UBS Group (UBSG) Corporate presentation summary

Regulatory context and proposed capital measures

• Proposed Swiss capital measures would impose at least 50% higher requirements than international peers, making the regime the strictest among global banks.

• Switzerland already has one of the most stringent regulatory capital frameworks, and further increases would undermine competitiveness and the Swiss economy.

• Current regulations for foreign subsidiaries are considered balanced and sufficient, with further increases making the bank an international outlier.

• The proposals do not adequately address vulnerabilities exposed by the Credit Suisse crisis and do not reflect lessons learned.

• Loss-absorbing capacity outside of CET1, such as TLAC and AT1 instruments, is not sufficiently considered in the new proposals.

Impact on capital requirements and business model

• Estimated additional CET1 required could reach $26 billion, with $23.2 billion driven by foreign subsidiary treatment alone.

• Full deduction of foreign participations and other ordinance measures would significantly reduce regulatory capital value.

• The bank already has the highest capital requirements among peers despite a low-risk, globally integrated business model.

• More equity capital has not reduced the cost of capital over the past decade; market cost of equity remains around 10%.

• Alvarez & Marsal highlight Switzerland as an outlier, with capital requirements set to rise while other jurisdictions are easing.

Economic and sectoral implications

• The financial sector employs 5.5% of Swiss workers, generates 9% of gross value added, and is a major tax contributor.

• Extreme capital requirements would increase costs for Swiss clients, impact GDP growth, and reduce access to international capital markets.

• The bank is a key pillar of the Swiss financial sector, supporting employment, tax revenue, and credit supply.