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Expected credit loss measurement
 12 Months Ended
Dec. 31, 2024
Disclosure Of Provision Matrix [Line Items]  
Expected credit loss measurement
 
 
Additional information
Note 20
 
Expected credit loss measurement
a) Expected credit losses in the period
Total net credit loss
 
expenses were
 
USD
551
m in 2024,
 
reflecting
 
net credit
 
loss releases
 
of USD
99
m related
 
to stage 1
 
and
2 positions and net
 
credit loss expenses of USD
651
m related to
 
credit-impaired (stage 3 and purchased credit-impaired)
positions,
 
predominantly
 
in the corporate
 
lending portfolios.
›
Refer to Note 20b for more information regarding changes to ECL
 
models, scenarios, scenario weights and the post-model
adjustments and to Note 20c for more information
 
regarding the development of ECL allowances and provisions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Purchased
 
Total
For the year ended 31.12.24
Global Wealth Management
(60)
41
3
(16)
Personal & Corporate Banking
(63)
487
(21)
404
Asset Management
(1)
0
0
(1)
Investment Bank
56
42
0
97
Non-core and Legacy
(30)
42
57
69
Group Items
(2)
0
0
(2)
Total
(99)
612
39
551
For the year ended 31.12.23
Global Wealth Management
127
27
13
166
Personal & Corporate Banking
271
183
27
482
Asset Management
1
(1)
0
0
Investment Bank
110
78
2
190
Non-core and Legacy
78
91
25
193
Group Items
5
0
0
6
Total
593
378
67
1,037
For the year ended 31.12.22
Global Wealth Management
(5)
5
0
Personal & Corporate Banking
27
12
39
Asset Management
0
0
0
Investment Bank
6
(18)
(12)
Non-core and Legacy
0
2
2
Group Items
1
0
1
Total
29
0
29
 
b) Changes to
 
ECL models, scenarios,
 
scenario weights
 
and key inputs
 
Refer to
 
Note 1a for
 
information about
 
the
 
principles governing
 
expected credit
 
loss (ECL)
 
models, scenarios,
 
scenario
weights and
 
key inputs.
 
Governance
Comprehensive
 
cross-functional
 
and cross-divisional
 
governance
 
processes are
 
in place
 
and are
 
used to
 
discuss and
 
approve
scenario updates and weights,
 
to assess whether
 
significant increases in credit
 
risk resulted in
 
stage transfers, to
 
review
model outputs
 
and to reach conclusions
 
regarding post-model
 
adjustments.
 
Model changes
During 2024, the model review and enhancement
 
process led to adjustments of the probability
 
of default (PD), loss given
default (LGD) and credit
 
conversion factor
 
(CCF) models, resulting
 
in a USD
49
m increase in ECL allowances.
 
This included
an increase
 
of USD
68
m in
 
the Investment
 
Bank related
 
to large
 
corporate
 
clients and
 
a USD
17
m decrease
 
in Global
 
Wealth
Management related
 
to lending for
 
ship financing.
 
Scenario and
 
key input updates
During 2024, the scenarios and related macroeconomic
 
factors were updated from those applied
 
at the end of 2023 by
considering
 
the
 
prevailing
 
economic
 
and
 
political
 
conditions
 
and
 
uncertainty.
 
The
 
review
 
focused
 
on
 
events
 
that
significantly changed
 
the economic
 
outlook during
 
the
 
year:
 
the milder
 
inflation outlook
 
and the
 
start of
 
a monetary
policy easing cycle, and
 
geopolitical uncertainties. ECLs for legacy
 
Credit Suisse positions were calculated based
 
on legacy
Credit Suisse models, including the same scenario
 
and scenario weight inputs as for UBS’s existing business
 
activity.
Baseline
 
scenario
: the
 
projections
 
of the
 
baseline scenario,
 
which are
 
aligned
 
to the
 
economic and
 
market assumptions
 
used
for
 
UBS’s
 
business
 
planning
 
purposes,
 
are
 
broadly
 
in
 
line
 
with
 
external
 
benchmarks,
 
such
 
as
 
those
 
from
 
Bloomberg
Consensus, Oxford
 
Economics and
 
the International
 
Monetary Fund World
 
Economic Outlook.
 
The expectation
 
for 2025 is
that global growth
 
slows due to rising
 
uncertainty,
 
with the prospect
 
of renewed tariff
 
escalation,
 
and a deceleration
 
in US
economic
 
growth.
 
Unemployment
 
rates
 
are forecast
 
to increase
 
somewhat
 
from their
 
2024 levels.
 
After
 
declining
 
over 2024,
long-term interest rates are expected to
 
remain broadly stable in 2025.
 
The outlook for house
 
prices worldwide remains
resilient,
 
including in
 
Switzerland.
Mild
 
debt crisis
 
scenario
:
The first
 
hypothetical
 
downside
 
scenario
 
is the
 
mild debt
 
crisis
 
scenario.
 
The mild
 
debt crisis
 
assumes
that political, solvency and
 
liquidity concerns cause
 
a
 
sell-off of
 
sovereign debt in
 
emerging markets and
 
the peripheral
Eurozone. The global economy
 
and financial markets are
 
negatively affected,
 
and central banks are assumed
 
to ease their
monetary policy.
Stagflationary geopolitical crisis scenario
:
The second
 
downside scenario is
 
aligned with
 
the 2024
 
Group binding
 
stress
scenario and was updated in 2024
 
to reflect expected risks, resulting in minimal changes. Geopolitical tensions cause an
escalation
 
of security
 
concerns
 
and undermine
 
globalization.
 
The ensuing
 
economic
 
regionalization
 
leads
 
to a
 
surge
 
in global
commodity prices and further disruptions of supply chains and raises the specter of
 
prolonged stagflation. Central banks
are forced
 
to further tighten
 
monetary policy
 
to contain inflationary
 
pressures.
Asset price appreciation
 
scenario
:
The upside scenario
 
is based on positive
 
developments,
 
such as an easing of
 
geopolitical
tensions across
 
the globe
 
and a rebound
 
in Chinese
 
economic growth.
 
A combination
 
of lower commodity
 
prices, effective
monetary
 
policies
 
and easing
 
supply chain
 
disruptions
 
helps to
 
reduce inflation.
 
Improved
 
consumer
 
and business
 
sentiment
lead to
 
a global
 
economic rebound,
 
enabling central
 
banks to
 
normalize interest
 
rates, which
 
causes asset
 
prices to
 
increase
significantly.
The table below details the key assumptions for the four scenarios applied
 
as of 31 December 2024.
Scenario generation, review process and governance
A
 
team
 
of
 
economists
 
within
 
Group
 
Risk
 
Control
 
develops
 
the
 
forward-looking
 
macroeconomic
 
assumptions,
 
with
 
a
broad range of experts also being involved in that
 
process.
The scenarios,
 
their weights
 
and the
 
key macroeconomic
 
and other
 
factors are
 
subject to
 
a critical
 
assessment by
 
the
IFRS 9 Scenario
 
Sounding Sessions
 
and ECL
 
Management
 
Forum, which
 
include senior
 
management
 
from Group
 
Risk
and Group
 
Finance. Important
 
aspects for
 
the review
 
include whether
 
there may
 
be particular
 
credit risk
 
concerns that
may not be capable
 
of being addressed systematically
 
and require post-model adjustments
 
for stage allocation and
 
ECL
allowances.
 
