Switzerland $128 Billion UBS Faces $20 Billion Increase in Capital Requirement (CET1) in Switzerland Government Proposal (Capital Adequacy Ordinance) for 100% Capital Requirement at UBS Group for Foreign Subsidiaries But Will Allow UBS Deferred Tax Assets Included in Regulatory Capital & 3-Year Period for Software Write Down, UBS Group Calculates $22 Billion Increase in CET1 Capital Requirement & CET1 Capital Ratio of 18.4%, UBS Acquired Credit Suisse in 2023 March, UBS Current Market Value at $128 Billion, Share Price -14.8% YTD, +31.3% Last 12 Months & +132.4% Last 5 Years
25th April 2026 | Hong Kong
Switzerland UBS ($128 billion market value) is facing $20 billion increase in capital requirement (CET1) in Switzerland government proposal (Capital Adequacy Ordinance) for 100% capital requirement at UBS Group for foreign subsidiaries, but will allow UBS deferred tax assets to be included in regulatory capital & 3-year period for software write down. UBS group calculates $22 billion increase in CET1 capital requirement & CET1 capital ratio of 18.4%. UBS acquired Credit Suisse in 2023 March. UBS current market value at $128 billion, share price -14.8% YTD, +31.3% last 12 months & +132.4% last 5 years. In 2026 January, UBS released the consultation reply to proposed amendment of Banking Act & Capital Adequacy Ordinance: 1) Supports measures to strengthen Switzerland financial stability but opposes capital measures which will require UBS to have 50% higher capital requirements than competitors, 2) Completely insulating foreign subsidiaries from risks contradicts business model of global financial institution, 3) Proposed legislative changes do not addressed vulnerabilities exposed by Credit Suisse crisis & insufficiently account for loss-absorbing capacity outside of CET1. UBS Announcement (22/4/26): “Earlier today, the Swiss Federal Council published its final Capital Adequacy Ordinance (CAO) specifying the regulatory capital treatment of select assets for banks headquartered in Switzerland. As well as publishing the final CAO, the Federal Council also submitted to parliament its final proposal for amendments to the Banking Act that governs the capital treatment of foreign participations of systemically important banks. This proposal will now be deliberated by parliament in the normal course of business. UBS continues to strongly disagree with the proposed package, which is extreme, lacks international alignment and disregards concerns expressed by the majority of respondents to the government’s consultations. If adopted, the proposed measures would have far-reaching consequences for the Swiss economy. The materials published by the Swiss government today contain assertions that we believe to be misleading. Considering UBS has just received this information, it is in the process of thoroughly evaluating all documents and statements made during the Federal Council’s press conference. UBS will provide additional comments at the latest with its results for the first quarter of 2026, which will be published on 29 April 2026 … … Under the proposal relating to foreign participations that will now proceed through the parliamentary process, investments in foreign participations would be fully deducted from UBS AG’s standalone CET1 capital. The proposal provides that the amendments would be phased in over seven years, assuming no delays during the parliamentary deliberations, starting with a 65% deduction requirement in the first year and increasing to 100% by 5-percentage-point increments each year. The full deduction of investments in foreign subsidiaries would require UBS AG to hold additional CET1 capital of around USD 20bn. When including the USD 2bn net CET1 impact from the amendments to the CAO, the total incremental CET1 capital of around USD 22bn required at UBS AG would result in a de facto minimum CET1 capital ratio at the UBS Group AG (consolidated) level of around 18.4%. At Group level, including the derecognition of around USD 4bn of net CET1 capital from the CAO measures related to capitalized software and prudential valuation adjustments, the CET1 capital ratio would decrease the aforementioned 18.4% to around 17.6%. This would contribute to a further underrepresentation of UBS’s capital strength compared to its peers. These estimates have been calculated based on our balance sheet at 31 December 2025, assuming that all capital measures are adopted as currently proposed and using an assumed CET1 capital ratio of 12.5% for UBS AG and 14.0% for UBS Group as a starting point, as previously disclosed. The Federal Council’s stated pro-forma CET1 capital ratio for UBS of 15.5% and the accompanying peer comparison are misleading, requiring further clarification. The incremental capital of USD 22bn mentioned above would be in addition to the previously communicated incremental capital of around USD 15bn that UBS must hold as a result of the acquisition of Credit Suisse to meet existing regulations. This includes around USD 9bn to remove the regulatory concessions granted to Credit Suisse and around USD 6bn to meet the current progressive requirements due to the increased size and higher market share of the combined business. As a result, UBS would be required to hold around USD 37bn in additional CET1 capital in total, with an annual capital cost of around USD 3bn.”
“ Switzerland $128 Billion UBS Faces $20 Billion Increase in Capital Requirement (CET1) in Switzerland Government Proposal (Capital Adequacy Ordinance) for 100% Capital Requirement at UBS Group for Foreign SUBSidiaries But Will Allow UBS Deferred Tax Assets Included in Regulatory Capital & 3-Year Period for Software Write Down, UBS Group Calculates $22 Billion Increase in CET1 Capital Requirement & CET1 Capital Ratio of 18.4%, UBS Acquired Credit Suisse in 2023 March, UBS Current Market Value at $128 Billion, Share Price -14.8% YTD, +31.3% Last 12 Months & +132.4% Last 5 Years “
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Switzerland $150 Billion UBS Consultation Reply to Amendment of Banking Act & Capital Adequacy Ordinance: 1) Supports Measures to Strengthen Switzerland Financial Stability But Opposes Capital Measures Which Will Require UBS to Have 50% Higher Capital Requirements than Competitors, 2) Completely Insulating Foreign Subsidiaries from Risks Contradicts Business Model of Global Financial Institution, 3) Proposed Legislative Changes Do Not Addressed Vulnerabilities Exposed by Credit Suisse Crisis & Insufficiently Account for Loss-Absorbing Capacity Outside of CET1, UBS Acquired Credit Suisse in 2023 March, UBS Current Market Value at $150 Billion, Share Price +1.7% YTD, +29.4% Last 12 Months & +181.6% Last 5 Years
13th January – Switzerland UBS ($150 billion market value) has released the consultation reply to proposed amendment of Banking Act & Capital Adequacy Ordinance: 1) Supports measures to strengthen Switzerland financial stability but opposes capital measures which will require UBS to have 50% higher capital requirements than competitors, 2) Completely insulating foreign subsidiaries from risks contradicts business model of global financial institution, 3) Proposed legislative changes do not addressed vulnerabilities exposed by Credit Suisse crisis & insufficiently account for loss-absorbing capacity outside of CET1. UBS acquired Credit Suisse in 2023 March. UBS current market value at $150 billion, with share price +1.7% YTD, +29.4% last 12 months & +181.6% last 5 years.
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