6-K 1 ar25ubsagstandal.htm ar25ubsagstandal
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
_________________
FORM 6-K
REPORT OF FOREIGN PRIVATE
ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Date: March 9, 2026
UBS AG
(Registrant's Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
Aeschenvorstadt 1, 4051 Basel, Switzerland
(Address of principal executive offices)
Commission File Number: 1-15060
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form
40-F.
Form 20-F
☒
Form 40-F
☐
This
Form
6-K consists
of
the
UBS AG
audited
standalone
financial statements
for
the
year ended
31 December
2025, as
well as
the consent
of Ernst
& Young
Ltd. with
respect thereto,
which appear
immediately following
this
page.
edgar10book05standalop3i0
UBS AG
Standalone financial statements and regulatory
information for the year ended
31 December 2025
Table of contents
1
2
3a
3b
4
5
6
7
8
9
10
11
12a
12b
13
13a
13b
13c
13d
13e
14
15
16a
16b
17a
17b
18
19
20
21
22a
22b
23
24
25
26a
26b
edgar10book05standalop5i0
UBS AG standalone financial statements (audited)
1
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UBS AG standalone financial statements (audited)
2
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UBS AG standalone financial statements (audited)
3
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UBS AG standalone financial statements (audited)
4
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UBS AG standalone financial statements (audited)
5
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UBS AG standalone financial statements (audited)
6
UBS AG standalone financial statements (audited)
7
UBS AG standalone financial statements (audited)
Income statement
USD m
CHF m
For the year ended
For the year ended
Note
31.12.25
31.12.24
31.12.25
31.12.24
Interest and discount income
23,937
30,753
18,980
27,217
Interest and dividend income from trading portfolio
3,708
4,063
2,940
3,607
Interest and dividend income from financial investments
1,698
1,544
1,347
1,364
Interest expense
(31,074)
(39,684)
(24,639)
(35,129)
Gross interest income
(1,731)
(3,324)
(1,373)
(2,940)
Credit loss (expense) / release
13
535
(206)
424
(179)
Net interest income
(1,196)
(3,531)
(948)
(3,120)
Fee and commission income from securities and investment business and other fee and
commission income
5,686
4,256
4,509
3,760
Credit-related fees and commissions
299
330
237
292
Fee and commission expense
(1,201)
(1,041)
(953)
(920)
Net fee and commission income
4,784
3,545
3,793
3,132
Net trading income
3
9,442
9,451
7,487
8,334
Net income from disposal of financial investments
99
68
78
52
Dividend income from investments in subsidiaries and other participations
4
10,812
6,275
8,573
5,730
Income from real estate holdings
550
463
436
409
Sundry ordinary income
5
2,985
2,814
2,367
2,470
Sundry ordinary expenses
5
(1,927)
(800)
(1,528)
(700)
Other income from ordinary activities
12,518
8,821
9,926
7,960
Total operating income
25,548
18,286
20,258
16,307
Personnel expenses
6
5,657
5,511
4,486
4,868
General and administrative expenses
7
7,335
8,097
5,816
7,144
Subtotal operating expenses
12,992
13,608
10,302
12,012
Impairment of investments in subsidiaries and other participations
4
2,808
543
2,226
500
Depreciation, amortization and impairment of property, equipment, software and intangible
assets
925
1,028
734
907
Changes in provisions for litigation, regulatory and similar matters, and other provisions
8
323
1,078
256
942
Total operating expenses
17,048
16,258
13,517
14,361
Operating profit
8,501
2,028
6,740
1,946
Extraordinary income
9
904
4,211
716
3,693
Extraordinary expenses
9
17
600
14
505
Tax expense / (benefit)
10
238
501
189
451
Net profit / (loss)
9,149
5,138
7,254
4,684
UBS AG standalone financial statements (audited)
8
Balance sheet
USD m
CHF m
Note
31.12.25
31.12.24
31.12.25
31.12.24
Assets
Cash and balances at central banks
13
68,630
69,614
54,418
63,217
Due from banks
13, 24
102,570
96,243
81,330
87,399
Receivables from securities financing transactions
11, 13, 24
90,565
117,338
71,811
106,555
Due from customers
12, 13, 24
160,471
148,955
127,241
135,266
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity
1
12, 13, 24
45,085
43,652
35,749
39,640
Mortgage loans
12, 13
8,695
8,438
6,894
7,662
Trading portfolio assets
14
162,706
148,686
129,013
135,022
Derivative financial instruments
15
14,034
21,941
11,128
19,925
Financial investments
16
52,625
39,850
41,727
36,188
Accrued income and prepaid expenses
13
3,918
4,194
3,107
3,808
Investments in subsidiaries and other participations
4
66,093
73,103
52,406
66,385
Property, equipment and software
5,471
5,364
4,338
4,871
Other assets
12, 13, 17
11,478
13,918
9,101
12,638
Total assets
792,341
791,297
628,262
718,576
of which: subordinated assets
35,593
34,918
28,222
31,709
of which: subject to mandatory conversion and / or debt waiver
34,389
33,344
27,268
30,279
Liabilities
Due to banks
24
83,924
87,538
66,545
79,493
Payables from securities financing transactions
11,24
28,091
42,638
22,274
38,720
Due to customers
24
237,917
227,493
188,649
206,587
Funding received from UBS Group AG measured at amortized cost
21, 24
114,423
113,898
90,728
103,431
Trading portfolio liabilities
14
47,268
29,316
37,480
26,622
Derivative financial instruments
15
16,476
14,005
13,064
12,718
Financial liabilities designated at fair value
14, 20
110,126
102,901
87,321
93,444
of which: funding received from UBS Group AG
20, 21, 24
6,430
4,998
5,098
4,539
Bonds issued
21
61,634
72,673
48,871
65,994
Accrued expenses and deferred income
7,062
8,230
5,600
7,474
Other liabilities
17
3,213
5,196
2,548
4,718
Provisions
13
1,751
3,101
1,388
2,816
Total liabilities
711,884
706,989
564,467
642,016
Equity
Share capital
22
386
386
306
380
Statutory capital reserve
65,627
65,627
52,037
60,185
of which: capital contribution reserve
2
77,661
77,661
61,579
70,626
of which: other statutory capital reserve
(12,034)
(12,034)
(9,542)
(10,441)
Voluntary earnings reserve
5,295
13,157
4,199
11,311
Net profit / (loss) for the period
9,149
5,138
7,254
4,684
Total equity
80,457
84,308
63,796
76,560
Total liabilities and equity
792,341
791,297
628,262
718,576
of which: subordinated liabilities
123,199
121,588
97,687
110,414
of which: subject to mandatory conversion and / or debt waiver
122,830
120,865
97,394
109,757
1 Represents the
Swiss GAAP
carrying amount
of instruments
qualifying as
total loss-absorbing
capital at
the level
of the
respective subsidiaries.
2 The capital
contribution reserve
balance of
USD 77,661m
(CHF 61,579m) as of 31
December 2025 includes
an amount of USD 53,533m
(CHF 42,447m) that the
Swiss Federal
Tax Administration
has assessed as
available for distribution
to the shareholder
free of Swiss
withholding tax.
UBS AG standalone financial statements (audited)
9
Balance sheet (continued)
USD m
CHF m
31.12.25
31.12.24
31.12.25
31.12.24
Off-balance sheet items
Contingent liabilities, gross
45,623
34,989
36,176
31,773
Sub-participations
(208)
(1,141)
(165)
(1,036)
Contingent liabilities, net
45,415
33,848
36,010
30,737
of which: guarantees to third parties related to subsidiaries
11,911
8,389
9,445
7,618
Irrevocable loan commitments, gross
43,644
44,469
34,606
40,382
Sub-participations
(32)
(26)
(25)
(24)
Irrevocable loan commitments, net
43,613
44,443
34,581
40,359
Forward starting transactions
1
100,493
101,465
79,683
92,140
of which: forward starting reverse repurchase agreements
56,836
64,036
45,067
58,151
of which: repurchase agreements
43,657
37,428
34,616
33,989
Liabilities for calls on shares and other equity instruments
5
5
4
4
1 Cash to be paid in the future by either UBS AG or the counterparty.
Off-balance sheet items
Contingent liabilities include indemnities and
guarantees issued by UBS
AG for the benefit
of subsidiaries and creditors
of subsidiaries.
Where
the
indemnity
amount
issued
by
UBS
AG
is
not
specifically
defined,
the
indemnity
relates
to
the
solvency
or
minimum capitalization of a subsidiary, and therefore no amount is included in the table above.
Joint and several liability – value-added tax
UBS AG is jointly
and severally liable for the
combined value-added tax (
VAT
) liability of UBS entities
that belong to the
VAT
group of UBS in Switzerland. This contingent liability is not included in the table above.
Guarantees – UBS Europe SE
Following the
combined UK
business transfer
and cross-border merger
of UBS Limited
into UBS
Europe SE in
March 2019,
UBS AG issued a guarantee for the benefit of
counterparties of UBS Europe SE’s investment banking business, covering
transactions subject to master netting agreements.
A similar guarantee that UBS
AG issued in 2003 for
the benefit of each counterparty
of UBS Limited also continues
to be
effective. This guarantee covers
transactions in accordance with
and contemplated under any agreement
entered into by
UBS Limited prior
to the
merger into UBS
Europe SE, to
the extent that
such an agreement
has not been
amended by
UBS Europe SE thereafter.
Under both guarantees,
UBS AG promises
to pay to
the beneficiary counterparties
any unpaid
liabilities covered under
the terms of the guarantees on demand. These guarantees are included as contingent liabilities in the off-balance sheet
items table above.
Indemnities – UBS Europe SE
In connection
with the
establishing of
UBS Europe
SE in
2016, UBS
AG entered
into agreements
with UBS
Europe SE
under which UBS AG would
provide UBS Europe
SE with limited indemnification of payment
obligations that may arise
from certain litigation, regulatory and similar matters.
As of
31 December 2025,
the amount
of such
potential payment
obligations could
not be
reliably estimated
and the
likelihood of
an outflow
is not
considered to be
probable or
the probability of
an outflow
was assessed to
be remote;
therefore, the table above does not include any amount related to this limited indemnification.
In addition, in accordance with the bylaws of the Deposit Protection Fund of the Association of German Banks, UBS AG
issued an indemnity in favor of
this fund on behalf of UBS
Europe SE. The probability of an
outflow was assessed to be
remote, and as a result, the table above does not include any exposure arising under this indemnity.
UBS AG standalone financial statements (audited)
10
Statement of changes in equity
USD m
Share capital
Statutory
capital
reserve
of which:
capital
contribution
reserve
of which:
other
statutory
capital
reserve
Voluntary
earnings
reserve and
profit / (loss)
carried
forward
Net profit /
(loss)
for the period
Total equity
Balance as of 1 January 2025
386
65,627
77,661
(12,034)
13,157
5,138
84,308
Net profit / (loss) appropriation
5,138
(5,138)
0
Dividend distribution
(13,000)
1
(13,000)
Net profit / (loss) for the period
9,149
9,149
Balance as of 31 December 2025
386
65,627
77,661
(12,034)
5,295
9,149
80,457
1 Includes ordinary dividend distribution of USD 6,500m and supplementary dividend distribution of USD 6,500m out of special dividend reserve within the
voluntary earnings reserve.
Statement of changes in equity
CHF m
Share capital
Statutory
capital
reserve
of which:
capital
contribution
reserve
of which:
other
statutory
capital
reserve
Voluntary
earnings
reserve and
profit / (loss)
carried
forward
Net profit /
(loss)
for the period
Total equity
Balance as of 1 January 2025
380
60,185
70,626
(10,441)
11,311
4,684
76,560
Effect of translating opening balance at closing rate
1
(74)
(8,149)
(9,047)
899
(878)
(610)
(9,710)
Net profit / (loss) appropriation
4,074
(4,074)
0
Dividend distribution
(10,308)
2
(10,308)
Net profit / (loss) for the period
7,254
7,254
Balance as of 31 December 2025
306
52,037
61,579
(9,542)
4,199
7,254
63,796
1 Refer to “Presentation currencies” in Note 2a for more information.
2 Includes ordinary dividend distribution of CHF 5,154m and supplementary dividend distribution of CHF 5,154m out
of special dividend reserve
within the voluntary earnings reserve.
UBS AG standalone financial statements (audited)
11
Note 1
Name, legal form and registered office
UBS AG
is incorporated
and domiciled
in Switzerland.
Its registered
offices are
at Bahnhofstrasse 45,
CH-8001 Zurich
and
Aeschenvorstadt
1,
CH-4051
Basel,
Switzerland.
UBS
AG
operates
under
Art.
620
et
seq.
of
the
Swiss
Code
of
Obligations and Swiss banking law as an
Aktiengesellschaft
, a corporation limited by shares.
UBS AG is
a regulated bank
in Switzerland and
is 100% owned
by UBS Group
AG, the ultimate
parent of the
UBS Group.
UBS AG holds
investments in and
provides funding to
subsidiaries, including the
other banking subsidiaries
of the UBS
Group. In addition, UBS AG operates globally, including business activities from all five UBS business divisions (which are
supported
by
Group
functions
which
mainly
include
Group
Services
and
Group
Treasury).
In
the
ordinary
course
of
business, the main contributors to the
net profit / (loss) of
UBS AG are Group Treasury
(including dividend income from
investments
in
subsidiaries
and
other
participations),
Global
Wealth
Management,
the
Investment
Bank
and
Group
Services. The balance
sheet is mainly
composed of financial
assets and liabilities
from the Investment
Bank, Global Wealth
Management and Group Treasury,
as well as investments
in subsidiaries and other
participations in Group Treasury
and
fixed assets of Group Services.
UBS AG
employed 15,045
personnel on
a full-time
equivalent basis
as of
31 December
2025, compared
with 18,161
personnel as of 31 December 2024.
Note 2
Accounting policies
a) Significant accounting policies
UBS AG
standalone financial
statements are prepared
in accordance
with Swiss
GAAP (the
FINMA Accounting
Ordinance,
FINMA Circular 2020/1 “Accounting – banks” and the Banking Ordinance) and represent “reliable assessment statutory
single-entity financial
statements”. The
accounting policies
are principally
the same
as those
outlined in
Note 1
to the
consolidated financial statements
of UBS AG
included in the
UBS AG Annual Report
2025. Major differences
between
the
Swiss
GAAP
requirements
and
IFRS
Accounting
Standards
are
described in
Note
32
to
the consolidated
financial
statements of UBS AG. The
significant accounting policies applied
for the standalone financial
statements of UBS AG
are
discussed below.
›
Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2025, available under “Annual reporting”
at
ubs.com/investors
, for more information
Compensation policy
The compensation structure
and processes
of UBS AG
conform to the
compensation principles and
framework of UBS
Group AG.
›
Refer to the UBS Group AG Compensation Report 2025, available under “Annual reporting”
at
ubs.com/investors
, for more
information
Deferred compensation
Expenses for
deferred compensation
awards granted
by UBS
Group AG
to employees
of UBS
AG in
the form
of UBS
shares, notional additional tier 1 (AT1) capital instruments and notional investment funds
are charged by UBS Group AG
to UBS AG.
›
Refer to “Note 26 Employee benefits: variable compensation”
in the “Consolidated financial statements” section of the UBS AG
Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more information
Foreign currency translation
Non-US-dollar-denominated
transactions
are
translated into
US
dollars
at
the
spot
exchange
rate
on
the
date
of
the
transaction. At the balance sheet date, all
non-US-dollar-denominated monetary assets and liabilities, as well as non-US-
dollar-denominated equity instruments recorded in
Trading portfolio assets
and
Financial investments
, are translated into
US
dollars
using
the
closing exchange
rate.
Non-monetary
items
measured
at
historic
cost
are
translated
at
the
spot
exchange rate on the date of the transaction. Assets and liabilities of branches with functional currencies other than the
US dollar
are translated
into US
dollars at
the closing
exchange rate.
Income and
expense items
of such
branches are
translated
at
weighted-average
exchange
rates
for
the
period.
All
currency
translation
effects
are
recognized
in
the
income statement.
›
Refer to Note 2c for information about the retroactive translation of Credit
Suisse AG’s financial information in 2024 following
the merger of UBS AG and Credit Suisse AG
The
main
currency
translation
rates
used
by
UBS
AG
are
provided
in
Note
31
to
the
UBS
AG
consolidated
financial
statements in the UBS AG Annual Report 2025.
›
Refer to “Note 31 Currency translation rates” in the “Consolidated financial statements” section of the UBS
AG Annual Report
2025, available under “Annual reporting” at
ubs.com/investors
, for more information
UBS AG standalone financial statements (audited)
12
Note 2
Accounting policies (continued)
Presentation currencies
The primary presentation
currency of the
financial statements of
UBS AG is
the US dollar.
Amounts in Swiss
francs are
additionally presented for each component of the financial statements.
As of 1
January 2025, UBS
AG has prospectively
adopted the closing
rate method for
presenting US dollar
amounts in
Swiss francs. Under
this method, all assets,
liabilities and equity positions,
as well as
income and expense items
and other
movements, are
translated at
the closing
rate. For
movement tables,
such as
the statement
of changes
in equity,
the
opening balance is remeasured at the closing rate, with
the resulting currency translation effect presented in a separate
row or column as
Effect of translating opening balance at closing rate
.
In the comparative period,
UBS AG applied the
modified closing rate method
for converting the US
dollar presentation
currency amounts into
Swiss francs: assets
and liabilities were
converted at the
closing rate, equity
positions at historic
rates
and
income
and
expense
items
at
the
weighted-average
rate
for
the
period.
The
resulting
currency
translation
effects were recognized separately in
Voluntary earnings reserve
.
UBS AG
has updated
the accounting
policy as
it provides
a more
current and
more relevant
presentation of
the Swiss
franc
equivalents
of
the
underlying
US
dollar
amounts.
The
change
in
the
accounting
policy
had
no
impact
on
the
amounts presented in the primary presentation currency, the US dollar.
›
Refer to Note 2c for information about the retroactive translation of Credit
Suisse AG’s financial information in 2024 following
the merger of UBS AG and Credit Suisse AG
Structured debt instruments
Structured
debt
instruments
consist
of
debt
instruments
issued
and
transacted
over
the
counter
and
include
a
host
contract and one
or more embedded
derivatives that do
not relate
to UBS AG’s
own equity.
By applying the
fair value
option, the vast
majority of structured debt
instruments are measured at
fair value as
a whole and
recognized in
Financial
liabilities designated
at fair
value
. The
fair value
option for
structured debt
instruments can
be applied
only if
the following
criteria are cumulatively met:
–
the structured debt instrument is measured on a
fair value basis and is subject to
risk management that is equivalent
to risk management for trading activities;
–
the
application
of
the
fair
value
option
eliminates
or
significantly
reduces
an
accounting
mismatch
that
would
otherwise arise; and
–
changes in fair value attributable to changes in unrealized own credit are not recognized.
