UBS Switzerland AG has released its financial results for the second quarter of 2025. The report includes a cautionary statement regarding forward-looking statements, highlighting various risks and uncertainties that could affect the company’s performance.
The management of UBS notes that while they have set out their judgments, expectations, and objectives for future development—including climate, sustainability, and social goals—there are several factors that could cause actual outcomes to differ from these projections. Among the key risks identified are political tensions between world powers, changes in international trade policies such as tariffs and trade barriers, ongoing conflicts in the Middle East, and the continuing Russia–Ukraine war.
The acquisition of Credit Suisse Group by UBS has significantly altered its strategic direction and outlook. The integration process is expected to continue through 2026 and presents operational challenges. According to UBS, "The integration of the Credit Suisse entities into the UBS structure is expected to continue through 2026 and presents significant operational and execution risk, including the risks that UBS may be unable to achieve the cost reductions and business benefits contemplated by the transaction, that it may incur higher costs to execute the integration of Credit Suisse and that the acquired business may have greater risks or liabilities than expected." In response to these developments, Switzerland is considering major changes to its capital requirements and regulatory regime. If adopted, these measures would increase capital requirements or impose additional costs on UBS.
Other factors affecting performance include success in executing strategic plans like cost reduction initiatives; managing risk-weighted assets (RWA), leverage ratio denominator (LRD), liquidity coverage ratio; adapting to market volatility; inflation; interest rate changes; shifts in securities prices or currency exchange rates; real estate market conditions; credit spreads; availability of funding; central bank policy changes; new financial regulations in key markets such as Switzerland, US, UK, EU; implementation of resolvability requirements due to acquiring Credit Suisse Group; compliance with sanctions amid geopolitical turmoil; competitive pressures among global banks due to differing regulatory standards; litigation exposure or regulatory investigations leading potentially to fines or loss of licenses.
UBS also faces challenges related to attracting talent necessary for revenue generation and control functions. Technological adaptation—including digital services and artificial intelligence—and competition from both established financial institutions and new entrants not subject to equivalent regulation are noted as concerns. Operational failures such as fraud or cyberattacks remain persistent threats given current levels of cyberattack activity.
Changes in accounting standards or tax policies could impact recognition of gains/losses or valuation methods. There are also restrictions on payments/distributions imposed by regulators during periods of financial difficulty. Additionally, evolving environmental regulations create uncertainty about how best for UBS—and other organizations—to meet climate-related objectives.
UBS states: "UBS’s business and financial performance could be affected by other factors identified in its past and future filings and reports, including those filed with the US Securities and Exchange Commission (the SEC). More detailed information about those factors is set forth in documents furnished by UBS and filings made by UBS with the SEC, including the UBS Group AG and UBS AG Annual Reports on Form 20-F for the year ended 31 December 2024."
Numbers presented throughout this report may not add up precisely due to rounding practices. Blank fields within tables generally indicate non-applicability or unavailable information at relevant dates.
For media inquiries regarding this announcement:
Switzerland: +41-44-234 85 00
UK: +44-207-567 47 14
Americas: +1-212-882 58 58
APAC: +852-297-1 82 00