The Group Model
 
Governance Committee,
 
as the highest
 
authority under UBS’s
 
model governance framework,
 
ratifies
the decisions taken by the ECL Management Forum.
 
Scenario weights and post-model adjustments
Scenario weights, as illustrated in the table below,
 
are unchanged.
 
However, unquantifiable risks continue to be relevant, as the
 
geopolitical risks remained high in 2024, and the
 
impact on
the world economy from
 
escalations with unforeseeable consequences could be
 
severe. In the near
 
term, this uncertainty
relates
 
primarily
 
to
 
developments
 
in
 
the
 
Russia–Ukraine
 
war
 
and
 
Middle
 
East
 
conflicts.
 
Models,
 
which
 
are
 
based
 
on
supportable
 
statistical
 
information
 
from
 
past
 
experiences
 
regarding
 
interdependencies
 
of
 
macroeconomic
 
factors
 
and
their implications for credit risk portfolios, cannot comprehensively reflect such extraordinary events, such as a pandemic
or a
 
fundamental change
 
in the
 
world political
 
order. Rather
 
than creating
 
multiple additional
 
scenarios to
 
attempt to
gauge these
 
risks and
 
applying model
 
parameters that
 
lack supportable
 
information and
 
cannot be
 
robustly validated,
management continued to also apply post-model adjustments.
 
Total
 
stage
 
1 and
 
2
 
allowances
 
and
 
provisions
 
were
 
USD
946
m
 
as
 
of
 
31 December
 
2024
 
and
 
included
 
post-model
adjustments of
 
USD
235
m (31 December
 
2023: USD
326
m). Post-model
 
adjustments are
 
to address
 
uncertainty levels,
including those arising from the
 
geopolitical situation, and to align Credit
 
Suisse’s model results with the
 
results expected
under the applicable UBS model after the migration of positions.
 
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Economic scenarios and weights applied
Assigned weights in %
ECL scenario
31.12.24
31.12.23
Asset price appreciation / inflation
0.0
0.0
Baseline
60.0
60.0
Mild debt crisis
15.0
15.0
Stagflationary geopolitical crisis
25.0
25.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Scenario assumptions
One year
 
Three years cumulative
 
31.12.24
Asset price
inflation
Baseline
Mild debt
crisis
Stagflationary
geopolitical
crisis
 
Asset price
inflation
Baseline
Mild debt
crisis
Stagflationary
geopolitical
crisis
 
Real GDP growth (percentage change)
United States
3.5
2.0
(1.4)
(4.8)
8.6
5.5
0.8
(4.4)
Eurozone
2.5
0.9
(1.7)
(5.6)
5.6
3.2
(0.1)
(5.7)
Switzerland
2.7
0.9
(1.1)
(4.8)
6.2
4.2
0.4
(4.9)
Consumer price index (percentage change)
 
United States
2.3
2.6
0.0
10.0
8.1
7.8
2.5
15.8
Eurozone
2.0
2.2
0.0
9.6
7.3
5.9
2.0
14.8
Switzerland
1.4
0.7
(0.2)
5.8
5.7
2.7
1.4
10.7
Unemployment rate (end-of-period level, %)
United States
3.1
4.3
6.8
9.8
3.0
4.1
8.1
12.4
Eurozone
6.0
7.0
7.9
10.5
6.0
6.8
8.3
11.7
Switzerland
2.3
2.6
3.4
4.6
2.3
2.5
4.2
5.5
Fixed income: 10-year government bonds (change in yields, basis points)
USD
0
77
(137)
270
45
82
(77)
245
EUR
0
25
(113)
245
38
35
(68)
215
CHF
0
(4)
(22)
195
38
11
(1)
180
Equity indices (percentage change)
S&P 500
20.0
12.0
(28.1)
(56.5)
51.7
26.7
(14.0)
(51.2)
EuroStoxx 50
16.0
(0.6)
(27.9)
(56.6)
41.7
9.9
(18.3)
(52.7)
SPI
14.0
(0.6)
(26.0)
(56.6)
37.9
8.0
(13.0)
(52.7)
Swiss real estate (percentage change)
Single-Family Homes
 
4.5
3.2
(4.3)
(18.5)
10.7
8.8
(3.0)
(28.6)
Other real estate (percentage change)
United States (S&P / Case–Shiller)
6.3
3.4
(7.6)
(20.2)
16.8
11.9
(5.2)
(30.5)
Eurozone (House Price Index)
4.5
3.7
(6.1)
(8.4)
10.7
11.6
(5.6)
(12.9)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Scenario assumptions
One year
 
Three years cumulative
 
31.12.23
Asset price
inflation
Baseline
Mild debt
crisis
Stagflationary
geopolitical
crisis
 
Asset price
inflation
Baseline
Mild debt
crisis
Stagflationary
geopolitical
crisis
 
Real GDP growth (percentage change)
United States
4.0
0.1
(1.6)
(4.8)
9.1
4.4
0.6
(4.4)
Eurozone
3.0
0.5
(1.7)
(5.6)
6.2
2.9
(0.1)
(5.7)
Switzerland
3.0
1.4
(1.2)
(4.8)
6.6
4.4
0.3
(4.9)
Consumer price index (percentage change)
 
United States
2.5
2.3
(0.1)
10.0
8.1
7.1
2.3
15.8
Eurozone
2.3
2.0
(0.2)
9.6
7.4
6.1
1.8
14.8
Switzerland
2.1
1.5
(0.4)
5.8
6.2
4.3
0.8
10.7
Unemployment rate (end-of-period level, %)
United States
3.0
4.4
6.3
9.2
3.0
4.4
7.7
11.8
Eurozone
6.0
6.9
8.2
10.6
6.0
6.8
9.0
11.8
Switzerland
1.6
2.3
2.9
4.1
1.5
2.3
3.8
5.0
Fixed income: 10-year government bonds (change in yields, basis points)
USD
13
(82)
(215)
270
37
(78)
(155)
245
EUR
20
(90)
(185)
225
58
(78)
(140)
195
CHF
25
(41)
(73)
195
63
(34)
(28)
180
Equity indices (percentage change)
S&P 500
20.0
15.3
(26.6)
(51.5)
51.7
28.1
(12.2)
(45.6)
EuroStoxx 50
20.0
12.0
(26.4)
(51.6)
46.6
22.9
(16.6)
(47.2)
SPI
15.0
4.6
(24.5)
(51.6)
39.2
15.9
(11.2)
(47.2)
Swiss real estate (percentage change)
Single-Family Homes
 
