UBS Group (UBSG) investor relations material

Regulatory and capital framework

• Ongoing parliamentary debate in Switzerland on capital proposals, with a key vote imminent; options include varying levels of CT1 and AT1 backing, but proposed changes are seen as not fully addressing lessons from the Credit Suisse crisis.

• Concerns raised about lack of international alignment and potential competitive distortion, with significant costs to shareholders and ongoing restructuring burdens.

• AT1 reform aims to align Swiss regime with EU/UK standards, clarifying instruments and maintaining a balanced but costly approach.

• Final decisions on capital rules expected by year-end, influenced by political and technical factors, including upcoming Swiss elections.

Integration and operational efficiency

• Integration of acquired operations is nearly complete, with over 90% of inherited applications decommissioned and IT infrastructure set for shutdown by year-end.

• Efficiency gains are expected to drive down the cost-income ratio to 67% and free up resources for growth investments.

• Focus on leveraging technology and AI to enhance service for high net worth clients and improve operational effectiveness.

Business performance and growth outlook

• Strong progress in wealth management and investment banking, with positive momentum despite seasonal effects and market headwinds.

• Liability management exercise retired CHF 10 billion in legacy issuance, improving future net interest income from 2027.

• U.S. wealth management shows robust growth, with lending up for nine consecutive quarters and AI tools enhancing advisor productivity.

• APAC business remains a growth engine, with ongoing investments and expansion in Greater Bay Area, Australia, Japan, and India.