UBS

Business Context and Reporting Period

This Form 6-K filing, dated March 9, 2026, contains the 31 December 2025 Pillar 3 Report for UBS Group AG and its significant regulated subsidiaries. The report details regulatory capital, risk-weighted assets (RWA), leverage, liquidity, and funding metrics in accordance with the Swiss Financial Market Supervisory Authority (FINMA) and the Basel III framework. The reporting period covers the fourth quarter of 2025, with comparative data provided for prior quarters and the full year 2024.

Key Financial Metrics (as of 31 December 2025)

Material Changes vs. Prior Comparable Period

• Capital Reductions: CET1 capital declined primarily due to the recognition of a new $3.0 billion capital reserve for expected 2026 share repurchases, dividend accruals of $1.1 billion, and a $0.4 billion decrease in Additional Tier 1 (AT1) capital following the call of an instrument. Operating profit before tax of $1.7 billion partially offset these reductions.
• RWA Decrease: Total RWA fell by $11.5 billion, driven by decreases in market risk ($4.5 billion), counterparty credit risk ($2.5 billion), credit valuation adjustment ($2.3 billion), and operational risk ($1.0 billion).
• Liquidity Metrics: The NSFR decreased to 116.1% due to a $16.7 billion drop in available stable funding (driven by debt issuances and regulatory capital changes) and an $8.9 billion increase in required stable funding (driven by higher lending assets). The LCR remained stable at 182.6% despite a $15.0 billion decrease in high-quality liquid assets (HQLA), as net cash outflows also decreased.
• Regulatory Implementation: The final Basel III standards were fully implemented in Switzerland as of 1 January 2025, resulting in a net $8.6 billion reduction in RWA for the Group. The output floor is currently not binding.

Guidance, Outlook, and Risks

• Capital Returns: The Board plans to propose a 2025 dividend of $1.10 per share. UBS intends to repurchase $3 billion of shares in 2026, with potential for additional repurchases subject to regulatory clarity and financial performance. The company aims for a mid-teens percent increase in dividend per share in 2026.
• Regulatory Risks (Switzerland): The Swiss Federal Council has proposed measures that could require UBS AG to hold an additional $22 billion in CET1 capital. This includes a full deduction of investments in foreign subsidiaries (estimated at $20 billion) and deductions for deferred tax assets and capitalized software. If adopted, total incremental capital requirements could reach $37 billion when combined with existing Credit Suisse integration add-ons.
• Operational Risk: Operational risk RWA remains elevated at $135.4 billion due to the Internal Loss Multiplier (ILM) of 1.45 applied under Swiss rules, which is higher than the expected 1.0 multiplier in other jurisdictions (UK, EU, US).
• Integration: Continued integration of Credit Suisse assets is ongoing, with accelerated capital repatriation from subsidiaries contributing to improved capital ratios at the UBS AG level.

Key Facts for Investor Verification

• Capital Reserve for Buybacks: Verify the impact of the $3.0 billion capital reserve recognized for 2026 share repurchases on the CET1 capital balance.
• Swiss Regulatory Proposal Impact: Assess the potential $22 billion incremental CET1 capital requirement proposed by the Swiss Federal Council and its phased implementation timeline (starting 2028).
• Operational Risk ILM: Confirm the application of the 1.45 Internal Loss Multiplier in Switzerland versus the 1.0 multiplier expected in other major jurisdictions, which significantly impacts operational risk RWA.
• TLAC Composition: Review the $12.0 billion decrease in TLAC, driven by the repurchase and redemption of senior unsecured debt instruments, and ensure compliance with minimum TLAC requirements (37.96% of RWA).
• Dividend and Buyback Execution: Monitor the approval of the $1.10 dividend at the April 2026 Annual General Meeting and the execution of the $3 billion 2026 share repurchase program.