Companies: 10,657     total market cap: A$200.586 T
$USD๐Ÿ‡บ๐Ÿ‡ธโ‚ฌEUR๐Ÿ‡ช๐Ÿ‡บโ‚นINR๐Ÿ‡ฎ๐Ÿ‡ณยฃGBP๐Ÿ‡ฌ๐Ÿ‡ง$CAD๐Ÿ‡จ๐Ÿ‡ฆ$NZD๐Ÿ‡ณ๐Ÿ‡ฟ$HKD๐Ÿ‡ญ๐Ÿ‡ฐ$SGD๐Ÿ‡ธ๐Ÿ‡ฌ
UBS
UBS
#147
Rank
A$203.41 B
Marketcap
๐Ÿ‡จ๐Ÿ‡ญ Switzerland
Country
A$64.38
Share price
-5.92%
Change (1 day)
28.20%
Change (1 year)
๐Ÿฆ Banks๐Ÿ’ณ Financial services
Categories
  1. UBS
  2. Annual Reports (20-F)
  3. Submitted on 2023-03-06

UBS - 20-F annual report


Text size:
2022FY00016105200001114446FY--12-312022TRUEFALSEFALSE--12-31SwitzerlandFALSEFALSE719 3000203FALSEInternational Financial Reporting StandardsFALSEFALSEDavid KellyFALSE01/04/202201/04/202223/02/202323/02/20233,009,6682,443,5620001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:AssumptionOfLifeExpectancyMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:TopOfRangeMember2022-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:FundOwnershipPlanMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMember2022-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberubs:UBSAGMember2021-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:UBSAGMember2021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:PensionPlansMember2021-01-012021-12-3100016105202022-12-310001610520ubs:UBSAGMember2020-01-012020-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:UKPensionPlanMember2021-12-310001610520ubs:UBSAGMember2021-01-012021-12-3100016105202021-12-310001610520ifrs-full:PlanAssetsMemberubs:SwissPensionPlanMember2022-01-012022-12-3100016105202020-01-012020-12-310001610520ubs:UBSAGMember2021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:AssumptionOfLifeExpectancyMember2021-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:SwissPensionPlanMember2021-01-012021-12-310001610520ifrs-full:UnusedTaxLossesMember2021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:SwissPensionPlanMember2021-01-012021-12-310001610520ubs:DeferredContingentCapitalPlanMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:PlanAssetsMemberubs:SwissPensionPlanMember2021-01-012021-12-3100016105202021-01-012021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMember2021-12-3100016105202020-12-310001610520ubs:UKPensionPlanMember2021-12-310001610520ubs:UBSAGMemberubs:SegmentGWMMember2022-12-310001610520ubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMember2021-01-012021-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:PensionPlansMember2022-01-012022-12-310001610520ubs:DeferredCompensationAwardsMember2020-01-012020-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMemberubs:SegmentGWMMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2020-12-310001610520ubs:UBSAGMemberubs:SegmentSwissMember2022-01-012022-12-310001610520ubs:USAndGermanPensionPlansMember2022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-01-012022-12-3100016105202022-01-012022-12-310001610520ubs:DeferredContingentCapitalPlanMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:DerivativeFinancialAssetsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:InvestmentFundsMemberubs:UBSAGMemberubs:DerivativeFinancialAssetsMember2022-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:UKPensionPlanMember2021-01-012021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ubs:EquityOwnershipPlanMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:SecuritisationVehiclesMember2022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:USAndGermanPensionPlansMember2022-01-012022-12-310001610520ifrs-full:UnusedTaxLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:PlanAssetsMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ubs:USAndGermanPensionPlansMember2021-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SegmentGWMMember2020-01-012020-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:WeightedAverageMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:OtherInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:PlanAssetsMemberubs:PensionPlansMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:OtherInvestmentsMember2022-12-310001610520ubs:UBSAGMemberubs:DerivativeFinancialAssetsMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UKPensionPlanMember2022-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:CompensationPriorYearsMemberubs:DeferredCompensationAwardsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanUBSAGDebtInstrumentsMember2021-12-310001610520ifrs-full:BottomOfRangeMemberubs:CreditSpreadRiskMember2022-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMemberubs:SegmentAMMember2021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:PensionPlansMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberubs:ClientVehiclesMember2022-12-310001610520ubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:UKPensionPlanMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:SegmentSwissMember2020-01-012020-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:PensionPlansMember2021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:GlobalMember2021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMember2022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:AssumptionOfLifeExpectancyMember2022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:PensionPlansMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:CashPerformanceAwardsMember2020-01-012020-12-310001610520ubs:FinancialAdvisorCompensationCommitmentsMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:TopOfRangeMember2022-12-310001610520ubs:EquityOwnershipPlanMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-12-310001610520ubs:UBSAGMemberubs:EquityOwnershipPlanMember2022-01-012022-12-310001610520ifrs-full:SecuritisationVehiclesMemberubs:UBSAGMemberubs:DerivativeFinancialLiabilitiesMember2021-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:SegmentGWMMember2021-12-310001610520ubs:FinancialAdvisorCompensationCommitmentsMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ifrs-full:PlanAssetsMemberubs:UKPensionPlanMember2021-01-012021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:SegmentIBMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UBSAGMemberubs:UKPensionPlanMember2022-12-310001610520ubs:EquityOwnershipPlanMember2022-01-012022-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCashPaymentsMember2022-01-012022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:TopOfRangeMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMember2021-12-310001610520ubs:UBSAGMemberubs:EquityOwnershipPlanMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ubs:SwissPensionPlanMemberubs:OtherInvestmentFundsMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UBSAGMemberubs:UKPensionPlanMember2021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCommitmentsMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ifrs-full:PlanAssetsMemberubs:USAndGermanPensionPlansMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:NotTimeSpecificMember2021-12-310001610520ubs:DeferredContingentCapitalPlanMember2021-01-012021-12-310001610520ubs:CashPerformanceAwardsMember2022-01-012022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMember2022-01-012022-12-310001610520ubs:GlobalMember2020-12-310001610520ubs:UBSAGMemberubs:SegmentNonSwissMember2021-01-012021-12-310001610520ubs:SwissPensionPlanMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ubs:LaterThanTenYearsAndNotLaterThanTwentyYearsMember2022-12-310001610520ifrs-full:InterestRateRiskMemberubs:SegmentIBMember2021-12-310001610520ubs:SwissPensionPlanMemberubs:DomesticRealEstateAndPropertyMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ActuarialAssumptionOfInterestCreditRateMember2021-12-310001610520ubs:UBSAGMemberubs:PerformanceAwardsMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:EquityOwnershipPlanMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMember2021-01-012021-12-310001610520ubs:FinancialAdvisorCompensationCashPaymentsMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:PerformanceAwardsMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanUBSAGDebtInstrumentsMember2021-12-310001610520ifrs-full:TopOfRangeMemberubs:CreditSpreadRiskMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:InvestmentFundsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ubs:FinancialAdvisorCompensationCommitmentsMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ubs:SegmentIBMemberubs:CreditSpreadRiskMember2022-12-310001610520ifrs-full:WeightedAverageMember2021-01-012021-12-310001610520ubs:UKPensionPlanMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ubs:UBSAGMember2020-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ubs:SegmentAMMemberubs:CreditSpreadRiskMember2021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCommitmentsMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ubs:FinancialAdvisorCompensationMember2021-01-012021-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:PensionPlansMember2022-01-012022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:CreditSpreadRiskMember2021-12-310001610520ubs:CompensationPerformanceYearMemberubs:DeferredCompensationAwardsMember2021-01-012021-12-310001610520ifrs-full:TemporaryDifferenceMember2022-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:OtherInvestmentFundsMember2022-12-310001610520ubs:UBSAGMemberubs:DeferredCompensationAwardsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:BottomOfRangeMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:InvestmentFundsMember2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:USAndGermanPensionPlansMember2020-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticRealEstateAndPropertyMember2021-12-310001610520ubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:SwissPensionPlanMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ubs:UBSAGMemberubs:DeferredContingentCapitalPlanMember2020-01-012020-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:FinancialAssetsMeasuredAtAmortisedCostMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:TopOfRangeMember2021-12-310001610520ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades9To13Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:SegmentAMMember2021-12-310001610520ubs:CompensationPerformanceYearMemberubs:DeferredCompensationAwardsMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:SegmentPCBMemberubs:CreditSpreadRiskMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:SwissPensionPlanMember2021-01-012021-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:UBSAGMemberubs:TemporaryDifferenceRelatedToCompensationMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMemberubs:SegmentPCBMember2021-12-310001610520ubs:PerformanceAwardsMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:PerformanceAwardsMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:OtherInvestmentsMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMemberubs:SegmentIBMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UKPensionPlanMember2021-12-310001610520ubs:UBSAGMemberubs:DeferredContingentCapitalPlanMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:GlobalMember2020-01-012020-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ubs:SegmentSwissMember2022-01-012022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ubs:SegmentNonSwissMember2020-01-012020-12-310001610520ubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanUBSGroupAGSharesMember2021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCommitmentsMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ubs:GlobalMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:SwissPensionPlanMember2020-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCashPaymentsMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMemberubs:SegmentAMMember2022-12-310001610520ubs:UBSAGMemberubs:CompensationPerformanceYearMemberubs:DeferredCompensationAwardsMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:SegmentAMMember2021-01-012021-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UKPensionPlanMember2022-12-310001610520ubs:UBSAGMemberubs:GlobalMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberifrs-full:FinancialGuaranteeContractsMember2022-12-310001610520ifrs-full:BottomOfRangeMemberubs:SegmentPCBMember2021-12-310001610520ubs:DeferredContingentCapitalPlanMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ifrs-full:TopOfRangeMemberubs:CreditSpreadRiskMember2021-12-310001610520ubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:TopOfRangeMemberubs:UBSAGMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMemberubs:SegmentIBMember2022-12-310001610520ubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:DeferredContingentCapitalPlanMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialAssetsMember2021-12-310001610520ubs:UBSAGMemberubs:IntragroupFundingMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:ReverseRepurchaseAgreementAssetsAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ubs:UBSAGMemberubs:PerformanceAwardsMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:SegmentPCBMemberubs:CreditSpreadRiskMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:LoanCommitmentsMember2022-12-310001610520ubs:UBSAGMemberubs:ShortTermNotesAndDebenturesIssuedMember2020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2021-12-310001610520ubs:OverTheCounterDerivativeLiabilitiesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCommitmentsMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ubs:GlobalMember2022-01-012022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:SwissPensionPlanMember2022-12-310001610520ubs:DeferredCompensationAwardsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:SegmentPCBMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:CompensationPriorYearsMemberubs:DeferredCompensationAwardsMember2020-01-012020-12-310001610520ubs:SwissPensionPlanMember2021-12-310001610520ubs:ClientVehiclesMember2022-12-310001610520ubs:UBSAGMemberubs:PerformanceAwardsMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCommitmentsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:PensionPlansMember2021-12-310001610520ubs:UBSAGMemberubs:OverTheCounterDerivativeLiabilitiesMember2022-01-012022-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:TemporaryDifferenceRelatedToCompensationMember2021-12-310001610520ubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValueBankAccountsAtUBSAGMember2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:UKPensionPlanMember2021-12-310001610520ubs:DerivativeFinancialAssetsMember2022-12-310001610520ubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ubs:CompensationPerformanceYearMemberubs:DeferredCompensationAwardsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:PerformanceAwardsMember2022-01-012022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:GoodsOrServicesTransferredOnRecurringBasisMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:OtherInvestmentsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ubs:CompensationPriorYearsMemberubs:DeferredCompensationAwardsMember2021-01-012021-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UKPensionPlanMember2021-12-310001610520ubs:UBSAGMemberubs:CashPerformanceAwardsMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCashPaymentsMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:SwissPensionPlanMember2021-01-012021-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMemberubs:SegmentPCBMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UKPensionPlanMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ubs:CreditSpreadRiskMember2022-01-012022-12-310001610520ubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ActuarialAssumptionOfInterestCreditRateMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:OtherInvestmentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:SegmentIBMember2021-12-310001610520ubs:GlobalMember2020-01-012020-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:SegmentPCBMember2021-12-310001610520ubs:UBSAGMemberubs:EquityOwnershipPlanMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UBSAGMemberubs:SwissPensionPlanMember2021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ubs:DeferredContingentCapitalPlanMember2022-01-012022-12-310001610520ifrs-full:PlanAssetsMemberubs:USAndGermanPensionPlansMember2020-12-310001610520ubs:UBSAGMemberubs:DerivativeFinancialLiabilitiesMemberubs:ClientVehiclesMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticRealEstateAndPropertyMember2022-12-310001610520ifrs-full:InvestmentFundsMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:PerformanceAwardsMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:USAndGermanPensionPlansMember2022-12-310001610520ubs:UBSAGMemberubs:SegmentNonSwissMember2022-01-012022-12-310001610520ubs:GlobalMember2021-01-012021-12-310001610520ubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ubs:UBSAGMemberubs:CompensationPriorYearsMemberubs:FundOwnershipPlanMember2021-01-012021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberubs:UBSAGMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ubs:ShortTermNotesAndDebenturesIssuedMember2020-12-310001610520ubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ubs:UBSAGMemberubs:ReverseRepurchaseAgreementAssetsAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades6To8Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:BrokerageReceivablesMeasuredAtFairValueThroughProfitOrLossMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:OtherInvestmentsMember2021-12-310001610520ubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:CashPerformanceAwardsMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMember2022-01-012022-12-310001610520ubs:FinancialAdvisorCompensationCashPaymentsMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ifrs-full:GoodsOrServicesTransferredAtPointInTimeMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:SegmentPCBMember2021-12-310001610520ubs:SwissPensionPlanMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:OtherInvestmentFundsMember2021-12-310001610520ubs:UBSAGMemberubs:DeferredCompensationAwardsMember2020-01-012020-12-310001610520ifrs-full:InvestmentFundsMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:FinancialAssetsMeasuredAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMemberubs:UBSAGMember2022-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:TopOfRangeMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMember2022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:PensionPlansMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberubs:ClientVehiclesMember2021-12-310001610520ifrs-full:PlanAssetsMemberubs:PensionPlansMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticRealEstateAndPropertyMember2021-12-310001610520ubs:UBSAGMemberubs:CompensationPriorYearsMemberubs:LongTermIncentivePlanMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMemberubs:UBSAGMember2022-12-310001610520ubs:DerivativeFinancialLiabilitiesMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:OtherInvestmentsMember2021-12-310001610520ubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMember2020-01-012020-12-310001610520ubs:FinancialAdvisorCompensationCommitmentsMember2022-01-012022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:SwissPensionPlanMember2021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:CommodityPriceRiskMember2022-12-310001610520ubs:UBSAGMemberubs:SegmentIBMemberubs:CreditSpreadRiskMember2022-12-310001610520ubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ubs:CashCollateralPayablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialAssetsMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ubs:UBSAGMemberubs:SegmentGWMMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:UBSAGMemberubs:GlobalMember2020-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMember2022-01-012022-12-310001610520ubs:SegmentSwissMember2020-01-012020-12-310001610520ifrs-full:TopOfRangeMemberubs:SegmentAMMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ubs:UBSAGMemberubs:LongTermNotesAndDebenturesIssuedMember2022-12-310001610520ubs:ClientVehiclesMember2021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades6To8Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:TemporaryDifferenceRelatedToRealEstateCapitalizedForUSTaxPurposesMember2021-12-310001610520ifrs-full:CurrencyRiskMemberubs:SegmentPCBMember2021-12-310001610520ubs:UBSAGMemberubs:ShortTermNotesAndDebenturesIssuedMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:CreditSpreadRiskMemberubs:SegmentGWMMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:FinancialAssetsMeasuredAtFairValueMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ubs:UBSAGMemberubs:CreditSpreadRiskMember2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:SwissPensionPlanMember2022-12-310001610520ubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ubs:FinancialAdvisorCompensationCommitmentsMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:SegmentSwissMember2021-01-012021-12-310001610520ifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:SegmentPCBMember2022-12-310001610520ifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:SegmentIBMember2022-12-310001610520ifrs-full:TopOfRangeMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:DerivativesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignRealEstateAndPropertyMember2021-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:PensionPlansMember2021-01-012021-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMemberubs:SegmentGWMMember2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:UKPensionPlanMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:CreditSpreadRiskMember2022-01-012022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:TemporaryDifferenceRelatedToCompensationMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:SegmentGFMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ubs:SegmentGWMMember2022-01-012022-12-310001610520ubs:OverTheCounterDerivativeLiabilitiesMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:PlanAssetsMemberubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCashPaymentsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:EquityOwnershipPlanMember2021-01-012021-12-310001610520ifrs-full:InvestmentFundsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:CurrencyRiskMemberubs:SegmentAMMember2021-12-310001610520ifrs-full:SecuritisationVehiclesMemberubs:UBSAGMemberubs:DerivativeFinancialAssetsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:PlanAssetsMemberubs:PensionPlansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:FinancialAssetsOffBalanceSheetMember2021-12-310001610520ubs:UBSAGMemberubs:SegmentAMMember2022-01-012022-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:UBSAGMemberubs:TemporaryDifferenceRelatedToCompensationMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:ClientVehiclesMember2021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:SwissPensionPlanMember2020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades0To1Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ubs:RepurchaseAgreementsAndCashCollateralOnSecuritiesLentMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberubs:SegmentAMMember2021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:SwissPensionPlanMember2022-12-310001610520ubs:UBSAGMemberubs:DeferredContingentCapitalPlanMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:DerivativesMember2022-12-310001610520ubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:RepurchaseAgreementsAndCashCollateralOnSecuritiesLentMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ActuarialAssumptionOfInterestCreditRateMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialGuaranteeContractsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMemberubs:SegmentAMMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ubs:UBSAGMemberubs:RepurchaseAgreementsAndCashCollateralOnSecuritiesLentMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:SegmentGWMMember2021-12-310001610520ubs:UBSAGMemberubs:OverTheCounterDerivativeLiabilitiesMember2022-12-310001610520ubs:EMEAMember2020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ubs:UBSAGMemberubs:NotesAndDebenturesIssuedMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGradesDefaultedMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberubs:SegmentGFMember2022-12-310001610520ubs:UBSAGMemberubs:EquityOwnershipPlanMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:CashCollateralPayablesOnDerivativeInstrumentsMember2022-12-310001610520ubs:UBSAGMemberubs:CreditSpreadRiskMemberubs:SegmentGWMMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:USAndGermanPensionPlansMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:DerivativesMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:SegmentAMMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMember2022-12-310001610520ubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:LombardLoanMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ubs:UBSAGMemberubs:FundOwnershipPlanMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ubs:UBSAGMemberubs:CashCollateralPayablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMember2022-12-310001610520ubs:RepurchaseAgreementLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:SegmentGWMMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ubs:UBSAGMemberubs:IntragroupFundingMember2021-01-012021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:USAndGermanPensionPlansMember2022-01-012022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:EquityIndexContractsNetMemberubs:EquityDividendYieldsMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:CorporateAndMunicipalBondsMember2021-12-310001610520ubs:PerformanceAwardsMember2022-01-012022-12-310001610520ubs:SegmentIBMember2020-01-012020-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:PensionPlansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ubs:UBSAGMemberubs:SegmentAMMemberubs:CreditSpreadRiskMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:PerformanceAwardsMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:SegmentIBMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMemberubs:BondPriceEquivalentMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FairValueHedgesMemberifrs-full:InterestRateRiskMember2021-01-012021-12-310001610520ifrs-full:EquityMemberubs:BaselineScenarioMemberubs:MinusTenPercentMember2022-01-012022-12-310001610520ifrs-full:InterestRateRiskMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:DeferredContingentCapitalPlanMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMemberubs:SegmentPCBMember2021-12-310001610520ubs:EURCurrencyExchangeRateMember2022-12-310001610520ubs:UBSAGMemberubs:EMEAMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades0To1Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:ForeignRealEstateAndPropertyMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades2To3Memberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ubs:EMEAMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:UBSAGMemberubs:DerivativeFinancialLiabilitiesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:InterestRateRiskMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades6To8Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ubs:RepurchaseAgreementLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionMember2021-12-310001610520ubs:UBSAmericasIncSubsidiariesMember2022-01-012022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:FairValueHedgesMember2022-01-012022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:SegmentGFMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:CHFCurrencyExchangeRateMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:WeightedAverageMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2022-12-310001610520ubs:ShortTermNotesAndDebenturesIssuedMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCashPaymentsMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:TopOfRangeMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:CreditSpreadRiskMember2021-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:TopOfRangeMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialGuaranteeContractsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignRealEstateAndPropertyMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ubs:UBSAGMemberubs:RepurchaseAgreementsAndCashCollateralOnSecuritiesLentMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignRealEstateAndPropertyMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:LoanCommitmentsMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMemberubs:LoanPriceEquivalentMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ubs:UBSAGMemberubs:RepurchaseAgreementLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:NotLaterThanOneMonthMemberubs:UBSAGMember2022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:USAndGermanPensionPlansMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:InterestRateSwapContractMember2022-12-310001610520ubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:TopOfRangeMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ubs:FinancialAdvisorCompensationCashPaymentsMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SegmentAMMember2022-12-310001610520ubs:UBSAGMemberubs:DeferredContingentCapitalPlanMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:SegmentPCBMember2021-12-310001610520ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMemberubs:UBSAGMember2021-12-310001610520ifrs-full:PlanAssetsMemberubs:PensionPlansMember2020-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UBSAGMemberubs:SwissPensionPlanMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:DomesticRealEstateAndPropertyMember2021-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ActuarialAssumptionOfInterestCreditRateMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:USAndGermanPensionPlansMember2022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:PensionPlansMember2020-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ubs:InternalCreditGrades0To1Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMemberubs:LoanPriceEquivalentMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:UBSAGMemberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:UBSAGMemberubs:SegmentGWMExAmericasCashGeneratingUnitMember2021-12-310001610520ubs:UKPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ubs:UKPensionPlanMemberubs:ForeignBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsAAAToBBBMinusMember2021-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:SecuritisationVehiclesMemberubs:UBSAGMemberubs:DerivativeFinancialLiabilitiesMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMember2021-12-310001610520ubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:PensionPlansMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:BrokerageReceivablesMeasuredAtFairValueThroughProfitOrLossMember2021-12-310001610520ubs:InternalCreditGrades2To3Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2021-12-310001610520ubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CreditCardMember2022-12-310001610520ifrs-full:InterestRateSwapContractMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:LoanCommitmentsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2022-12-310001610520ubs:EquityOwnershipPlanMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ubs:FundOwnershipPlanMember2021-01-012021-12-310001610520ifrs-full:CurrencyRiskMemberubs:SegmentPCBMember2022-12-310001610520ubs:UBSAGMemberubs:CompensationPerformanceYearMemberubs:DeferredCompensationAwardsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:InterestRateContractsNetMemberubs:HistoricalVolatilityForInterestRatesMeasurementInputMember2022-12-310001610520ubs:UBSAGMemberubs:SegmentGFMember2021-01-012021-12-310001610520ifrs-full:CashFlowHedgesMemberifrs-full:InterestRateRiskMemberubs:InterestRateBenchmarkReformExceptionsEffectOnCashFlowHedgesMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:MinusFivePercentMemberubs:HousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2022-12-310001610520ifrs-full:HistoricalVolatilityForSharesMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:EquityIndexContractsNetMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:FinancialAssetsAtFairValueMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberifrs-full:FinancialGuaranteeContractsMember2021-12-310001610520ubs:UBSAGMemberubs:GlobalMember2022-12-310001610520ubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:SICRPDLayerMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:TopOfRangeMemberubs:CorporateAndMunicipalBondsMemberubs:BondPriceEquivalentMeasurementInputMember2021-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:SICRWatchListMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:SegmentGWMAmericasCashGeneratingUnitMember2021-12-310001610520ubs:UBSAGMemberubs:RepurchaseAgreementLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ubs:UKPensionPlanMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ubs:OtherCreditLinesSubjectToExpectedCreditLossMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ubs:UBSAGMemberubs:JPYCurrencyExchangeRateMember2020-01-012020-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UKPensionPlanMember2020-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:SegmentGFMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ubs:UBSFinancialServicesIncSubsidiariesMember2022-01-012022-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMemberubs:UBSAGMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FairValueHedgesMemberifrs-full:InterestRateRiskMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignRealEstateAndPropertyMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:InterestRateBasisPointSensitivityMemberubs:MinusHalfPercentMember2022-01-012022-12-310001610520ubs:UBSAGMember2019-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignRealEstateInvestmentFundsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsAAAToBBBMinusMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:OtherInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-12-310001610520ubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ubs:UKPensionPlanMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCashPaymentsMember2020-01-012020-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades4To5Memberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ActuarialAssumptionOfInterestCreditRateMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:FinancialAssetsAtFairValueHeldForTradingDebtInstrumentsMemberMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticRealEstateAndPropertyMember2022-12-310001610520ubs:FinancialAdvisorCompensationCommitmentsMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:EquityIndexContractsNetMemberubs:EquityDividendYieldsMeasurementInputMember2021-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMemberubs:UBSAGMember2022-12-310001610520ifrs-full:ReserveOfExchangeDifferencesOnTranslationMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LandAndBuildingsAndEquipmentMember2022-01-012022-12-310001610520ifrs-full:ReserveOfExchangeDifferencesOnTranslationMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMember2021-01-012021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:ComputerSoftwareMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSSecuritiesLLCSubsidiariesMember2022-12-310001610520ifrs-full:InterestRateRiskMemberubs:SegmentPCBMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:FairValueHedgesMember2022-12-310001610520ifrs-full:CorporateLoansMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:InvestmentFundsMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:OtherInvestmentsMember2021-12-310001610520ubs:UBSAGMemberubs:ClientVehiclesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ubs:FundOwnershipPlanMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:DerivativeFinancialLiabilitiesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-01-012022-12-310001610520ubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMemberubs:BondPriceEquivalentMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:UBSAGMemberubs:GoodsOrServicesTransferredOnPerformancebasedBasisMember2020-01-012020-12-310001610520ifrs-full:EquityMemberifrs-full:WeightedAverageMemberubs:MinusTenPercentMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:OverTheCounterDerivativeLiabilitiesMember2022-01-012022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:FairValueHedgesMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:PensionPlansMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ubs:SevereDownsideScenarioMemberubs:HousePriceIndexMemberubs:MinusTwoAndAHalfPercentMember2022-01-012022-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:SwissPensionPlanMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMember2020-01-012020-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:SwissPensionPlanMember2022-12-310001610520ifrs-full:WeightedAverageMember2021-12-310001610520ubs:UBSAGMemberubs:EquityOwnershipPlanMember2020-01-012020-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2021-12-310001610520ubs:CashPerformanceAwardsMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:UBSAGMemberubs:LongTermNotesAndDebenturesIssuedMember2021-01-012021-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCommitmentsMember2021-01-012021-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-12-310001610520ubs:UBSAGMemberubs:PerformanceAwardsMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:FinancialAssetsAtFairValueMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:FinancialAssetsMeasuredAtFairValueMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:LoanCommitmentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMember2021-12-310001610520ubs:FinancialAdvisorCompensationMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ubs:NotesAndDebenturesIssuedMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:ReverseRepurchaseAgreementAssetsAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionMember2021-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ubs:DerivativeFinancialLiabilitiesMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:CreditDerivativeContractsNetMemberubs:BondPriceEquivalentMeasurementInputMember2021-12-310001610520ifrs-full:EquityMemberubs:BaselineScenarioMemberubs:MinusFivePercentMember2022-01-012022-12-310001610520ubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ifrs-full:WeightedAverageMemberubs:GrossDomesticProductMemberubs:MinusTwoPercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:OtherInvestmentFundsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:DomesticRealEstateInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ifrs-full:NoncontrollingInterestsMemberubs:UBSAGMember2020-12-310001610520ubs:SwissPensionPlanMember2021-01-012021-12-310001610520ubs:UKPensionPlanMemberubs:ActuarialAssumptionOfInterestCreditRateMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UKPensionPlanMember2021-12-310001610520ifrs-full:PlanAssetsMemberubs:SwissPensionPlanMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:WeightedAverageMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:GoodsOrServicesTransferredAtPointInTimeMemberubs:UBSAGMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMemberubs:FundingSpreadMeasurementInputMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:HistoricalVolatilityForSharesMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:EquityIndexContractsNetMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:FairValueHedgesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:HedgesOfNetInvestmentInForeignOperationsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ubs:OtherDefinedBenefitPlansMember2021-12-310001610520ifrs-full:CorporateLoansMemberubs:ModerateDownsideScenarioMemberMember2022-12-310001610520ubs:UBSAGMemberubs:OtherClientCounterpartiesMemberubs:ModerateDownsideScenarioMemberMember2022-12-310001610520ifrs-full:ReserveOfCashFlowHedgesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:InterestRateRiskMemberubs:SegmentAMMember2021-12-310001610520ubs:UBSAGMemberubs:IntragroupFundingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ubs:EMEAMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ubs:SegmentGFMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ubs:SegmentNonSwissMember2021-01-012021-12-310001610520ubs:SwissPensionPlanMemberubs:ActuarialAssumptionOfInterestCreditRateMember2021-12-310001610520ubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:NotesAndDebenturesIssuedMember2020-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UKPensionPlanMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:InvestmentFundsMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:CurrencyRiskMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:EMEAMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:TemporaryDifferenceRelatedToRealEstateCapitalizedForUSTaxPurposesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMember2021-01-012021-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMember2020-01-012020-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:UBSAGMemberubs:CompensationPerformanceYearMemberubs:LongTermIncentivePlanMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:NotesAndDebenturesIssuedMember2022-01-012022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:TopOfRangeMemberubs:CorporateAndMunicipalBondsMemberubs:BondPriceEquivalentMeasurementInputMember2022-12-310001610520ubs:UBSAGMemberubs:DeferredContingentCapitalPlanMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMember2022-12-310001610520ifrs-full:SecuritisationVehiclesMemberubs:DerivativeFinancialLiabilitiesMember2021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ActuarialAssumptionOfInterestCreditRateMember2021-12-310001610520ubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValueBankAccountsAtUBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:InterestRateContractsNetMemberubs:HistoricalVolatilityForInterestRatesMeasurementInputMember2021-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:PensionPlansMember2021-01-012021-12-310001610520ubs:OtherDefinedBenefitPlansMember2021-01-012021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsAAAToBBBMinusMember2021-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-12-310001610520ubs:UBSAGMemberubs:CashPerformanceAwardsMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ifrs-full:InvestmentFundsMemberubs:UBSAGMember2021-12-310001610520ubs:FinancialAdvisorCompensationMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanUBSAGDebtInstrumentsMember2022-12-310001610520ubs:DerivativeFinancialAssetsMemberubs:ClientVehiclesMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMember2021-12-310001610520ubs:FinancialAdvisorCompensationCashPaymentsMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ubs:FinancialAdvisorCompensationCashPaymentsMember2022-01-012022-12-310001610520ifrs-full:InterestRateRiskMemberubs:SegmentIBMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:AssumptionOfLifeExpectancyMember2022-12-310001610520ubs:EquityOwnershipPlanMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:LoanCommitmentsMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberubs:MarketComparableAndSecuritizationModelMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:SegmentIBMember2022-12-310001610520ubs:UBSAGMemberubs:LaterThanTenYearsAndNotLaterThanTwentyYearsMember2021-12-310001610520ubs:PerformanceAwardsMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:NoncontrollingInterestsMemberubs:UBSAGMember2020-01-012020-12-310001610520ifrs-full:OtherReservesMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:NoncontrollingInterestsMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMember2021-01-012021-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ifrs-full:InterestRateRiskMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:CashFlowHedgesMemberifrs-full:InterestRateRiskMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:MarketComparableAndSecuritizationModelMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-12-310001610520ifrs-full:FairValueHedgesMemberifrs-full:InterestRateRiskMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:InterestRateBasisPointSensitivityMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMember2021-12-310001610520ubs:USAndGermanPensionPlansMemberubs:AssumptionOfLifeExpectancyMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CreditCardMember2022-12-310001610520ubs:SevereDownsideScenarioMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:TopOfRangeMemberubs:UBSAGMember2022-12-310001610520ubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMember2021-01-012021-12-310001610520ubs:SegmentGWMMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:SegmentPCBMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryDebtInstrumentsMemberMember2022-12-310001610520ifrs-full:InterestRateRiskMemberubs:SegmentPCBMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades4To5Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ubs:UBSAGMemberubs:LongTermNotesAndDebenturesIssuedMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ubs:UBSAGMemberubs:ShortTermNotesAndDebenturesIssuedMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:InvestmentFundsMemberubs:UBSAGMemberubs:DerivativeFinancialAssetsMember2021-12-310001610520ubs:SegmentNonSwissMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:DeferredContingentCapitalPlanMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCommitmentsMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ubs:CashPerformanceAwardsMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:EMEAMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ubs:GlobalMember2021-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UKPensionPlanMember2021-01-012021-12-310001610520ubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMember2022-01-012022-12-310001610520ubs:SwissPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:InvestmentFundsMemberubs:DerivativeFinancialAssetsMember2021-12-310001610520ubs:DerivativeFinancialAssetsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:OtherInvestmentFundsMember2021-12-310001610520ubs:SwissPensionPlanMemberubs:DomesticRealEstateAndPropertyMember2021-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberubs:UBSAGMemberubs:ClientVehiclesMember2021-12-310001610520ubs:SegmentSwissMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:SegmentIBMemberubs:CreditSpreadRiskMember2021-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UKPensionPlanMember2020-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:TopOfRangeMemberubs:UBSAGMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberubs:SegmentIBMember2022-12-310001610520ubs:PerformanceAwardsMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:MarketComparableAndSecuritizationModelMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-12-310001610520ifrs-full:OtherReservesMemberubs:UBSAGMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:SegmentAMMember2020-01-012020-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMember2021-12-310001610520ifrs-full:ComputerSoftwareMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2022-12-310001610520ubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:MinusOnePercentMember2022-01-012022-12-310001610520ubs:LongTermIncentivePlanMember2021-01-012021-12-310001610520ubs:InternalCreditGrades9To13Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FairValueHedgesMemberifrs-full:InterestRateRiskMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMemberubs:SICRWatchListMember2022-12-310001610520ifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:CreditDerivativeContractsNetMemberubs:BondPriceEquivalentMeasurementInputMember2021-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:SICRPDLayerMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsNetMemberubs:BondPriceEquivalentMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMember2022-12-310001610520ubs:SegmentAMMemberubs:CreditSpreadRiskMember2022-12-310001610520ubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ubs:UKPensionPlanMemberubs:ForeignRealEstateInvestmentFundsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsBelowBBBMinusMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ubs:USAndGermanPensionPlansMemberubs:DomesticBondsAAAToBBBMinusMember2021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsAAAToBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsAAAToBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCashPaymentsMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticRealEstateInvestmentFundsMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ubs:UBSAGMemberubs:UBSFinancialServicesIncSubsidiariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ubs:UBSAGMemberubs:SegmentNonSwissMember2020-01-012020-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:PensionPlansMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:SegmentGFMember2021-12-310001610520ubs:EquityOwnershipPlanMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMemberubs:UBSAGMember2020-01-012020-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:ModerateDownsideScenarioMemberMember2022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:MinusHalfPercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:PlusFivePercentMemberubs:HousePriceIndexMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-01-012021-12-310001610520ubs:AuctionRateSecuritiesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSMonacoSASubsidiariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:InternalCreditGrades4To5Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2021-12-310001610520ubs:UBSAmericasHoldingLLCSubsidiariesMember2022-12-310001610520ubs:UBSAGMemberubs:LongTermIncentivePlanMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:PlanAssetsMemberubs:UKPensionPlanMember2022-12-310001610520ubs:EquityOwnershipPlanMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ifrs-full:EquityPriceRiskMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:SegmentPCBMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ubs:CompensationPerformanceYearMemberubs:FundOwnershipPlanMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberubs:UBSAGMemberubs:ClientVehiclesMember2022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:MarketComparableAndSecuritizationModelMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsBelowBBBMinusMember2022-12-310001610520ubs:PensionPlansMember2021-01-012021-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMemberubs:SegmentGFMember2021-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:UBSAGMemberubs:TemporaryDifferenceRelatedToRealEstateCapitalizedForUSTaxPurposesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:GrossCarryingAmountMember2022-12-310001610520ubs:UBSAGMemberubs:IncreaseDecreaseDueToModificationOfDeferredCompensationAwardsMember2020-01-012020-12-310001610520ifrs-full:ReserveOfExchangeDifferencesOnTranslationMemberubs:UBSAGMember2020-01-012020-12-310001610520ifrs-full:ReserveOfCashFlowHedgesMemberubs:UBSAGMember2020-12-310001610520ifrs-full:NoncontrollingInterestsMemberubs:UBSAGMember2021-01-012021-12-310001610520ubs:SwissPensionPlanMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:OtherClientCounterpartiesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ubs:USAndGermanPensionPlansMemberubs:AssumptionOfLifeExpectancyMember2021-12-310001610520ubs:UBSAGMemberubs:SegmentIBMember2020-01-012020-12-310001610520ubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticRealEstateInvestmentFundsMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:ActuarialAssumptionOfInterestCreditRateMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:CompensationPerformanceYearMemberubs:DeferredCompensationAwardsMember2021-01-012021-12-310001610520ifrs-full:BottomOfRangeMemberubs:SegmentGFMember2022-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:SegmentGFMember2022-12-310001610520ubs:CompensationPerformanceYearMemberubs:FundOwnershipPlanMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:UBSAmericasHoldingLLCSubsidiariesMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMemberubs:SegmentGFMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:SegmentPCBMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ubs:EMEAMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:MortgagesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ubs:CompensationPerformanceYearMemberubs:FundOwnershipPlanMember2022-01-012022-12-310001610520ubs:GBPCurrencyExchangeRateMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ubs:UBSAGMemberubs:CHFCurrencyExchangeRateMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:SecuritisationVehiclesMember2021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberubs:UBSAGMemberubs:ClientVehiclesMember2021-12-310001610520ubs:CashPerformanceAwardsMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationMember2021-01-012021-12-310001610520ifrs-full:WeightedAverageMember2022-01-012022-12-310001610520ubs:SegmentIBMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMember2022-12-310001610520ubs:UKPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsAAAToBBBMinusMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:MinusHalfPercentMember2022-01-012022-12-310001610520ubs:UBSAmericasHoldingLLCSubsidiariesMember2022-01-012022-12-310001610520ubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ubs:UBSAGMemberubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ubs:UBSAGMemberubs:CashPerformanceAwardsMember2021-01-012021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:SwissPensionPlanMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGradesDefaultedMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ubs:UKPensionPlanMemberubs:AssumptionOfLifeExpectancyMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UKPensionPlanMember2022-12-310001610520ubs:ShortTermNotesAndDebenturesIssuedMember2021-01-012021-12-310001610520ifrs-full:WeightedAverageMemberubs:SegmentGWMMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMember2021-01-012021-12-310001610520ubs:UBSEuropeSESubsidiariesMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ifrs-full:BottomOfRangeMemberubs:UBSAGMemberubs:CreditSpreadRiskMember2022-12-310001610520ubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ubs:UBSAGMemberubs:CashPerformanceAwardsMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ifrs-full:DiscountRateMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:CorporateAndMunicipalBondsMember2022-12-310001610520ubs:UBSAGMemberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:FairValueHedgesMember2021-01-012021-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:InterestRateBasisPointSensitivityMemberubs:PlusHalfPercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:OtherInvestmentsMember2022-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:CHFCurrencyExchangeRateMember2020-01-012020-12-310001610520ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ubs:EMEAMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ubs:UBSAGMemberubs:DerivativeFinancialLiabilitiesMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:EquityOwnershipPlanMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ifrs-full:SecuritisationVehiclesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2020-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:CreditSpreadRiskMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ubs:GBPCurrencyExchangeRateMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:CompensationPriorYearsMemberubs:LongTermIncentivePlanMember2022-01-012022-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:UKPensionPlanMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMemberubs:SegmentPCBMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:WeightedAverageMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-12-310001610520ubs:LaterThanTenYearsAndNotLaterThanTwentyYearsMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2022-12-310001610520ubs:ShortTermNotesAndDebenturesIssuedMember2022-12-310001610520ubs:CreditSpreadRiskMemberubs:SegmentGFMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMemberubs:FundingSpreadMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:EquityIndexContractsNetMemberubs:EquityToFXCorrelationMeasurementInputMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberubs:CorporateAndMunicipalBondsMemberubs:BondPriceEquivalentMeasurementInputMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ubs:UBSAGMemberubs:DeferredContingentCapitalPlanMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:DomesticRealEstateAndPropertyMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ubs:CashCollateralPayablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMember2022-01-012022-12-310001610520ubs:CreditSpreadRiskMember2022-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:UBSAGMemberubs:SegmentGFMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:HistoricalVolatilityForSharesMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:EquityIndexContractsNetMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMember2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:SwissPensionPlanMember2021-01-012021-12-310001610520ifrs-full:BottomOfRangeMemberubs:UBSAGMember2022-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:UBSAGMemberubs:TemporaryDifferenceRelatedToRealEstateCapitalizedForUSTaxPurposesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:WeightedAverageMember2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:HedgesOfNetInvestmentInForeignOperationsMember2021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMember2021-01-012021-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:UBSAGMemberubs:PensionPlansMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:TopOfRangeMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMemberubs:LoanPriceEquivalentMeasurementInputMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:SegmentGFMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:MinusTwoPercentMember2022-01-012022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ubs:UKPensionPlanMemberubs:OtherInvestmentsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:OtherInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:OtherInvestmentsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticRealEstateInvestmentFundsMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ubs:FinancialAdvisorCompensationCashPaymentsMember2021-01-012021-12-310001610520ubs:FinancialAdvisorCompensationCommitmentsMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades0To1Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ubs:UBSAGMemberubs:OverTheCounterDerivativeLiabilitiesMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:EquityMemberifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:MinusFivePercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:PensionPlansMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2021-01-012021-12-310001610520ifrs-full:EquityPriceRiskMemberubs:SegmentIBMember2021-12-310001610520ubs:UBSAGMemberubs:FinancialAssetsAtFairValueHeldforTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueRelatedToThoseInExchangeForCashReceivedMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:MinusFivePercentMemberubs:HousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ubs:FinancialAdvisorCompensationMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ifrs-full:EquityPriceRiskMemberubs:SegmentGWMMember2022-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:PensionPlansMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:USAndGermanPensionPlansMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommodityTradeFinanceMember2022-12-310001610520ubs:UBSAGMemberubs:UBSEuropeSESubsidiariesMember2022-01-012022-12-310001610520ubs:UBSAGSubsidiariesMember2022-12-310001610520ifrs-full:BottomOfRangeMemberubs:SegmentGWMMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:OtherInvestmentFundsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:UBSAGMemberubs:UBSBankUSASubsidiariesMember2022-01-012022-12-310001610520ubs:SmallMediumEnterpriseMemberubs:ModerateDownsideScenarioMemberMember2022-12-310001610520ubs:UBSAGMemberubs:OtherClientCounterpartiesMemberubs:LifetimeWeightedAverageMember2022-12-310001610520ubs:UBSAGMemberubs:EquityIndexContractsNetMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:UBSAssetManagementSwitzerlandAGSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:DerivativeFinancialLiabilitiesMemberubs:ClientVehiclesMember2022-12-310001610520ubs:DerivativeFinancialLiabilitiesMember2022-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:HedgesOfNetInvestmentInForeignOperationsMember2022-01-012022-12-310001610520ifrs-full:CashFlowHedgesMemberifrs-full:InterestRateRiskMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:InvestmentFundsMember2022-12-310001610520ubs:FinancialAdvisorCompensationMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-12-310001610520ifrs-full:InterestRateRiskMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ModelAndMethodologyChangesMember2022-01-012022-12-310001610520ubs:ReverseRepurchaseAgreementAssetsAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMember2022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:SwissPensionPlanMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:PlusFivePercentMemberubs:HousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades2To3Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:WeightedAverageMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMemberubs:LoanPriceEquivalentMeasurementInputMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:SecuritisationVehiclesMember2022-12-310001610520ifrs-full:InvestmentFundsMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UBSAGMemberubs:UKPensionPlanMember2021-12-310001610520ifrs-full:SecuritisationVehiclesMemberubs:UBSAGMember2021-12-310001610520ubs:PerformanceAwardsMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:EquityMemberubs:SevereDownsideScenarioMemberubs:PlusTenPercentMember2022-01-012022-12-310001610520ifrs-full:InvestmentFundsMemberifrs-full:Level3OfFairValueHierarchyMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:GoodsOrServicesTransferredOnPerformancebasedBasisMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2022-12-3100016105202019-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:CurrencySwapContractMember2022-12-310001610520ifrs-full:InvestmentFundsMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:DomesticRealEstateAndPropertyMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:OtherInvestmentsMember2022-12-310001610520ifrs-full:CurrencyRiskMemberubs:SegmentIBMember2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:PensionPlansMember2020-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:EquityIndexContractsNetMemberubs:EquityDividendYieldsMeasurementInputMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentFundsMember2021-12-310001610520ubs:OtherDefinedBenefitPlansMember2022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:OtherInvestmentFundsMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:InvestmentFundsMemberifrs-full:Level3OfFairValueHierarchyMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ubs:JPYCurrencyExchangeRateMember2020-01-012020-12-310001610520ubs:CompensationPerformanceYearMemberubs:LongTermIncentivePlanMember2022-01-012022-12-310001610520ifrs-full:CashFlowHedgesMemberifrs-full:InterestRateRiskMemberubs:UBSAGMember2022-12-310001610520ifrs-full:EquityMemberifrs-full:WeightedAverageMemberubs:PlusTenPercentMember2022-01-012022-12-310001610520ifrs-full:CashFlowHedgesMemberifrs-full:InterestRateRiskMemberubs:InterestRateBenchmarkReformExceptionsEffectOnCashFlowHedgesMember2022-12-310001610520ubs:InternalCreditGrades9To13Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:MarketComparableAndSecuritizationModelMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-12-310001610520ubs:UBSAGMemberubs:SegmentGWMAmericasCashGeneratingUnitMember2022-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMember2022-01-012022-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberubs:LandAndBuildingsAndEquipmentMember2022-01-012022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:OtherInvestmentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ubs:UBSAGMemberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMemberubs:FundingSpreadMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades9To13Memberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UKPensionPlanMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMemberubs:UBSAGMember2022-12-310001610520ifrs-full:ComputerSoftwareMemberifrs-full:GrossCarryingAmountMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:BottomOfRangeMemberubs:SegmentGWMMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2021-12-310001610520ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:AssumptionOfLifeExpectancyMember2021-12-310001610520ubs:FinancialAdvisorCompensationCashPaymentsMember2020-01-012020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:PlanAssetsMemberubs:SwissPensionPlanMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades6To8Memberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:RightofuseAssetsMember2022-01-012022-12-310001610520ubs:USAndGermanPensionPlansMember2022-01-012022-12-310001610520ubs:UKPensionPlanMemberubs:DomesticBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticRealEstateInvestmentFundsMember2021-12-310001610520ubs:OtherDefinedBenefitPlansMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:InterestRateSwapContractMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2021-12-310001610520ubs:OtherClientCounterpartiesMemberubs:LifetimeWeightedAverageMember2022-12-310001610520ubs:SmallMediumEnterpriseMemberubs:SevereDownsideScenarioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMember2020-12-310001610520ubs:UBSAGMemberubs:LongTermNotesAndDebenturesIssuedMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberubs:CorporateAndMunicipalBondsMemberubs:BondPriceEquivalentMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:GBPCurrencyExchangeRateMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMemberubs:LoanPriceEquivalentMeasurementInputMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:NoncontrollingInterestsMember2022-01-012022-12-310001610520ifrs-full:InvestmentFundsMemberubs:DerivativeFinancialLiabilitiesMember2022-12-310001610520ubs:LongTermNotesAndDebenturesIssuedMember2022-01-012022-12-310001610520ubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ForeignBondsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsAAAToBBBMinusMember2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticBondsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignRealEstateInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:DomesticRealEstateInvestmentFundsMember2021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:OtherInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentFundsMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:CompensationPerformanceYearMemberubs:LongTermIncentivePlanMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:OtherInvestmentsMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:OtherInvestmentFundsMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ubs:SegmentIBMember2021-01-012021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:DomesticRealEstateAndPropertyMember2022-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:HousePriceIndexMemberubs:MinusTwoAndAHalfPercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCashPaymentsMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanFiveYearsMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:SICRWatchListMember2022-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMember2022-12-310001610520ubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FairValueHedgesMemberifrs-full:InterestRateRiskMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:CashFlowHedgesMemberifrs-full:InterestRateRiskMemberubs:UBSAGMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ubs:InternalCreditGrades6To8Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:SICRPDLayerMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMember2021-12-310001610520ubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:MortgagesMemberubs:UBSAGMemberubs:SevereDownsideScenarioMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:AssumptionOfLifeExpectancyMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:EquityIndexContractsNetMemberubs:EquityToFXCorrelationMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:UBSAGMemberubs:EquityIndexContractsNetMemberubs:EquityToEquityCorrelationMeasurementInputMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ubs:CHFCurrencyExchangeRateMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:CashFlowHedgesMemberifrs-full:InterestRateRiskMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SICRPDLayerMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:HistoricalVolatilityForSharesMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:EquityIndexContractsNetMember2022-12-310001610520ubs:RealEstateLoanMemberubs:SevereDownsideScenarioMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsNetMember2021-12-310001610520ubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:PlusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:FairValueHedgesMemberifrs-full:InterestRateRiskMemberubs:UBSAGMember2022-12-310001610520ubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ubs:LifetimeWeightedAverageMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:SwissPensionPlanMember2021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValueBankAccountsAtUBSAGMember2021-12-310001610520ubs:SegmentGWMMember2021-01-012021-12-310001610520ubs:CashPerformanceAwardsMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:MortgagesMemberifrs-full:WeightedAverageMember2022-12-310001610520ubs:CompensationPriorYearsMemberubs:LongTermIncentivePlanMember2021-01-012021-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanFiveYearsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:MortgagesMemberubs:SevereDownsideScenarioMember2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ubs:InternalCreditGrades2To3Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:InterestRateBasisPointSensitivityMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSSwitzerlandAGSubsidiariesMember2022-12-310001610520ubs:RealEstateLoanMemberubs:ModerateDownsideScenarioMemberMember2022-12-310001610520ubs:UBSAGMemberubs:UpsideScenarioMember2022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:OtherClientCounterpartiesMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValueBankAccountsAtUBSAGMember2022-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMember2022-12-310001610520ubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CreditCardMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMember2020-01-012020-12-310001610520ifrs-full:CurrencyRiskMember2022-12-310001610520ubs:UBSAGMemberubs:EquityOwnershipPlanMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ubs:FinancialAdvisorCompensationMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMemberubs:UBSAGMember2020-12-310001610520ifrs-full:ComputerSoftwareMemberifrs-full:GrossCarryingAmountMember2022-01-012022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:DomesticBondsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:ProjectsInProgressMember2022-01-012022-12-310001610520ubs:DeferredContingentCapitalPlanMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ubs:CompensationPriorYearsMemberubs:LongTermIncentivePlanMember2020-01-012020-12-310001610520ifrs-full:TopOfRangeMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignRealEstateInvestmentFundsMember2021-12-310001610520ubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ubs:UKPensionPlanMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticBondsAAAToBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:SevereDownsideScenarioMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:InvestmentFundsMemberubs:UBSAGMemberubs:DerivativeFinancialLiabilitiesMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:UBSEuropeSESubsidiariesMember2022-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-01-012022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:OtherClientCounterpartiesMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentFundsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticRealEstateInvestmentFundsMember2021-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:AssumptionOfLifeExpectancyMember2021-12-310001610520ifrs-full:NoncontrollingInterestsMember2020-01-012020-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:PensionPlansMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:FinancialAssetsOffBalanceSheetMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:SegmentGWMMember2022-12-310001610520ubs:EURCurrencyExchangeRateMember2021-01-012021-12-310001610520ifrs-full:UnusedTaxLossesMemberubs:UBSAGMember2022-12-310001610520ubs:FinancialAdvisorCompensationCommitmentsMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ubs:SegmentAMMember2021-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-12-310001610520ubs:FinancialAdvisorCompensationCashPaymentsMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UBSAGMemberubs:UKPensionPlanMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:SecuritisationVehiclesMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanDerivativeInstrumentsUbsAgCounterpartyMember2021-12-310001610520ubs:UBSAGMemberubs:CompensationPerformanceYearMemberubs:FundOwnershipPlanMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:RealEstateLoanMemberubs:BaselineScenarioMember2022-12-310001610520ifrs-full:GrossCarryingAmountMember2021-12-310001610520ifrs-full:BottomOfRangeMemberubs:UBSAGMemberubs:SegmentIBMember2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:PensionPlansMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:SegmentGWMExAmericasCashGeneratingUnitMember2022-12-310001610520ubs:UKPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMember2021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:PensionPlansMember2022-12-310001610520ifrs-full:BottomOfRangeMemberubs:UBSAGMemberubs:SegmentIBMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMemberubs:SegmentAMMember2021-12-310001610520ubs:SwissPensionPlanMemberubs:OtherInvestmentsMember2022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMember2022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:MinusOnePercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:HousePriceIndexMemberubs:PlusTwoAndAHalfPercentMember2022-01-012022-12-310001610520ifrs-full:CurrencyRiskMember2022-01-012022-12-310001610520ubs:UBSBusinessSolutionsAGSubsidiariesMember2022-12-310001610520ubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:SecuritisationVehiclesMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:InterestRateRiskMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMemberubs:LoanPriceEquivalentMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:EquityMemberifrs-full:WeightedAverageMemberubs:MinusFivePercentMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:HistoricalVolatilityForSharesMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:EquityIndexContractsNetMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMemberubs:LoanPriceEquivalentMeasurementInputMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:MortgagesMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:UBSAGMemberubs:ShortTermNotesAndDebenturesIssuedMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:USAndGermanPensionPlansMember2021-12-310001610520ubs:UBSSwitzerlandAGSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:FinancialAssetsAtFairValueHeldForTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAssetsAtFairValueNotHeldForTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueMember2021-12-310001610520ubs:UBSAGMemberubs:CompensationPerformanceYearMemberubs:FundOwnershipPlanMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMember2021-01-012021-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UBSAGMemberubs:UKPensionPlanMember2021-01-012021-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:SwissPensionPlanMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberubs:SegmentGWMMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticRealEstateAndPropertyMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ubs:LongTermNotesAndDebenturesIssuedMember2022-12-310001610520ubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ifrs-full:WeightedAverageMemberubs:SegmentGWMMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:EquityPriceRiskMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:InvestmentFundsMemberubs:DerivativeFinancialLiabilitiesMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:SegmentAMMember2021-12-310001610520ubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:WeightedAverageMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:DeferredContingentCapitalPlanMember2020-01-012020-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryDebtInstrumentsMemberMember2021-12-310001610520ubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:SegmentIBMember2022-12-310001610520ifrs-full:BottomOfRangeMemberubs:UBSAGMemberubs:SegmentGWMMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ubs:SegmentIBMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCashPaymentsMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:SwissPensionPlanMember2020-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades4To5Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ubs:EquityOwnershipPlanMember2020-01-012020-12-310001610520ubs:UBSBusinessSolutionsAGSubsidiariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:PensionPlansMember2022-12-310001610520ifrs-full:TopOfRangeMemberubs:SegmentIBMember2022-12-310001610520ubs:CompensationPriorYearsMemberubs:DeferredCompensationAwardsMember2022-01-012022-12-310001610520ubs:FinancialAdvisorCompensationMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SegmentGWMMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ubs:UBSAGMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:UKPensionPlanMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMemberubs:UBSAGMember2020-12-310001610520ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:NotLaterThanOneMonthMemberubs:UBSAGMember2021-12-310001610520ubs:UBSAGMemberubs:PensionPlansMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2022-01-012022-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:WeightedAverageMemberubs:UBSAGMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ubs:SegmentAMMember2020-01-012020-12-310001610520ubs:CreditSpreadRiskMemberubs:SegmentGWMMember2022-12-310001610520ifrs-full:EquityPriceRiskMember2021-01-012021-12-310001610520ubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanDerivativeInstrumentsUbsAgCounterpartyMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:TopOfRangeMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades6To8Memberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:WeightedAverageMember2022-12-310001610520ifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:SegmentGFMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ubs:OtherCreditLinesSubjectToExpectedCreditLossMember2021-12-310001610520ifrs-full:EquityMemberubs:SevereDownsideScenarioMemberubs:PlusFivePercentMember2022-01-012022-12-310001610520ubs:BaselineScenarioMemberubs:HousePriceIndexMemberubs:PlusTwoAndAHalfPercentMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMemberubs:LoanPriceEquivalentMeasurementInputMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:SegmentGFMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:BottomOfRangeMemberubs:SegmentAMMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:TopOfRangeMemberubs:UBSAGMember2021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:PensionPlansMember2021-12-310001610520ubs:UBSAGMemberubs:NotesAndDebenturesIssuedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:SecuritisationVehiclesMemberubs:DerivativeFinancialLiabilitiesMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberubs:UBSAGMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:NotTimeSpecificMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:EquityIndexContractsNetMemberubs:EquityToFXCorrelationMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:ProjectsInProgressMember2021-12-310001610520ubs:UBSAGMemberubs:SegmentPCBMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:GlobalMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAssetsAtFairValueHeldforTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueRelatedToThoseInExchangeForSecuritiesReceivedMember2021-12-310001610520ubs:CompensationPriorYearsMemberubs:FundOwnershipPlanMember2020-01-012020-12-310001610520ubs:SegmentPCBMemberubs:CreditSpreadRiskMember2022-12-310001610520ubs:UBSAGMemberubs:DeferredCompensationAwardsMember2021-01-012021-12-310001610520ifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:SegmentGWMMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ubs:FinancialAdvisorCompensationMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ubs:PensionPlansMember2022-12-310001610520ubs:UBSAGMemberubs:RealEstateLoanMemberubs:UpsideScenarioMember2022-12-310001610520ubs:UBSAGMemberubs:UpsideScenarioMemberubs:OtherClientCounterpartiesMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:DiscountRateMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:OtherInvestmentsMember2022-12-310001610520ubs:UBSSecuritiesLLCSubsidiariesMember2022-12-310001610520ubs:UBSSecuritiesLLCSubsidiariesMember2022-01-012022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:SwissPensionPlanMember2020-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:SwissPensionPlanMember2020-12-310001610520ubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:UnusedTaxLossesMember2022-12-310001610520ubs:UBSAGMemberubs:DerivativeFinancialAssetsMemberubs:ClientVehiclesMember2021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanPropertiesOccupiedByUbsMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:SecuritisationVehiclesMemberubs:UBSAGMember2021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMember2020-01-012020-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:WeightedAverageMemberubs:UBSAGMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ubs:UBSAGMemberubs:EquityOwnershipPlanMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ifrs-full:PlanAssetsMemberubs:UKPensionPlanMember2020-12-310001610520ubs:ClientVehiclesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ubs:SegmentPCBMember2021-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:PensionPlansMember2021-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:SegmentIBMember2021-12-310001610520ifrs-full:TopOfRangeMemberubs:SegmentPCBMember2021-12-310001610520ubs:ClientVehiclesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMemberubs:SegmentGWMMember2021-12-310001610520ubs:UBSAGMemberubs:FinancialAssetsAtFairValueHeldforTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueRelatedToOtherTransfersMember2021-12-310001610520ubs:UBSAGMemberubs:FundOwnershipPlanMember2020-01-012020-12-310001610520ifrs-full:TemporaryDifferenceMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCommitmentsMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:InterestRateRiskMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:BottomOfRangeMemberubs:UBSAGMemberubs:SegmentGWMMember2022-12-310001610520ifrs-full:BottomOfRangeMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMember2021-12-310001610520ubs:CashPerformanceAwardsMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ubs:DeferredCompensationAwardsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SegmentAMMemberubs:CreditSpreadRiskMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:DeferredContingentCapitalPlanMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMemberubs:SegmentGWMMember2021-12-310001610520ubs:CashPerformanceAwardsMember2020-01-012020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:SecuritisationVehiclesMember2021-12-310001610520ubs:CompensationPriorYearsMemberubs:DeferredCompensationAwardsMember2020-01-012020-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:TopOfRangeMember2022-12-310001610520ifrs-full:InvestmentFundsMemberubs:UBSAGMemberubs:DerivativeFinancialLiabilitiesMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberubs:UBSAGMember2022-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:PensionPlansMember2021-12-310001610520ifrs-full:CommodityPriceRiskMember2021-12-310001610520ubs:SegmentPCBMember2020-01-012020-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:SegmentIBMember2021-12-310001610520ubs:UBSAGMemberubs:CashPerformanceAwardsMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CommodityPriceRiskMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberubs:SegmentPCBMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:SegmentGWMMember2021-12-310001610520ifrs-full:InterestRateRiskMemberubs:SegmentGWMMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanDerivativeInstrumentsUbsAgCounterpartyMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanUBSAGDebtInstrumentsMember2022-12-310001610520ubs:CreditSpreadRiskMemberubs:SegmentGWMMember2021-12-310001610520ubs:SegmentAMMember2021-01-012021-12-310001610520ubs:SegmentPCBMemberubs:CreditSpreadRiskMember2021-12-310001610520ubs:UKPensionPlanMemberubs:AssumptionOfLifeExpectancyMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:SegmentGWMMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ubs:RealEstateLoanMemberubs:UpsideScenarioMember2022-12-310001610520ubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ubs:LongTermNotesAndDebenturesIssuedMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:InterestRateRiskMemberubs:SegmentGFMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:FinancialAdvisorCompensationCashPaymentsMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMemberubs:UBSAGMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanSecuritiesLentToUBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMember2022-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMember2021-12-310001610520ifrs-full:InterestRateRiskMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:WeightedAverageMember2021-12-310001610520ifrs-full:SecuritisationVehiclesMemberubs:DerivativeFinancialAssetsMember2022-12-310001610520ubs:SegmentGWMMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignRealEstateAndPropertyMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ubs:SegmentIBMemberubs:CreditSpreadRiskMember2021-12-310001610520ubs:UBSAGMemberubs:GBPCurrencyExchangeRateMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:TopOfRangeMemberubs:SegmentIBMember2021-12-310001610520ubs:EMEAMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CurrencyRiskMember2022-12-310001610520ifrs-full:CurrencyRiskMember2021-12-310001610520ubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:PensionPlansMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberubs:UBSAGMember2021-12-310001610520ubs:UBSAGMemberubs:ClientVehiclesMember2022-12-310001610520ifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:InterestRateRiskMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:SegmentPCBMember2021-12-310001610520ubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ubs:UBSAGMemberubs:SegmentGWMMember2021-12-310001610520ifrs-full:MortgagesMemberubs:UpsideScenarioMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:UnemploymentRateMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ifrs-full:InvestmentFundsMemberubs:DerivativeFinancialAssetsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMember2022-12-310001610520ifrs-full:TopOfRangeMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:OtherInvestmentFundsMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CommodityPriceRiskMemberubs:UBSAGMember2022-12-310001610520ifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:SegmentGWMMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ubs:UBSAGMemberubs:NotTimeSpecificMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:WeightedAverageMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ubs:OverTheCounterDerivativeLiabilitiesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:OtherInvestmentsMember2021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:PensionPlansMember2020-12-310001610520ifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:CreditSpreadRiskMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMember2021-12-310001610520ifrs-full:PlanAssetsMemberubs:SwissPensionPlanMember2020-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CommodityPriceRiskMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:CreditSpreadRiskMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades0To1Memberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades9To13Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:EquityPriceRiskMemberubs:UBSAGMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ubs:DerivativeFinancialLiabilitiesMemberubs:ClientVehiclesMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades9To13Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades0To1Memberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:BottomOfRangeMemberubs:SegmentIBMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMemberubs:SegmentGFMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:CreditDerivativeContractsNetMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ubs:UBSAGMemberubs:SegmentPCBMember2022-01-012022-12-310001610520ubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:BottomOfRangeMemberubs:UBSAGMemberubs:CreditSpreadRiskMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ubs:CHFCurrencyExchangeRateMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:PerformanceAwardsMember2021-01-012021-12-310001610520ifrs-full:BottomOfRangeMemberubs:SegmentPCBMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGradesDefaultedMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignRealEstateAndPropertyMember2021-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMemberubs:SegmentIBMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:BottomOfRangeMemberubs:SegmentGFMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:BottomOfRangeMemberubs:CreditSpreadRiskMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ubs:UBSAGMemberubs:EMEAMember2022-12-310001610520ubs:UKPensionPlanMemberubs:DomesticBondsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticRealEstateInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:GrossCarryingAmountMember2020-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades2To3Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMemberubs:UBSAGMember2020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:WeightedAverageMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsNetMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:DiscountRateMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CorporateAndMunicipalBondsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMember2021-12-310001610520ubs:InternalCreditGradesDefaultedMemberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ubs:InternalCreditGradesDefaultedMemberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2022-12-310001610520ubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:CurrencyRiskMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ubs:InternalCreditGrades0To1Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2021-12-310001610520ubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:PlusTwoPercentMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SICRWatchListMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:WeightedAverageMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:TopOfRangeMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMemberubs:LoanPriceEquivalentMeasurementInputMember2021-12-310001610520ubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:CurrencySwapContractMemberubs:UBSAGMember2022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMember2022-12-310001610520ubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:MinusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ModelAndMethodologyChangesMember2022-01-012022-12-310001610520ubs:BaselineScenarioMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UnemploymentRateMemberubs:MinusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMemberubs:BondPriceEquivalentMeasurementInputMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMemberubs:FundingSpreadMeasurementInputMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ubs:UBSFinancialServicesIncSubsidiariesMember2022-12-310001610520ubs:UBSAGMemberubs:IntragroupFundingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:PlusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:CashFlowHedgesMemberifrs-full:InterestRateRiskMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ubs:InternalCreditGrades2To3Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:WeightedAverageMemberubs:CorporateAndMunicipalBondsMemberubs:BondPriceEquivalentMeasurementInputMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:CreditCardMemberubs:SICRWatchListMember2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:MarketComparableAndSecuritizationModelMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:NotLaterThanOneMonthMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:UBSAGMemberubs:InterestRateContractsNetMemberubs:HistoricalVolatilityForInterestRatesMeasurementInputMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ubs:SegmentGFMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:InterestRateContractsNetMemberubs:HistoricalVolatilityForInterestRatesMeasurementInputMember2022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:EquityIndexContractsNetMemberubs:EquityToEquityCorrelationMeasurementInputMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ubs:UBSAGMemberubs:ModerateDownsideScenarioMemberMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:GrossDomesticProductMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:ForeignExchangeContractsNetMember2021-01-012021-12-310001610520ubs:OtherFinancialInstrumentsNetMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanUBSGroupAGSharesMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:OtherInvestmentFundsMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:InvestmentFundsMember2022-12-310001610520ubs:CashPerformanceAwardsMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:InvestmentFundsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ubs:UBSAGMemberubs:LongTermNotesAndDebenturesIssuedMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ubs:UBSAGMemberubs:CHFCurrencyExchangeRateMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:TopOfRangeMemberubs:SegmentGWMMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:OtherInvestmentFundsMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CurrencyRiskMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ubs:PerformanceAwardsMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:SecuritisationVehiclesMemberubs:DerivativeFinancialAssetsMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:UBSAGMemberubs:PensionPlansMember2022-01-012022-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-01-012022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:OtherInvestmentFundsMember2021-12-310001610520ubs:UKPensionPlanMemberubs:ForeignBondsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticRealEstateInvestmentFundsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsAAAToBBBMinusMember2021-12-310001610520ubs:USAndGermanPensionPlansMemberubs:OtherInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:OtherInvestmentsMember2022-12-310001610520ubs:PensionPlansMember2022-01-012022-12-310001610520ubs:SwissPensionPlanMemberubs:ActuarialAssumptionOfInterestCreditRateMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:MarketComparableAndSecuritizationModelMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMember2021-12-310001610520ubs:UBSAGMemberubs:LongTermIncentivePlanMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ubs:SwissPensionPlanMemberubs:ActuarialAssumptionOfInterestCreditRateMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:CreditSpreadRiskMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:OtherInvestmentFundsMember2021-12-310001610520ubs:SegmentPCBMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CurrencyRiskMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:AssumptionOfLifeExpectancyMember2022-12-310001610520ubs:UBSAGMemberubs:CompensationPriorYearsMemberubs:DeferredCompensationAwardsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:GoodsOrServicesTransferredAtPointInTimeMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:FairValueHedgesMemberifrs-full:InterestRateRiskMemberubs:InterestRateBenchmarkReformExceptionsEffectOnCashFlowHedgesMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2021-12-310001610520ifrs-full:FairValueHedgesMemberifrs-full:InterestRateRiskMemberubs:InterestRateBenchmarkReformExceptionsEffectOnCashFlowHedgesMember2021-12-310001610520ubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:PlusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:HedgesOfNetInvestmentInForeignOperationsMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ubs:UBSAGMemberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:USAndGermanPensionPlansMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:UKPensionPlanMember2020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:PensionPlansMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberubs:SegmentIBMember2022-12-310001610520ubs:CreditSpreadRiskMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMember2022-12-310001610520ubs:UBSBankUSASubsidiariesMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:SegmentPCBMember2022-12-310001610520ubs:NotTimeSpecificMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:InvestmentFundsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ubs:SegmentGWMMember2020-01-012020-12-310001610520ubs:NotesAndDebenturesIssuedMember2020-12-310001610520ubs:UBSAGMemberubs:NotesAndDebenturesIssuedMember2021-01-012021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UKPensionPlanMember2021-12-310001610520ifrs-full:CurrencyRiskMemberubs:SegmentIBMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades9To13Memberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsBelowBBBMinusMember2022-12-310001610520ubs:PensionPlansMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:PensionPlansMember2021-01-012021-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:TopOfRangeMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:UKPensionPlanMember2020-12-310001610520ubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanDerivativeInstrumentsUbsAgCounterpartyMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMemberubs:SegmentIBMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ubs:UBSAGMemberubs:CashPerformanceAwardsMember2022-01-012022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:CompensationPriorYearsMemberubs:FundOwnershipPlanMember2021-01-012021-12-310001610520ubs:FinancialAdvisorCompensationDeferredCashbasedAwardsMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:UKPensionPlanMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:OtherInvestmentFundsMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:EquityPriceRiskMemberubs:UBSAGMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:BottomOfRangeMemberubs:UBSAGMemberubs:SegmentPCBMember2021-12-310001610520ifrs-full:TopOfRangeMemberubs:SegmentGWMMember2021-12-310001610520ubs:UBSAGMemberubs:SegmentPCBMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMember2021-12-310001610520ubs:SwissPensionPlanMemberubs:ForeignRealEstateAndPropertyMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:WeightedAverageMemberubs:UBSAGMember2021-12-310001610520ifrs-full:EquityPriceRiskMember2022-01-012022-12-310001610520ubs:FinancialAdvisorCompensationCommitmentsMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ubs:UBSAGMemberubs:ClientVehiclesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ubs:UBSAGMemberubs:EMEAMember2020-12-310001610520ubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:InterestRateRiskMemberubs:SegmentGFMember2021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanSecuritiesLentToUBSAGMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:InterestRateRiskMemberubs:SegmentGWMMember2021-12-310001610520ubs:UBSAGMemberubs:SegmentAMMember2021-12-310001610520ubs:UBSAGMemberubs:SegmentIBMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:InvestmentFundsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ubs:CashPerformanceAwardsMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ubs:SegmentAMMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:RealEstateLoanMemberubs:SevereDownsideScenarioMember2022-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ifrs-full:EquityMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:MinusFivePercentMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:PlanAssetsMemberubs:USAndGermanPensionPlansMember2022-12-310001610520ubs:UBSSwitzerlandAGSubsidiariesMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:UBSAGMemberubs:JPYCurrencyExchangeRateMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:TopOfRangeMemberubs:SegmentGFMember2022-12-310001610520ubs:RealEstateLoanMemberubs:LifetimeWeightedAverageMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:SegmentAMMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ubs:UBSAGMemberubs:SegmentGFMember2021-12-310001610520ubs:UBSAGMemberubs:FinancialAssetsAtFairValueHeldforTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueRelatedToThoseInExchangeForSecuritiesReceivedMember2022-12-310001610520ubs:OverTheCounterDerivativeLiabilitiesMember2020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:CreditCardMemberubs:SICRPDLayerMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGradesDefaultedMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMemberubs:SegmentIBMember2022-12-310001610520ubs:UBSAGMemberubs:GBPCurrencyExchangeRateMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:USAndGermanPensionPlansMember2022-12-310001610520ubs:DeferredContingentCapitalPlanMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:WeightedAverageMember2021-12-310001610520ubs:UBSAGMemberubs:PerformanceAwardsMember2020-01-012020-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:WeightedAverageMember2021-12-310001610520ubs:UBSAGMemberubs:SegmentPCBMember2021-01-012021-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:UKPensionPlanMember2021-12-310001610520ubs:UBSAGMemberubs:LaterThanTenYearsAndNotLaterThanTwentyYearsMember2022-12-310001610520ubs:UBSAGMemberubs:CashPerformanceAwardsMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:CreditSpreadRiskMember2021-01-012021-12-310001610520ubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanPropertiesOccupiedByUbsMember2021-12-310001610520ifrs-full:SecuritisationVehiclesMemberubs:UBSAGMemberubs:DerivativeFinancialAssetsMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanSecuritiesLentToUBSAGMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2021-12-310001610520ubs:SegmentGFMember2022-01-012022-12-310001610520ubs:SevereDownsideScenarioMemberubs:MinusFivePercentMemberubs:HousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:CommodityPriceRiskMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ubs:CompensationPriorYearsMemberubs:FundOwnershipPlanMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ubs:UBSAGMemberubs:SegmentPCBMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ubs:UBSAGMemberubs:CHFCurrencyExchangeRateMember2022-01-012022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:BottomOfRangeMemberubs:UBSAGMemberubs:SegmentGFMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:BottomOfRangeMemberubs:UBSAGMemberubs:SegmentPCBMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:BottomOfRangeMemberubs:SegmentAMMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanUBSGroupAGSharesMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanSecuritiesLentToUBSAGMember2022-12-310001610520ubs:LongTermNotesAndDebenturesIssuedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:USAndGermanPensionPlansMember2020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:CommodityPriceRiskMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:SegmentIBMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:BottomOfRangeMemberubs:UBSAGMemberubs:SegmentAMMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:InvestmentFundsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CurrencyRiskMemberubs:UBSAGMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:SegmentAMMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:UBSAGMemberubs:GBPCurrencyExchangeRateMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:WeightedAverageMemberubs:UBSAGMember2022-12-310001610520ifrs-full:TopOfRangeMemberubs:SegmentPCBMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignRealEstateAndPropertyMember2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:FinancialAssetsAtFairValueHeldForTradingDebtInstrumentsMemberMember2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ubs:LongTermNotesAndDebenturesIssuedMember2020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ubs:InternalCreditGrades4To5Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2022-12-310001610520ubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMemberubs:UBSAGMember2022-12-310001610520ubs:CompensationPriorYearsMemberubs:LongTermIncentivePlanMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:SICRWatchListMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:UBSAGMemberubs:EquityIndexContractsNetMemberubs:EquityDividendYieldsMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMember2020-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:PlanAssetsMemberubs:USAndGermanPensionPlansMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsBelowBBBMinusMember2021-12-310001610520ubs:LandAndBuildingsAndEquipmentMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:NotLaterThanOneMonthMemberubs:UBSAGMember2021-12-310001610520ubs:UBSAGMemberubs:FinancialAssetsAtFairValueHeldforTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueRelatedToOtherTransfersMember2022-12-310001610520ubs:UKPensionPlanMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanUBSGroupAGSharesMember2022-12-310001610520ubs:PerformanceAwardsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:TopOfRangeMemberubs:UBSAGMember2021-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:USAndGermanPensionPlansMember2022-12-310001610520ubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ubs:UBSAGMemberubs:DerivativeFinancialAssetsMemberubs:ClientVehiclesMember2022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:UBSAGMemberubs:PensionPlansMember2020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades2To3Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:EquityIndexContractsNetMemberubs:EquityDividendYieldsMeasurementInputMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:MortgagesMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberubs:BaselineScenarioMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMemberubs:SegmentGFMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ubs:SwissPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ubs:UBSAGMemberubs:CompensationPriorYearsMemberubs:FundOwnershipPlanMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:HistoricalVolatilityForSharesMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:UBSAGMemberubs:EquityIndexContractsNetMember2022-12-310001610520ubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:TopOfRangeMemberubs:SegmentGFMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:SICRWatchListMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2021-12-310001610520ubs:SevereDownsideScenarioMemberubs:PlusFivePercentMemberubs:HousePriceIndexMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:UBSAGMemberubs:EURCurrencyExchangeRateMember2020-01-012020-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:CurrencyRiskMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMember2022-01-012022-12-310001610520ubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanPropertiesOccupiedByUbsMember2022-12-310001610520ifrs-full:InterestRateRiskMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CommodityPriceRiskMemberubs:UBSAGMember2021-12-310001610520ubs:NotesAndDebenturesIssuedMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMember2021-12-310001610520ubs:UBSAGSubsidiariesMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:HedgesOfNetInvestmentInForeignOperationsMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:UBSAGMemberubs:EquityIndexContractsNetMemberubs:EquityDividendYieldsMeasurementInputMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:NotLaterThanOneMonthMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:AuctionRateSecuritiesMember2021-12-310001610520ubs:UBSAGMemberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ubs:SegmentIBMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ubs:JPYCurrencyExchangeRateMember2022-12-310001610520ubs:UBSAGMemberubs:OverTheCounterDerivativeLiabilitiesMember2020-12-310001610520ubs:NotesAndDebenturesIssuedMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:WeightedAverageMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:UBSAGMemberubs:EURCurrencyExchangeRateMember2022-12-310001610520ubs:UBSAGMemberubs:ShortTermNotesAndDebenturesIssuedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades6To8Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades2To3Memberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:InterestRateSwapContractMember2021-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberubs:ClientVehiclesMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMemberubs:SegmentPCBMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ubs:InternalCreditGradesDefaultedMemberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2021-12-310001610520ubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2022-12-310001610520ubs:UBSAGMemberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:SegmentIBMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ubs:InternalCreditGrades6To8Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ubs:UBSAGMemberubs:GBPCurrencyExchangeRateMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ubs:UBSAGMemberubs:JPYCurrencyExchangeRateMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades9To13Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:EquityPriceRiskMember2021-12-310001610520ubs:ShortTermNotesAndDebenturesIssuedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:UBSAGMemberubs:CreditSpreadRiskMemberubs:SegmentGFMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:SegmentGFMember2022-12-310001610520ubs:UBSAGMemberubs:CHFCurrencyExchangeRateMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2021-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMemberubs:SegmentGFMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:UBSAGMemberubs:EquityIndexContractsNetMemberubs:EquityToFXCorrelationMeasurementInputMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticRealEstateInvestmentFundsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsBelowBBBMinusMember2021-12-310001610520ifrs-full:NoncontrollingInterestsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:RightofuseAssetsMember2022-01-012022-12-310001610520ubs:UKPensionPlanMemberubs:ActuarialAssumptionOfInterestCreditRateMember2022-01-012022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:OtherInvestmentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ubs:UBSAGMemberubs:EMEAMember2022-01-012022-12-310001610520ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:SecuritisationVehiclesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMember2021-12-310001610520ubs:FinancialAdvisorCompensationDeferredSharebasedAwardsMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ubs:GBPCurrencyExchangeRateMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:CreditSpreadRiskMember2021-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:WeightedAverageMemberubs:UBSAGMember2021-12-310001610520ubs:EURCurrencyExchangeRateMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:UBSAGMemberubs:GoodsOrServicesTransferredOnRecurringBasisMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:PlusTwoPercentMember2022-01-012022-12-310001610520ifrs-full:HistoricalVolatilityForSharesMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:EquityIndexContractsNetMember2021-12-310001610520ubs:UBSAGMemberubs:EURCurrencyExchangeRateMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:InterestRateRiskMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:WeightedAverageMemberubs:UnemploymentRateMemberubs:MinusOnePercentMember2022-01-012022-12-310001610520ubs:EURCurrencyExchangeRateMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:PlanAssetsAtFairValuePlanPropertiesOccupiedByUbsMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ubs:SegmentPCBMember2022-12-310001610520ubs:LongTermIncentivePlanMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:InterestRateContractsNetMemberubs:HistoricalVolatilityForInterestRatesMeasurementInputMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:DiscountRateMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAdvisorCompensationCommitmentsMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:UBSEuropeSESubsidiariesMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:SegmentGFMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMemberubs:SegmentGWMMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ubs:UBSAGMemberubs:DerivativeFinancialLiabilitiesMember2021-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMemberubs:SegmentPCBMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignRealEstateAndPropertyMember2022-12-310001610520ubs:JPYCurrencyExchangeRateMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:OtherInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:SegmentPCBMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ubs:UKPensionPlanMemberubs:OtherInvestmentsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsBelowBBBMinusMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ForeignBondsAAAToBBBMinusMember2021-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ForeignBondsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignRealEstateInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:PensionPlansMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ubs:UBSAGMemberubs:SegmentGFMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMember2022-12-310001610520ubs:UBSAGMemberubs:SegmentAMMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAssetsAtFairValueHeldforTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueRelatedToThoseInExchangeForCashReceivedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades4To5Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMember2022-01-012022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:SICRWatchListMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:TopOfRangeMember2021-12-310001610520ifrs-full:InterestRateRiskMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:CurrencyRiskMemberubs:SegmentGWMMember2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGradesDefaultedMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMember2022-12-310001610520ubs:InternalCreditGrades0To1Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2022-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMember2022-12-310001610520ubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:PlusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentFundsMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ForeignBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:UBSAGMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:SegmentGFMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGradesDefaultedMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:DomesticBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:UBSAGMemberubs:LongTermIncentivePlanMember2022-01-012022-12-310001610520ifrs-full:WeightedAverageMemberubs:SegmentGFMember2022-12-310001610520ubs:CreditSpreadRiskMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:FairValueHedgesMemberubs:UBSAGMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:AssetBackedSecuritiesMember2022-01-012022-12-310001610520ifrs-full:EquityInvestmentsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:UbsAssetManagementLifeLtdSubsidiariesMember2022-01-012022-12-310001610520ifrs-full:PresentValueOfDefinedBenefitObligationMemberubs:UBSAGMemberubs:UKPensionPlanMember2020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:PlanAssetsMemberubs:UBSAGMemberubs:PensionPlansMember2020-12-310001610520ubs:FinancialAdvisorCompensationMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:SegmentIBMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedUponInitialRecognitionCategoryMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:UBSAGMemberubs:UBSSwitzerlandAGSubsidiariesMember2022-01-012022-12-310001610520ubs:SmallMediumEnterpriseMemberubs:UpsideScenarioMember2022-12-310001610520ifrs-full:MortgagesMemberubs:UBSAGMemberubs:BaselineScenarioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ubs:UKPensionPlanMemberubs:ForeignRealEstateInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:TopOfRangeMemberubs:UBSAGMember2022-12-310001610520ubs:SegmentAMMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMemberubs:SegmentIBMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:PlanAssetsMemberubs:PensionPlansMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:OtherInvestmentFundsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ubs:CHFCurrencyExchangeRateMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsNetMemberubs:BondPriceEquivalentMeasurementInputMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ubs:SevereDownsideScenarioMemberubs:OtherClientCounterpartiesMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:CreditCardMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:CorporateAndMunicipalBondsMember2022-12-310001610520ubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsNetMember2022-12-310001610520ubs:InternalCreditGrades4To5Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2021-12-310001610520ifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanFiveYearsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2022-01-012022-12-310001610520ubs:JPYCurrencyExchangeRateMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades0To1Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ifrs-full:ReserveOfCashFlowHedgesMemberubs:UBSAGMember2020-01-012020-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMemberubs:UBSAGMember2021-12-310001610520ifrs-full:GrossCarryingAmountMember2022-01-012022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ubs:CompensationPerformanceYearMemberubs:LongTermIncentivePlanMember2020-01-012020-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UBSAGMemberubs:PensionPlansMember2022-01-012022-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:SICRPDLayerMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ubs:InternalCreditGrades9To13Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsNetMemberubs:BondPriceEquivalentMeasurementInputMember2022-12-310001610520ubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SICRPDLayerMember2022-12-310001610520ifrs-full:CorporateLoansMemberubs:SevereDownsideScenarioMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberubs:SegmentPCBMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:UBSAGMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CreditCardMemberubs:SICRPDLayerMember2022-12-310001610520ubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:EffectOfAssetCeilingMemberubs:SwissPensionPlanMember2021-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-12-310001610520ubs:UBSAGMemberubs:OverTheCounterDerivativeLiabilitiesMember2021-12-310001610520ifrs-full:BottomOfRangeMemberubs:UBSAGMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades4To5Memberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:OtherInvestmentFundsMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:OtherInvestmentsMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:PensionPlansMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LandAndBuildingsAndEquipmentMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:ComputerSoftwareMember2022-12-310001610520ifrs-full:ComputerSoftwareMember2021-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:NotLaterThanOneMonthMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMemberubs:SegmentGFMember2021-12-310001610520ubs:UBSAGMemberubs:UBSAmericasIncSubsidiariesMember2022-01-012022-12-310001610520ubs:GBPCurrencyExchangeRateMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ubs:UBSAGMemberubs:JPYCurrencyExchangeRateMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:EquityIndexContractsNetMemberubs:EquityToFXCorrelationMeasurementInputMember2022-12-310001610520ubs:UBSAssetManagementAGSubsidiariesMember2022-01-012022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:NoncontrollingInterestsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:UBSFinancialServicesIncSubsidiariesMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:SICRWatchListMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:HistoricalVolatilityForSharesMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:UBSAGMemberubs:EquityIndexContractsNetMember2021-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ubs:BaselineScenarioMemberubs:OtherClientCounterpartiesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:SICRWatchListMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:MortgagesMemberubs:BaselineScenarioMember2022-12-310001610520ubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:Level3OfFairValueHierarchyMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMember2021-12-310001610520ubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberubs:LandAndBuildingsAndEquipmentMember2022-12-310001610520ifrs-full:CurrencySwapContractMember2021-12-310001610520ubs:UpsideScenarioMemberubs:OtherClientCounterpartiesMember2022-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:MinusFivePercentMemberubs:HousePriceIndexMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:UpsideScenarioMember2022-12-310001610520ifrs-full:EquityMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:MinusTenPercentMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:CreditSpreadRiskMemberubs:SegmentGFMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:SwissPensionPlanMemberubs:ForeignRealEstateAndPropertyMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ubs:UBSBankUSASubsidiariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:DebtInstrumentsHeldMeasuredAtAmortizedCostPledgedAsCollateralPermittedToBeSoldOrRepledgedAtFairValueMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMemberubs:BondPriceEquivalentMeasurementInputMember2022-12-310001610520ubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ubs:USAndGermanPensionPlansMemberubs:OtherInvestmentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticRealEstateInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsAAAToBBBMinusMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:UBSAGMemberubs:SegmentAMMember2021-12-310001610520ubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMemberubs:FundingSpreadMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ModelAndMethodologyChangesMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-12-310001610520ubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ubs:BaselineScenarioMemberubs:HousePriceIndexMemberubs:MinusTwoAndAHalfPercentMember2022-01-012022-12-310001610520ubs:DerivativeFinancialAssetsMemberubs:ClientVehiclesMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:DomesticRealEstateAndPropertyMember2022-12-310001610520ubs:OtherLocationsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ubs:UBSAGMemberubs:SegmentIBMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2022-12-310001610520ubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:SICRWatchListMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:MinusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ubs:SmallMediumEnterpriseMemberubs:LifetimeWeightedAverageMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SICRWatchListMember2022-12-310001610520ubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsAAAToBBBMinusMember2022-12-310001610520ubs:UKPensionPlanMemberubs:OtherInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:EquityIndexContractsNetMemberubs:EquityDividendYieldsMeasurementInputMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:SICRPDLayerMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMemberubs:LoanPriceEquivalentMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:CurrencyRiskMemberubs:SegmentGFMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:MortgagesMemberubs:LifetimeWeightedAverageMember2022-12-310001610520ifrs-full:EquityMemberubs:BaselineScenarioMemberubs:PlusTenPercentMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ubs:UBSAGMemberubs:IntragroupFundingMember2020-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ubs:UBSAGMemberubs:SegmentIBMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades4To5Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ubs:UBSAmericasIncSubsidiariesMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:InterestRateRiskMember2021-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsAAAToBBBMinusMember2021-12-310001610520ubs:UKPensionPlanMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2022-01-012022-12-310001610520ubs:PensionPlansMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2022-01-012022-12-310001610520ubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:CreditDerivativeContractsNetMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:CreditDerivativeContractsNetMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:SICRPDLayerMember2022-12-310001610520ubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ubs:UBSAGMemberubs:CompensationPerformanceYearMemberubs:LongTermIncentivePlanMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ubs:DerivativeFinancialLiabilitiesMemberubs:ClientVehiclesMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGradesDefaultedMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:WeightedAverageMemberubs:AuctionRateSecuritiesMember2022-12-310001610520ubs:UBSAGMemberubs:StructuredSecuritiesFinancingTransactionsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:OtherFinancialInstrumentsNetMember2021-01-012021-12-310001610520ubs:ForeignExchangeContractsNetMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSRealtyInvestorsLLCSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2022-12-310001610520ubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ubs:BaselineScenarioMemberubs:MinusFivePercentMemberubs:HousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ubs:InternalCreditGrades2To3Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:Level3OfFairValueHierarchyMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanFiveYearsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:CorporateLoansMemberubs:LifetimeWeightedAverageMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:FinancialAssetsAtFairValueNotHeldForTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ForeignRealEstateAndPropertyMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:UBSAGMemberubs:NotesAndDebenturesIssuedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:UBSAGMemberubs:CompensationPriorYearsMemberubs:LongTermIncentivePlanMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:UBSAGMemberubs:EquityIndexContractsNetMemberubs:EquityToEquityCorrelationMeasurementInputMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ubs:UBSAGMemberubs:UBSSecuritiesLLCSubsidiariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMemberubs:LoanPriceEquivalentMeasurementInputMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ubs:UBSAssetManagementAGSubsidiariesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:BottomOfRangeMemberubs:UBSAGMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:DiscountRateMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:CreditDerivativeContractsNetMemberubs:BondPriceEquivalentMeasurementInputMember2022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:WeightedAverageMemberubs:MarketComparableAndSecuritizationModelMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:SICRPDLayerMember2022-12-310001610520ifrs-full:EquityPriceRiskMember2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberubs:SegmentGFMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:WeightedAverageMemberubs:GrossDomesticProductMemberubs:MinusOnePercentMember2022-01-012022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:SICRPDLayerMember2022-12-310001610520ubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:MinusOnePercentMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:SICRPDLayerMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:HousePriceIndexMemberubs:PlusTwoAndAHalfPercentMember2022-01-012022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CreditCardMemberubs:SICRWatchListMember2022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:UBSAGMemberubs:JPYCurrencyExchangeRateMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:JPYCurrencyExchangeRateMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMember2022-12-310001610520ubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:MinusOnePercentMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMemberubs:BondPriceEquivalentMeasurementInputMember2021-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:SICRWatchListMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:MinusTwoPercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:EquityIndexContractsNetMemberubs:EquityToFXCorrelationMeasurementInputMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:CHFCurrencyExchangeRateMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades2To3Memberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:InternalCreditGrades2To3Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UKPensionPlanMember2021-01-012021-12-310001610520ifrs-full:ReserveOfCashFlowHedgesMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:RightofuseAssetsMember2021-12-310001610520ubs:PensionPlansMemberubs:ActuarialAssumptionOfInterestCreditRateMember2021-01-012021-12-310001610520ifrs-full:EquityMemberubs:SevereDownsideScenarioMemberubs:MinusFivePercentMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:UBSAGMemberubs:EquityIndexContractsNetMemberubs:EquityToFXCorrelationMeasurementInputMember2021-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanFiveYearsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:CurrencyRiskMemberubs:SegmentGWMMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:WeightedAverageMemberubs:CorporateAndMunicipalBondsMemberubs:BondPriceEquivalentMeasurementInputMember2021-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:ModelAndMethodologyChangesMember2022-01-012022-12-310001610520ubs:InternalCreditGradesDefaultedMemberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2021-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SICRPDLayerMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:EquityIndexContractsNetMemberubs:EquityDividendYieldsMeasurementInputMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ubs:InternalCreditGrades6To8Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:InterestRateBasisPointSensitivityMemberubs:PlusHalfPercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:EquityIndexContractsNetMemberubs:EquityToEquityCorrelationMeasurementInputMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:MarketComparableAndSecuritizationModelMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:SICRPDLayerMember2022-12-310001610520ubs:RealEstateLoanMemberubs:BaselineScenarioMember2022-12-310001610520ifrs-full:PlanAssetsMemberubs:UKPensionPlanMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:RightofuseAssetsMember2021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:RightofuseAssetsMember2021-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:MarketComparableAndSecuritizationModelMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:SICRPDLayerMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:InterestRateContractsNetMemberubs:HistoricalVolatilityForInterestRatesMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:InterestRateBasisPointSensitivityMemberubs:MinusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:OtherInvestmentsMember2021-12-310001610520ubs:UKPensionPlanMemberubs:DomesticRealEstateInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticRealEstateInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMemberubs:FundingSpreadMeasurementInputMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:SICRPDLayerMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:UnemploymentRateMemberubs:MinusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentsMember2022-12-310001610520ubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:BaselineScenarioMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:PlusFivePercentMemberubs:HousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsAAAToBBBMinusMember2021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsAAAToBBBMinusMember2021-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:MinusHalfPercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:RealEstateLoanMemberubs:LifetimeWeightedAverageMember2022-12-310001610520ifrs-full:DiscountRateMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:CorporateAndMunicipalBondsMember2021-12-310001610520ubs:UBSAGMemberubs:UBSFundManagementSwitzerlandAGSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSSecuritiesJapanCoLtdSubsidiariesMember2022-01-012022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ubs:SwissPensionPlanMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2022-01-012022-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:NotLaterThanOneMonthMember2022-12-310001610520ubs:UBSAGMemberubs:GoodsOrServicesTransferredOnPerformancebasedBasisMember2021-01-012021-12-310001610520ifrs-full:NoncontrollingInterestsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:GrossDomesticProductMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ubs:BaselineScenarioMemberubs:PlusFivePercentMemberubs:HousePriceIndexMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:OffBalanceSheetFinancialInstrumentsWithoutOtherCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SICRWatchListMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:EquityIndexContractsNetMember2022-01-012022-12-310001610520ubs:InterestRateContractsNetMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UbsOConnorLlcMember2022-12-310001610520ifrs-full:CorporateLoansMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:RightofuseAssetsMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignRealEstateInvestmentFundsMember2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticRealEstateInvestmentFundsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:SICRWatchListMember2022-12-310001610520ubs:InternalCreditGrades9To13Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:UBSAGMemberubs:PensionPlansMember2021-01-012021-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:UBSAGMemberubs:UKPensionPlanMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticBondsAAAToBBBMinusMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2021-12-310001610520ubs:UBSAGMemberubs:AssetBackedSecuritiesMember2021-01-012021-12-310001610520ubs:OtherFinancialInstrumentsNetMember2021-01-012021-12-310001610520ifrs-full:ReserveOfExchangeDifferencesOnTranslationMemberubs:UBSAGMember2020-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:RightofuseAssetsMember2022-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:RightofuseAssetsMember2022-12-310001610520ubs:ProjectsInProgressMember2021-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:NotLaterThanOneMonthMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LandAndBuildingsAndEquipmentMember2021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520srt:AsiaPacificMember2020-01-012020-12-310001610520srt:AmericasMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMemberubs:SICRPDLayerMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberubs:MarketComparableAndSecuritizationModelMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:InterestRateContractsNetMemberubs:HistoricalVolatilityForInterestRatesMeasurementInputMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMemberubs:BondPriceEquivalentMeasurementInputMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMember2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:USAndGermanPensionPlansMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ActuarialAssumptionOfInterestCreditRateMember2022-01-012022-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades9To13Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:CreditDerivativeContractsNetMember2021-12-310001610520ifrs-full:EquityMemberubs:SevereDownsideScenarioMemberubs:MinusTenPercentMember2022-01-012022-12-310001610520ubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ubs:UBSAGMemberubs:CreditSpreadRiskMemberubs:SegmentGFMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades0To1Memberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ubs:UBSAGMemberubs:CompensationPerformanceYearMemberubs:FundOwnershipPlanMember2022-01-012022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades2To3Member2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ubs:UBSAGMemberubs:RealEstateLoanMemberubs:ModerateDownsideScenarioMemberMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:HousePriceIndexMemberubs:MinusTwoAndAHalfPercentMember2022-01-012022-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMember2021-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:PlusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:MortgagesMemberubs:UBSAGMemberubs:UpsideScenarioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:UBSAGMemberubs:OtherDefinedBenefitPlansMember2022-01-012022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticRealEstateInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignRealEstateInvestmentFundsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsBelowBBBMinusMember2021-12-310001610520ifrs-full:OtherReservesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UBSAGMemberubs:UKPensionPlanMember2021-01-012021-12-310001610520ubs:SmallMediumEnterpriseMemberubs:BaselineScenarioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:MortgagesMemberubs:UBSAGMemberubs:LifetimeWeightedAverageMember2022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:HousePriceIndexMemberubs:MinusTwoAndAHalfPercentMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ubs:UKPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignRealEstateInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:SwissPensionPlanMember2021-01-012021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticRealEstateInvestmentFundsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:CompensationPerformanceYearMemberubs:LongTermIncentivePlanMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520country:GBubs:UBSAGMemberubs:Age65Memberubs:MortalityTableUKMember2021-12-310001610520country:DEubs:Age45Memberubs:MortalityTableGermanyMember2021-12-310001610520srt:ParentCompanyMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2021-01-012021-12-310001610520srt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:UBSAssetManagementAGSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSAmericasIncSubsidiariesMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:HedgesOfNetInvestmentInForeignOperationsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsBelowBBBMinusMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquityInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:UKPensionPlanMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:UBSBusinessSolutionsUSLLCSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSAssetManagementAmericasIncSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSRealtyInvestorsLLCSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSSecuritiesHongKongLimitedSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSMonacoSASubsidiariesMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ubs:UpsideScenarioMember2022-12-310001610520ifrs-full:CorporateLoansMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:ComputerSoftwareMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:LandAndBuildingsAndEquipmentMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ActuarialAssumptionOfInterestCreditRateMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:ProjectsInProgressMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentsMember2021-12-310001610520ifrs-full:MortgagesMemberubs:ModerateDownsideScenarioMemberMember2022-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ubs:UBSAGMemberubs:GBPCurrencyExchangeRateMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:EquityIndexContractsNetMemberubs:EquityToEquityCorrelationMeasurementInputMember2021-12-310001610520ubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:MinusOnePercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ubs:UKPensionPlanMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2021-01-012021-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ubs:UBSAGMemberubs:FinancialAssetsAtFairValueHeldForTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueMember2021-12-310001610520ifrs-full:OtherReservesMemberubs:UBSAGMember2020-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:UBSAGMemberubs:UKPensionPlanMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ubs:UBSAssetManagementSwitzerlandAGSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSMonacoSASubsidiariesMember2022-01-012022-12-310001610520ubs:UBSRealtyInvestorsLLCSubsidiariesMember2022-12-310001610520ubs:UBSSecuritiesHongKongLimitedSubsidiariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMemberubs:SegmentGWMMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:GrossDomesticProductMemberubs:PlusTwoPercentMember2022-01-012022-12-310001610520ubs:DerivativeFinancialLiabilitiesMember2021-12-310001610520ubs:UBSAGMemberubs:EURCurrencyExchangeRateMember2022-01-012022-12-310001610520ubs:InternalCreditGrades0To1Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:CurrencyRiskMemberubs:SegmentGFMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2020-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanFiveYearsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ubs:OtherLocationsMember2021-12-310001610520ifrs-full:FinancialAssetsMember2021-12-310001610520ubs:LongTermIncentivePlanMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:CompensationPriorYearsMemberubs:FundOwnershipPlanMember2020-01-012020-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:EquityIndexContractsNetMemberubs:EquityToEquityCorrelationMeasurementInputMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:UnemploymentRateMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMember2021-12-310001610520ubs:UKPensionPlanMemberubs:OtherInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsAAAToBBBMinusMember2021-12-310001610520ifrs-full:EquityMemberifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:MinusTenPercentMember2022-01-012