v3.26.1
Fair value measurement
 6 Months Ended
Jun. 30, 2026
Disclosure Of Fair Value Measurement [Line Items]  
Fair value measurement
Note 9
Fair value measurement
a) Fair value hierarchy
The fair
value hierarchy
classification of
financial and
non-financial assets
and liabilities
measured at
fair value
is
summarized in the table below.
During
the
first
six
months
of
2026,
assets
and
liabilities
that
were
transferred
from
Level 2
to
Level 1,
or
from
Level 1 to Level 2, and were held for the entire reporting period were not material.
Determination of fair values from quoted market prices or valuation techniques
1
30.6.26
31.12.25
USD m
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial assets measured at fair value on a recurring basis
Financial assets at fair value held for trading
146,714
29,092
3,389
179,195
143,009
29,358
2,333
174,699
of which: Equity instruments
128,278
761
196
129,234
127,455
538
151
128,144
of which: Government bills / bonds
8,685
4,675
1
13,361
6,868
4,298
2
11,168
of which: Investment fund units
9,651
1,238
143
11,032
8,319
1,287
71
9,677
of which: Corporate and municipal bonds
100
19,913
1,141
21,154
367
21,208
874
22,449
of which: Loans
0
2,242
1,417
3,660
0
1,703
1,111
2,814
of which: Asset-backed securities
1
262
120
383
0
324
123
447
Derivative financial instruments
1,369
188,983
2,806
193,158
581
143,966
3,230
147,778
of which: Foreign exchange
404
61,457
337
62,198
293
48,056
306
48,655
of which: Interest rate
0
32,492
813
33,304
0
33,631
1,159
34,789
of which: Equity / index
0
84,356
1,258
85,614
0
49,379
1,435
50,814
of which: Credit
0
3,956
395
4,350
0
3,587
323
3,910
of which: Commodities
0
6,599
2
6,601
3
9,239
5
9,247
Brokerage receivables
0
44,704
0
44,704
0
35,579
0
35,579
Financial assets at fair value not held for trading
49,279
54,958
9,750
113,987
47,564
51,097
8,913
107,575
of which: Financial assets for unit-linked investment contracts
22,633
61
0
22,694
20,776
145
0
20,922
of which: Corporate and municipal bonds
164
19,617
163
19,944
0
16,936
89
17,026
of which: Government bills / bonds
25,328
6,567
0
31,895
26,208
6,147
0
32,355
of which: Loans
0
5,296
5,422
10,718
0
5,760
4,226
9,987
of which: Securities financing transactions
0
21,755
968
22,724
0
20,553
937
21,490
of which: Asset-backed securities
0
1,325
431
1,756
0
1,002
480
1,482
of which: Auction rate securities
0
0
0
0
0
0
191
191
of which: Investment fund units
1,123
186
598
1,907
480
381
678
1,539
of which: Equity instruments
31
0
2,093
2,124
100
0
2,082
2,182
Financial assets measured at fair value through other comprehensive income on a recurring basis
Financial assets measured at fair value through other comprehensive income
12,266
2,251
0
14,517
11,735
2,133
0
13,868
of which: Government bills / bonds
12,162
246
0
12,409
11,659
0
0
11,659
of which: Commercial paper and certificates of deposit
0
1,817
0
1,817
0
1,944
0
1,944
of which: Corporate and municipal bonds
104
188
0
292
76
189
0
265
Non-financial assets measured at fair value on a recurring basis
Precious metals and other physical commodities
12,287
0
0
12,287
12,996
0
0
12,996
Non-financial assets measured at fair value on a non-recurring basis
Other non-financial assets
2
0
0
58
58
0
0
62
62
Total assets measured at fair value
221,915
319,988
16,002
557,905
215,886
262,133
14,538
492,557
Determination of fair values from quoted market prices or valuation techniques (continued)
1
30.6.26
31.12.25
USD m
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial liabilities measured at fair value on a recurring basis
Financial liabilities at fair value held for trading
48,709
13,120
53
61,882
39,315
14,278
107
53,700
of which: Equity instruments
40,106
427
48
40,581
32,533
135
65
32,734
of which: Corporate and municipal bonds
8
