UBS Group AG Form 6-K Summary: Pillar 3 Report (30 June 2026)
Business Context and Reporting Period
This Form 6-K, filed on August 14, 2026, contains the Pillar 3 Report for UBS Group AG and significant regulated subsidiaries for the period ended 30 June 2026. 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 Basel III standards. UBS is classified as a Systemically Relevant Bank (SRB) in Switzerland and a Global Systemically Important Bank (G-SIB).
Key Financial Metrics
| Metric | 30 June 2026 | 31 March 2026 | 31 Dec 2025 |
|---|---|---|---|
| Common Equity Tier 1 (CET1) Capital | USD 72.5bn | USD 73.3bn | USD 71.3bn |
| Tier 1 Capital | USD 96.0bn | USD 97.0bn | USD 91.2bn |
| Total Risk-Weighted Assets (RWA) | USD 503.9bn | USD 500.4bn | USD 493.4bn |
| CET1 Ratio | 14.38% | 14.65% | 14.44% |
| Tier 1 Ratio | 19.05% | 19.38% | 18.48% |
| Basel III Leverage Ratio | 5.82% | 5.86% | 5.62% |
| Liquidity Coverage Ratio (LCR) | 177.3% | 177.8% | 182.6% |
| Net Stable Funding Ratio (NSFR) | 115.1% | 116.9% | 116.1% |
| Total Loss-Absorbing Capacity (TLAC) | USD 193.6bn | USD 197.6bn | USD 187.3bn |
Material Changes vs. Prior Period
- Capital Decrease: CET1 capital decreased by USD 0.8bn to USD 72.5bn. This was primarily driven by the recognition of a new USD 3.0bn capital reserve for expected future share repurchases, dividend accruals (USD 0.9bn), and tax expenses, which offset operating profit before tax of USD 3.6bn.
- RWA Increase: Total RWA increased by USD 3.6bn to USD 503.9bn. Drivers included a USD 6.7bn increase from asset size and other movements, partially offset by currency effects (USD 1.9bn decrease) and model updates (USD 1.2bn decrease).
- Liquidity Metrics: The LCR remained stable at 177.3%, well above the FINMA requirement. The NSFR decreased 1.9 percentage points to 115.1%, driven by higher required stable funding due to increased trading and lending assets.
- Share Repurchases: UBS completed a share repurchase program in July 2026 and initiated a new program to repurchase up to USD 3bn of shares by Q2 2027. A reserve for the full amount is reflected in CET1 capital.
Guidance, Outlook, and Risks
- Capital Management: Management plans to maintain a CET1 capital ratio of around 14%. Share repurchase pace remains subject to short-term financial performance and visibility on Swiss Parliament deliberations regarding the capitalization of foreign subsidiaries.
- Regulatory Developments:
- EU FRTB: The European Commission adopted temporary adjustments to the Fundamental Review of the Trading Book (FRTB) framework to offset capital impacts, effective 1 January 2027. UBS expects limited impact.
- UK FRTB: The UK PRA launched a consultation on FRTB adjustments; implementation remains set for 1 January 2028. UBS expects no direct impact.
- Risk Profile: Market risk RWA increased by USD 7.7bn to USD 32.3bn, driven by hedging activities in Group Treasury and the Investment Bank. Credit risk RWA decreased by USD 3.8bn to USD 301.9bn.
Key Facts for Investor Verification
- Share Buyback Reserve: Verify the impact of the USD 3.0bn reserve for future share repurchases on reported CET1 capital and the execution timeline of the new USD 3bn program.
- RWA Composition: Monitor the divergence between modelled RWA and standardized approach RWA (Output Floor), which is currently not binding but set to increase to 72.5% by 2028.
- TLAC Adequacy: Confirm that TLAC remains above the 38.42% of RWA requirement despite the redemption of USD 2.9bn in TLAC-eligible senior unsecured debt.
- Subsidiary Capitalization: Review the capitalization status of UBS AG consolidated (CET1 14.32%) and UBS AG standalone (CET1 14.93%) to ensure compliance with Swiss SRB requirements.
- Regulatory Buffers: Note the G-SIB additional CET1 buffer requirement remains at 1.5% as confirmed by the FSB in November 2025.