts,
 
employee benefits and operational
 
risks.
 
Onerous
contracts are
 
recognized for
 
certain contractual
 
arrangements where
 
the costs
 
exceed the
 
economic benefits
 
expected
to be received.
Information about provisions
 
and contingent liabilities
 
in respect of
 
litigation, regulatory
 
and similar matters,
 
as a class,
is included in Note 18b. There are no material contingent
 
liabilities associated with the other classes of provisions.