6.6
(1.5)
(4.4)
(18.5)
14.0
0.8
(3.0)
(28.6)
Other real estate (percentage change)
United States (S&P / Case–Shiller)
8.1
0.6
(8.6)
(20.0)
19.7
5.8
(5.2)
(30.2)
Eurozone (House Price Index)
7.0
0.6
(5.9)
(8.4)
15.4
6.4
(5.2)
(12.9)
 
c) Development of ECL allowances and provisions
 
The ECL allowances and provisions recognized
 
in the period are impacted by a variety
 
of factors, such as:
–
the effect of selecting and updating forward-looking scenarios
 
and the respective weights;
–
origination of new instruments during the period;
 
–
the effect of
 
passage of
 
time (lower residual
 
lifetime PD and
 
the effect of
 
discount unwind) as
 
the ECL on
 
an instrument
for the remaining lifetime decreases (all other factors remaining
 
the same);
–
derecognition of instruments in the period;
–
change in individual asset quality of instruments;
–
movements
 
from
 
a
 
maximum
 
12-month
 
ECL to
 
the
 
recognition
 
of lifetime
 
ECL (and
 
vice versa)
 
following transfers
between stages 1 and 2;
 
–
movements from stages 1 and 2 to stage 3 (credit-impaired status)
 
when default has become certain and PD increases
to 100% (or vice versa);
–
changes in models or updates to model parameters;
–
write-off; and
–
foreign exchange translations for assets denominated in
 
foreign currencies.
The
 
table
 
below
 
explains
 
the
 
changes
 
in
 
the
 
ECL
 
allowances
 
and
 
provisions
 
for
 
on-
 
and
 
off-balance
 
sheet
 
financial
instruments and credit lines within the scope of ECL requirements between the beginning and the end of
 
the period due
to the factors listed above.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Development of ECL allowances and
 
provisions
USD m
Total
Stage 1
Stage 2
Stage 3
PCI
Balance as of 31 December 2023
(2,261)
(700)
(416)
(993)
(153)
Net movement from new and derecognized transactions
1
37
30
(21)
29
0
of which: Private clients with mortgages
2
(6)
8
0
0
of which: Real estate financing
8
5
3
0
0
of which: Large corporate clients
(12)
(6)
(34)
28
0
of which: SME clients
10
4
5
0
0
of which: Other
30
33
(3)
0
1
 
of which: Loans to financial advisors
(2)
(2)
0
0
0
Remeasurements with stage transfers
2
(509)
32
(53)
(488)
0
of which: Private clients with mortgages
(6)
0
(7)
0
0
of which: Real estate financing
(8)
2
(4)
(5)
0
of which: Large corporate clients
(100)
21
(20)
(101)
0
of which: SME clients
(295)
3
(11)
(287)
0
of which: Other
(100)
6
(10)
(96)
1
Remeasurements without stage transfers
3
(30)
127
36
(153)
(40)
of which: Private clients with mortgages
27
18
18
(7)
(2)
of which: Real estate financing
44
16
5
6
17
of which: Large corporate clients
29
55
31
(25)
(32)
of which: SME clients
(90)
5
2
(97)
0
of which: Other
(40)
32
(19)
(29)
(23)
 
of which: Sovereign
(9)
12
(21)
0
0
Model changes
4
(49)
(14)
(35)
0
0
Movements with profit or loss impact
5
(551)
175
(74)
(612)
(39)
Movements without profit or loss impact (write-off, FX and other)
6
305
37
31
353
(116)
Balance as of 31 December 2024
(2,507)
(487)
(459)
(1,253)
(309)
1 Represents the
 
increase and decrease
 
in allowances and
 
provisions resulting from
 
financial instruments (including
 
guarantees
 
and facilities) that
 
were newly originated,
 
purchased or renewed
 
and from the
 
final
derecognition of loans
 
or facilities on
 
their maturity
 
date or earlier.
 
2 Represents the
 
remeasurement between 12-month
 
and lifetime ECL
 
due to stage
 
transfers.
 
3 Represents the
 
change in allowances
 
and
provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure
 
profile, PD and LGD changes, and unwinding of the time value.
 
4 Represents the change in the allowances and provisions related to changes in
 
models and methodologies.
 
5 Includes ECL movements from new and derecognized transactions, remeasurement changes, and model
and methodology changes.
 
6 Represents the decrease in allowances and
 
provisions resulting from write-offs of the ECL allowance
 
against the gross carrying amount when all or
 
part of a financial asset is deemed
uncollectible or forgiven and movements in foreign exchange rates.
Movements
 
with
 
profit
 
or
 
loss
 
impact
:
Stage 1
 
and
 
2
 
ECL
 
allowances
 
and
 
provisions
 
decreased
 
on
 
a
 
net
 
basis
 
by
USD
169
m.
– Net movement
 
from new
 
and derecognized transactions
 
includes stage 1 releases
 
of USD
30
m and stage 2
 
expenses
of USD
21
m. Stage 1
 
releases are mainly
 
driven by releases
 
on other smaller
 
segments, mainly due
 
to repayments. Stage 2
expenses are predominantly driven by expenses
 
on the corporate lending portfolios.
– Remeasurements with
 
stage transfers
 
include USD
53
m expenses
 
in stage 2, following
 
corporate and real
 
estate lending
credit reviews and transfers
 
to stage 2.
– Model changes:
refer to Note 20b for more information.
Movements without
 
profit or
 
loss impact
:
Stage 1 and
 
2 allowances
 
decreased
 
by USD
68
m, almost
 
entirely driven
 
by
foreign exchange effects.
Stage 3
 
and PCI
 
allowances
 
decreased
 
by
 
USD
237
m,
 
driven
 
by
 
net
 
write-offs
 
of
 
USD
348
m,
 
partly
 
offset
 
by
 
foreign
exchange and other movements of USD
111
m.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Development of ECL allowances and
 
provisions
USD m
Total
Stage 1
Stage 2
Stage 3
PCI
Balance as of 31 December 2022
(1,091)
(259)
(267)
(564)
0
Acquisition of Credit Suisse AG portfolios
(541)
(541)
0
0
0
Net movement from new and derecognized transactions
1
14
(2)
9
7
0
of which: Private clients with mortgages
(4)
(7)
3
0
0
of which: Real estate financing
1
(2)
3
0
0
of which: Large corporate clients
18
8
3
7
0
of which: SME clients
(2)
(2)
0
0
0
of which: Other
1
1
0
0
0
 
of which: Financial intermediaries and hedge funds
(1)
(1)
0
0
0
 
of which: Loans to financial advisors
0
0
0
0
0
Remeasurements with stage transfers
2
(507)
42
(149)
(400)
0
of which: Private clients with mortgages
(12)
2
(3)
(12)
0
of which: Real estate financing
(35)
8
(27)
(16)
0
of which: Large corporate clients
(223)
17
(21)
(220)
0
of which: SME clients
(167)
6
(59)
(115)
0
of which: Other
(69)
8
(39)
(38)
0
 
