11
Cautionary
Statement
Regarding
Forward-Looking
Statements
|
This
document
contains
statements
that
constitute
“forward-looking
statements”,
including but not limited to management’s outlook for
UBS’s financial performance, statements relating to the anticipated effect
of transactions and strategic
initiatives on UBS’s business and future development and goals or intentions to achieve climate, sustainability and other social objectives. While these forward-
looking
statements
represent
UBS’s
judgments, expectations
and
objectives concerning
the
matters
described, a
number
of
risks,
uncertainties and
other
important factors
could cause
actual developments
and results
to differ
materially from
UBS’s expectations.
In particular, the
global economy
may suffer
significant
adverse effects
from increasing
political tensions
between world
powers, changes
to international trade
policies, including those
related to
tariffs and
trade
barriers, and
ongoing conflicts in
the Middle East,
as well
as the
continuing Russia–Ukraine war.
UBS’s acquisition of
the Credit
Suisse Group
has materially
changed its outlook
and strategic direction
and introduced new
operational challenges. 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. Following
the failure of
Credit Suisse, Switzerland is
considering significant changes to
its capital,
resolution and
regulatory regime,
which, if
proposed and
adopted, may
significantly increase
our capital
requirements or
impose other
costs on
UBS. These
factors create greater uncertainty about forward-looking statements. Other
factors that may affect UBS’s performance and ability
to achieve its plans, outlook
and other objectives
also include, but
are not limited
to: (i) the degree
to which UBS
is successful in
the execution of
its strategic plans,
including its cost
reduction
and efficiency initiatives and
its ability to manage
its levels of risk-weighted
assets (RWA) and leverage ratio
denominator (LRD), liquidity
coverage ratio and
other
financial resources, including changes in
RWA assets and liabilities arising
from higher market volatility and
the size of the
combined Group; (ii) the degree
to
which UBS
is successful
in implementing changes
to its
businesses to meet
changing market, regulatory
and other
conditions; (iii) inflation
and interest
rate
volatility in
major markets;
(iv) developments
in the
macroeconomic climate
and in
the markets
in which
UBS operates
or to
which it
is exposed,
including
movements in securities prices
or liquidity, credit spreads, currency exchange rates, residential
and commercial real estate markets,
general economic conditions,
and changes to national trade policies on the financial position or creditworthiness of UBS’s clients
and counterparties, as well as on client sentiment and levels
of activity;
(v) changes
in the
availability of
capital and
funding, including any
adverse changes
in UBS’s
credit spreads
and credit
ratings of
UBS, as
well as
availability and
cost of
funding to
meet requirements
for debt
eligible for
total loss-absorbing
capacity (TLAC);
(vi) changes
in central
bank policies
or
the
implementation of financial legislation and
regulation in Switzerland, the US,
the UK, the EU
and other financial centers
that
have imposed, or resulted
in, or
may do so in the future, more stringent or entity-specific capital, TLAC, leverage ratio, net stable funding ratio, liquidity and funding requirements, heightened
operational resilience requirements, incremental tax requirements, additional levies, limitations on permitted activities, constraints on remuneration, constraints
on transfers
of capital
and liquidity
and sharing
of operational
costs across
the Group
or other
measures, and
the effect
these will
or would
have on
UBS’s
business
activities; (vii) UBS’s ability to successfully implement resolvability and related regulatory requirements and the potential need to make further changes
to the legal structure
or booking model of UBS
in response to legal and
regulatory requirements and any additional
requirements due to its acquisition
of the
Credit Suisse Group, or other developments;
(viii) UBS’s ability to maintain
and improve its systems and controls
for complying with sanctions in
a timely manner
and for the detection and prevention
of money laundering to meet evolving regulatory
requirements and expectations, in particular in the
current geopolitical
turmoil; (ix) the uncertainty arising from domestic stresses in certain major economies; (x) changes in UBS’s competitive position, including whether differences
in regulatory capital and other requirements among the
major financial centers adversely affect UBS’s
ability to compete in certain lines of business;
(xi) changes
in the standards of conduct applicable to its businesses that may result from
new regulations or new enforcement of existing standards, including measures to
impose new and enhanced duties when interacting with customers and
in the execution and handling of customer transactions; (xii)
the liability to which UBS
may be
exposed, or
possible constraints
or sanctions
that regulatory
authorities might
impose on
