Ubs Group Ag · SIX:UBSG
Ubs — Corporate Update (January 2026)
71 slides from Ubs's corporate update, Jan 12, 2026
Slide 1: UBS's response to 26 September 2025 consultation on capitalization of foreign participations
3% UBS UBS's response to 26 September 2025 consultation on the capitalization of foreign participations by parent companies of systemically important banks This should be read in conjunction with our formal consultation response posted on our website at www.ubs.cony presentations 12 January 2026
Slide 2: Important information
Important information Forward-looking statements: This presentation contains statements that constitute “forward-looking statements", including but not limited to management's outlook for UBS's financial performance, statements relating to the anticipated effect of transactions and strategic initiat
Slide 3: Key messages in our consultation response
Key messages in our consultation response UBS supports measures to further strengthen Swiss financial stability, but opposes the proposed capital measures, both at ordinance and legislative level, because they are not proportionate, targeted or internationally aligned Switzerland already has one of
Slide 4: Proposed capital measures would create by far the strictest regime among peers
Proposed capital measures would create by far the strictest regime among peers Foreign participations Highest RWA calculation/ gequrements implementation of Deferred tax assets Basel Ill final due to temporary differences international SS minimum standards Leverage ratio requirements Capitalized Sof
Slide 5: Despite its low-risk business model, UBS already has the highest capital requirements
Despite its low-risk business model, UBS already has the highest capital requirements; proposed measures would make it a pronounced outlier UBS minimum CET1 ratio requirements‘ Peers minimum CET1 ratio requirements* cA proposals | _ ~5% would | a" merely} vy Peer \ ~14% | ceatethe | 135% \, average
Slide 6: Current regulation for foreign subsidiaries is balanced and sufficient
We consider the current regulation for the treatment of foreign subsidiaries to be balanced and sufficient; any increase makes us a further outlier internationally Capitalization of foreign subsidiaries Federal Council proposal & Full CET1 deduction ® Tier 1 deduction? * 80% Tier 1 deduction? Conser
Slide 7: Proposals do not adequately address lessons learned from the Credit Suisse crisis
Proposals do not adequately address lessons learned from the Credit Suisse crisis Credit Suisse’s key issue was an unsustainable business model let profi 34 27 2.0 (1.0) (1.7) (2.7) FY16 FY17 FY18 FY19 FY20 FY21 UBS (7.3) FY22 Aggressive valuations and regulatory concessions allowed it to avoid deci
Slide 8: Proposals insufficiently account for loss-absorbing capacity outside of CET1
Proposals insufficiently account for loss-absorbing capacity outside of CET1 TLAC of ~200bn Going and gone concern capital overview Resolution scenario - — FINMA determines “ Point of non-viability” and orders a ~200 Going Concent Gone Concern bail-in of TLAC debt to recapitalize the Group Business
Slide 9: Extreme capital requirements would lead to substantial costs for Switzerland
Extreme capital requirements would lead to substantial costs for Switzerland The financial sector is a cornerstone of Switzerland's economy! — Sector employs around 5.5% of all employees or ~250,000 people while generating ~9% of Switzerland's gross value added and ~9% of total tax revenue — Indirec
Slide 10: Appendix
Appendix
Slide 11: Summary of CET1 impacts from foreign subsidiary and ordinance measures
Summary of CET1 impacts from foreign subsidiary and ordinance measures Estimated additional CET1 required UBS Group AG, UBS AG, consolidated standalone In scope of this _ Foreign participations treatment consultation Capitalized software 4.5bn 1.5bn Deferred tax assets (TD DTAs) A.6bn 0.3bn Prudent
Slide 12: Alvarez & Marsal highlight Switzerland as a clear international outlier
Alvarez & Marsal highlight Switzerland as a clear international outlier on the trajectory of bank regulation Impact on CET1 requirement from regulatory initiatives worked on by global bank regulators impact on CET1 requirements for GSIBs (168bps) (102bps) +104bps +769bps impact on aggregate CET! req
Slide 13: More equity capital does not lower cost of capital
More equity capital does not lower cost of capital. Over the past twelve years the market has consistently estimated UBS’s cost of equity at ~10% UBS's cost of equity! and CET1 leverage ratio? development (2012-2024) 10.7% 10.7% 10.5% 5 9 4 10.4% ¥ fo % 10.3% a UBS's cost 10.1% 102% 96% 9.9% g7% 9.9
Slide 14: UBS's diversified business mix is a source of strength and resilience
UBS's attractive and diversified business mix is a source of strength and resilience Revenue mix by business vs North American and European GSIBs Revenue mix by region UBS! North American & European GSIB average? UBS? APAC Americas ~60% WM-+ AM ~20% WM + AM veal 7 46bn Switzerland HB Wealth and Asse
Slide 15: Statement by UBS on Capital Adequacy Ordinance amendment
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 1 of 33 Based on a machine translation of the German original Amendment to the Banking Act and Capital Adequacy Ordinance (capital adequacy requirements for foreign subsidiaries of the Parent Banks of systemically
Slide 16: Table of contents
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 2 of 33 Table of contents Summary ............................................................................................................................................... 3 1. Introductory remarks ..........