10,226
3
10,237
12
11,818
37
11,867
of which: Government bills / bonds
6,725
2,091
0
8,815
4,894
2,007
0
6,901
of which: Investment fund units
1,864
252
1
2,117
1,874
177
3
2,054
Derivative financial instruments
1,422
192,561
5,353
199,336
688
150,575
4,981
156,243
of which: Foreign exchange
427
56,740
101
57,268
346
49,473
77
49,895
of which: Interest rate
0
27,883
287
28,169
0
30,539
317
30,856
of which: Equity / index
0
97,427
4,375
101,802
0
58,396
4,224
62,620
of which: Credit
0
4,849
544
5,393
0
4,052
314
4,366
of which: Commodities
0
5,589
16
5,605
2
8,024
16
8,043
of which: Loan commitments measured at FVTPL
0
8
30
37
0
6
26
33
Financial liabilities designated at fair value on a recurring basis
Brokerage payables designated at fair value
0
78,536
0
78,536
0
62,202
0
62,202
Debt issued designated at fair value
0
108,708
12,467
121,175
0
101,103
12,691
113,794
Other financial liabilities designated at fair value
0
28,502
1,324
29,826
0
26,548
1,636
28,184
of which: Financial liabilities related to unit-linked investment contracts
0
22,838
0
22,838
0
21,052
0
21,052
of which: Securities financing transactions
0
3,816
443
4,259
0
3,389
459
3,848
of which: Over-the-counter debt instruments and others
0
1,849
881
2,730
0
2,107
1,177
3,284
Total liabilities measured at fair value
50,131
421,427
19,197
490,755
40,003
354,706
19,415
414,123
1 Bifurcated embedded derivatives are presented on the same balance sheet lines
as their host contracts and are not included in this table. The fair value of these
derivatives was not material for the periods presented.
2 Other non-financial assets primarily consist of properties and other non-current assets held for sale, which are measured
at the lower of their net carrying amount or fair value less costs to sell.
b) Valuation adjustments
The table below summarizes the changes in deferred day-1 profit or loss reserves during the relevant period.
Deferred day-1 profit or loss is generally released into
Other net income
from financial
instruments
measured at
fair
value
through
profit
or
loss
when
the
pricing
of
equivalent
products
or
the
underlying
parameters
become
observable or when the transaction is closed out.
Deferred day-1 profit or loss reserves
Year-to-date
USD m
30.6.26
30.6.25
Reserve balance at the beginning of the period
446
421
Profit / (loss) deferred on new transactions
191
133
(Profit) / loss recognized in the income statement
(166)
(135)
Foreign currency translation
0
(2)
Reserve balance at the end of the period
472
417
The table below summarizes other valuation adjustment reserves recognized on the balance sheet.
Other valuation adjustment reserves on the balance sheet
As of
USD m
30.6.26
31.12.25
Own credit adjustments on financial liabilities designated at fair value
1
(1,368)
(1,665)
of which: debt issued designated at fair value
(1,332)
(1,681)
of which: other financial liabilities designated at fair value
(36)
16
Credit valuation adjustments
2
(24)
(29)
Funding and debit valuation adjustments
(70)
(50)
Other valuation adjustments
(742)
(741)
of which: liquidity
(508)
(524)
of which: model uncertainty
(233)
(217)
1 Own credit adjustments on financial liabilities designated at fair value includes amounts for TLAC notes.
2 Amount does not include reserves against defaulted counterparties.
c) Level 3 instruments: valuation techniques and inputs
The
table
below
presents
material
Level 3
assets
and
liabilities,
together
with
the
valuation
techniques
used
to
measure fair
value, as
well as the
inputs used in
a given
valuation technique that
are considered
significant as of
30 June 2026 and unobservable, and a range of values for those unobservable inputs.
The range of values represents
the highest-
and lowest-level inputs used
in the valuation techniques.
