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Provisions
 12 Months Ended
Dec. 31, 2024
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
31.12.24
31.12.23
1
Provisions related to expected credit losses (IFRS 9,
Financial Instruments
)
2
320
350
Provisions related to Credit Suisse loan commitments (IFRS
 
3,
Business Combinations
)
3
997
1,924
Provisions related to litigation, regulatory and similar matters
 
(IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
)
3,602
4,020
Acquisition-related contingent liabilities relating to litigation,
 
regulatory and similar matters (IFRS 3,
Business Combinations
)
3
2,122
3,993
Restructuring, real-estate and other provisions (IAS 37,
 
Provisions, Contingent Liabilities and Contingent Assets
)
1,368
2,123
Total provisions and contingent liabilities
8,409
12,412
1 Comparative-period information has
 
been revised. Refer to
 
Note 2 for more
 
information.
 
2 Refer to Note
 
10 for more information.
 
3 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 2024
Balance at the beginning of the year
4,020
741
259
1,123
6,144
Increase in provisions recognized in the income statement
321
1,008
20
159
1,508
Release of provisions recognized in the income statement
(97)
(234)
(5)
(880)
(1,217)
Reclassifications
1,594
5
0
0
0
1,594
Provisions used in conformity with designated purpose
(2,129)
5
(704)
(18)
(52)
(2,903)
Foreign currency translation and other movements
(108)
1
(16)
(34)
(157)
Balance at the end of the year
3,602
813
240
315
4,969
1 Consists of provisions for losses resulting from legal, liability and compliance risks.
 
2 Consists of USD
383
m of provisions for onerous contracts related to real estate as of 31 December 2024 (31 December 2023:
USD
448
m), USD
334
m of
 
personnel-related restructuring
 
provisions as
 
of 31
 
December 2024
 
(31 December
 
2023: USD
294
m) and
 
onerous contracts
 
related to
 
technology.
 
3 Mainly includes
 
provisions for
reinstatement costs with respect to leased properties.
 
4 Mainly includes provisions related to employee benefits,
 
VAT and operational
 
risks.
 
5 Includes reclassifications from IFRS 3 contingent
 
liabilities to IAS 37
provisions, including the funding
 
by UBS of the offer
 
made in June 2024
 
by the Credit Suisse supply
 
chain finance funds to redeem
 
all of their outstanding units.
 
As a result of the
 
offer, UBS reclassified
 
USD
944
m
from IFRS 3 acquisition-related contingent liabilities to IAS 37 provisions related to litigation, regulatory and similar matters, as the probability
 
of an outflow of resources increased, bringing the total IAS 37 provision
for this matter to USD
1,421
m, with no impact on
 
the income statement. The
 
provision has been used
 
to recognize the funding obligation,
 
which was accounted for
 
as a derivative liability
 
with a fair value
 
of USD
1,421
m. Post the expiry of the offer, USD
92
m was reclassified from derivative liabilities back into IAS 37 provisions in relation to investors
 
who did not accept the redemption offer.
Restructuring provisions
 
are generally
 
recognized as
 
a consequence
 
of management
 
agreeing to
 
materially change
 
the
scope of the
 
business or the
 
manner in which
 
it is conducted,
 
including changes in
 
management structures. 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.