of which: Financial intermediaries and hedge funds
1
0
0
0
0
of which: Loans to financial advisors
1
2
(1)
0
0
Remeasurements without stage transfers
3
17
58
12
14
(67)
of which: Private clients with mortgages
3
1
16
(3)
(11)
of which: Real estate financing
(1)
5
3
(1)
(9)
of which: Large corporate clients
(42)
(18)
(1)
(8)
(16)
of which: SME clients
65
31
1
44
(11)
of which: Other
(7)
39
(8)
(18)
(20)
 
of which: Sovereign
(37)
0
(15)
0
(22)
 
of which: Loans to financial advisors
(7)
1
0
(8)
0
Model changes
4
(22)
(14)
(8)
0
0
Movements with profit or loss impact
5
(1,037)
(457)
(136)
(378)
(67)
Movements without profit or loss impact (write-off, FX and other)
6
(132)
17
(13)
(50)
(86)
Balance as of 31 December 2023
(2,261)
(700)
(416)
(993)
(153)
1 Represents the
 
increase and decrease
 
in allowances and
 
provisions resulting from
 
financial instruments (including
 
guarantees and facilities)
 
that were newly
 
originated, purchased or
 
renewed and from
 
the final
derecognition of loans
 
or facilities on
 
their maturity
 
date or earlier.
 
2 Represents the
 
remeasurement between 12-month
 
and lifetime ECL
 
due to stage
 
transfers.
 
3 Represents the
 
change in allowances
 
and
provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure
 
profile, PD and LGD changes, and unwinding of the time value.
 
4 Represents the change in the allowances and provisions related to changes in
 
models and methodologies.
 
5 Includes ECL movements from new and derecognized transactions, remeasurement changes, and model
and methodology changes.
 
6 Represents the decrease in allowances and
 
provisions resulting from write-offs of the ECL allowance
 
against the gross carrying amount when all or
 
part of a financial asset is deemed
uncollectible or forgiven and movements in foreign exchange rates.
As explained in Note 1a, the assessment of a significant increase in credit risk (an
 
SICR) considers a number of qualitative
and quantitative
 
factors to
 
determine whether
 
a stage
 
transfer between
 
stage 1 and
 
stage 2 is
 
required,
 
although the
primary assessment considers changes
 
in PD based on
 
rating analyses and economic
 
outlook. Additionally, UBS takes into
consideration counterparties
 
that have
 
moved to
 
a credit
 
watch list
 
and those
 
with payments
 
that are
 
at least
 
30 days
past due.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ECL stage 2 (“significant deterioration
 
in credit risk”) allowances / provisions as of 31 December
 
2024 – classification by trigger
USD m
Total
of which:
PD layer
of which:
watch list
of which:
≥30 days
 
past due
Private clients with mortgages
(71)
(47)
(1)
(22)
Real estate financing
(29)
(18)
(2)
(9)
Large corporate clients
(194)
(96)
(95)
(4)
SME clients
(76)
(41)
(20)
(14)
Ship / aircraft financing
(17)
(16)
(1)
(1)
Financial intermediaries and hedge funds
(2)
(1)
0
(1)
Loans to financial advisors
(1)
0
0
(1)
Credit cards
(12)
0
0
(12)
Consumer financing
(19)
(12)
0
(7)
Commodity trade finance
(1)
0
0
0
Other
(37)
(25)
(10)
(1)
On- and off-balance sheet
 
(459)
(256)
(131)
(72)
 
d) Maximum exposure to credit risk
The
 
tables
 
below
 
provide
 
the
 
Group’s
 
maximum
 
exposure
 
to
 
credit
 
risk
 
for
 
financial
 
instruments
 
subject
 
to
 
ECL
requirements
 
and
 
the
 
respective
 
collateral
 
and
 
other
 
credit
 
enhancements
 
mitigating
 
credit
 
risk
 
for
 
these
 
classes
 
of
financial instruments.
 
The maximum exposure
 
to credit risk
 
includes the carrying
 
amounts of financial
 
instruments recognized on
 
the balance
sheet subject to credit risk
 
and the notional amounts for off-balance sheet
 
arrangements. Where information is available,
collateral is presented at fair
 
value. For other collateral, such as
 
real estate, a reasonable alternative
 
value is used. Credit
enhancements,
 
such
 
as
 
credit
 
derivative
 
contracts
 
and
 
guarantees,
 
are
 
included
 
at
 
their
 
notional
 
amounts.
 
Both
 
are
capped at
 
the maximum
 
exposure to
 
credit risk
 
for which
 
they serve
 
as security.
 
The “Risk
 
management
 
and control”
section of this
 
report describes
 
management’s view
 
of credit
 
risk and the
 
related exposures,
 
which can differ
 
in certain
respects from the requirements of IFRS Accounting Standards.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum exposure to credit risk
 
31.12.24
Collateral
1,2
Credit enhancements
1
Exposure to
credit risk
after collateral
and credit
enhancements
USD bn
Maximum
exposure to
credit risk
Cash
collateral
received
Collateralized
by equity
 
and debt
instruments
 
Secured by
real estate
Other
collateral
3
Netting
Credit
derivative
contracts
Guarantees
and sub-
participations
Financial assets measured at
 
amortized cost on the balance sheet
Cash and balances at central banks
223.3
223.3
Amounts due from banks
4
18.9
0.0
0.2
0.1
0.2
18.4
Receivables from securities financing transactions
measured at amortized cost
118.3
0.0
113.2
4.1
1.0
Cash collateral receivables on derivative instruments
5,6
44.0
28.3
15.7
Loans and advances to customers
580.0
30.8
130.1
337.5
40.9
0.0
9.3
31.4
Other financial assets measured at amortized cost
58.8
0.2
0.7
0.0
5.3
52.7
Total financial assets measured at amortized cost
1,043.3
31.0
244.1
337.5
50.3
28.3
0.0
9.5
342.6
Financial assets measured at fair value
 
through other comprehensive income – debt
2.2
2.2
Total maximum exposure to credit risk
 
reflected on the balance sheet within the scope of ECL
1,045.5
31.0
244.1
337.5
50.3
28.3
0.0
9.5
344.7
Guarantees
7
40.2
1.9
19.6
0.4
2.3
0.0
3.9
12.3
Irrevocable loan commitments
79.4
0.2
3.8
1.6
22.7
0.0
4.2
46.8
Forward starting reverse repurchase and securities
borrowing agreements
24.9
24.9
0.0
Committed unconditionally revocable credit lines
145.6
19.4
61.6
12.9
1.5
3.1
47.1
Total maximum exposure to credit risk not
 
reflected on the balance sheet within the scope of ECL
290.1
21.4
109.9
14.9
26.4
0.0
0.0
11.2
106.2
31.12.23
8
Collateral
1,2
Credit enhancements
1
Exposure to
credit risk
after collateral
and credit
enhancements
USD bn
Maximum
exposure to
credit risk
Cash
collateral
received
Collateralized
by equity
 
