Business Context and Reporting Period
This Form 6-K filing by UBS Group AG and UBS AG, dated July 21, 2020, reports on consolidated capital instruments and Total Loss-Absorbing Capacity (TLAC)-eligible senior unsecured debt as of June 30, 2020. The document details the treatment of these instruments under the Swiss Systemically Relevant Bank (SRB) framework, distinguishing between "going concern" and "gone concern" requirements effective from January 1, 2020.
Key Financial Metrics
The filing provides a detailed breakdown of regulatory capital and eligible debt instruments in USD millions as of June 30, 2020. It does not contain operational financial metrics such as revenue, profit, cash flow, or margins.
| Category | Amount (USD Million) |
|---|---|
| Total Additional Tier 1 Capital | 15,390 |
| - High-trigger loss-absorbing AT1 | 12,899 |
| - Low-trigger loss-absorbing AT1 | 2,491 |
| Total Tier 2 Capital | 7,598 |
| - Low-trigger loss-absorbing Tier 2 | 7,063 |
| - Non-Basel III-compliant Tier 2 | 534 |
| Total TLAC-eligible Senior Unsecured Debt | 32,423 |
Material Changes
The filing text does not provide comparative data for the prior period (e.g., Q1 2020 or Q2 2019) to calculate material changes in outstanding amounts or recognized regulatory capital. The document references new capital requirements effective January 1, 2020, which are detailed in the Q1 2020 report, but does not quantify the specific impact of this transition within this text.
Guidance, Outlook, and Risks
This document contains no management commentary, forward-looking guidance, or outlook regarding future financial performance. It serves strictly as a disclosure of capital structure and regulatory compliance.
- Regulatory Framework: Instruments are categorized based on eligibility for Swiss SRB going concern and gone concern requirements.
- Eligibility Criteria: Instruments available for gone concern requirements remain eligible until one year before maturity without a 50% haircut in the last year of eligibility.
- Valuation Adjustments: Eligible amounts for TLAC-eligible debt are adjusted for own credit-related gains/losses.
- Deferred Compensation: Certain Additional Tier 1 capital instruments relate to deferred contingent capital plan (DCCP) awards.
Investor Verification Checklist
- Verify the full list of outstanding capital instruments and their specific maturity and call dates in the detailed tables.
- Review the Q1 2020 report and Annual Report 2019 for context on the new capital requirements effective January 1, 2020.
- Confirm the distinction between "high-trigger" and "low-trigger" loss-absorbing AT1 capital instruments and their respective eligibility timelines.
- Check the "Bondholder information" section on the UBS investor website for key features and terms of the listed instruments.
- Note that TLAC-eligible debt figures include applicable accrual yield (amortized face amount).