022-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UBSAGMemberubs:PensionPlansMember2021-01-012021-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:WeightedAverageMemberubs:AuctionRateSecuritiesMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:UnemploymentRateMemberubs:PlusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:CashFlowHedgesMemberifrs-full:InterestRateRiskMemberubs:UBSAGMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:CreditDerivativeContractsNetMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:UBSCreditCorpSubsidiariesMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:RightofuseAssetsMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ubs:UKPensionPlanMemberubs:ForeignBondsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquitySecuritiesMember2021-12-310001610520ifrs-full:EquityInvestmentsMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:EquityIndexContractsNetMemberubs:EquityToFXCorrelationMeasurementInputMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:AuctionRateSecuritiesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:MinusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:PensionPlansMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignRealEstateInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsAAAToBBBMinusMember2021-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:SwissPensionPlanMember2021-01-012021-12-310001610520ifrs-full:FairValueHedgesMemberifrs-full:InterestRateRiskMemberubs:UBSAGMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:CreditDerivativeContractsNetMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UbsAssetManagementLifeLtdSubsidiariesMember2022-12-310001610520ubs:AssetBackedSecuritiesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSBankUSASubsidiariesMember2022-12-310001610520ifrs-full:EquityMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:PlusTenPercentMember2022-01-012022-12-310001610520ubs:ModerateDownsideScenarioMemberMember2022-12-310001610520ubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:ModerateDownsideScenarioMemberMember2022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:GrossDomesticProductMemberubs:MinusOnePercentMember2022-01-012022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:HedgesOfNetInvestmentInForeignOperationsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:EquityMemberifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:PlusTenPercentMember2022-01-012022-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ModelAndMethodologyChangesMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:ProjectsInProgressMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520srt:AsiaPacificMember2021-12-310001610520ubs:UBSAGMemberubs:UBSAmericasHoldingLLCSubsidiariesMember2022-01-012022-12-310001610520ubs:UbsSumiTrustWealthManagementCoLtdMember2022-01-012022-12-310001610520ubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:UbsOConnorLlcMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSAssetManagementAmericasIncSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSBusinessSolutionsUSLLCSubsidiariesMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquitySecuritiesMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticRealEstateInvestmentFundsMember2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:EquityMemberubs:BaselineScenarioMemberubs:PlusFivePercentMember2022-01-012022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:WeightedAverageMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:EquityMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:PlusFivePercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:EURCurrencyExchangeRateMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:WeightedAverageMember2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:SICRWatchListMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:DiscountRateMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CorporateAndMunicipalBondsMember2021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberubs:UBSAGMemberubs:LandAndBuildingsAndEquipmentMember2022-01-012022-12-310001610520ifrs-full:ComputerSoftwareMemberifrs-full:GrossCarryingAmountMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:RightofuseAssetsMemberubs:UBSAGMember2021-12-310001610520country:USubs:Age45Memberubs:MortalityTableUSAMember2022-12-310001610520ifrs-full:MortgagesMemberubs:UBSAGMemberubs:ModerateDownsideScenarioMemberMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsBelowBBBMinusMember2021-12-310001610520ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMemberubs:UBSAGMember2021-12-310001610520ubs:UKPensionPlanMemberubs:DomesticRealEstateInvestmentFundsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:DomesticBondsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignRealEstateInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ifrs-full:OtherReservesMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberubs:LandAndBuildingsAndEquipmentMember2021-12-310001610520ubs:UBSAGMemberubs:UBSAssetManagementAGSubsidiariesMember2022-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:MinusOnePercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSFranceSASubsidiariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSBusinessSolutionsUSLLCSubsidiariesMember2022-12-310001610520ubs:UbsAssetManagementLifeLtdSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSSecuritiesAustraliaLtdSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSFundManagementSwitzerlandAGSubsidiariesMember2022-01-012022-12-310001610520ubs:ForeignExchangeContractsNetMember2021-01-012021-12-310001610520ubs:AssetBackedSecuritiesMember2021-01-012021-12-310001610520ubs:UBSAssetManagementHongKongLimitedSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSAssetManagementSwitzerlandAGSubsidiariesMember2022-12-310001610520ubs:EquityIndexContractsNetMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSSecuritiesAustraliaLtdSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSFundManagementLuxembourgSASubsidiariesMember2022-01-012022-12-310001610520ubs:UBSFundManagementSwitzerlandAGSubsidiariesMember2022-12-310001610520ubs:UBSAGMemberubs:OtherLocationsMember2021-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ForeignEquitySecuritiesMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:OtherInvestmentsMember2021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:OtherInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticRealEstateInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticRealEstateInvestmentFundsMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsAAAToBBBMinusMember2021-12-310001610520ubs:UBSAGMemberubs:UBSCreditCorpSubsidiariesMember2022-01-012022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:FairValueHedgesMemberubs:UBSAGMember2021-12-310001610520ubs:UBSAGMemberubs:AuctionRateSecuritiesMember2022-01-012022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticRealEstateInvestmentFundsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsAAAToBBBMinusMember2021-12-310001610520ubs:SwissPensionPlanMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2021-01-012021-12-310001610520ubs:PensionPlansMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2021-01-012021-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2022-01-012022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:USAndGermanPensionPlansMember2022-01-012022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:OtherInvestmentsMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ubs:EURCurrencyExchangeRateMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:SevereDownsideScenarioMember2022-12-310001610520ifrs-full:EquityMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:PlusTenPercentMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:LifetimeWeightedAverageMember2022-12-310001610520ubs:UBSAGMemberubs:ForeignExchangeContractsNetMember2022-01-012022-12-310001610520ubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:UBSAssetManagementHongKongLimitedSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSFundManagementLuxembourgSASubsidiariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ActuarialAssumptionOfInterestCreditRateMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:OtherDefinedBenefitPlansMember2021-01-012021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:OtherInvestmentsMember2022-12-310001610520ubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:WeightedAverageMemberubs:MarketComparableAndSecuritizationModelMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:IrrevocableCommittedProlongationOfLoansMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberubs:UBSAGMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:ModelAndMethodologyChangesMember2021-01-012021-12-310001610520srt:AmericasMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMember2022-12-310001610520ubs:InternalCreditGrades6To8Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:UBSAGMemberubs:GoodsOrServicesTransferredOnRecurringBasisMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ubs:UBSAGMemberubs:SegmentGFMember2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades9To13Member2021-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:SICRWatchListMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:MarketComparablePricesMemberifrs-full:WeightedAverageMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMemberubs:LoanPriceEquivalentMeasurementInputMember2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:EquityIndexContractsNetMemberubs:EquityToEquityCorrelationMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades4To5Memberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:UBSFundManagementLuxembourgSASubsidiariesMember2022-12-310001610520country:USubs:UBSAGMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignRealEstateInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticRealEstateInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:SwissPensionPlanMember2021-01-012021-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:UKPensionPlanMember2021-01-012021-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanFiveYearsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:ReserveOfCashFlowHedgesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:ReserveOfCashFlowHedgesMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMember2020-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsNetMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ubs:InternalCreditGrades4To5Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:EquityMemberifrs-full:WeightedAverageMemberubs:PlusFivePercentMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberubs:UBSAGMemberubs:InterestRateContractsNetMemberubs:HistoricalVolatilityForInterestRatesMeasurementInputMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:HousePriceIndexMemberubs:MinusTwoAndAHalfPercentMember2022-01-012022-12-310001610520ubs:SevereDownsideScenarioMemberubs:HousePriceIndexMemberubs:PlusTwoAndAHalfPercentMember2022-01-012022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:HousePriceIndexMemberubs:PlusTwoAndAHalfPercentMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:FairValueHedgesMember2021-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:PlusTwoPercentMember2022-01-012022-12-310001610520ubs:StructuredSecuritiesFinancingTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:OtherClientCounterpartiesMember2022-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:UBSAGMemberubs:PensionPlansMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMember2021-12-310001610520country:CH2021-01-012021-12-310001610520country:CHubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:ProjectsInProgressMember2022-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:LifetimeWeightedAverageMember2022-12-310001610520ifrs-full:EquityMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:MinusTenPercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:AuctionRateSecuritiesMember2021-01-012021-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-01-012022-12-310001610520srt:AmericasMember2020-12-310001610520srt:AmericasMember2021-01-012021-12-310001610520ubs:EquityIndexContractsNetMember2021-01-012021-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UBSAGMemberubs:SwissPensionPlanMember2021-01-012021-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:OtherLocationsMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:UBSAGMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsBelowBBBMinusMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520country:CHubs:UBSAGMemberubs:Age45Memberubs:MortalityTableSwitzerlandMember2022-12-310001610520srt:ParentCompanyMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2022-01-012022-12-310001610520country:CHubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:ProjectsInProgressMember2022-01-012022-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:ComputerSoftwareMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberubs:UBSAGMember2020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades2To3Memberubs:OtherCreditLinesSubjectToExpectedCreditLossMember2021-12-310001610520ifrs-full:BottomOfRangeMemberubs:UBSAGMemberubs:SegmentGFMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:InternalCreditGrades6To8Member2021-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:MinusTwoPercentMember2022-01-012022-12-310001610520ifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:SICR30DaysPastDueCriterionMember2022-12-310001610520ifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMemberubs:FundingSpreadMeasurementInputMember2022-12-310001610520ifrs-full:CorporateLoansMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:ComputerSoftwareMemberubs:UBSAGMember2021-12-310001610520ifrs-full:MortgagesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ModelAndMethodologyChangesMember2021-01-012021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsBelowBBBMinusMember2021-12-310001610520srt:AsiaPacificMember2022-01-012022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2021-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:HedgesOfNetInvestmentInForeignOperationsMemberubs:UBSAGMember2021-01-012021-12-310001610520ubs:UBSSecuritiesHongKongLimitedSubsidiariesMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:DebtInstrumentsHeldMeasuredAtAmortizedCostPledgedAsCollateralPermittedToBeSoldOrRepledgedAtFairValueMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:PensionPlansMember2022-01-012022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520country:CHubs:Age45Memberubs:MortalityTableSwitzerlandMember2021-12-310001610520srt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2022-01-012022-12-310001610520srt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2021-01-012021-12-310001610520srt:ConsolidationEliminationsMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMembersrt:ParentCompanyMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMembersrt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2020-01-012020-12-310001610520srt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2022-12-310001610520srt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2021-12-310001610520srt:ConsolidationEliminationsMemberubs:UBSAGMember2022-12-310001610520srt:ReportableLegalEntitiesMemberubs:UBSAGMemberubs:UBSSwitzerlandAGGuarantorSubsidiariesMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2021-01-012021-12-310001610520country:CH2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMember2022-12-310001610520ubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ubs:FundOwnershipPlanMember2020-01-012020-12-310001610520country:DEubs:Age45Memberubs:MortalityTableGermanyMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:UBSBrasilServicosMember2021-01-012021-12-310001610520ubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:MortgagesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2022-01-012022-12-310001610520country:CHubs:UBSAGMember2020-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsBelowBBBMinusMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:UnemploymentRateMemberubs:PlusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsNetMemberubs:BondPriceEquivalentMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticRealEstateInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsAAAToBBBMinusMember2022-12-310001610520ubs:UBSFranceSASubsidiariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ubs:ModelAndMethodologyChangesMember2021-01-012021-12-310001610520ifrs-full:RightofuseAssetsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520country:CH2022-12-310001610520country:USubs:Age45Memberubs:MortalityTableUSAMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:UBSRealtyInvestorsLLCSubsidiariesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:OptionPricingModelMemberifrs-full:TopOfRangeMemberubs:EquityIndexContractsNetMemberubs:EquityToEquityCorrelationMeasurementInputMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGrades9To13Memberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:CreditDerivativeContractsNetMemberubs:BondPriceEquivalentMeasurementInputMember2022-12-310001610520ubs:UBSAGMemberubs:InternalCreditGrades4To5Memberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2022-01-012022-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520srt:ParentCompanyMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2022-12-310001610520srt:ConsolidationEliminationsMemberubs:UBSAGMember2021-12-310001610520srt:ParentCompanyMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2020-01-012020-12-310001610520srt:ParentCompanyMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2021-12-310001610520srt:AmericasMemberubs:UBSAGMember2020-12-310001610520country:GBubs:UBSAGMemberubs:Age45Memberubs:MortalityTableUKMember2021-12-310001610520country:DEubs:UBSAGMemberubs:Age65Memberubs:MortalityTableGermanyMember2021-12-310001610520srt:ConsolidationEliminationsMemberubs:UBSAGMember2020-01-012020-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMemberubs:UBSSwitzerlandAGGuarantorSubsidiariesMember2021-01-012021-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMembersrt:ConsolidationEliminationsMemberubs:UBSAGMember2021-01-012021-12-310001610520country:CHubs:UBSAGMember2020-01-012020-12-310001610520country:USubs:Age65Memberubs:MortalityTableUSAMember2022-12-310001610520srt:ReportableLegalEntitiesMemberubs:UBSAGMemberubs:UBSSwitzerlandAGGuarantorSubsidiariesMember2020-01-012020-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMembersrt:ParentCompanyMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMembersrt:ConsolidationEliminationsMemberubs:UBSAGMember2022-01-012022-12-310001610520srt:ReportableLegalEntitiesMemberubs:UBSAGMemberubs:UBSSwitzerlandAGGuarantorSubsidiariesMember2022-12-310001610520srt:ReportableLegalEntitiesMemberubs:UBSAGMemberubs:UBSSwitzerlandAGGuarantorSubsidiariesMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UBSAGMemberubs:PensionPlansMember2021-01-012021-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:AuctionRateSecuritiesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquitySecuritiesMember2022-12-310001610520country:CHubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:CurrencySwapContractMemberubs:UBSAGMember2021-12-310001610520ubs:UbsOConnorLlcMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2022-12-310001610520ifrs-full:ComputerSoftwareMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquitySecuritiesMember2021-12-310001610520ubs:USAndGermanPensionPlansMemberubs:DomesticEquitySecuritiesMember2022-12-310001610520srt:AmericasMember2021-12-310001610520srt:AsiaPacificMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberubs:UBSAGMemberubs:LandAndBuildingsAndEquipmentMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ModelAndMethodologyChangesMember2021-01-012021-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:UBSAGMemberubs:SwissPensionPlanMember2021-01-012021-12-310001610520country:CHubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:OtherAssetsMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:InternalCreditGradesDefaultedMemberubs:IrrevocableCommittedProlongationOfLoansMember2022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:MinusOnePercentMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:AuctionRateSecuritiesMember2021-12-310001610520ubs:UBSAGMemberubs:StructuredSecuritiesFinancingTransactionsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:InterestRateContractsNetMember2021-01-012021-12-310001610520ubs:AuctionRateSecuritiesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:UBSAssetManagementAmericasIncSubsidiariesMember2022-12-310001610520ubs:UBSBusinessSolutionsUSLLCSubsidiariesMember2022-01-012022-12-310001610520ubs:UKPensionPlanMemberubs:ForeignBondsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquitySecuritiesMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquitySecuritiesMember2021-12-310001610520ubs:UBSAGMemberubs:RelatedPartiesEquityHoldingsMember2022-01-012022-12-310001610520ifrs-full:RightofuseAssetsMember2022-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:PensionPlansMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LandAndBuildingsAndEquipmentMember2022-01-012022-12-310001610520ifrs-full:RightofuseAssetsMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberubs:UBSAGMemberubs:LandAndBuildingsAndEquipmentMember2022-12-310001610520country:GBubs:UBSAGMemberubs:Age65Memberubs:MortalityTableUKMember2022-12-310001610520country:DEubs:Age65Memberubs:MortalityTableGermanyMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquitySecuritiesMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:OtherInvestmentsMember2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsAAAToBBBMinusMember2021-12-310001610520ubs:PensionPlansMemberubs:ActuarialAssumptionOfInterestCreditRateMember2022-01-012022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520country:GBubs:Age65Memberubs:MortalityTableUKMember2021-12-310001610520srt:ReportableLegalEntitiesMemberubs:UBSAGMemberubs:UBSSwitzerlandAGGuarantorSubsidiariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentFundsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsBelowBBBMinusMember2021-12-310001610520ubs:LandAndBuildingsAndEquipmentMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2020-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:ProjectsInProgressMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ubs:UbsOConnorLlcMember2022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ForeignEquitySecuritiesMember2021-12-310001610520country:USubs:UBSAGMember2021-12-310001610520srt:AsiaPacificMemberubs:UBSAGMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:UBSAGMemberubs:SwissPensionPlanMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:PlusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:MortgagesMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquitySecuritiesMember2022-12-310001610520ubs:UBSFranceSASubsidiariesMember2022-12-310001610520country:CHubs:UBSAGMemberubs:Age65Memberubs:MortalityTableSwitzerlandMember2021-12-310001610520country:GBubs:UBSAGMemberubs:Age45Memberubs:MortalityTableUKMember2022-12-310001610520ubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520country:USubs:UBSAGMemberubs:Age65Memberubs:MortalityTableUSAMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520srt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2019-12-310001610520srt:ConsolidationEliminationsMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:UBSAGSubsidiariesMember2022-01-012022-12-310001610520ubs:RelatedPartiesCompensationMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquitySecuritiesMember2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquitySecuritiesMember2022-12-310001610520srt:AmericasMember2022-01-012022-12-310001610520srt:AsiaPacificMemberubs:UBSAGMember2022-01-012022-12-310001610520ubs:InvestmentFundsOnBalanceSheetMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:PlusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:GrossDomesticProductMemberubs:MinusTwoPercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:PlusFivePercentMemberubs:HousePriceIndexMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSFundManagementLuxembourgSASubsidiariesMember2022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:WeightedAverageMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:MortgagesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquitySecuritiesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ubs:UBSMonacoSASubsidiariesMember2022-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:RightofuseAssetsMemberubs:UBSAGMember2022-12-310001610520country:CH2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ubs:USAndGermanPensionPlansMemberubs:DomesticEquitySecuritiesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSFundManagementSwitzerlandAGSubsidiariesMember2022-12-310001610520ubs:CreditDerivativeContractsNetMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:EquityMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:MinusFivePercentMember2022-01-012022-12-310001610520country:CHubs:Age65Memberubs:MortalityTableSwitzerlandMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ModelAndMethodologyChangesMember2021-01-012021-12-310001610520ifrs-full:ComputerSoftwareMemberubs:UBSAGMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ModelAndMethodologyChangesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520country:CH2020-01-012020-12-310001610520ifrs-full:RightofuseAssetsMemberubs:UBSAGMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520srt:ReportableLegalEntitiesMemberubs:UBSAGMemberubs:UBSSwitzerlandAGGuarantorSubsidiariesMember2020-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMemberubs:UBSSwitzerlandAGGuarantorSubsidiariesMember2020-01-012020-12-310001610520country:GBubs:Age45Memberubs:MortalityTableUKMember2021-12-310001610520country:DEubs:Age65Memberubs:MortalityTableGermanyMember2021-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMembersrt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMembersrt:ConsolidationEliminationsMemberubs:UBSAGMember2020-01-012020-12-310001610520ubs:UBSCreditCorpSubsidiariesMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:ProjectsInProgressMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:MortgagesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquitySecuritiesMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquitySecuritiesMember2021-12-310001610520country:CH2020-12-310001610520ubs:InterestRateContractsNetMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsBelowBBBMinusMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UBSAGMemberubs:SwissPensionPlanMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ubs:OtherFinancialAssetsAtAmortisedCostMember2022-01-012022-12-310001610520country:DEubs:UBSAGMemberubs:Age65Memberubs:MortalityTableGermanyMember2022-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMemberubs:UBSSwitzerlandAGGuarantorSubsidiariesMember2022-01-012022-12-310001610520ifrs-full:NoncontrollingInterestsMembersrt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:ComputerSoftwareMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMembersrt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2022-01-012022-12-310001610520country:GBubs:Age65Memberubs:MortalityTableUKMember2022-12-310001610520country:DEubs:UBSAGMemberubs:Age45Memberubs:MortalityTableGermanyMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ActuarialAssumptionOfInterestCreditRateMember2022-01-012022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:CashAndCashEquivalentsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:InternalCreditGrades0To1Member2021-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMemberubs:FundingSpreadMeasurementInputMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:MinusFivePercentMemberubs:HousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentFundsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticRealEstateInvestmentFundsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsAAAToBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:CashAndCashEquivalentsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:OtherInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ubs:UBSCreditCorpSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSAssetManagementSwitzerlandAGSubsidiariesMember2022-12-310001610520ifrs-full:DiscountRateMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2021-12-310001610520ubs:UBSAGMemberubs:UBSAssetManagementHongKongLimitedSubsidiariesMember2022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:PlusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-01-012022-12-310001610520ubs:UBSBrasilServicosMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ModelAndMethodologyChangesMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMembersrt:ParentCompanyMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2020-01-012020-12-310001610520ifrs-full:NoncontrollingInterestsMembersrt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:MinusHalfPercentMember2022-01-012022-12-310001610520srt:AmericasMemberubs:UBSAGMember2022-12-310001610520country:CHubs:UBSAGMemberubs:Age45Memberubs:MortalityTableSwitzerlandMember2021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ActuarialAssumptionOfInterestCreditRateMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:PensionPlansMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:ModelAndMethodologyChangesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:WeightedAverageMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:MinusTwoPercentMember2022-01-012022-12-310001610520ifrs-full:EquityMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:PlusFivePercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSSecuritiesAustraliaLtdSubsidiariesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2021-01-012021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:UKPensionPlanMemberubs:DomesticBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentFundsMember2022-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsBelowBBBMinusMember2021-12-310001610520srt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2021-01-012021-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:PensionPlansMemberubs:ActuarialAssumptionOfInterestCreditRateMember2021-01-012021-12-310001610520ubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:PlusTwoPercentMember2022-01-012022-12-310001610520ubs:UBSAssetManagementHongKongLimitedSubsidiariesMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2021-01-012021-12-310001610520srt:AsiaPacificMemberubs:UBSAGMember2020-01-012020-12-310001610520ubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSSecuritiesJapanCoLtdSubsidiariesMember2022-01-012022-12-310001610520ubs:UBSSecuritiesJapanCoLtdSubsidiariesMember2022-12-310001610520ubs:UBSAGMemberubs:OtherDefinedBenefitPlansMember2022-12-310001610520ifrs-full:InvestmentFundsMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquitySecuritiesMember2021-12-310001610520country:US2021-12-310001610520ubs:UBSAGMemberubs:NotesAndDebenturesIssuedMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:EquityInvestmentsMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:MortgagesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMember2020-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:RightofuseAssetsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ModelAndMethodologyChangesMember2021-01-012021-12-310001610520ubs:UBSAssetManagementAmericasIncSubsidiariesMember2022-12-310001610520ubs:UBSAGMemberubs:UBSSecuritiesHongKongLimitedSubsidiariesMember2022-12-310001610520ubs:UbsSumiTrustWealthManagementCoLtdMember2022-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ForeignBondsBelowBBBMinusMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520country:CHubs:Age65Memberubs:MortalityTableSwitzerlandMember2021-12-310001610520country:USubs:Age65Memberubs:MortalityTableUSAMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:UbsSumiTrustWealthManagementCoLtdMember2022-01-012022-12-310001610520ubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberubs:UBSAGMember2021-12-310001610520country:USubs:UBSAGMemberubs:Age65Memberubs:MortalityTableUSAMember2022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:TopOfRangeMemberubs:AuctionRateSecuritiesMember2021-12-310001610520ifrs-full:MortgagesMemberifrs-full:WeightedAverageMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:MinusHalfPercentMember2022-01-012022-12-310001610520ifrs-full:EquityMemberifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:PlusFivePercentMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LandAndBuildingsAndEquipmentMember2021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:ComputerSoftwareMember2021-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanFiveYearsMember2021-12-310001610520ifrs-full:ReserveOfExchangeDifferencesOnTranslationMemberubs:UBSAGMember2022-12-310001610520ifrs-full:RightofuseAssetsMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520country:USubs:UBSAGMemberubs:Age45Memberubs:MortalityTableUSAMember2022-12-310001610520country:CHubs:UBSAGMemberubs:Age65Memberubs:MortalityTableSwitzerlandMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMember2022-12-310001610520srt:AmericasMemberubs:UBSAGMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:UBSAGMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2020-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:ComputerSoftwareMemberubs:UBSAGMember2022-12-310001610520ubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:OtherMaterialActuarialAssumptionsMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UBSAGMemberubs:PensionPlansMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:MortgagesMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:LandAndBuildingsAndEquipmentMember2021-12-310001610520ubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520srt:AsiaPacificMember2022-12-310001610520ifrs-full:FairValueHedgesMemberifrs-full:InterestRateRiskMemberubs:UBSAGMember2021-12-310001610520ubs:UBSAGMemberubs:InterestRateContractsNetMember2022-01-012022-12-310001610520ubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:ComputerSoftwareMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMember2022-12-310001610520ifrs-full:MortgagesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsBelowBBBMinusMember2022-12-310001610520ifrs-full:CashFlowHedgesMemberifrs-full:InterestRateRiskMemberubs:UBSAGMember2021-12-310001610520ubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquityInvestmentFundsMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:USAndGermanPensionPlansMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520srt:AmericasMemberubs:UBSAGMember2022-01-012022-12-310001610520srt:AsiaPacificMember2020-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:PlusOnePercentMember2022-01-012022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquitySecuritiesMember2021-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ActuarialAssumptionOfInterestCreditRateMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:ClearstreamFundCentreAGMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2022-12-310001610520ubs:ProjectsInProgressMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:WealthManagementBusinessInAustriaMember2022-01-012022-12-310001610520srt:AsiaPacificMemberubs:UBSAGMember2021-01-012021-12-310001610520srt:AsiaPacificMemberubs:UBSAGMember2020-12-310001610520ubs:UBSAGMemberubs:PensionPlansMemberubs:ActuarialAssumptionOfInterestCreditRateMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSFranceSASubsidiariesMember2022-12-310001610520srt:AmericasMember2022-12-310001610520ubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-01-012022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520country:CHubs:Age45Memberubs:MortalityTableSwitzerlandMember2022-12-310001610520ifrs-full:ReserveOfExchangeDifferencesOnTranslationMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMember2022-12-310001610520srt:AsiaPacificMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsInvestmentFundsBelowBBBMinusMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquityInvestmentFundsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquitySecuritiesMember2021-12-310001610520ubs:UBSAGMemberubs:LifetimeWeightedAverageMember2022-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:BaselineScenarioMember2022-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:MinusOnePercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:HousePriceIndexMemberubs:PlusTwoAndAHalfPercentMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:UpsideScenarioMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignEquityInvestmentFundsMember2021-12-310001610520ifrs-full:OtherReservesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:UBSAGMember2021-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:USAndGermanPensionPlansMember2021-01-012021-12-310001610520ubs:USAndGermanPensionPlansMemberubs:ActuarialAssumptionOfInterestCreditRateMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:LoansAndReceivablesCategoryMemberifrs-full:ParentMemberubs:UBSAGMember2022-01-012022-12-310001610520country:USubs:UBSAGMemberubs:Age45Memberubs:MortalityTableUSAMember2021-12-310001610520ubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-01-012022-12-310001610520ifrs-full:EquityInvestmentsMemberubs:UBSAGMember2021-01-012021-12-310001610520ubs:StructuredSecuritiesFinancingTransactionsMember2021-01-012021-12-310001610520ubs:CreditDerivativeContractsNetMember2022-01-012022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:UnemploymentRateMemberubs:MinusOnePercentMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberubs:UpsideScenarioMember2022-12-310001610520ubs:OtherClientCounterpartiesMemberubs:ModerateDownsideScenarioMemberMember2022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:GrossDomesticProductMemberubs:PlusTwoPercentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:OtherFinancialInstrumentsNetMember2022-01-012022-12-310001610520ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMemberubs:UBSAGMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520country:US2022-12-310001610520ubs:UBSAGMemberubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520country:GB2021-12-310001610520ubs:UBSAGMemberubs:OtherDefinedBenefitPlansMember2021-12-310001610520ifrs-full:OtherAssetsMember2022-01-012022-12-310001610520ubs:InvestmentFundsOnBalanceSheetMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:ActuarialAssumptionOfInterestCreditRateMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquitySecuritiesMember2022-12-310001610520ifrs-full:AssociatesMemberifrs-full:LoansAndReceivablesCategoryMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSSecuritiesJapanCoLtdSubsidiariesMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquitySecuritiesMember2021-12-310001610520srt:ParentCompanyMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2020-12-310001610520dei:BusinessContactMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:ActuarialAssumptionOfMortalityRatesMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsAAAToBBBMinusMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:DomesticBondsInvestmentFundsAAAToBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:InvestmentFundsOnBalanceSheetMember2021-12-310001610520country:DEubs:UBSAGMemberubs:Age45Memberubs:MortalityTableGermanyMember2021-12-310001610520country:GBubs:UBSAGMember2022-12-310001610520ubs:UbsAssetManagementLifeLtdSubsidiariesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520country:GBubs:Age45Memberubs:MortalityTableUKMember2022-12-310001610520srt:ReportableLegalEntitiesMemberubs:UBSAGMemberubs:UBSSwitzerlandAGGuarantorSubsidiariesMember2019-12-310001610520ubs:IncreaseDecreaseOfExpectedCreditLossesDueToOtherAllowanceAndProvisionMovementMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ModelAndMethodologyChangesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:InvestmentFundsOnBalanceSheetMember2022-12-310001610520ubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LandAndBuildingsAndEquipmentMember2022-12-310001610520ifrs-full:InvestmentFundsMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520srt:AmericasMemberubs:UBSAGMember2020-01-012020-12-310001610520ubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:KeyManagementPersonnelOfEntityOrParentMemberifrs-full:LoansAndReceivablesCategoryMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:CurrencyRiskMemberubs:UBSAGMember2021-12-310001610520ubs:UBSAGMemberubs:UbsSumiTrustWealthManagementCoLtdMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMemberubs:SwissPensionPlanMember2021-01-012021-12-310001610520ifrs-full:ActuarialAssumptionOfDiscountRatesMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:WeightedAverageMemberubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-12-310001610520ifrs-full:AssociatesMemberifrs-full:LoansAndReceivablesCategoryMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:KeyManagementPersonnelOfEntityOrParentMemberifrs-full:LoansAndReceivablesCategoryMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberifrs-full:CreditSpreadMeasurementInputMemberifrs-full:DiscountedCashFlowMemberifrs-full:Level3OfFairValueHierarchyMemberubs:AuctionRateSecuritiesMember2022-12-310001610520country:GB2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ModelAndMethodologyChangesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:USAndGermanPensionPlansMemberubs:DomesticEquitySecuritiesMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:ForeignEquitySecuritiesMember2022-12-310001610520ubs:UBSSecuritiesAustraliaLtdSubsidiariesMember2022-12-310001610520country:GBubs:UBSAGMember2021-12-310001610520ubs:RelatedPartiesEquityHoldingsMember2022-01-012022-12-310001610520ifrs-full:CurrencyRiskMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UKPensionPlanMemberubs:ForeignBondsBelowBBBMinusMember2022-12-310001610520ubs:UBSAGMemberubs:PensionPlansMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:UKPensionPlanMemberubs:ActuarialGainsLossesArisingFromExperienceAdjustmentsNetDefinedBenefitLiabilityAssetMember2021-01-012021-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:RightofuseAssetsMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:OtherMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2022-01-012022-12-310001610520ifrs-full:MortgagesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMember2021-01-012021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520srt:ParentCompanyMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2019-12-310001610520ifrs-full:ActuarialAssumptionOfMortalityRatesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:ChangesDueToSICRStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherMemberubs:ChangesDueToSICRStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:SegmentGWMMember2020-12-310001610520ubs:UBSAGMemberubs:SegmentPCBMember2020-12-310001610520ubs:UBSAGMemberubs:SegmentAMMember2020-12-310001610520ubs:UBSAGMemberubs:SegmentIBMember2020-12-310001610520ubs:UBSAGMemberubs:SegmentGFMember2020-12-310001610520ubs:SegmentGWMMember2020-12-310001610520ubs:SegmentPCBMember2020-12-310001610520ubs:SegmentAMMember2020-12-310001610520ubs:SegmentIBMember2020-12-310001610520ubs:SegmentGFMember2020-12-310001610520ubs:GoodsOrServicesTransferredOnRecurringBasisMember2022-01-012022-12-310001610520ubs:GoodsOrServicesTransferredOnRecurringBasisMember2021-01-012021-12-310001610520ubs:GoodsOrServicesTransferredOnRecurringBasisMember2020-01-012020-12-310001610520ifrs-full:GoodsOrServicesTransferredAtPointInTimeMember2022-01-012022-12-310001610520ifrs-full:GoodsOrServicesTransferredAtPointInTimeMember2021-01-012021-12-310001610520ifrs-full:GoodsOrServicesTransferredAtPointInTimeMember2020-01-012020-12-310001610520ubs:GoodsOrServicesTransferredOnPerformancebasedBasisMember2022-01-012022-12-310001610520ubs:GoodsOrServicesTransferredOnPerformancebasedBasisMember2021-01-012021-12-310001610520ubs:GoodsOrServicesTransferredOnPerformancebasedBasisMember2020-01-012020-12-310001610520ifrs-full:ForwardContractMemberifrs-full:InterestRateRiskMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:ForwardContractMemberifrs-full:InterestRateRiskMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:SwapContractMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:SwapContractMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:OptionContractMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:OptionContractMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:FuturesContractMemberifrs-full:InterestRateRiskMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:FuturesContractMemberifrs-full:InterestRateRiskMemberubs:ExchangeTradedMember2021-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:OptionContractMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:OptionContractMemberubs:ExchangeTradedMember2021-12-310001610520ifrs-full:CreditRiskMemberubs:CreditDefaultSwapMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:CreditRiskMemberubs:CreditDefaultSwapMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:CreditRiskMemberubs:TotalReturnSwapMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:CreditRiskMemberubs:TotalReturnSwapMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:ForwardContractMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:ForwardContractMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:SwapContractMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:SwapContractMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:OptionContractMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:OptionContractMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:SwapContractMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:SwapContractMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:OptionContractMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:OptionContractMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:FuturesContractMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:FuturesContractMemberubs:ExchangeTradedMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:OptionContractMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:OptionContractMemberubs:ExchangeTradedMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberubs:AgencyTransactionsMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberubs:AgencyTransactionsMemberubs:ExchangeTradedMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:SwapContractMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:SwapContractMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:OptionContractMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:OptionContractMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:FuturesContractMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:FuturesContractMemberubs:ExchangeTradedMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:ForwardContractMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:ForwardContractMemberubs:ExchangeTradedMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:AgencyTransactionsMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:AgencyTransactionsMemberubs:ExchangeTradedMember2021-12-310001610520ifrs-full:LoanCommitmentsMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:OverTheCounterMember2021-12-310001610520ubs:UnsettledPurchaseOfNonDerivativeFinancialInstrumentsMember2022-12-310001610520ubs:UnsettledPurchaseOfNonDerivativeFinancialInstrumentsMember2021-12-310001610520ubs:UnsettledSalesOfNonDerivativeFinancialInstrumentsMember2022-12-310001610520ubs:UnsettledSalesOfNonDerivativeFinancialInstrumentsMember2021-12-310001610520ifrs-full:CreditRiskMember2022-12-310001610520ifrs-full:CreditRiskMember2021-12-310001610520ifrs-full:CreditRiskMemberubs:UBSAGMember2022-12-310001610520ifrs-full:CreditRiskMemberubs:UBSAGMember2021-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:LoanCommitmentsMemberubs:UBSAGMemberubs:OverTheCounterMember2021-12-310001610520ubs:UBSAGMemberubs:UnsettledPurchaseOfNonDerivativeFinancialInstrumentsMember2022-12-310001610520ubs:UBSAGMemberubs:UnsettledPurchaseOfNonDerivativeFinancialInstrumentsMember2021-12-310001610520ubs:UBSAGMemberubs:UnsettledSalesOfNonDerivativeFinancialInstrumentsMember2022-12-310001610520ubs:UBSAGMemberubs:UnsettledSalesOfNonDerivativeFinancialInstrumentsMember2021-12-310001610520ifrs-full:ForwardContractMemberifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:ForwardContractMemberifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:SwapContractMemberubs:UBSAGMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:SwapContractMemberubs:UBSAGMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:OptionContractMemberubs:UBSAGMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:OptionContractMemberubs:UBSAGMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:FuturesContractMemberifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:FuturesContractMemberifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:ExchangeTradedMember2021-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:OptionContractMemberubs:UBSAGMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:InterestRateRiskMemberifrs-full:OptionContractMemberubs:UBSAGMemberubs:ExchangeTradedMember2021-12-310001610520ifrs-full:CreditRiskMemberubs:UBSAGMemberubs:CreditDefaultSwapMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:CreditRiskMemberubs:UBSAGMemberubs:CreditDefaultSwapMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:CreditRiskMemberubs:UBSAGMemberubs:TotalReturnSwapMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:CreditRiskMemberubs:UBSAGMemberubs:TotalReturnSwapMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:ForwardContractMemberubs:UBSAGMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:ForwardContractMemberubs:UBSAGMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:SwapContractMemberubs:UBSAGMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:SwapContractMemberubs:UBSAGMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:OptionContractMemberubs:UBSAGMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:CurrencyRiskMemberifrs-full:OptionContractMemberubs:UBSAGMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:SwapContractMemberubs:UBSAGMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:SwapContractMemberubs:UBSAGMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:OptionContractMemberubs:UBSAGMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:OptionContractMemberubs:UBSAGMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:FuturesContractMemberubs:UBSAGMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:FuturesContractMemberubs:UBSAGMemberubs:ExchangeTradedMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:OptionContractMemberubs:UBSAGMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberifrs-full:OptionContractMemberubs:UBSAGMemberubs:ExchangeTradedMember2021-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMemberubs:AgencyTransactionsMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:EquityPriceRiskMemberubs:UBSAGMemberubs:AgencyTransactionsMemberubs:ExchangeTradedMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:SwapContractMemberubs:UBSAGMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:SwapContractMemberubs:UBSAGMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:OptionContractMemberubs:UBSAGMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:OptionContractMemberubs:UBSAGMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:FuturesContractMemberubs:UBSAGMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:FuturesContractMemberubs:UBSAGMemberubs:ExchangeTradedMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:ForwardContractMemberubs:UBSAGMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberifrs-full:ForwardContractMemberubs:UBSAGMemberubs:ExchangeTradedMember2021-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMemberubs:AgencyTransactionsMemberubs:ExchangeTradedMember2022-12-310001610520ifrs-full:CommodityPriceRiskMemberubs:UBSAGMemberubs:AgencyTransactionsMemberubs:ExchangeTradedMember2021-12-310001610520ubs:SegmentGWMAmericasCashGeneratingUnitMember2022-12-310001610520ubs:SegmentGWMAmericasCashGeneratingUnitMember2021-12-310001610520ubs:SegmentGWMExAmericasCashGeneratingUnitMember2022-12-310001610520ubs:SegmentGWMExAmericasCashGeneratingUnitMember2021-12-310001610520ubs:SegmentAMMember2022-12-310001610520ubs:SegmentAMMember2021-12-310001610520ifrs-full:AggregatedMeasurementMemberifrs-full:ClassesOfAssetsMember2022-12-310001610520ifrs-full:AggregatedMeasurementMemberifrs-full:ClassesOfAssetsMember2021-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:NotSpecifiedLevelOfFairValueHierarchyMember2022-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2022-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:Level2OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2022-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2022-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2022-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2021-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:NotSpecifiedLevelOfFairValueHierarchyMember2021-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2021-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:Level2OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2021-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2021-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2022-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMemberubs:NotSpecifiedLevelOfFairValueHierarchyMember2022-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2022-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:Level2OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2022-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2022-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2021-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMemberubs:NotSpecifiedLevelOfFairValueHierarchyMember2021-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2021-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:Level2OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2021-12-310001610520ifrs-full:ClassesOfAssetsMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AggregatedMeasurementMemberifrs-full:ClassesOfAssetsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:AggregatedMeasurementMemberifrs-full:ClassesOfAssetsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AggregatedMeasurementMemberubs:UBSAGMember2022-12-310001610520ifrs-full:AggregatedMeasurementMemberubs:UBSAGMember2021-12-310001610520ifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2022-12-310001610520ifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMemberubs:NotSpecifiedLevelOfFairValueHierarchyMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2022-12-310001610520ifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2021-12-310001610520ifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMemberubs:NotSpecifiedLevelOfFairValueHierarchyMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:UBSAGMember2021-12-310001610520ifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2022-12-310001610520ifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:NotSpecifiedLevelOfFairValueHierarchyMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2022-12-310001610520ifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2021-12-310001610520ifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMemberubs:NotSpecifiedLevelOfFairValueHierarchyMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember2021-12-310001610520ifrs-full:AggregatedMeasurementMember2021-12-310001610520ifrs-full:AggregatedMeasurementMember2022-12-310001610520ifrs-full:LegalProceedingsProvisionMember2022-01-012022-12-310001610520ifrs-full:RestructuringProvisionMember2022-01-012022-12-310001610520ifrs-full:MiscellaneousOtherProvisionsMember2022-01-012022-12-310001610520ifrs-full:LegalProceedingsProvisionMember2022-12-310001610520ifrs-full:RestructuringProvisionMember2022-12-310001610520ifrs-full:MiscellaneousOtherProvisionsMember2022-12-310001610520ifrs-full:LegalProceedingsProvisionMember2021-12-310001610520ifrs-full:RestructuringProvisionMember2021-12-310001610520ifrs-full:MiscellaneousOtherProvisionsMember2021-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMember2022-12-310001610520ifrs-full:RestructuringProvisionMemberubs:UBSAGMember2022-12-310001610520ifrs-full:MiscellaneousOtherProvisionsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMember2021-12-310001610520ifrs-full:RestructuringProvisionMemberubs:UBSAGMember2021-12-310001610520ifrs-full:MiscellaneousOtherProvisionsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:RestructuringProvisionMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:MiscellaneousOtherProvisionsMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:SegmentGWMMember2022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:SegmentPCBMember2022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:SegmentIBMember2022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:SegmentGFMember2022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:SegmentGWMMember2021-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:SegmentPCBMember2021-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:SegmentAMMember2021-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:SegmentIBMember2021-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:SegmentGFMember2021-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:SegmentGWMMember2022-01-012022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:SegmentPCBMember2022-01-012022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:SegmentAMMember2022-01-012022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:SegmentIBMember2022-01-012022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:SegmentGFMember2022-01-012022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMemberubs:SegmentGWMMember2022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMemberubs:SegmentPCBMember2022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMemberubs:SegmentIBMember2022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMemberubs:SegmentGFMember2022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMemberubs:SegmentGWMMember2021-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMemberubs:SegmentPCBMember2021-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMemberubs:SegmentAMMember2021-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMemberubs:SegmentIBMember2021-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMemberubs:SegmentGFMember2021-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMemberubs:SegmentGWMMember2022-01-012022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMemberubs:SegmentPCBMember2022-01-012022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMemberubs:SegmentAMMember2022-01-012022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMemberubs:SegmentIBMember2022-01-012022-12-310001610520ifrs-full:LegalProceedingsProvisionMemberubs:UBSAGMemberubs:SegmentGFMember2022-01-012022-12-310001610520ifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:LombardLoanMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2021-12-310001610520ubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ubs:UBSAGMemberubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2021-12-310001610520ubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2021-12-310001610520ubs:UBSGroupEntitiesExcludingUBSAGMember2022-12-310001610520ubs:UBSGroupEntitiesExcludingUBSAGMember2022-01-012022-12-310001610520ubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2022-12-310001610520ifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:CorporateLoansMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMember2022-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2022-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2022-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMember2022-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:Level1OfFairValueHierarchyMember2022-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:Level2OfFairValueHierarchyMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:GovernmentBillsBondsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:GovernmentBillsBondsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:GovernmentBillsBondsMember2022-12-310001610520ifrs-full:InvestmentFundsMemberifrs-full:Level1OfFairValueHierarchyMember2022-12-310001610520ifrs-full:InvestmentFundsMemberifrs-full:Level2OfFairValueHierarchyMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:CorporateAndMunicipalBondsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:CorporateAndMunicipalBondsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:AssetBackedSecuritiesMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:AssetBackedSecuritiesMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:AssetBackedSecuritiesMember2022-12-310001610520ifrs-full:EquityInvestmentsMember2022-12-310001610520ubs:GovernmentBillsBondsMember2022-12-310001610520ifrs-full:InvestmentFundsMember2022-12-310001610520ubs:CorporateAndMunicipalBondsMember2022-12-310001610520ubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:AssetBackedSecuritiesMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:ForeignExchangeContractsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:ForeignExchangeContractsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:ForeignExchangeContractsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:InterestRateContractsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:InterestRateContractsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:InterestRateContractsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:EquityIndexContractsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:EquityIndexContractsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:EquityIndexContractsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:CommodityContractsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:CommodityContractsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:CommodityContractsMember2022-12-310001610520ubs:ForeignExchangeContractsMember2022-12-310001610520ubs:InterestRateContractsMember2022-12-310001610520ubs:EquityIndexContractsMember2022-12-310001610520ubs:CreditDerivativeContractsMember2022-12-310001610520ubs:CommodityContractsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:StructuredSecuritiesFinancingTransactionsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:StructuredSecuritiesFinancingTransactionsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:StructuredSecuritiesFinancingTransactionsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:AuctionRateSecuritiesMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:AuctionRateSecuritiesMember2022-12-310001610520ubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2022-12-310001610520ubs:StructuredSecuritiesFinancingTransactionsMember2022-12-310001610520ubs:AuctionRateSecuritiesMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ubs:AssetBackedSecuritiesMember2021-12-310001610520ubs:GovernmentBillsBondsMember2021-12-310001610520ubs:CorporateAndMunicipalBondsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:AssetBackedSecuritiesMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:AssetBackedSecuritiesMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:AssetBackedSecuritiesMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:GovernmentBillsBondsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:GovernmentBillsBondsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:GovernmentBillsBondsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:CorporateAndMunicipalBondsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:CorporateAndMunicipalBondsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2021-12-310001610520ubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:StructuredSecuritiesFinancingTransactionsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:StructuredSecuritiesFinancingTransactionsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:StructuredSecuritiesFinancingTransactionsMember2021-12-310001610520ubs:StructuredSecuritiesFinancingTransactionsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:AuctionRateSecuritiesMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:AuctionRateSecuritiesMember2021-12-310001610520ubs:AuctionRateSecuritiesMember2021-12-310001610520ifrs-full:InvestmentFundsMemberifrs-full:Level1OfFairValueHierarchyMember2021-12-310001610520ifrs-full:InvestmentFundsMemberifrs-full:Level2OfFairValueHierarchyMember2021-12-310001610520ifrs-full:InvestmentFundsMember2021-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:Level1OfFairValueHierarchyMember2021-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:Level2OfFairValueHierarchyMember2021-12-310001610520ifrs-full:EquityInvestmentsMember2021-12-310001610520ubs:ForeignExchangeContractsMember2021-12-310001610520ubs:InterestRateContractsMember2021-12-310001610520ubs:EquityIndexContractsMember2021-12-310001610520ubs:CreditDerivativeContractsMember2021-12-310001610520ubs:CommodityContractsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:ForeignExchangeContractsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:ForeignExchangeContractsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:ForeignExchangeContractsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:InterestRateContractsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:InterestRateContractsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:InterestRateContractsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:EquityIndexContractsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:EquityIndexContractsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:EquityIndexContractsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:CommodityContractsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:CommodityContractsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:CommodityContractsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnBalanceSheetFinancialInstrumentsMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:AmountDueUnderUnitLinkedInvestmentContractsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:AmountDueUnderUnitLinkedInvestmentContractsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:AmountDueUnderUnitLinkedInvestmentContractsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:OverTheCounterDebtInstrumentsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:OverTheCounterDebtInstrumentsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:OverTheCounterDebtInstrumentsMember2022-12-310001610520ubs:AmountDueUnderUnitLinkedInvestmentContractsMember2022-12-310001610520ubs:OverTheCounterDebtInstrumentsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:AmountDueUnderUnitLinkedInvestmentContractsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:AmountDueUnderUnitLinkedInvestmentContractsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:AmountDueUnderUnitLinkedInvestmentContractsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:OverTheCounterDebtInstrumentsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:OverTheCounterDebtInstrumentsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:OverTheCounterDebtInstrumentsMember2021-12-310001610520ubs:AmountDueUnderUnitLinkedInvestmentContractsMember2021-12-310001610520ubs:OverTheCounterDebtInstrumentsMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:FinancialIntermediariesAndHedgeFundsMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:LombardLoanMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:LoanCommitmentsMember2022-12-310001610520ubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:CorporateLoansMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2022-12-310001610520ubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LombardLoanMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMember2022-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2022-12-310001610520ubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMember2021-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2021-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2021-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnBalanceSheetFinancialInstrumentsMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:FinancialIntermediariesAndHedgeFundsMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:LombardLoanMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:LoanCommitmentsMember2021-12-310001610520ubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2021-12-310001610520ubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LombardLoanMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LoanCommitmentsMemberifrs-full:TwelvemonthExpectedCreditLossesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMember2021-12-310001610520ifrs-full:FinancialGuaranteeContractsMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:LoanCommitmentsMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommittedRevocableCreditLinesMemberubs:CommodityTradeFinanceMember2021-12-310001610520dei:BusinessContactMember2022-01-012022-12-310001610520ubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:MortgagesMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:CorporateLoansMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ubs:USPensionPlansMember2022-12-310001610520ubs:USPensionPlansMember2021-12-310001610520ubs:GermanPensionPlansMember2022-12-310001610520ubs:GermanPensionPlansMember2021-12-310001610520ifrs-full:IssuedCapitalMember2019-12-310001610520ifrs-full:SharePremiumMember2019-12-310001610520ifrs-full:TreasurySharesMember2019-12-310001610520ifrs-full:RetainedEarningsMember2019-12-310001610520ifrs-full:IssuedCapitalMember2020-12-310001610520ifrs-full:SharePremiumMember2020-12-310001610520ifrs-full:TreasurySharesMember2020-12-310001610520ifrs-full:RetainedEarningsMember2020-12-310001610520ifrs-full:IssuedCapitalMember2021-12-310001610520ifrs-full:SharePremiumMember2021-12-310001610520ifrs-full:TreasurySharesMember2021-12-310001610520ifrs-full:RetainedEarningsMember2021-12-310001610520ifrs-full:IssuedCapitalMember2022-12-310001610520ifrs-full:SharePremiumMember2022-12-310001610520ifrs-full:TreasurySharesMember2022-12-310001610520ifrs-full:RetainedEarningsMember2022-12-310001610520ifrs-full:SharePremiumMember2020-01-012020-12-310001610520ifrs-full:TreasurySharesMember2020-01-012020-12-310001610520ifrs-full:RetainedEarningsMember2020-01-012020-12-310001610520ifrs-full:IssuedCapitalMember2021-01-012021-12-310001610520ifrs-full:SharePremiumMember2021-01-012021-12-310001610520ifrs-full:TreasurySharesMember2021-01-012021-12-310001610520ifrs-full:RetainedEarningsMember2021-01-012021-12-310001610520ifrs-full:IssuedCapitalMember2022-01-012022-12-310001610520ifrs-full:SharePremiumMember2022-01-012022-12-310001610520ifrs-full:TreasurySharesMember2022-01-012022-12-310001610520ifrs-full:RetainedEarningsMember2022-01-012022-12-310001610520ifrs-full:OtherReservesMember2019-12-310001610520ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2019-12-310001610520ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember2019-12-310001610520ifrs-full:ReserveOfCashFlowHedgesMember2019-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMember2019-12-310001610520ifrs-full:NoncontrollingInterestsMember2019-12-310001610520ifrs-full:OtherReservesMember2020-12-310001610520ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2020-12-310001610520ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember2020-12-310001610520ifrs-full:ReserveOfCashFlowHedgesMember2020-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMember2020-12-310001610520ifrs-full:NoncontrollingInterestsMember2020-12-310001610520ifrs-full:OtherReservesMember2021-12-310001610520ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2021-12-310001610520ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember2021-12-310001610520ifrs-full:ReserveOfCashFlowHedgesMember2021-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMember2021-12-310001610520ifrs-full:NoncontrollingInterestsMember2021-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMember2022-12-310001610520ifrs-full:NoncontrollingInterestsMember2022-12-310001610520ifrs-full:OtherReservesMember2022-12-310001610520ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2022-12-310001610520ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember2022-12-310001610520ifrs-full:ReserveOfCashFlowHedgesMember2022-12-310001610520ifrs-full:OtherReservesMember2020-01-012020-12-310001610520ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2020-01-012020-12-310001610520ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember2020-01-012020-12-310001610520ifrs-full:ReserveOfCashFlowHedgesMember2020-01-012020-12-310001610520ifrs-full:OtherReservesMember2021-01-012021-12-310001610520ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember2021-01-012021-12-310001610520ifrs-full:ReserveOfCashFlowHedgesMember2021-01-012021-12-310001610520ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2021-01-012021-12-310001610520ifrs-full:OtherReservesMember2022-01-012022-12-310001610520ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember2022-01-012022-12-310001610520ifrs-full:ReserveOfCashFlowHedgesMember2022-01-012022-12-310001610520ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2022-01-012022-12-310001610520ifrs-full:OtherReservesMemberubs:UBSAGMember2019-12-310001610520ifrs-full:ReserveOfExchangeDifferencesOnTranslationMemberubs:UBSAGMember2019-12-310001610520ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMemberubs:UBSAGMember2019-12-310001610520ifrs-full:ReserveOfCashFlowHedgesMemberubs:UBSAGMember2019-12-310001610520ifrs-full:EquityAttributableToOwnersOfParentMemberubs:UBSAGMember2019-12-310001610520ifrs-full:NoncontrollingInterestsMemberubs:UBSAGMember2019-12-310001610520ifrs-full:IssuedCapitalMemberubs:UBSAGMember2019-12-310001610520ifrs-full:SharePremiumMemberubs:UBSAGMember2019-12-310001610520ifrs-full:RetainedEarningsMemberubs:UBSAGMember2019-12-310001610520ifrs-full:IssuedCapitalMemberubs:UBSAGMember2020-12-310001610520ifrs-full:SharePremiumMemberubs:UBSAGMember2020-12-310001610520ifrs-full:RetainedEarningsMemberubs:UBSAGMember2020-12-310001610520ifrs-full:IssuedCapitalMemberubs:UBSAGMember2021-12-310001610520ifrs-full:SharePremiumMemberubs:UBSAGMember2021-12-310001610520ifrs-full:RetainedEarningsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:IssuedCapitalMemberubs:UBSAGMember2022-12-310001610520ifrs-full:SharePremiumMemberubs:UBSAGMember2022-12-310001610520ifrs-full:RetainedEarningsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:SharePremiumMemberubs:UBSAGMember2020-01-012020-12-310001610520ifrs-full:RetainedEarningsMemberubs:UBSAGMember2020-01-012020-12-310001610520ifrs-full:SharePremiumMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:RetainedEarningsMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:SharePremiumMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:RetainedEarningsMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2022-12-310001610520ubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:MortgagesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:UBSAGMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:UBSAGMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:UBSAGMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:UBSAGMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:UBSAGMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2022-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:InvestmentFundsMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:InvestmentFundsMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:InvestmentFundsMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2021-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2022-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2022-01-012022-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2022-01-012022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2022-01-012022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2022-01-012022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2020-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2020-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2021-01-012021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2020-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2020-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2020-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:InvestmentFundsMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2021-01-012021-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2020-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2020-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2020-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2020-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2020-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:InvestmentFundsMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2020-12-310001610520ubs:UBSAGMemberubs:USPensionPlansMember2022-12-310001610520ubs:UBSAGMemberubs:USPensionPlansMember2021-12-310001610520ubs:UBSAGMemberubs:GermanPensionPlansMember2022-12-310001610520ubs:UBSAGMemberubs:GermanPensionPlansMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2021-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMember2022-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMember2022-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:GovernmentBillsBondsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:GovernmentBillsBondsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:GovernmentBillsBondsMember2022-12-310001610520ifrs-full:InvestmentFundsMemberifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMember2022-12-310001610520ifrs-full:InvestmentFundsMemberifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMember2022-12-310001610520ifrs-full:InvestmentFundsMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:AssetBackedSecuritiesMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:AssetBackedSecuritiesMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:AssetBackedSecuritiesMember2022-12-310001610520ifrs-full:EquityInvestmentsMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:GovernmentBillsBondsMember2022-12-310001610520ifrs-full:InvestmentFundsMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2022-12-310001610520ubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ubs:UBSAGMemberubs:AssetBackedSecuritiesMember2022-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMember2021-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMember2021-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:GovernmentBillsBondsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:GovernmentBillsBondsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:GovernmentBillsBondsMember2021-12-310001610520ifrs-full:InvestmentFundsMemberifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMember2021-12-310001610520ifrs-full:InvestmentFundsMemberifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMember2021-12-310001610520ifrs-full:InvestmentFundsMemberifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:AssetBackedSecuritiesMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:AssetBackedSecuritiesMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:AssetBackedSecuritiesMember2021-12-310001610520ifrs-full:EquityInvestmentsMemberubs:UBSAGMember2021-12-310001610520ubs:UBSAGMemberubs:GovernmentBillsBondsMember2021-12-310001610520ifrs-full:InvestmentFundsMemberubs:UBSAGMember2021-12-310001610520ubs:UBSAGMemberubs:CorporateAndMunicipalBondsMember2021-12-310001610520ubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ubs:UBSAGMemberubs:AssetBackedSecuritiesMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:ForeignExchangeContractsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:ForeignExchangeContractsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:ForeignExchangeContractsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:CommodityContractsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:CommodityContractsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CommodityContractsMember2022-12-310001610520ubs:UBSAGMemberubs:ForeignExchangeContractsMember2022-12-310001610520ubs:UBSAGMemberubs:InterestRateContractsMember2022-12-310001610520ubs:UBSAGMemberubs:EquityIndexContractsMember2022-12-310001610520ubs:UBSAGMemberubs:CreditDerivativeContractsMember2022-12-310001610520ubs:UBSAGMemberubs:CommodityContractsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:ForeignExchangeContractsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:ForeignExchangeContractsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:ForeignExchangeContractsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:CommodityContractsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:CommodityContractsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CommodityContractsMember2021-12-310001610520ubs:UBSAGMemberubs:ForeignExchangeContractsMember2021-12-310001610520ubs:UBSAGMemberubs:InterestRateContractsMember2021-12-310001610520ubs:UBSAGMemberubs:EquityIndexContractsMember2021-12-310001610520ubs:UBSAGMemberubs:CreditDerivativeContractsMember2021-12-310001610520ubs:UBSAGMemberubs:CommodityContractsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2022-12-310001610520ubs:UBSAGMemberubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2021-12-310001610520ubs:UBSAGMemberubs:FinancialAssetsForUnitLinkedInvestmentContractsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:StructuredSecuritiesFinancingTransactionsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:StructuredSecuritiesFinancingTransactionsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:StructuredSecuritiesFinancingTransactionsMember2022-12-310001610520ubs:UBSAGMemberubs:StructuredSecuritiesFinancingTransactionsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:StructuredSecuritiesFinancingTransactionsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:StructuredSecuritiesFinancingTransactionsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:StructuredSecuritiesFinancingTransactionsMember2021-12-310001610520ubs:UBSAGMemberubs:StructuredSecuritiesFinancingTransactionsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2022-12-310001610520ubs:UBSAGMemberubs:AuctionRateSecuritiesMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:AuctionRateSecuritiesMember2021-12-310001610520ubs:UBSAGMemberubs:AuctionRateSecuritiesMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:AmountDueUnderUnitLinkedInvestmentContractsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:AmountDueUnderUnitLinkedInvestmentContractsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:AmountDueUnderUnitLinkedInvestmentContractsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:OverTheCounterDebtInstrumentsMember2022-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:OverTheCounterDebtInstrumentsMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:OverTheCounterDebtInstrumentsMember2022-12-310001610520ubs:UBSAGMemberubs:AmountDueUnderUnitLinkedInvestmentContractsMember2022-12-310001610520ubs:UBSAGMemberubs:OverTheCounterDebtInstrumentsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:AmountDueUnderUnitLinkedInvestmentContractsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:AmountDueUnderUnitLinkedInvestmentContractsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:AmountDueUnderUnitLinkedInvestmentContractsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:OverTheCounterDebtInstrumentsMember2021-12-310001610520ifrs-full:Level2OfFairValueHierarchyMemberubs:UBSAGMemberubs:OverTheCounterDebtInstrumentsMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:OverTheCounterDebtInstrumentsMember2021-12-310001610520ubs:UBSAGMemberubs:AmountDueUnderUnitLinkedInvestmentContractsMember2021-12-310001610520ubs:UBSAGMemberubs:OverTheCounterDebtInstrumentsMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMember2022-01-012022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2022-01-012022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:InterestRateContractsMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:EquityIndexContractsMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:InterestRateContractsMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:EquityIndexContractsMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:InterestRateContractsMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:EquityIndexContractsMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:InvestmentFundsMemberifrs-full:Level3OfFairValueHierarchyMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CorporateAndMunicipalBondsMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:InvestmentFundsMemberifrs-full:Level3OfFairValueHierarchyMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CorporateAndMunicipalBondsMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:InvestmentFundsMemberifrs-full:Level3OfFairValueHierarchyMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CorporateAndMunicipalBondsMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:InterestRateContractsMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:EquityIndexContractsMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:InterestRateContractsMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:EquityIndexContractsMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:InterestRateContractsMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:EquityIndexContractsMember2022-01-012022-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:AuctionRateSecuritiesMember2022-01-012022-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMember2022-01-012022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:AuctionRateSecuritiesMember2021-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:AuctionRateSecuritiesMember2022-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:MortgagesMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:CorporateLoansMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:RealEstateLoanMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:SmallMediumEnterpriseMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LombardLoanMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CreditCardMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:CommodityTradeFinanceMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMemberubs:OtherLoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:AllowanceForCreditLossesMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OnbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:MortgagesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:UBSAGMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:CorporateLoansMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:UBSAGMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:UBSAGMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:UBSAGMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:UBSAGMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:MortgagesMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:RealEstateLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:RealEstateLendingMember2021-12-310001610520ifrs-full:CorporateLoansMemberifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:CorporateLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SmallMediumEnterpriseMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LombardLoanMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:CreditCardMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:CommodityTradeFinanceMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:FinancialIntermediariesAndHedgeFundsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OtherOffbalanceSheetCommitmentsMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMemberubs:OtherLendingMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:OffbalanceSheetLoanPortfolioMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMember2020-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:InvestmentFundsMemberifrs-full:Level3OfFairValueHierarchyMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CorporateAndMunicipalBondsMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:InvestmentFundsMemberifrs-full:Level3OfFairValueHierarchyMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CorporateAndMunicipalBondsMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossClassifiedAsHeldForTradingCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:InterestRateContractsMember2020-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:EquityIndexContractsMember2020-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2020-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:InterestRateContractsMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:EquityIndexContractsMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:AuctionRateSecuritiesMember2020-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMember2020-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:LoansAndAdvancesToCustomersMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberubs:AuctionRateSecuritiesMember2021-01-012021-12-310001610520ifrs-full:EquityInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryMemberifrs-full:Level3OfFairValueHierarchyMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMember2020-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2020-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2020-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMember2021-01-012021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2021-01-012021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:InterestRateContractsMember2020-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:EquityIndexContractsMember2020-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2020-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:InterestRateContractsMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:EquityIndexContractsMember2021-01-012021-12-310001610520ifrs-full:DerivativesMemberifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsMember2021-01-012021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:InterestRateContractsNetMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:InterestRateContractsNetMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsNetMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:CreditDerivativeContractsNetMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:EquityIndexContractsNetMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:EquityIndexContractsNetMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:TradedLoansLoansAtFairValueLoanCommitmentsAndGuaranteesMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsNetMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:InterestRateContractsNetMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsNetMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:CreditDerivativeContractsNetMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsNetMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:EquityIndexContractsNetMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:DebtSecuritiesIssuedAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2021-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMemberubs:OtherFinancialLiabilitiesAtFairValueThroughProfitOrLossDesignatedAsUponInitialRecognitionMember2021-12-310001610520ubs:ClearstreamFundCentreAGMember2020-01-012020-12-310001610520ubs:SegmentGWMMemberubs:ClearstreamFundCentreAGMember2020-01-012020-12-310001610520ubs:SegmentAMMemberubs:ClearstreamFundCentreAGMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:ClearstreamFundCentreAGMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:SegmentAMMemberubs:ClearstreamFundCentreAGMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:SegmentGWMMemberubs:ClearstreamFundCentreAGMember2020-01-012020-12-310001610520ubs:IncreaseDecreaseDueToModificationOfDeferredCompensationAwardsMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SegmentGWMMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SegmentPCBMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SegmentAMMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SegmentIBMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SegmentGFMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentGWMMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentPCBMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentAMMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentIBMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentGFMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentGWMMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentPCBMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentAMMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentIBMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentGFMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SegmentGWMMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SegmentPCBMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SegmentAMMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SegmentIBMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SegmentGFMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SegmentGWMMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SegmentPCBMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SegmentAMMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SegmentIBMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:SegmentGFMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentGWMMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentPCBMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentAMMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentIBMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentGFMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMember2021-12-310001610520ubs:PlusOneBasisPointsMember2022-12-310001610520ubs:ParallelUpInterestRateShockScenarioMember2022-12-310001610520ubs:PlusOneBasisPointsMember2021-12-310001610520ubs:ParallelUpInterestRateShockScenarioMember2021-12-310001610520ubs:UBSAGMemberubs:PlusOneBasisPointsMember2022-12-310001610520ubs:UBSAGMemberubs:ParallelUpInterestRateShockScenarioMember2022-12-310001610520ubs:UBSAGMemberubs:PlusOneBasisPointsMember2021-12-310001610520ubs:UBSAGMemberubs:ParallelUpInterestRateShockScenarioMember2021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentGWMMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentPCBMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentAMMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentIBMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentGFMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SegmentGWMMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SegmentPCBMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SegmentAMMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SegmentIBMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SegmentGFMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SegmentGWMMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SegmentPCBMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SegmentAMMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SegmentIBMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SegmentGFMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentGWMMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentPCBMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentAMMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentIBMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentGFMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentGWMMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentPCBMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentAMMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentIBMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentGFMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SegmentGWMMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SegmentPCBMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SegmentAMMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SegmentIBMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:SegmentGFMember2020-01-012020-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMember2020-01-012020-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:NotLaterThanOneMonthMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanFiveYearsMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FloatingInterestRateMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:NotLaterThanOneMonthMemberubs:SubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMemberubs:SubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMemberubs:SubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberubs:SubordinatedDebtMemberubs:MiscellaneousTimeBandsMember2022-12-310001610520ifrs-full:FixedInterestRateMemberubs:SubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:NotLaterThanOneMonthMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanFiveYearsMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:NotLaterThanOneMonthMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanFiveYearsMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FloatingInterestRateMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:SubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMemberubs:SubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberubs:SubordinatedDebtMemberubs:MiscellaneousTimeBandsMember2021-12-310001610520ifrs-full:FixedInterestRateMemberubs:SubordinatedDebtMember2021-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:NotLaterThanOneMonthMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanFiveYearsMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:NotLaterThanOneMonthMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:NotLaterThanOneMonthMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanFiveYearsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FloatingInterestRateMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMemberubs:UBSAGMemberubs:SubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMemberubs:UBSAGMemberubs:SubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberubs:UBSAGMemberubs:SubordinatedDebtMember2022-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanFiveYearsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2022-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:NotLaterThanOneMonthMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanFiveYearsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:NotLaterThanOneMonthMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FloatingInterestRateMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:UBSAGMemberubs:SubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMemberubs:UBSAGMemberubs:SubordinatedDebtMember2021-12-310001610520ifrs-full:FixedInterestRateMemberubs:UBSAGMemberubs:SubordinatedDebtMember2021-12-310001610520ifrs-full:FloatingInterestRateMemberifrs-full:LaterThanFiveYearsMemberubs:UBSAGMemberubs:NonSubordinatedDebtMember2021-12-310001610520ifrs-full:GoodwillMemberifrs-full:GrossCarryingAmountMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:IntangibleAssetsOtherThanGoodwillMember2022-01-012022-12-310001610520ifrs-full:GoodwillMemberifrs-full:GrossCarryingAmountMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:IntangibleAssetsOtherThanGoodwillMember2022-12-310001610520ifrs-full:GoodwillMemberifrs-full:GrossCarryingAmountMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:IntangibleAssetsOtherThanGoodwillMember2021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:IntangibleAssetsOtherThanGoodwillMember2022-01-012022-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:IntangibleAssetsOtherThanGoodwillMember2022-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:IntangibleAssetsOtherThanGoodwillMember2021-12-310001610520ifrs-full:GoodwillMember2022-12-310001610520ifrs-full:IntangibleAssetsOtherThanGoodwillMember2022-12-310001610520ifrs-full:GoodwillMemberubs:SegmentGWMAmericasCashGeneratingUnitMember2022-12-310001610520ifrs-full:IntangibleAssetsOtherThanGoodwillMemberubs:SegmentGWMAmericasCashGeneratingUnitMember2022-12-310001610520ifrs-full:GoodwillMemberubs:SegmentGWMExAmericasCashGeneratingUnitMember2022-12-310001610520ifrs-full:IntangibleAssetsOtherThanGoodwillMemberubs:SegmentGWMExAmericasCashGeneratingUnitMember2022-12-310001610520ifrs-full:GoodwillMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:IntangibleAssetsOtherThanGoodwillMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:GoodwillMemberubs:SegmentIBMember2022-12-310001610520ifrs-full:IntangibleAssetsOtherThanGoodwillMemberubs:SegmentIBMember2022-12-310001610520ubs:SegmentIBMember2022-12-310001610520ubs:SegmentIBMember2021-12-310001610520ifrs-full:GoodwillMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:IntangibleAssetsOtherThanGoodwillMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:GoodwillMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMember2022-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:IntangibleAssetsOtherThanGoodwillMemberubs:UBSAGMember2022-12-310001610520ifrs-full:GoodwillMemberifrs-full:GrossCarryingAmountMemberubs:UBSAGMember2021-12-310001610520ifrs-full:GrossCarryingAmountMemberifrs-full:IntangibleAssetsOtherThanGoodwillMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:IntangibleAssetsOtherThanGoodwillMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:GoodwillMemberubs:UBSAGMember2022-12-310001610520ifrs-full:IntangibleAssetsOtherThanGoodwillMemberubs:UBSAGMember2022-12-310001610520ifrs-full:GoodwillMemberubs:UBSAGMemberubs:SegmentGWMAmericasCashGeneratingUnitMember2022-12-310001610520ifrs-full:IntangibleAssetsOtherThanGoodwillMemberubs:UBSAGMemberubs:SegmentGWMAmericasCashGeneratingUnitMember2022-12-310001610520ifrs-full:GoodwillMemberubs:UBSAGMemberubs:SegmentGWMExAmericasCashGeneratingUnitMember2022-12-310001610520ifrs-full:IntangibleAssetsOtherThanGoodwillMemberubs:UBSAGMemberubs:SegmentGWMExAmericasCashGeneratingUnitMember2022-12-310001610520ifrs-full:GoodwillMemberubs:UBSAGMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:IntangibleAssetsOtherThanGoodwillMemberubs:UBSAGMemberubs:SegmentAMMember2022-12-310001610520ifrs-full:GoodwillMemberubs:UBSAGMemberubs:SegmentIBMember2022-12-310001610520ifrs-full:IntangibleAssetsOtherThanGoodwillMemberubs:UBSAGMemberubs:SegmentIBMember2022-12-310001610520ubs:UBSAGMemberubs:SegmentIBMember2022-12-310001610520ubs:UBSAGMemberubs:SegmentIBMember2021-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:IntangibleAssetsOtherThanGoodwillMemberubs:UBSAGMember2022-12-310001610520ifrs-full:AccumulatedDepreciationAmortisationAndImpairmentMemberifrs-full:IntangibleAssetsOtherThanGoodwillMemberubs:UBSAGMember2021-12-310001610520ubs:FinancialAssetsAtFairValueHeldForTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueMember2022-12-310001610520ubs:FinancialAssetsAtFairValueHeldforTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueRelatedToThoseInExchangeForCashReceivedMember2022-12-310001610520ubs:FinancialAssetsAtFairValueHeldforTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueRelatedToThoseInExchangeForSecuritiesReceivedMember2022-12-310001610520ubs:FinancialAssetsAtFairValueHeldforTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueRelatedToOtherTransfersMember2022-12-310001610520ubs:FinancialAssetsAtFairValueNotHeldForTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueMember2022-12-310001610520ubs:DebtInstrumentsHeldMeasuredAtAmortizedCostPledgedAsCollateralPermittedToBeSoldOrRepledgedAtFairValueMember2022-12-310001610520ubs:FinancialAssetsAtFairValueHeldForTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueMember2021-12-310001610520ubs:FinancialAssetsAtFairValueHeldforTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueRelatedToThoseInExchangeForCashReceivedMember2021-12-310001610520ubs:FinancialAssetsAtFairValueHeldforTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueRelatedToThoseInExchangeForSecuritiesReceivedMember2021-12-310001610520ubs:FinancialAssetsAtFairValueHeldforTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueRelatedToOtherTransfersMember2021-12-310001610520ubs:FinancialAssetsAtFairValueNotHeldForTradingHeldAsCollateralPermittedToBeSoldOrRepledgedAtFairValueMember2021-12-310001610520ubs:DebtInstrumentsHeldMeasuredAtAmortizedCostPledgedAsCollateralPermittedToBeSoldOrRepledgedAtFairValueMember2021-12-310001610520ubs:SegmentAMMemberubs:MitsubishiCorpUbsRealtyIncMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SegmentAMMemberubs:MitsubishiCorpUbsRealtyIncMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneMonthMember2022-12-310001610520ifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMember2022-12-310001610520ifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMember2022-12-310001610520ifrs-full:LaterThanFiveYearsMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:FinancialAssetsMeasuredAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialAssetsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:FinancialAssetsOffBalanceSheetMember2022-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:LoanCommitmentsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:ForwardStartingTransactionsReverseRepurchaseAndSecuritiesBorrowingAgreementsMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:CommittedRevocableCreditLinesMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:FinancialAssetsOffBalanceSheetMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:LoansAndAdvancesToBanksMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:CashCollateralReceivablesOnDerivativeInstrumentsMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:LoansAndAdvancesToCustomersMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:FinancialAssetsMeasuredAtAmortisedCostMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberubs:UBSAGMemberubs:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeForDebtInstrumentsMember2021-12-310001610520ifrs-full:FinancialAssetsAtAmortisedCostMemberifrs-full:FinancialAssetsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialAssetsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialAssetsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:AssociatesMember2022-12-310001610520ifrs-full:AssociatesMember2021-12-310001610520ubs:SIXGroupAGMember2022-12-310001610520ubs:SIXGroupAGMember2021-12-310001610520ifrs-full:AggregatedIndividuallyImmaterialAssociatesMember2022-12-310001610520ifrs-full:AggregatedIndividuallyImmaterialAssociatesMember2021-12-310001610520ifrs-full:AssociatesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:AssociatesMemberubs:UBSAGMember2021-12-310001610520ubs:UBSAGMemberubs:SIXGroupAGMember2022-12-310001610520ubs:UBSAGMemberubs:SIXGroupAGMember2021-12-310001610520ifrs-full:AggregatedIndividuallyImmaterialAssociatesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:AggregatedIndividuallyImmaterialAssociatesMemberubs:UBSAGMember2021-12-310001610520ubs:ClearstreamFundCentreAGMember2021-01-012021-12-310001610520ubs:ClearstreamFundCentreAGMember2021-12-310001610520ubs:SIXGroupAGMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:ClearstreamFundCentreAGMember2021-12-310001610520ubs:UBSAGMemberubs:SIXGroupAGMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneMonthMemberubs:UBSAGMember2022-12-310001610520ifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:UBSAGMember2022-12-310001610520ifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:NotLaterThanOneMonthMemberubs:UBSAGMember2021-12-310001610520ifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMemberubs:UBSAGMember2021-12-310001610520ifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMember2022-12-310001610520ifrs-full:NotLaterThanOneMonthMember2021-12-310001610520ifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMember2021-12-310001610520ifrs-full:LaterThanThreeMonthsAndNotLaterThanOneYearMember2021-12-310001610520ifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMember2021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMember2022-12-310001610520ubs:MiscellaneousTimeBandsMember2022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMember2021-12-310001610520ifrs-full:LaterThanFiveYearsMember2021-12-310001610520ubs:MiscellaneousTimeBandsMember2021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:LaterThanFiveYearsMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:MiscellaneousTimeBandsMember2022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanFiveYearsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:LaterThanFiveYearsMemberubs:UBSAGMember2021-12-310001610520ubs:UBSAGMemberubs:MiscellaneousTimeBandsMember2021-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:TemporaryDifferenceRelatedToOtherMember2022-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:TemporaryDifferenceRelatedToOtherMember2021-12-310001610520ifrs-full:NotLaterThanOneYearMember2022-12-310001610520ifrs-full:NotLaterThanOneYearMember2021-12-310001610520ifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMember2022-12-310001610520ifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMember2021-12-310001610520ifrs-full:LaterThanFiveYearsAndNotLaterThanTenYearsMember2022-12-310001610520ifrs-full:LaterThanFiveYearsAndNotLaterThanTenYearsMember2021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:GrossDomesticProductMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:GrossDomesticProductMemberubs:EurozoneMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:GrossDomesticProductMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:GrossDomesticProductMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:GrossDomesticProductMemberubs:EurozoneMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:GrossDomesticProductMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:ConsumerPriceInflationMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:ConsumerPriceInflationMemberubs:EurozoneMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:ConsumerPriceInflationMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:ConsumerPriceInflationMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:ConsumerPriceInflationMemberubs:EurozoneMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:ConsumerPriceInflationMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UnemploymentRateMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UnemploymentRateMemberubs:EurozoneMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UnemploymentRateMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UnemploymentRateMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UnemploymentRateMemberubs:EurozoneMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UnemploymentRateMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:EquityIndicesVariancesMemberubs:SP500Memberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SPIMemberubs:EquityIndicesVariancesMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:EquityIndicesVariancesMemberubs:SP500Memberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SPIMemberubs:EquityIndicesVariancesMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2022-01-012022-12-310001610520ubs:UpsideScenarioMember2022-01-012022-12-310001610520ubs:UpsideScenarioMember2021-01-012021-12-310001610520ubs:BaselineScenarioMember2022-01-012022-12-310001610520ubs:BaselineScenarioMember2021-01-012021-12-310001610520ubs:MildDownsideScenarioMember2022-01-012022-12-310001610520ubs:MildDownsideScenarioMember2021-01-012021-12-310001610520ubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:ModerateDownsideScenarioMemberMember2021-01-012021-12-310001610520ubs:SevereDownsideScenarioMember2022-01-012022-12-310001610520ubs:SevereDownsideScenarioMember2021-01-012021-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:TemporaryDifferenceRelatedToCashFlowHedgesMemberMember2022-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:TemporaryDifferenceRelatedToCashFlowHedgesMemberMember2021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:NoncontrollingInterestsMemberubs:UBSBrasilServicosMember2020-01-012020-12-310001610520ifrs-full:NoncontrollingInterestsMemberubs:UBSAGMemberubs:UBSBrasilServicosMember2020-01-012020-12-310001610520ubs:LIBORBenchmarkRateUSDMemberubs:InterstRateBenchmarkReformMember2022-12-310001610520ubs:LIBORBenchmarkRateCHFMemberubs:InterstRateBenchmarkReformMember2021-12-310001610520ubs:LIBORBenchmarkRateUSDMemberubs:InterstRateBenchmarkReformMember2021-12-310001610520ubs:LIBORBenchmarkRateGBPMemberubs:InterstRateBenchmarkReformMember2021-12-310001610520ubs:LIBORBenchmarkRateEURMemberubs:InterstRateBenchmarkReformMember2021-12-310001610520ubs:LIBORBenchmarkRateJPYMemberubs:InterstRateBenchmarkReformMember2021-12-310001610520ubs:UBSAGMemberubs:UpsideScenarioMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UpsideScenarioMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:MildDownsideScenarioMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:MildDownsideScenarioMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:ModerateDownsideScenarioMemberMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SevereDownsideScenarioMember2021-01-012021-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMember2022-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMember2022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMember2021-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMember2021-12-310001610520ubs:WealthManagementBusinessInAustriaMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:SecuritisationVehiclesMember2021-12-310001610520ifrs-full:InvestmentFundsMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:InvestmentFundsMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMember2021-12-310001610520ifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:LaterThanFiveYearsAndNotLaterThanTenYearsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMember2022-12-310001610520ifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:LaterThanFiveYearsAndNotLaterThanTenYearsMemberubs:UBSAGMember2022-12-310001610520ubs:VariableCompensationOtherMember2022-01-012022-12-310001610520ubs:VariableCompensationOtherMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ubs:VariableCompensationOtherMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ubs:VariableCompensationOtherMember2021-01-012021-12-310001610520ubs:VariableCompensationOtherMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ubs:VariableCompensationOtherMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ubs:VariableCompensationOtherMember2020-01-012020-12-310001610520ubs:VariableCompensationOtherMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ubs:VariableCompensationOtherMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:VariableCompensationOtherMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:VariableCompensationOtherMemberubs:CompensationPerformanceYearMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:VariableCompensationOtherMemberubs:CompensationPriorYearsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:VariableCompensationOtherMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:VariableCompensationOtherMemberubs:CompensationPerformanceYearMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:VariableCompensationOtherMemberubs:CompensationPriorYearsMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:VariableCompensationOtherMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:VariableCompensationOtherMemberubs:CompensationPerformanceYearMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:VariableCompensationOtherMemberubs:CompensationPriorYearsMember2020-01-012020-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:GrossDomesticProductMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:GrossDomesticProductMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:GrossDomesticProductMemberubs:EurozoneMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:GrossDomesticProductMemberubs:EurozoneMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:GrossDomesticProductMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:GrossDomesticProductMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:ConsumerPriceInflationMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:ConsumerPriceInflationMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:ConsumerPriceInflationMemberubs:EurozoneMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:ConsumerPriceInflationMemberubs:EurozoneMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:ConsumerPriceInflationMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:ConsumerPriceInflationMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UnemploymentRateMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UnemploymentRateMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UnemploymentRateMemberubs:EurozoneMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UnemploymentRateMemberubs:EurozoneMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UnemploymentRateMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UnemploymentRateMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:EquityIndicesVariancesMemberubs:SP500Memberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:EquityIndicesVariancesMemberubs:SP500Memberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SPIMemberubs:EquityIndicesVariancesMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SPIMemberubs:EquityIndicesVariancesMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2022-01-012022-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:BaselineScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:SevereDownsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:UBSAGMemberubs:FinancialAssetsMeasuredAtFairValueMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:UBSAGMemberubs:FinancialAssetsAtFairValueHeldForTradingDebtInstrumentsMemberMember2022-12-310001610520ifrs-full:DerivativesMemberifrs-full:FinancialAssetsAtFairValueMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:UBSAGMemberubs:BrokerageReceivablesMeasuredAtFairValueThroughProfitOrLossMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:UBSAGMemberubs:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryDebtInstrumentsMemberMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:UBSAGMemberubs:FinancialAssetsMeasuredAtFairValueMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:UBSAGMemberubs:FinancialAssetsAtFairValueHeldForTradingDebtInstrumentsMemberMember2021-12-310001610520ifrs-full:DerivativesMemberifrs-full:FinancialAssetsAtFairValueMemberubs:UBSAGMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:UBSAGMemberubs:BrokerageReceivablesMeasuredAtFairValueThroughProfitOrLossMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberubs:UBSAGMemberubs:FinancialAssetsAtFairValueThroughProfitOrLossMandatorilyMeasuredAtFairValueCategoryDebtInstrumentsMemberMember2021-12-310001610520ifrs-full:FinancialAssetsAtFairValueMemberifrs-full:FinancialGuaranteeContractsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMemberubs:UBSAGMember2022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:CurrencySwapContractMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMemberubs:UBSAGMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMemberubs:UKPensionPlanMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMemberubs:UKPensionPlanMember2022-12-310001610520ubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMemberubs:UKPensionPlanMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMemberubs:UKPensionPlanMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMemberubs:UKPensionPlanMember2021-12-310001610520ubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMemberubs:UKPensionPlanMember2021-12-310001610520ubs:UBSAGMemberubs:UBSSwitzerlandAGGuarantorSubsidiariesMember2022-12-310001610520srt:NonGuarantorSubsidiariesMemberubs:UBSAGMember2022-12-310001610520ubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMemberubs:UKPensionPlanMember2022-12-310001610520ubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMemberubs:UKPensionPlanMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMemberubs:UKPensionPlanMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMemberubs:UKPensionPlanMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMemberubs:UKPensionPlanMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:ReverseRepurchaseAgreementsAndCashCollateralOnSecuritiesBorrowedMemberubs:UKPensionPlanMember2021-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentsMember2022-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentsMember2022-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentsMember2022-12-310001610520ubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentsMember2021-12-310001610520ifrs-full:Level1OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentsMember2021-12-310001610520ifrs-full:Level2And3OfFairValueHierarchyMemberubs:UBSAGMemberubs:USAndGermanPensionPlansMemberubs:OtherInvestmentsMember2021-12-310001610520ubs:MitsubishiCorpUbsRealtyIncMember2021-12-310001610520ifrs-full:JointVenturesMember2022-12-310001610520ifrs-full:JointVenturesMember2021-12-310001610520ifrs-full:JointVenturesMemberubs:UBSAGMember2022-12-310001610520ifrs-full:JointVenturesMemberubs:UBSAGMember2021-12-310001610520ubs:UBSAGMemberubs:MitsubishiCorpUbsRealtyIncMember2021-12-310001610520ubs:UBSAGMemberubs:LIBORBenchmarkRateUSDMemberubs:InterstRateBenchmarkReformMember2022-12-310001610520ubs:UBSAGMemberubs:LIBORBenchmarkRateUSDMemberubs:InterstRateBenchmarkReformMember2021-12-310001610520ubs:UBSAGMemberubs:LIBORBenchmarkRateCHFMemberubs:InterstRateBenchmarkReformMember2021-12-310001610520ubs:UBSAGMemberubs:LIBORBenchmarkRateGBPMemberubs:InterstRateBenchmarkReformMember2021-12-310001610520ubs:UBSAGMemberubs:LIBORBenchmarkRateEURMemberubs:InterstRateBenchmarkReformMember2021-12-310001610520ubs:UBSAGMemberubs:LIBORBenchmarkRateJPYMemberubs:InterstRateBenchmarkReformMember2021-12-310001610520ubs:MitsubishiCorpUbsRealtyIncMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:MitsubishiCorpUbsRealtyIncMember2022-01-012022-12-310001610520ifrs-full:AggregatedIndividuallyImmaterialJointVenturesMember2022-12-310001610520ifrs-full:AggregatedIndividuallyImmaterialJointVenturesMember2021-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:NotLaterThanOneYearMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:NotLaterThanOneYearMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanFiveYearsMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanFiveYearsMemberubs:OverTheCounterMember2021-12-310001610520ubs:SponsoredMemberubs:NonExistenceOfInterestMember2021-01-012021-12-310001610520ubs:SponsoredMemberubs:NonExistenceOfInterestMember2021-12-310001610520ubs:InvestmentFundsNotOnBalanceSheetMember2021-12-310001610520ubs:UbsSwissFinancialAdvisersAgMember2021-12-310001610520ubs:UbsWealthManagementInSpainMember2021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToBookSizeAndQualityChangesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:PostmodelCreditLossExpenseAdjustmentMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:ExpectedCreditLossesModelUpdatesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:ChangesInExpectedCreditLossesScenariosMember2022-01-012022-12-310001610520ubs:PostmodelCreditLossExpenseAdjustmentMember2022-01-012022-12-310001610520ubs:TimeBandFromYear2021Member2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ifrs-full:TopOfRangeMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ubs:BaselineScenarioMember2021-12-310001610520ifrs-full:WeightedAverageMember2021-12-310001610520ifrs-full:WeightedAverageMember2022-01-012022-12-310001610520ifrs-full:WeightedAverageMember2021-01-012021-12-310001610520ubs:ExpectedCreditLossesModelUpdatesMember2022-01-012022-12-310001610520ubs:SegmentGWMMemberubs:ExpectedCreditLossesModelUpdatesMember2022-01-012022-12-310001610520ubs:SegmentPCBMemberubs:ExpectedCreditLossesModelUpdatesMember2022-01-012022-12-310001610520ubs:PostmodelCreditLossExpenseAdjustmentMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LendingToCorporateClientsNotSecuredByMortgagesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LendingSecuredByMortgagesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:LendingOtherMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentIBMemberubs:TravelIndustryRelatedMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:SegmentIBMemberubs:MiscellaneousPositionsExposuresMember2022-01-012022-12-310001610520ubs:TimeBandFromYear2022Member2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ubs:SwissPensionPlanMember2020-01-012020-12-310001610520ifrs-full:TopOfRangeMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ifrs-full:BottomOfRangeMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMember2020-01-012020-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:SwissPensionPlanMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ubs:USPensionPlansMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:USPensionPlansMember2022-01-012022-12-310001610520ubs:GermanPensionPlansMember2022-01-012022-12-310001610520ubs:LargerGermanPensionPlansMember2022-01-012022-12-310001610520ubs:SmallerGermanPensionPlansMemberubs:TimeBandBeforeYear2010Member2022-01-012022-12-310001610520ubs:SmallerGermanPensionPlansMemberubs:TimeBandFromYear2010TillYear2017Member2022-01-012022-12-310001610520ubs:SmallerGermanPensionPlansMemberubs:TimeBandAfterYear2017Member2022-01-012022-12-310001610520ubs:NewGermanPensionPlanMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:GermanPensionPlansMember2022-01-012022-12-310001610520ubs:NotesAndDebenturesIssuedMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UKPensionPlanMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:USPensionPlansMember2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:USPensionPlansMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:GermanPensionPlansMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:LargerGermanPensionPlansMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:NewGermanPensionPlanMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SmallerGermanPensionPlansMemberubs:TimeBandBeforeYear2010Member2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SmallerGermanPensionPlansMemberubs:TimeBandFromYear2010TillYear2017Member2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SmallerGermanPensionPlansMemberubs:TimeBandAfterYear2017Member2022-01-012022-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:GermanPensionPlansMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:RelatedPartiesCompensationMember2022-01-012022-12-310001610520ubs:InterstRateBenchmarkReformMember2022-12-310001610520ubs:InterstRateBenchmarkReformMember2021-12-310001610520ubs:UBSAGMemberubs:InterstRateBenchmarkReformMember2022-12-310001610520ubs:UBSAGMemberubs:InterstRateBenchmarkReformMember2021-12-310001610520ifrs-full:SecuritisationVehiclesMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ubs:DeferredContingentCapitalPlanMember2022-01-012022-12-310001610520ubs:SharebasedPaymentArrangementsUnvestedMember2022-12-310001610520ubs:UBSAGMemberubs:SharebasedPaymentArrangementsUnvestedMember2022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMember2022-01-012022-12-310001610520ifrs-full:Level3OfFairValueHierarchyMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:SecuritisationVehiclesMemberubs:UBSAGMemberubs:OtherFinancialAssetsAtAmortisedCostMember2022-12-310001610520ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:SecuritisationVehiclesMemberubs:UBSAGMember2021-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:UBSAGMemberubs:TemporaryDifferenceRelatedToCashFlowHedgesMemberMember2022-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:UBSAGMemberubs:TemporaryDifferenceRelatedToCashFlowHedgesMemberMember2021-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:UBSAGMemberubs:TemporaryDifferenceRelatedToOtherMember2022-12-310001610520ifrs-full:TemporaryDifferenceMemberubs:UBSAGMemberubs:TemporaryDifferenceRelatedToOtherMember2021-12-310001610520ifrs-full:NoncontrollingInterestsMembersrt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMemberubs:UBSAGMember2020-01-012020-12-310001610520ubs:UBSAGMemberubs:DeferredContingentCapitalPlanMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMemberubs:UBSAGMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMemberubs:UBSAGMemberubs:OverTheCounterMember2021-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanFiveYearsMemberubs:UBSAGMemberubs:OverTheCounterMember2022-12-310001610520ifrs-full:InterestRateSwapContractMemberifrs-full:LaterThanFiveYearsMemberubs:UBSAGMemberubs:OverTheCounterMember2021-12-310001610520ubs:UBSAGMemberubs:SponsoredMemberubs:NonExistenceOfInterestMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SponsoredMemberubs:NonExistenceOfInterestMember2022-12-310001610520ubs:UBSAGMemberubs:SponsoredMemberubs:NonExistenceOfInterestMember2021-12-310001610520ubs:UBSAGMemberubs:InvestmentFundsNotOnBalanceSheetMember2022-12-310001610520ubs:UBSAGMemberubs:InvestmentFundsNotOnBalanceSheetMember2021-12-310001610520ubs:SponsoredMemberubs:NonExistenceOfInterestMember2022-01-012022-12-310001610520ubs:SponsoredMemberubs:NonExistenceOfInterestMember2022-12-310001610520ubs:InvestmentFundsNotOnBalanceSheetMember2022-12-310001610520ubs:UBSAGMemberubs:SponsoredMemberubs:NonExistenceOfInterestMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:ChangesInExpectedCreditLossesScenariosMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToBookSizeAndQualityChangesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:PostmodelCreditLossExpenseAdjustmentMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:ExpectedCreditLossesModelUpdatesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LendingToCorporateClientsNotSecuredByMortgagesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LendingSecuredByMortgagesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:LendingOtherMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentIBMemberubs:TravelIndustryRelatedMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberubs:UBSAGMemberubs:SegmentIBMemberubs:MiscellaneousPositionsExposuresMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:PostmodelCreditLossExpenseAdjustmentMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:PostmodelCreditLossExpenseAdjustmentMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:BaselineScenarioMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMember2021-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMember2022-01-012022-12-310001610520ifrs-full:WeightedAverageMemberubs:UBSAGMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:MildDownsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:MildDownsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:GrossDomesticProductMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:GrossDomesticProductMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:ConsumerPriceInflationMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:ConsumerPriceInflationMember2021-01-012021-12-310001610520country:USifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:UnemploymentRateMemberubs:EurozoneMember2021-01-012021-12-310001610520country:CHifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:UnemploymentRateMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyUSDMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyEURMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:InterestRateBasisPointSensitivityMemberubs:BondCurrencyCHFMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:EquityIndicesVariancesMemberubs:SP500Member2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:Eurostoxx50Memberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:SPIMemberubs:EquityIndicesVariancesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:SwissRealEstateMemberubs:SingleFamiliyHomesMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520ifrs-full:NotLaterThanOneYearMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:UpsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:OtherRealEstateMemberubs:UnitedStatesSPCaseShillerMember2021-01-012021-12-310001610520ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberubs:UBSAGMemberubs:MildDownsideScenarioMemberubs:OtherRealEstateMemberubs:EurozoneHousePriceIndexMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:WriteOffMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:WriteOffMember2022-01-012022-12-310001610520ubs:UbsWealthManagementInSpainMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UbsWealthManagementInSpainMember2022-01-012022-12-310001610520ubs:UbsSwissFinancialAdvisersAgMember2022-01-012022-12-310001610520ubs:InterestCurrencyUSDMember2022-12-310001610520ubs:UBSAGMemberubs:InterestCurrencyUSDMember2022-12-310001610520ubs:InterestCurrencyCHFMember2022-12-310001610520ubs:UBSAGMemberubs:InterestCurrencyCHFMember2022-12-310001610520ubs:InterestCurrencyUSDMember2021-12-310001610520ubs:UBSAGMemberubs:InterestCurrencyUSDMember2021-12-310001610520ubs:InterestCurrencyCHFMember2021-12-310001610520ubs:UBSAGMemberubs:InterestCurrencyCHFMember2021-12-310001610520ubs:UbsUSAlternativeInvestmentsAdministrationBusinessMember2022-01-012022-12-310001610520ubs:WealthfrontMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UbsSwissFinancialAdvisersAgMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UbsSwissFinancialAdvisersAgMember2021-12-310001610520ubs:UBSAGMemberubs:UbsWealthManagementInSpainMember2021-12-310001610520ubs:UBSAGMemberubs:UbsUSAlternativeInvestmentsAdministrationBusinessMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:WealthfrontMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:RemeasurementsWithoutStageMovesMemberubs:LargeAndSMECorporateLendingMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:ExpectedCreditLossesModelUpdatesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SegmentGWMMemberubs:ExpectedCreditLossesModelUpdatesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SegmentPCBMemberubs:ExpectedCreditLossesModelUpdatesMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMemberubs:LargeAndSMECorporateLendingMember2022-01-012022-12-310001610520ubs:InterestRateBasisPointSensitivityMemberubs:MinusHalfPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:InterestRateBasisPointSensitivityMemberubs:PlusHalfPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:InterestRateBasisPointSensitivityMemberubs:PlusOnePercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UnemploymentRateMemberubs:MinusOnePercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UnemploymentRateMemberubs:MinusHalfPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UnemploymentRateMemberubs:PlusHalfPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UnemploymentRateMemberubs:PlusOnePercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:GrossDomesticProductMemberubs:MinusTwoPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:GrossDomesticProductMemberubs:MinusOnePercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:GrossDomesticProductMemberubs:PlusOnePercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:GrossDomesticProductMemberubs:PlusTwoPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:MinusFivePercentMemberubs:HousePriceIndexMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:HousePriceIndexMemberubs:MinusTwoAndAHalfPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:HousePriceIndexMemberubs:PlusTwoAndAHalfPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:PlusFivePercentMemberubs:HousePriceIndexMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:EquityMemberubs:MinusTenPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:EquityMemberubs:MinusFivePercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:EquityMemberubs:PlusFivePercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:EquityMemberubs:PlusTenPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:InterestRateBasisPointSensitivityMemberubs:MinusHalfPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:InterestRateBasisPointSensitivityMemberubs:PlusHalfPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:InterestRateBasisPointSensitivityMemberubs:PlusOnePercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UnemploymentRateMemberubs:MinusOnePercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UnemploymentRateMemberubs:MinusHalfPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UnemploymentRateMemberubs:PlusHalfPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UnemploymentRateMemberubs:PlusOnePercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:GrossDomesticProductMemberubs:MinusTwoPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:GrossDomesticProductMemberubs:MinusOnePercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:GrossDomesticProductMemberubs:PlusOnePercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:GrossDomesticProductMemberubs:PlusTwoPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:MinusFivePercentMemberubs:HousePriceIndexMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:HousePriceIndexMemberubs:MinusTwoAndAHalfPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:HousePriceIndexMemberubs:PlusTwoAndAHalfPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:PlusFivePercentMemberubs:HousePriceIndexMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:EquityMemberubs:UBSAGMemberubs:MinusTenPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:EquityMemberubs:UBSAGMemberubs:MinusFivePercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:EquityMemberubs:UBSAGMemberubs:PlusFivePercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:EquityMemberubs:UBSAGMemberubs:PlusTenPercentMemberubs:ModerateDownsideScenarioMemberMember2022-01-012022-12-310001610520ifrs-full:FairValueHedgesMemberifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:InterestRateBenchmarkReformExceptionsEffectOnCashFlowHedgesMember2022-12-310001610520ifrs-full:CashFlowHedgesMemberifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:InterestRateBenchmarkReformExceptionsEffectOnCashFlowHedgesMember2022-12-310001610520ifrs-full:FairValueHedgesMemberifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:InterestRateBenchmarkReformExceptionsEffectOnCashFlowHedgesMember2021-12-310001610520ifrs-full:CashFlowHedgesMemberifrs-full:InterestRateRiskMemberubs:UBSAGMemberubs:InterestRateBenchmarkReformExceptionsEffectOnCashFlowHedgesMember2021-12-310001610520ubs:SwissPensionPlanMemberubs:TimeBandFromYear2020TillYear2022Member2022-01-012022-12-310001610520ubs:UBSAGMemberubs:SwissPensionPlanMemberubs:TimeBandFromYear2020TillYear2022Member2022-01-012022-12-310001610520ubs:UBSAGCrossBorderWealthManagementBusinessesLawsuitsMember2022-12-310001610520ubs:CrossBorderWealthManagementBusinessesMember2022-01-012022-12-310001610520ubs:UBSAGCrossBorderWealthManagementBusinessesLawsuitsMember2022-01-012022-12-310001610520ubs:CrossBorderWealthManagementBusinessesMember2022-12-310001610520ubs:MadoffLuxembourgMember2022-01-012022-12-310001610520ubs:PuertoRicoCustomerArbitrationClaimsMember2022-01-012022-12-310001610520ubs:EmployeeRetirementSystemPuertoRicoMember2022-01-012022-12-310001610520ubs:PuertoRicoInsuranceCompaniesClaimsMember2022-01-012022-12-310001610520ubs:ForexRelatedCivilLitigationMember2022-01-012022-12-310001610520ubs:TradingRelatedInquiriesMember2022-01-012022-12-310001610520ubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:RemeasurementsWithoutStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:LoansToFinancialAdvisorsMemberubs:RemeasurementsWithoutStageMovesMember2021-01-012021-12-310001610520ubs:ParallelUpInterestRateShockScenarioMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:ParallelUpInterestRateShockScenarioMember2022-01-012022-12-310001610520ubs:ParallelUpInterestRateShockScenarioMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:ParallelUpInterestRateShockScenarioMember2021-01-012021-12-310001610520ubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:IncreaseDecreaseOfExpectedCreditLossesWithProfitLossImpactDueToNewAndDerecognizedTransactionsMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ifrs-full:FinancialInstrumentsCreditimpairedMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:ChangesDueToSICRStageMovesMemberubs:FinancialIntermediariesMember2021-01-012021-12-310001610520ubs:UBSAGMemberubs:UBSAGCrossBorderWealthManagementBusinessesLawsuitsMember2022-12-310001610520ubs:UBSAGMemberubs:CrossBorderWealthManagementBusinessesMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:UBSAGCrossBorderWealthManagementBusinessesLawsuitsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:CrossBorderWealthManagementBusinessesMember2022-12-310001610520ubs:UBSAGMemberubs:MadoffLuxembourgMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:PuertoRicoCustomerArbitrationClaimsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:PuertoRicoInsuranceCompaniesClaimsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:EmployeeRetirementSystemPuertoRicoMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:ForexRelatedCivilLitigationMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:TradingRelatedInquiriesMember2022-01-012022-12-310001610520ubs:CommunicationsRecordkeepingSECInvestigationMember2022-01-012022-12-310001610520ubs:CommunicationsRecordkeepingcCFTCInvestigationMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:CommunicationsRecordkeepingSECInvestigationMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:CommunicationsRecordkeepingcCFTCInvestigationMember2022-01-012022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades0To1Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades2To3Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades4To5Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades6To8Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGrades9To13Member2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMemberubs:InternalCreditGradesDefaultedMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:LifetimeExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ifrs-full:FinancialInstrumentsNotCreditimpairedMemberifrs-full:GrossCarryingAmountMemberifrs-full:TwelvemonthExpectedCreditLossesMemberubs:UBSAGMemberubs:CashAndBankBalancesAtCentralBanksMember2022-12-310001610520ubs:UBSAGMemberubs:MadoffBMISTrusteeMember2022-01-012022-12-310001610520ubs:MadoffBMISTrusteeMember2022-01-012022-12-310001610520ubs:PuertoRicoOversightBoardComplaintsMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:PuertoRicoOversightBoardComplaintsMember2022-01-012022-12-310001610520ubs:PuertoRicoShareholderDerivativeActionMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:PuertoRicoShareholderDerivativeActionMember2022-01-012022-12-310001610520ubs:MortgageLoanPortfolioRegionAmericasMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:MortgageLoanPortfolioRegionAmericasMember2022-01-012022-12-310001610520ubs:MortgageLoanPortfolioRegionsEmeaAndAsiaPacificMember2022-01-012022-12-310001610520ubs:UBSAGMemberubs:MortgageLoanPortfolioRegionsEmeaAndAsiaPacificMember2022-01-012022-12-31iso4217:AUDiso4217:CHFiso4217:EURiso4217:GBPiso4217:HKDiso4217:JPYiso4217:USDxbrli:purexbrli:sharesutr:Yiso4217:USDxbrli:sharesiso4217:CHFxbrli:shares
 
