Business Context and Reporting Period
This Form 6-K, filed on May 8, 2025, provides supplementary information for UBS Group AG and UBS AG regarding their significant regulated subsidiaries and sub-groups for the first quarter of 2025 (ended March 31, 2025). The filing details financial and regulatory key figures for UBS AG (consolidated and standalone), UBS Switzerland AG, UBS Europe SE, UBS Americas Holding LLC, and Credit Suisse International.
Key Financial Metrics
Consolidated Performance (UBS AG)
- Total Operating Income: $12,040 million (Q1 2025) vs. $11,076 million (Q4 2024).
- Net Profit: $1,035 million (Q1 2025) vs. a loss of $254 million (Q4 2024).
- Total Assets: $1,547,489 million.
- Total Equity: $97,123 million.
- Common Equity Tier 1 (CET1) Capital: $70,756 million.
- CET1 Capital Ratio: 14.7%.
- Liquidity Coverage Ratio (LCR): 180.3%.
- Net Stable Funding Ratio (NSFR): 122.8%.
Regional and Subsidiary Highlights
- UBS Switzerland AG: Net profit of CHF 663 million; CET1 ratio of 12.4%; LCR of 137.1%.
- UBS Americas Holding LLC: Net profit of $331 million; CET1 ratio of 20.5%; LCR of 133.6%.
- UBS Europe SE: Net profit of EUR 30 million; CET1 ratio of 23.7%.
- Credit Suisse International: Reported a net loss of $92 million; CET1 ratio of 73.0%.
Material Changes vs. Prior Period
- Profitability Turnaround: UBS AG consolidated net profit swung from a $254 million loss in Q4 2024 to a $1,035 million profit in Q1 2025, driven by a $964 million increase in operating income and a $316 million reduction in operating expenses.
- Asset Base: Total consolidated assets decreased by approximately $20.6 billion from Q4 2024 to Q1 2025.
- Capital Ratios: The consolidated CET1 ratio decreased slightly from 14.9% to 14.7%, while the Total Loss-Absorbing Capacity ratio increased from 36.7% to 38.0%.
- Stress Capital Buffer: The Federal Reserve Board assigned UBS Americas Holding LLC a stress capital buffer of 9.3% as of October 1, 2024, up from 9.1% previously.
Guidance, Risks, and Contingencies
- Regulatory Compliance: All significant regulated subsidiaries reported LCR and NSFR figures above their respective prudential requirements communicated by FINMA, the ECB, and the Federal Reserve.
- Stress Testing: UBS Americas Holding LLC exceeded minimum capital requirements under the severely adverse scenario of the 2024 Dodd–Frank Act Stress Test (DFAST).
- Joint and Several Liability: As of March 31, 2025, there is a joint and several liability of CHF 3 billion between UBS AG and UBS Switzerland AG, covering contractual obligations and international covered bonds programs.
- Resolution Powers: The filing notes that under the Swiss Banking Act, FINMA retains the authority to modify, extinguish, or convert liabilities to common equity in the event of a resolution or insolvency.
Investor Verification Checklist
- Verify the full set of financial statements under IFRS and US GAAP, as this filing explicitly states the disclosed information does not represent a full set of statements.
- Review the UBS Group and significant regulated subsidiaries 31 March 2025 Pillar 3 Report for detailed capital and leverage ratio methodologies.
- Confirm the impact of the Credit Suisse Holdings (USA), Inc. reparenting on UBS Americas Holding LLC's 2024 comparative figures.
- Monitor the specific regulatory requirements for UBS AG standalone regarding the Net Stable Funding Ratio (NSFR) minimums of 80% and 100% as per the Liquidity Ordinance.
- Assess the implications of the joint and several liability arrangement between UBS AG and UBS Switzerland AG on cross-border risk exposure.