Slide 17: Summary
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 3 of 33 Summary UBS supports the Federal Council's objective of drawing lessons from the Credit Suisse crisis and strengthening the regulatory framework with targeted, proportionate, and internationally aligned mea
Slide 18: Foreign subsidiaries are an integral part of the parent bank
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 4 of 33 Foreign subsidiaries are an integral part of the consolidated parent bank's business model . Completely insulating the parent bank from risks arising from foreign business activities that are booked in subs
Slide 19: SNB confirms banks' refinancing costs have risen
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 5 of 33 The SNB confirms that banks' refinancing costs in the financial market have risen and are having an impact on lending. It mentions that the costs on the Swiss financing market may reflect an adjustment in U
Slide 20: 1. Introductory remarks
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 6 of 33 1 2 1. Introductory remarks On April 6, 2024, the Federal Council presented measures to learn from the Credit Suisse crisis. On June 6, 2025, it presented key parameters for changes to laws and ordinances a
Slide 21: 2. Assessment of the package of measures
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 7 of 33 2. Assessment of the package of measures • UBS is committed to strong and consistently implemented regulation based on a balanced, internationally aligned package of measures. • UBS rejects the proposed ext
Slide 22: Slide 22
Slide 23: Slide 23
Slide 24: Slide 24
Slide 25: Slide 25
Slide 26: Slide 26
Slide 27: Slide 27
Slide 28: Slide 28
Slide 29: Slide 29
Slide 30: Slide 30
Slide 31: Slide 31
Slide 32: Slide 32
Slide 33: BSS study published by the Federal Council
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 12 of 33 12 13 14 15 On September 26, 2025, the Federal Council published a study by the consulting firm BSS , which was intended to contribute to the regulatory impact assessment. The study deals with the Federal
Slide 34: 3. Assessment of capital requirements for foreign subsidiaries
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 13 of 33 16 17 18 3. Assessment of capital requirements for foreign subsidiaries • UBS supports a strong and credible capital regime for Switzerland. The proposal for a full deduction from Common Equity Tier 1 (CET
Slide 35: Slide 35
Slide 36: Slide 36
Slide 37: Slide 37
Slide 38: Slide 38
Slide 39: Slide 39
Slide 40: Slide 40
Slide 41: Effect of aggressive valuation and regulatory concessions
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 14 of 33 Figure 5: Effect of aggressive valuation and regulatory concessions Figure 6: Credit Suisse AG's foreign subsidiaries (CHF billion) Credit Suisse AG Aggressive Valuation (DCF) Phase-in of requirements Regu
Slide 42: 3.2. Assessment of the Federal Council's proposal and rejected alternatives
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 15 of 33 3.2. Assessment of the Federal Council's proposal and the rejected alternatives 3.2.1. Assessment of the full deduction of foreign subsidiaries from Common Equity Tier 1 (CET1) The Federal Council proposes
Slide 43: Slide 43
Slide 44: Slide 44
Slide 45: Slide 45
Slide 46: Slide 46
Slide 47: Slide 47
Slide 48: Alternative capital approaches for business units and subsidiary valuation
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 17 of 33 ● The use of different capital requirements for wealth management and investment banking units is intended to reflect the different risks associated with these business activities. However, this alternativ
Slide 49: Slide 49
Slide 50: Table 1: Effectiveness of alternatives
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 18 of 33 Table 1: Effectiveness of alternatives (1Q25 20 ) 21 22 23 Additional capital requirement (USD billion) - - 17% 67% Tier 1 deduction + Symmetric deduction - - We would also like to draw attention to the ma
Slide 51: 4. Recovery and resolution is key for financial stability
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 19 of 33 24 25 4. Recovery and resolution is key for financial stability • The TBTF regime includes instruments across the entire crisis continuum to provide optimal protection for taxpayers. The capital regime mus
Slide 52: Figure 8: Model for recovery and resolution