 
Annual Report 2022
 
1
 
UNITED STATES
SECURITIES
 
AND EXCHANGE
 
COMMISSION
 
Washington, D.C. 20549
 
FORM
20-F
 
(Mark One)
 
 
 
 
☐
 
REGISTRATION STATEMENT
 
PURSUANT TO SECTION 12(b) OR (g) OF THE
SECURITIES EXCHANGE ACT OF 1934
OR
 
 
 
 
☑
 
ANNUAL REPORT
 
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended
December 31, 2022
OR
 
 
 
 
☐
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from
 
to
 
.
 
OR
 
 
 
 
☐
 
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
UBS Group AG
Commission file number:
1-36764
UBS AG
 
Commission file number:
1-15060
 
 
(Exact Name of Registrants as Specified in
 
Their Respective Charters
 
)
Switzerland
 
(Jurisdiction of Incorporation or Organization
 
)
 
UBS Group AG
Bahnhofstrasse 45
,
CH-8001
Zurich
, Switzerland
 
(Address of Principal Executive Office
 
)
UBS AG
Bahnhofstrasse 45
,
CH-8001
Zurich
,
Switzerland
 
and
Aeschenvorstadt 1, CH-4051 Basel, Switzerland
(Address of Principal Executive Offices
 
)
 
David Kelly
600 Washington
 
Boulevard
Stamford, CT
 
06901
Telephone: (
203
)
719 3000
(Name, Telephone, E
 
-mail and/or Facsimile number and Address of
 
Company Contact Person)
 
Securities registered or to be registered pursuant
 
to Section 12(b) of the Act:
Please see page 3.
Securities registered or to be registered pursuant
 
to Section 12(g) of the Act:
Please see page 3.
Securities for which there is a reporting
 
obligation pursuant to Section 15(d)
 
of the Act:
Please see page 3.
 
 
 
 
Annual Report 2022
 
2
 
Indicate the number of outstanding shares of each
 
of each issuer’s classes of capital
 
or common stock as of 31 December
 
2022:
 
 
UBS Group AG
Ordinary shares, par value CHF 0.10 per share:
 
3,524,635,722
 
ordinary shares
(including 416,909,010 treasury shares
 
)
UBS AG
Ordinary shares, par value CHF 0.10 per share:
3,858,408,466
 
ordinary shares
(none of which are treasury shares)
 
Indicate by check mark if the registrants
 
are well-known seasoned issuers,
 
as defined in Rule 405 of the Securities
 
Act.
 
 
UBS Group AG
Yes
☐
 
No
☑
UBS AG
Yes
☐
 
No
☑
 
If
 
this report is an annual or transition
 
report, indicate by check mark if the
 
registrants are not required to file
 
reports pursuant
to Section 13 or 15(d)
 
of the Securities Exchange Act of
 
1934.
 
Yes
☐
 
 
No
☑
Note — Checking the box above will not
 
relieve any registrant required to file
 
reports pursuant to Section 13 or 15
 
(d) of the
Securities Exchange Act of 1934 from their obligations
 
under those Sections.
 
 
Indicate by check mark whether the Registrants
 
(1) have filed all reports required to be
 
filed by Section 13 or 15(d)
 
of the
Securities Exchange Act of 1934 during the
 
preceding 12 months (or for such
 
shorter period that the Registrants were
 
required
to file such reports)
 
and (2)
 
have been subject to such filing
 
requirements for the past 90 day
 
s.
 
Yes
☑
 
 
No
☐
 
Indicate by check mark whether the registrants
 
have submitted electronically every
 
Interactive Data File required to
 
be
submitted pursuant to Rule 405 of Regulation
 
S-T
 
(§ 232.405 of this chapter) during
 
the preceding 12 months (or for such
shorter period that the registrants were required
 
to submit such files).
 
Yes
☑
 
 
No
☐
 
Indicate by check mark whether the registrant
 
is a large accelerated filer,
 
an accelerated filer, or
 
a non-accelerated filer or
 
an
emerging growth company.
 
See definition of “accelerated
 
filer and large accelerated filer”
 
and “emerging growth company” in
Rule 12b-2
 
of the Exchange Act.
 
(Check One):
 
 
 
UBS Group AG
 
 
Large accelerated filer
☑
 
Accelerated filer
☐
 
Non-accelerated filer
☐
 
Emerging growth company
☐
 
 
 
UBS AG
 
 
Large accelerated filer
☐
 
Accelerated filer
☐
 
 
Non-accelerated filer
☑
Emerging growth company
☐
 
Indicate by check mark whether the registrant
 
has filed a report on and attestation to its
 
management’s
 
assessment of the
effectiveness of its internal control over
 
financial reporting under Section 404(b)
 
of the Sarbanes-Oxley Act (15
 
U.S.C.
7262(b)) by the registered public accounting firm
 
that prepared or issued its audit report.
 
UBS Group AG
Yes
☑
 
No
☐
 
UBS AG
Yes
☑
 
No
☐
If securities are registered pursuant to Section
 
12(b) of the Act, indicate by check mark
 
whether the financial statements of the
 
registrant included in the filing reflect the correction
 
of an error to previously issued
 
financial statements.
 
 
UBS Group AG
Yes
☐
 
No
☑
UBS AG
Yes
☐
 
No
☑
 
 
 
 
 
 
Indicate by check mark which basis of accounting
 
the registrants have used to prepare the
 
financial statements included in this
filing.
 
 
U.S. GAAP
☐
 
 
International Financial Reporting Standards
as issued by the International Accounting
Standards Board
 
☑
 
 
Other
☐
 
 
 
 
 
 
Annual Report 2022
 
3
 
 
If “Other” has been checked in response to the
 
previous question, indicate by
 
check mark which financial statement item the
registrants have elected to follow.
 
Item 17
☐
 
 
Item 18
☐
If this is an annual report, indicate by check mark
 
whether the registrants are shell companies
 
(as defined in Rule 12b-2 of the
Exchange Act)
 
Yes
☐
 
 
No
☑
 
 
Securities registered or to be
 
registered pursuant
 
to Section 12(b)
 
of the Act:
UBS Group AG
Title of each class
Trading
symbol(s)
Name of each
exchange on
which registered
Ordinary Shares (par value of CHF 0.10
 
each)
 
UBS
New York Stock
Exchange
UBS AG
 
Title of each class
Trading
symbol(s)
Name of each
exchange on
which registered
ETRACS Alerian Midstream Energy
 
Index ETN due June 21, 2050
AMNA
NYSE Arca
ETRACS Alerian Midstream Energy
 
High Dividend Index ETN due July 19, 2050
AMND
NYSE Arca
ETRACS Alerian Midstream Energy
 
Total Return Index
 
ETN due October 20, 2050
AMTR
NYSE Arca
ETRACS Alerian MLP Index ETN Series B
 
due July 18, 2042
AMUB
NYSE Arca
ETRACS Quarterly Pay 1.5x Leveraged MVIS
 
BDC Index ETN due June 10, 2050
BDCX
NYSE Arca
E-TRACS MVIS Business Development
 
Companies Index ETN due April 26, 2041
BDCZ
NYSE Arca
ETRACS Monthly Pay 1.5x Leveraged Closed
 
-End Fund Index ETN due June 10,
 
2050
CEFD
NYSE Arca
E-TRACS Bloomberg Commodity
 
Index Total Return
 
Series B due October 31, 2039
DJCB
NYSE Arca
ETRACS 2x Leveraged MSCI USA ESG Focus
 
TR ETN due September 15, 2061
ESUS
NYSE Arca
UBS AG FI Enhanced Large Cap
 
Growth ETN due June 19, 2024
FBGX
NYSE Arca
ETRACS 2x Leveraged IFED Invest
 
with the Fed TR Index ETN due September
 
15, 2061
FEDL
NYSE Arca
UBS AG FI Enhanced Europe 50 ETN due February
 
12, 2026
FIEE
NYSE Arca
UBS AG FI Enhanced Global High Yield
 
ETN due March 3, 2026
FIHD
NYSE Arca
ETRACS Monthly Pay 2xLeveraged US High
 
Dividend Low Volatility
 
ETN Series B due
October 21, 2049
HDLB
NYSE Arca
ETRACS IFED Invest with the Fed TR Index
 
ETN due September 15, 2061
IFED
NYSE Arca
ETRACS 2x Leveraged US Value
 
Factor TR ETN due February
 
9, 2051
IWDL
NYSE Arca
ETRACS 2x Leveraged US Growth Factor TR
 
ETN due February 9, 2051
IWFL
NYSE Arca
ETRACS 2x Leveraged US Size Factor
 
TR ETN due February 9, 2051
IWML
NYSE Arca
E-TRACS Alerian MLP Infrastructure Index Series
 
B due April 2, 2040
MLPB
NYSE Arca
ETRACS Quarterly Pay 1.5x Leveraged Alerian
 
MLP Index ETN due June 10, 2050
MLPR
NYSE Arca
ETRACS 2x Leveraged MSCI US Momentum Factor
 
TR ETN due February 9, 2051
MTUL
NYSE Arca
ETRACS Monthly Pay 1.5x Leveraged Mortgage
 
REIT ETN due June 10, 2050
MVRL
NYSE Arca
ETRACS Monthly Pay 2xLeveraged Preferred
 
Stock ETN due September 25, 2048
PFFL
NYSE Arca
ETRACS Linked to the NYSE® Pickens
 
Core Midstream Index due August 20,
 
2048
PYPE
NYSE Arca
ETRACS 2x Leveraged MSCI US Quality
 
Factor TR ETN due February 9, 2051
QULL
NYSE Arca
ETRACS 2x Leveraged US Dividend Factor
 
TR ETN due February 9, 2051
SCDL
NYSE Arca
ETRACS Monthly Pay 2xLeveraged US Small
 
Cap High Dividend ETN Series
 
B due
November 10, 2048
SMHB
NYSE Arca
E-TRACS CMCI Total Return
 
ETN Series B due April 5, 2038
UCIB
NYSE Arca
ETRACS 2x Leveraged MSCI US Minimum
 
Volatility
 
Factor TR ETN due February 9, 2051
USML
NYSE Arca
Securities registered or to be
 
registered pursuant
 
to Section 12(g) of the Act:
 
None
 
Securities for which there is a reporting
 
obligation pursuant to Section
 
15(d)
 
of the Act:
 
None
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
 
4
 
Cautionary Statement:
Refer to the
Cautionary Statement Regarding
 
Forward-Looking
 
Statements
 
section in the Annual
Report 2022 (page 516).
 
Cross-reference table
 
Set forth below are the respective items
 
of SEC Form 20-F,
 
and the locations in this document where the
 
corresponding
information can be found.
 
 
●
 
Annual Report
 
refers to the Annual Repo
 
rt 2022 of UBS Group AG and UBS
 
AG annexed hereto, which forms an
integral part hereof.
 
●
 
Supplement
refers to certain supplemental information contained
 
in this forepart of the Form 20-F,
 
starting on page
11 following the cross-reference
 
table.
 
●
 
Financial Statements
refers to the consolidated financial
 
statements of either UBS Group
 
AG or UBS AG, or both,
depending upon the context, contained in the
 
Annual Report.
 
In the cross-reference table below,
 
page numbers refer to either the
 
Annual Report or the
 
Supplement, as noted.
 
Please see page 9 of the Annual Report
 
for definitions of terms used in this
 
Form 20-F
 
relating to UBS.
 
Form 20-F
 
item
 
Response or location in this filing
Item 1
.
 
Identity of Directors,
Senior Management and
Advisors.
Not applicable.
Item 2
.
 
Offer Statistics and
Expected Timetable.
Not applicable.
Item 3.
 
Key Information
B – Capitalization and
Indebtedness.
Not applicable.
C – Reasons for the Offer and
Use of Proceeds.
Not applicable.
D – Risk Factors.
Annual Report,
 
Risk factors
(56-66).
Item 4
.
 
Information on the Company.
A – History and Development of
the Company
1-3: Annual Report,
Corporate information
and
Contacts
(6). The registrants' agent is
David Kelly, 600
 
Washington Boulevard,
 
Stamford, CT
 
06901.
4: Annual Report,
Our evolution
(14);
Our strategy
(15-17);
Our businesses
(18-28);
Note 29 to each set of Financial Statements
 
(
Changes in organization
 
and acquisitions
and disposals of subsidiaries and businesses
) (354 and 475)
5-6: Annual Report,
Our businesses
(18-28), as applicable, Note 11
 
to each set of
Financial Statements (
Property,
 
equipment and software)
 
(291 and 410) and
Note 29 to
each set of Financial Statements (
Changes in organization
 
and acquisitions and
disposals of subsidiaries and businesses
) (354 and 475).
7: Nothing to disclose.
8: Annual Report,
Information sources
 
(515).
B – Business Overview.
1, 2 and 5: Annual Report,
Our strategy,
 
business model and environment
 
(15-66), Note
2a to each set of Financial Statements (
Segment reporting)
(277-278 and 396-397)
and
Note 2b to each set of Financial Statements
 
(
Segment reporting by
 
geographic location)
(279 and 398).
 
See also Supplement
 
(11).
3: Annual Report,
Seasonal characteristics
(72).
4: Not applicable.
6: None.
7: Information as to the basis for these statements
 
normally accompanies the statements,
except where marked in the report as a statement based
 
upon publicly available
information or internal estimates, as applicable.
 
Annual Report,
Our businesses
(18-28),
as applicable.
8: Annual Report,
Regulation and supervision
(50-53)
and
 
Regulatory and legal
developments
 
(53-55).
Supplement (12).
C – Organizational Structure.
Annual Report, Our evolution (14) and
 
Note 28 to each set of Financial Statements
(
Interests in subsidiaries and other
 
entities
) (350-354 and 471-475).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
 
5
 
D – Property, Plant and
Equipment.
Annual Report,
Property,
 
plant and equipment
(495 and 503)
,
Note 1a, 7) to each set of
Financial Statements (
Summary of material accounting
 
policies: Property,
 
equipment and
software
) (274 and 393), Note 11 to
 
each set of Financial Statements (
Property,
equipment and software)
 
(291 and 410).
Information required by SEC
Regulation S-K
 
Part 1400
Annual Report,
Information required
 
under SEC regulation
 
S-K: Subpart 1400
(496-501
and 504-509),
Loss history statistics
(110), and Note 9 to
 
each set of Financial Statements
(
Financial assets at amortized cost and other
 
positions in scope of expected credit
 
loss
measurement)
 
(285-289 and 404-408).
Item 4A
.
 
Unresolved Staff
Comments.
None.
Item 5
.
 
Operating and Financial Review
 
and Prospects.
A – Operating Results.
1: Annual Report,
Our key figures
(8),
 
UBS AG consolidated key figures
(362)
, Targets,
aspirations and capital guidance
(17),
Our businesses
(18-28),
Group performance
(68-
73), financial and
operating performance by business
 
division and Group Functions
 
(74-
81),
Income statement
 
(251 and 371), Note 2a to each set
 
of Financial Statements
(
Segment reporting)
(277-278 and 396-397), and
 
Selected financial data
(494-495 and
502-503).
2: Not applicable
3: Annual Report,
Risk factors
(56-66),
Capital management
(135-149),
Currency
Management
(159-160)
 
and Note 25 to each set of Financial Statements
 
(
Hedge
Accounting)
 
(337-340 and 456-459).
4:
Annual Report,
Our environment
(28-32),
Regulation and supervision
(50-53),
Regulatory and legal developments
(53-55),
Accounting and financial reporting
 
(67),
Note 1b to each set of Financial Statements
 
(
Changes in accounting policies,
comparability and other adjustments
) (276 and 395).
A discussion on the results for the year 2021
 
compared with 2020 can be found
 
on UBS
annual report 2021 filed with the SEC
 
in Form 20-F
 
on March 7, 2022, under
Financial
and operating performance
and under
Financial statements
 
of UBS Group AG and UBS
AG.
 
B – Liquidity and Capital
Resources.
1: Annual Report,
Risk factors
(56-66)
,
Group performance
(68-73)
,
financial and
operating performance by business division and
 
Group Functions (74-81),
Seasonal
characteristics
 
(72),
Interest rate risk in the banking
 
book
 
(115-118),
Capital,
liquidity
and funding, and balance sheet
(134-162)
, Asset encumbrance
(154),
Note 22 to each set
of Financial Statements (
Restricted and transferred financial
 
assets)
(330-332 and 449-
451) and Note 28(b) to each set of Financial Statements
 
(
Interests in associates and joint
ventures
) (352 and 473).
Liquidity and capital management is undertaken
 
at UBS as an integrated asset and
liability management function. While we believe our
 
'working capital' is sufficient
 
for the
company's present requirements, it is our
 
opinion that, as a bank, our liquidity
 
coverage
ratio (LCR) is the more relevant measure. For
 
more information see, Annual Report,
Liquidity coverage ratio
 
(152).
2: Annual Report,
Capital,
liquidity and funding, and balance sheet
(134-162),
 
Currency
Management
(159-160), Note 10 to each set of Financial
 
Statements (
Derivative
instruments)
(289-291 and 408-410), Note
 
15 to each set of Financial Statements
 
(
Debt
issued designated at fair value)
(294 and 413), Note 16 to each set
 
of Financial
Statements (
Debt issued measured at amortized
 
cost
) (295 and 414), Note 18 to each set
of Financial Statements (
Other liabilities
) (302 and 421), and Note 25 to each set of
Financial Statements (
Hedge Accounting
) (337-340 and 456-459).
3:
 
Annual Report,
Material cash requirements
 
(158),
Liquidity and funding management
(150-152), Note 23 to each set of Financial
 
Statements (
Maturity analysis of assets and
liabilities
) (332-334 and 451-453),
 
and Note 11
 
to each set of Financial Statements
(
Property,
 
equipment and software)
 
(291 and 410).
C—Research and Development,
Patents and Licenses, etc.
Not applicable.
D—Trend Information.
 
Annual Report,
Our businesses
 
(18-28),
Our environment
 
(28-32),
Regulatory and legal
developments
 
(53-55),
Risk factors
 
(56-66),
Financial and operating performance
 
(67-
81) and
Top
 
and emerging risks
 
(86-87).
E—Critical Accounting
Estimates
Not applicable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
 
6
 
Item 6.
 
Directors, Senior Management and
 
Employees.
A – Directors and Senior
Management.
1, 2 and 3: Annual Report,
Board of Directors
(173-188) and
Group Executive Board
(189-195).
4, 5: None.
B – Compensation.
1: Annual Report,
Compensation
(201-241), Note 1a, 4) to each
 
set of Financial
Statements (
Share-based and
 
other deferred compensation
 
plans
) (272 and 391), Note 27
to each set of Financial Statements (
Employee benefits: variable
 
compensation)
 
(347-350
and 467-471) and Note 30 to each set of Financial
 
Statements (
Related parties)
(355-356
and 476-477).
 
2: Annual Report,
Compensation
(201-241), Note 26 to each set of
 
Financial Statements
(
Post-employment benefit plans)
(340-347 and 459-467).
C – Board practices.
1: Annual Report,
Board of Directors
(173-188). The term of office
 
for members of the
Board of Directors and its Chairman expires
 
after completion of the next Annual General
Meeting. The next UBS Group AG Annual
 
General Meeting is scheduled on 5 April
2023, and the next UBS AG Annual General
 
Meeting is scheduled on 4 April 2023
 
.
2: Annual Report,
Compensation
(201-241),
Clauses on change of control
 
(196), and
Note 30 to each set of Financial Statements
 
(
Related parties
) (355-356 and 476-477).
3: Annual Report,
Audit Committee
 
(182) and
Compensation Committee
(183).
Refer to the Supplement (15) for information
 
on UBS AG's Board of Directors'
 
executive
sessions.
D—Employees.
 
Annual Report,
 
Employees
(39-41),
 
and
Selected financial data
(494-495 and 502-503).
 
 
In addition to seeking out employee feedback,
 
we maintain an open dialogue
 
with our
formal employee representation groups. The
 
UBS Employee Forum (our European
 
Works
Council) and the UBS Europe SE Works
 
Council represent 16 countries
 
and consider
topics related to our performance and operations.
 
Local works councils such as the
Employee Representation Committee in Switzerland
 
discuss topics such as benefits,
workplace conditions and redundancies. Collectively,
 
these groups represent
approximately 47% of our global workfor
 
ce.
 
Where applicable, our operations are subject
 
to collective bargaining
 
agreements (CBAs).
In all those locations, the employment terms
 
and conditions for any employees not
covered by CBAs are aligned with those agreements.
 
Benefits are aligned with local
markets, and due to the competitive labor environments
 
in which we operate, often go
beyond legal requirements or market practice.
 
During 2022, the Global Research and Analytics
 
function was re-aligned,
 
resulting in a
shift of personnel from Group Functions
 
to the Investment Bank. Comparative
 
figures
have been restated accordingly for both UBS
 
Group AG and UBS AG on the tables
below.
 
UBS group AG (consolidated) personnel by business
 
division and Group Functions:
 
As of
Full-time equivalents
31.12.22
31.12.21
31.12.20
Personnel (full-time equivalents)
72,597
71,385
71,551
Global Wealth Management
24,351
24,093
24,200
Personal & Corporate
 
Banking
5,725
5,791
6,021
Asset Management
2,848
2,693
2,642
Investment Bank
9,177
8,667
8,575
Group Functions
30,497
30,142
30,113
 
UBS AG (consolidated) personnel by business
 
division and Group Functions:
 
As of
Full-time equivalents
31.12.22
31.12.21
31.12.20
Personnel (full-time equivalents)
47,628
47,067
47,546
Global Wealth Management
23,292
22,986
23,039
Personal & Corporate
 
Banking
4,923
4,993
5,131
Asset Management
2,450
2,375
2,351
Investment Bank
6,929
6,644
6,518
Group Functions
10,035
10,069
10,507
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
 
7
 
E—Share Ownership.
1 and 2: Annual Report,
Compensation
(201-241),
 
Note 27 to each set of Financial
Statements (
Employee benefits: variable
 
compensation
) (347-350 and 467-471) and
 
Note
30b to each set of Financial Statements (
Equity holdings of key management
 
personnel
)
 
(355 and 476).
F—Disclosure of a registrant’s
action to recover erroneously
awarded compensation.
Not applicable.
Item 7.
 
Major Shareholders and Related Party
 
Transactions.
A—Major Shareholders.
 
Annual Report,
Group structure
 
and shareholders
(166-167),
 
Share capital
 
structure
 
(167-171)
 
and
 
Voting
 
rights, restrictions and
 
representation
(171).
 
The number of shares of UBS Group AG
 
held by the respective shareholders listed
 
on
page 167 of the Annual Report registered in
 
the UBS share register with 3% or
 
more of
total share capital as of 31 December 2022
 
is as follows:
 
Shareholder
Number of shares held
Chase Nominees Ltd., London
302,947,749
DTC (Cede & Co.), New York
251,014,771
Nortrust Nominees Ltd., London
152,567,310
 
According to the mandatory FMIA disclosure notifications
 
filed with UBS Group AG and
SIX, the following entities disclosed holding
 
of more than 3% of the total share
 
capital of
UBS Group AG, with the following number
 
of shares:
 
Shareholder
Number of shares held
Norges Bank, Oslo on 25 July 2019
115,997,262
Artisan Partners Limited Partnership,
Milwaukee on 18 November 2020
121,591,630
Massachusetts Financial Services Company,
 
on
25 June 2021
116,145,996
Dodge & Cox International Stock Fund, on 2
 
8
January 2022
111,816,261
BlackRock Inc., New York,
 
on 29 June 2022
184,188,641
 
The number of shares of UBS AG held by
 
UBS Group AG as of 31 December 2022
 
was
3,858,408,466 shares.
 
B—Related Party Transactions.
 
Annual Report,
Loans granted to GEB members
(238)
, Loans granted to BoD members
(239)
 
and
 
Note 30 to each set of Financial
 
Statements (
Related parties
)
 
(355-356 and
476-477).
C—Interests of Experts and
Counsel.
 
Not applicable.
Item 8
.
 
Financial Information.
A—Consolidated Statements
and Other Financial
Information.
 
1, 2, 3, 4, 6: Please see Item 18 of this Form
 
20-F.
 
5: Not applicable.
7: Information on material legal and regulatory
 
proceedings is in Note 17 to
 
each set of
Financial Statements (
Provisions and
 
contingent liabilities
) (295-301 and 414-421).
 
For developments during the year,
 
please see also the note
Provisions and contingent
liabilities
 
in the Consolidated Financial Statements section
 
in our respective quarterly
reports for the First, Second and Third
 
Quarters 2022, filed on Forms 6-
 
K
 
dated April 26,
2022 (UBS Group AG) and April 29, 2022
 
(UBS AG), July 26, 2022 (UBS Group AG)
and July 29, 2022 (UBS AG) and October 25, 2022
 
(UBS Group AG) and October 28,
2022 (UBS AG), respectively; as well
 
as the
Provisions and contingent
 
liabilities
 
section
in the Fourth Quarter 2022 Report, filed on Form
 
6-K dated January 31, 2023. The
disclosures in each such Quarterly Report speak
 
only as of their respective dates.
8: Annual Report,
 
Letter to Shareholders
(
2-5
)
, Investors
 
(37-38),
Dividend distribution
(160)
, Distributions to shareholders
(170).
B—Significant Changes.
 
None.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
 
8
 
Item 9
.
 
The Offer and Listing.
A – Offer and Listing Details.
1, 2, 3, 5, 6, 7: Not applicable.
4: Annual Report,
Listing of UBS Group
 
AG shares
(162).
 
B—Plan of Distribution.
Not applicable.
C—Markets.
 
Cover page (3).
Annual Report,
Listing of UBS Group
 
AG shares
 
(162)
D—Selling Shareholders.
Not applicable.
E—Dilution.
 
Not applicable.
F—Expenses of the Issue.
 
Not applicable.
Item 10
.
 
Additional Information.
A—Share Capital.
 