Fair value changes related to
Financial liabilities designated at fair value
, excluding changes in unrealized own credit, are
recognized in
Net trading income
. Interest expense on
Financial liabilities designated at
fair value
is recognized in
Interest
expense
.
Where the
designation criteria
for the
fair value
option are
not met,
the embedded
derivatives are
assessed for
bifurcation
for
measurement
purposes.
Bifurcated
embedded
derivatives
are
measured
at
fair
value
through
profit
or
loss
and
presented in the same balance sheet line as the host contract.
›
Refer to Note 20 for more information
Group-internal funding
UBS AG obtains
funding from UBS Group
AG in the
form of loans
that are subject to
mandatory conversion and
/ or debt
waiver, as explained below, and generally either qualify
as loss-absorbing tier
1 capital or as
gone concern loss-absorbing
capacity,
i.e. total funding
eligible as total
loss-absorbing capacity (TLAC),
at the
UBS AG consolidated
and standalone
levels. A portion of
Group-internal funding obtained is
further on lent by
UBS AG to certain
subsidiaries in the form
of
loans.
›
Refer to Note 21 for information about funding eligible as total loss-absorbing capacity at the UBS AG level
UBS AG’s
obligations arising
from Group-internal
funding it
has received
are presented
as
Funding received
from UBS
Group AG measured at amortized
cost
and
Funding received from UBS Group AG
within
Financial liabilities designated
at fair value.
UBS AG’s claims arising from the Group-internal
funding it has provided are presented as
Funding provided
to significant regulated subsidiaries eligible as total loss-absorbing capacity
and are measured at amortized cost less any
allowance for expected credit losses.
UBS AG standalone financial statements (audited)
13
Note 2
Accounting policies (continued)
Subordinated assets and liabilities
Subordinated assets
are composed of
claims that, based
on an irrevocable
written declaration, in
the event of
liquidation,
bankruptcy or
composition concerning
the debtor
rank after
the claims
of all
other creditors
and may
not be
offset against
amounts
payable
to
the
debtor
nor
be
secured
by
its
assets.
Subordinated
liabilities
are
composed
of
corresponding
obligations.
Subordinated
assets
and
liabilities
that
contain
a
point-of-non-viability
clause
in
accordance
with
Swiss
capital
requirements pursuant to
Art. 29 and
30 of the
Capital Adequacy Ordinance
are disclosed as
being
Subject to mandatory
conversion and / or debt waiver
and provide for the claim or the obligation to be
written off or converted into equity in
the event that the issuing bank reaches a point of non-viability.
Investments in subsidiaries and other participations
Investments in subsidiaries and other participations
are equity interests that are held to carry on the business of UBS AG
or for other strategic purposes. They include all subsidiaries directly held
by UBS AG through which UBS AG conducts its
business on a
global basis. The
investments are measured individually
and carried at
cost less impairment.
The carrying
amount is
tested for
impairment when
indicators of
a potential
decrease in
value exist,
which include
significant operating
losses incurred
or a
severe depreciation
of the
currency in
which the
investment is
denominated. If
an investment
in a
subsidiary is impaired, its value is generally written down to
the net asset value or a value above the net asset
value if, in
the opinion of
management, forecasts of
future profitability provide
sufficient evidence that
a carrying amount
above net
assets
is
supported.
Subsequent
recoveries
in
value
are
recognized
up
to
the
original
cost
value
based
on
either
an
increased net asset value or
a value above the
net asset value if
aforementioned conditions are met. Management
may
exercise its
discretion as
to what
extent, and
in which
period, a
recovery in
value is
recognized. Impairments
of investments
are
presented as
Impairment
of
investments in
subsidiaries
and
other
participations
and
reversals
of
impairments
are
presented as
Extraordinary income
in the income statement. Impairments and partial or full reversals of impairments for
a subsidiary during the same annual period are determined on a net basis.
›
Refer to Note 4 for more information
Hedge accounting for Investments in subsidiaries and other participations
UBS
AG
applies
hedge
accounting
for
certain
investments
in
subsidiaries
and
other
participations
denominated
in
currencies
other
than
the
US
dollar,
which
are
designated
as
hedged
items.
For
this
purpose,
foreign
exchange
(FX)
derivatives, mainly FX forwards and FX swaps, are used and designated as hedging instruments.
The hedged risk is
determined as the change
in the carrying amount
of the hedged item
arising solely from changes
in
spot FX
rates. Consequently,
UBS AG
only designates
the spot
element of
the FX
derivatives as
hedging instruments.
Changes in the fair value
of the hedging instruments attributable
to changes in forward points
are not part of a
hedge
accounting designation. These amounts, therefore, do not
form part of the effectiveness assessment and
are recognized
in
Net trading income
.
The effective portion of gains
and losses of these FX
derivatives is deferred on the
balance sheet as
Other assets
or
Other
liabilities
to the extent no change is recognized in the carrying amount of the hedged item arising from changes in
spot
FX rates. Otherwise, the effective portion of
gains and losses of these FX derivatives
is matched with the corresponding
valuation
adjustments
of
the
hedged
item
recorded
in
the
income
statement
and
recorded
either
as
a
reduction
of
Impairment of investments in subsidiaries and other participations
or as
Extraordinary income
.
Revenue and expense transfers with other Group entities
UBS
AG
pays
to
and
receives
amounts
from
other
Group
entities
in
connection
with
revenue-sharing
arrangements.
Revenues transferred to and received from Group entities are settled in cash as entity revenue transfers
paid or received.
When
the
nature
of
the
underlying
transaction
between
UBS
AG
and
the
Group
entity
contains
a
single,
clearly
identifiable service component,
related income and expenses are
presented in the respective income
statement line item,
e.g.
Fee and commission
income from securities
and investment business
and other fee
and commission income
,
Fee and
commission
expense
or
Net
trading
income
.
To
the
extent
the
nature
of
the
underlying
transaction
contains
various
service components
and is
not clearly
attributable to
a particular
income statement
line item,
related income
and expenses
are presented in
Sundry ordinary income
and
Sundry ordinary expenses
.
UBS AG
receives services
from UBS
Business Solutions
AG, mainly
relating to
the Group
Operations and
Technology Office,
as well as certain other services from other Group entities.
UBS AG provides services to Group entities, mainly relating to real estate and selected other Group Services functions.
Services received from and provided
to Group entities are
settled in cash as
entity cost transfers paid
or received. Entity
cost
transfers
paid
are
presented
within
General
and
administrative
expenses
and
entity
cost
transfers
received
are
presented within
Sundry ordinary income
or
Income from real estate holdings
.
›
Refer to Notes 5 and 7 for more information
UBS AG standalone financial statements (audited)
14
Note 2
Accounting policies (continued)
Post-employment benefit plans
Swiss GAAP
permit the
use of
IFRS Accounting
Standards or
Swiss accounting
standards for
post-employment benefit
plans, with the election made on a plan-by-plan basis.
UBS AG
has elected
to apply
Swiss accounting
standards for
the Swiss
pension plans
in its
standalone financial
statements.
The requirements of the
Swiss accounting standards are
better aligned with the
specific nature of
Swiss pension plans,
which are
hybrid in
that they
combine elements
of defined
contribution and
defined benefit
plans but
are treated
as
defined
benefit
plans
under
IFRS
Accounting
Standards.
Swiss
accounting
standards
require
that
the
employer
contributions
to
the
pension
fund
are
recognized
as
Personnel
expenses
in
the
income
statement.
The
employer
contributions to
the Swiss
pension fund
are determined
as a
percentage of
contributory compensation.
Furthermore,
Swiss accounting standards require
an assessment as to
whether, based on the financial
statements of the pension funds
prepared in accordance with Swiss accounting standards (Swiss GAAP FER 26), an economic benefit to, or obligation of,
UBS AG arises from
the pension funds that is
recognized in the balance sheet
when conditions are met. Conditions
for
recording a
pension asset
or liability
would be
met if,
for example,
an employer
contribution reserve
was available
or
UBS AG was required
to contribute to
the reduction of
a pension deficit
(on the pension
plan’s Swiss GAAP
FER 26 basis).
Key differences between
Swiss accounting standards
and IFRS Accounting
Standards include the
treatment of dynamic
elements, such
as future
salary increases
and future
interest credits
on retirement
savings, which
are not
considered under
the static
method used
in accordance
with Swiss
accounting standards.
Also, the
discount rate
used to
determine the
defined benefit obligation in accordance with IFRS Accounting Standards is based on the yield of high-quality corporate
bonds of the market in the respective pension plan
country. The discount rate used in accordance
with Swiss accounting
standards, i.e. the technical interest rate, is determined by the Pension Foundation Boards.
›
Refer to Note 23 for more information
UBS
AG
has
elected
to
apply
IFRS
Accounting
Standards
(IAS 19)
for
its
non-Swiss
defined
benefit
plans.
However,
remeasurements of
the defined
benefit obligation
and the
plan assets
are recognized
in the
income statement
rather
than directly in equity.
›
Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2025, available under “Annual reporting”
at
ubs.com/investors
, for more information
Deferred taxes
Deferred tax assets are not recognized
in UBS AG’s standalone financial
statements. However, deferred tax liabilities
may
be
recognized
for
taxable
temporary
differences.
Changes
in
the
deferred
tax
liability
balance
are
recognized
in
the
income statement.
Allowances and provisions for expected credit losses
UBS AG is required to
apply expected credit loss (ECL)
approaches for credit-impaired and non-credit-impaired
financial
instruments in its standalone financial statements.
For
the substantial
majority of
non-credit-impaired exposures
within the
scope of
the Swiss
GAAP ECL
requirements,
UBS AG
has
chosen
to
apply
the
IFRS
Accounting
Standards
ECL
approach,
which
is
also
applied
in
its
consolidated
financial
statements.
These
exposures
include
all
financial
assets
that
are
measured
at
amortized
cost
under
both
frameworks, Swiss GAAP
and IFRS Accounting
Standards, fee and
lease receivables, claims
arising from Group-internal
funding
presented
as
Funding
provided
to
significant
regulated
subsidiaries
eligible
as
total
loss-absorbing
capacity
,
guarantees, irrevocable loan commitments, revolving revocable credit lines, and forward starting reverse repurchase and
securities
borrowing
agreements.
Further
information
about
the
ECL
approach
under
IFRS
Accounting
Standards
is
provided in Note 1 to the consolidated financial statements of UBS AG.
›
Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2025, available under “Annual reporting”
at
ubs.com/investors
, for more information
For the
small residual
population of
exposures within
the scope
of the
Swiss GAAP
ECL requirements,
which are
not
subject to ECL under IFRS Accounting Standards due to classification differences, alternative approaches are applied.
–
For exposures for which
Pillar 1 internal ratings-based
models are applied for
measurement of credit
risk risk-weighted
assets (RWA), ECL for such exposures is calculated as the regulatory expected
loss (EL), with an add-on to scale up to
the residual maturity
of exposures maturing
beyond the next
12 months. This
approach is mainly
applied for brokerage
receivables presented within
Due from customers
, which
generally mature within 12
months. For detailed information
about regulatory EL, refer to the “Risk management and control” section of the UBS AG Annual Report 2025.
–
For
exposures
for
which
the
standardized
approach
is
applied
for
the
measurement
of
credit
risk
RWA,
ECL
is
determined using a
portfolio approach that
derives a conservative
probability of default
(PD) and a
conservative loss
given
default
(LGD)
for
the
entire
portfolio.
This
approach
is
mainly
applied
for
a
small
number
of
loans
to
large
corporate clients presented within
Due from customers
.
UBS AG standalone financial statements (audited)
15
Note 2
Accounting policies (continued)
UBS
applies a
single
definition of
default for
credit
risk management
purposes, regulatory
reporting and
ECL, with
a
counterparty classified as defaulted based on quantitative and qualitative criteria.
›
Refer to the “Risk management and control” section of the UBS AG Annual Report 2025, available
under “Annual reporting” at
ubs.com/investors
, for more information
An allowance
for credit
losses is
reported as
a decrease
in the
carrying amount of
a financial
asset. For
an off-balance
sheet
item, such
as a
commitment, a
provision for
credit losses
is reported
in
Provisions
. Changes
to allowances
and
provisions for credit losses are recognized in
Credit loss (expense) / release
.
›
Refer to Note 13 for more information
Dispensations in the standalone financial statements
As UBS AG prepares consolidated
financial statements in accordance
with IFRS Accounting Standards, UBS
AG is exempt
from various disclosures
in the standalone
financial statements. The dispensations
include the management
report, the
statement of cash flows and various note disclosures, as well as the publication of full interim financial statements.
b) Changes in accounting policies
As of 1 January 2025, UBS AG has prospectively adopted the closing rate method for translating the US dollar amounts
included in the financial statements into the additional presentation currency,
i.e. the Swiss franc.
›
Refer to Note 2a Presentation currencies for more information
c) Changes in organization and other events affecting profitability
In
2025,
UBS
continued
the
integration
of
Credit
Suisse,
with
a
focus
on
client
account
migrations,
infrastructure
decommissioning and legal entity integration.
›
Refer to the “Our business model and environment” section of the UBS AG Annual Report 2025,
available under “Annual
reporting” at
ubs.com/investors
, for more information
Transfer of Global Wealth Management International and Global Financial Intermediaries businesses
In 2025, UBS decided to consolidate the
Wealth Management International business, the
Global Financial Intermediaries
business, and other related businesses
booked in Switzerland in UBS
AG to further optimize Group
legal and operational
structures and to address regulatory considerations.
In the
second quarter
of 2025,
UBS Switzerland
AG transferred
the beneficial
ownership of
the Wealth
Management
International business and the Global Financial
Intermediaries business booked in UBS Switzerland AG
to UBS AG, with
effect
from
1
January
2025.
The
transfer
was
made
in
the
form
of
a
dividend
in
kind
amounting
to
USD
126m
(CHF 100m), reflecting the net
asset value of the
in-scope businesses. In the
fourth quarter of 2025,
UBS Switzerland AG
transferred the beneficial ownership
of the related businesses
to UBS AG, with
effect from 1 May
2025. The transfer was
made in
the form
of a
dividend in
kind amounting
to USD 1,261
(CHF 1,000), reflecting
the net
asset value
of the
in-
scope businesses.
UBS
Switzerland
AG
will
continue to
manage
the
businesses
under
a
contractual
relationship
with
UBS
AG
until
the
completion of legal
transfer, which is
expected to take
place in 2028,
and will continue
to recognize the
underlying assets
and liabilities of the
relevant businesses until then.
UBS AG’s share of
the net profits of
USD 695m (CHF 551m) for the
full year of 2025
is reflected in
Fee and commission income
from securities and investment
business and other fee
and
commission income
.
Merger of UBS AG and Credit Suisse AG, completed in 2024
In December 2023, the Board of Directors of UBS Group
AG approved the merger of UBS AG and Credit Suisse
AG, and
both
entities entered
into
a
definitive merger
agreement, as
amended on
30
April 2024.
On 31
May 2024,
UBS
AG
formally completed the merger
by absorption of Credit
Suisse AG. In the standalone
financial statements of UBS
AG, the
acquisition has been accounted for
retroactively as of 1 January
2024, applying the previous book
values of Credit Suisse
AG.
The
merger
balance
sheet
with
assets
of
USD
306,447m
(CHF
257,935m)
and
liabilities
of
USD 275,105m
(CHF 231,554m)
was
recognized,
together
with
a
corresponding
increase
of
Statutory
capital
reserves
in
equity
of
USD 31,343m (CHF 26,381m),
of which
USD 55,471m
(CHF 46,690m) was
attributed to
Capital contribution
reserve
and
negative USD 24,129m (negative CHF 20,309m) to
Other statutory capital reserve
.
UBS AG’s
accounting policies
and methodologies
were applied
retroactively from
1 January
2024. This
resulted in
an
adjustment, which was recorded in
Extraordinary expenses
of USD 598m (CHF 504m).
›
Refer to Note 9 for more information
UBS AG standalone financial statements (audited)
16
Note 2
Accounting policies (continued)
Furthermore, the retroactive translation of Credit Suisse AG’s financial information, previously expressed in Swiss francs,
(i.e. the merger balance sheet, the accounting
policy application and the activity from 1 January
2024 to 31 May 2024)
to
UBS
AG’s
presentation
currency,
the
US
dollar,
resulted
in
a
foreign
currency
translation
effect
of
USD 2,049m
(CHF 1,851m), which was recorded as a reduction of
Other statutory capital reserves
within
Statutory capital reserves
.
Profit and loss information for 2024 includes the full-year profit and loss of the merged Credit Suisse AG.
d) Events after the reporting period
Transfer of Global Wealth Management International and Global Financial Intermediaries businesses
In connection with the migration of
legacy Credit Suisse clients to UBS’s
client platform, UBS has decided to
transfer to
UBS Switzerland AG,
the Wealth Management
International business, the
Global Financial Intermediaries
business and
other
related
businesses
booked
in
UBS
AG
in
Switzerland
that
are
associated
with
legacy
Credit
Suisse
clients.
The
beneficial ownership of
these businesses is
retained by
UBS AG.
The execution
of the
transfer is
effected through two
statutory bulk transfers pursuant to the Swiss Merger Act,
both with effect as of 1 January 2026. The combined
transfer
balance sheets consist
of assets of
USD 16.5bn (CHF 13.1bn) (mainly
loans) and liabilities
of USD 15.9bn (CHF 12.6bn)
(mainly customer deposits).
e) Risk management
UBS
AG
is
fully
integrated
into
the
Group-wide
risk
management
process
described
in
the
audited
part
of
the
“Risk
management and control” section of the UBS AG Annual Report 2025.
Further information about
the use
of derivative
instruments and
hedge accounting
is provided
on the
following pages
and in Notes 1, 10 and 24 to the consolidated financial statements of UBS AG.
›
Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2025, available under “Annual reporting”
at
ubs.com/investors
, for more information
Note 3a
Net trading income by business
Net trading income by business
USD m
CHF m
For the year ended
For the year ended
31.12.25
31.12.24
31.12.25
31.12.24
Investment Bank
1
8,295
7,450
6,577
6,586
Other business divisions and Group Items
2
1,147
2,001
910
1,748
Total net trading income
9,442
9,451
7,487
8,334
1 Almost entirely Global Markets.
2 Group Items reflects the residual amount of Group functions which is not allocated to the business divisions.
Note 3b
Net trading income by underlying risk category
Net trading income by underlying risk category
USD m
CHF m
For the year ended
For the year ended
31.12.25
31.12.24
31.12.25
31.12.24
Equity instruments (including funds)
6,406
6,198
5,080
5,485
Foreign exchange instruments
1,650
1,588
1,309
1,397
Interest rate and credit instruments (including funds)
1,261
1,780
1,000
1,551
Other
124
(114)
98
(99)
Total net trading income
9,442
9,451
7,487
8,334
of which: net gains / (losses) from financial liabilities designated at fair value
1
(4,584)
(981)
(3,635)
(829)
1 Excludes fair value changes of hedges related to financial
liabilities designated at fair value and foreign currency effects
arising from translating foreign currency transactions
into the respective functional currency,
both of which are reported within Net trading income.