and debt
instruments
 
Secured by
real estate
Other
collateral
3
Netting
Credit
derivative
contracts
Guarantees
and sub-
participations
Financial assets measured at
 
amortized cost on the balance sheet
Cash and balances at central banks
314.1
314.1
Amounts due from banks
4
21.1
0.0
0.2
0.2
0.3
20.5
Receivables from securities financing transactions
measured at amortized cost
99.0
0.0
95.6
2.8
0.7
Cash collateral receivables on derivative instruments
5,6
50.1
32.9
17.2
Loans and advances to customers
639.7
40.2
131.9
372.9
38.9
0.0
11.9
43.9
Other financial assets measured at amortized cost
65.5
0.1
0.8
0.1
5.7
58.8
Total financial assets measured at amortized cost
1,189.5
40.4
228.5
373.0
47.5
32.9
0.0
12.1
455.1
Financial assets measured at fair value
 
through other comprehensive income – debt
2.2
2.2
Total maximum exposure to credit risk
 
reflected on the balance sheet within the scope of ECL
1,191.7
40.4
228.5
373.0
47.5
32.9
0.0
12.1
457.3
Guarantees
7
46.1
2.9
21.4
0.3
3.4
0.1
4.6
13.3
Irrevocable loan commitments
91.5
0.5
3.2
2.2
17.1
0.4
5.9
62.3
Forward starting reverse repurchase and securities
borrowing agreements
18.4
18.4
0.0
Committed unconditionally revocable credit lines
163.2
20.3
58.5
17.6
6.2
4.4
56.2
Total maximum exposure to credit risk not
 
reflected on the balance sheet within the scope of ECL
319.2
23.7
101.6
20.1
26.6
0.0
0.5
14.8
131.8
1 Of which: USD
3,742
m for 31 December 2024
 
(31 December 2023: USD
3,824
m) relates to total credit-impaired
 
financial assets measured at amortized
 
cost and USD
356
m for 31 December 2024
 
(31 December
2023: USD
237
m) to total off-balance sheet financial instruments and
 
credit lines for credit-impaired positions.
 
2 Collateral arrangements generally incorporate
 
a range of collateral, including cash, equity
 
and debt
instruments, real estate and other
 
collateral. For the purpose
 
of this disclosure, UBS 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
 
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 proportionally allocated.
 
3 Includes but is not limited to life insurance contracts,
 
rights in
respect of subscription
 
or capital commitments
 
from fund partners,
 
lien claims on
 
assets of borrowers,
 
leasing items, mortgage
 
loans, inventory,
 
gold and other
 
commodities.
 
4 Amounts due from
 
banks include
amounts held with
 
third-party banks on
 
behalf of clients.
 
The credit risk
 
associated with these
 
balances may be
 
borne by those
 
clients.
 
5 Included within Cash
 
collateral receivables on
 
derivative instruments
 
are
margin balances due from exchanges or clearing houses.
 
Some of these margin balances reflect amounts transferred
 
on behalf of clients who retain the associated credit risk.
 
6 The amount shown in the “Netting”
column represents the netting potential not recognized on the balance sheet. Refer to Note 22
 
for more information.
 
7 Guarantees collateralized by equity and debt instruments include certain
 
overnight repurchase
and reverse repurchase transactions where UBS acts as a sponsoring
 
member for eligible clients when clearing through the Fixed Income
 
Clearing Corporation (the FICC). As part of this arrangement,
 
UBS guarantees
the FICC for prompt and full payment and performance of the clients‘ respective obligations under the FICC rules. The
 
Group minimizes its liability under these guarantees by obtaining a security interest in the cash or
high-quality securities collateral
 
that the clients
 
place with the
 
clearing house; therefore,
 
the risk of
 
loss is expected
 
to be remote.
 
8 Comparative-period
 
information has been
 
revised. Refer to
 
Note 2 for
 
more
information.
 
e) Financial assets subject to credit risk by rating category
The table below shows
 
the credit quality
 
and the maximum
 
exposure to credit
 
risk based on the
 
Group’s internal credit
rating system and year-end stage classification. Under IFRS 9, the credit risk rating
 
reflects the Group’s assessment of the
probability of default of individual counterparties,
 
prior to substitutions. The amounts presented are gross of impairment
allowances.
›
Refer to the “Risk management and control” section of this
 
report for more details about the Group’s internal grading system
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial assets subject to credit risk by rating
 
category
USD m
31.12.24
Rating category
1
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial assets measured at amortized cost
Cash and balances at central banks
222,735
442
24
0
174
0
223,375
(47)
223,329
of which: stage 1
222,735
442
24
0
0
0
223,201
0
223,201
of which: stage 2
0
0
0
0
35
0
35
(21)
13
of which: PCI
0
0
0
0
140
0
140
(25)
114
Amounts due from banks
156
15,238
2,409
809
326
0
18,938
(36)
18,903
of which: stage 1
156
15,206
2,331
791
221
0
18,705
(1)
18,704
of which: stage 2
0
32
78
18
75
0
203
(5)
198
of which: PCI
0
0
0
0
30
0
30
(30)
0
Receivables from securities financing transactions
 
67,467
17,033
6,361
26,097
1,345
0
118,303
(2)
118,301
of which: stage 1
67,467
17,033
6,361
26,097
1,345
0
118,303
(2)
118,301
Cash collateral receivables on derivative instruments
10,166
19,998
7,794
5,893
109
0
43,959
0
43,959
of which: stage 1
10,166
19,998
7,794
5,893
109
0
43,959
0
43,959
Loans and advances to customers
1,868
261,017
169,139
106,577
37,652
5,692
581,944
(1,978)
579,967
of which: stage 1
1,868
259,251
165,762
98,176
28,752
0
553,808
(276)
553,532
of which: stage 2
0
1,754
3,373
8,375
8,870
0
22,373
(323)
22,049
of which: stage 3
0
0
0
0
0
4,699
4,699
(1,134)
3,565
of which: PCI
0
11
5
25
30
992
1,064
(244)
820
Other financial assets measured at amortized cost
26,078
21,060
2,920
6,958
1,661
282
58,959
(125)
58,835
of which: stage 1
26,078
21,030
2,893
6,820
1,413
0
58,233
(25)
58,209
of which: stage 2
0
30
27
139
247
0
444
(7)
436
of which: stage 3
0
0
0
0
0
262
262
(84)
178
of which: PCI
0
0
0
0
0
20
20
(8)
12
Total financial assets measured at amortized cost
328,469
334,788
188,646
146,334
41,267
5,974
1,045,479
(2,187)
1,043,293
On-balance sheet financial instruments
Financial assets measured at FVOCI – debt instruments
1,393
702
0
101
0
0
2,195
0
2,195
Total on-balance sheet financial instruments
329,862
335,490
188,646
146,435
41,267
5,974
1,047,675
(2,187)
1,045,488
1 Refer to the “Internal UBS rating scale and mapping of external ratings” table in the “Risk management and
 
control” section of this report for more information about rating categories.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Off-balance sheet positions subject to expected
 
credit loss by rating category
USD m
31.12.24
Rating category
1
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total carrying
amount
 