Not applicable.
B—Memorandum and Articles
of Association.
1: Supplement (16).
2: Annual Report,
Compensation governance
(208-209),
Compensation for the
Board of
Directors
(229-231).
Supplement (15).
3: Annual Report,
Share
capital structure
(167-171),
Shareholders' participation
 
rights
(171-172),
Elections and terms of office
 
(181). Supplement (13-16).
4: Supplement (14).
5: Annual Report,
Shareholders' participation
 
rights
 
(171-172). Supplement (14).
6: Annual Report,
Transferability,
 
voting rights and nominee registration
 
(171),
Shareholders' participation rights
 
(171-172). Supplement (13).
7: Annual Report,
Change of control and
 
defense measures
 
(196).
8: Annual Report,
Significant Shareholders
(166-167).
9: Supplement (13-16) and Annual Report, D
ifferences from
 
corporate
governance standards relevant
 
to US-listed companies
(165-166),
Compensation
governance
(208-209),
Compensation for the
Board of Directors
(229-231),
Share
capital structure
(167-171),
Shareholders' participation
 
rights
 
(171-172),
Elections and
terms of office
 
(207),
Transferability,
 
voting rights and nominee registration
 
(171),
Change of control and defense
 
measures
 
(196),
Significant Shareholders
(166-167)
10:
Supplement (13-16).
C—Material Contracts.
 
The Terms & Conditions
 
of the several series of capital instruments
 
issued to date, and to
be issued pursuant to Deferred Capital Contingent
 
Plans, are exhibits 4.1 through 4.19
 
to
this Form 20-F.
 
These notes are described under
Swiss SRB total loss-absorbing
 
capacity
framework
 
on page 136-138 of the Annual
 
Report and
Our deferred compensation plans
on page 222-223 of the Annual Report.
 
The Asset Transfer Agreement
 
by which certain assets and liabilities of
 
UBS AG were
transferred to UBS Switzerland AG is filed
 
as Exhibit 4.20, and is described under
Joint
liability of UBS Switzerland AG
 
on page 482 of the Annual Report.
 
D—Exchange Controls.
 
Other than in relation to economic sanctions,
 
there are no restrictions under the Articles
of Association of UBS Group AG or UBS
 
AG, nor under Swiss law,
 
as presently in force,
that limit the right of non-resident or foreign owners
 
to hold UBS’s securities
 
freely.
There are currently no Swiss foreign exchange
 
controls or other Swiss laws restricting the
import or export of capital by UBS or its subsidiaries,
 
nor restrictions affecting
 
the
remittance of dividends, interest or other payments
 
to non-resident holders of
 
UBS
securities. The Swiss federal government
 
may impose sanctions on particular countries,
regimes, organizations or persons which may
 
create restrictions on exchange of control.
A current list, in German, French and Italian, of
 
such sanctions can be found
 
at
www.seco-admin.ch
. UBS may also be subject to sanctions
 
regulations from other
jurisdictions where it operates imposing
 
further restrictions.
E—Taxation.
 
Supplement (17-19).
F—Dividends and Paying
Agents.
 
Not applicable.
G—Statement by Experts.
 
Not applicable.
H—Documents on Display.
 
UBS files periodic reports and other information
 
with the Securities and Exchange
Commission. You
 
may read and copy any document that
 
we file with the SEC on the
SEC’s website,
www.sec.gov
. Much of this information may also be
 
found on the UBS
website at
www.ubs.com/investors
.
I—Subsidiary Information.
 
Not applicable.
J—Annual Report to Security
Holders
Not applicable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
 
9
 
Item 11
.
 
Quantitative and Qualitative Disclosures
 
About Market Risk.
(a)
 
Quantitative Information
About Market Risk.
 
Annual Report,
Market risk
(111-119
 
).
(b) Qualitative Information
About Market Risk.
 
Annual Report,
Market risk
(111-119
 
).
(c)
 
Interim Periods.
 
Not applicable.
 
Item 12.
 
Description of Securities Other than Equity
 
Securities.
A – Debt Securities
Not applicable.
 
B – Warrants
 
and Rights
Not applicable.
 
C – Other Securities
Not applicable.
 
D – American Depositary Shares
Not applicable.
 
Item 13
.
 
Defaults, Dividend
Arrearages and Delinquencies.
There has been no material default in respect
 
of any indebtedness of UBS or any
 
of its
significant subsidiaries or any arrearages
 
of dividends or any other material delinquency
not cured within 30 days relating to
 
any preferred stock of UBS Group AG or
 
any of its
significant subsidiaries.
Item 14.
 
Material Modifications
to the Rights of Security Holders
and Use of Proceeds.
None.
Item 15.
 
Controls and Procedures.
 
(a)
 
Disclosure Controls and
Procedures
Annual Report,
US disclosure requirements
(199), and
Exhibit 12 to this Form 20-F.
(b) Management’s Annual
Report on Internal Control over
Financial Reporting
Annual Report,
Management’s
 
report on internal control
 
over financial reporting
 
(244
and 364).
(c)
 
Attestation Report of the
Registered Public Accounting
Firm
Annual Report,
Report of Independent Registered
 
Public Accounting Firm
(245 and 365).
(d) Changes in Internal Control
over Financial Reporting
None.
Item 16A.
 
Audit Committee
Financial Expert.
Annual Report,
Audit Committee
(182) and
Differences from
 
corporate governance
standards relevant
 
to US-listed companies
(165-166).
All Audit Committee members have accounting or
 
related financial management
expertise and, in compliance with the rules
 
established pursuant to the US
 
Sarbanes-
Oxley Act of 2002, at least one member,
 
the Chairperson Jeremy Anderson,
 
qualifies as a
financial expert.
Item 16B.
 
Code of Ethics.
Annual Report,
Our Code of Conduct and Ethics
(43) UBS's Code of Conduct and Ethics
("the Code") is published on our website under
https://www.ubs.com/code
.The UBS
Code of Business Conduct does not include
 
a waiver option, and no waiver from
 
any
provision of the Code was granted to any
 
employee in 2022.
Item 16C.
 
Principal Accountant
Fees and Services.
Annual Report,
Auditors
 
(196-198).
None of the non-audit services so disclosed
 
were approved by the Audit Committee
pursuant to paragraph (c) (7)(i)(C) of Rule 2
 
-01 of Regulation S-X.
Item 16D.
 
Exemptions from the
Listing Standards for Audit
Committees.
Not applicable.
Item 16E.
 
Purchases of Equity
Securities by the Issuer and
Affiliated Purchasers.
Annual Report,
Holding of UBS Group
 
AG shares
 
(161).
Item 16F.
 
Changes in
Registrant’s Certifying
Accountant.
Not applicable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
 
10
 
Item 16G.
 
Corporate
Governance.
Annual Report,
 
Differences from
 
corporate governance standards
 
relevant to US-listed
companies
 
(165-166),
Governance and Nominating Committee
 
(183-184).
Item 16H.
Mine Safety
Disclosure.
Not applicable.
Item 16I.
Disclosure Regarding
Foreign Jurisdictions that
Prevent Inspections
Not applicable.
Item 17.
 
Financial Statements.
Not applicable.
Item 18.
 
Financial Statements.
Annual Report,
Financial statements
(242-502),
Significant regulated subsidiary
 
and
sub-group information
(521-522) and
Additional regulatory information
 
(523-539).
Item 19.
 
Exhibits
Supplement (20-21).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
 
11
 
Supplemental information
 
Item 4. Information on the Company
B – Business Overview
 
Item 4.B.2.
 
Geographic breakdown
 
of total revenues
1
 
of UBS Group AG consolidated
 
The operating regions
 
shown in
 
the table below
 
correspond to the
 
regional management
 
structure of the
 
Group. The
 
allocation
of revenues to
 
these regions reflects,
 
and is
 
consistent with, the
 
basis on
 
which the business
 
is managed and
 
its performance
 
is
evaluated. These allocations
 
involve assumptions and
 
judgments that management considers to
 
be reasonable, and
 
may be refined
to reflect changes in estimates or management
 
structure.
 
 
The main principles of the allocation
 
methodology are that client revenues are attributed to the domicile of
 
the client, and trading
and portfolio management revenues are attributed
 
to the country where the risk
 
is managed. This revenue attribution is
 
consistent
with the
 
mandate of
 
the regional
 
Presidents.
 
Certain revenues,
 
such as
 
those
 
related to
 
Non-core and
 
Legacy Portfolio
 
within
Group Functions,
 
are managed
 
at a
 
Group level.
 
These revenues
 
are included
 
in the
Global
 
column. Financial information
 
for
UBS AG consolidated does not differ materially
 
from that for UBS Group AG consolidated.
 
 
 
USD billion
Business Division
FY
Americas
Asia Pacific
EMEA
Switzerland
Global
Total
Global Wealth
Management
2022
10.6
 
2.6
 
3.9
 
1.9
 
0.0
 
19.0
 
2021
10.7
 
2.9
 
3.9
 
1.9
 
0.0
 
19.4
 
2020
9.1
 
2.7
 
3.6
 
1.7
 
0.0
 
17.1
 
Personal &
Corporate Banking
2022
0.0
 
0.0
 
0.0
 
4.3
 
0.0
 
4.3
 
2021
0.0
 
0.0
 
0.0
 
4.3
 
0.0
 
4.3
 
2020
0.0
 
0.0
 
0.0
 
3.9
 
0.0
 
3.9
 
Asset Management
2022
0.5
 
0.4
 
0.4
 
0.7
 
0.8
 
3.0
 
2021
0.6
 
0.5
 
0.5
 
0.8
 
0.0
 
2.6
 
2020
0.7
 
0.5
 
0.5
 
0.7
 
0.6
 
3.0
 
Investment Bank
2022
2.7
 
2.7
 
2.6
 
0.7
 
0.0
 
8.7
 
2021
3.2
 
3.0
 
2.5
 
0.8
 
(0.0)
9.5
 
2020
3.5
 
2.8
 
2.5
 
0.8
 
0.0
 
9.5
 
Group Functions
2022
0.0
 
0.0
 
0.0
 
0.0
 
(0.4)
(0.4)
2021
0.0
 
0.0
 
0.0
 
0.0
 
(0.4)
(0.4)
2020
0.0
 
0.0
 
0.0
 
0.0
 
(0.5)
(0.5)
Group
2022
13.8
 
5.6
 
7.0
 
7.7
 
0.5
 
34.6
 
2021
14.5
 
6.5
 
7.0
 
7.8
 
(0.3)
35.4
 
2020
13.2
 
6.1
 
6.5
 
7.1
 
0.1
 
33.1
 
 
1
 
During 2022, UBS changed
 
the presentation of its
 
Income statement. Total
 
operating income was
 
renamed Total
 
revenues and excludes
Credit loss expense /
 
(release). This table, including
 
prior-period information,
 
has been updated
 
to reflect the new presentation
 
structure, with
the disclosure of Total
 
revenues instead
 
of Total operating
 
income. Refer
 
to Note 1b to the UBS
 
Group AG consolidated
 
financial statements
for more information.
 
 
 
Annual Report 2022
 
12
 
Disclosure Pursuant To
 
Section 219 of the Iran Threat
 
Reduction And Syrian Human
 
Rights Act
 
Section 219 of the US Iran Threat Reduction
 
and Syria Human Rights Act of 2012
 
(“ITRA”) added Section 13(r) to the US
Securities Exchange Act of 1934, as amended
 
(the “Exchange Act”) requiring
 
each SEC reporting issuer to disclose in its
annual and, if applicable, quarterly reports
 
whether it or any of its affiliates have
 
knowingly engaged in certain activities,
transactions or dealings relating to Iran or
 
with the Government of Iran or
 
certain designated natural persons or
 
entities
involved in terrorism or the proliferation of weapons
 
of mass destruction during the period
 
covered by the report. The required
disclosure may include reporting of
 
activities not prohibited by US or other law,
 
even if conducted outside the
 
US by non-US
affiliates in compliance with local law.
 
Pursuant to Section 13(r) of the Exchange
 
Act, we note the following for the period
covered by this annual report:
 
UBS has a Group Sanctions Policy that
 
prohibits transactions involving sanctioned
 
countries, including Iran, and sanctioned
individuals and entities. However,
 
UBS maintains one account involving the Iranian
 
government under the auspices of the
United Nations in Geneva after agreeing with
 
the Swiss government that it would
 
do so only under certain conditions. These
conditions include that payments involving the
 
account must: (1) be made within Switzerland;
 
(2) be consistent with paying
rent, salaries, telephone and other expenses necessary
 
for its operations in Geneva; and
 
(3) not involve any Specially
Designated Nationals (SDNs) blocked or otherwise
 
restricted under US or Swiss law.
 
In 2022, the gross revenues for
 
this UN-
related account were approximately USD
 
19,064.61.
 
We do not
 
allocate expenses to specific client
 
accounts in a way that
enables us to calculate net profits with respect to
 
any individual account. UBS AG intends
 
to continue maintaining this account
pursuant to the conditions it has established with
 
the Swiss Government and
 
consistent with its Group Sanctions
 
Policy.
 
As previously reported, UBS had certain outstanding
 
legacy trade finance arrangements issued
 
on behalf of Swiss client
exporters in favor of their Iranian counterparties.
 
In February 2012 UBS ceased accepting
 
payments on these outstanding
export trade finance arrangements and
 
worked with the Swiss government
 
who insured these contracts (Swiss Export
 
Risk
Insurance "SERV").
 
On December 21, 2012, UBS and the SERV
 
entered into certain Transfer
 
and Assignment Agreements
under which SERV purchased
 
all of UBS's remaining receivables
 
under or in connection with Iran-related
 
export finance
transactions. Hence, the SERV
 
is the sole beneficiary of said receivables.
 
There was no financial activity involving
 
Iran in
connection with these trade finance arrangements
 
in 2022, and no gross revenue or net
 
profit.
 
In connection with these trade finance arrangements,
 
UBS has maintained one existing
 
account relationship with an Iranian
bank.
 
 
This account was established prior to the US
 
designation of this bank and maintained
 
due to the existing trade finance
arrangements.
 
In 2007, following the designation
 
of the bank pursuant to sanctions issued
 
by the US, UN and Switzerland, the
account was blocked under Swiss law and remained
 
subject to blocking requirements until
 
January 2016. Client assets
 
as of 31
December 2022 were CHF 3,097.40. There
 
have been no transactions involving
 
this account. Accordingly,
 
there is no gross
revenue to report for 2022.
 
 
 
Annual Report 2022
 
13
 
Item 10.
 
Additional Information.
B—Memorandum and Articles of
 
Association.
 
 
Please see the Articles of Association of
 
UBS Group AG and of UBS AG
 
(Exhibits 1.1 and 1.2, respectively,
 
to this Form 20-
F) and the Organization Regulations
 
of UBS Group AG and UBS AG
 
(Exhibit 1.3 and 1.4, respectively,
 
to this Form 20
 
-F).
 
 
Set forth below is a summary of the material
 
provisions of the Articles of
 
Association of UBS Group AG (which
 
we call the
“Articles” throughout this document), Organization
 
Regulations of UBS Group
 
AG (which we call the “Organization
Regulations” throughout this document)
 
and relevant Swiss laws, in particular the
 
Swiss Code of Obligations, relating to our
shares. This description does not purport to be
 
complete and is qualified in its entirety
 
by references to Swiss
 
law, including
Swiss company law,
 
and to the Articles and Organization
 
Regulations.
 
 
The Articles of Association and Organization
 
Regulations of UBS AG
 
are substantially similar to the Articles
 
and
Organization Regulations of UBS Group
 
AG, so the following description
 
applies equally to UBS AG, except where
 
indicated
that it refers to only one of the companies.
 
The principal legislation under which UBS Group
 
AG and UBS AG operate,
 
and under which the ordinary shares of
 
UBS
Group AG are issued, is the Swiss Code of
 
Obligations.
 
The shares are registered shares with a
 
par value of CHF 0.10 per share. The shares
 
are fully paid up, and there is no liability of
shareholders to further capital calls by the
 
company. The shares rank
pari passu
 
in all respects with each other,
 
including
voting rights, entitlement to dividends, liquidation
 
proceeds in case of the liquidation of the
 
company, subscription
 
or
preemptive rights in the event of a share issue
 
(
Bezugsrechte
) and preemptive rights in the
 
event of the issuance of equity-
linked securities (
Vorwegzeichnungsrechte
).
 
Each share carries one vote at our shareholders’
 
meetings. Voting
 
rights may be exercised
 
only after a shareholder has been
recorded in our share register as a shareholder
 
with voting rights. Registration with voting
 
rights is subject to certain
restrictions. See “Share Register and Transfer
 
of Shares” below.
 
 
The Articles provide that we may elect not
 
to print and deliver certificates in respect
 
of registered shares. Shareholders may,
however, following registration in the
 
share register,
 
request at any time that we issue a
 
written statement in respect of their
shares; however, the shareholder
 
has no entitlement to the printing
 
and delivery of share certificates.
 
Shares and Shareholders
Share Register and Transfer
 
of Shares
 
 
UBS Group AG’s share
 
register is kept by UBS Shareholder Services,
 
P.O.
 
Box, CH-8098 Zurich, Switzerland.
 
Shareholder
Services is responsible for the registration of the
 
global shares. It is split into two parts
 
– a Swiss register,
 
which is maintained
by UBS Group, acting as Swiss share
 
registrar, and a US register,
 
which is maintained by Computershare
 
Trust Company NA,
c/o Computershare Investor Services, P.O.
 
Box 505000, Louisville, KY 40233
 
-5000, United States (US),
 
as US transfer agent.
 
Swiss law and the Articles of Association of
 
UBS Group AG and UBS AG require
 
UBS to keep a share register in
 
which the
names, addresses and nationality (for legal persons,
 
the registered office) of
 
the owners (and beneficial owners) of
 
registered
shares are recorded. The main function of
 
the share register is to record shareholders
 
entitled to vote and participate in general
meetings, or to assert or exercise other rights related
 
to voting rights.
 
The transfer of shares which exist in the form
 
of intermediary-held securities is
 
effected by entries in securities
 
accounts in
accordance with applicable law.
 
The transfer of uncertificated securities
 
is effected by way
 
of a written declaration of
assignment and requires notice to the issuer.
 
In order to register shares in the share
 
register, a purchaser must file
 
a share registration form with the share
 
register. Failing
such registration, the purchaser may not vote
 
at or participate in shareholders’ meetings,
 
but will be entitled to dividends,
preemptive and priority subscription
 
rights, and liquidation proceeds.
 
Swiss law distinguishes between registration
 
with and without voting rights. Shareholders
 
must be registered in the share
register as shareholders with voting rights in order
 
to vote and participate in general meetings
 
or to assert or exercise other
rights related to voting rights. A purchaser
 
of shares will be recorded in our share
 
register with voting rights upon disclosure
 
of
its name and nationality (and for legal persons, the
 
registered office). However,
 
we may decline a registration
 
with voting
rights if the shareholder does not declare that it
 
has acquired the shares in its
 
own name and for its own account.
 
If the
shareholder refuses to make such declaration,
 
it will be registered as a shareholder without
 
voting rights.
 
 
 
 
Annual Report 2022
 
14
 
General Meeting
 
 
A shareholders’ meeting is convened by the Board
 
of Directors (BoD) upon notification
 
of the shareholders at least 20 days
prior to such meeting. An invitation will
 
be sent to all registered shareholders. The
 
Articles do not require a minimum
 
number
of shareholders to be present in order to hold
 
a shareholders’ meeting.
 
Unless otherwise provided by law or the Articles
 
(as indicated in this section), resolutions
 
require the approval of a majority of
the votes represented, excluding blank
 
and invalid ballots, at a shareholders’
 
meeting. Under Swiss corporate law,
 
a resolution
passed by at least two-thirds of votes represented
 
and a majority of the nominal value of
 
the shares represented is required
 
in
order to approve:
 
 
●
 
A change in our stated purpose in the Articles;
●
 
The consolidation of shares, unless the
 
consent of all the shareholders concerned is required;
●
 
The restriction or cancellation of the preemptive
 
right;
●
 
The conversion of participation certificates
 
into shares;
●
 
The introduction of shares with preferential voting
 
rights;
●
 
Any restriction on the transferability
 
of registered shares;
●
 
Any change in the currency of the share
 
capital;
●
 
The introduction of a casting vote for the person
 
chairing the shareholders’ meeting;
●
 
A provision of the articles of association
 
on holding the shareholders’ meeting
 
abroad;
●
 
The delisting of the equity securities of the
 
corporation;
●
 
Authorizing contingent capital, a capital
 
band or the creation of reserve capital
 
in accordance with Swiss banking law;
●
 
A capital increase from equity capital, in return
 
for contributions in kind or by offset
 
with a claim, and the granting of
special privileges;
●
 
A change of domicile of the corporation;
 
●
 
The introduction of an arbitration clause in the
 
articles of association;
 
●
 
Dispensing with the designation of an independent
 
voting representative for conducting
 
a virtual general meeting in
the case of corporations whose shares are
 
not listed on a stock exchange (e.g.,
 
UBS AG); or
●
 
Dissolution of the corporation.
 
Under the Articles, a resolution passed
 
at a shareholders’ meeting with a supermajority
 
of at least two-thirds of the votes
represented at such meeting is required to:
 
●
 
Change the limits on BoD size in the Articles;
●
 
Remove one-fourth or more of the members of
 
the BoD; or
●
 
Delete or modify these supermajority requirements.
 
At shareholders’ meetings, a shareholder
 
can be represented by a legal representative
 
or under a written power of
 
attorney by
another shareholder eligible to vote or,
 
under a written or electronic power
 
of attorney, by
 
the independent proxy.
 
Votes
 
are
taken electronically,
 
by written ballot or by a show of hands.
 
Shareholders representing
 
at least 3% of the votes represented
may always request that a vote or election take
 
place electronically or by a
 
written ballot.
 
 
Net Profits and Dividends
 
 
Swiss law requires that at least 5% of the annual
 
net profits of a corporation must
 
be retained as statutory retained
 
earnings
until these equal, together with the statutory capital
 
reserve, 50% of the corporation’s
 
paid-up share capital. Holding
companies, such as UBS Group AG, must increase
 
the statutory retained earnings until
 
these equal, together with the statutory
capital reserve, 20% of the corporation’s
 
paid-up share capital.
 
 
Under Swiss law, dividends
 
may be paid out only if the corporation
 
has sufficient distributable profits
 
from previous business
years or if the reserves of the corporation
 
are sufficient to allow distribution of
 
a dividend. In either event, dividends
 
may
 
be
paid out only after approval by the shareholders’
 
meeting. The BoD may propose to the
 
shareholders that a dividend be paid
out. The auditors must confirm that the dividend
 
proposal of the BoD conforms with statutory
 
law.
 
Dividends are usually due and payable
 
after the shareholders’ resolution relating
 
to the allocation of profits has been passed.
Under Swiss law, the
 
statute of limitations in respect of dividend
 
payments is five years.
 
 
Preemptive Rights
 
 
Under Swiss law,
 
any share issue, whether for cash or
 
non-cash consideration or for no
 
consideration, is subject to the prior
approval of the shareholders’ meeting. Shareholders
 
of a Swiss corporation have
 
certain preemptive rights to subscribe for
 
new
issues of shares in proportion to the nominal
 
amount of shares held. The Articles or
 
a resolution adopted at a shareholders’
meeting with a supermajority of at least two
 
-thirds of the votes represented and
 
a majority of the nominal value of the
 
shares
represented at the meeting may,
 
however, limit
 
or suspend preemptive rights in certain limited
 
circumstances.
 
 
 
 
 
Annual Report 2022
 
15
 
Notices
 
 
Notices to shareholders are made by publication
 
in the Swiss Official Gazette of Commerce.
 
The BoD may designate further
means of communication for publishing notices to
 
shareholders.
 
 
Mandatory Tender
 
Offer
 
 
Under the applicable provisions of the Swiss
 
Financial Market Infrastructure
 
Act, anyone who directly or indirectly
 
or acting in
concert with third parties acquires more than 33
 
1/3% of the voting rights of a Swiss
 
-listed company will have to submit
 
a
takeover bid to all remaining shareholders.
 
A waiver from the mandatory bid
 
rule may be granted by our supervisory
 
authority.
If no waiver is granted, the mandatory takeover
 
bid must be made pursuant to the procedural
 
rules set forth in the Swiss
Financial Market Infrastructure Act and implementing
 
ordinances.
 
Board of Directors
 
Borrowing Power
 
 
Neither Swiss law nor the Articles restrict in
 
any way our power to borrow and raise funds,
 
provided that any such borrowing
is entered into on arms’ length terms.
 
Swiss law requires that the Articles determine
 
the amount of loans that UBS
 
Group AG, as a listed company,
 
may grant to
members of its BoD. The Articles restrict UBS
 
Group AG's ability to grant loans to BoD
 
members as follows: First, loans to
the independent members of the BoD shall
 
be made in accordance with
 
the customary business and market
 
conditions. Second,
loans to the non-independent members of
 
the BoD shall be made in the ordinary
 
course of business on substantially
 
the same
terms as those granted to UBS employees. Third,
 
the total amount of such loans shall
 
not exceed CHF 20 million per member.
 
Conflicts of Interests
 
 
Swiss law requires directors and members
 
of senior management to inform the BoD
 
immediately and comprehensively of
 
any
conflicts of interest affecting them.
 
The BoD then has to take the
 
measures required to safeguard the interests of
 
the
corporation. Directors and officers
 
are personally liable to the corporation
 
for any breach of these provisions. In addition,
Swiss law contains a provision under which payments
 
made to a shareholder
 
or a director or any person associated therewith,
other than at arm’s length,
 
must be repaid to us if the shareholder
 
or director was acting in
 
bad faith.
 
 
In addition, our Organization Regulations
 
provide that the member of the BoD
 
or senior management
 
with a conflict of interest
shall participate in discussions and a double vote
 
(meaning a vote with and a vote without
 
the conflicted individual) shall take
place. A binding decision on the matter
 
requires the same outcome in both votes.
 
This is subject to exceptional
 
circumstances
in which the best interests of UBS dictate that the
 
member of the BoD or senior management
 
with a conflict of interest shall
not participate in the discussions and decision
 
-making involving the interest at stake
 
.
 
 
Retirement of Board members
 
There is no age-limit requirement for retirement
 
of the members of the BoD. The
 
term of office for each Board member
 
is one
year, and no Board member may
 
serve for more than 10 consecutive terms
 
of office. In exceptional circumstances
 
the Board
can extend this limit.
 
Executive sessions
 
UBS AG's Organization Regulations require
 
one-third of the members of the
 
Board of Directors of UBS AG
 
to be
independent. While neither Swiss law applicable
 
to UBS AG nor the Organization
 
Regulations require regularly
 
scheduled
meetings of UBS AG's independent directors,
 
the Organization Regulations
 
of UBS Group AG require independent
 
members
of the Board of Directors of UBS Group AG to
 
meet, without the participation of
 
the Chairman, at least twice a year.
 
All
members of UBS Group AG’s
 
Board of Directors are
 
also members of UBS AG’s
 
Board of Directors and all meetings
 
of UBS
Group AG’s Board of Directors
 
are held as combined meetings with
 
the UBS AG's Board of Directors.
 
As a result, the practice
currently in place at UBS AG is that the independent
 
members regularly meet in sessions
 
of independent members only.
 
In
addition to these joint meetings, standalone meetings
 
of UBS AG’s Board of
 
Directors are held regularly
 
to discuss and agree
on finance, risk, compliance, operational risk,
 
regulatory and other topics related to UBS
 
AG.
 
 
 
 
 
 
Annual Report 2022
 
16
 
The Company
Repurchase of Shares
 
 
Swiss law limits a corporation’s
 
ability to hold or repurchase its
 
own shares. We
 
and our Swiss subsidiaries may only
repurchase shares if we have sufficient
 
freely disposable equity capital
 
available at its acquisition
 
value to pay the purchase
price and if the aggregate nominal value of the shares
 
does not exceed 10% of our nominal
 
share capital. Repurchases for
cancellation purposes approved by the shareholders’
 
meeting are exempted from the
 
10% threshold. Furthermore, such
 
own
shares must be disclosed as negative items in our
 
shareholders’ equity.
 
Such shares held by us or our Swiss
 
subsidiaries do not
carry any rights to vote at shareholders’ meetings
 
.
 
Sinking fund provisions
 
There are no provisions in the Swiss law or in
 
the Articles requiring the company to
 
put resources aside for the
 
exclusive
purpose of redeeming bonds or repurchasing
 
shares.
 
Registration and Business
 
Purpose
 
 
UBS Group AG was incorporated and registered
 
as a corporation limited by shares
 
(
Aktiengesellschaft
) under the laws of
Switzerland. UBS Group AG was entered
 
into the commercial register of Canton
 
Zurich on 10 June 2014 under
 
the registration
number CHE-395.345.924 and has its
 
registered domicile in Zurich, Switzerland. The
 
business purpose of UBS Group
 
AG, as
set forth in article 2 of its Articles, is the acquisition,
 
holding, management and sale of direct
 
and indirect participations
 
in
enterprises of any kind, in particular in the
 
area of banking, financial, advisory,
 
trading and service activities in Switzerland
and abroad. UBS Group may establish
 
enterprises of any kind in Switzerland and
 
abroad, hold equity interests in these
companies, and conduct their management.
 
UBS Group is authorized to acquire,
 
mortgage and sell real estate and building
rights in Switzerland and abroad. UBS Group
 
may provide loans, guarantees and
 
other types of financing and security
 
for
group companies and borrow and invest capital on the
 
money and capital markets.
 
UBS AG was incorporated and registered
 
as a corporation limited by shares (
Aktiengesellschaft
) under the laws of Switzerland.
It is entered into the commercial registers of Cant
 
on Zurich and Canton Basel
 
-City under the registration number CHE-
101.329.561 and has registered domiciles in
 
Zurich and Basel, Switzerland. The business
 
purpose of UBS AG, as set forth in
article 2 of its Articles of Association, is the
 
operation of a bank, with a scope of
 
operations extending to all types of banking,
financial, advisory, trading
 
and service activities in Switzerland
 
and abroad. UBS AG is a wholly owned
 
subsidiary of UBS
Group AG.
 
Duration and Liquidation
 
 
UBS Group AG and UBS AG have unlimited
 
duration.
 
 
Under Swiss law,
 
we may be dissolved at any time by a shareholders’
 
resolution which must be passed by
 
a supermajority of at
least two-thirds of the votes represented
 
and a majority of the nominal value of
 
the shares represented at the meeting.
Dissolution by law or court order is possible,
 
for example, if we become bankrupt.
 
 
Under Swiss law,
 
any surplus arising out of a liquidation (after
 
the settlement of all claims
 
of all creditors) is distributed to
shareholders in proportion to the paid-up nominal
 
value of shares held.
 
 
Other
 
 
Ernst & Young Ltd
, Aeschengraben 9, CH-4051
Basel, Switzerland
, PCAOB number
1460
, have been appointed as statutory
auditors and as auditors of the consolidated
 
accounts of both UBS Group
 
AG and UBS AG. The auditors are subject
 
to election
by the shareholders at the ordinary general meeting
 
on an annual basis.
 
 
 
 
Annual Report 2022
 
17
 
E—Taxation.
 
 
This section outlines the material Swiss
 
tax and US federal income tax consequences
 
of the ownership of UBS Group AG's
ordinary shares (defined as "UBS ordinary shares
 
" in this section) by a US holder
 
(as defined below) who holds UBS
 
ordinary
shares as capital assets. This discussion addresses
 
only US federal income taxation
 
and Swiss income and capital taxation
 
and
does not discuss all of the tax consequences that
 
may be relevant to holders in light
 
of their individual circumstances, including
other foreign tax consequences, state or local tax
 
consequences, estate and gift tax consequences,
 
and tax consequences arising
under the Medicare contribution tax on net
 
investment income or the alternative minimum
 
tax.
 
It is designed to explain the
major interactions between Swiss and US taxation
 
for US persons who hold UBS ordinary
 
shares.
 
 
The discussion does not address the tax consequences
 
to persons who hold UBS ordinary
 
shares in particular circumstances,
such as tax-exempt entities, banks, financial institu
 
tions, life insurance companies, broker
 
-dealers, traders in securities that
elect to use a mark-to-market method of accounting
 
for securities holdings, holders that actually
 
or constructively own 10% or
more of the total combined voting power of
 
the voting stock of UBS Group
 
AG or of the total value of stock
 
of UBS Group
AG, holders that hold UBS ordinary shares
 
as part of a straddle or a hedging or conversion
 
transaction, holders that purchase
 
or
sell UBS ordinary shares as part of a wash sale
 
for tax purposes or holders whose
 
functional currency for US tax purposes is
not the US dollar. This discussion
 
also does not apply to holders who
 
acquired their UBS ordinary shares through
 
a tax-
qualified retirement plan, nor generally to
 
unvested UBS ordinary shares held
 
under deferred compensation arrangements.
 
 
If a partnership (or other entity treated
 
as a partnership) holds UBS ordinary shares,
 
the US federal income tax treatment
 
of a
partner will generally depend on the status of
 
the partner and the tax treatment
 
of the partnership. A partner in
 
a partnership
holding the UBS ordinary shares should
 
consult its tax advisor with regard to the US
 
federal income tax treatment
 
of an
investment in the ordinary shares.
 
The discussion is based on the tax laws of Switzerland
 
and the United States, including the
 
US Internal Revenue Code of 1986,
as amended, its legislative history,
 
existing and proposed regulations
 
under the Internal Revenue Code, published
 
rulings and
court decisions, as in effect on the date
 
of this document, as well as the Convention
 
between the United States of America
 
and
the Swiss Confederation for the Avoidance
 
of Double Taxation
 
with Respect to Taxes
 
on Income, which we
 
call the “Treaty,”
all of which may be subject to change or
 
change in interpretation, possibly
 
with retroactive effect.
 
 
For purposes of this discussion, a “US holder” is
 
any beneficial owner of UBS ordinary shares that
 
is for US federal income
tax purposes:
 
 
●
 
A citizen or resident of the United States;
●
 
A domestic corporation or other entity
 
taxable as a corporation;
●
 
An estate, the income of which is subject to
 
US federal income tax without regard to
 
its source; or
●
 
A trust, if a court within the United States is
 
able to exercise primary supervision over the
 
administration of the trust
and one or more US persons have the
 
authority to control all substantial decisions
 
of the trust.
 
Holders of UBS ordinary shares are urged
 
to consult their tax advisors regarding
 
the US federal, state and local and the Swiss
and other tax consequences of owning and disposing
 
of these shares in their particular
 
circumstances.
 
 
 
(a) Ownership of UBS Ordinary Shares
 
- Swiss Taxation
 
 
Dividends and Distributions
 
Dividends paid by UBS Group AG to a holder of
 
UBS ordinary shares (including dividends
 
on liquidation proceeds and stock
dividends) are in principle subject to a Swiss
 
federal withholding tax at a rate of 35%.
 
 
Under the Capital Contribution Principle, the
 
repayment of capital contributions, including
 
share premiums made by the
shareholders after December 31, 1996 is in principle
 
no longer subject to Swiss
 
withholding tax if certain requirements
regarding the booking of these capital contributions
 
are met.
 
 
Swiss companies listed on a Swiss stock
 
exchange such as UBS Group AG can repay
 
reserves from capital contributions to
their shareholders without deduction of Swiss
 
withholding tax only if they distribute at least
 
the same amount of taxable
dividends. For this reason UBS Group AG pays
 
half of the dividend from capital
 
contribution reserves and half of
 
the dividend
from taxable dividends which is subject to 35%
 
Swiss withholding tax.
 
 
 
 
Annual Report 2022
 
18
 
A US holder resident in the US that qualifies
 
for Treaty benefits may
 
apply for a refund of the withholding tax
 
withheld in
excess of the 15% Treaty rate
 
(or for a full refund in case of qualifying
 
retirement arrangements). The claim
 
for refund must be
filed with the Swiss Federal Tax
 
Administration, Eigerstrasse 65, CH
 
-3003 Berne, Switzerland no later than
 
December 31 of
the third year following the end of the calendar
 
year in which the income subject to
 
withholding was due. The form used
 
for
obtaining a refund is one of the Swiss
 
Tax Forms
 
82 (82 C for US companies; 82 E
 
for other US entities; 82 I for individuals;
82 R for regulated investment companies), which
 
may be obtained from the Swiss
 
Federal Tax Administration
 
at the address
above or downloaded from the web page
 
of the Swiss Federal tax Administration.
 
The form must be filled out in triplicate
 
with
each copy duly completed and signed before
 
a notary public in the United States.
 
The form must be accompanied by
 
evidence
of the deduction of withholding tax withheld
 
at the source.
 
 
A US holder resident outside the US may be
 
eligible for a withholding tax reclaim. If the
 
US holder is resident in Switzerland,
a full reclaim based on the Swiss withholding
 
tax Act is possible provided all necessary
 
conditions are met. A US holder
resident neither in the US nor in Switzerland
 
may be eligible for a partial reclaim
 
provided that a Treaty
 
between Switzerland
and the country of residence is applicable
 
and that all necessary conditions are met.
 
Transfers of UBS Ordinary
 
Shares
 
The purchase or sale of UBS ordinary shares,
 
whether by Swiss resident or non
 
-resident holders (including US holders),
 
may
be subject to a Swiss securities transfer stamp duty of
 
up to 0.15% calculated on the purchase price
 
or sale proceeds if it occurs
through or with a bank or other securities dealer
 
as defined in the Swiss Federal Stamp
 
Tax Act in Switzerland
 
or the
Principality of Liechtenstein. In addition to the
 
stamp duty, the
 
sale of UBS ordinary shares
 
by or through a member of a
recognized stock exchange may be subject to
 
a stock exchange levy.
 
 
Capital gains realized by a US holder upon the sale
 
of UBS ordinary shares are not
 
subject to Swiss income or gains taxes,
unless such US holder holds such shares as
 
business assets of a Swiss business operation
 
qualifying as a permanent
establishment. In the latter case, gains
 
are taxed at ordinary Swiss individual or
 
corporate income tax rates, as the
 
case may be,
and losses are deductible for purposes of Swiss
 
income taxes. Furthermore,
 
a US holder who is an individual resident in
Switzerland and holds such shares as business
 
assets (as he qualifies as a professional trader
 
of securities as per Swiss tax law)
may be liable to Swiss income taxes on gains.
 
 
 
(b)
 
Ownership of UBS
 
Ordinary Shares - US Federal Income Taxation
 
 
The tax treatment of the UBS ordinary shares will
 
depend in part on whether or not UBS
 
Group AG is classified as a passive
foreign investment company,
 
or PFIC, for US federal income tax purposes.
 
Except as discussed below under “
 
—Passive
Foreign Investment Company (PFIC) Rules”, this
 
discussion assumes that UBS Group
 
AG is not classified as a PFIC for
United States federal income tax purposes.
 
Dividends and Distributions
 
A US holder will include in gross income
 
and treat as a dividend the gross amount of
 
any distribution paid, before reduction
for Swiss withholding taxes, by UBS Group
 
AG out of its current or accumulated
 
earnings and profits (as determined
 
for US
federal income tax purposes), other than
 
certain pro-rata distributions of UBS ordinary
 
shares, when the distribution
 
is actually
or constructively received by the US holder.
 
Distributions in excess of current
 
and accumulated earnings and profits (as
determined for US federal income tax purposes)
 
will be treated as a return of capital to the
 
extent of the US holder’s basis in
 
its
UBS ordinary shares and thereafter as capital
 
gain. However, UBS
 
Group AG does not expect to
 
calculate earnings and profits
in accordance with US federal income tax principles.
 
Accordingly,
 
a US holder should expect to generally
 
treat distributions
we make on UBS ordinary shares as dividends.
 
 
Dividends paid to a noncorporate US holder that
 
constitute qualified dividend income
 
will be taxable to the holder at
preferential rates, provided that the holder
 
has a holding period in the shares of
 
more than 60 days during the 121
 
-day period
beginning 60 days before the ex-dividend date
 
and meets other holding period requirements.
 
Dividends paid by UBS Group
AG with respect to the ordinary shares will
 
generally be qualified as dividend income
 
provided that, in the year that the US
holder receives the dividend, the UBS
 
ordinary shares are readily tradable on
 
an established securities market in the United
States. The UBS ordinary shares are listed on the
 
New York
 
Stock Exchange, and UBS
 
Group AG therefore expects that
dividends will be qualified dividend income.
 
 
For US federal income tax purposes, a dividend
 
will include a distribution characterized
 
under Swiss law as a repayment of
capital contributions if the distribution is made
 
out of current or accumulated earnings
 
and profits, as described above.
 
 
 
 
 
 
Annual Report 2022
 
19
 
Dividends will generally be income from
 
sources outside the United States
 
for foreign tax credit limitation
 
purposes, and will
generally be "passive" income for purposes of
 
computing the foreign tax credit
 
allowable to the holder.
 
However, if (a) we are
50% or more owned, by vote or value, by
 
US persons and (b) at least 10% of our
 
earnings and profits are attributable to
sources within the US, then for foreign tax credit purposes,
 
a portion of our dividends would
 
be treated as derived from sources
within the US. With respect to
 
any dividend paid for any taxable year,
 
the US source ratio of our dividends
 
for foreign tax
credit purposes would be equal to the portion of
 
our earnings and profits from sources
 
within the United States for such
 
taxable
year, divided by the total
 
amount of our earnings and profits for such
 
taxable year. Special
 
rules apply in determining the
foreign tax credit limitation with respect to dividends
 
that are subject to preferential rates.
 
The dividend will not be eligible for
the dividends-received deduction generally
 
allowed to US corporations in respect of dividends
 
received from other
 
US
corporations.
 
In the case of dividends that are paid in Swiss
 
francs, the amount of the dividend distribution
 
included in income of a US
holder will be the US dollar value of the Swiss
 
franc payments made, determined at the spot
 
Swiss franc/US dollar rate on the
date such dividend distribution is includible in the
 
income of the US holder,
 
regardless of whether the payment is in
 
fact
converted into US dollars. Generally,
 
any gain or loss resulting from currency
 
exchange fluctuations during the period
 
from the
date the dividend payment is included in income
 
to the date such dividend payment is
 
converted into US dollars will be treated
as ordinary income or loss and will not be
 
eligible for the special tax rate applicable to qualified
 
dividend income. Such gain
 
or
loss will generally be income or loss from sources
 
within the United States for foreign tax
 
credit limitation purposes.
 
 
Subject to US foreign tax credit limitations,
 
the nonrefundable Swiss tax withheld
 
and paid over to Switzerland will be
creditable or deductible against the US holder’s
 
US federal income tax liability.
 
To the extent a reduction
 
or refund of the tax
withheld is available to a US holder under the laws
 
of Switzerland or under the Treaty,
 
the amount of tax withheld that is
refundable will not be eligible for credit
 
against the US holder’s US federal
 
income tax liability,
 
whether or not the refund is
actually obtained. See “(a) Ownership of
 
UBS Ordinary Shares – Swiss
 
Taxation”
 
above, for the procedures for obtaining
 
a tax
refund.
 
Transfers of UBS Ordinary
 
Shares
 
A US holder that sells or otherwise disposes of
 
UBS ordinary shares generally will
 
recognize capital gain or loss for US
 
federal
income tax purposes equal to the difference
 
between the US dollar value of the
 
amount realized and its tax basis,
 
determined in
US dollars, in such UBS ordinary shares. Capital gain
 
of a non-corporate US
 
holder is generally taxed at preferential rates
 
if
the UBS ordinary shares were held for more than
 
one year. The gain
 
or loss will generally
 
be income or loss from sources
within the United States for foreign tax credit limitation
 
purposes. A US holder will not be
 
allowed a foreign tax credit in
respect of any stamp duty or stock exchange levy
 
that is imposed upon a transfer of
 
UBS ordinary shares.
 
Passive Foreign Investment Company
 
(PFIC)
 
Rules
 
UBS Group AG believes that UBS ordinary shares
 
should not currently be treated
 
as stock of a PFIC for US federal income tax
purposes, and does not expect to become
 
a PFIC in the foreseeable future.
 
However, this
 
conclusion is a factual determination
made annually and thus may be subject to
 
change. It is therefore possible that UBS Group
 
AG could become a PFIC in a future
taxable year.
 
In general, UBS Group AG will be
 
a PFIC with respect to a US holder if,
 
for any taxable year in which the US
holder held UBS ordinary shares, either (i)
 
at least 75% of the gross income of UBS
 
Group AG for the taxable year is passive
income or (ii) at least 50% of the value, determined
 
on the basis of a quarterly
 
average, of UBS’s
 
assets is attributable to assets
that produce or are held for the production
 
of passive income (including cash). If
 
UBS Group AG were to be treated as a
 
PFIC,
gain realized on the sale or other disposition of
 
UBS ordinary shares would in general
 
not be treated as capital gain. Instead,
unless a US holder elects to be taxed annually
 
on a mark-to-market basis with respect
 
to its UBS ordinary shares, such
 
gain and
certain “excess distributions” would be treated
 
as having been realized ratably over
 
the holder’s holding
 
period for the shares
and generally would be taxed at the highest
 
tax rate in effect for each such year
 
to which the gain was allocated, together
 
with
an interest charge in respect of the tax
 
attributable to each such year.
 
With certain exceptions,
 
a holder’s UBS ordinary shares
will be treated as stock in a PFIC if UBS Group
 
AG was a PFIC at any time during
 
the holder’s holding period in the
 
UBS
ordinary shares. In addition, dividends received
 
from UBS Group AG would not be
 
eligible for the preferential tax
 
rate
applicable to qualified dividend income if
 
UBS Group AG were to be treated as a
 
PFIC either in the taxable year of the
distribution or the preceding taxable year,
 
but would instead be taxable at rates applicable
 
to ordinary income.
 
 
 
 
 
Annual Report 2022
 
20
 
Item 19.
 
Exhibits.
 