Therefore,
the
range does not
reflect the
level of uncertainty
regarding a
particular
input or an assessment
of the reasonableness
of
the Group’s estimates
and assumptions,
but rather the different
underlying characteristics
of the relevant assets
and
liabilities
held by the
Group.
The significant unobservable inputs
disclosed in the table
below are consistent with
those included in “Note 20
Fair
value measurement” in the “Consolidated financial statements” section of the UBS Group Annual Report 2025.
Valuation techniques and inputs used in the fair value measurement of Level 3 assets and liabilities
Fair value
Significant unobservable
input(s)
1
Range of inputs
Assets
Liabilities
Valuation
technique(s)
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USD bn
30.6.26
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low
high
weighted
average
2
low
high
weighted
average
2
unit
1
Financial assets and liabilities at fair value held for trading and Financial assets at fair value not held for trading
Corporate and municipal
bonds
1.3
1.0
0.0
0.0
Relative value to
market comparable
Bond price equivalent
9
103
93
11
104
80
points
Loans at fair value (held
for trading and not held for
trading) and guarantees
3
6.9
5.6
0.0
0.0
Relative value to
market comparable
Loan price equivalent
4
100
96
19
101
87
points
Discounted expected
cash flows
Credit spread
275
275
275
233
277
277
basis
points
Market comparable
and securitization
model
Credit spread
75
1,915
248
85
1,965
323
basis
points
Investment fund units
4
0.7
0.7
0.0
0.0
Relative value to
market comparable
Net asset value
Equity instruments
4
2.3
2.2
0.0
0.1
Relative value to
market comparable
Price
Securities financing
transactions
1.0
0.9
0.4
0.5
Discounted expected
cash flows
Funding spread
95
181
95
166
basis
points
Debt issued designated at
fair value and Other
financial liabilities
designated at fair value
3
13.3
13.9
Derivative financial instruments
Interest rate
0.8
1.2
0.3
0.3
Option model
Volatility of interest rates
61
80
61
85
basis
points
Credit
0.4
0.3
0.5
0.3
Discounted expected
cash flows
Credit spreads
4
1,040
3
1,040
basis
points
Recovery rates
4
60
4
60
%
Option model
Recovery rates
0
40
0
40
%
Equity / index
1.3
1.4
4.4
4.2
Option model
Equity dividend yields
0
9
0
11
%
Volatility of equity stocks,
equity and other indices
4
195
3
104
%
Equity-to-FX correlation
(65)
70
(65)
70
%
Equity-to-equity
correlation
13
100
(10)
100
%
Loan commitments
measured at FVTPL
0.0
0.0
Relative value to
market comparable
Loan price equivalent
66
100
80
100
points
1 The ranges of significant unobservable
inputs are represented in points, percentages and
basis points. Points are
a percentage of par (e.g. 100 points
would be 100% of par).
2 Weighted averages are provided
for most
non-derivative financial
instruments and
were calculated
by weighting
inputs based
on the
fair values
of the
respective instruments.
Weighted averages
are not
provided for
inputs related
to Securities
financing transactions and Derivative financial instruments, as this would not be meaningful.
3 Excludes securities financing transactions. Debt issued designated at fair value and Other
financial liabilities designated
at fair value primarily consists of UBS AG structured notes, which include variable maturity notes with various equity and foreign
exchange underlying risks, as well as rates-linked and credit-linked
notes, all of which
have embedded derivative parameters that are
considered to be unobservable. The derivative instrument parameters
for debt issued designated at
fair value, embedded derivatives for over-the-counter debt instruments
reported under Other
financial liabilities designated
at fair value
and funded derivatives
reported under Loans
at fair value
(held for trading
and not held
for trading) are
presented in the
corresponding derivative
financial instruments lines in this table.
4 The range of inputs is not disclosed, as there is a dispersion of values
given the diverse nature of the investments.
d) Level 3 instruments: sensitivity to changes in unobservable input assumptions
The table below summarizes those
financial assets and liabilities classified
as Level 3 for which a
change in one or
more
of
the unobservable
inputs to
reflect
reasonably possible
alternative assumptions
would
change
fair value
significantly, and the estimated effect thereof.