UBS AG standalone financial statements (audited)
17
Note 4
Investments in subsidiaries and other participations
The table
below provides
the carrying
amount, the
equity interest
and the
registered office
information regarding
the
investments in subsidiaries and other participations.
Investments in subsidiaries and other participations
Registered office
Equity interest
accumulated in %
Carrying amount in USD m
Carrying amount in CHF m
31.12.25
31.12.24
31.12.25
31.12.24
UBS Americas Holding LLC
Wilmington, Delaware, USA
100
28,835
31,834
22,864
28,908
UBS Switzerland AG
Zurich, Switzerland
100
20,997
20,996
16,649
19,066
UBS Europe SE
Frankfurt, Germany
100
4,686
4,175
3,716
3,791
UBS Asset Management AG
Zurich, Switzerland
100
2,648
2,260
2,099
2,053
Credit Suisse International
London, United Kingdom
98
2,633
5,040
2,088
4,577
Other
6,295
8,799
4,991
7,990
Total investments in subsidiaries and other participations
66,093
73,103
52,406
66,385
Impairments and reversal of impairments
In
2025,
UBS
AG
recognized
Impairments
of
investments
in
subsidiaries
and
other
participations
of
USD 2,808m
(CHF 2,226m), mainly
due to
impairments of
the investments
in Credit
Suisse International
(USD 1,073m (CHF 851m))
and Credit Suisse
Investments (UK),
the indirect holding
company of Credit
Suisse Securities (Europe)
Limited, (USD 581m
(CHF 461m)), which
partly offset
the dividends
received from
those subsidiaries.
In 2024,
UBS AG
recognized
Impairments
of investments in subsidiaries and other participations
of USD 543m (CHF 500m).
In 2025,
UBS AG
recognized
Reversal of impairments
of investments
in subsidiaries
and other participations
of USD 889m
(CHF 705m). In 2024, UBS
AG recognized
Reversal of impairments of
investments in subsidiaries and
other participations
of USD 3,996m (CHF 3,497m),
mainly due to
a reversal of
an impairment of
the investment in
Credit Suisse International,
as the
recoverable amount
of this
participation increased,
mainly due
to the
progression of
the integration,
including
improved actual financials and forecasted financial performance.
Dividends and capital repayments
Dividend income from investments
in subsidiaries and other
participations
of USD 10,812m (CHF 8,573m) in
2025 and
USD 6,275m
(CHF 5,730m)
in
2024
was
mainly
attributable
to
UBS Switzerland AG,
Credit
Suisse
International,
UBS
Europe SE and Credit Suisse Securities (Europe) Limited.
In December 2025, UBS
Americas Holding LLC repaid
capital of USD 3.0bn (CHF 2.4bn)
and Credit Suisse International
repaid capital
of USD 1.3bn
(CHF 1.1bn) to
UBS AG.
In December
2024, UBS
Americas Holding
LLC repaid
capital of
USD 6.0bn (CHF 5.4bn) and Credit Suisse International repaid capital of USD 7.0bn (CHF 6.3bn) to UBS AG.
Note 5
Sundry ordinary income and expenses
Sundry ordinary income and expenses
USD m
CHF m
For the year ended
For the year ended
31.12.25
31.12.24
31.12.25
31.12.24
Income from services provided to UBS Group AG or its subsidiaries
1
2,513
2,779
1,993
2,436
Net unrealized gains on financial investments
18
14
Other
2
454
36
360
34
Total sundry ordinary income
2,985
2,814
2,367
2,470
Loss on repurchase of debt
3
(960)
(762)
Expenses from revenue transfers to UBS Group AG or its subsidiaries
(877)
(641)
(696)
(566)
Net unrealized losses on financial investments
(116)
(98)
Other
(89)
(42)
(71)
(36)
Total sundry ordinary expenses
(1,927)
(800)
(1,528)
(700)
1 Services provided by UBS
AG primarily related to Group
Services.
2 2025 includes a gain
of USD 407m (CHF 322m)
arising from the derecognition
of an amortized cost liability
below book value.
3 For 2025
reflects a loss from the repurchase of legacy Credit Suisse debt instruments. The
debt repurchased included instruments issued directly by UBS AG and instruments on lent from UBS Group AG.
UBS AG standalone financial statements (audited)
18
Note 6
Personnel expenses
Personnel expenses
USD m
CHF m
For the year ended
For the year ended
31.12.25
31.12.24
31.12.25
31.12.24
Salaries
2,741
2,929
2,173
2,588
Variable compensation – performance awards
1,791
1,450
1,420
1,280
Variable compensation – other
242
308
192
274
Contractors
60
55
48
49
Social security
387
340
307
300
Post-employment benefit plans
255
277
202
243
of which: value adjustments for economic benefits or obligations from non-Swiss pension funds
1
47
9
37
6
Other personnel expenses
181
152
144
134
Total personnel expenses
5,657
5,511
4,486
4,868
1 Reflects the remeasurement of the defined benefit obligation and return on plan assets excluding amounts included in interest income for the non-Swiss
defined benefit plans, for which IAS 19 is applied.
Note 7
General and administrative expenses
General and administrative expenses
USD m
CHF m
For the year ended
For the year ended
31.12.25
31.12.24
31.12.25
31.12.24
Real estate
661
630
524
556
Outsourcing costs
162
275
128
243
Technology costs
218
242
173
214
Market data services
211
229
167
202
Travel and entertainment
107
101
85
89
Marketing and communication
66
88
52
78
Fees to audit firms
32
48
26
42
of which: financial and regulatory audits
21
43
16
38
of which: audit-related services
11
4
9
3
of which: tax and other services
0
2
0
1
Other professional fees
323
487
256
431
Other
5,556
5,997
4,405
5,288
of which: shared services costs charged by UBS Group AG or its subsidiaries
5,027
5,572
3,986
4,911
Total general and administrative expenses
7,335
8,097
5,816
7,144
UBS AG standalone financial statements (audited)
19
Note 8
Changes in provisions for litigation, regulatory and similar matters, and other provisions
Included
in
2025
were
litigation
expenses
of
USD
256m
(CHF
203m)
and
2024
included
litigation
expenses
of
USD 1,005m (CHF 905m), largely in the Non-core and Legacy business division.
›
Refer to “Note 17 Provisions and contingent liabilities” in the “Consolidated financial statements” section
of the UBS AG Annual
Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more information
Note 9
Extraordinary income and expenses
Extraordinary income and expenses
USD m
CHF m
For the year ended
For the year ended
31.12.25
31.12.24
31.12.25
31.12.24
Reversal of impairments of subsidiaries and other participations
1
889
3,996
705
3,497
Gains from disposals of subsidiaries and other participations
1
198
1
181
Net gains from disposals of properties
5
16
4
14
Other extraordinary income
8
1
7
1
Total extraordinary income
904
4,211
716
3,693
Accounting policy and methodology alignment effect upon merger of UBS AG and Credit Suisse AG
2
598
504
Other extraordinary expense
17
3
14
1
Total extraordinary expenses
17
600
14
505
1 Refer to Note 4 for more information.
2 Refer to Note 2c for more information.
Gains from disposals of
subsidiaries and other participations
in 2024 included a
gain of USD
169m (CHF 155m) on
the
sale of Credit Suisse Services India Ltd, a former subsidiary of Credit Suisse AG, to UBS Business Solutions AG.
2024 accounting policy and methodology alignment effect upon merger of UBS AG and Credit Suisse AG
As a
result of the
merger of
UBS AG
and Credit Suisse
AG, UBS
AG’s accounting
policies and
methodologies were
applied
to the merger balance sheet of Credit Suisse AG as of 1 January 2024.
This resulted in a merger adjustment of USD 598m (CHF 504m), which was recorded in
Extraordinary expenses
in 2024.
The
adjustment
included
the
alignment
of
methodologies
related
to
credit
allowances
and
provisions
(USD –559m
(CHF –
471m)), which
Credit Suisse
AG generally
accounted for
by reference
to US
GAAP compared
with UBS
AG’s general
application
of
IFRS
Accounting
Standards,
own
credit
adjustment
curves
(USD
–537m
(CHF –452m))
and
smaller
adjustments related to the classification of certain debt instruments at
fair value compared to a legacy Credit Suisse AG
amortized cost
treatment, and
full expense
recognition of
certain loan
origination costs
and fees at
inception, which
were
previously deferred
and recognized
over time
by Credit
Suisse AG.
These effects
were partly
reduced by
the effects
of
electing the
fair value
option for
certain structured
TLAC instruments
under UBS
AG’s accounting
policies (USD
513m
(CHF 432m)),
and
smaller adjustments
related
to
the measurement
of
real
estate and
the
recognition
of
net defined
benefit assets.
UBS AG standalone financial statements (audited)
20
Note 10
Taxes
Taxes
USD m
CHF m
For the year ended
For the year ended
31.12.25
31.12.24
31.12.25
31.12.24
Income tax expense / (benefit)
232
461
184
416
of which: current
240
492
190
443
of which: deferred
(7)
(31)
(6)
(28)
Capital tax
6
40
5
35
Total tax expense / (benefit)
238
501
189
451
A net
income tax expense
of USD
232m (CHF 184m)
was recognized for
UBS AG in
2025, compared
with USD 461m
(CHF 416m) for 2024. The income tax expense for 2025 was reduced by a
benefit of USD 62m (CHF 49m) in respect of
the utilization of tax losses carried forward, primarily in Jersey and Singapore.
The income tax
expense for 2024
was reduced by
a benefit of
USD 36m (CHF
32m) in respect
of the utilization
of tax
losses carried forward, primarily in Jersey and Singapore.
The income tax expenses for 2025 and 2024 related to UBS AG’s taxable profits that
are not offset by tax losses carried
forward.
For
2025,
the
average
tax
rate,
defined
as
net
income
tax
expense
divided
by
the
sum
of
operating
profit
and
extraordinary
income
minus
extraordinary
expenses
and
capital
tax,
was
2.5%
(2024:
8.2%).
This
reflected
the
aforementioned
benefit
in
respect
of
the
utilization
of
tax
losses
carried
forward
and
also
that
no
tax
expense
was
recognized in respect of dividends that UBS AG received from its subsidiaries.
Note 11
Securities financing transactions
Securities financing transactions
USD bn
CHF bn
31.12.25
31.12.24
31.12.25
31.12.24
On-balance sheet
Receivables from securities financing transactions, gross
188.8
200.9
149.7
182.4
Netting of securities financing transactions
(98.2)
(83.5)
(77.9)
(75.8)
Receivables from securities financing transactions, net
90.6
117.3
71.8
106.6
Payables from securities financing transactions, gross
126.3
126.2
100.2
114.6
Netting of securities financing transactions
(98.2)
(83.5)
(77.9)
(75.8)
Payables from securities financing transactions, net
28.1
42.6
22.3
38.7
Assets pledged as collateral in connection with securities financing transactions
87.4
74.8
69.3
67.9
of which: trading portfolio assets
74.6
61.8
59.1
56.1
of which: assets that may be sold or repledged by counterparties
51.3
44.5
40.7
40.4
of which: financial investments
12.8
13.0
10.2
11.8
of which: assets that may be sold or repledged by counterparties
12.0
12.8
9.6
11.7
Off-balance sheet
Fair value of assets received as collateral in connection with securities financing transactions
504.1
425.2
399.7
386.1
of which: repledged
339.6
266.1
269.2
241.6
of which: sold in connection with short sale transactions
47.3
29.3
37.5
26.6
UBS AG standalone financial statements (audited)
21
Note 12a
Collateral for loans and off-balance sheet transactions
Collateral for loans and off-balance sheet transactions
31.12.25
31.12.24
Secured
Unsecured
Total
Secured
Unsecured
Total
Secured by collateral
Secured by
other credit
enhancements
2
Secured by collateral
Secured by
other credit
enhancements
2
USD m
Real estate
Other
collateral
1
Real estate
Other
collateral
1
On-balance sheet
Due from customers, gross
3
20
120,805
1,809
38,846
4
161,480
41
102,479
4,515
43,630
4
150,665
Mortgage loans, gross
8,715
8,715
8,446
8,446
of which: residential mortgages
4,770
4,770
5,242
5,242
of which: other mortgages
5
3,945
3,945
3,204
3,204
Funding provided to significant
regulated subsidiaries eligible as
total loss-absorbing capacity, gross
45,106
45,106
43,675
43,675
Total on-balance sheet, gross
8,735
120,805
1,809
83,952
215,301
8,486
102,479
4,515
87,305
202,786
Allowances
(20)
(255)
(66)
(709)
(1,049)
(7)
(109)
(40)
(1,584)
(1,740)
Total on-balance sheet, net
8,715
120,550
1,744
83,243
214,252
8,479
102,370
4,475
85,721
201,045
Off-balance sheet
Contingent liabilities, gross
2
30,055
211
15,355
45,623
31
20,590
1,276
13,092
34,989
Irrevocable commitments, gross
1,114
26,380
1,924
14,227
43,644
737
23,883
2,728
17,120
44,469
Forward starting reverse repurchase
and securities borrowing
transactions
56,836
56,836
64,036
64,036
Liabilities for calls on shares and
other equities
5
5
5
5
Total off-balance sheet
1,116
113,271
2,135
29,587
146,109
768
108,510
4,004
30,217
143,499
1 Mainly includes cash
and securities.
2 Includes guarantees.
3 Includes prime brokerage
margin lending receivables
and prime brokerage
receivables relating to
securities financing transactions.
4 Primarily
consists of amounts due from subsidiaries and other Group entities.
5 Consists of office and business premises, industrial premises, and other
mortgages.
Collateral for loans and off-balance sheet transactions
31.12.25
31.12.24
Secured
Unsecured
Total
Secured
Unsecured
Total
Secured by collateral
Secured by
other credit
enhancements
2
Secured by collateral
Secured by
other credit
enhancements
2
CHF m
Real estate
Other
collateral
1
Real estate
Other
collateral
1
On-balance sheet
Due from customers, gross
3
16
95,789
1,434
30,801
4
128,041
37
93,061
4,100
39,620
4
136,818
Mortgage loans, gross
6,910
6,910
7,669
7,669
of which: residential mortgages
3,783
3,783
4,760
4,760
of which: other mortgages
5
3,128
3,128
2,908
2,908
Funding provided to significant
regulated subsidiaries eligible as
total loss-absorbing capacity, gross
35,765
35,765
39,662
39,662
Total on-balance sheet, gross
6,926
95,789
1,434
66,567
170,716
7,706
93,061
4,100
79,281
184,148
Allowances
(16)
(202)
(52)
(562)
(832)
(6)
(99)
(37)
(1,438)
(1,580)
Total on-balance sheet, net
6,910
95,587
1,382
66,005
169,884
7,699
92,962
4,064
77,843
182,568
Off-balance sheet
Contingent liabilities, gross
2
23,831
167
12,175
36,176
28
18,698
1,159
11,888
31,773
Irrevocable commitments, gross
883
20,917
1,526
11,281
34,606
670
21,688
2,477
15,547
40,382
Forward starting reverse repurchase
and securities borrowing
transactions
45,067
45,067
58,151
58,151
Liabilities for calls on shares and
other equities
4
4
4
4
Total off-balance sheet
885
89,815
1,693
23,460
115,853
698
98,538
3,636
27,440
130,311
1 Mainly includes
cash and securities.
2 Includes guarantees.
3 Includes prime
brokerage margin
lending receivables and
prime brokerage
receivables relating to
securities financing transactions.
4 Primarily
consists of amounts due from subsidiaries and other Group entities.
5 Consists of office and business premises, industrial premises, and other
mortgages.
UBS AG standalone financial statements (audited)
22
Note 12b
Credit-impaired financial instruments
Credit-impaired financial instruments
31.12.25
31.12.24
USD m
Gross credit-
impaired financial
instruments
Allowances
and
provisions
Estimated
liquidation
proceeds of
collateral
Net credit-
impaired
financial
instruments
Gross credit-
impaired
financial
instruments
Allowances
and
provisions
Estimated
liquidation
proceeds of
collateral
Net credit-
impaired
financial
instruments
Amounts due from customers
1,628
827
757
43
3,329
1,496
894
939
Mortgage loans
329
19
311
0
206
4
201
0
Other assets
2
2
0
0
6
4
0
2
Guarantees and loan commitments
147
30
89
28
167
16
117
35
Total credit-impaired financial instruments
1
2,107
879
1,157
71
3,708
1,520
1,212
976
1 Credit-impaired
financial instruments
are financial
assets and
off-balance sheet
positions subject
to incurred
credit losses,
also referred
to as
stage 3
positions.
The net
carrying amount
of amounts
due from
customers, mortgage loans, and other assets is USD 1,111m.
Credit-impaired financial instruments
31.12.25
31.12.24
CHF m
Gross credit-
impaired financial
instruments
Allowances
and
provisions
Estimated
liquidation
proceeds of
collateral
Net credit-
impaired
financial
instruments
Gross credit-
impaired
financial
instruments
Allowances
and
provisions
Estimated
liquidation
proceeds of
collateral
Net credit-
impaired
financial
instruments
Amounts due from customers
1,291
656
600
34
3,023
1,358
812
853
Mortgage loans
261
15
246
0
187
4
183
0
Other assets
2
2
0
0
6
3
0
2
Guarantees and loan commitments
116
24
70
22
152
14
106
32
Total credit-impaired financial instruments
1
1,670
697
917
57
3,367
1,380
1,100
887
1 Credit-impaired
financial instruments
are financial
assets and
off-balance sheet
positions subject
to incurred
credit losses,
also referred
to as
stage 3
positions. The
net carrying
amount of
amounts due
from
customers, mortgage loans, and other assets is CHF 881m.
Note 13
Allowances and provisions
Allowances and provisions
of USD 2,817m
(CHF 2,233m) as of
31 December 2025 included
allowances and provisions
for credit losses of
USD 1,221m (CHF 968m).
Allowances and provisions
of as of 31 December
2024 included allowances
and provisions for credit losses of USD 1,896m (CHF 1,722m).
The decrease
in allowances
and provisions
for credit
losses in
2025 of
USD 676m
(CHF 536m)
included net
credit loss
releases of
USD 535m
(CHF 424m)
recognized in
the income
statement, primarily
related to
credit-impaired positions.
Additionally,
there
were
USD
140m
(CHF
111m)
in
other
allowance
and
provision
movements
without
credit
loss
expenses/
releases
impact,
mainly
from
write-offs
and
other
movements
that
did
not
affect
the
credit
loss
expenses/
releases in the income statement.