Exhibit
number
Description
1.1
1.2
. (Incorporated by reference to Exhibit
 
1.2 to UBS's
Annual Report on Form 20-F for the fiscal year
 
ended December 31, 2019)
 
1.3
(Incorporated by reference to Exhibit 1.3 to
UBS's Annual Report on Form 20-F
 
for the fiscal year ended December 31, 2021)
1.4
(Incorporated by reference
 
to Exhibit 1.4 to UBS's
Annual Report on Form 20-F
 
for the fiscal year ended December 31,
 
2021)
2(b)
Instruments defining the rights of the holders of
 
long-term debt issued by UBS
 
Group AG and its subsidiaries.
We agree to
 
furnish to the SEC upon request, copies
 
of the instruments, including indentures,
 
defining the rights of
the holders of our long-term debt and
 
of our subsidiaries’ long-term debt.
2(d)
4.1
. (Incorporated by
reference to Exhibit 4.3 to UBS AG's Annual Report
 
on Form 20-F
 
for the fiscal year ended December
 
31, 2014)
4.2
. (Incorporated by reference to
 
Exhibit 4.4 to UBS AG's
 
Annual Report on Form 20-F for the fiscal
year ended December 31, 2014)
4.3
. (Incorporated by reference to Exhibit
 
4.6 to UBS AG's Annual Report on
 
Form 20-F for the fiscal
year ended December 31, 2014)
4.4
. (Incorporated by reference to E
 
xhibit 4.8 to UBS's Annual Report
 
on Form 20-F for the fiscal year
 
ended
December 31, 2015)
4.5
. (Incorporated by reference to Exhibit
 
4.17 to UBS's
Annual Report on Form 20-F
 
for the fiscal year ended December 31,
 
2018)
 
4.6
. (Incorporated by reference to Exhibit
 
4.18 to UBS's
Annual Report on Form 20-F
 
for the fiscal year ended De
 
cember 31, 2018)
4.7
. (Incorporated by reference to Exhibit
 
4.19 to UBS's Annual Report on Form
 
20-F for the fiscal year
ended December 31, 2018)
4.8
 
(Incorporated
 
by reference to Exhibit 4.17 to UBS's Annual
 
Report on Form 20-F for the
 
fiscal year
ended December 31, 2019)
 
4.9
 
(Incorporated by reference to Exhibit
 
4.18 to UBS's Annual Report on Form
 
20-F for the fiscal
year ended December 31, 2019)
 
4.10
 
(Incorporated
 
by reference to Exhibit 4.19 to UBS's Annual
 
Report on Form 20-F for the
 
fiscal year
ended December 31, 2019)
 
4.11
. (Incorporated by reference to Exhibit
 
4.19 to UBS's Annual Report on Form
 
20-F for the fiscal year
ended December 31, 2020)
 
 
 
 
Annual Report 2022
 
21
 
4.12
. (Incorporated by reference to
 
Exhibit 4.20 to UBS's Annual Report on Form
 
20-F for the fiscal year
ended December 31, 2020)
4.13
. (Incorporated by reference to Exhibit
 
4.21 to UBS's Annual Report on Form 20
 
-F for the fiscal year
ended December 31, 2020)
4.14
. (Incorporated by reference to Exhibit
 
4.22 to UBS's Annual Report on Form
 
20-F for the fiscal year
ended December 31, 2020)
4.15
 
(Incorporated by reference to Exhibit
 
4.18 to UBS's Annual Report on Form 20
 
-F for the fiscal year
ended December 31, 2021)
4.16
 
(Incorporated by reference to
 
Exhibit 4.19 to UBS's Annual Report on Form
 
20-F for the fiscal year
ended December 31, 2021)
4.17
 
(Incorporated by reference to Exhibit
 
4.20 to UBS's Annual Report on Form 20
 
-F for the fiscal year
ended December 31, 2021)
4.18
 
(Incorporated by reference to Exhibit
 
4.21 to UBS's Annual Report on Form
 
20-F for the fiscal year
ended December 31, 2021)
4.19
4.20
(Incorporated by
reference to Form 6-K of UBS AG
 
filed on June 17, 2015)
8
Significant Subsidiaries of UBS Group
 
AG.
Please see Note 28 to each set of Financial Statements
 
(
Interests in subsidiaries and other
 
entities),
 
on pages 350-
354 and 471-475 of the Annual Report.
12
13
15.1
15.2
101
Interactive Data Files (sections of the
 
Annual Report formatted in inline XBRL
 
(Extensible Business Reporting
Language)). Furnished electronically herewith.
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
 
22
 
SIGNATURES
 
 
The registrants hereby certify
 
that they meet all
 
of the requirements for
 
filing on Form 20-F and that
 
they have duly caused the
 
undersigned to
 
sign this annual report
 
on their behalf.
 
 
UBS Group AG
 
 
_/s/ Ralph Hamers _______________
Name: Ralph Hamers
Title: Group Chief Executive
 
Officer
 
 
_/s/ Sarah Youngwood__________________
Name: Sarah Youngwood
Title: Group Chief Financial Officer
 
 
_/s/ Christopher Castello ___________
Name: Christopher Castello
Title: Group Controller and Chief
 
Accounting Officer
 
 
 
 
UBS AG
 
 
_/s/ Ralph Hamers ________________
Name: Ralph Hamers
Title: President of the Executive
 
Board
 
 
_/s/ Sarah Youngwood__________________
Name: Sarah Youngwood
Title: Chief Financial Officer
 
 
_/s/ Christopher Castello____________
Name: Christopher Castello
Title: Controller and Chief
 
Accounting Officer
 
 
 
Date: March 6,
 
2023
 
 
 
dev_UBS_AR_2022p23i0.jpg
 
 
 
Annual
 
Report
 
2022
 
UBS Group
 
AG and UBS AG
 
 
 
dev_UBS_AR_2022p24i0.jpg
 
 
Our external reporting approach
The scope
 
and content
 
of our
 
external reports
 
are determined
 
by Swiss
 
legal and
 
regulatory requirements,
 
accounting
standards,
 
relevant
 
stock
 
and
 
debt
 
listing
 
rules,
 
including
 
regulations
 
promulgated
 
by
 
the
 
Swiss
 
Financial
 
Market
Supervisory Authority (FINMA), the SIX Swiss Exchange,
 
the US Securities and Exchange Commission (the SEC) and other
regulatory requirements, as
 
well as by our
 
financial reporting
 
policies.
At the center of our external reporting approach
 
is the annual report of UBS Group AG,
 
which consists of disclosures for
UBS
 
Group
 
AG
 
and
 
its consolidated
 
subsidiaries.
 
We
 
also
 
provide
 
a
 
combined
 
annual
 
report
 
for
 
UBS
 
Group
 
AG
 
and
UBS
 
AG
 
consolidated,
 
which
additional
ly
 
includes
 
the
 
consolidated
 
financial
 
statements
 
of
 
UBS
 
AG
,
 
as
well
 
as
supplemental disclosures required
 
under SEC regulations,
 
and is the basis for our SEC Form 20-F
 
filing.
 
Annual Reports
 
The 2022 Annual Reports
 
(the UBS Group
 
AG Annual Report 2022 and the
 
combined UBS Group AG
 
and UBS AG
 
Annual
Report
 
2022)
 
include
 
the
 
consolidated
 
financial statements
 
of
 
UBS
 
Group
 
AG
 
and UBS
 
AG,
 
respectively,
 
and
 
provide
comprehensive information about our firm, including our strategy,
 
businesses, financial and operating performance, and
other key information.
 
The reports are
 
presented in US dollars.
 
The UBS Group AG
 
Annual Report 2022 is
 
partly translated
into German, with
 
the German translation available
 
as of 10 March 2023 under
 
“Annual reporting”
 
at
ubs.com/investors
.
The consolidated financial
 
statements of UBS
 
Group AG and
 
UBS AG have
 
been prepared in
 
accordance with
 
International
Financial Reporting Standards (IFRS). The sections within “Risk,
 
capital, liquidity and funding, and balance sheet“ include
certain audited financial information, which forms part of the
 
consolidated financial statements. The Annual Reports also
include the
 
statutory financial statements of
 
UBS Group
 
AG, which are the
 
basis for our
 
appropriation of profit
 
and the
proposed distribution of
 
dividends, subject to shareholder approval
 
at the Annual General Meeting.
Sustainability Report
The Sustainability Report, which
 
will be available
 
from 6 March 202
 
3, provides disclosures
 
on environmental,
 
social and
governance topics for UBS Group
 
.
 
Selected information on
 
environmental, social and governance
 
is also included in
 
our
Annual Report.
Standalone reports of significant regulated
 
entities
We
 
publish
 
separate
 
standalone
 
reports
 
for
 
UBS AG
 
and
 
UBS
 
Switzerland
 
AG.
 
Selected
 
financial
 
and
 
regulatory
 
key
figures for
 
these entities,
 
as well
 
as for UBS
 
Europe SE
 
and UBS
 
Americas Holding
 
LLC, are also
 
included
 
in our
 
annual
reports. The
 
UBS Europe SE
 
2022 financial statements and
 
complementary disclosures
 
will be published
 
on our website
in the first half of 2023.
Pillar 3 Report
The Pillar 3
 
Report
 
provides
 
detailed
 
quantitative
 
and
 
qualitative information
 
about
 
risk, capital,
 
leverage
 
and
 
liquidity
and
 
funding
 
for
 
UBS
 
Group
 
and
 
prudential
 
key
 
figures
 
and
 
regulatory
 
information
 
for
 
UBS
 
AG
 
standalone,
UBS Switzerland AG standalone,
 
UBS Europe SE consolidated and
 
UBS Americas Holding LLC consolidated.
Diversity, Equity and
 
Inclusion Report
The first global Diversity,
 
Equity and Inclusion (DE&I) Report, which will be available
 
in the second quarter of 2023, details
our DE&I priority areas of focus,
 
our strategic goals and
 
our approach to achieving them at UBS.
 
 
dev_UBS_AR_2022p25i0.jpg
 
 
 
dev_UBS_AR_2022p26i0.jpg
 
 
dev_UBS_AR_2022p27i0.jpg
 
 
dev_UBS_AR_2022p28i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
Contents
2
7
8
10
12
14
1
Our strategy,
 
business model and
environment
15
17
18
28
33
50
53
56
2
Financial and
 
operating performance
67
68
74
76
78
80
81
3
Risk, capital, liquidity and funding,
and balance sheet
83
134
 
 
4
Corporate governance
 
and compensation
164
200
5
Financial
 
statements
251
371
6
Significant regulated subsidiary and sub-
group information
491
7
Additional
regulatory information
494
502
A
Appendix
510
513
515
516
 
 
 
 
 
Annual Report 2022 |
Letter
 
to
 
shareholders
 
2
 
Dear shareholders,
In 2022,
 
the world
 
was impacted
 
by Russia’s
 
invasion of
 
Ukraine, which
 
led to
 
a humanitarian
 
crisis and
 
wide-ranging
sanctions.
 
The war
 
contributed to
 
higher
 
commodity
 
prices,
 
adding
 
to inflation,
 
which reached
 
multi-decade
 
highs
 
in
most major economies. This prompted
 
central banks to tighten monetary policy at
 
a pace not seen
 
since the 1980s.
 
As a
 
consequence, equity
 
and bond
 
markets fell in
 
tandem. Global
 
equities delivered
 
a total negative
 
return of
 
18.4%,
and global GDP growth
 
decelerated to 3.1% from 6.4%
 
in 2021.
 
Our 2022 financial performance
Our globally diversified business,
 
with strong positions
 
across Switzerland, Asia
 
Pacific, EMEA and the
 
US, allowed us to
deliver
 
value
 
for
 
both
 
our
 
clients and
 
you,
 
our
 
shareholders,
 
in
 
this
 
challenging
 
environment.
 
Our
 
outstanding
 
client
franchises are
 
underpinned
 
by a balance
 
sheet for
 
all seasons,
 
a strong
 
risk culture
 
and an
 
intense focus
 
on costs.
 
This
enabled us
 
to deliver good
 
results in 2022
 
and achieve our
 
Group financial targets
 
for the
 
full year,
 
with a net
 
profit of
USD 7.6bn, a return on
 
CET1 capital of 17.0% and a cost /
 
income ratio of 72.1%. We also
 
maintained a strong
 
capital
position,
 
ending
 
the year
 
with
 
a
 
CET1
 
capital ratio
 
of
 
14.2%
 
and
 
a CET1
 
leverage ratio
 
of
 
4.42%,
 
both
 
significantly
above our guidance.
 
Throughout 2022,
 
our clients turned
 
to us for
 
stability and advice.
 
We helped
 
them reposition their
 
portfolios and
 
take
advantage of
 
longer-term opportunities. This
 
resulted in
 
USD 60bn
 
of net new
 
fee-generating assets
 
in 2022.
 
Net new
money
 
from
 
our
 
asset
 
management
 
clients
 
reached
 
USD 25bn
 
for
 
the
 
year.
 
And
 
we
 
saw
 
continued
 
interest
 
in
 
our
separately managed account (SMA)
 
offering in the US and
 
in alternatives, contributing to our
 
strong momentum.
 
Leveraging our position as Switzerland’s
 
leading universal bank
In our home market of
 
Switzerland, we benefited from the stability of the economy and strengthened our position as the
country’s #1
 
universal bank.
 
In 2022, we
 
expanded our offering,
 
with a focus
 
on real estate,
 
sustainability and
 
pension
solutions. Additionally, for our corporate
 
clients, we launched a one
 
-stop marketplace for partner products
 
and services.
All this helped us deliver above-market growth.
 
And we plan to continue to do so. We will further invest in
 
our strategic
technology initiatives and
 
support our clients’
 
transition to mobile
 
banking, where
 
we have seen
 
a 10 percentage
 
point
increase in active mobile clients. At
 
the same time, we remain disciplined
 
on expenses.
 
After the initial launch of
 
UBS key4 in Switzerland, we continued to expand
 
our digital product range.
 
Increasingly, clients
want to invest and
 
manage their money
 
more independently,
 
preferably using their
 
smartphones. With UBS
 
key4 smart
investing, clients
 
can now
 
do everything
 
themselves –
 
from opening
 
an account
 
to buying
 
and selling
 
selected funds
 
–
easily, intuitively
 
and
 
all online.
 
Our
 
focus on
 
enhancing
 
user experience
 
has resulted
 
in excellent
 
client feedback
 
and
interest in engaging with
 
our digital product range.
Building on our scale in the
 
Americas
Regionally, more than half of our invested assets in wealth management come from clients in the US, which is
 
the largest
wealth pool
 
globally.
 
In 2022,
 
we remained
 
focused on
 
delivering our
 
entire firm to
 
our core
 
wealth, global
 
family and
institutional
 
wealth
 
clients
 
by
 
leveraging
 
our
 
investment
 
banking
 
and
 
asset
 
management
 
capabilities
 
as
 
well
 
as
 
our
thought leadership.
We will
 
add
 
to our
 
scale and
 
efficiencies by
 
continuing
 
to develop
 
tailored solutions
 
for global
 
family and
 
institutional
wealth
 
clients,
 
expanding
 
our
 
banking
 
capabilities
 
with
 
the
 
long-term
 
goal
 
of
 
becoming
 
our
 
clients’
 
primary
 
bank,
recruiting
 
highly
 
productive
 
advisors,
 
and
 
increasing
 
the
 
efficiency
 
and
 
effectiveness
 
of
 
our
 
advisors,
 
processes
and controls.
Advisor recruitment is an important component of our organic growth strategy in the US. We have
 
over 20% of Barron’s
Top
 
100 Private
 
Wealth Management
 
teams and
 
we
 
continued
 
to recruit
 
high-quality advisors
 
in 2022
 
to support
 
our
industry-leading advisor
 
productivity.
 
By improving
 
our use
 
of digitalization,
 
data and
 
analytics, we
 
are enhancing
 
our
financial
 
advisors’
 
ability
 
to
 
spend
 
more
 
time
 
with
 
clients,
 
and
 
offering
 
a
 
more
 
personalized,
 
relevant,
 
on-time
 
and
seamless client experience. While we continue to
 
simplify processes and invest in infrastructure and controls,
 
we are also
taking strategic and tactical actions
 
on costs to strengthen profitability.
 
 
 
 
 
Annual Report 2022 |
Letter
 
to
 
shareholders
 
3
 
Capturing growth opportunities in
 
Asia Pacific
Asia Pacific is
 
the fastest-growing
 
wealth market, and
 
our long-term commitment
 
to this
 
region is a cornerstone
 
of our
strategy. UBS is by far
 
the largest wealth manager
 
in the region, and we are #1
 
in equity
 
capital markets for non-domestic
banks. In
 
2022, we delivered
 
the best mergers
 
and acquisitions
 
year on record
 
and were recently
 
named both
 
the Best
Investment Bank
 
in Asia
 
and Australia by FinanceAsia
 
and the
 
Best Equity House
 
in Asia and
 
Australia by IFR. This
 
gives
us confidence
 
in our ability to
 
grow further. Our
 
diversified business
 
streams and
 
multi-shoring capabilities enable
 
us to
mitigate short-term geopolitical and
 
macroeconomic headwinds
 
and focus on longer-term opportunities.
The easing of COVID-19 restrictions
 
in China has led to a more
 
positive outlook for 2023,
 
and we are well positioned to
support clients
 
both onshore
 
and offshore
 
in China
 
and the
 
rest of Asia
 
Pacific when
 
client activity
 
levels increase.
 
Our
launch of WE.UBS in October
 
2022 marked the first
 
digital-led wealth management platform by a global wealth
 
manager
in China.
 
Here, our
 
goal
 
is to be
 
the provider
 
of choice
 
for digital-first
 
wealth advisory
 
for our
 
targeted clients.
 
And in
Southeast
 
Asia,
 
we
 
are
 
expanding
 
our
 
global
 
family and
 
institutional
 
wealth
 
business
 
to
 
better
 
serve
 
family
 
offices,
entrepreneurs and
 
Asian technology firms.
Driving focused growth in EMEA
In EMEA,
 
we made further
 
progress
 
on improving
 
profitability and driving
 
focused growth.
 
In 2022,
 
we completed the
sale of our domestic
 
wealth management business in Spain, following the sale
 
of our
 
domestic Austrian business in 2021.
We are
 
continuing
 
to pursue
 
growth
 
opportunities across
 
Europe
 
and
 
the Middle
 
East, especially
 
by
 
providing
 
holistic
coverage for
 
entrepreneurs.
 
In the
 
Investment Bank,
 
our Global
 
Markets business
 
had its
 
best year
 
on
 
record,
 
and
 
we
outperformed the fee pool in Global
 
Banking.
Making technology a differentiator
 
We
 
made
 
further
 
progress
 
in
 
leveraging
 
technology
 
as
 
a
 
differentiator,
 
through
 
simplification,
 
automation
 
and
 
user-
experience
 
improvements.
 
We
 
removed around
 
39,000 legacy
 
technology
 
components and
 
decommissioned
 
over 600
applications
 
in
 
an
 
effort
 
to
 
modernize
 
our
 
technology
 
estate
 
and
 
enhance
 
our
 
cybersecurity
 
position.
 
As
 
part
 
of
 
our
approximately USD 1.1bn
 
cumulative gross cost savings aspiration, we expect our technology strategy to help us achieve
USD 200m in gross
 
cost savings for 2023, which we
 
intend to reinvest.
We are
 
also supporting
 
the development
 
of new
 
financial market
 
infrastructure
 
and
 
are exploring
 
new
 
ideas to
 
create
better solutions for
 
our clients. For
 
example, digital assets and
 
distributed ledger technology have
 
the potential to
 
radically
transform our industry, and we expect
 
the market for digital
 
assets to continue to grow and evolve.
 
In 2022, we launched
and
 
issued
 
the
 
world’s
 
first digital
 
bond
 
that
 
is
 
publicly
 
traded
 
and
 
settled
 
on
 
both
 
blockchain-based
 
and
 
traditional
exchanges. Investors
 
can buy
 
this bond regardless
 
of whether they
 
have blockchain
 
infrastructure, removing a
 
hurdle in
the adoption of the
 
new and disruptive technology that can make issuing
 
bonds faster and more
 
efficient.
 
Investing in talent and
 
new ways of working
In 2022, we focused
 
on hiring talent with the right capabilities and
 
agile mindsets. And our
 
adoption of flexible ways of
working has
 
made us
 
an even
 
more attractive
 
employer. As
 
of year-end,
 
around
 
18,500 employees
 
across the
 
firm are
working in agile teams, which is helping
 
us deliver faster, better and in a more
 
connected way.
 
We are also
 
making progress toward
 
our aspiration
 
of increasing female and
 
ethnic minority representation.
 
Five of the
twelve members of
 
our Group
 
Executive Board,
 
and four of
 
the twelve members
 
of our
 
Board of
 
Directors, are female.
 
Women held 28% of Director and above roles globally
 
as of the end of 2022, while ethnic minority
 
employees held 20%
of Director and above roles in
 
the US and 23% in the UK.
We are
 
committed to ongoing education of
 
our workforce. We
 
invested USD 78m in training
 
in 2022, and our
 
permanent
employees completed an average of two training days
 
each. We are also investing in the next generation. We welcomed
more than 1,900 graduates, trainees, apprentices and interns
 
to our firm through our junior talent programs worldwide.
We
 
also
 
run
 
multi-year apprenticeship
 
programs
 
in
 
Switzerland,
 
Australia
 
and
 
the
 
UK,
 
along
 
with
 
summer internship
programs in numerous locations
 
globally. In 2022, for the 14th consecutive year, we
 
were recognized among
 
the top 50
of the World’s Most Attractive Employers
 
by employer-branding expert Universum.
 
 
 
dev_UBS_AR_2022p32i0.jpgdev_UBS_AR_2022p32i1.jpg
 
Annual Report 2022 |
Letter
 
to
 
shareholders
 
4
 
 
Colm Kelleher
Chairman of the Board
 
of Directors
Ralph Hamers
 
Group Chief Executive Officer
 
 
 
A leader in sustainability
 
The transition to net zero will be one
 
of the most consequential trends
 
in the coming years. Technological
 
advances and
the
 
need
 
for
 
new
 
infrastructure
 
and
 
new
 
products
 
in
 
carbon
 
markets an
 
d
 
agriculture
 
are
 
just
 
some
 
examples
 
of
 
the
opportunities ahead. Blended finance vehicles that leverage philanthropic capital bring public–private partnerships to the
fore.
 
We
 
have
 
made
 
good
 
progress
 
on
 
the
 
execution
 
of
 
our
 
sustainability
 
strategy,
 
as
 
outlined
 
in
 
our
 
Sustainability
Report 2022.
 
Our
 
progress
 
is
 
also
 
reflected
 
in
 
feedback
 
from
 
our
 
stakeholders.
 
At
 
our
 
2022
 
Annual
 
General
 
Meeting
 
(AGM),
 
our
shareholders supported our
 
climate roadmap, including our
 
net-zero targets. And we have made
 
progress toward
 
those
targets across many areas
 
of the firm,
 
from our lending business
 
to supply chains
 
to our
 
own operations. At the
 
upcoming
2023 AGM, we will ask you to
 
express your view on our
 
2022 non-financial reporting
 
in an advisory vote. This is set out
in our Sustainability Report 2022,
 
which describes our sustainability strategy,
 
ambitions, governance
 
and achievements.
 
A number of key sustainability ratings
 
have reconfirmed our leading
 
position. We were again included
 
in the Dow Jones
Sustainability Index and the CDP
 
Climate A list. We maintained our MSCI
 
ESG rating of AA, and saw
 
an improvement in
ESG risk rating by Sustainalytics, which
 
now considers our
 
firm as “low risk.”
 
Our commitment to society
 
and communities
UBS
 
is committed
 
to giving
 
back to
 
the communities
 
where
 
we live and
 
work through
 
long-standing partnerships
 
and
community-based
 
engagement
 
of
 
our
 
employees.
 
We
 
focus on
 
education
 
and
 
skill development
 
,
 
which
 
is
 
where
 
our
resources can
 
have the most
 
impact. In
 
2022,
 
34% of
 
our global
 
workforce engaged
 
in volunteering,
 
and 45%
 
of the
177,000 volunteer hours
 
were skills-based.
 
In 2022,
 
our UBS
 
Optimus Foundation
 
network raised
 
USD 274m
 
in donations,
 
including UBS
 
matching contributions,
and committed USD 150m
 
in grants. Donations and grants committed increased
 
by 70% and 39%
 
,
 
respectively.
As of
 
year-end 2022, the Ukraine Relief
 
Fund had disbursed
 
over half of
 
the more than USD 5
 
0m committed by clients,
employees, UBS and our
 
strategic partner XTX Markets
 
for relief and recovery efforts.
 
The fund is supporting
 
more than
25 organizations and
 
their local partners in Ukraine and the neighboring
 
countries of Poland, Moldova and Romania.
 
 
 
 
dev_UBS_AR_2022p33i1.jpgdev_UBS_AR_2022p33i0.jpg
 
Annual Report 2022 |
Letter
 
to
 
shareholders
 
5
 
Our commitment to capital returns,
 
today and in the future
We
 
remain
 
committed
 
to
 
delivering
 
attractive
 
capital
 
returns
 
and
 
creating
 
long-term
 
sustainable
 
value
 
for
 
our
shareholders. For the 2022
 
financial year, the Board
 
of Directors is proposing
 
a dividend to UBS Group
 
AG shareholders
of USD 0.55 per share, an increase of 10% year over year. Having also repurchased
 
USD 5.6bn of shares in 2022, we are
returning USD 7.3bn
 
of capital to our shareholders for the
 
financial year.
 
Looking ahead, we will remain focused
 
on the disciplined execution of
 
our strategy to create value for our shareholders.
We entered
 
2023 from
 
a position
 
of strength. We
 
remain committed
 
to a progressive
 
dividend and
 
expect to buy
 
back
more than USD 5bn of
 
shares in 2023.
 
Thank you
 
for your ongoing
 
support. We look
 
forward to your
 
feedback and to
 
welcoming you in
 
person to this
 
year’s
AGM, which will take place on
 
5 April in Basel, Switzerland.
 
 
 
Yours
 
sincerely,
 
 
 
 
Colm Kelleher
 
Ralph
Hamers
 
Chairman of the Board
 
of Directors
 
Group Chief Executive Officer
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Letter
 
to
 
shareholders
 
6
 
Corporate information
UBS Group AG
 
is incorporated and domiciled
 
in Switzerland and operates
under Art. 620ff. of
 
the Swiss Code of Obligations as an Aktiengesellschaft, a
corporation limited by shares. Its
 
registered office is
 
at Bahnhofstrasse 45,
CH-8001 Zurich, Switzerland,
 
telephone +41-44-234 11 11, and its corporate
identification number is
 
CHE-395.345.924. UBS Group AG was incorporated
on 10 June 2014 and was established
 
in 2014 as the holding company of
 
the
UBS Group. UBS Group
 
AG shares are listed on the SIX Swiss Exchange
 
and
on the New York
 
Stock Exchange (ISIN: CH0244767585;
 
CUSIP: H42097107).
UBS Group AG owns 100% of
 
the outstanding shares in UBS AG.
UBS AG
 
is incorporated and domiciled
 
in Switzerland and operates under
Art. 620ff. of the Swiss
 
Code of Obligations as an Aktiengesellschaft,
 
a
corporation limited by shares. The
 
addresses and telephone numbers of
 
the
two registered offices
 
of UBS AG are: Bahnhofstrasse 45,
 
CH-8001 Zurich,
Switzerland, telephone +41
 
-44-234 11 11; and Aeschenvorstadt 1, CH-4051
Basel, Switzerland, telephone +41
 
-61-288 50 50. The corporate identification
number is CHE-101.329.561. UBS
 
AG is a bank. The company was formed on
29 June 1998, when Union Bank
 
of Switzerland (founded in 1862) and
Swiss Bank Corporation (founded
 
in 1872) merged to form UBS AG.
Contacts
Switchboards
For all general inquiries
ubs.com/contact
 
Zurich +41-44-234 1111
London +44-207-567 8000
New York
 
+1-212-821 3000
Hong Kong SAR +852
 
-2971 8888
Singapore +65-6495 8000
Investor Relations
UBS’s Investor Relations team manages
relationships with institutional
 
investors,
research analysts and credit
 
rating agencies.
ubs.com/investors
Zurich +41-44-234 4100
New York
 
+1-212-882 5734
 
Media Relations
UBS’s Media Relations team manages
relationships with global media and
journalists.
ubs.com/media
Zurich +41-44-234 8500
mediarelations@ubs.com
London +44-20-7567 4714
 
ubs-media-relations@ubs.com
New York
 
+1-212-882 5858
 
mediarelations@ubs.com
Hong Kong SAR +852
 
-2971 8200
sh-mediarelations-ap@ubs.com
Office of the Group Company
 
Secretary
The Group Company Secretary
 
handles
inquiries directed to
 
the Chairman or to other
members of the Board
 
of Directors.
UBS Group AG, Office
 
of the
 
Group Company Secretary
P.O.
 
Box, CH-8098 Zurich, Switzerland
sh-company-secretary@ubs.com
Zurich +41-44-235 6652
Shareholder Services
UBS’s Shareholder Services
 
team,
 
a unit
 
of the Group Company Secretary’s
 
office,
manages relationships
 
with shareholders
and the registration of
 
UBS Group AG
registered shares.
UBS Group AG, Shareholder
 
Services
P.O.
 
Box, CH-8098 Zurich, Switzerland
sh-shareholder-services@ubs.com
Zurich +41-44-235 6652
US Transfer Agent
For global registered share
 
-related
 
inquiries in the US.
Computershare Trust
 
Company NA
 
P.O.
 
Box 505000
 
Louisville, KY 40233-5000,
 
USA
Shareholder online inquiries:
www-us.computershare.com/
investor/contact
Shareholder website:
computershare.com/investor
Calls from the US
 
+1-866-305-9566
Calls from outside the
 
US
 
+1-781-575-2623
TDD for hearing impaired
+1-800-231-5469
TDD for foreign shareholders
+1-201-680-6610
Corporate calendar
 
UBS Group AG
Publication of the Sustainability
 
Report 2022:
 
Monday,
 
6 March 2023
 
Annual General Meeting 202
3
:
 
Wednesday,
5
 
April 202
3
 
Publication of the first quarter 202
3
 
report:
 
Tuesday,
 
2
5
 
April 202
3
 
Publication of the second quarter 202
3
 
report:
 
Tuesday,
 
2
5
July 202
3
 
Publication of the third
 
quarter 202
3
 
report:
 
Tuesday,
 
2
4
 
October 202
3
 
Corporate calendar
 
UBS AG
Publication of the first q
uarter 202
3
 
report:
 
Thursday
,
2
7
 
April
 
202
3
 
Publication of the second
quarter 202
3
 
report:
 
Thursday
, 2
7
 
July 202
3
 
 
Additional publication dates of quarterly
 
and annual reports
 
will be made available as part of
 
the corporate calendar of UBS AG at
ubs.com/investors.
Imprint
Publisher: UBS Group
 
AG, Zurich, Switzerland | ubs.com
Language: English
© UBS 2023. The key symbol and UBS are
 
among the registered and
unregistered
 
trademarks of UBS. All rights reserved.
 
 
 
dev_UBS_AR_2022p35i0.gif
 
Annual Report 2022
 
7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
 
8
 
Our key figures
 
As of or for the year ended
USD m, except where indicated
31.12.22
31.12.21
31.12.20
Group results
Total revenues
 
34,563
 
35,393
 
33,084
Credit loss expense / (release)
 
29
 
(148)
 
694
Operating expenses
 
24,930
 
26,058
 
24,235
Operating profit / (loss) before tax
 
9,604
 
9,484
 
8,155
Net profit / (loss) attributable to shareholders
 
7,630
 
7,457
 
6,557
Diluted earnings per share (USD)
1
 
2.25
 
2.06
 
1.77
Profitability and growth
2
Return on equity (%)
 
13.3
 
12.6
 
11.3
Return on tangible equity
 
(%)
 
14.9
 
14.1
 
12.8
Return on common equity tier 1 capital (%)
 
17.0
 
17.5
 
17.4
Return on leverage ratio denominator,
 
gross (%)
3
 
3.3
 
3.4
 
3.4
Cost / income ratio (%)
 
72.1
 
73.6
 
73.3
Effective tax rate (%)
 
20.2
 
21.1
 
19.4
Net profit growth (%)
 
2.3
 
13.7
 
52.3
Resources
2
Total assets
 
1,104,364
 
1,117,182
 
1,125,765
Equity attributable to shareholders
 
56,876
 
60,662
 
59,445
Common equity tier 1 capital
4
 
45,457
 
45,281
 
39,890
Risk-weighted assets
4
 
319,585
 
302,209
 
289,101
Common equity tier 1 capital ratio (%)
4
 
14.2
 
15.0
 
13.8
Going concern capital ratio (%)
4
 
18.2
 
20.0
 
19.4
Total loss-absorbing capacity ratio (%)
4
 
33.0
 
34.7
 
35.2
Leverage ratio denominator
3,4
 
1,028,461
 
1,068,862
 
1,037,150
Common equity tier 1 leverage ratio
 
(%)
3,4
 
4.42
 
4.24
 
3.85
Liquidity coverage ratio (%)
5
 
163.7
 
155.5
 
152.1
Net stable funding ratio (%)
6
 
119.8
 
118.5
 
119.2
Other
Invested assets (USD bn)
7
 
3,957
 
4,596
 
4,187
Personnel (full-time equivalents)
 
72,597
 
71,385
 
71,551
Market capitalization
8
 
57,848
 
61,230
 
50,013
Total book value per share (USD)
8
 
18.30
 
17.84
 
16.74
Tangible book value per
 
share (USD)
8
 
16.28
 
15.97
 
14.91
1 Refer to “Share information
 
and earnings
 
per share” in the “Consolidated
 
financial statements”
 
section of this report
 
for more
 
information.
 
2 Refer to the
 
“Targets,
 
aspirations and capital
 
guidance” section
 
of
this report for more information
 
about our performance
 
targets.
 
3 Leverage
 
ratio denominators
 
and leverage
 
ratios for year 2020
 
do not reflect the
 
effects of the temporary
 
exemption that applied
 
from 25 March
2020 until 1
 
January 2021
 
and was granted
 
by FINMA in
 
connection with
 
COVID-19. Refer
 
to the “Regulatory
 
and legal
 
developments” section
 
of our Annual
 
Report 2020
 
for more information.
 
4 Based
 
on the
Swiss systemically relevant bank framework as of 1 January 2020. Refer to the “Capital,
 
liquidity and funding, and balance sheet” section
 
of this report for more information.
 
5 The disclosed ratios represent averages
for the fourth quarter of each
 
year presented, which
 
are calculated based on an
 
average of 63
 
data points in the fourth
 
quarter of 2022, 66
 
data points in the fourth
 
quarter of 2021 and
 
63 data points in the fourth
quarter of 2020. Refer
 
to the “Capital, liquidity
 
and funding, and
 
balance sheet”
 
section
 
of this report for
 
more information.
 
6 The final
 
Swiss net stable
 
funding ratio (NSFR)
 
regulation became effective
 
on 1 July
2021. Prior to this
 
date, the NSFR
 
was based
 
on estimated pro forma
 
reporting. Refer
 
to the “Capital,
 
liquidity and funding,
 
and balance
 
sheet” section of
 
this report for
 
more information.
 
7 Consists of invested
assets for Global Wealth Management, Asset Management
 
and Personal & Corporate Banking. Refer
 
to “Note 31 Invested assets and net new money”
 
in the “Consolidated financial statements”
 
section of this report
for more information.
 
8 Refer to “UBS
 
shares” in the “Capital, liquidity
 
and funding, and balance
 
sheet” section of this report
 
for more information.
 
 
 
 
Alternative performance
 
measures
An alternative
 
performance measure (an APM)
 
is a
 
financial measure of
 
historical or future financial
 
performance, financial
position
 
or
 
cash
 
flows
 
other
 
than
 
a
 
financial
 
measure
 
defined
 
or
 
specified
 
in
 
the
 
applicable
 
recognized
 
accounting
standards or in other applicable regulations. We report
 
a number of APMs in
 
the discussion of the financial
 
and operating
performance of
 
the Group,
 
our business
 
divisions and our
 
Group Functions.
 
We use APMs
 
to provide
 
a more complete
picture
 
of
 
our
 
operating
 
performance
 
and
 
to
 
reflect
 
management’s
 
view of
 
the
 
fundamental
 
drivers
 
of
 
our
 
business
results.
 
A
 
definition
 
of
 
each
 
APM,
 
the
 
method
 
used
 
to
 
calculate it
 
and
 
the
 
information
 
content
 
are
 
presented
 
under
“Alternative performance
 
measures”
 
in the
 
appendix
 
to this
 
report.
 
Our APMs
 
may q
 
ualify as
 
non-GAAP
 
measures as
defined by US Securities and Exchange
 
Commission (SEC) regulations
 
.
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
 
9
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Terms used in this report, unless the
 
context requires otherwise
“UBS,” “UBS Group,” “UBS
 
Group AG consolidated,”
“Group,” “the Group,” “we,”
 
“us” and “our”
UBS Group AG and
 
its consolidated subsidiaries
“UBS AG consolidated”
 
UBS AG and its consolidated
 
subsidiaries
“UBS Group AG” and “UBS
 
Group AG standalone”
 
UBS Group AG on
 
a standalone basis
“UBS AG” and “UBS AG standalone”
 
UBS AG on a standalone
 
basis
“UBS Switzerland AG” and “UBS Switzerland
 
AG
standalone”
UBS Switzerland AG on
 
a standalone basis
“UBS Europe SE consolidated”
 
UBS Europe SE
 
and its consolidated subsidiaries
“UBS Americas Holding LLC” and
 
“UBS Americas Holding LLC consolidated”
UBS Americas Holding LLC and
 
its consolidated
subsidiaries
“1m”
One million, i.e., 1,000,000
“1bn”
One billion, i.e., 1,000,000,000
“1trn”
One trillion, i.e., 1,000,000,000,000
In this report, unless the
 
context requires otherwise, references
 
to any gender shall apply to all genders.
 
dev_UBS_AR_2022p38i1.jpgdev_UBS_AR_2022p38i0.gif
 
 
Our Board of Directors
1
Colm Kelleher
 
Chairman of the Board of Directors
 
/ Chairperson of the
 
Corporate Culture and Responsibility
 
Committee /
Chairperson of the Governance and
 
Nominating Committee
2
Mark Hughes
 
Chairperson of the Risk Committee
 
/ member of the
 
Corporate Culture and Responsibility
 
Committee
3
Jeanette Wong
 
Member of the Audit Committee /
 
member of the
 
Compensation Committee
4
Jeremy Anderson
 
Senior Independent Director / Chairperson
 
of the
 
Audit Committee / member
 
of the Governance and
 
Nominating Committee
5
Fred Hu
 
Member of the Governance and
 
Nominating Committee
6
Lukas Gähwiler
Vice Chairman of the Board
 
of Directors
7
Claudia Böckstiegel
 
Member of the Corporate
 
Culture and
 
Responsibility Committee
8
Patrick Firmenich
 
Member of the Audit Committee /
 
member of the
 
Corporate Culture and Responsibility
 
Committee
9
Nathalie Rachou
 
Member of the Governance and
 
Nominating Committee /
member of the Risk Committee
10
Julie G. Richardson
 
Chairperson of the Compensation
 
Committee /
member of the Risk Committee
11
William C. Dudley
 
Member of the Corporate
 
Culture and
Responsibility Committee /
 
member of the Risk Committee
12
Dieter Wemmer
 
Member of the Audit Committee /
 
member of the Compensation
 
Committee
dev_UBS_AR_2022p39i0.jpg
 
 
 
The Board of Directors (the
 
BoD) of UBS Group AG,
 
under the
 
leadership
 
of the
 
Chairman,
 
consists
 
of between
 
6 and 12
 
members
as
 
per our
 
Articles of
 
Association. The BoD
 
decides on
 
the strategy
 
of
 
the Group
 
upon
 
recommendation by
 
the Group
 
Chief
Executive
 
Officer
 
(the
 
Group
 
CEO)
 
and
 
is
 
responsible
 
for
 
the
 
overall
 
direction, supervision
 
and
 
control of
 
the
 
Group
 
and
 
its
management, as well as for supervising compliance
 
with applicable laws, rules and regulations.
 
The BoD exercises oversight over
UBS Group AG
 
and its subsidiaries and is
 
responsible for establishing a clear
 
Group governance framework to provide effective
steering and
 
supervision of
 
the Group,
 
taking into
 
account the
 
material risks to
 
which UBS
 
Group AG
 
and its
 
subsidiaries are
exposed. The BoD has ultimate responsibility
 
for the success of the Group and for
 
delivering sustainable
 
shareholder value within
a framework of
 
prudent and effective controls, approves all
 
financial statements for issue,
 
and appoints and removes
 
all Group
Executive Board (GEB) members.
 
dev_UBS_AR_2022p40i0.jpg
 
 
Our Group Executive Board
UBS
 
Group
 
AG
 
operates
 
under
 
a
 
strict dual
 
-board
 
structure,
 
as
 
mandated
 
by
 
Swiss
 
banking
 
law,
 
and
 
therefore
 
the
 
BoD
delegates the
 
management of
 
the business
 
to the GEB.
 
Under the
 
leadership of
 
the Group CEO,
 
the GEB was
 
composed
 
of
12
 
members as
 
of 31
 
December
 
2022
 
and has
 
executive management
 
responsibility
 
for
 
the
 
steering
 
of
 
the
 
Group
 
and
 
its
business.
 
It
 
develops
 
the
 
strategies
 
of
 
the
 
Group,
 
the
 
business
 
divisions
 
and
 
Group
 
Functions,
 
and
 
implements
 
the
 
BoD-
approved strategies.
›
 
Refer to “Board of
 
Directors”
 
and “Group Executive
 
Board” in the “Corporate
 
governance”
 
section of this
 
report or to
ubs.com/bod
 
and
ubs.com/geb
 
for the full
 
biographies of our
 
BoD and GEB
 
members
 
 
dev_UBS_AR_2022p41i1.jpgdev_UBS_AR_2022p41i0.gif
 
 
 
 
1
Ralph Hamers
Group Chief Executive Officer
2
Sabine Keller-Busse
 
President Personal & Corporate Banking
 
and
 
President UBS Switzerland
3
Naureen Hassan
 
President UBS Americas
4
Edmund Koh
 
President UBS Asia Pacific
5
Barbara Levi
 
Group General Counsel
6
Markus Ronner
 
Group Chief Compliance and
 
Governance
Officer
7
Robert Karofsky
 
President Investment Bank
8
Sarah Youngwood
Group Chief Financial
 
Officer
9
Suni Harford
 
President Asset Management
10
Mike Dargan
 
Group Chief Digital and Information
 
Officer
11
Iqbal Khan
President Global Wealth Management
 
and
 
President UBS Europe, Middle
 
East and Africa
12
Christian Bluhm
 
Group Chief Risk Officer
 
 
dev_UBS_AR_2022p42i0.gif
 
Annual Report 2022
 
14
 
Our evolution
Since our
 
origins
 
in the
 
mid-19th
 
century, many
 
financial institutions
 
have become
 
part of
 
the history
 
of our
 
firm and
helped shape
 
our development.
 
1998
 
was a major
 
turning point:
 
two of
 
the three
 
largest Swiss
 
banks, Union
 
Bank of
Switzerland and Swiss Bank Corporation (SBC), merged
 
to form UBS. Both banks were well established and successful in
their own
 
right. Union
 
Bank of
 
Switzerland had
 
grown organically
 
to become
 
the largest
 
Swiss bank.
 
In contrast,
 
SBC
had grown mainly through
 
strategic partnerships
 
and acquisitions, including
 
S.G. Warburg in 1995.
In
 
2000,
 
we
 
acquired
 
PaineWebber,
 
a
 
US
 
brokerage
 
and
 
asset
 
management
 
firm
 
with
 
roots
 
going
 
back
 
to
 
1879,
establishing us
 
as a significant
 
player in
 
the US.
 
For nearly
 
60 years,
 
we have
 
been
 
building our
 
strong presence
 
in the
Asia Pacific region,
 
where we
 
are by
 
far the largest
 
wealth manager,
1
 
with asset management
 
and investment banking
capabilities.
After incurring significant losses in
 
the 2008 financial crisis, we
 
sought to return to our roots, emphasizing a client-centric
model that requires less
 
risk-taking and
 
capital. In 2011,
 
we
 
started a strategic transformation
 
of our business
 
model to
focus on our traditional businesses:
 
wealth management globally, and
 
personal and corporate banking in
 
Switzerland.
Today, we are a leading
 
and truly global wealth manager,
2
 
a leading Swiss
 
personal and corporate bank,
 
a global,
 
large-
scale and diversified asset manager,
 
and a focused investment bank.
In 2014,
 
we began
 
adapting our
 
legal entity structure
 
in response
 
to too-big-to-fail
 
requirements and
 
other regulatory
initiatives.
 
First,
 
we
 
established
 
UBS
 
Group
 
AG
 
as
 
the
 
ultimate
 
parent
 
holding
 
company
 
for
 
the
 
Group.
 
In
 
2015,
 
we
transferred personal
 
and corporate banking and
 
Swiss-booked wealth management businesses
 
from UBS
 
AG to
 
the newly
established UBS Switzerland AG.
 
That same year,
 
we set up UBS
 
Business Solutions AG as the
 
Group’s service company.
In 2016,
 
UBS Americas Holding
 
LLC became the
 
intermediate holding
 
company for
 
our US
 
subsidiaries and
 
our wealth
management
 
subsidiaries
 
across
 
Europe
 
were
 
merged
 
into
 
UBS
 
Europe
 
SE,
 
our
 
Germany-headquartered
 
European
subsidiary.
 
In 2019, we merged UBS Limited, our UK
 
-headquartered subsidiary,
 
into UBS Europe SE.
The chart below gives an overview of
 
our principal legal entities and
 
our legal entity structure.
›
 
Refer to
ubs.com/history
 
for more information
›
 
Refer to the “Risk
 
factors” and “Regulatory
 
and legal developments”
 
sections of this
 
report for more information
 
 
The legal structure of the UBS Group
 
 
1
 
Private banking assets under management
 
excluding China onshore in
 
2021, according to Asian
 
Private Banker.
2
 
Statements of market position for
 
Global Wealth Management
 
are based on UBS’s
 
internal estimates and publicly
 
available information
 
about competitors’ invested
 
assets.
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
mode
l
 
and
 
environment
 
|
 
Our
 
strategy
 
15
 
Our strategy, business
 
model and
environment
Management report
 
 
Our strategy
UBS – who we are
UBS is a leading and
 
truly global wealth manager with
 
focused asset management
 
and investment banking
 
capabilities,
and the leading universal bank
 
in Switzerland. We enable people,
 
institutions and corporations to achieve
 
their goals by
providing financial
 
advice and solutions.
 
We have a
 
capital-light, cash-generative
 
and well-diversified
 
business model,
 
a
strong culture, a balance sheet
 
for all seasons,
 
and a respected brand with over 160 years of history.
At UBS, we are driven
 
by a common purpose:
Reimagining the power of investing. Connecting
 
people for a better
world.
 