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 20 of 33 Figure 8: Model for recovery and resolution 26 CET1 75bn AT1 20bn Bail-in Bonds 104bn ~200 bn 3Q25 Going and gone concern capital overviewUBS –Total Loss Absorbing Capacity in USD Business as usual Resolut
Slide 53: Slide 53
Slide 54: Slide 54
Slide 55: Slide 55
Slide 56: Slide 56
Slide 57: Figure 9: Restructuring is central to resolution
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 21 of 33 27 Figure 9: Restructuring is central to resolution Bank prior to crisis Restructured bank Assets Assets Resolution Stabilization through conversion of ~ 100bn TLAC debt and ~ 20bn AT1 into equity and rest
Slide 58: Alternative resolution strategies
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 22 of 33 Under the guidance of FINMA, UBS is developing alternative resolution strategies that reflect the lessons learned from the Credit Suisse crisis. In contrast to the preferred resolution strategy, the aim is
Slide 59: 5. Economic impact of the proposal
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 23 of 33 5. Economic impact of the proposal ● UBS's strategy is based on two pillars: the Swiss domestic market and the international wealth management business with private and institutional clients, in which Swit
Slide 60: Slide 60
Slide 61: Figure 10: Development of credit volume and funding in capital market
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 24 of 33 Figure 10: Development of credit volume and increasing funding in the capital market 28 In interbank business , most of the 230 domestic Swiss banks use UBS to access foreign markets, as they do not have t
Slide 62: Competition Commission sees effective competition in Swiss banking
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 25 of 33 29 30 Even following the acquisition of Credit Suisse by UBS, the Competition Commission (WEKO) continues to see effective competition . This is also reflected in the low net interest margins of Swiss bank
Slide 63: Competitive environment in Switzerland and foreign bank branches
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 26 of 33 With regard to the competitive environment in Switzerland, EU banks in particular can offer favorable loans through their branches in Switzerland , e.g., in the form of guarantees for traditional export fi
Slide 64: Slide 64
Slide 65: Slide 65
Slide 66: Appendix 1: Capital adequacy regulations in peer jurisdictions
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 28 of 33 32 33 34 35 36 37 38 39 Appendices Appendix 1: Capital adequacy regulations in peer jurisdictions In an international comparison, the explanatory report concludes that there is no ‘Swiss finish’ within the
Slide 67: Barclays waivers and EU/UK treatment of subsidiaries
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 29 of 33 40 41 42 For Barclays Bank plc, the parent bank, the following waivers can be accessed, for example : ● Waiver of the leverage ratio for the individual situation of Barclays Bank plc. Any deduction of shar
Slide 68: Appendix 2: Consultation responses and WAK-S/N statement
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 30 of 33 43 Appendix 2: Consultation responses and WAK-S/N statement All business associations, the financial sector, the cantons with strong financial centers, and the business- orientated parties reject the Feder
Slide 69: Effects on attractiveness of Switzerland as business location
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 31 of 33 ● Negative effects on the attractiveness of Switzerland as a business location are highlighted by 66% of respondents, or 45 comments. A majority of respondents fear that the measures proposed will weaken t
Slide 70: Appendix 3: Total cost of capital
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 32 of 33 44 45 46 Appendix 3: Total cost of capital The TBTF proposals mean that UBS must hold more CET1 for its existing business. This additional CET1 would replace a certain amount of debt financing, i.e., the v
Slide 71: List of figures and tables
Consultation on amendments to the Banking Act and the Capital Adequacy Ordinance Page 33 of 33 List of figures and tables Figures Figure 1: Proposed TBTF regime exceeds the strictest international regulations ....................................... 8 Figure 2: Comparison of capital requirements for