Business Context and Reporting Period
This Form 6-K, filed on August 5, 2025, provides supplementary information for UBS Group AG and UBS AG regarding their significant regulated subsidiaries and sub-groups for the second quarter ended June 30, 2025. The report covers consolidated and standalone financial and regulatory data for UBS AG, UBS Switzerland AG, UBS Europe SE, UBS Americas Holding LLC, and Credit Suisse International.
Key Financial Metrics
Consolidated UBS AG (USD Millions)
- Total Operating Income: $11,483 (Q2 2025) vs. $12,040 (Q1 2025)
- Operating Profit Before Tax: $862 (Q2 2025) vs. $1,339 (Q1 2025)
- Net Profit: $1,198 (Q2 2025) vs. $1,035 (Q1 2025)
- Total Assets: $1,671,814 (Q2 2025) vs. $1,547,489 (Q1 2025)
- Total Equity: $94,854 (Q2 2025) vs. $97,123 (Q1 2025)
- Common Equity Tier 1 (CET1) Capital: $69,829
- CET1 Capital Ratio: 14.0% (Q2 2025) vs. 14.7% (Q1 2025)
- Liquidity Coverage Ratio (LCR): 179.4% (Q2 2025) vs. 180.3% (Q1 2025)
- Net Stable Funding Ratio (NSFR): 120.9% (Q2 2025) vs. 122.8% (Q1 2025)
UBS Switzerland AG (CHF Millions)
- Total Operating Income: CHF 3,956 (Q2 2025) vs. CHF 2,756 (Q1 2025)
- Net Profit: CHF 409 (Q2 2025) vs. CHF 441 (Q1 2025)
- CET1 Capital Ratio: 14.2% (Q2 2025) vs. 13.8% (Q1 2025)
- LCR: 235.5% (Q2 2025) vs. 229.2% (Q1 2025)
- NSFR: 96.7% (Q2 2025) vs. 98.1% (Q1 2025)
UBS Americas Holding LLC (USD Millions)
- Total Operating Income: $4,159 (Q2 2025) vs. $4,567 (Q1 2025)
- Net Profit: $547 (Q2 2025) vs. $331 (Q1 2025)
- CET1 Capital Ratio: 20.9% (Q2 2025) vs. 20.5% (Q1 2025)
- LCR: 127.9% (Q2 2025) vs. 132.9% (Q1 2025)
- NSFR: 132.8% (Q2 2025) vs. 134.0% (Q1 2025)
Credit Suisse International (USD Millions)
- Total Operating Income: $56 (Q2 2025) vs. $44 (Q1 2025)
- Net Loss: $(55) (Q2 2025) vs. $(92) (Q1 2025)
- CET1 Capital Ratio: 95.6% (Q2 2025) vs. 73.0% (Q1 2025)
- LCR: 361.4% (Q2 2025) vs. 361.8% (Q1 2025)
Material Changes and Unusual Items
- Structural Transfer: Effective January 1, 2025, beneficial ownership of Wealth Management International and Global Financial Intermediaries businesses was transferred from UBS Switzerland AG to UBS AG via a dividend in kind valued at USD 126 million (CHF 100 million). UBS Switzerland AG continues to manage these businesses under contract until the legal transfer completes in 2028.
- Profit Recognition: UBS AG recognized a share of net profits of USD 368 million (CHF 292 million) for the first half of 2025 related to the transferred businesses, recorded as fee income for UBS AG and fee expense for UBS Switzerland AG.
- Regulatory Capital Requirements: In August 2024, the Federal Reserve Board assigned UBS Americas Holding LLC a stress capital buffer of 9.3% (increased from 9.1%), resulting in a total CET1 requirement of 13.8%.
- UBS AG Capital Phase-in: As of June 30, 2025, UBS AG's standalone phase-in CET1 ratio was 14.2%. Fully applied risk weights (increasing to 250% for Swiss and 400% for foreign participations by 2028) would result in a fully applied CET1 ratio of 13.2%.
Guidance, Outlook, and Risks
- Regulatory Compliance: All reported entities maintained liquidity coverage ratios and net stable funding ratios 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 in the 2024 Dodd-Frank Act Stress Test (DFAST).
- Future Reporting: Additional details on capital components and ratios will be available in the Pillar 3 Report on August 28, 2025.
- Resolution Risks: The filing notes that under the Swiss Banking Act, FINMA has the authority to modify, extinguish, or convert liabilities to common equity in the event of resolution or insolvency. A joint and several liability of CHF 2.6 billion exists between UBS AG and UBS Switzerland AG.
Key Facts for Investor Verification
- Verify the impact of the ongoing legal transfer of Wealth Management and Global Financial Intermediaries businesses on future earnings attribution between UBS AG and UBS Switzerland AG.
- Confirm the trajectory of UBS AG's standalone CET1 ratio as risk weights for participations phase in fully by January 1, 2028.
- Monitor the Net Stable Funding Ratio (NSFR) for UBS Switzerland AG, which stood at 96.7%, noting the requirement to maintain at least 80% standalone or 100% with excess funding from UBS AG.
- Review the upcoming Pillar 3 Report (August 28, 2025) for detailed breakdowns of risk-weighted assets and capital buffers.
- Assess the joint and several liability exposure of CHF 2.6 billion between UBS AG and UBS Switzerland AG in the context of potential resolution scenarios.