The
sensitivity
data
shown
below
presents
an
estimation
of
valuation
uncertainty
based
on
reasonably
possible
alternative values for Level 3 inputs at the balance sheet date and does not represent the estimated effect of stress
scenarios. Typically,
these financial
assets and
liabilities are
sensitive to
a combination
of inputs
from Levels 1–3.
Although well-defined
interdependencies may
exist between
Level 1 / 2 parameters
and Level 3
parameters (e.g.
between interest rates, which
are generally Level 1 or
Level 2, and prepayments, which
are generally Level 3), these
have not been incorporated in the table. Furthermore,
direct interrelationships between the Level 3 parameters are
not a significant element of the valuation uncertainty.
Sensitivity of fair value measurements to changes in unobservable input assumptions
1
30.6.26
31.12.25
USD m
Favorable
changes
Unfavorable
changes
Favorable
changes
Unfavorable
changes
Loans at fair value (held for trading and not held for trading) and guarantees
2
32
(49)
79
(67)
Securities financing transactions
14
(22)
16
(8)
Auction rate securities
0
0
8
(4)
Asset-backed securities
19
(15)
15
(15)
Equity instruments
3
194
(194)
414
(389)
Investment fund units
180
(181)
204
(206)
Loan commitments measured at FVTPL
16
(26)
15
(25)
Interest rate derivatives, net
31
(24)
52
(23)
Credit derivatives, net
23
(49)
25
(55)
Foreign exchange derivatives, net
6
(5)
9
(6)
Equity / index derivatives, net
809
(705)
667
(570)
Other
242
(119)
206
(83)
Total
1,567
(1,389)
1,710
(1,452)
1 Sensitivity of issued and over-the-counter debt instruments
is reported with the equivalent derivative or
Other.
2 Sensitivity of funded derivatives is reported under equivalent
derivatives.
3 Sensitivity decreased
due to refinements applied in estimating valuation uncertainty.
e) Level 3 instruments: movements during the period
The table below presents additional information about material Level 3
assets and liabilities measured at fair value
on a recurring basis. Level 3 assets and liabilities may be hedged with instruments classified as Level 1 or Level 2 in
the
fair
value
hierarchy
and,
as
a
result,
realized
and
unrealized
gains
and
losses
included
in
the
table
may
not
include the effect of
related hedging activity. Furthermore,
the realized and unrealized
gains and losses presented
in the table are not limited solely
to those arising from Level 3 inputs, as
valuations are generally derived from both
observable and unobservable parameters.
Assets
and
liabilities
transferred
into
or
out
of
Level 3
are
presented
as
if
those
assets
or
liabilities
had
been
transferred on 1 January 2026.
Movements of Level 3 instruments
USD bn
Balance
at the
beginning
of the
period
Net gains /
losses
included in
compre-
hensive
income
1
of which:
related to
instruments
held at the
end of the
period
Purchases
Sales
Issuances
Settlements
Transfers
into
Level 3
Transfers
out of
Level 3
Foreign
currency
translation
Balance
at the
end
of the
period