(maximum
exposure to
credit risk)
ECL provision
Off-balance sheet financial instruments
Guarantees
 
17,395
7,282
8,403
5,196
1,829
174
40,279
(64)
of which: stage 1
17,395
7,247
8,362
4,484
1,371
0
38,858
(16)
of which: stage 2
0
35
41
708
459
0
1,242
(24)
of which: stage 3
0
0
0
0
0
151
151
(24)
of which: PCI
0
0
0
4
0
23
27
0
Irrevocable loan commitments
1,119
23,843
22,361
14,249
17,807
200
79,579
(177)
of which: stage 1
1,119
23,650
21,974
13,742
14,673
0
75,158
(105)
of which: stage 2
0
193
387
507
3,091
0
4,178
(61)
of which: stage 3
0
0
0
0
0
187
187
(10)
of which: PCI
0
0
0
0
43
13
56
(2)
Forward starting reverse repurchase and securities borrowing agreements
0
0
0
24,896
0
0
24,896
0
Total off-balance sheet financial instruments
18,515
31,125
30,763
44,340
19,636
374
144,754
(241)
Credit lines
Committed unconditionally revocable credit lines
2,180
100,663
22,875
13,258
6,434
255
145,665
(76)
of which: stage 1
2,180
100,106
22,414
12,690
5,872
0
143,262
(59)
of which: stage 2
0
557
461
568
562
0
2,149
(17)
of which: stage 3
0
0
0
0
0
250
250
0
of which: PCI
 
0
 
0
 
0
 
0
 
0
 
5
 
5
 
0
Irrevocable committed prolongation of existing loans
6
1,997
946
739
918
2
4,608
(3)
of which: stage 1
6
1,997
946
739
914
0
4,602
(3)
of which: stage 2
0
0
0
1
3
0
4
0
of which: stage 3
0
0
0
0
0
2
2
0
Total credit lines
2,186
102,661
23,821
13,997
7,351
257
150,273
(79)
1 Refer to the “Internal UBS rating scale and mapping of external ratings” table in the “Risk management and
 
control” section of this report for more information about rating categories.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial assets subject to credit risk by rating
 
category
USD m
31.12.23
Rating category
1,2
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial assets measured at amortized cost
Cash and balances at central banks
251,462
61,936
627
0
43
40
314,108
(48)
314,060
of which: stage 1
251,462
61,936
627
0
0
0
314,025
0
314,025
of which: stage 2
0
0
0
0
43
0
43
(26)
18
of which: PCI
0
0
0
0
0
40
40
(22)
17
Amounts due from banks
1,081
15,438
2,215
1,589
792
43
21,159
(12)
21,146
of which: stage 1
1,081
15,438
2,210
1,589
780
0
21,098
(6)
21,091
of which: stage 2
0
0
5
0
12
0
18
(1)
17
of which: PCI
0
0
0
0
0
43
43
(5)
38
Receivables from securities financing transactions
 
45,838
30,171
6,397
15,544
1,091
0
99,041
(2)
99,039
of which: stage 1
45,838
30,171
6,397
15,544
1,091
0
99,041
(2)
99,039
Cash collateral receivables on derivative instruments
8,009
30,334
6,425
5,117
198
0
50,082
0
50,082
of which: stage 1
8,009
30,334
6,425
5,117
198
0
50,082
0
50,082
Loans and advances to customers
6,428
288,117
180,792
119,191
41,557
5,282
641,367
(1,698)
639,669
of which: stage 1
6,428
286,683
177,962
109,996
30,276
0
611,346
(423)
610,922
of which: stage 2
0
1,428
2,829
9,171
11,269
0
24,697
(289)
24,408
of which: stage 3
0
0
0
0
0
3,731
3,731
(862)
2,869
of which: PCI
0
6
0
24
12
1,551
1,593
(123)
1,470
Other financial assets measured at amortized cost
25,755
25,875
2,875
9,619
1,163
318
65,605
(151)
65,455
of which: stage 1
25,755
25,788
2,854
9,070
841
1
64,309
(41)
64,268
of which: stage 2
0
87
21
548
321
0
978
(10)
968
of which: stage 3
0
0
0
0
0
253
253
(94)
158
of which: PCI
0
0
0
0
1
64
66
(5)
61
Total financial assets measured at amortized cost
338,572
451,871
199,331
151,060
44,844
5,683
1,191,361
(1,911)
1,189,451
On-balance sheet financial instruments
Financial assets measured at FVOCI – debt instruments
1,222
850
0
161
0
0
2,233
0
2,233
Total on-balance sheet financial instruments
339,794
452,721
199,331
151,221
44,844
5,683
1,193,594
(1,911)
1,191,684
1 Refer to
 
the “Internal UBS
 
rating scale
 
and mapping of
 
external ratings” table
 
in the “Risk
 
management and
 
control” section
 
of this report
 
for more information
 
on rating categories.
 
2 Comparative-period
information has been revised. Refer to Note 2 for more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Off-balance sheet positions subject to expected
 
credit loss by rating category
USD m
31.12.23
Rating category
1,2
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total carrying
amount
 
(maximum
exposure to
credit risk)
ECL provision
Off-balance sheet financial instruments
Guarantees
 
17,805
10,961
9,421
5,916
1,882
207
46,191
(73)
of which: stage 1
17,805
10,922
9,310
5,054
1,398
0
44,487
(28)
of which: stage 2
0
39
111
861
484
0
1,495
(22)
of which: stage 3
0
0
0
0
0
151
151
(23)
of which: PCI
0
0
0
1
1
56
58
0
Irrevocable loan commitments
1,722
31,936
24,050
19,661
14,006
266
91,643
(178)
of which: stage 1
1,722
31,936
23,989
19,079
10,354
0
87,080
(117)
of which: stage 2
0
0
62
583
3,652
0
4,297
(51)
of which: stage 3
0
0
0
0
0
218
218
(14)
of which: PCI
0
0
0
0
0
48
48
4
Forward starting reverse repurchase and securities borrowing agreements
10,152
2
84
8,206
0
0
18,444
0
Total off-balance sheet financial instruments
29,679
42,899
33,554
33,783
15,888
473
156,278
(251)
Credit lines
Committed unconditionally revocable credit lines
2,659
108,395
28,669
17,739
5,648
146
163,256
(95)
of which: stage 1
2,659
107,992
28,188
16,921
4,696
0
160,456
(78)
of which: stage 2
0
403
481
818
952
0
2,654
(17)
of which: stage 3
0
0
0
0
0
146
146
0
Irrevocable committed prolongation of existing loans
4
1,803
1,045
1,251
501
4
4,608
(4)
of which: stage 1
4
1,803
1,045
1,249
493
0
4,593
(4)
of which: stage 2
0
0
0
2
9
0
11
0
of which: stage 3
0
0
0
0
0
4
4
0
Total credit lines
2,663
110,197
29,714
18,990
6,149
150
167,864
(99)
1 Refer to
 
the “Internal UBS
 
rating scale
 
and mapping of
 
external ratings” table
 
in the “Risk
 
management and
 
control” section
 
of this report
 
for more information
 
on rating categories.
 