The 2025 net credit loss releases
of USD 535m (CHF 424m) mainly reflect
a release from a loan to a
subsidiary, following
a
capital
injection
and
a
related
impairment
recognized
in
Impairments
of
investments
in
subsidiaries
and
other
participations
.
›
Refer to Note 4 for more information
UBS AG standalone financial statements (audited)
23
Note 13a
Allowances for credit losses
Allowances for credit losses
USD m
Balance
as of
31.12.24
Increase
recognized
in the
income
statement
Release
recognized
in the
income
statement
Write-offs
Recoveries
and past
due interest
Reclassifications
/ other
Foreign
currency
translation
Balance
as of
31.12.25
Default risk relating to on-balance sheet exposures
1,762
193
(778)
(150)
70
0
(31)
1,066
of which: incurred credit losses
1,504
193
(750)
(150)
70
0
(19)
848
of which: expected credit losses
258
0
(28)
0
0
0
(12)
218
Other
6
0
(6)
0
0
0
0
0
Total allowances
1,768
193
(784)
(150)
70
0
(31)
1,066
Allowances for credit losses
CHF m
Balance
as of
31.12.24
Effect of
translating
opening
balance at
closing rate
1
Increase
recognized
in the
income
statement
Release
recognized
in the
income
statement
Write-offs
Recoveries
and past
due interest
Reclassifications
/ other
Foreign
currency
translation
Balance
as of
31.12.25
Default risk relating to on-balance sheet exposures
1,600
(204)
153
(617)
(119)
56
0
(24)
846
of which: incurred credit losses
1,366
(174)
153
(595)
(119)
56
0
(15)
673
of which: expected credit losses
235
(31)
0
(22)
0
0
0
(9)
173
Other
6
0
0
(6)
0
0
0
0
0
Total allowances
1,606
(204)
153
(623)
(119)
56
0
(24)
846
1 Refer to “Presentation currencies” in Note 2a for more information.
Note 13b
Provisions
Provisions
USD m
Balance
as of
31.12.24
Increase
recognized
in the
income
statement
Release
recognized
in the
income
statement
Provisions
used in
conformity
with
designated
purpose
Recoveries
Reclassifications
/ other
Foreign
currency
translation
Balance
as of
31.12.25
Default risk related to off-balance sheet items and
credit lines
134
50
0
0
0
0
(29)
154
of which: incurred credit losses
16
26
0
0
0
0
(11)
30
of which: expected credit losses
118
24
0
0
0
0
(18)
124
Litigation, regulatory and similar matters
1
2,492
650
(525)
(1,868)
1
2
177
929
Restructuring
107
348
(55)
(302)
0
122
2
13
233
Real estate
3
191
8
(2)
(41)
0
31
2
30
217
Employee benefits
47
8
(13)
(8)
0
0
5
40
Deferred taxes
61
0
(11)
0
0
66
4
0
116
Other
70
78
(27)
(63)
0
0
3
61
Total provisions
3,101
1,143
(632)
(2,282)
1
222
200
1,751
1 Refer to “Note 17 Provisions
and contingent liabilities” in the
“Consolidated financial statements” section of
the UBS AG Annual Report
2025, available under “Annual
reporting” at ubs.com/investors,
for more
information.
2 Includes provisions transferred to UBS
AG.
3 Includes provisions for onerous contracts
of USD 79m as of 31 December
2025 (31 December 2024: USD 87m) and reinstatement
cost provisions for
leasehold improvements of USD 138m
as of 31 December 2025 (31 December
2024: USD 103m).
4 Includes a USD 61m
deferred tax liability resulting
from the transfer of
the Credit Suisse International
pension
scheme to UBS AG. Refer to Note 23 for more information.
Provisions
CHF m
Balance
as of
31.12.24
Effect of
translating
opening
balance at
closing rate
1
Increase
recognized
in the
income
statement
Release
recognized
in the
income
statement
Provisions
used in
conformity
with
designated
purpose
Recoveries
Reclassifications
/ other
Foreign
currency
translation
Balance
as of
31.12.25
Default risk related to off-balance sheet items
and credit lines
122
(16)
40
0
0
0
0
(23)
122
of which: incurred credit losses
15
(2)
20
0
0
0
0
(8)
24
of which: expected credit losses
107
(13)
19
0
0
0
0
(14)
98
Litigation, regulatory and similar matters
2
2,263
(287)
515
(416)
(1,481)
1
2
141
737
Restructuring
97
(12)
276
(43)
(240)
0
97
3
10
185
Real estate
4
173
(22)
7
(2)
(33)
0
25
3
24
172
Employee benefits
43
(5)
7
(10)
(6)
0
0
4
32
Deferred taxes
55
(7)
0
(8)
0
0
52
5
0
92
Other
63
(8)
62
(21)
(50)
0
0
3
49
Total provisions
2,816
(358)
906
(501)
(1,810)
1
176
158
1,388
1 Refer to “Presentation
currencies” in Note 2a for
more information.
2 Refer to “Note 17
Provisions and contingent liabilities”
in the “Consolidated financial
statements” section of the
UBS AG Annual Report
2025, available under
“Annual reporting”
at ubs.com/investors,
for more information.
3 Includes provisions transferred
to UBS AG.
4 Includes provisions for
onerous contracts of
CHF 63m as of 31
December
2025 (31 December 2024:
CHF 79m) and reinstatement
cost provisions for
leasehold improvements of
CHF 109m as
of 31 December 2025
(31 December 2024: CHF 94m).
5 Includes a
CHF 48m deferred
tax
liability resulting from the transfer of the Credit Suisse International pension scheme to UBS AG.
Refer to Note 23 for more information.
UBS AG standalone financial statements (audited)
24
Note 13c
Development of allowances and provisions for credit losses
Development of allowances and provisions for credit losses
USD m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2024
(1,896)
(226)
(150)
(1,520)
Net movement from new and derecognized transactions
1
(10)
(9)
6
(6)
of which: Large corporate clients
(12)
(11)
(1)
0
Remeasurements with stage transfers
2
586
21
(40)
604
of which: Large corporate clients
(81)
20
(36)
(65)
of which: Other
669
0
0
669
Remeasurements without stage transfers
3
(47)
(2)
21
(66)
of which: Large corporate clients
(44)
(6)
1
(39)
Model changes
4
6
(1)
7
0
Total ECL allowance movements with profit or loss impact
535
9
(6)
533
Movements without profit or loss impact (write-off, FX and other)
5
140
(3)
34
109
Balance as of 31 December 2025
(1,221)
(221)
(121)
(879)
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 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.
Development of allowances and provisions for credit losses
CHF m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2024
(1,722)
(205)
(136)
(1,380)
Effect of translating opening balance at closing rate
1
219
26
17
175
Net movement from new and derecognized transactions
2
(8)
(7)
5
(5)
of which: Large corporate clients
(9)
(8)
0
0
Remeasurements with stage transfers
3
464
17
(32)
479
of which: Large corporate clients
(64)
16
(29)
(51)
of which: Other
530
0
0
530
Remeasurements without stage transfers
4
(37)
(2)
17
(52)
of which: Large corporate clients
(35)
(5)
1
(31)
Model changes
5
5
(1)
6
0
Total ECL allowance movements with profit or loss impact
424
7
(5)
422
Movements without profit or loss impact (write-off, FX and other)
6
111
(3)
27
86
Balance as of 31 December 2025
(968)
(175)
(96)
(697)
1 Refer to “Presentation currencies” in Note 2a for
more information.
2 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.
3 Represents the remeasurement between 12-month and
lifetime ECL due
to stage transfers.
4 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.
5 Represents the change in the allowances and provisions related to
changes in models and methodologies.
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.
UBS AG standalone financial statements (audited)
25
Note 13c
Development of allowances and provisions for credit losses (continued)
Development of allowances and provisions for credit losses
USD m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2023
(294)
(133)
(41)
(120)
Balance recognized upon the merger with Credit Suisse AG as of 1.1.24
(1,551)
(165)
(48)
(1,338)
Net movement from new and derecognized transactions
1
66
88
(31)
10
of which: Large corporate clients
69
90
(31)
10
Remeasurements with stage transfers
2
(210)
4
(1)
(213)
of which: Large corporate clients
(116)
4
(2)
(118)
Remeasurements without stage transfers
3
(10)
10
3
(23)
of which: Large corporate clients
(23)
12
8
(43)
Model changes
4
(52)
(17)
(34)
0
Total ECL allowance movements with profit or loss impact
(206)
84
(64)
(226)
Movements without profit or loss impact (write-off, FX and other)
5
155
(12)
3
164
Balance as of 31 December 2024
(1,896)
(226)
(150)
(1,520)
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 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.
Development of allowances and provisions for credit losses
CHF m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2023
(247)
(112)
(34)
(101)
Balance recognized upon the merger with Credit Suisse AG as of 1.1.24
(1,305)
(139)
(40)
(1,126)
Net movement from new and derecognized transactions
1
58
76
(27)
8
of which: Large corporate clients
60
78
(27)
8
Remeasurements with stage transfers
2
(183)
3
(1)
(185)
of which: Large corporate clients
(101)
3
(2)
(102)
Remeasurements without stage transfers
3
(9)
9
3
(20)
of which: Large corporate clients
(20)
10
7
(38)
Model changes
4
(45)
(15)
(30)
0
Total ECL allowance movements with profit or loss impact
(179)
73
(55)
(196)
Movements without profit or loss impact (write-off, FX and other)
5
9
(27)
(6)
43
Balance as of 31 December 2024
(1,722)
(205)
(136)
(1,380)
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 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.
UBS AG standalone financial statements (audited)
26
Note 13d
Balance sheet and off-balance sheet positions subject to expected credit losses
The
tables
below
provide
information
about
ECL
exposures,
allowances
and
provisions
for
financial
instruments
and
certain non-financial instruments that are subject to ECL.
Balance sheet and off-balance sheet positions subject to expected credit losses
USD m
31.12.25
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
68,630
68,630
0
0
0
0
0
0
Due from banks
102,570
102,570
0
0
(14)
(14)
0
0
Receivables from securities financing transactions
90,565
90,565
0
0
(1)
(1)
0
0
Due from customers
160,471
156,682
2,988
801
(1,009)
(116)
(65)
(827)
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing
capacity
45,085
45,085
0
0
(20)
(20)
0
0
Mortgage loans
8,695
8,315
70
310
(20)
(1)
0
(19)
Accrued income and prepaid expenses
2
2,635
2,627
8
1
0
0
0
0
Other assets
3
1,688
1,678
10
0
(2)
0
0
(2)
Total on-balance sheet financial assets within the scope of ECL
480,340
476,152
3,075
1,112
(1,066)
(153)
(65)
(848)
Total exposure
ECL provisions
Off-balance sheet (within the scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Contingent liabilities, gross
45,623
45,434
169
20
(7)
(2)
0
(4)
Irrevocable commitments, gross
43,644
40,044
3,474
127
(144)
(63)
(56)
(26)
Forward starting transactions (securities financing transactions)
4
10,750
10,750
0
0
0
0
0
0
Credit lines
38,728
38,682
40
6
(3)
(3)
0
0
Irrevocable committed prolongation of existing loans
1,487
1,487
0
0
0
0
0
0
Total off-balance sheet financial instruments and credit lines within the scope of
ECL
140,232
136,396
3,684
152
(154)
(68)
(56)
(30)
Total allowances and provisions
(1,221)
(221)
(121)
(879)
1 The carrying amount of financial assets measured at
amortized cost represents the total gross exposure net of the respective ECL
allowances.
2 Includes components of accrued interest assets within the scope of
ECL.
3 Includes components of other receivables due from UBS Group AG
and subsidiaries in the UBS Group and other assets within the scope of ECL.
Refer to Note 17a for more information.
4 Includes forward
starting reverse repurchase agreements within the scope of ECL.
Balance sheet and off-balance sheet positions subject to expected credit losses
CHF m
31.12.25
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
54,418
54,418
0
0
0
0
0
0
Due from banks
81,330
81,330
0
0
(11)
(11)
0
0
Receivables from securities financing transactions
71,811
71,811
0
0
(1)
(1)
0
0
Due from customers
127,241
124,236
2,370
635
(800)
(92)
(52)
(656)
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing
capacity
35,749
35,749
0
0
(16)
(16)
0
0
Mortgage loans
6,894
6,593
55
246
(16)
(1)
0
(15)
Accrued income and prepaid expenses
2
2,090
2,083
6
1
0
0
0
0
Other assets
3
1,338
1,330
8
0
(2)
0
0
(2)
Total on-balance sheet financial assets within the scope of ECL
380,871
377,551
2,438
882
(846)
(121)
(52)
(673)
Total exposure
ECL provisions
Off-balance sheet (within the scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Contingent liabilities, gross
36,176
36,025
134
16
(5)
(2)
0
(3)
Irrevocable commitments, gross
34,606
31,751
2,755
101
(115)
(50)
(44)
(21)
Forward starting transactions (securities financing transactions)
4
8,524
8,524
0
0
0
0
0
0
Credit lines
30,708
30,672
32
5
(3)
(2)
0
0
Irrevocable committed prolongation of existing loans
1,179
1,179
0
0
0
0
0
0
Total off-balance sheet financial instruments and credit lines within the scope of
ECL
111,193
108,151
2,921
121
(122)
(54)
(44)
(24)
Total allowances and provisions
(968)
(175)
(96)
(697)
1 The carrying amount of financial assets measured at amortized cost represents the total gross
exposure net of the respective ECL allowances.
2 Includes components of accrued interest assets within the scope of
ECL.
3 Includes components of other receivables due from UBS Group AG and subsidiaries
in the UBS Group and other assets within the scope of ECL. Refer to Note 17a for more information.
4 Includes forward
starting reverse repurchase agreements within the scope of ECL.
UBS AG standalone financial statements (audited)
27
Note 13d
Balance sheet and off-balance sheet positions subject to expected credit losses (continued)
Balance sheet and off-balance sheet positions subject to expected credit losses
USD m
31.12.24
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
69,614
69,614
0
0
0
0
0
0
Due from banks
96,243
96,164
79
0
(14)
(14)
(1)
0
Receivables from securities financing transactions
117,338
117,338
0
0
(2)
(2)
0
0
Due from customers
148,955
143,834
3,288
1,833
(1,710)
(106)
(108)
(1,496)
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing
capacity
43,652
43,652
0
0
(23)
(23)
0
0
Mortgage loans
8,438
7,880
356
201
(7)
(2)
(1)
(4)
Accrued income and prepaid expenses
3,091
3,081
10
0
0
0
0
0
Other assets
2
2,172
2,170
0
2
(5)
(1)
0
(4)
Total on-balance sheet financial assets within the scope of ECL
489,504
483,734
3,733
2,037
(1,762)
(148)
(109)
(1,504)
Total exposure
ECL provisions
Off-balance sheet (within the scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Contingent liabilities, gross
34,989
34,799
147
43
(7)
(4)
0
(3)
Irrevocable commitments, gross
44,469
40,818
3,526
125
(128)
(74)
(40)
(14)
Forward starting transactions (securities financing transactions)
3
22,954
22,954
0
0
0
0
0
0
Credit lines
39,291
39,239
46
6
0
0
0
0
Irrevocable committed prolongation of existing loans
245
245
0
0
0
0
0
0
Total off-balance sheet financial instruments and credit lines within the scope of
ECL
141,947
138,055
3,718
173
(134)
(78)
(40)
(16)
Total allowances and provisions
(1,896)
(226)
(150)
(1,520)
1 The carrying amount of financial assets measured
at amortized cost represents the total gross exposure net of the
respective ECL allowances.
2 Includes components of other receivables due from UBS
Group AG
and subsidiaries in the UBS Group and other assets within the scope of ECL. Refer to Note 17a for more information.
3 Includes forward starting reverse repurchase agreements within the scope of ECL.
Balance sheet and off-balance sheet positions subject to expected credit losses
CHF m
31.12.24
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
63,217
63,217
0
0
0
0
0
0
Due from banks
87,399
87,327
71
0
(13)
(12)
(1)
0
Receivables from securities financing transactions
106,555
106,555
0
0
(2)
(2)
0
0
Due from customers
135,266
130,616
2,985
1,664
(1,553)
(96)
(98)
(1,358)
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing
capacity
39,640
39,640
0
0
(21)
(21)
0
0
Mortgage loans
7,662
7,156
324
183
(6)
(2)
(1)
(4)
Accrued income and prepaid expenses
2,807
2,798
9
0
0
0
0
0
Other assets
2
1,972
1,970
0
2
(4)
(1)
0
(3)
Total on-balance sheet financial assets within the scope of ECL
444,518
439,279
3,390
1,849
(1,600)
(134)
(100)
(1,366)
Total exposure
ECL provisions
Off-balance sheet (within the scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Contingent liabilities, gross
31,773
31,601
134
39
(6)
(4)
0
(2)
Irrevocable commitments, gross
40,382
37,067
3,202
113
(116)
(67)
(37)
(12)
Forward starting transactions (securities financing transactions)
3
20,844
20,844
0
0
0
0
0
0
Credit lines
35,680
35,633
41
5
0
0
0
0
Irrevocable committed prolongation of existing loans
222
222
0
0
0
0
0
0
Total off-balance sheet financial instruments and credit lines within the scope of
ECL
128,901
125,367
3,377
157
(122)
(71)
(36)
(15)
Total allowances and provisions
(1,722)
(205)
(136)
(1,380)
1 The carrying amount of financial assets measured at
amortized cost represents the total gross exposure net of the respective ECL
allowances.
2 Includes components of other receivables due from UBS Group AG
and subsidiaries in the UBS Group and other assets within the scope of ECL. Refer to Note 17a for more information.
3 Includes forward starting reverse repurchase agreements within the scope of ECL.
UBS AG standalone financial statements (audited)
28
Note 13e
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.
