UBS AG Form 6-K Summary: Q3 2024 Regulatory Data
Business Context and Reporting Period
This Form 6-K, filed on November 8, 2024, provides unaudited supplementary financial and regulatory information for UBS Group AG and UBS AG. The data covers the second and third quarters of 2024, with a primary focus on the quarter ended September 30, 2024. The filing details metrics for significant regulated subsidiaries and sub-groups, including UBS AG (consolidated and standalone), UBS Switzerland AG, UBS Europe SE, UBS Americas Holding LLC, and Credit Suisse International.
Key Financial Metrics (Q3 2024)
Consolidated UBS AG (USD millions):
- Total Operating Income: $11,831 million
- Total Operating Expenses: $10,640 million
- Operating Profit Before Tax: $1,191 million
- Net Profit: $997 million
- Total Assets: $1,626,893 million
- Total Equity: $97,822 million
Capital and Liquidity (Consolidated UBS AG):
- Common Equity Tier 1 (CET1) Ratio: 16.4%
- Total Capital Ratio: 26.2%
- Liquidity Coverage Ratio (LCR): 196.3% (High-quality liquid assets: $360.6 billion)
- Net Stable Funding Ratio (NSFR): 126.8%
Key Subsidiary Highlights:
- UBS Switzerland AG: Net profit of CHF 1,012 million; CET1 ratio of 11.9%.
- UBS Americas Holding LLC: Net profit of $122 million; CET1 ratio of 27.4%.
- Credit Suisse International: Net loss of $34 million; CET1 ratio of 76.2%.
Material Changes vs. Prior Period
Profitability: Consolidated UBS AG returned to profitability in Q3 2024 with a net profit of $997 million, compared to a net loss of $224 million in Q2 2024. Operating income increased from $9,816 million in Q2 to $11,831 million in Q3.
Balance Sheet: Total assets grew from $1,564,664 million in Q2 to $1,626,893 million in Q3. Total equity increased from $94,247 million to $97,822 million.
Regulatory Capital: The consolidated CET1 ratio improved slightly from 16.3% in Q2 to 16.4% in Q3. The LCR increased from 194.1% to 196.3%.
US Stress Test: In August 2024, the Federal Reserve Board assigned UBS Americas Holding LLC a stress capital buffer (SCB) of 9.3% (up from 9.1%), resulting in a total CET1 requirement of 13.8%. The entity exceeded minimum capital requirements under the severely adverse scenario in the 2024 DFAST.
Outlook, Risks, and Contingencies
Regulatory Requirements: Supervisory authorities retain discretion to impose higher capital requirements or limit activities based on stress test results. UBS AG standalone is required to maintain a minimum NSFR of 100% when accounting for excess funding from UBS Switzerland AG.
Capital Phase-in: UBS AG's standalone CET1 capital ratio is currently 14.7% on a phase-in basis. Risk-weights for participations will increase in a phased manner until January 1, 2028, which is projected to result in a fully applied CET1 ratio of 13.3%.
Contingencies: The filing notes joint and several liabilities between UBS AG and UBS Switzerland AG totaling CHF 3 billion as of September 30, 2024, related to the establishment of UBS Switzerland AG and the merger with Credit Suisse (Schweiz) AG.
Investor Verification Checklist
- Verify the impact of the phased-in risk-weight increases on UBS AG's standalone CET1 ratio by 2028.
- Confirm the stability of the Liquidity Coverage Ratio (LCR) across all major jurisdictions, particularly UBS Switzerland AG (146.7%) and UBS Europe SE (145.2%).
- Review the 30 September 2024 Pillar 3 Report for detailed breakdowns of capital components and risk-weighted assets.
- Monitor the integration progress of Credit Suisse Holdings (USA), Inc. within UBS Americas Holding LLC, noting that Q2 figures were restated to include this entity.
- Assess the implications of the Federal Reserve's updated 9.3% stress capital buffer on future capital deployment for the US intermediate holding company.