2 Comparative-period
information has been revised. Refer to Note 2 for more information.
 
f) Sensitivity information
As outlined in Note 1a, ECL estimates involve significant uncertainties
 
at the time they are made.
ECL models
The models applied to determine point-in-time PD and LGD rely on market and statistical data, which has been found
to
 
correlate
 
well
 
with
 
historically
 
observed
 
defaults
 
in sufficiently
 
homogeneous
 
segments.
 
The risk
 
sensitivities
 
for
each of the ECL reporting segments to such factors are summarized
 
in Note 10.
Sustainability and climate risk
Sustainability
 
and
 
climate
 
risk
 
may
 
negatively
 
affect
 
clients
 
or
 
portfolios
 
due
 
to
 
direct
 
or
 
indirect
 
transition
 
costs,
 
or
exposure to chronic and acute physical risks in locations likely to be impacted by climate change. Such effects could lead
to a deterioration in credit worthiness, which in turn would
 
have an impact on ECLs.
 
While
 
some
 
macroeconomic
 
indicators
 
used
 
in
 
the
 
current
 
PD
 
models
 
could
 
be
 
influenced
 
by
 
climate
 
change,
 
UBS
currently does not use a specific sustainability and climate risk scenario in addition to the typically four general economic
scenarios
 
applied
 
to
 
derive
 
the
 
weighted-average
 
ECL.
 
The
 
rationale
 
for
 
the
 
approach
 
at
 
this
 
point
 
in
 
time
 
is
 
the
significance of model risks and challenges in calibration
 
and probability weight assessments
 
given the paucity of data.
 
Instead, UBS focuses on the process of vetting clients and business transactions, where
 
both physical and transition risks
for
 
selected
 
sensitive
 
portfolios
 
use
 
internally
 
developed,
 
counterparty
 
level,
 
climate
 
assessment
 
models.
 
This
 
review
process may lead
 
to a downward
 
revision of the
 
counterparty’s credit
 
rating, or the
 
adoption of risk
 
mitigating actions,
impacting the individual contribution to ECLs.
At the
 
portfolio
 
level,
 
UBS
 
has started
 
to
 
use
 
stress
 
loss assumptions
 
to assess
 
the
 
extent
 
to which
 
sustainability
 
and
climate
 
risk
 
may
 
affect
 
the
 
quality
 
of
 
the
 
loans
 
extended
 
to
 
small
 
and
 
medium-sized
 
entities
 
(SMEs),
 
large
 
corporate
clients and financial institutions.
The tests used were based on a set of
 
assumptions and methodologies from a mainstream leading climate model vendor
and complemented by
 
the Network for Greening
 
the Financial System (the
 
NGFS) (2023) climate pathway
 
scenarios. Such
analysis undertaken during 2024 as
 
part of a regulatory
 
climate scenario analysis exercise mandated
 
by FINMA concluded
that the
 
counterparties are
 
not expected
 
to be
 
significantly impacted
 
by physical or
 
transition risks,
 
mainly as
 
there are
no material
 
risk
 
concentrations
 
in
 
high-risk
 
sectors.
 
The
 
analysis
 
of the
 
corporate
 
loan
 
book has
 
also
 
shown
 
that
 
any
potential significant impacts from transition
 
costs or physical risks would materialize
 
over a time horizon that exceeds
 
in
most cases the contractual
 
lifetime of the underlying
 
assets. The analysis
 
and its results are
 
also subject to challenges
 
in
model assumptions, calibration and heightened model
 
uncertainty,
 
as are other climate models in the novel discipline
 
of
climate
 
risk
 
modeling.
 
Based
 
on
 
current
 
internal
 
modeling
 
exercises,
 
this
 
conclusion
 
holds
 
for
 
the
 
portfolio
 
of
 
private
clients with mortgages and the portfolio of real estate
 
financing.
As a result of the aforementioned factors, it was assessed that the magnitude of any impact of sustainability and climate
risk on
 
the weighted
 
-average
 
ECL would
 
not be
 
material
 
as of
 
31 December
 
2024. Therefore,
 
no specific
 
post-model
adjustment was made in this regard.
›
Refer to “Sustainability and climate risk” in
 
the “Risk management and control” section of this
 
report
 
›
Refer to “Our focus on sustainability”
 
in the “Our strategy, business model and environment” section of this report
›
Refer to the “UBS Group AG consolidated supplemental
 
disclosures required under SEC regulations” section of this report for
more information about the maturity profile of UBS’s core loan book
 
Forward-looking scenarios
Depending on
 
the scenario
 
selection and
 
related
 
macroeconomic
 
assumptions for
 
the risk
 
factors, the
 
components of
the
 
relevant
 
weighted-average
 
ECL
 
change.
 
This
 
is
 
particularly
 
relevant
 
for
 
interest
 
rates,
 
which
 
can
 
move
 
in
 
both
directions under
 
a given
 
growth
 
assumption, e.g.
 
low growth
 
with high
 
interest
 
rates in
 
a stagflation
 
scenario, versus
low growth and falling
 
interest rates
 
in a recession. Management
 
generally looks for scenario
 
narratives that reflect
 
the
key risk drivers of a given credit portfolio.
As forecasting
 
models are complex,
 
due to
 
the combination of
 
multiple factors, simple
 
what-if analyses involving
 
a change
of individual parameters
 
do not necessarily provide
 
realistic information on
 
the exposure of
 
segments to changes
 
in the
macroeconomy.
 
Portfolio-specific
 
analyses
 
based
 
on
 
their
 
key
 
risk
 
factors
 
would
 
also
 
not
 
be
 
meaningful,
 
as
 
potential
compensatory effects in other
 
segments would be ignored. The table
 
below indicates some sensitivities to ECLs,
 
if a key
macroeconomic
 
variable
 
for
 
the
 
forecasting
 
period
 
is
 
amended
 
across
 
all
 
scenarios
 
with
 
all
 
other
 
factors
 
remaining
unchanged.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Potential effect on stage 1 and stage 2 positions
 
from changing key parameters as of 31 December
 
2024
USD m
100% Baseline
100% Mild debt
crisis
100%
Stagflationary
geopolitical crisis
 
Weighted average
 
Change in key parameters
Fixed income: Government bonds (absolute change)
–0.50%
(5)
(6)
(124)
(15)
+0.50%
6
11
139
20
+1.00%
12
24
302
43
Unemployment rate (absolute change)
–1.00%
(6)
(10)
(117)
(18)
–0.50%
(3)
(5)
(63)
(9)
+0.50%
3
6
72
11
+1.00%
7
12
154
22
Real GDP growth (relative change)
–2.00%
55
85
86
67
–1.00%
25
40
47
32
+1.00%
(24)
(44)
(49)
(27)
+2.00%
(48)
(80)
(83)
(55)
House Price Index (relative change)
–5.00%
9
26
241
37
–2.50%
4
12
111
18
+2.50%
(6)
(14)
(102)
(20)
+5.00%
(9)
(23)
(188)
(33)
Equity (S&P500, EuroStoxx, SMI) (relative change)
–10.00%
9
13
18
12
–5.00%
2
5
7
4
+5.00%
(7)
(8)
(13)
(8)
+10.00%
(10)
(13)
(22)
(12)
Sensitivities
 
can
 
be
 
more
 
meaningfully
 
assessed
 
in
 
the
 
context
 
of
 
coherent
 
scenarios
 
with
 
consistently
 
developed
macroeconomic
 
factors.
 