Financial assets subject to credit risk, by rating category
USD m
31.12.25
Rating category
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 instruments measured at amortized cost
Cash and balances at central banks
68,386
217
27
0
0
0
68,630
0
68,630
of which: stage 1
68,386
217
27
0
0
0
68,630
0
68,630
Due from banks
4,842
90,856
2,511
4,068
308
0
102,584
(14)
102,570
of which: stage 1
4,842
90,856
2,511
4,068
308
0
102,584
(14)
102,570
Receivables from securities financing transactions
23,248
24,013
10,212
32,092
1,001
0
90,566
(1)
90,565
of which: stage 1
23,248
24,013
10,212
32,092
1,001
0
90,566
(1)
90,565
Due from customers
4,756
45,792
14,722
78,988
15,594
1,628
161,480
(1,009)
160,471
of which: stage 1
4,756
45,755
14,269
78,366
13,651
0
156,798
(116)
156,682
of which: stage 2
0
37
452
621
1,943
0
3,054
(65)
2,988
of which: stage 3
0
0
0
0
0
1,628
1,628
(827)
801
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
0
45,106
0
0
0
0
45,106
(20)
45,085
of which: stage 1
0
45,106
0
0
0
0
45,106
(20)
45,085
Mortgage loans
1
299
1,626
5,652
807
329
8,715
(20)
8,695
of which: stage 1
1
295
1,622
5,606
792
0
8,316
(1)
8,315
of which: stage 2
0
4
5
47
15
0
70
0
70
of which: stage 3
0
0
0
0
0
329
329
(19)
310
Accrued income and prepaid expenses
175
1,177
164
1,033
86
1
2,635
0
2,635
of which: stage 1
175
1,177
159
1,033
84
0
2,627
0
2,627
of which: stage 2
0
0
5
0
2
0
8
0
8
of which: stage 3
0
0
0
0
0
1
1
0
1
Other assets
50
585
37
1,005
10
2
1,690
(2)
1,688
of which: stage 1
50
578
37
1,003
10
0
1,678
0
1,678
of which: stage 2
0
7
0
2
0
0
10
0
10
of which: stage 3
0
0
0
0
0
2
2
(2)
0
Total in scope of ECL assets / ECL amounts by stages
101,459
208,045
29,299
122,838
17,805
1,960
481,406
(1,066)
480,340
Off-balance sheet positions and credit lines subject to expected credit loss, by rating category
USD m
31.12.25
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total off-
balance sheet
exposure
(maximum
exposure to
credit risk)
ECL provisions
Off-balance sheet (within the scope of ECL)
Contingent liabilities, gross
25,709
7,812
363
2,222
9,496
20
45,623
(7)
of which: stage 1
25,709
7,812
343
2,194
9,376
0
45,434
(2)
of which: stage 2
0
0
20
28
120
0
169
0
of which: stage 3
0
0
0
0
0
20
20
(4)
Irrevocable commitments, gross
468
8,642
9,990
6,736
17,681
127
43,644
(144)
of which: stage 1
468
8,477
9,930
6,664
14,505
0
40,044
(63)
of which: stage 2
0
165
60
73
3,176
0
3,474
(56)
of which: stage 3
0
0
0
0
0
127
127
(26)
Forward starting transactions (securities financing transactions)
0
2,050
13
8,687
0
0
10,750
0
of which: stage 1
0
2,050
13
8,687
0
0
10,750
0
Credit lines
6
33,601
814
4,217
85
6
38,728
(3)
of which: stage 1
6
33,584
807
4,217
69
0
38,682
(3)
of which: stage 2
0
17
7
0
16
0
40
0
of which: stage 3
0
0
0
0
0
6
6
0
Irrevocable committed prolongation of existing loans
0
1,483
0
3
0
0
1,487
0
of which: stage 1
0
1,483
0
3
0
0
1,487
0
Total off-balance sheet financial instruments and credit lines
26,182
53,587
11,181
21,866
27,263
152
140,232
(154)
UBS AG standalone financial statements (audited)
29
Note 13e
Financial assets subject to credit risk, by rating category (continued)
Financial assets subject to credit risk, by rating category
CHF m
31.12.25
Rating category
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 instruments measured at amortized cost
Cash and balances at central banks
54,225
172
21
0
0
0
54,418
0
54,418
of which: stage 1
54,225
172
21
0
0
0
54,418
0
54,418
Due from banks
3,840
72,041
1,991
3,225
244
0
81,341
(11)
81,330
of which: stage 1
3,840
72,041
1,991
3,225
244
0
81,341
(11)
81,330
Receivables from securities financing transactions
18,434
19,040
8,097
25,446
794
0
71,811
(1)
71,811
of which: stage 1
18,434
19,040
8,097
25,446
794
0
71,811
(1)
71,811
Due from customers
3,771
36,310
11,673
62,631
12,365
1,291
128,041
(800)
127,241
of which: stage 1
3,771
36,280
11,314
62,138
10,824
0
124,328
(92)
124,236
of which: stage 2
0
30
359
493
1,540
0
2,421
(52)
2,370
of which: stage 3
0
0
0
0
0
1,291
1,291
(656)
635
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
0
35,765
0
0
0
0
35,765
(16)
35,749
of which: stage 1
0
35,765
0
0
0
0
35,765
(16)
35,749
Mortgage loans
1
237
1,289
4,482
640
261
6,910
(16)
6,894
of which: stage 1
1
234
1,286
4,445
628
0
6,594
(1)
6,593
of which: stage 2
0
3
4
37
12
0
55
0
55
of which: stage 3
0
0
0
0
0
261
261
(15)
246
Accrued income and prepaid expenses
139
933
130
819
68
1
2,090
0
2,090
of which: stage 1
139
933
126
819
66
0
2,083
0
2,083
of which: stage 2
0
0
4
0
2
0
6
0
6
of which: stage 3
0
0
0
0
0
1
1
0
1
Other assets
39
464
30
797
8
2
1,340
(2)
1,338
of which: stage 1
39
458
30
796
8
0
1,330
0
1,330
of which: stage 2
0
6
0
2
0
0
8
0
8
of which: stage 3
0
0
0
0
0
2
2
(2)
0
Total in scope of ECL assets / ECL amounts by stages
80,449
164,963
23,232
97,401
14,118
1,554
381,717
(846)
380,871
Off-balance sheet positions and credit lines subject to expected credit loss, by rating category
CHF m
31.12.25
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total off-
balance sheet
exposure
(maximum
exposure to
credit risk)
ECL provisions
Off-balance sheet (within the scope of ECL)
Contingent liabilities, gross
20,385
6,195
288
1,762
7,530
16
36,176
(5)
of which: stage 1
20,385
6,194
272
1,740
7,434
0
36,025
(2)
of which: stage 2
0
0
16
22
96
0
134
0
of which: stage 3
0
0
0
0
0
16
16
(3)
Irrevocable commitments, gross
371
6,852
7,922
5,341
14,020
101
34,606
(115)
of which: stage 1
371
6,721
7,874
5,284
11,502
0
31,751
(50)
of which: stage 2
0
131
48
58
2,518
0
2,755
(44)
of which: stage 3
0
0
0
0
0
101
101
(21)
Forward starting transactions (securities financing transactions)
0
1,625
10
6,888
0
0
8,524
0
of which: stage 1
0
1,625
10
6,888
0
0
8,524
0
Credit lines
4
26,643
646
3,344
67
5
30,708
(3)
of which: stage 1
4
26,629
640
3,344
54
0
30,672
(2)
of which: stage 2
0
13
6
0
13
0
32
0
of which: stage 3
0
0
0
0
0
5
5
0
Irrevocable committed prolongation of existing loans
0
1,176
0
3
0
0
1,179
0
of which: stage 1
0
1,176
0
3
0
0
1,179
0
Total off-balance sheet financial instruments and credit lines
20,760
42,490
8,866
17,338
21,617
121
111,193
(122)
›
Refer to “Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss measurement”
and
“Note 19 Expected credit loss measurement”
in the “Consolidated financial statements” section of the UBS AG Annual Report
2025, available under “Annual reporting” at
ubs.com/investors
, for more information about ECL in accordance with IFRS
Accounting Standards
UBS AG standalone financial statements (audited)
30
Note 13e
Financial assets subject to credit risk, by rating category (continued)
Financial assets subject to credit risk, by rating category
USD m
31.12.24
Rating category
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 instruments measured at amortized cost
Cash and balances at central banks
69,375
216
23
0
0
0
69,614
0
69,614
of which: stage 1
69,375
216
23
0
0
0
69,614
0
69,614
Due from banks
10,103
82,957
1,501
1,572
124
0
96,257
(14)
96,243
of which: stage 1
10,103
82,957
1,483
1,570
65
0
96,178
(14)
96,164
of which: stage 2
0
0
18
2
59
0
79
(1)
79
Receivables from securities financing transactions
50,251
23,557
12,213
29,796
1,523
0
117,340
(2)
117,338
of which: stage 1
50,251
23,557
12,213
29,796
1,523
0
117,340
(2)
117,338
Due from customers
5,426
52,373
18,111
64,292
7,136
3,326
150,665
(1,710)
148,955
of which: stage 1
5,426
52,252
17,718
63,125
5,419
0
143,940
(106)
143,834
of which: stage 2
0
121
392
1,167
1,715
0
3,396
(108)
3,288
of which: stage 3
0
0
0
0
2
3,326
3,329
(1,496)
1,833
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
0
43,675
0
0
0
0
43,675
(23)
43,652
of which: stage 1
0
43,675
0
0
0
0
43,675
(23)
43,652
Mortgage loans
2
599
1,653
4,518
1,468
206
8,446
(7)
8,438
of which: stage 1
2
582
1,628
4,309
1,362
0
7,883
(2)
7,880
of which: stage 2
0
17
25
209
106
0
357
(1)
356
of which: stage 3
0
0
0
0
0
206
206
(4)
201
Accrued income and prepaid expenses
373
1,512
296
839
72
0
3,091
0
3,091
of which: stage 1
373
1,512
290
838
69
0
3,081
0
3,081
of which: stage 2
0
0
6
1
3
0
10
0
10
Other assets
348
416
41
1,349
16
6
2,177
(5)
2,172
of which: stage 1
348
416
41
1,349
16
0
2,170
(1)
2,170
of which: stage 3
0
0
0
0
0
6
6
(4)
2
Total in scope of ECL assets / ECL amounts by stages
135,879
205,306
33,837
102,366
10,339
3,538
491,265
(1,762)
489,504
Off-balance sheet positions and credit lines subject to expected credit loss, by rating category
USD m
31.12.24
Rating category
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 (in scope of ECL)
Contingent liabilities, gross
16,706
12,865
3,204
1,486
684
43
34,989
(7)
of which: stage 1
16,706
12,862
3,195
1,471
564
0
34,799
(4)
of which: stage 2
0
3
9
16
120
0
147
0
of which: stage 3
0
0
0
0
0
43
43
(3)
Irrevocable commitments, gross
1,447
10,520
10,045
7,549
14,827
82
44,469
(128)
of which: stage 1
1,447
10,354
9,889
7,320
11,808
0
40,818
(74)
of which: stage 2
0
165
156
229
2,975
0
3,526
(40)
of which: stage 3
0
0
0
0
43
82
125
(14)
Forward starting transactions (securities financing transactions)
0
0
0
22,954
0
0
22,954
0
of which: stage 1
0
0
0
22,954
0
0
22,954
0
Credit lines
7
34,857
784
3,522
115
6
39,291
0
of which: stage 1
7
34,838
776
3,522
96
0
39,239
0
of which: stage 2
0
19
8
0
18
0
46
0
of which: stage 3
0
0
0
0
0
6
6
0
Irrevocable committed prolongation of existing loans
0
245
0
0
0
0
245
0
of which: stage 1
0
245
0
0
0
0
245
0
Total off-balance sheet financial instruments and credit lines
18,160
58,486
14,033
35,511
15,626
130
141,947
(134)
UBS AG standalone financial statements (audited)
31
Note 13e
Financial assets subject to credit risk, by rating category (continued)
Financial assets subject to credit risk, by rating category
CHF m
31.12.24
Rating category
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 instruments measured at amortized cost
Cash and balances at central banks
62,999
196
21
0
0
0
63,217
0
63,217
of which: stage 1
62,999
196
21
0
0
0
63,217
0
63,217
Due from banks
9,175
75,334
1,363
1,427
112
0
87,411
(13)
87,399
of which: stage 1
9,175
75,334
1,347
1,426
58
0
87,339
(12)
87,327
of which: stage 2
0
0
17
2
54
0
72
(1)
71
Receivables from securities financing transactions
45,633
21,392
11,090
27,058
1,383
0
106,557
(2)
106,555
of which: stage 1
45,633
21,392
11,090
27,058
1,383
0
106,557
(2)
106,555
Due from customers
4,928
47,560
16,446
58,384
6,481
3,020
136,818
(1,553)
135,266
of which: stage 1
4,928
47,450
16,090
57,324
4,921
0
130,712
(96)
130,616
of which: stage 2
0
110
356
1,059
1,558
0
3,084
(98)
2,985
of which: stage 3
0
0
0
0
2
3,020
3,023
(1,358)
1,664
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
0
39,662
0
0
0
0
39,662
(21)
39,640
of which: stage 1
0
39,662
0
0
0
0
39,662
(21)
39,640
Mortgage loans
2
544
1,501
4,102
1,333
187
7,669
(6)
7,662
of which: stage 1
2
528
1,478
3,913
1,237
0
7,159
(2)
7,156
of which: stage 2
0
16
23
189
96
0
324
(1)
324
of which: stage 3
0
0
0
0
0
187
187
(4)
183
Accrued income and prepaid expenses
338
1,373
269
762
65
0
2,807
0
2,807
of which: stage 1
338
1,373
263
761
63
0
2,798
0
2,798
of which: stage 2
0
0
5
1
2
0
9
0
9
Other assets
316
378
37
1,225
14
6
1,977
(4)
1,972
of which: stage 1
316
378
37
1,225
14
0
1,971
(1)
1,970
of which: stage 3
0
0
0
0
0
6
6
(3)
2
Total in scope of ECL assets / ECL amounts by stages
123,392
186,439
30,727
92,959
9,388
3,213
446,118
(1,600)
444,518
Off-balance sheet positions and credit lines subject to expected credit loss, by rating category
CHF m
31.12.24
Rating category
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 (in scope of ECL)
Contingent liabilities, gross
15,171
11,683
2,910
1,350
621
39
31,773
(6)
of which: stage 1
15,171
11,680
2,902
1,336
513
0
31,601
(4)
of which: stage 2
0
3
8
14
109
0
134
0
of which: stage 3
0
0
0
0
0
39
39
(2)
Irrevocable commitments, gross
1,314
9,553
9,122
6,855
13,464
74
40,382
(116)
of which: stage 1
1,314
9,403
8,980
6,647
10,723
0
37,067
(67)
of which: stage 2
0
150
141
208
2,702
0
3,202
(37)
of which: stage 3
0
0
0
0
39
74
113
(12)
Forward starting transactions (securities financing transactions)
0
0
0
20,844
0
0
20,844
0
of which: stage 1
0
0
0
20,844
0
0
20,844
0
Credit lines
6
31,654
712
3,198
104
5
35,680
0
of which: stage 1
6
31,637
705
3,198
88
0
35,633
0
of which: stage 2
0
17
7
0
17
0
41
0
of which: stage 3
0
0
0
0
0
5
5
0
Irrevocable committed prolongation of existing loans
0
222
0
0
0
0
222
0
of which: stage 1
0
222
0
0
0
0
222
0
Total off-balance sheet financial instruments and credit lines
16,491
53,111
12,744
32,248
14,190
118
128,901
(122)
UBS AG standalone financial statements (audited)
32
Note 14
Trading portfolio and other financial instruments measured at fair value
Trading portfolio and other financial instruments measured at fair value
USD m
CHF m
31.12.25
31.12.24
31.12.25
31.12.24
Assets
Trading portfolio assets
162,706
148,686
129,013
135,022
of which: debt instruments
1
32,795
30,308
26,004
27,523
of which: listed
28,458
21,960
22,565
19,942
of which: equity instruments
119,796
113,185
94,988
102,783
of which: precious metals and other physical commodities
10,116
5,193
8,021
4,715
Total assets measured at fair value
162,706
148,686
129,013
135,022
of which: fair value derived using a valuation model
29,314
27,939
23,243
25,371
of which: securities eligible for repurchase transactions in accordance with liquidity regulations
2
21,469
15,542
17,023
14,113
Liabilities
Trading portfolio liabilities
47,268
29,316
37,480
26,622
of which: debt instruments
1
16,615
11,884
13,174
10,792
of which: listed
16,027
11,157
12,708
10,131
of which: equity instruments
30,654
17,431
24,306
15,829
Financial liabilities designated at fair value
3
110,126
102,901
87,321
93,444
Total liabilities measured at fair value
157,394
132,216
124,801
120,065
of which: fair value derived using a valuation model
123,572
112,247
97,983
101,931
1 Includes money
market paper.
2 Consists of
high-quality liquid
debt securities that
are eligible for
repurchase transactions
at the Swiss
National Bank or
other central
banks.
3 Refer to
Note 20 for
more
information.
UBS AG standalone financial statements (audited)
33
Note 15
Derivative instruments
Derivative instruments
1
31.12.25
31.12.24
USD bn
Derivative
financial
assets
Derivative
financial
liabilities
Total notional
values
2
Derivative
financial
assets
Derivative
financial
liabilities
Total notional
values
2
Interest rate contracts
Forwards
3
0.2
0.1
1,333
0.2
0.2
602
Swaps
27.3
21.6
20,911
32.7
25.8
15,269
of which: designated in hedge accounting relationships
0.0
0.0
197
0.0
0.0
197
Futures
0.0
0.0
918
0.0
0.0
802
Over-the-counter (OTC) options
11.8
13.1
2,081
11.6
13.2
1,963
Exchange-traded options
0.0
0.1
247
0.1
0.2
198
Total
39.4
34.8
25,490
4
44.6
39.4
18,834
Foreign exchange contracts
Forwards
18.7
18.3
3,166
37.2
32.5
2,290
of which: designated in hedge accounting relationships
0.0
0.0
3
0.2
0.0
3
Swaps
24.7
26.1
4,056
53.1
51.4
4,012
of which: designated in hedge accounting relationships
0.3
0.4
66
0.9
0.9
59
Futures
0.0
-
1
0.0
0.0
1
Over-the-counter (OTC) options
6.2
6.3
1,005
9.5
9.7
1,157
Exchange-traded options
0.0
0.0
8
0.1
0.1
9
Total
49.7
50.7
8,236
99.9
93.7
7,469
Equity contracts
Forwards
1.1
0.9
59
0.3
0.3
30
Swaps
6.5
12.9
484
6.1
8.6
363
Futures
0.0
0.0
81
0.0
0.0
80
Over-the-counter (OTC) options
7.6
13.0
411
4.4
8.5
229
Exchange-traded options
15.1
15.6
784
13.2
12.9
778
Total
30.3
42.4
1,818
24.1
30.3
1,479
Credit derivative contracts
Credit default swaps
3.0
3.7
155
2.4
3.0
133
Total return swaps
0.0
0.4
1
0.1
0.4
1
Other
0.7
0.0
8
0.3
0.0
4
Total
3.7
4.0
164
2.8
3.3
139
Commodity, precious metals and other contracts
Forwards
5
1.5
1.5
88
0.6
0.4
78
Swaps
3.9
3.7
93
0.9
1.1
58
Futures
0.0
0.0
17
0.0
0.0
13
Over-the-counter (OTC) options
2.7
2.1
53
0.8
0.4
42
Exchange-traded options
1.0
0.6
18
0.3
0.4
9
Total
9.1
7.9
269
2.6
2.3
200
Total before netting
132.2
140.0
35,977
173.9
169.1
28,120
of which: trading derivatives
131.8
139.6
172.9
168.1
of which: fair value derived using a valuation model
131.3
138.9
171.9
167.2
of which: derivatives designated in hedge accounting relationships
0.3
0.4
1.0
0.9
of which: fair value derived using a valuation model
0.3
0.4
1.0
0.9
Netting with cash collateral payables / receivables
(17.7)
(23.1)
(20.2)
(23.4)
Replacement value netting
(100.4)
(100.4)
(131.8)
(131.7)
Total after netting
14.0
16.5
21.9
14.0
of which: with central clearing counterparties
0.5
0.0
0.6
0.3
of which: with bank and broker-dealer counterparties
1.9
3.6
3.0
4.2
of which: other client counterparties
11.6
12.9
18.3
9.5
1 Bifurcated embedded derivatives are presented on the same balance sheet lines as their host contracts and are excluded from this table. The replacement values and related notional values of these derivatives were
not material for the periods presented.