UBS, due
to litigation,
contractual claims
and regulatory
investigations, including the
potential for disqualification
from certain businesses,
potentially large fines
or monetary penalties,
or the loss of
licenses or privileges
as
a
result
of
regulatory or
other governmental
sanctions, as
well as
the effect
that litigation,
regulatory and
similar matters
have on
the operational
risk
component of its RWA; (xiii) UBS’s
ability to retain and attract the
employees necessary to generate
revenues and to manage, support
and control its businesses,
which may
be affected
by competitive
factors; (xiv)
changes in
accounting or
tax standards
or policies,
and determinations
or interpretations
affecting
the
recognition of gain or loss, the valuation of goodwill,
the recognition of deferred tax assets and other matters;
(xv) UBS’s ability to implement new technologies
and business methods,
including digital services,
artificial intelligence and other
technologies, and ability to
successfully compete with both
existing and new
financial service
providers, some of
which may
not be
regulated to
the same
extent; (xvi)
limitations on the
effectiveness of
UBS’s internal processes
for risk
management, risk control,
measurement and modeling,
and of financial
models generally; (xvii)
the occurrence of
operational failures, such
as fraud, misconduct,
unauthorized trading, financial crime, cyberattacks, data leakage and systems failures, the risk of which is increased with persistently high levels of
cyberattack
threats; (xviii) restrictions
on the ability of
UBS Group AG, UBS
AG and regulated subsidiaries of
UBS AG to make
payments or distributions, including due
to
restrictions on the
ability of its
subsidiaries to make
loans or distributions,
directly or indirectly, or, in the case
of financial difficulties,
due to the
exercise by FINMA
or
the
regulators
of
UBS’s
operations
in
other
countries
of
their
broad
statutory
powers
in
relation
to
protective
measures,
restructuring
and
liquidation
proceedings; (xix) the degree to which changes
in regulation, capital or legal structure, financial results
or other factors may affect UBS’s ability
to maintain its
stated capital return objective; (xx)
uncertainty over the scope of
actions that may be required by UBS, governments
and others for UBS to achieve goals
relating
to climate, environmental and social matters, as well as the evolving
nature of underlying science and industry and the possibility of conflict
between different
governmental standards and regulatory regimes; (xxi) the ability of UBS to access capital markets; (xxii) the ability of UBS to successfully recover from
a disaster
or other business continuity problem
due to a
hurricane, flood, earthquake, terrorist attack, war,
conflict, pandemic, security breach, cyberattack, power
loss,
telecommunications failure or
other natural or man-made
event; and (xxiii) the
effect that these or other
factors or unanticipated
events, including media reports
and speculations, may have on its reputation and the additional consequences that this may have on its business and performance. The sequence in which the
factors above are
presented is not
indicative of their
likelihood of occurrence
or the potential
magnitude of their
consequences. 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. UBS is not
under any obligation to
(and expressly disclaims
any obligation to) update or alter its forward-looking
statements, whether as a result of new information,
future events, or otherwise.
Disclaimer:
This document and the information contained herein are provided solely for information purposes, and are not to be construed as a solicitation of
an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating to
securities of or relating to UBS Group AG, UBS
AG, or their affiliates should be made on the basis of
this document. No representation or warranty is made or
implied concerning, and UBS assumes no responsibility for, the accuracy,
completeness, reliability or comparability of the information contained herein relating
to third parties, which is based solely on publicly
available information. UBS undertakes no obligation
to update the information contained
herein.
Alternative Performance Measures:
In addition to reporting results in accordance with International
Financial Reporting Standards (IFRS), UBS reports certain
measures that
may qualify
as Alternative
Performance Measures
as defined
in the
SIX Exchange
Directive on
Alternative Performance
Measures, under
the
guidelines published by
the European Securities
Market Authority (ESMA), or
defined as Non-GAAP financial
measures in
regulations promulgated by
the US
Securities and Exchange
Commission (SEC).
Please refer to “Alternative
Performance Measures” in
the appendix of
UBS’s Quarterly Report
for the second
quarter
of 2025 for a list of all measures UBS uses that may qualify as APMs. Underlying results are non-GAAP financial measures as defined by SEC regulations and as
APMs in Switzerland and the EU.
© UBS 2025. The key symbol and UBS are among
the registered and unregistered trademarks of UBS. All rights
reserved.