UBS

UBS Switzerland AG Standalone Financial Summary

Business Context and Reporting Period

This Form 6-K filing presents the standalone interim financial information for UBS Switzerland AG for the six months ended June 30, 2025. The entity operates under Swiss GAAP and serves as a significant regulated subsidiary within the UBS Group. The reporting period reflects the post-merger environment following the integration of Credit Suisse (Schweiz) AG, which occurred on July 1, 2024.

Key Financial Metrics

Note: Cash flow statement data is not provided in this standalone filing.

Material Changes vs. Prior Period

• Revenue Growth: Total operating income increased by CHF 1,300 million (27%) compared to the prior year, driven primarily by higher net interest income (up CHF 470 million) and net fee and commission income (up CHF 301 million).
• Expense Increase: Total operating expenses rose to CHF 4,539 million from CHF 3,327 million. Personnel expenses increased significantly to CHF 1,624 million (from CHF 1,067 million), and general/administrative expenses rose to CHF 2,713 million.
• Profitability: Despite higher expenses, operating profit grew to CHF 1,595 million, and net profit increased to CHF 1,365 million.
• Balance Sheet: Total assets decreased slightly to CHF 508.9 billion from CHF 516.2 billion at year-end 2024. Notable changes include a reduction in receivables from securities financing transactions (CHF 2.4bn vs CHF 11.2bn) and an increase in financial investments (CHF 28.1bn vs CHF 22.5bn).
• Equity Reduction: Total equity declined to CHF 22.7 billion from CHF 25.6 billion, primarily due to dividends and other distributions totaling CHF 4.3 billion, which included a CHF 100 million dividend in kind.

Outlook, Risks, and Unusual Items

• Structural Reorganization: In Q2 2025, beneficial ownership of the Wealth Management International and Global Financial Intermediaries businesses booked in Switzerland was transferred from UBS Switzerland AG to UBS AG via a dividend in kind (CHF 100 million). UBS Switzerland AG will continue to manage these businesses contractually until the legal transfer is expected to complete in 2028.
• Intercompany Profit Recognition: UBS AG's share of net profits (CHF 292 million) from the transferred businesses is reflected in "Fee and commission expense" for the period.
• Joint and Several Liability: As of June 30, 2025, UBS Switzerland AG holds joint and several liability for UBS AG contractual obligations of CHF 2.1 billion (down from CHF 2.4 billion) and CHF 530 million under the international covered bond program. Management assesses the probability of cash outflows for these matters as remote.
• Cautionary Statement: The filing explicitly states that the information is unaudited and provided solely for informational purposes, not as a solicitation to buy or sell securities.

Investor Verification Checklist

• Dividend in Kind Impact: Verify the accounting treatment and future tax implications of the CHF 100 million dividend in kind related to the transfer of Wealth Management and GFI businesses.
• Expense Run Rate: Assess the sustainability of the increased personnel and administrative expenses (up ~39% YoY) in the context of the structural transfer of businesses.
• Asset Quality: Review the significant drop in receivables from securities financing transactions (CHF 8.9 billion decrease) to understand market positioning changes.
• Contingent Liabilities: Monitor the joint and several liability exposure to UBS AG, specifically the CHF 2.1 billion obligation, despite the "remote" probability assessment.
• Legal Transfer Timeline: Track the progress of the legal transfer of the heritage businesses, currently expected to conclude in 2028.