2 Total notional values
include USD 23.2trn (31 December 2024:
USD 15.5trn) relating to derivatives that
are cleared through either a central
counterparty or an exchange.
The fair value of these derivatives net of the corresponding cash margin was not material for any of the periods
presented.
3 Includes forward rate agreements.
4 Notional amounts related to interest rate contracts
increased by USD 6.7trn
compared with 31 December
2024, mainly due to
higher business volume in
the Investment Bank.
5 Includes derivative loan commitments with
notional values of USD 20bn as
of 31 December
2025 (31 December 2024: USD 23bn) and negative replacement values of USD 33m (31 December 2024: USD 137m).
UBS AG standalone financial statements (audited)
34
Note 15
Derivative instruments (continued)
Derivative instruments
1
31.12.25
31.12.24
CHF bn
Derivative
financial
assets
Derivative
financial
liabilities
Total notional
values
2
Derivative
financial
assets
Derivative
financial
liabilities
Total notional
values
2
Interest rate contracts
Forwards
3
0.2
0.1
1,057
0.2
0.2
547
Swaps
21.7
17.1
16,581
29.7
23.4
13,865
of which: designated in hedge accounting relationships
0.0
0.0
156
0.0
0.0
179
Futures
0.0
0.0
728
0.0
0.0
728
Over-the-counter (OTC) options
9.3
10.4
1,650
10.6
12.0
1,782
Exchange-traded options
0.0
0.0
196
0.1
0.1
180
Total
31.2
27.6
20,212
4
40.5
35.8
17,103
Foreign exchange contracts
Forwards
14.9
14.5
2,511
33.8
29.5
2,080
of which: designated in hedge accounting relationships
0.0
0.0
3
0.1
0.0
3
Swaps
19.6
20.7
3,216
48.2
46.7
3,643
of which: designated in hedge accounting relationships
0.2
0.3
52
0.8
0.9
53
Futures
0.0
0.0
1
0.0
0.0
1
Over-the-counter (OTC) options
5.0
5.0
797
8.7
8.8
1,050
Exchange-traded options
0.0
0.0
6
0.1
0.1
8
Total
39.4
40.2
6,530
90.7
85.1
6,783
Equity contracts
Forwards
0.9
0.7
46
0.3
0.3
27
Swaps
5.2
10.2
384
5.5
7.8
329
Futures
0.0
0.0
65
0.0
0.0
73
Over-the-counter (OTC) options
6.0
10.3
326
4.0
7.7
208
Exchange-traded options
11.9
12.4
621
12.0
11.7
706
Total
24.0
33.6
1,442
21.9
27.5
1,343
Credit derivative contracts
Credit default swaps
2.3
2.9
123
2.2
2.7
121
Total return swaps
0.0
0.3
1
0.0
0.3
1
Other
0.5
0.0
7
0.3
0.0
4
Total
2.9
3.2
130
2.5
3.0
126
Commodity, precious metals and other contracts
Forwards
5
1.2
1.2
70
0.5
0.3
71
Swaps
3.1
2.9
74
0.8
1.0
53
Futures
0.0
0.0
14
0.0
0.0
11
Over-the-counter (OTC) options
2.2
1.6
42
0.7
0.4
38
Exchange-traded options
0.8
0.5
14
0.3
0.4
8
Total
7.2
6.3
213
2.3
2.1
181
Total before netting
104.8
111.0
28,527
157.9
153.5
25,536
of which: trading derivatives
104.5
110.7
157.0
152.7
of which: fair value derived using a valuation model
104.1
110.1
156.1
151.9
of which: derivatives designated in hedge accounting relationships
0.2
0.3
1.0
0.9
of which: fair value derived using a valuation model
0.2
0.3
1.0
0.9
Netting with cash collateral payables / receivables
(14.0)
(18.3)
(18.4)
(21.2)
Replacement value netting
(79.6)
(79.6)
(119.7)
(119.6)
Total after netting
11.1
13.1
19.9
12.7
of which: with central clearing counterparties
0.4
0.0
0.6
0.2
of which: with bank and broker-dealer counterparties
1.5
2.8
2.7
3.8
of which: other client counterparties
9.2
10.2
16.6
8.7
1 Bifurcated embedded derivatives are presented on the same balance sheet lines as their host contracts and are excluded from this table. The replacement values and related notional values of these derivatives were
not material for the periods presented.
2 Total notional values include
CHF 18.4trn (31 December 2024: CHF
14.1trn) relating to derivatives that
are cleared through either a central
counterparty or an exchange.
The fair value of these derivatives net of the corresponding cash margin was not material for any of the periods presented.
3 Includes forward rate agreements.
4 Notional amounts related to interest rate contracts
increased by CHF 5.3trn
compared with 31 December 2024,
mainly due to higher
business volume in the
Investment Bank.
5 Includes derivative loan commitments with
notional values of CHF 16bn as
of 31 December
2025 (31 December 2024: CHF 20bn) and negative replacement values of CHF 26m (31 December 2024: CHF 125m).
UBS AG standalone financial statements (audited)
35
Note 16a
Financial investments by instrument type
Financial investments by instrument type
31.12.25
31.12.24
USD m
Carrying amount
Fair value
Carrying amount
Fair value
Debt instruments
52,554
52,478
38,710
38,190
of which: held to maturity
23,759
23,462
21,095
20,413
of which: available for sale
28,795
29,016
17,615
17,776
Equity instruments
70
75
1,140
1,144
of which: qualified participations
1
0
0
1
1
Other
0
0
0
0
Total financial investments
52,625
52,553
39,850
39,334
of which: securities eligible for repurchase transactions in accordance with liquidity regulations
2
47,310
47,162
34,381
33,744
1 Qualified participations
are investments in which
UBS AG holds
10% or more of
the total capital
or has at least
10% of total
voting rights.
2 Consists of high-quality
liquid debt securities
that are eligible for
repurchase transactions at the Swiss National Bank or other central banks.
Financial investments by instrument type
31.12.25
31.12.24
CHF m
Carrying amount
Fair value
Carrying amount
Fair value
Debt instruments
41,671
41,611
35,153
34,680
of which: held to maturity
18,839
18,603
19,157
18,537
of which: available for sale
22,832
23,008
15,996
16,143
Equity instruments
56
59
1,035
1,038
of which: qualified participations
1
0
0
1
1
Other
0
0
0
0
Total financial investments
41,727
41,670
36,188
35,719
of which: securities eligible for repurchase transactions in accordance with liquidity regulations
2
37,513
37,395
31,221
30,643
1 Qualified participations
are investments in which
UBS AG holds
10% or more of
the total capital
or has at least
10% of total
voting rights.
2 Consists of high-quality
liquid debt securities
that are eligible for
repurchase transactions at the Swiss National Bank or other central banks.
Note 16b
Financial investments by counterparty rating – debt instruments
Financial investments by counterparty rating – debt instruments
USD m
CHF m
31.12.25
31.12.24
31.12.25
31.12.24
Internal UBS rating
1
0–1
23,873
25,113
18,929
22,805
2–3
28,103
13,231
22,283
12,015
4–5
579
363
459
330
6–8
0
0
0
0
9–13
0
0
0
0
Non-rated
0
3
0
3
Total financial investments
52,554
38,710
41,671
35,153
1 Refer to Note 19 for more information.
Note 17a
Other assets
Other assets
USD m
CHF m
31.12.25
31.12.24
31.12.25
31.12.24
Deferral position for hedging instruments
7,249
9,129
5,748
8,290
Deposits and collateral provided in connection with litigation, regulatory and similar matters
209
1,290
166
1,172
Fee-
and commission-related receivables
190
282
151
256
Net assets for defined benefit plans
903
428
716
388
VAT,
withholding tax and other tax receivables
1,217
823
965
747
Other
1,709
1,966
1,355
1,784
of which: other receivables due from UBS Group AG and subsidiaries in the UBS Group
1,212
1,459
961
1,325
Total other assets
1
11,478
13,918
9,101
12,638
1 Includes components of other receivables due from UBS Group AG and subsidiaries in the UBS
Group and other assets totaling USD 1,688m (CHF 1,338m) as of 31 December 2025 (USD 2,172m (CHF 1,972m)
as
of 31 December 2024), which are within the scope of expected credit loss accounting. Refer to Note 13d for more information.
UBS AG standalone financial statements (audited)
36
Note 17b
Other liabilities
Other liabilities
USD m
CHF m
31.12.25
31.12.24
31.12.25
31.12.24
Settlement and clearing accounts
11
401
9
364
Net defined benefit liabilities
61
61
48
55
VAT,
withholding tax and other tax payables
1
224
108
177
98
Other
2,918
4,626
2,313
4,201
of which: other payables due to UBS Group AG and subsidiaries in the UBS Group
1,895
1,885
1,502
1,712
Total other liabilities
3,213
5,196
2,548
4,718
1 Excludes capital tax payables.
Note 18
Pledged assets
The
table
below
provides
information
about
pledged
assets,
other
than
assets
placed
with
central
banks
related
to
undrawn credit
lines and for
payment, clearing and
settlement purposes (31 December
2025: USD 5.4bn (CHF 4.3bn),
31 December 2024: USD 1.1bn (CHF 0.9bn)) and those pledged in connection with securities financing transactions.
›
Refer to Note 11 for more information
Pledged assets
31.12.25
31.12.24
USD m
Carrying amount of
pledged assets
Carrying amount of
pledged assets
Securities
1
10,455
12,112
Property
2
0
2,025
Total pledged assets
10,455
14,137
1 Includes securities pledged for derivative transactions, where the replacement values are managed on a
portfolio basis across counterparties and product types, and therefore there is no
direct relationship between
the specific collateral pledged and
the associated liability.
2 As of 31 December 2024,
these pledged properties served as collateral
for a mortgage loan from UBS
Switzerland AG, the carrying
amount of which
was USD 2,521m. As of 31 December 2025, the properties were no longer pledged following the expiry of the mortgage during 2025.
Pledged assets
31.12.25
31.12.24
CHF m
Carrying amount of
pledged assets
Carrying amount of
pledged assets
Securities
1
8,290
10,999
Property
2
0
1,839
Total pledged assets
8,290
12,838
1 Includes securities pledged for derivative transactions, where the replacement values are managed on a
portfolio basis across counterparties and product types, and therefore there is no
direct relationship between
the specific collateral pledged and
the associated liability.
2 As of 31 December 2024,
these pledged properties served as collateral
for a mortgage loan from UBS
Switzerland AG, the carrying
amount of which
was CHF 2,289m. As of 31 December 2025, the properties were no longer pledged following the expiry of the mortgage during 2025.
UBS AG standalone financial statements (audited)
37
Note 19
Country risk of total assets
The table below provides a breakdown of total non-Swiss assets by
credit rating, after netting of assets and liabilities as
recognized on the balance sheet
but before other risk mitigants.
The credit ratings reflect the
sovereign credit rating of
the country to which the ultimate risk of the
underlying asset is related. The ultimate country of risk for
unsecured loan
positions is the domicile
of the immediate borrower or,
in the case of
a legal entity, the
domicile of the ultimate parent
entity.
For
collateralized
or
guaranteed
positions,
the
ultimate
country
of
risk
is
the
domicile
of
the
provider
of
the
collateral or
guarantor or,
if
applicable, the
domicile of
the
ultimate parent
entity of
the
provider of
the collateral
or
guarantor. For mortgage loans, the ultimate
country of risk is the
country where the real estate is
located. Similarly, the
ultimate country of
risk for property and
equipment is the country
where the property
and equipment are
located. Assets
for which Switzerland
is the ultimate
country of risk
are provided separately
at the bottom
of the table
in order to
provide
a reconciliation to total balance sheet assets.
›
Refer to the “Risk management and control” section of the UBS AG Annual Report 2025, available
under “Annual reporting” at
ubs.com/investors
, for more information
Country risk of total assets
31.12.25
31.12.24
Classification
Internal UBS rating
1
Description
Moody’s Investors
Service
S&P
Fitch
USD m
%
USD m
%
Low risk
0 and 1
Investment grade
Aaa
AAA
AAA
75,156
9
343,884
43
2
Aa1 to Aa3
AA+ to AA–
AA+ to AA–
363,005
46
134,479
17
Medium risk
3
A1 to A3
A+ to A–
A+ to A–
125,201
16
93,246
12
4
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
20,842
3
18,082
2
5
Baa3
BBB–
BBB–
8,115
1
6,872
1
High risk
6
Sub-investment grade
Ba1
BB+
BB+
447
0
828
0
7
Ba2
BB
BB
3,825
0
2,765
0
8
Ba3
BB–
BB–
69
0
246
0
9
B1
B+
B+
1,422
0
1,805
0
Very high risk
10
B2
B
B
382
0
454
0
11
B3
B–
B–
491
0
129
0
12
Caa1 to Caa2
CCC+ to CCC
CCC+ to CCC
5,498
1
4,659
1
13
Caa3 to C
CCC– to C
CCC– to C
157
0
121
0
Distressed
Default
Defaulted
D
D
25
0
119
0
Subtotal
604,636
76
607,688
77
Switzerland
187,705
24
183,608
23
Total assets
792,341
100
791,297
100
1 Internal ratings are mapped to the external ratings in line with the table published in the “Risk management and control”
section of the UBS AG Consolidated Annual Report 2025.
Country risk of total assets
31.12.25
31.12.24
Classification
Internal UBS rating
1
Description
Moody’s Investors
Service
S&P
Fitch
CHF m
%
CHF m
%
Low risk
0 and 1
Investment grade
Aaa
AAA
AAA
59,592
9
312,281
43
2
Aa1 to Aa3
AA+ to AA–
AA+ to AA–
287,834
46
122,121
17
Medium risk
3
A1 to A3
A+ to A–
A+ to A–
99,275
16
84,676
12
4
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
16,526
3
16,420
2
5
Baa3
BBB–
BBB–
6,435
1
6,240
1
High risk
6
Sub-investment grade
Ba1
BB+
BB+
355
0
752
0
7
Ba2
BB
BB
3,033
0
2,511
0
8
Ba3
BB–
BB–
54
0
223
0
9
B1
B+
B+
1,128
0
1,639
0
Very high risk
10
B2
B
B
303
0
412
0
11
B3
B–
B–
389
0
117
0
12
Caa1 to Caa2
CCC+ to CCC
CCC+ to CCC
4,359
1
4,231
1
13
Caa3 to C
CCC– to C
CCC– to C
124
0
110
0
Distressed
Default
Defaulted
D
D
20
0
108
0
Subtotal
479,427
76
551,841
77
Switzerland
148,835
24
166,734
23
Total assets
628,262
100
718,576
100
1 Internal ratings are mapped to the external ratings in line with the table published in the “Risk management and control”
section of the UBS AG Consolidated Annual Report 2025.
UBS AG standalone financial statements (audited)
38
Note 20
Structured debt instruments
The table below provides a breakdown of financial liabilities designated at fair value that are considered structured debt
instruments.
Structured debt instruments
USD m
CHF m
31.12.25
31.12.24
31.12.25
31.12.24
Fixed-rate bonds with structured features
8,275
8,684
6,561
7,886
Structured debt instruments issued:
Equity-linked
60,278
53,917
47,795
48,962
Rates-linked
25,545
22,373
20,255
20,316
Credit-linked
2,990
4,787
2,371
4,347
Commodity-linked
1
3,032
3,620
2,404
3,288
FX-linked
1,467
1,253
1,163
1,138
Funding received from UBS Group AG designated at fair value
2
6,430
4,998
5,098
4,539
Structured over-the-counter (OTC) debt instruments
2,109
3,268
1,672
2,968
Total financial liabilities designated at fair value
110,126
102,901
87,321
93,444
1 Includes precious metals-linked debt instruments issued.
2 Refer to Note 21 for more information.
In addition to
Financial liabilities designated
at fair value
, certain structured
debt instruments were
reported within the
balance
sheet
lines
Due
to
banks
,
Due
to
customers
and
Bonds
issued
.
These
instruments
were
bifurcated
for
measurement purposes. As of 31 December 2025, the total carrying amount
of the host instruments was USD 11,864m
(CHF 9,407m)
(31 December
2024:
USD 8,258m
(CHF 7,499m))
and
the
total
carrying
amount
of
the
bifurcated
embedded derivatives was positive USD 91m (CHF 72m) (31 December 2024: positive USD 63m (CHF 57m)).
Note 21
Funding eligible as total loss-absorbing capacity at the UBS AG level
Funding eligible as total loss-absorbing capacity at the UBS AG level
USD m
CHF m
31.12.25
31.12.24
31.12.25
31.12.24
Funding eligible as total loss-absorbing capacity at the UBS AG level included in:
Funding received from UBS Group AG measured at amortized cost
107,016
108,185
84,855
98,243
Funding received from UBS Group AG designated at fair value
6,430
4,998
5,098
4,539
Bonds issued
0
218
0
198
Total funding eligible as total loss-absorbing capacity at the UBS AG level
1
113,446
113,401
89,953
102,980
1 Represents the
Swiss GAAP carrying
amount of instruments
qualifying as
total loss-absorbing capital.
In accordance with
the Basel III
framework, as
applicable to Swiss
systemically relevant
banks (SRB), total
funding eligible
as total
loss-absorbing capacity
at the
UBS AG
level was
USD 109,738m
(CHF 87,014m)
as of
31 December
2025 (31
December 2024:
USD 108,004m
(CHF 98,079m)).
Refer to
the “UBS
AG
standalone regulatory information” section of this report for more information about Swiss SRB going and gone concern capital.
UBS AG standalone financial statements (audited)
39
Note 22a
Share capital
UBS AG shares issued and outstanding
As of
31 December
2025, UBS AG’s
share capital of
USD 386m
(CHF 306m) consisted
of 3,858,408,466 fully
paid-up
registered issued and outstanding shares with
a nominal value of USD 0.10, which
each entitle the holder to one vote
at
the meeting
of the
shareholders of
UBS AG,
if entered
into the
share register
as having
the right
to vote,
as well
as a
proportionate share of distributed
dividends (unchanged from 31
December 2024). UBS AG’s
shares are not
subject to
any restrictions or limitations on their transferability. All shares were held by UBS Group AG.