For the six months ended 30 June 2026
2
Financial assets at fair value held for
trading
2.3
(0.0)
(0.0)
0.9
(0.7)
1.0
(0.4)
0.7
(0.2)
(0.0)
3.4
of which: Equity instruments
0.2
(0.0)
(0.0)
0.0
(0.3)
0.0
(0.0)
0.4
(0.0)
(0.0)
0.2
of which: Corporate and municipal
bonds
0.9
(0.0)
(0.0)
0.4
(0.2)
0.0
0.0
0.2
(0.2)
(0.0)
1.1
of which: Loans
1.1
0.0
0.0
0.0
(0.3)
1.0
(0.4)
0.0
(0.0)
(0.0)
1.4
Derivative financial instruments –
assets
3.2
0.2
0.2
0.0
0.0
0.7
(0.8)
0.1
(0.7)
(0.0)
2.8
of which: Interest rate
1.2
0.1
0.1
0.0
0.0
0.0
(0.1)
0.0
(0.4)
0.0
0.8
of which: Equity / index
1.4
0.2
0.1
0.0
0.0
0.6
(0.7)
0.0
(0.3)
(0.0)
1.3
of which: Credit
0.3
(0.1)
(0.0)
0.0
0.0
0.1
(0.0)
0.0
(0.0)
(0.0)
0.4
Financial assets at fair value not held
for trading
8.9
0.7
0.7
0.1
(0.1)
1.4
(1.0)
0.0
(0.2)
(0.0)
9.7
of which: Loans
4.2
0.7
0.7
0.0
0.0
1.2
(0.5)
0.0
(0.2)
(0.0)
5.4
of which: Auction rate securities
0.2
(0.0)
0.0
0.0
0.0
0.0
(0.2)
0.0
0.0
0.0
0.0
of which: Equity instruments
2.1
0.0
0.0
0.0
(0.0)
0.0
0.0
0.0
(0.0)
(0.0)
2.1
of which: Investment fund units
0.7
(0.0)
(0.0)
0.0
(0.1)
0.0
(0.0)
0.0
(0.0)
(0.0)
0.6
of which: Asset-backed securities
0.5
(0.0)
(0.0)
0.0
(0.0)
0.0
0.0
0.0
(0.0)
(0.0)
0.4
Derivative financial instruments –
liabilities
5.0
0.7
0.6
0.0
0.0
1.4
(1.5)
0.3
(0.5)
(0.0)
5.4
of which: Interest rate
0.3
0.2
0.1
0.0
0.0
0.0
(0.2)
0.0
(0.1)
(0.0)
0.3
of which: Equity / index
4.2
0.5
0.5
0.0
0.0
1.1
(1.3)
0.2
(0.4)
(0.0)
4.4
of which: Credit
0.3
(0.0)
(0.0)
0.0
0.0
0.2
0.0
0.1
(0.0)
(0.0)
0.5
of which: Loan commitments
measured at FVTPL
0.0
0.0
0.0
0.0
0.0
0.0
(0.0)
0.0
0.0
(0.0)
0.0
Debt issued designated at fair value
12.7
0.4
0.3
0.0
(0.0)
3.7
(2.3)
0.6
(2.4)
(0.1)
12.5
Other financial liabilities designated at
fair value
1.6
0.0
0.0
0.0
0.0
0.3
(0.6)
0.0
(0.0)
(0.0)
1.3
For the six months ended 30 June 2025
Financial assets at fair value held for
trading
3.1
(0.0)
(0.1)
0.4
(1.1)
1.1
(0.4)
0.4
(0.1)
0.1
3.5
of which: Equity instruments
0.1
(0.0)
(0.0)
0.0
(0.0)
0.0
(0.0)
0.1
(0.0)
0.0
0.2
of which: Corporate and municipal
bonds
0.8
(0.0)
(0.0)
0.3
(0.4)
0.0
(0.0)
0.1
(0.1)
0.0
0.8
of which: Loans
1.8
0.1
(0.0)
0.0
(0.5)
1.1
(0.3)
0.0
(0.0)
0.0
2.2
Derivative financial instruments –
assets
2.8
(0.0)
0.1
0.0
(0.0)
1.3
(0.9)
0.3
(0.3)
0.0
3.2
of which: Interest rate
0.9
0.1
0.1
0.0
(0.0)
0.0
(0.2)
0.1
(0.0)
(0.1)
0.9
of which: Equity / index
1.1
(0.2)
(0.2)
0.0
0.0
0.7
(0.3)
0.1
(0.2)
0.0
1.3
of which: Credit
0.6
0.1
0.2
0.0
(0.0)
0.5
(0.3)
0.1
(0.1)
0.0
0.9
Financial assets at fair value not held
for trading
8.7
0.7
0.6
0.1
(0.3)
0.7
(0.8)
0.1
(0.1)
0.2
9.3
of which: Loans
3.2
0.7
0.7
0.0
(0.0)
0.5
(0.7)
0.0
(0.0)
0.1
3.7
of which: Auction rate securities
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
of which: Equity instruments
2.9
0.1
0.1
0.1
(0.1)
0.0
(0.0)
0.0
(0.0)
0.1
3.1
of which: Investment fund units
0.7
0.0
0.0
0.0
(0.1)
0.0
(0.0)
0.0
0.0
0.0
0.6
of which: Asset-backed securities
0.6
(0.0)
(0.0)
0.0
(0.1)
0.0
0.0
0.0
(0.0)
0.0
