UBS Group AG Form 6-K Summary: Q1 2026 Pillar 3 Report
Business Context and Reporting Period
This Form 6-K, filed on April 29, 2026, discloses the Pillar 3 regulatory capital, risk, and liquidity metrics for UBS Group AG and its significant regulated subsidiaries for the period ended March 31, 2026. The report covers the UBS Group consolidated level, UBS AG (consolidated and standalone), UBS Switzerland AG (standalone), UBS Europe SE (consolidated), and UBS Americas Holding LLC (consolidated). The disclosures are prepared in accordance with the Swiss FINMA Ordinance on Disclosure Obligations (DisO-FINMA) and Basel III standards.
Key Financial Metrics (Group Consolidated)
| Metric | Value (USD) | Ratio / % |
|---|---|---|
| Common Equity Tier 1 (CET1) Capital | 73.3 billion | 14.65% (CET1 Ratio) |
| Tier 1 Capital | 97.0 billion | 19.38% (Tier 1 Ratio) |
| Total Risk-Weighted Assets (RWA) | 500.4 billion | - |
| Leverage Ratio Denominator (LRD) | 1,653.5 billion | 5.86% (Leverage Ratio) |
| Total Loss-Absorbing Capacity (TLAC) | 197.6 billion | 39.48% (of RWA) |
| Liquidity Coverage Ratio (LCR) | 334.0 billion (HQLA) | 177.8% (Average Q1) |
| Net Stable Funding Ratio (NSFR) | 896.6 billion (ASF) | 116.9% |
Material Changes vs. Prior Period
- Capital Growth: CET1 capital increased by USD 2.1 billion to USD 73.3 billion, driven by operating profit before tax of USD 3.8 billion. Tier 1 capital rose by USD 5.8 billion, supported by a USD 3.7 billion issuance of new Additional Tier 1 (AT1) instruments.
- Risk-Weighted Assets: RWA increased by USD 7.0 billion to USD 500.4 billion. This was driven by asset size movements (USD 7.8 billion) and model updates (USD 1.0 billion), partially offset by currency effects (USD 1.9 billion decrease).
- Liquidity: The average LCR decreased 4.8 percentage points to 177.8% due to higher net cash outflows from deposits (USD 187.9 billion), though High-Quality Liquid Assets (HQLA) increased by USD 2.4 billion. The NSFR increased 0.9 percentage points to 116.9%.
- Shareholder Returns: A dividend of USD 1.10 per share was approved and paid in April 2026. The Group repurchased USD 0.9 billion of shares in Q1 2026, with a target of USD 3 billion by July 2026.
Guidance, Outlook, and Regulatory Developments
- Swiss Regulatory Changes: New amendments to the Capital Adequacy Ordinance (CAO) are expected to impact UBS AG standalone. Proposed full deduction of investments in foreign subsidiaries could require an additional USD 20 billion in CET1 capital at the standalone level. Combined with other ordinance changes, the total incremental CET1 requirement for UBS AG standalone is estimated at USD 22 billion.
- Basel III Implementation: The output floor for RWA increased to 65% as of January 1, 2026. As of March 31, 2026, the floor is not binding for the Group. The US Federal Reserve issued proposals in March 2026 regarding the Expanded Risk-Based Approach (ERBA) and revised standardized approaches, with comments due by June 18, 2026.
- Liquidity Facility: The Swiss National Bank introduced the Extended Liquidity Facility (ELF) in February 2026 to streamline liquidity access, expected to become operational in early 2027.
- Capital Targets: Management aims to maintain a CET1 capital ratio of around 14% at year-end 2026, subject to financial performance and regulatory visibility.
Investor Verification Checklist
- Regulatory Capital Impact: Verify the final outcome of the Swiss Parliament's deliberation on the deduction of foreign subsidiary investments, which could necessitate a USD 20 billion capital raise at the UBS AG standalone level.
- US Regulatory Proposals: Monitor the finalization of US Basel III proposals (ERBA and standardized approach) and their potential impact on UBS Americas Holding LLC capital requirements.
- Liquidity Trends: Track the trend in net cash outflows from deposits, which drove the Q1 decrease in the LCR, to ensure sustained compliance with prudential requirements.
- Share Repurchase Execution: Confirm the execution of the remaining share repurchase program (targeting USD 3 billion by July 2026) and its impact on the CET1 ratio.
- Output Floor Status: Monitor the gap between actual RWA and the standardized approach RWA as the output floor phases in to 72.5% by 2028.