Conditional share capital
As of
31 December
2025, the
following conditional
share capital
was available
to the
Board of
Directors (the
BoD) of
UBS AG:
–
Conditional
capital
in
the
amount
of
USD
38,000,000,
for
the
issuance
of
a
maximum
of
380,000,000
fully
paid
registered shares with a nominal value of USD 0.10 each (unchanged from 31 December 2024), to be issued through
the voluntary or mandatory exercise of conversion
rights and / or warrants granted in connection
with the issuance of
bonds or similar financial
instruments on national or
international capital markets. This
conditional capital allowance
was approved at the
Extraordinary General Meeting held
on 26 November 2014,
having originally been approved
at
the Annual General Meeting (the AGM) of UBS AG on 14 April 2010. The BoD has not made use of such allowance.
Conversion capital
As
of
31
December
2025,
UBS
AG
had
conversion
capital
in
the
amount
of
USD
70,000,000,
for
the
issuance
of
a
maximum
of
700,000,000
fully
paid
registered
shares
with
a
nominal
value
of
USD
0.10
each
(unchanged
from
31 December 2024). The issuance
of fully paid registered
shares only occurs through
the mandatory conversion of
claims
arising upon
occurrence of
one or
more trigger
events under
financial market
instruments with
contingent conversion
features issued by UBS AG. The creation of this conversion capital was approved at the AGM held on 23 April 2024.
Non-distributable reserves
Non-distributable reserves
consist of
50% of
the share
capital of
UBS AG, amounting
to USD 193m
(CHF 153m) as of
31 December 2025 (unchanged from 31 December 2024).
Note 22b
Significant shareholders
The sole direct shareholder of UBS AG is
UBS Group AG, which holds 100% of UBS
AG shares. These shares are entitled
to voting
rights. Indirect
shareholders of
UBS AG
included in
the table
below are
the direct
shareholders of
UBS Group AG
(acting in their own name or in their capacity as nominees for other investors or beneficial owners) that were registered
in the UBS Group AG share register with 3% or more of the share capital of UBS Group AG as of 31 December 2025 or
as of 31 December
2024. The shares
and share capital
of UBS AG
held by indirect
shareholders, as shown
in the table
below, represent their relative holding of UBS Group AG shares.
They do not have voting rights in UBS AG.
Significant shareholders
31.12.25
31.12.24
USD m, except where indicated
Share capital held
Shares held (%)
Share capital held
Shares held (%)
Significant direct shareholder of UBS AG
UBS Group AG
386
100
386
100
Significant indirect shareholders of UBS AG
DTC (Cede & Co.), New York
1
30
8
25
6
The Bank of New York Mellon, Everett
13
3
Nortrust Nominees Ltd., London
13
3
14
4
1 DTC (Cede & Co.), New York, “The
Depository Trust Company”, is a US securities clearing organization.
Significant shareholders
31.12.25
31.12.24
CHF m, except where indicated
Share capital held
Shares held (%)
Share capital held
Shares held (%)
Significant direct shareholder of UBS AG
UBS Group AG
306
100
380
100
Significant indirect shareholders of UBS AG
DTC (Cede & Co.), New York
1
24
8
25
6
The Bank of New York Mellon, Everett
10
3
Nortrust Nominees Ltd., London
10
3
14
4
1 DTC (Cede & Co.), New York, “The
Depository Trust Company”, is a US securities clearing organization.
UBS AG standalone financial statements (audited)
40
Note 23
Post-employment benefit plans
Post-employment benefit plans
a) Assets related to defined benefit plans
USD m
CHF m
31.12.25
31.12.24
31.12.25
31.12.24
Net defined benefit assets for defined benefit plans
1
903
428
716
388
Total assets for defined benefit plans
903
428
716
388
1 As of 31 December 2025, USD 903m
(CHF 716m) mainly reflected USD 833m (CHF
660m) for the UBS and Credit Suisse
UK defined benefit plans (including USD 444m
(CHF 352m) transferred from Credit Suisse
International in 2025), USD 34m (CHF 27m) for the Credit Suisse Guernsey defined benefit plan,
USD 29m (CHF 23m) for the UBS US Investment Bank defined benefit plan, and USD 8m
(CHF 6m) for the Credit Suisse
Swiss pension plan. As of 31 December 2024, USD 428m (CHF 388m) mainly reflected USD 362m
(CHF 329m) for the UBS UK defined benefit plan, USD 36m (CHF 33m) for the Credit Suisse Guernsey defined benefit
plan, USD 22m (CHF 20m) for the UBS US Investment Bank defined benefit plan, and USD 6m (CHF 6m) for the Credit Suisse Swiss pension plan.
b) Liabilities related to defined benefit plans
USD m
CHF m
31.12.25
31.12.24
31.12.25
31.12.24
Provision for Swiss pension plans
0
0
0
0
Net defined benefit liabilities for defined benefit plans
1
61
61
48
55
Total provision for defined benefit plans
61
61
48
55
Bank accounts at UBS and UBS debt instruments held by Swiss pension funds
98
293
78
266
UBS derivative financial instruments held by Swiss pension funds
6
15
5
14
Total liabilities related to defined benefit plans
165
369
131
335
1 As of
31 December 2025,
USD 61m (CHF
48m) mainly
reflected USD 35m
(CHF 28m) for
the UBS
US plans,
USD 13m (CHF 10m)
for the UBS
UK plan,
and USD 8m
(CHF 6m)
for the UBS
Taiwan
plan. As of
31 December 2024, USD 61m (CHF 55m) mainly reflected USD 35m (CHF 32m) for the UBS US plans, USD 12m (CHF
11m) for the UBS UK plan, and USD 8m (CHF 7m) for the UBS Taiwan
plan.
c) Swiss pension plans
USD m
CHF m
As of or for the year ended
31.12.25
31.12.24
31.12.25
31.12.24
Pension plan surplus
1
832
1,195
660
1,085
Economic benefit / (obligation) of UBS AG
8
6
6
6
Change in economic benefit / (obligation) recognized in the income statement
0
0
0
0
Employer contributions in the period recognized in the income statement
102
177
81
157
Performance awards-related employer contributions accrued
13
7
10
6
Total pension expense recognized in the income statement within Personnel expenses
114
184
91
163
1 The pension
plan surplus is
determined in accordance
with Swiss GAAP
(FER 26) and
consists of the
reserve for the
fluctuation in asset
value and a
prepaid contribution. The
reserve for the
fluctuation did not
represent an economic benefit for UBS AG in accordance with Swiss accounting standards as of both 31 December 2025 and 31
December 2024.
UBS AG has elected to apply
Swiss accounting standards for its Swiss
pension plan and IFRS Accounting Standards
(IAS
19) for its non-Swiss defined benefit
plans. However,
remeasurements of the defined
benefit obligations and assets for
non-Swiss defined benefit plans are recognized in the income statement rather than directly in equity.
In 2025,
an expense
of USD
255m (CHF
202m) was
recognized in
the income
statement, driven
by expenses
of USD 136m
(CHF 108m) related to
defined contribution plans and
USD 119m (CHF 94m)
related to defined benefit
plans. In 2024,
an
expense
of
USD
277m
(CHF
243m)
was
recognized
in
the
income
statement,
driven
by
expenses
of
USD
130m
(CHF 116m) related to defined contribution plans and USD 148m (CHF 127m) related to defined benefit plans.
In 2025, as part of
the process of winding down
Credit Suisse International, Credit
Suisse International transferred its
UK
pension scheme to UBS
AG via dividend in
kind, with UBS AG
becoming the new principal
employer of the former
Credit
Suisse International UK pension scheme.
The Swiss pension
plans had an
employer contribution reserve of
USD 8m as
of 31 December 2025
and USD 6m
as of
31 December 2024.
›
Refer to Note 2 for more information
›
Refer to “Note 25 Post-employment benefit plans” in the “Consolidated financial statements” section of the UBS
AG Annual
Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more information about defined benefit plans in
accordance with IFRS Accounting Standards
UBS AG standalone financial statements (audited)
41
Note 24
Related parties
Transactions with
related parties are conducted at
internally agreed transfer prices or at arm’s-length terms
and neither
involve more than
the normal risk of
collectability nor contain any
other unfavorable features
for the firm.
Loans, fixed
advances
and
mortgages
granted
to
non-independent
members
of
the
governing
bodies
in
the
ordinary
course
of
business are also on substantially
the same terms and conditions
that are available to other
employees, including interest
rates and
collateral. Independent
members of
the governing
bodies are
granted loans
and mortgages
in the
ordinary
course of business at general market conditions.
Related parties
31.12.25
31.12.24
USD m
Amounts due from
Amounts due to
Amounts due from
Amounts due to
Qualified shareholders
1
1,551
128,815
3,099
123,802
of which: due from / to customers
869
5,915
2,047
2,590
of which: funding received from UBS Group AG measured at amortized cost
114,423
113,898
of which: funding received from UBS Group AG designated at fair value
6,430
4,998
Subsidiaries
188,199
95,774
187,707
116,401
of which: due from / to banks
94,139
66,566
88,211
73,492
of which: due from / to customers
28,842
5,845
33,376
4,869
of which: receivables / payables from securities financing transactions
16,778
20,614
17,475
35,526
of which: funding provided to significant regulated subsidiaries eligible as total loss-
absorbing capacity
45,085
43,652
Affiliated entities
2
173
1,635
502
1,397
of which: due from / to customers
109
1,081
416
889
External auditors
11
23
Other related parties
3
70
1
63
21
1 The qualified shareholder of UBS AG is UBS Group AG.
2 Affiliated entities of UBS AG are all direct subsidiaries of UBS Group AG.
3 Includes amounts due to / from other participations.
Related parties
31.12.25
31.12.24
CHF m
Amounts due from
Amounts due to
Amounts due from
Amounts due to
Qualified shareholders
1
1,230
102,140
2,815
112,424
of which: due from / to customers
689
4,690
1,859
2,352
of which: funding received from UBS Group AG measured at amortized cost
90,728
103,431
of which: funding received from UBS Group AG designated at fair value
5,098
4,539
Subsidiaries
149,226
75,941
170,457
105,704
of which: due from / to banks
74,645
52,782
80,105
66,738
of which: due from / to customers
22,869
4,635
30,309
4,422
of which: receivables / payables from securities financing transactions
13,303
16,346
15,869
32,261
of which: funding provided to significant regulated subsidiaries eligible as total loss-
absorbing capacity
35,749
39,640
Affiliated entities
2
137
1,296
456
1,268
of which: due from / to customers
87
857
378
808
External auditors
8
20
Other related parties
3
55
1
58
19
1 The qualified shareholder of UBS AG is UBS Group AG.
2 Affiliated entities of UBS AG are all direct subsidiaries of UBS Group AG.
3 Includes amounts due to / from other participations.
As
of
31 December
2025,
off-balance
sheet
positions
related
to
subsidiaries
amounted
to
USD 16.0bn
(CHF 12.7bn)
(31 December 2024: USD 14.2bn (CHF 12.9bn)),
of which USD 11.9bn
(CHF 9.4bn) related to
guarantees to third
parties
(31 December 2024: USD
8.4bn (CHF 7.6bn)) and
USD 1.1bn (CHF 0.8bn) related
to loan commitments
(31 December
2024: USD 1.9bn (CHF 1.7bn)).
Loans to and deposits from members of governing bodies were immaterial for all periods presented.
UBS AG standalone financial statements (audited)
42
Note 25
Fiduciary transactions
Fiduciary transactions
USD m
CHF m
31.12.25
31.12.24
31.12.25
31.12.24
Fiduciary deposits
3,997
2,435
3,169
2,211
of which: placed with third-party banks
3,997
2,435
3,169
2,211
of which: placed with subsidiaries and affiliated entities
0
0
0
0
Total fiduciary transactions
3,997
2,435
3,169
2,211
Fiduciary transactions encompass transactions entered into by UBS AG
that result in holding or placing assets
on behalf
of
individuals,
trusts,
defined
benefit
plans
and
other
institutions.
Unless
the
recognition
criteria
for
the
assets
are
satisfied, these assets and the related income are excluded from UBS AG’s balance sheet and
income statement but are
disclosed
in
this
Note
as
off-balance
sheet
fiduciary
transactions.
Client
deposits
that
are
initially
placed
as
fiduciary
transactions with
UBS AG
may be
recognized on
UBS AG’s
balance sheet
in situations
in which
the deposit
is subsequently
placed within UBS AG. In such cases, these deposits are not reported in the table above.
Note 26a
Invested assets and net new money
Invested assets and net new money
USD bn
CHF bn
As of or for the year ended
As of or for the year ended
31.12.25
31.12.24
31.12.25
31.12.24
Discretionary assets
127
106
101
96
Other invested assets
922
799
731
726
Total invested assets
1,049
905
832
822
of which: double counts
1
0
1
0
Net new money
1
23
(12)
18
(11)
1 Includes double counts.
Note 26b
Development of invested assets
Development of invested assets
USD bn
CHF bn
31.12.25
31.12.24
31.12.25
31.12.24
Total invested assets at the beginning of the year
905
494
822
416
Effect of translating opening balance at closing rate
1
(104)
Invested assets recognized upon the merger of UBS AG and Credit Suisse AG
2
382
345
Net new money
23
(12)
18
(11)
Market movements
3
107
67
85
61
Foreign currency translation
25
(10)
20
25
Other effects
(11)
(16)
(9)
(14)
Total invested assets at the end of the year
4
1,049
905
832
822
1 Refer to “Presentation currencies” in Note
2a for more information.
2 Invested assets recognized upon the
merger of UBS AG and
Credit Suisse AG were measured
and reported as of 31 May
2024, the merger
effective date, in alignment with UBS accounting policies
outlined in Note 30 to the
UBS AG consolidated financial statements in the
UBS AG Annual Report 2025.
3 Includes interest and dividend income.
4 Includes
double counts.
›
Refer to “Note 30 Invested assets and net new money” in the “Consolidated financial statements” section of the UBS AG Annual
Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more information
UBS AG standalone financial statements (audited)
43
Statement of proposed appropriation of total profit
and dividend distribution
The Board of
Directors (the BoD)
proposes that the
Annual General Meeting
of Shareholders (the
AGM) on 14 April
2026
approve the
appropriation of
total profit
and an
ordinary dividend
distribution of
USD 4,500m out
of the
total profit.
Furthermore, the BoD proposes the
appropriation of an amount of
USD 4,500m out of the
Voluntary earnings reserve
to
a special dividend reserve within the
Voluntary earnings reserve
.
Appropriation of and distribution out of total profit
USD m
CHF m
For the year ended
For the year ended
31.12.25
31.12.25
Net profit for the period
9,149
7,254
Profit / (loss) carried forward
0
0
Total profit available for appropriation
9,149
7,254
Appropriation of total profit
Appropriation to voluntary earnings reserve
(4,649)
(3,686)
Dividend distribution
(4,500)
(3,568)
1
Profit / (loss) carried forward
0
0
Proposed appropriation to voluntary earnings reserve
Total voluntary earnings reserve before appropriation
5,295
4,199
Appropriation to voluntary earnings reserve
4,649
3,686
Total voluntary earnings reserve after appropriation
9,944
7,885
of which: appropriation to special dividend reserve within voluntary earnings reserve
2
4,500
3,568
1
1 For
illustrative purposes,
converted at
the closing
exchange rate
as of
31 December
2025.
2 The
Voluntary earnings
reserve includes
a special
dividend reserve
of USD
4,500m (CHF
3,568m) available
for
appropriation. The decision
on the special dividend
payment is intended to
be made at an Extraordinary
General Meeting in the
second half of 2026
and is subject to UBS
AG meeting its capital
requirements on a
standalone and consolidated level, and the outcome and timing of the implementation of the new regulatory regime in Switzerland.
UBS AG standalone regulatory information
44
UBS AG standalone regulatory information
Key metrics for the fourth quarter of 2025
The
table
below
is
based
on
the
Swiss
Financial
Market
Supervisory
Authority
(FINMA)
Ordinance
on
the
Disclosure
Obligations of Banks and Securities Firms (DisO-FINMA) rules and IFRS Accounting Standards.
During the fourth quarter
of 2025, tier 1 capital
increased by USD 0.4bn to
USD 93.7bn. Common equity tier 1
(CET1)
capital increased by USD 0.7bn to USD 74.1bn, mainly
reflecting operating profit before tax of USD
1.6bn, partly offset
by additional accruals for capital returns
to UBS Group AG of USD 1.0bn. As of
31 December 2025, accruals for capital
returns to
UBS Group AG
amounted to
USD 9.0bn, reflecting
a proposed
ordinary dividend
distribution of
USD 4.5bn
and the
appropriation of
USD 4.5bn to
a special
dividend reserve,
both subject
to approval
at the
Annual General
Meeting
in the
second quarter
of 2026.
The decision
on the
distribution of
the special
dividend is
intended to
be made
at an
Extraordinary General Meeting in the second half of 2026 and is subject to UBS AG meeting
its capital requirements on
a standalone
and consolidated
level, as
well as
the outcome
and timing
of the
implementation of
the new
regulatory
regime in Switzerland.
Additional tier 1
(AT1) capital
issued by
the Group
and on
lent to UBS
AG decreased
by USD 0.4bn
to USD 19.6bn,
mainly
reflecting the call of one AT1 capital instrument equivalent to USD 0.4bn that was on lent from the Group.
Risk-weighted assets
(RWA) decreased
by USD 26.3bn
to USD 491.6bn
during the
fourth quarter
of 2025,
primarily driven
by lower
RWA on
investments in
subsidiaries following
capital repatriations,
and decreases
in credit
and counterparty
credit risk RWA, as well as market risk RWA. This was partly offset by an increase in operational risk RWA,
mainly due to
the higher business indicator component.
The leverage ratio denominator (the LRD)
decreased by USD 22.1bn to USD 930.0bn, driven
by a USD 20.9bn decrease
from asset
size and
other movements
and a
USD 1.3bn decrease
from currency
effects. The
change in
asset size
and
other movements was
mainly due to
capital repatriations reducing
investments in subsidiaries,
lower lending balances,
and
disposals
of
high-quality
liquid
asset
(HQLA)
portfolio
securities
and
trading
assets,
along
with
lower
securities
financing transactions and derivative exposures, partly offset by increases in cash and balances at central banks and off-
balance sheet items.
Correspondingly,
the
CET1
capital
ratio
of
UBS AG
standalone
increased
to
15.1%
from
14.2%,
reflecting
the
aforementioned decrease
in RWA
and
the
aforementioned increase
in CET1
capital. The
firm’s Basel
III leverage
ratio
increased to 10.1% from 9.8%, reflecting the aforementioned
decrease in the LRD and the aforementioned increase
in
tier 1 capital.
The
quarterly
average
liquidity
coverage
ratio
(the
LCR)
of
UBS AG
standalone
decreased
6.0 percentage
points
to
234.9%, remaining above the prudential
requirement communicated by FINMA.