0.5
Derivative financial instruments –
liabilities
4.1
0.2
0.2
0.0
(0.0)
1.2
(1.0)
0.1
(0.6)
0.1
4.1
of which: Interest rate
0.3
0.1
0.1
0.0
(0.0)
0.0
(0.1)
0.0
(0.0)
0.0
0.3
of which: Equity / index
3.1
0.2
0.2
0.0
0.0
1.1
(0.6)
0.1
(0.5)
0.1
3.5
of which: Credit
0.4
(0.0)
(0.1)
0.0
0.0
0.1
(0.2)
0.0
(0.0)
(0.0)
0.2
of which: Loan commitments
measured at FVTPL
0.1
0.0
(0.0)
0.0
(0.0)
0.0
(0.0)
0.0
(0.0)
0.0
0.0
Debt issued designated at fair value
13.3
0.2
0.2
0.0
0.0
2.6
(1.7)
0.8
(2.9)
0.5
12.9
Other financial liabilities designated at
fair value
2.8
(0.0)
(0.0)
0.0
(0.0)
0.4
(0.8)
0.0
(0.0)
0.0
2.3
1 Net gains / losses included in
comprehensive income are recognized in
Net interest income and Other net
income from financial instruments measured
at fair value through profit or
loss in the Income statement,
and also in Gains / (losses) from own credit on financial liabilities designated at fair value,
before tax in the Statement of comprehensive income. Of the USD
0.2
bn net losses (30 June 2025: USD
0.2
bn net gains) in
net gains / losses
included in comprehensive
income, USD
0.3
bn net losses (30
June 2025: USD
0.1
bn net gains) are
recognized in the Income
statement and USD
0.1
bn net gains (30
June 2025: USD
0.1
bn net
gains) are recognized
in the Statement
of comprehensive
income in Gains
/ (losses)
from own credit
on financial liabilities
designated at
fair value,
before tax.
2 Total
Level 3 assets
as of 30 June
2026 were
USD
16.0
bn (31 December 2025: USD
14.5
bn). Total Level 3 liabilities as of 30 June 2026 were USD
19.2
bn (31 December 2025: USD
19.4
bn).
f) Financial instruments not measured at fair value
The
table
below reflects
the estimated
fair values
of
financial
instruments not
measured at
fair value.
Valuation
principles applied
when determining
fair value
estimates for
financial instruments
not measured
at fair
value are
consistent with those
described in “Note 20
Fair value measurement” in
the “Consolidated financial
statements”
section of the UBS Group Annual Report 2025.
Financial instruments not measured at fair value
30.6.26
31.12.25
USD bn
Carrying amount
Fair value
Carrying amount
Fair value
Assets
Cash and balances at central banks
215.7
215.7
209.9
209.9
Amounts due from banks
21.0
20.9
19.6
19.6
Receivables from securities financing transactions measured at amortized cost
83.6
83.6
83.7
83.7
Cash collateral receivables on derivative instruments
51.3
51.3
41.6
41.6
Loans and advances to customers
662.9
656.5
653.8
648.9
Other financial assets measured at amortized cost
72.3
71.3
71.9
71.1
Liabilities
Amounts due to banks
27.3
27.4
24.4
24.5
Payables from securities financing transactions measured at amortized cost
20.4
20.4
16.2
16.2
Cash collateral payables on derivative instruments
37.3
37.3
34.2
34.2
Customer deposits
784.8
785.6
788.4
789.0
Debt issued measured at amortized cost
222.4
227.4
214.7
219.9
Other financial liabilities measured at amortized cost
1
12.9
12.9
11.6
11.6
1 Excludes lease liabilities.