The
 
table
 
above
 
outlines
 
favorable
 
and
 
unfavorable
 
effects,
 
based
 
on
 
reasonably
 
possible
alternative changes
 
to the
 
economic conditions for
 
stage 1 and
 
stage 2 positions.
 
The ECL
 
impact is
 
calculated for
 
material
portfolios and disclosed for each scenario.
 
Changes to these timelines may have an effect on ECLs:
 
depending on the cycle, a longer or shorter forecasting
 
horizon
will lead to different annualized lifetime PD and average LGD estimations. This is currently not deemed to be
 
material for
UBS, as a large
 
proportion of loans,
 
including mortgages in
 
Switzerland, have maturities
 
that are within the
 
forecasting
horizon.
Scenario weights and stage allocation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Potential effect on stage 1 and stage 2 positions
 
from changing scenario weights or moving
 
to an ECL lifetime calculation as of 31 December
 
2024
Actual ECL allowances and
provisions, including
staging (as per Note 10)
 
Pro forma ECL allowances and provisions, including staging
 
and assuming application of 100% scenario weighting
 
Pro forma ECL allowances
and provisions, assuming all
positions being subject to
lifetime ECL
 
Scenarios
Weighted average
100% Baseline
100%
Stagflationary
geopolitical crisis
 
100% Mild debt
crisis
Weighted average
USD m, except where indicated
Segmentation
Private clients with mortgages
(118)
(43)
(718)
(68)
(408)
Real estate financing
(57)
(40)
(164)
(49)
(185)
Large corporate clients
(377)
(247)
(757)
(401)
(673)
SME clients
(180)
(151)
(259)
(223)
(327)
Ship financing
(24)
(27)
(42)
(28)
(78)
Consumer financing / credit cards
(58)
(63)
(72)
(65)
(168)
Other segments
(131)
(82)
(206)
(119)
(231)
Total
(946)
(654)
(2,217)
(952)
(2,071)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Potential effect on stage 1 and stage 2 positions
 
from changing scenario weights or moving
 
to an ECL lifetime calculation as of 31 December
 
2023
Actual ECL allowances and
provisions, including
staging (as per Note 10)
 
Pro forma ECL allowances and provisions, including staging
 
and assuming application of 100% scenario weighting
 
Pro forma ECL allowances
and provisions, assuming all
positions being subject to
lifetime ECL
 
Scenarios
Weighted average
100% Baseline
100%
Stagflationary
geopolitical crisis
 
100% Mild debt
crisis
Weighted average
USD m, except where indicated
Segmentation
Private clients with mortgages
(161)
(66)
(816)
(81)
(409)
Real estate financing
(88)
(53)
(293)
(49)
(196)
Large corporate clients
(368)
(282)
(533)
(419)
(645)
SME clients
(188)
(158)
(274)
(226)
(296)
Ship financing
(48)
(46)
(50)
(49)
(125)
Consumer financing / credit cards
(74)
(71)
(81)
(75)
(186)
Other segments
(189)
(157)
(269)
(197)
(368)
Total
(1,115)
(832)
(2,317)
(1,095)
(2,225)
Scenario weights
ECL is sensitive to changing scenario weights, in particular if narratives and parameters are
 
selected that are not close to
the baseline scenario, highlighting the non-linearity of credit
 
losses.
As shown
 
in the
 
table
 
above,
 
the
 
ECLs for
 
stage 1
 
and stage
 
2 positions
 
would
 
have
 
been
 
USD
654
m (31
 
December
2023: USD
832
m) instead
 
of USD
946
m (31 December
 
2023: USD
1,115
m) if
 
ECLs had
 
been determined
 
solely on
 
the
baseline scenario
. The weighted-average ECL therefore amounted
 
to
143
% (31 December 2023:
134
%) of the baseline
value. The effects of weighting each of the four scenarios at
 
100% are shown in the table above.
Stage allocation and SICR
The determination of
 
what constitutes an
 
SICR is based
 
on management judgment,
 
as explained in
 
Note 1a. Changing
the SICR trigger will have a direct effect on ECLs, as more or
 
fewer positions would be subject to lifetime ECLs under any
scenario.
 
The
 
relevance
 
of the
 
SICR trigger
 
on overall
 
ECL is
 
demonstrated
 
in the
 
table
 
above
 
with the
 
indication that
 
the
 
ECL
allowances and provisions for stage 1 and stage
 
2 positions would have been USD
2,071
m, if all non-impaired positions
across the portfolio
 
had been measured for
 
lifetime ECLs irrespective
 
of their actual
 
SICR status. This amount
 
compares
with actual stage 1 and 2 allowances and provisions of USD
946
m as of 31 December 2024.
Maturity profile
The maturity
 
profile
 
is an
 
important driver
 
in ECLs,
 
in particular
 
for transactions
 
in stage
 
2. A
 
transfer of
 
a transaction
into
 
stage 2
 
may
 
therefore
 
have
 
a
 
significant
 
effect
 
on
 
ECLs.
 
The
 
current
 
maturity
 
profile
 
of
 
most
 
lending
 
books
 
is
relatively short.
 
Lending to
 
large corporate
 
clients is
 
generally between
 
one and
 
two years,
 
with related
 
loan commitments
 
up to
 
four
years. Real estate lending is generally between two and three years in Switzerland, with long-dated maturities in the US.
Lombard-lending
 
contracts
 
typically
 
have
 
average
 
contractual
 
maturities
 
of
 
12
 
months
 
or
 
less,
 
and
 
include
 
callable
features.
A significant
 
portion of
 
our lending
 
to SME
 
clients and
 
real estate
 
financing is
 
documented under
 
multi-purpose credit
agreements, which
 
allow for
 
various forms
 
of utilization
 
but are
 
unconditionally cancelable
 
by UBS
 
at any
 
time: (i) for
drawings under such agreements with a fixed
 
maturity, the respective term is applied for ECL
 
calculations, or a maximum
of 12 months in stage
 
1; (ii) for unused credit
 
lines and all drawings that
 
have no fixed maturity
 
(e.g. current accounts),
UBS generally applies a 12-month maturity from the reporting date, given the credit review policies, which require either
continuous monitoring of key indicators and behavioral patterns for smaller positions or an annual formal review for any
other limit. The ECLs for these products are sensitive
 
to shortening or extending the maturity assumption.