The movement in the quarterly
average
LCR was primarily
driven by a
decrease in average
HQLA of USD 13.2bn
to USD 149.3bn, mainly
reflecting lower cash
available due
to lower
customer deposits
and higher
funding to
subsidiaries. Average
net cash
outflows decreased
by
USD 3.9bn to USD 63.7bn, mainly reflecting higher inflows from intercompany loans.
As of 31 December 2025, the net stable funding ratio decreased 5.5 percentage points to 90.7%, remaining
above the
prudential requirement
communicated by FINMA.
Available stable
funding decreased
by USD 14.2bn to
USD 404.8bn,
mainly driven
by decreases
in debt
issued measured
at amortized
cost and
intercompany deposits.
Required stable
funding
increased by USD 10.9bn to
USD 446.5bn, mainly reflecting higher
intercompany funding to subsidiaries,
partly offset by
a decrease in investments in subsidiaries due to capital repatriations.
UBS AG standalone regulatory information
45
KM1: Key metrics
USD m, except where indicated
31.12.25
30.9.25
30.6.25
31.3.25
31.12.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
74,108
73,384
73,178
70,980
75,051
2
Tier 1
93,707
93,349
91,834
89,305
90,881
3
Total capital
93,731
93,349
91,834
89,305
90,882
Risk-weighted assets (amounts)
1
4
Total risk-weighted assets (RWA)
491,583
517,929
516,479
514,897
507,964
4a
Total risk-weighted assets (pre-floor)
491,583
517,929
516,479
514,897
4b
Minimum capital requirement
2
39,327
41,434
41,318
41,192
40,637
Risk-based capital ratios as a percentage of RWA
1
5
Common equity tier 1 ratio (%)
15.08
14.17
14.17
13.79
14.77
5b
Common equity tier 1 ratio (%) (pre-floor)
15.08
14.17
14.17
13.79
6
Tier 1 ratio (%)
19.06
18.02
17.78
17.34
17.89
6b
Tier 1 ratio (%) (pre-floor)
19.06
18.02
17.78
17.34
7
Total capital ratio (%)
19.07
18.02
17.78
17.34
17.89
7b
Total capital ratio (%) (pre-floor)
19.07
18.02
17.78
17.34
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
2.50
2.50
2.50
2.50
2.50
9
Countercyclical buffer requirement (%)
0.12
0.14
0.15
0.15
0.19
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
0.00
0.00
0.00
0.00
0.00
10
Bank G-SIB and / or D-SIB additional requirements (%)
3
11
Total of bank CET1 specific buffer requirements (%)
4
2.62
2.64
2.65
2.65
2.69
12
CET1 available after meeting the bank’s minimum capital requirements (%)
5
10.58
9.67
9.67
9.29
9.89
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
929,979
952,112
964,000
935,496
899,348
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
6
10.08
9.80
9.53
9.55
10.11
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
10.08
9.80
9.53
9.55
14c
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
6
9.96
9.72
9.56
9.52
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
9.96
9.72
9.56
9.52
14e
Minimum capital requirements
7
39,327
41,434
41,318
41,192
Liquidity coverage ratio (LCR)
8
15
Total high-quality liquid assets (HQLA)
149,309
162,513
177,434
150,544
142,661
16
Total net cash outflow
63,723
67,644
75,720
65,962
58,620
16a
of which: cash outflows
249,107
244,306
248,255
238,931
231,213
16b
of which: cash inflows
185,384
176,662
172,535
172,969
172,593
17
LCR (%)
234.90
240.93
235.52
229.18
243.95
Net stable funding ratio (NSFR)
9
18
Total available stable funding
404,842
419,024
421,323
410,507
410,197
19
Total required stable funding
446,475
435,582
435,547
418,661
421,792
20
NSFR (%)
90.68
96.20
96.73
98.05
97.25
1 Based on phase-in rules for RWA. Refer to “Swiss systemically relevant bank going and gone concern requirements and information” below for more information.
2 Calculated as 8% of total RWA, based on total
capital minimum requirements, excluding CET1 buffer requirements.
3 Swiss SRB going and gone concern requirements and information for UBS AG standalone are provided below in this section.
4 Excludes non-
BCBS capital buffer requirements for risk-weighted
positions that are directly or indirectly backed
by residential properties in Switzerland.
5 Represents the CET1 ratio that is available
to meet buffer requirements.
Calculated as the
CET1 ratio minus
the BCBS CET1
capital requirement and,
where applicable, minus
the BCBS tier
2 capital requirement
met with CET1
capital.
6 There is currently
no temporary exemption
of
central bank reserves for UBS.
7 The higher of capital requirements based
on 8% of RWA or 3% of LRD.
8 Calculated after the application of haircuts and inflow
and outflow rates, as well as,
where applicable,
caps on Level 2 assets and cash inflows. Calculated based on an average of 64 data points in the fourth
quarter of 2025 and 65 data points in the third quarter of 2025. For the prior-quarter
data points, refer to the
respective Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information.
9 In accordance with Art. 17h para. 3 and 4 of the Liquidity Ordinance, UBS AG standalone is required to
maintain a minimum NSFR of at least 80% without taking into account excess funding of UBS Switzerland AG and 100% after taking into account
such excess funding.
Swiss systemically relevant bank going and gone concern requirements and information
UBS AG standalone is considered a systemically relevant bank (an SRB) under Swiss banking law and is subject to capital
regulations on a standalone basis.
The going concern
requirements include the
FINMA Pillar 2 add-on
related to the
supply chain finance
funds matter at
Credit Suisse.
This Pillar 2
add-on results
in an
additional CET1
capital ratio
requirement of
2 basis points
and an
additional
CET1 leverage ratio requirement of 1 basis point as of 31 December 2025.
Effective
1 January
2025,
a
Pillar 2
capital
add-on
for
residual
exposures
(after
collateral
mitigation)
to
hedge
funds,
private equity and
family offices has
been introduced. This
resulted in an
increase as of
31 December 2025 of
18 basis
points in the RWA phase-in-based
going concern capital requirement
and 17 basis points in the
RWA fully applied-based
going concern capital requirement.
The
capital
requirements
based
on
RWA
include
a
minimum
CET1
capital
requirement
of
10.27%,
including
a
countercyclical
buffer
of
0.12%
and
the
Pillar 2
add-ons, and
a
total
going
concern
capital
requirement
of
14.62%,
including a countercyclical buffer of 0.12% and the Pillar 2 add-ons. The capital requirements based on the LRD include
a minimum CET1 capital requirement of 3.51% and a total going concern leverage ratio requirement of 5.01%.
CET1 capital and high-trigger AT1 capital instruments are eligible as going concern capital.
UBS AG standalone regulatory information
46
UBS AG standalone is
subject to a
gone concern capital
requirement based on
the sum of:
(i) the nominal value
of the
gone
concern
instruments
issued
by
UBS
entities
and
held
by
the
parent
firm;
(ii) 75%
of
the
going
concern
capital
requirements resulting from
third-party exposure on
a standalone basis;
and (iii) a buffer
requirement equal to
30% of
the Group’s
gone concern
capital requirement
on UBS AG’s
consolidated exposure.
The gone
concern capital
requirement
is the
higher of
RWA- and
LRD-based requirements,
calculated separately.
The gone
concern capital
coverage ratio
reflects
how much
gone concern
capital is
available to
meet the
gone concern
requirement. Outstanding
total loss-absorbing
capacity-eligible
unsecured
debt
instruments
are
eligible
to
meet
gone
concern
requirements
until
one
year
before
maturity.
›
Refer to “Capital and capital ratios of our significant regulated subsidiaries” in the “Capital
management” section of the UBS
Group Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
, for information about the joint liability of
UBS AG and UBS Switzerland AG
The
tables
below
provide
details
of
the
Swiss
SRB
RWA-
and
LRD-based
going
and
gone
concern
requirements
and
information as required by FINMA; details regarding eligible gone concern instruments are provided below.
Swiss SRB going and gone concern requirements and information
As of 31.12.25
RWA, phase-in
RWA, fully applied as of 1.1.28
1
LRD
USD m, except where indicated
in %
in %
in %
Required going concern capital
Total going concern capital
14.62
2
71,866
14.61
2
76,379
5.01
2
46,606
Common equity tier 1 capital
10.27
3
50,464
10.26
3
53,631
3.51
32,656
of which: minimum capital
4.50
22,121
4.50
23,529
1.50
13,950
of which: buffer capital
5.50
27,037
5.50
28,758
2.00
18,600
of which: countercyclical buffer
0.12
584
0.12
621
Maximum additional tier 1 capital
4.35
3
21,402
4.35
3
22,748
1.50
13,950
of which: additional tier 1 capital
3.50
17,205
3.50
18,301
1.50
13,950
of which: additional tier 1 buffer capital
0.80
3,933
0.80
4,183
Eligible going concern capital
Total going concern capital
19.06
93,707
17.92
93,707
10.08
93,707
Common equity tier 1 capital
15.08
74,108
14.17
74,108
7.97
74,108
Total loss-absorbing additional tier 1 capital
3.99
19,600
3.75
19,600
2.11
19,600
of which: high-trigger loss-absorbing additional tier 1 capital
3.99
19,600
3.75
19,600
2.11
19,600
of which: low-trigger loss-absorbing additional tier 1 capital
0.00
0
0.00
0
0.00
0
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
491,583
522,876
Leverage ratio denominator
929,979
Required gone concern capital
4
Higher of RWA-
or LRD-based
Total gone concern loss-absorbing capacity
78,104
Eligible gone concern capital
Total gone concern loss-absorbing capacity
90,163
Total tier 2 capital
5
24
TLAC-eligible unsecured debt
90,139
Gone concern capital coverage ratio
115.44
1 Fully applied relates to participation
RWA. Direct and indirect investments
including holding of regulatory capital instruments
in Switzerland-domiciled subsidiaries and for
direct and indirect investments including
holding of regulatory
capital instruments in
foreign-domiciled subsidiaries were
risk weighted at
235% and 340%,
respectively, for
2025. As per
current rules,
risk weights will
gradually increase by
5 percentage
points per year for Switzerland-domiciled investments and 20 percentage points
per year for foreign-domiciled investments until the fully applied risk
weights of 250% and 400%, respectively, are applied.
2 Includes
applicable add-ons of 1.64% for risk-weighted assets (RWA, phase-in),
1.63% for risk-weighted assets (RWA, fully applied) and
0.51% for leverage ratio denominator (LRD), of which
2 basis points for RWA phase-
in, 2 basis points for RWA fully applied and 1 basis point for LRD reflect a Pillar 2 capital add-on of USD 107m related to the supply chain finance funds matter at Credit Suisse. An additional 18 basis
points for RWA
phase-in and 17 basis
points for RWA
fully applied reflect
a Pillar 2 capital
add-on for the residual
exposure (after collateral
mitigation) to hedge
funds, private
equity and family
offices, effective 1
January 2025.
3 Includes the Pillar 2 add-on for the residual exposure (after collateral mitigation) to hedge funds, private equity and family offices of 0.13% for CET1 capital and 0.05% for AT1 capital for RWA phase-in and 0.12%
for CET1 capital
and 0.05%
for AT1
capital for
RWA fully
applied, effective
1 January
2025. For
AT1 capital
under Pillar
1 requirements
a maximum
of 4.3%
of AT1
capital can
be used
to meet
going concern
requirements; 4.35% for RWA phase-in and 4.35%
for RWA fully applied include the aforementioned Pillar
2 capital add-on.
4 A maximum of 25% of the gone concern requirements
can be met with instruments
that have a remaining maturity of between one and two years. Once at least 75% of the minimum gone concern requirement has been met with instruments that have a remaining maturity of greater than two years,
all instruments that have a remaining maturity of between one and two years remain eligible to be included in the total gone concern capital.
5 Reflects an add-back of 45% of unrealized gains from financial assets
measured at fair value through other comprehensive income. Such gains do not qualify as CET1 capital
but 45% of these gains can be recognized as tier 2 capital.
UBS AG standalone regulatory information
47
Swiss SRB going and gone concern information
USD m, except where indicated
31.12.25
30.9.25
31.12.24
Eligible going concern capital
Total going concern capital
93,707
93,349
90,881
Total tier 1 capital
93,707
93,349
90,881
Common equity tier 1 capital
74,108
73,384
75,051
Total loss-absorbing additional tier 1 capital
19,600
19,964
15,830
of which: high-trigger loss-absorbing additional tier 1 capital
19,600
19,964
14,585
of which: low-trigger loss-absorbing additional tier 1 capital
1,245
Eligible gone concern capital
Total gone concern loss-absorbing capacity
90,163
98,452
92,174
Total tier 2 capital
24
1
0
204
of which: non-Basel III-compliant tier 2 capital
0
0
204
TLAC-eligible unsecured debt
90,139
98,452
91,970
Total loss-absorbing capacity
Total loss-absorbing capacity
183,870
191,800
183,055
Denominators for going and gone concern ratios
Risk-weighted assets, phase-in
491,583
517,929
507,964
of which: investments in Switzerland-domiciled subsidiaries
2
91,598
91,436
83,221
of which: investments in foreign-domiciled subsidiaries
2
144,200
167,254
162,098
Risk-weighted assets, fully applied as of 1.1.28
522,876
553,280
555,726
of which: investments in Switzerland-domiciled subsidiaries
2
97,444
97,272
90,458
of which: investments in foreign-domiciled subsidiaries
2
169,647
196,770
202,623
Leverage ratio denominator
929,979
952,112
899,348
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio, phase-in
19.1
18.0
17.9
of which: common equity tier 1 capital ratio, phase-in
15.1
14.2
14.8
Going concern capital ratio, fully applied as of 1.1.28
17.9
16.9
16.4
of which: common equity tier 1 capital ratio, fully applied as of 1.1.28
14.2
13.3
13.5
Leverage ratios (%)
Going concern leverage ratio
10.1
9.8
10.1
of which: common equity tier 1 leverage ratio
8.0
7.7
8.3
Capital coverage ratio (%)
Gone concern capital coverage ratio
115.4
125.4
122.3
1 Reflects an add-back of 45%
of unrealized gains from financial assets
measured at fair value through other
comprehensive income. Such gains do not qualify as
CET1 capital but 45% of these
gains can be recognized
as tier 2
capital.
2 Fully applied
relates to participation
RWA. Direct
and indirect investments
including holding of
regulatory capital instruments
in Switzerland-domiciled
subsidiaries and for
direct and indirect
investments including holding of regulatory capital instruments in foreign-domiciled subsidiaries were risk weighted at 235% and 340%, respectively, for 2025. As per current rules, risk weights will gradually increase
by 5 percentage points per
year for Switzerland-domiciled investments
and 20 percentage points
per year for foreign-domiciled
investments until the fully
applied risk weights of
250% and 400%, respectively,
are
applied.
UBS AG standalone regulatory information
48
Sustainability and climate risk
Our climate strategy
and governance are
determined and overseen
at the UBS
Group level. Climate-related
metrics for
the UBS AG legal entity are presented in the UBS Group Annual Report 2025.
›
Refer to “Our focus on sustainability” in the “Our stakeholders” section and to “Sustainability and climate risk” in the “Risk
management and control” section of the UBS Group Annual Report 2025, available
under “Annual reporting” at
ubs.com/investors
, for more information
›
Refer to “Our sustainability and impact strategy” in the “Strategy” section of the UBS Group Sustainability
Report 2025, available
under “Annual reporting” at
ubs.com/investors
, for more information
Cautionary statement |
This report and
the information contained
herein are provided solely
for information purposes,
and are not
to be construed
as solicitation
of an offer to buy or sell any
securities or other financial instruments in Switzerland, the United
States or any other jurisdiction. No investment decision relating
to securities of or relating to UBS Group
AG, UBS AG or their affiliates should be made on
the basis of this report. Refer to UBS’s most
recent annual report on
Form 20-
F,
quarterly reports and
other information furnished
to or filed
with the US
Securities and Exchange
Commission (the SEC)
on Form 6-K,
available at
ubs.com/investors
, for additional information.
Rounding |
Numbers presented throughout this report may not add up precisely to the totals provided in the tables and
text. Percentages and percent changes
disclosed in text and
tables are calculated
on the basis of
unrounded figures. Absolute
changes between reporting
periods disclosed in the
text, which can be
derived from numbers presented in related tables, are calculated on a rounded basis.
Tables
|
Within tables, blank fields generally indicate non-applicability
or that presentation of any content
would not be meaningful, or that
information is not
available as of the relevant date or for the relevant period.
Zero values generally indicate that the respective figure is zero
on an actual or rounded basis. Values
that are zero on a rounded basis can be either negative or positive on an actual basis.
Websites |
In this report, any
website addresses are provided
solely for information
and are not intended
to be active
links. UBS does
not incorporate the
contents
of any such websites into this report.
edgar10book05standalop54i0
UBS AG
P.O. Box, CH-8098 Zurich
P.O. Box, CH-4002 Basel
ubs.com
Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in each of the following registration statements:
(1)
on Form F-3 (Registration Numbers 333-283672 and 333-293403), and each related prospectus currently
outstanding under such registration statements,
(2)
the base prospectus of Corporate Asset Backed Corporation (CABCO) dated 23 June 2004 (Registration
Number 333-111572),
(3)
the Form 8-K of CABCO dated 23 June 2004 (SEC File Number 001-13444), and
(4)
the Prospectus Supplements relating to the CABCO Series 2004-101 Trust dated 10 May 2004 (Registration
Number 033-91744) and 17 May 2004 (Registration Number 033-91744-05),
of our report dated 6 March 2026, with respect to the standalone financial statements of UBS AG for the year ended
31 December 2025 included in this Report of Foreign Private Issuer (Form 6-K) dated 9 March 2026, filed with the
Securities and Exchange Commission.
/s/ Ernst & Young Ltd
Basel, Switzerland
9 March 2026
This Form 6-K is hereby incorporated by reference into (1) the registration statements on Form F-3 (Registration
Numbers 333-283672 and 333-293403), and into each prospectus outstanding under the foregoing registration
statement, (2) any outstanding offering circular or similar document issued or authorized by UBS AG that
incorporates by reference any Forms 6-K of UBS AG that are incorporated into its registration statements filed with
the SEC, and (3) the base prospectus of Corporate Asset Backed Corporation (“CABCO”) dated June 23, 2004
(Registration Number 333-111572),
the Form 8-K of CABCO filed and dated June 23, 2004 (SEC File Number
001-13444), and the Prospectus Supplements relating to the CABCO Series 2004-101 Trust
dated May 10, 2004
and May 17, 2004 (Registration Number 033-91744 and 033-91744-05).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
UBS AG
By: _/s/ Steffen Henrich__________
Name: Steffen Henrich
Title: Controller
By: _/s/ David Kelly _____________
Name:
David Kelly
Title:
Managing Director
Date:
March 9, 2026