Investor Relations
Media Relations
UBS Group AG and UBS AG, News Release, 22 April 2026Page 2
Estimated incremental capital from proposed changes to the regulatory treatment of foreign
participations
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 CET1capital.
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.
Estimated overall capital impact of Credit Suisse acquisition
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 requirementsdue 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.
Impact assessment for the broader Swiss economy
The Federal Council’s mandatory regulatory impact assessment for the proposed banking regulation remains
insufficient in both scope and methodology to serve as a sound basis for evaluating the potentially far-
reaching consequences for the Swiss economy as a whole.
A recent study by independent Swiss economic research institute BAK Economics used its established
macroeconomic model to quantify the significant and permanent effects of the proposed full deduction of
foreign participations from CET1 capital. According to the study,the impact on borrowing costs and credit
supply from this specific regulatory change could result in cumulative losses in Switzerland’s gross domestic
product of up to CHF 34 billion over a ten-year period, alongside lasting declines in investment, employment,
and tax revenues.