UBS Group AG Form 6-K Summary: Pillar 3 Report (Q3 2025)
Business Context and Reporting Period
This Form 6-K, filed on November 4, 2025, contains the Pillar 3 Report for UBS Group AG and significant regulated subsidiaries for the period ended September 30, 2025. The report details regulatory capital, risk-weighted assets (RWA), leverage ratios, and liquidity metrics in accordance with the Swiss Financial Market Supervisory Authority (FINMA) Ordinance on Disclosure Obligations (DisO-FINMA) and final Basel III standards, which entered into force in Switzerland on January 1, 2025.
Key Financial Metrics (UBS Group Consolidated)
| Metric | Value (USD) | Ratio / % |
|---|---|---|
| Common Equity Tier 1 (CET1) Capital | $74.7 billion | 14.79% (CET1 Ratio) |
| Tier 1 Capital | $95.0 billion | 18.81% (Tier 1 Ratio) |
| Total Capital | $95.0 billion | 18.81% (Total Capital Ratio) |
| Risk-Weighted Assets (RWA) | $504.9 billion | - |
| Leverage Ratio Denominator (LRD) | $1,640.5 billion | 5.79% (Basel III Leverage Ratio) |
| Total Loss-Absorbing Capacity (TLAC) | $199.3 billion | 39.48% (of RWA) |
| Liquidity Coverage Ratio (LCR) | - | 182.1% (Quarterly Average) |
| Net Stable Funding Ratio (NSFR) | - | 119.7% |
Material Changes vs. Prior Period (Q2 2025)
- Capital Growth: CET1 capital increased by $1.9 billion to $74.7 billion, driven by operating profit before tax of $2.8 billion and an increase in eligible deferred tax assets. This was partially offset by dividend accruals ($0.8 billion) and current tax expenses ($0.3 billion). Tier 1 capital rose by $3.2 billion to $95.0 billion, aided by a $1.3 billion increase in Additional Tier 1 (AT1) capital.
- RWA and LRD: RWA increased slightly by $0.4 billion to $504.9 billion, primarily due to higher counterparty credit risk ($3.6 billion) and credit valuation adjustment ($1.2 billion) RWA, offset by decreases in market risk RWA ($2.3 billion). The LRD decreased by $17.6 billion to $1,640.5 billion, driven by asset size movements and currency effects.
- Liquidity: The LCR remained broadly unchanged at 182.1%. Average High-Quality Liquid Assets (HQLA) decreased by $12.2 billion to $346.6 billion due to lower cash from higher lending assets, offset by lower net cash outflows. The NSFR decreased 2.8 percentage points to 119.7%.
Guidance, Outlook, and Regulatory Developments
Regulatory Capital Requirements: The Swiss Federal Council launched a public consultation in September 2025 on legislative amendments requiring the deduction of investments in foreign subsidiaries from CET1 capital for systemically important banks. If implemented as proposed, UBS AG would require an estimated additional $24 billion in CET1 capital. Combined with existing requirements related to the Credit Suisse acquisition (approx. $15 billion), UBS estimates a total additional CET1 capital requirement of around $39 billion.
Resolution and Recovery: FINMA's 2025 resolution report concluded UBS remains resolvable under its existing strategy. However, FINMA noted the Swiss emergency plan requires further development to better integrate with the global resolution plan and safeguard international financial stability. FINMA has refrained from assessing the recovery plan due to ongoing Credit Suisse integration.
US Subsidiary (UBS Americas Holding LLC): The Federal Reserve Board reduced the stress capital buffer (SCB) for UBS Americas Holding LLC to 5.2% (from 9.3%), effective October 1, 2025, resulting in a total CET1 requirement of 9.7%.
Key Facts for Investor Verification
- Capital Adequacy: Verify the impact of the proposed Swiss legislative changes on foreign subsidiary deductions, which could necessitate significant capital repatriation or issuance.
- RWA Composition: Monitor the shift in RWA drivers, specifically the increase in counterparty credit risk and CVA RWA versus the decrease in market risk RWA.
- Liquidity Position: Confirm the stability of the LCR and NSFR despite the decrease in HQLA and the reduction in the NSFR to 119.7%.
- US Regulatory Tailoring: Track the implementation of the reduced SCB for UBS Americas Holding LLC and its effect on capital planning in the US.
- Output Floor: Note that the Basel III output floor (currently 60%) is not binding for UBS Group as of September 30, 2025, but will increase to 72.5% by 2028.