This focus provides direction on
 
the way forward and helps us build
 
on our strengths.
We are focused on driving long-term
 
growth while maintaining
 
risk and cost discipline
Our objective is
 
to generate value
 
for our shareholders
 
and clients by
 
driving long
 
-term growth. To
 
accomplish this, we
are
 
building
 
on
 
our
 
scale,
 
content
 
and
 
solutions,
 
while
 
remaining
 
disciplined
 
on
 
risk
 
and
 
costs.
 
This
 
will
 
give
 
us
 
the
capacity to invest
 
strategically and will enable us
 
to deliver
 
against our financial targets and
 
commercial aspirations, which
are outlined in the “Targets,
 
aspirations and capital guidance”
 
section of this report.
Moreover, we are aiming to
 
maximize our and our
 
clients’ impact to create
 
long-term sustainable
 
value. We also have a
responsibility toward our communities and
 
employees. We have outlined selected environmental,
 
social and governance
(ESG) aspirations, which should
 
support our financial and commercial targets.
Our business model helps us to achieve
 
our growth ambitions
In early
 
2022,
 
we set
 
out our
 
strategy, which
 
we have
 
been executing
 
on since.
 
Our growth
 
plans
 
aim to
 
increase the
value of our
 
network of clients,
 
connections and
 
contributors, in
 
which UBS’s scale,
 
global reach
 
and capabilities play a
central role.
Our
 
invested
 
assets
 
of
 
USD 4.0trn
 
are regionally
 
diversified across
 
the
 
globe,
 
making us
 
a
 
highly attractive
 
partner
 
to
many sophisticated
 
and
 
specialized contributors.
 
This enables
 
us to
 
give our
 
clients access
 
to a
 
broader,
 
more relevant
and
 
customizable range
 
of solutions,
 
which, together
 
with our
 
thought leadership
 
and
 
capabilities, position
 
us well
 
to
become their
 
partner of
 
choice. Our
 
plans are
 
a reflection
 
of the
 
outlook on
 
long-term demographic
 
and social
 
trends
affecting wealth distribution,
 
product demand and
 
client experience.
 
As we see clients’
 
needs changing,
 
we also expect
continued growth
 
in alternatives and ESG products.
Clients are
 
at the center of everything
 
we do
Helping
 
clients to
 
achieve
 
their
 
financial
 
goals
 
is
 
the
 
essence
 
of
 
what
 
we
 
do.
 
We
 
aim to
 
differentiate
 
our
 
service
 
by
delivering a client experience that is personalized,
 
relevant, on-time and
 
seamless. This is our promi
 
se to clients.
With evolving client needs,
 
we are adapting
 
by making our wealth
 
coverage more needs
 
-based, digital and effective.
 
In
wealth
 
management,
 
our
 
focus
 
remains
 
on
 
our
 
core
 
wealth,
 
global
 
family
 
and
 
institutional
 
wealth
 
clients,
 
while
expanding our
 
coverage of entrepreneurs,
 
women and the next generation of wealthy individuals. We are launching and
scaling
 
digitally
 
customizable
 
services,
 
enhancing
 
personally
 
advised
 
wealth
 
with
 
digital
 
support,
 
and
 
expanding
 
our
custom offerings for global family and
 
institutional wealth to cater for
 
the different needs of our
 
clients
.
›
 
Refer to “Clients” in
 
the “How we create
 
value for our
 
stakeholders” section
 
of this report for
 
more information
We have a global,
 
diversified business model
Regionally,
 
more than half of our
 
wealth management
 
clients’
 
invested assets are
 
in the US, which
 
is the largest wealth
pool globally.
 
Here, we are focused on
 
improving scale and profitability
 
by deepening our
 
relationships with core clients
and by building out Global
 
Wealth Management’s digital-led capabilities
 
and banking platform.
In Asia
 
Pacific,
 
which is the
 
fastest-growing
 
wealth market, we
 
are by far
 
the largest
 
wealth manager
1
 
and are
 
building
on
 
that
 
scale
 
to
 
drive
 
growth.
 
We
 
are
 
further
 
developing
 
our
 
onshore
 
business
 
in
 
China
 
and
 
working
 
to
 
offer
 
our
capabilities in a more cohesive way to
 
our clients in Southeast Asia.
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
mode
l
 
and
 
environment
 
|
 
Our
 
strategy
 
16
 
In EMEA,
 
we are focused on
 
improving profitability and
 
driving focused
 
growth, by streamlining
 
our domestic footprint
and providing holistic coverage for entrepreneurs.
Finally, in Switzerland, we have a highly integrated business and aim to
 
expand our lead as the #1 universal bank. We are
driving
 
the
 
digital
 
transformation,
 
improving
 
the
 
client
 
experience,
 
and
 
focusing
 
on
 
capturing
 
selected
 
growth
opportunities.
Our growth plans are underpinned by
 
our asset management and investment
 
banking capabilities
Our
 
asset
 
management
 
business
 
provides
 
clients
 
with
 
a
 
broad
 
offering
 
and
 
exclusive
 
access
 
to
 
premium
 
customized
services,
 
while
 
our
 
investment
 
banking
 
capabilities
 
support
 
our
 
growth
 
plans
 
across
 
the
 
client
 
franchise
 
with
 
unique
insights,
 
execution
 
and
 
risk
 
management.
 
Close
 
collaboration
 
between
 
our
 
businesses
 
also
 
adds
 
value
 
for
 
clients,
including in private markets, alternatives
 
and ESG products, and
 
we are actively
 
looking for additional such opportunities.
Sustainability drives our ambitions
 
and informs our purpose
We partner
 
with our
 
clients to
 
help them
 
mobilize their
 
capital toward
 
a more
 
sustainable world.
 
At UBS,
 
we want
 
to
meet clients’ demands for a
 
credible sustainable offering.
 
We want to be the financial
 
provider of choice for
 
clients that
wish to
 
mobilize capital toward
 
the achievement of
 
the United
 
Nations Sustainable Development
 
Goals and
 
the orderly
transition to a
 
low-carbon economy.
 
In Switzerland, as
 
the leading universal bank,
 
we are helping
 
finance the country’s
transition to net zero.
We are investing in our technology
The trusted
 
and personal
 
relationship
 
with our
 
clients across
 
our businesses
 
is evolving.
 
Today,
 
our clients expect us to
provide our services
 
more seamlessly
 
across the
 
firm in a
 
personalized,
 
relevant and
 
timely
 
fashion, with increasing demand
for services that are digital first,
 
anytime and anywhere.
 
This presents an opportunity
 
for us to fully embrace technology
and make
 
it a differentiator
 
for our firm.
 
To
 
support our
 
ambitions, we have
 
established our technology
 
strategy based
on
 
five key
 
pillars: (i) Agile@UBS,
 
a unified
 
approach
 
to working
 
in an
 
agile way
 
across the
 
firm to
 
become faster
 
and
more adaptable;
 
(ii) engineering
 
excellence, as,
 
in order
 
to succeed
 
in making
 
technology
 
a differentiator
 
for our
 
firm,
we must attract and retain the best
 
engineers, which is only possible by creating and fostering an engineering and digital
culture
 
of
 
excellence;
 
(iii) quarterly
 
business
 
reviews
 
and
 
digital
 
roadmaps
 
that
 
help
 
us
 
to
 
manage
 
our
 
technology
investment portfolio
 
in a more
 
strategic and
 
flexible way;
 
(iv) automation,
 
which increases
 
efficiency and
 
effectiveness;
and (v) modern technology,
 
which accelerates digitalization and
 
efficiency.
We are becoming simpler and more efficient
In
 
order
 
to
 
continuously
 
increase
 
efficiency and
 
our capacity
 
to
 
invest,
 
we
 
are
 
working
 
to become
 
simpler,
 
by
 
further
streamlining
 
and
 
standardizing
 
our
 
functions,
 
processes,
 
entities
 
and
 
general
 
ways
 
of
 
doing
 
business,
 
including
 
our
Agile@UBS approach,
 
to ultimately improve the client experience.
 
 
1
 
Private banking assets under management
 
excluding China onshore in
 
2021, according to Asian
 
Private Banker.
 
Our focus on technology
The world is faster,
 
more digital and more data-driven than ever before, with clients increasingly demanding services that
are digital first, anytime,
 
anywhere, and underpinned
 
by first-class technology. Through
 
our technology strategy and five
key pillars
 
(Agile@UBS; engineering excellence; quarterly business
 
reviews and digital
 
roadmaps; automation;
 
and modern
technology),
 
we aim to
 
make technology
 
a differentiator for
 
our clients and
 
employees, helping
 
to deliver on
 
our client
promise. We
 
are championing
 
the adoption
 
of a single,
 
consistent, agile
 
setup across the
 
firm, driving transformational
and
 
sustainable
 
approaches
 
to
 
our
 
real
 
estate
 
and
 
technology,
 
building
 
an
 
engineering
 
culture
 
to
 
be
 
proud
 
of,
 
and
fostering firm-wide operational resilience.
In 2022,
 
our unified agile
 
approach helped
 
us drive greater business
 
value, enhance
 
the client experience
 
and be
 
more
responsive
 
and
 
adaptable,
 
with
 
faster
 
delivery
 
of
 
client
 
digital
 
solutions.
 
Overall,
 
approximately
 
18,500
 
employees
transitioned to
 
working in new
 
Agile@UBS ways, and we
 
continued our efforts to
 
create
 
and foster
 
an engineering culture
of
 
excellence,
 
in
 
order
 
to
 
attract
 
and
 
retain
 
the
 
best
 
engineers.
 
Currently,
 
approximately
 
two-thirds
 
of
 
our
 
global
technology team within the Chief
 
Digital and Information Office
 
(CDIO) are engineers that are
 
instrumental to responding
to
 
our
 
clients’ digital
 
needs,
 
while
 
the
 
remaining
 
part
 
of
 
the
 
technology
 
team
 
manages
 
critical operational
 
functions
at UBS.
›
 
Refer to “Clients” in
 
the “How we create
 
value for our
 
stakeholders” section
 
of this report for
 
more information about
 
client
digital solutions
›
 
Refer to “Employees”
 
in the “How we
 
create value for
 
our stakeholders”
 
section of this
 
report for more information
 
about agile
ways of working
 
 
 
dev_UBS_AR_2022p45i0.gif
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
mode
l
 
and
 
environment
 
|
 
Our
 
strategy
 
17
 
We are using the quarterly
 
business reviews and digital roadmaps to help us manage
 
our technology investment portfolio
in a more
 
strategic and
 
flexible way.
 
During 2022,
 
we aligned
 
70% of
 
our technology
 
investments to
 
agile teams
 
that
deliver incremental
 
and
 
continuous
 
value
 
to
 
our clients.
 
In
 
addition,
 
we
 
also
 
moved
 
from
 
multiple to
 
one
 
single
 
UBS
DevCloud
 
toolchain
 
and
 
we
 
are
 
increasingly
 
adopting
 
an
 
industry-standard
 
set
 
of
 
metrics
 
(DORA)
 
to
 
measure
 
the
efficiency of our software development
 
process.
We believe
 
the bank of
 
the future
 
will leverage a
 
lean, modern technology estate
 
and Cloud-based applications to provide
clients
 
with
 
flexible,
 
best-in-class
 
service.
 
As
 
such,
 
in
 
2022,
 
we
 
removed
 
approximately
 
39,000
 
legacy
 
technology
components and decommissioned more
 
than 600 applications,
 
as a
 
step to
 
modernize our technology
 
estate and
 
enhance
our cybersecurity position. We also
 
announced the landmark
 
expansion of our partnership
 
with Microsoft, to accelerate
our Cloud footprint over the
 
next five years. As of 31 December
 
2022, 65% of our applications were on the
 
public Cloud
(i.e., servers not on UBS’s
 
premises) or on our private Cloud (i.e.,
 
servers on UBS’s premises).
 
 
 
Targets, aspirations and capital guidance
 
We aim
 
to create
 
sustainable
 
value through
 
the cycle,
 
which is
 
reflected by
 
our financial
 
targets.
 
In addition,
 
we have
outlined selected commercial aspirations,
 
which support these targets.
 
Our
 
capital
 
guidance
 
remains
 
unchanged.
 
We
 
intend
 
to operate
 
with
 
a
 
common
 
equity
 
tier
 
1
 
(CET1)
 
capital ratio
 
of
around 13%
 
and a CET1 leverage
 
ratio of greater
 
than 3.7%. The
 
Investment Bank is
 
expected to represent
 
up to one-
third of Group risk-weighted
 
assets and leverage ratio denominator.
Performance
 
against
 
targets,
 
aspirations
 
and
 
capital
 
guidance
 
is
 
taken
 
into
 
account
 
when
 
determining
 
variable
compensation.
The
 
table
below
 
shows
 
our
 
targets,
 
guidance
 
and
 
aspirations
,
 
based
 
on
 
reported
 
results.
 
Our
 
aspirations
 
on
environmental, social
 
and governance
 
(ESG) are
 
set forth
 
in “Our
 
focus on
 
sustainability and
 
climate” in the
 
“How we
create value for our stakeholders”
 
section of this report.
›
 
Refer to “Society” and
 
“Our focus on sustainability
 
and climate” in
 
the “How we create
 
value for our
 
stakeholders” section
 
and to
the “Corporate governance”
 
section of this
 
report for more information
 
about ESG
›
 
Refer to the “Compensation”
 
section of this
 
report for more information
 
about variable compensation
›
 
Refer to “Alternative
 
performance
 
measures” in the
 
appendix to this
 
report for definitions
 
of and further information
 
about our
performance measures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Our
 
businesses
 
18
 
Our businesses
Delivering one ecosystem
We
 
operate
 
through
 
four
 
business
 
divisions:
 
Global
 
Wealth
 
Management,
 
Personal
 
&
 
Corporate
 
Banking,
 
Asset
Management and the Investment
 
Bank. Our global reach and the breadth of our expertise are the
 
major assets setting us
apart from our competitors.
 
We see
 
joint efforts
 
as key
 
to our
 
growth,
 
both
 
within and
 
between
 
business divisions.
 
We combine
 
our strengths
 
to
provide
 
our
 
clients
 
with
 
better,
 
innovative
 
solutions
 
and
 
differentiated
 
offerings,
 
for
 
example,
 
our
 
Global
 
Family
 
&
Institutional
 
Wealth
 
(GFIW)
 
offering
 
with
 
integrated
 
global
 
coverage.
 
Initiatives such
 
as
 
the
Group
 
Franchise
 
Awards
 
encourage employees to look for ways to
 
connect across teams and offer
 
the whole firm to our clients.
 
How we deliver the
 
whole firm to our clients – examples
Global Family & Institutional
 
Wealth
GFIW is a cross-divisional
 
offering that leverages capabilities
 
from the Investment Bank and client
coverage from Global
 
Wealth Management to address
 
the execution, investment, risk management,
financing and banking needs
 
of family offices and their corporate entit
 
ies, as well as entrepreneurs.
Drawing on UBS’s client ecosystem,
 
we aim to connect clients with like-minded peers
 
and recognized
experts to exchange ideas and bring
 
opportunities to life for a return and impact.
 
Client coverage is
managed via regional
 
cross-functional teams (GFIW market pods).
Wealth management platforms
In our major booking centers
 
outside the Americas, we use the Wealth
 
Management Platform, which is
shared between Global Wealth
 
Management and Personal &
 
Corporate Banking in Switzerland. In the
Americas, we continue
 
to build out our Wealth Management Americas
 
digital capabilities. All our
platforms can be navigated intuitively
 
and support strong advisory capabilities
 
across channels, helping
our clients to benefit from
 
a broader universe of products
 
and services, simplified onboarding, and
 
a
better banking experience.
Separately managed accounts (SMAs)
 
We offer Global Wealth
 
Management clients access to selected separately
 
managed account strategies in
the Americas with no additional management
 
fees, including an extensive range of strategies managed
by Asset Management. This enables
 
our advisors to focus on delivering the best
 
ideas, solutions and
capabilities to our clients, regardless
 
of where they originate.
 
Shifts and referrals
To
 
best serve our clients according to
 
their needs, and to foster growth, we operate a
 
holistic
collaboration framework within our
 
universal bank delivery model in Switzerland. We
 
initiate client shifts
from Personal Banking to
 
Global Wealth Management as their needs become
 
more complex. Examples of
referrals include corporate
 
and institutional clients being introduced
 
to Asset Management for mandate
solutions or to the Investment
 
Bank for capital market transactions, thus
 
providing access to our global
expertise, and entrepreneurs
 
being introduced to Global Wealth
 
Management, ensuring holistic coverage
of their corporate and private n
 
eeds.
Global Lending Unit
The Global Lending Unit delivers
 
lending capabilities to clients of both
 
the Investment Bank and Global
Wealth Management. The
 
unit provides product expertise
 
to clients through collaboration with
Investment Bank bankers and
 
Global Wealth Management advisors. It is organized
 
with a regional focus
by grouping existing regional
 
resources and competencies
 
to best serve respective markets and clients.
 
Unified Global Markets
 
We continue to develop
 
the cross-divisional strategic partnership between
 
Global Wealth Management
and the Investment Bank, focused on
 
providing differentiated
 
content that helps our clients identify the
best trading opportunities, uncover
 
new evidence, and generate fresh insights
 
to meet their investment
needs.
 
Through our integrated approach,
 
we provide structured, scalable investment products,
 
asset and
liability management solutions,
 
financing alternatives and other value-added bespoke
 
solutions that
deliver a quality client experience
 
and outcome by catering to specific coverage
 
needs.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Our
 
businesses
 
19
 
Global Wealth Management
 
As a leading and truly
 
global wealth manager,
1
 
we help our clients
 
pursue what matters most to them.
 
More than 20,000
employees around
 
the world
 
help
 
to manage
 
our clients’
 
finances
 
from locations
 
in the
 
Americas, Europe,
 
the Middle
East
 
and
 
Asia. Clients
 
look
 
to us
 
to provide
 
them
 
with the
 
tailored
 
advice, expertise
 
and
 
solutions
 
that
 
they
 
need,
 
to
protect and
 
grow their wealth,
 
today, tomorrow and
 
for generations
 
to come. The size
 
and diversification
 
of our global
franchise, our bespoke cross
 
-divisional solutions, and our premium
 
brand and reputation set us
 
apart.
We
 
have
 
strong
 
positions
 
in the
 
largest
 
and
 
the
 
fastest-growing
 
regions
 
– respectively,
 
the
 
US
 
and
 
Asia
 
Pacific –
 
and
clearly defined regional priorities: scaling our franchise in
 
the US; capturing growth in Asia Pacific; increasing profitability
in EMEA;
 
and increasing
 
market share
 
in Switzerland,
 
our home
 
market. Our
 
focus remains
 
on
 
our core
 
client base
 
of
ultra high and high
 
net worth individuals through
 
trusted relationships with our advisors
 
,
 
while expanding our
 
coverage
of entrepreneur
 
s, women
 
and the next
 
generation of
 
wealthy individuals.
 
We are also
 
strengthening our
 
capabilities to
serve our clients with the most sophisticated
 
needs through our
 
Global Family & Institutional Wealth (GFIW) offering
 
.
As our clients’
 
needs are changing, we
 
are adapting our
 
capabilities and coverage.
 
We are therefore
 
launching and scaling
digitally customizable
 
services, enhancing
 
our personally
 
advised wealth
 
management offering
 
with digital support
 
and
expanding our custom offering
 
s
 
for global family and institutional wealth to cater
 
for the different needs
 
of our clients.
 
Organizational changes
 
On 3 October 2022, Iqbal Khan became sole
 
President Global Wealth Management. Since joining UBS in 2019, Mr. Khan
had
 
served as Co-President Global Wealth
 
Management with Tom
 
Naratil, who stepped
 
down after nearly four decades
with UBS.
In April 2022, to better cater to our clients with institutional-like needs that require
 
a more bespoke offering, we created
GFIW, a
 
cross-divisional
 
offering that
 
leverages capabilities
 
from
 
the Investment
 
Bank
 
and
 
client coverage
 
from Global
Wealth Management.
In August
 
2022, UBS
 
and Wealthfront mutually
 
agreed to
 
terminate the
 
merger agreement
 
first announced
 
in January
2022, under which Wealthfront was
 
to be acquired by UBS Americas Inc. The two organizations will continue to
 
explore
ways
 
to
 
work
 
together,
 
and,
 
as
 
part
 
of
 
that
 
process,
 
UBS
 
purchased
 
a
 
USD 69.7m
 
note
 
convertible
 
into
Wealthfront shares.
In the second half of 2022, we completed the sales of our wholly owned subsidiary UBS Swiss Financial Advisers AG, our
domestic wealth management business
 
in Spain and our US alternative investments
 
administration business.
 
How we do business
Our distinctive
 
approach
 
to wealth
 
management is
 
designed to
 
help our
 
clients pursue
 
what matters
 
most to
 
them
 
by
offering advice,
 
expertise and
 
solutions
 
and delivering
 
on
 
our client
 
promise to
 
be personalized,
 
relevant, on
 
-time and
seamless.
Our Chief Investment
 
Office (the CIO)
 
produces
 
the
UBS House
 
View
, identifying investment
 
opportunities designed
 
to
protect and
 
increase our
 
clients’ wealth
 
over the
 
longer term,
 
directing the
 
investment advice
 
for and
 
management of
more
 
than
 
USD
 
1trn
 
in
 
f
ee
-
generating
 
assets
 
globally.
 
Close
 
integration
between
 
idea
 
generation
 
and
 
product
development enables
 
us to
 
deliver to
 
clients CIO-aligned
 
investment solutions
 
,
 
such as
 
the investment
 
modules in
UBS
 
Manage
 
Advanced
 
[My
 
Way]
.
 
In
 
Asia
 
Pacific
 
and
 
Switzerland,
 
the
Direct
 
Investment
 
Insights
 
function
 
on
 
our
 
online
banking platform enables clients to trade
 
directly based on CIO insights
 
via their smartphones and other
 
digital devices.
›
 
Refer to “Clients”
 
in the “How we
 
create value for
 
our stakeholders”
 
section and to
 
“Our focus on
 
technology” in the “Our
strategy” section
 
of this report for
 
more information about
 
innovation
 
and digitalization
Regional
 
Chief
 
Investment
 
Officers
 
leverage
 
direct
 
client
 
feedback
 
and
 
insights
 
from
 
Client
 
Analytics
 
to
 
deepen
 
our
understanding
 
of clients’ needs.
 
Our product
 
specialists deliver
 
investment solutions,
 
including our
 
flagship investment
mandates, as well as innovative long
 
-term themes and sustainable investment offerings.
In addition
 
to our investment p
 
roducts, we offer
 
extensive mortgage, securities-based
 
and structured lending
 
expertise.
We
 
provide
 
clients
 
with
 
advice
 
on
 
wealth
 
planning,
 
sustainability
 
and
 
impact
 
investing,
 
and
 
corporate
 
and
 
banking
services,
 
while
 
specialist
 
teams
 
also
 
advise
 
on
 
art
 
and
 
collecting,
 
family
 
strategy
 
and
 
governance,
 
philanthropy,
 
next
generation, and wealth transition.
 
›
 
Refer to our Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
, for more information
 
about
sustainability matters
 
 
 
dev_UBS_AR_2022p48i0.gif
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Our
 
businesses
 
20
 
 
 
Our private
 
markets business
 
gives
 
clients access
 
to investments
 
in private
 
equity
 
funds,
 
hedge fund
 
s
 
and
 
real estate.
Furthermore, we have increased our offering of institutional-grade products, such as
 
our
Co-Investment STRIPE
 
(strategic
investments in
 
private equity)
 
opportunities,
 
a feeder
 
structure
 
to enable
 
clients to
 
invest in
 
closed-ended
 
institutional
private market funds. We have made it
 
easier for private clients to access investment products and services suited to their
individual preferences
 
,
 
e.g., by
 
expanding access
 
to our
Advice SI
 
and separately managed
 
accounts
 
(SMA) solutions
 
in
the US,
 
and new targeted
 
sustainability focus and impact
 
offerings. Our Global Wealth Management clients
 
have invested
more
 
than
 
USD
 
20bn
 
in
 
discretionary
 
mandates
 
aligned
 
to
 
our
sustainable
 
investing
 
strategic
a
sset
a
llocation.
Additionally,
 
we continue to broaden
 
our offering across asset
 
classes and themes, collaborating
 
with external partners,
such as
 
Robeco Asset
 
Management, Ambienta,
 
Rockefeller Asset
 
Management, Rethink
 
Impact and
 
Bridge Investment
Group, to provide
 
clients with access to differentiated
 
sustainable-
 
and impact-investing
 
opportunities.
We are
 
investing in
 
our operating
 
platforms and
 
tools to
 
better serve
 
our clients’
 
needs,
 
improve their
 
experience and
enhance overall advisor
 
productivity. As
 
of 31 December 2022,
 
more than 80%
 
of invested assets outside
 
the Americas
were booked
 
on
 
our
Wealth Management
 
Platform
.
 
In the
 
US,
 
we are
 
enhancing
 
the
 
Wealth Management
 
Americas
workstation
 
for
 
advisors
,
 
by
 
delivering
 
new
 
functionalit
ies
,
 
as
 
well
 
as
 
driving
 
simplification
 
and
 
improving
 
our
banking capabilities.
›
 
Refer to “Clients” in
 
the “How we create
 
value for our
 
stakeholders” section
 
and to “Our focus
 
on technology”
 
in the “Our
strategy” section
 
of this report for
 
more information about
 
innovation
 
and digitalization
Our digital transformation aims to make us
 
faster and more responsive
 
and our services more convenient for our
 
clients.
Our
 
clients
 
benefit
 
from
 
a
 
more
 
seamless
 
service
 
across
 
platforms
 
and
 
devices,
 
and
 
our
 
advisors
 
and
 
the
 
teams
 
that
support
 
them
 
are
 
aspiring
 
to
 
deliver
 
best-in-class
 
content
 
and
 
solutions
 
with
 
increasing
 
speed,
 
relevance
 
and
personalization.
 
We are
 
developing
 
new
 
service models
 
through
 
which
 
we seek
 
to serve
 
our clients
 
according
 
to their
individual needs and
 
preferences, based on
 
scalable digital platforms, and
 
underpinned by
 
our client promise: providing
service that is personalized, relevant, on
 
-time and seamless.
For
 
clients
 
with
 
complex
 
financial
 
needs,
 
our
 
GFIW
 
offering
 
addresses
 
the
 
execution,
 
investment,
 
risk
 
management,
financing and banking needs of family
 
offices and their corporate entities, as
 
well as entrepreneurs. In our core personally
advised
 
service
 
model,
 
we
 
focus
 
on
 
expanding
 
our
 
coverage
 
of
 
entrepreneurs,
 
women
 
and
 
next-generation
 
clients,
alternative investments as a differentiated source of returns, and increasing digital convenience for all our clients. We are
making continuous
 
improvements to our
 
digital platforms,
 
and have
 
rolled out
 
innovative new solutions
 
,
 
such as
Circle
One
 
(in 2022), a global ecosystem that connects clients to experts, thought leaders and actionable investment ideas, and
UBS My Way
 
(in 2021),
 
a next-generation portfolio management solution
 
that enables clients to
 
tailor their investments
to their individual
 
preferences. We
 
have introduced
 
the
UBS My
 
Way
 
solution in
 
Germany,
 
Italy and Japan,
 
and plan
 
to
also
 
offer
 
it in
 
other
 
markets.
 
We
 
have
 
launched
WE.UBS
,
 
the
 
first
 
digital-only
 
offering
 
launched
 
by
 
a
 
global
 
wealth
manager in China, and
 
we are planning the launch of further regional
 
solutions.
 
 
 
 
dev_UBS_AR_2022p49i0.jpg
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Our
 
businesses
 
21
 
We
 
closely
 
collaborate
 
across
 
business
 
divisions
 
to
 
deliver UBS’s
 
best
 
capabilities
 
to
 
our
 
clients. Joint
 
efforts
 
with
 
the
Investment Bank, Asset Management
 
and selected external partners enable us
 
to offer clients broad access to financing,
global capital markets
 
and bespoke
 
portfolio solutions.
 
For example, we
 
launched an
 
SMA initiative in 2020
 
with Asset
Management in the US and continued to expand our SMA offering throughout 2022. The initiative generated USD 21bn
in net new money inflows in
 
2022, bringing total invested assets from this initiative
 
to USD 125bn.
›
 
Refer to “Delivering
 
one ecosystem”
 
in this section for
 
examples of
 
the joint efforts
 
of the business
 
divisions
Our operations and our competitors
We operate a global
 
business tailored
 
to both regional and
 
local clients, combining
 
scale with an ability
 
to provide
 
local
offerings
 
to
 
best
 
serve
 
our
 
clients’ needs.
 
We
 
are
 
regularly
 
recognized
 
as
 
a
 
leading
 
wealth
 
manager
 
by
 
independent
industry awards on a global,
 
regional and country level.
The US
 
is our largest market,
 
accounting
 
for around half
 
of our invested
 
assets, and we
 
are recognized
 
as the industry-
leading firm
 
in terms
 
of overall
 
client satisfaction.
2
 
In Asia
 
Pacific,
 
we are
 
by far
 
the largest
 
wealth manager
3
 
and have
received numerous
 
independent
 
industry awards
 
for several years
 
in a row,
4
 
recognizing our
 
long-term commitment
 
to
the region. In our home market of Switzerland, we
 
are the leading wealth manager
5
 
and continue to extend our leading
market position
 
with above-market
 
growth and
 
investments into
 
digitalizing our
 
core business.
 
In Western
 
Europe,
 
we
have a
 
strong
 
footprint, which
 
we further
 
optimized with
 
the sales
 
of our
 
domestic
 
businesses
 
in Spain
 
(in 2022)
 
and
Austria (in
 
2021),
 
and have
 
been recognized
 
as the best
 
bank for
 
wealth management
 
several years
 
in a
 
row.
6
 
In Latin
America,
 
we
 
continue
 
to
 
expand
 
our strategic
 
partnership
 
with
 
Banco
 
do
 
Brasil,
 
helping
 
us remain
 
the
 
best bank
 
for
wealth management
 
in the region.
7
 
We were able
 
to deliver a strong
 
performance in
 
Central & Eastern
 
Europe, Greece
and Israel despite substantial geopolitical challenges in parts
 
of the region, supported
 
by our GFIW offering. In
 
the Middle
East
 
and
 
Africa,
 
we
 
are
 
building
 
out
 
our
 
offering
 
with
 
further
 
investment
 
in
 
local
 
offices,
 
such
 
as
 
Dubai
 
and
 
Qatar,
emphasizing our commitment to the
 
region and building on
 
our local strength.
8
 
Our
 
competitors
 
fall into
 
two
 
categories:
 
competitors
 
with
 
a
 
strong
 
position
 
in the
 
Americas but
 
more
 
limited
 
global
footprints, such as Morgan
 
Stanley and JPMorgan
 
Chase; and competitors
 
with similar international
 
footprints but with
a smaller presence than UBS in the
 
US, such as Credit Suisse and Julius Baer. We
 
have strong positions in the largest and
the fastest-growing
 
regions
 
(respectively, the
 
US
 
and
 
Asia Pacific).
 
The size
 
and
 
diversification
 
of our
 
global
 
franchise,
bespoke
 
cross-divisional
 
solutions,
 
and
 
premium
 
brand
 
and
 
reputation
 
set
 
us
 
apart
 
and
 
would
 
be
 
difficult
 
for
 
our
competitors to replicate.
 
 
 
1
 
Statements of market position for
 
Global Wealth Management
 
are based on UBS’s
 
internal estimates and publicly
 
available information
 
about competitors’ invested
 
assets.
2
 
Highest in client satisfaction with full
 
-service brokerage
 
firms in the J.D.
 
Power 2022 survey.
3
 
Private banking assets under management
 
excluding China onshore in
 
2021, according to Asian
 
Private Banker.
4
Awards won in two or more consecutive years include
 
the Private Banker International
 
Global Wealth Awards,
 
PWM / The Banker Private
 
Banking Awards,
 
Euromoney Private Banking Awards,
 
Asiamoney Asia Private
Banking Awards, Wealth
 
BriefingAsia
 
Awards and Asian
 
Private Banker Awards.
5
Recognized as “Best Private Bank Switzerland”
 
by Euromoney Private
 
Banking Awards
 
in 2022.
6
 
Recognized as “Western Europe’s
 
Best Bank for Wealth
 
Management” by Euromoney
 
Awards for Excellence
 
in 2020, 2021 and 2022.
7
Recognized as “Latin America’s
 
Best Bank for Wealth
 
Management” by Euromoney
 
Awards for Excellence
 
in 2022.
8
Recognized as “Middle East’s
 
Best Bank for Wealth
 
Management” by Euromoney
 
Awards for Excellence
 
in 2020, 2021 and 2022.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Our
 
businesses
 
22
 
Personal & Corporate Banking
As the #1 Swiss
 
universal bank, we provide a comprehensive
 
range of financial
 
products and services to private,
 
corporate
and institutional clients. Personal &
 
Corporate Banking is the
 
core of our
 
universal bank in Switzerland.
 
As a market
 
leader
across all our
 
business areas,
 
we strive to grow
 
at a rate
 
faster than
 
the Swiss market.
 
We aim
 
to be
 
digital at the
 
core
by
 
enabling
 
our
 
clients
 
to
 
satisfy
 
most
 
of
 
their
 
banking
 
needs
 
via
 
our
 
apps,
 
while
 
offering
 
a
 
user
 
experience
 
that
 
is
personalized, relevant, on
 
-time and seamless.
How we do business
Our personal
 
banking clients
 
have access
 
to a
 
comprehensive,
 
life-cycle-based offering.
 
This includes
 
a broad
 
range of
basic banking products, from payments to
 
deposits, cards and
 
convenient online and mobile banking,
 
as well as lending
(predominantly mortgages), investments and retirement planning services. In 2022,
 
we were once again
 
named the “Best
Bank in Switzerland” by
 
Euromoney.
 
Our offering is complemented by our
UBS KeyClub
 
reward program, which provides
clients in
 
Switzerland with
 
exclusive and
 
attractive offers,
 
some of which
 
are offered
 
in collaboration
 
with our
 
external
partners. We
 
also work
 
closely with
 
Global
 
Wealth
 
Management
 
to provide
 
our
 
clients with
 
access to
 
leading
 
wealth
management services.
Our corporate and institutional clients benefit from our
 
financing and investment solutions,
 
in particular access to equity
and
 
debt capital
 
markets, syndicated
 
and
 
structured
 
credit, private
 
placements,
 
leasing,
 
and
 
traditional
 
financing.
 
We
offer transaction
 
banking
 
solutions
 
for payment
 
and
 
cash management
 
services, trade
 
and
 
export finance,
 
and
 
global
custody solutions for institutional clients.
We work
 
closely with
 
the Investment
 
Bank
 
to offer
 
capital market and
 
foreign
 
exchange products,
 
hedging strategies,
and
 
trading capabilities,
 
as well
 
as corporate
 
finance advice.
 
In cooperation
 
with Asset
 
Management,
 
we also
 
provide
fund and portfolio management solutions.
›
 
Refer to “Delivering
 
one ecosystem”
 
in this section
 
for examples
 
of the joint efforts
 
of the business
 
divisions
 
While continuing to focus
 
on the needs of
 
our clients, we need
 
to better connect business
 
and technology and
 
develop
new solutions in an agile way through fully empowered
 
teams. The agile transformation is essential for every part of our
organization.
 
In
 
2022,
 
we
 
accelerated
Agile@UBS
,
 
a
 
unified
 
approach
 
to
 
agile ways
 
of
 
working,
 
which now
 
includes
approximately 5,000
 
colleagues based in Switzerland.
 
›
 
Refer to “Clients” and
 
“Employees”
 
in the “How we
 
create value for
 
our stakeholders”
 
section and to
 
“Our focus on technology”
in the “Our strategy”
 
section of this
 
report for more information
 
about innovation
 
and digitalization
In 2022, we continued to support our clients
 
in the transition to a low-carbon economy. For example, we introduced two
new products:
UBS Mortgage Energy
 
for our private clients and
UBS Loan Energy
 
for income-producing real estate, both
providing preferential conditions for energy-efficient buildings. Furthermore, we entered into
 
two partnerships with Swiss
start-ups to remove greenhouse
 
gas emissions from the atmosphere.
›
 
Refer to our Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
, for more information
 
about
sustainability-related
 
topics
We
 
collaborate
 
with
 
other
 
companies
 
to
 
better
 
satisfy
 
our
 
clients’
 
diverse
 
needs.
 
For
 
example,
 
in
 
2022,
 
we
 
further
expanded our strategic partnership with Baloise.
 
We both increased our stakes in the
 
digital homeowner platform
Houzy
,
which offers
 
prospective and
 
existing homeowners
 
advice about
 
financing,
 
insurance and
 
other property
 
planning
 
and
management matters, and
Brixel
,
which provides
 
our clients real estate sales advice and
 
services.
Our operations and our competitors
We operate primarily in
 
our Swiss home market.
 
With our Personal Banking
 
and Corporate
 
& Institutional Clients business
units, we
 
are organized into
 
10 regions,
 
covering distinct Swiss
 
economic areas.
 
We operate a
 
multi-channel approach,
and we are constantly developing
 
our digital and remote channels.
In
 
Personal
 
Banking,
 
our
 
main
 
competitors
 
are
 
Raiffeisen,
 
the
 
cantonal
 
banks,
 
Credit
 
Suisse,
 
PostFinance,
 
and
 
other
regional and local Swiss banks;
 
we also face competition
 
from international neobanks
 
and other national digital
 
market
participants.
 
Areas
 
of competition
 
are basic
 
banking services,
 
mortgages,
 
and
 
foreign exchange,
 
as well
 
as investment
mandates and funds.
In
 
Corporate
 
&
 
Institutional Clients,
 
the
 
cantonal
 
banks,
 
Credit
 
Suisse
 
and globally
 
active foreign
 
banks
 
are
 
our main
competitors.
 
We
 
compete
 
in
 
basic
 
banking
 
services,
 
cash
 
management,
 
trade
 
and
 
export
 
finance,
 
asset
 
servicing,
investment advice for institutional clients,
 
corporate finance and lending,
 
and cash and securities transactions for banks.
We
 
also
 
support
 
the
 
international
 
business
 
activities
 
of
 
our
 
Swiss
 
corporate
 
clients
 
through
 
local
 
hubs
 
in
 
New
 
York,
Frankfurt,
 
Singapore
 
and
 
the
 
Hong
 
Kong
 
SAR.
 
No
 
other
 
Swiss
 
bank
 
offers
 
its
 
corporate
 
clients
 
local
 
banking
capabilities abroad.
 
dev_UBS_AR_2022p51i0.gif
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Our
 
businesses
 
23
 
 
 
Asset Management
 
Asset Management
 
is a global,
 
large-scale and
 
diversified asset
 
manager,
 
with USD
 
1.1trn in
 
invested assets.
 
We offer
investment capabilities
 
and styles across
 
all major traditional
 
and alternative asset classes,
 
as well as advisory
 
support to
institutions, wholesale intermediaries
 
and our Global Wealth Management
 
clients.
Our strategy
 
is focused
 
on
 
capitalizing on
 
the areas
 
where we
 
have a
 
leading position
 
and differentiated
 
capabilities
 
–
including
 
sustainability, alternatives,
 
indexed
 
customization,
 
and
 
key markets
 
in Asia
 
Pacific
 
– in
 
order
 
to drive
 
further
profitable growth.
Organizational changes
In April 2022, we completed
 
the sale of
 
our 49% shareholding in our Japanese
 
real estate joint
 
venture, Mitsubishi Corp.-
UBS Realty Inc., to KKR & Co
 
.
How we do business
We offer clients
 
a wide
 
range of
 
investment products
 
and services
 
in different
 
asset classes,
 
in the form
 
of segregated,
pooled or advisory
 
mandates, as
 
well as registered investment
 
funds in various
 
jurisdictions. Our traditional and
 
alternative
capabilities include equities, fixed income, hedge funds (single-
 
and multi-manager), real estate and private markets, and
indexed
 
and
 
alternative
 
beta
 
strategies,
 
including
 
exchange-traded
 
funds
 
(ETFs),
 
as
 
well
 
as
 
sustainable-
 
and
 
impact-
investing products and
 
solutions.
Our
 
Investment
 
Solutions
 
business
 
draws
 
on
 
the
 
breadth
 
of
 
our
 
capabilities
 
to
 
offer:
 
asset
 
allocation
 
and
 
currency
investment
 
strategies
 
across
 
the
 
risk–return
 
spectrum;
 
customized
 
multi-asset
 
solutions;
 
and
 
advisory
 
and
fiduciary services.
Sustainable and impact investing remains
 
a key area, as clients increasingly seek solutions
 
that combine their investment
goals
 
with
 
sustainability objectives.
 
We
 
are
 
continuing
 
the
 
expansion
 
of our
 
capabilities through:
 
product
 
and
 
service
innovation;
 
dedicated
 
research;
 
integrating
 
environmental,
 
social
 
and
 
governance
 
risk
 
factors
 
into
 
our
 
investment
processes by leveraging our proprietary analytics;
 
and active corporate engagement.
During 2022,
 
our Real Estate
 
& Private Markets business
 
launched a number
 
of new innovative strategies,
 
including UK
Life Sciences and
 
Cold Storage,
 
and again
 
achieved strong
 
results in
 
the latest GRESB
 
Assessments,
1
 
with 100%
 
of our
submitted
 
strategies
 
(representing
 
96%
 
of
 
Real
 
Estate &
 
Private
 
Markets’
 
direct
 
pooled
 
real
 
estate and
 
infrastructure
strategies) achieving four-
 
or five-star ratings.
We also continue to develop
 
our award-winning
2
 
indexed businesses globally, including
 
ETFs in Europe, Switzerland and
Asia. To meet increasing client demand,
 
we have focused on sustainable
 
investing across our product range
 
and provide
customized
 
solutions.
 
Aligned
 
with our
 
purpose and
 
strength
 
in building
 
partnerships,
 
in 2022,
 
we launched
 
the UBS
Global Equity
 
Climate
 
Transition
 
Fund,
 
in partnership
 
with Aon,
 
and
 
the UBS
 
Life
 
Global Equity
 
Sustainable
 
Transition
Fund, in collaboration with the Essex Pension Fund and Hymans Robertson. These funds provide investors with the ability
to mitigate climate-related investment risks
 
while also aiming to make
 
a positive social
 
impact aligned with specific
 
United
Nations Sustainable Development Goals.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Our
 
businesses
 
24
 
Stewardship
 
is
 
a
 
fundamental
 
element
 
of
 
our
 
sustainability strategy,
 
and
 
we
 
are
 
firmly committed
 
to
 
engaging
 
with
companies to support them on
 
their transition journey. During 2022,
 
we extended our Climate Engagement Program
 
to
include more industry sectors and built out our
 
research to further extend the program to
 
include natural capital. We also
launched our
 
new Social Engagement
 
Program, with a
 
focus on human and
 
labor rights, diversity, equity
 
and inclusion,
and health, to enable
 
us to provide clients with products that meet their
 
criteria in these areas as
 
well.
As a
 
founding member
 
of the Net
 
Zero Asset
 
Managers
3
 
initiative,
 
we are
 
working
 
on the
 
foundational pillars
 
required
to deliver on our net-zero interim
 
target, committing to align 20%
 
of total assets under management to achieve
 
a 50%
carbon emissions
 
reduction by 2030. In parallel,
 
we are continuing to work with our clients,
 
standard setters and industry
bodies
 
to
 
help
 
develop
 
the
 
new
 
methodologies,
 
tools
 
and
 
data
 
needed
 
by
 
investors
 
to
 
mitigate
 
risks
 
and
capture opportunities.
›
 
Refer to our Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
, for more information
 
about
sustainability matters
To support
 
our growth,
 
we are
 
focused on
 
disciplined execution
 
of our
 
operational
 
excellence initiatives.
 
This includes
further
 
automation,
 
simplification,
 
process
 
optimization
 
and
 
offshoring
or
 
nearshoring
 
of
 
selected
 
activities,
complemented by continued
 
enhancements to our platform and development
 
of our analytics and data capabilities
 
.
We have also continued our joint efforts with the other business divisions, enabling our teams to draw on the
 
best ideas,
solutions and
 
capabilities from across
 
the firm in
 
order to
 
deliver high
 
-quality investment
 
performance and
 
experiences
for our
 
clients. For
 
example, we
 
launched a
 
separately managed
 
accounts (SMA)
 
initiative in
 
2020
 
with Global
 
Wealth
Management in the US. We continued to expand our SMA offering throughout 2022, including the launch of new index
SMA portfolios offering personalized
 
tax management, and also a sustainable
 
investing overlay enabling clients to select
from six
 
major themes,
 
including
 
climate change,
 
pollution
 
and governance.
 
The initiative
 
generated
 
USD 21bn
 
in net
new money inflows in 2022,
 
bringing total invested assets from this initiative
 
to USD 125bn.
›
 
Refer to “Delivering
 
one ecosystem”
 
in this section for
 
examples of
 
the joint efforts
 
of the business
 
divisions
Our operations and our competitors
Our business division is organized
 
into five areas: Client Coverage;
 
Investments; Real Estate & Private
 
Markets; Products;
and
 
the COO
 
area. We
 
cover the
 
main asset
 
management markets
 
globally,
 
and have
 
a local
 
presence
 
in 23
 
locations
across four
 
regions:
 
the Americas
 
;
 
Asia Pacific
 
;
 
EMEA;
 
and
 
Switzerland.
 
We have
 
nine
 
main hubs:
 
Chicago;
 
the Hong
Kong SAR;
 
London;
 
New York
 
;
 
Shanghai;
 
Singapore;
 
Sydney; Tokyo
 
;
 
and Zurich.
Geographically, we are building
 
on our extensive and long-standing
 
presence in the Asia Pacific region,
 
including China,
where we continue to invest in
 
our products and presence,
 
both on- and off-shore.
In
 
the
 
rapidly
 
evolving
 
and
 
attractive
 
wholesale
 
segment,
 
we
 
aim
 
to
 
further
 
expand
 
our
 
market
 
share
 
through
 
a
combination of
 
measures: a
 
continued increase
 
in the share of
 
clients’ business; expansion
 
of our strategic partnerships
with distributors; the building-out of our client service and product shelf offerings; and the
 
launch of new white-labeling
and portfolio implementation capabilities
 
.
›
 
Refer to “Clients” in
 
the “How we create
 
value for our
 
stakeholders” section
 
and to “Our focus
 
on technology”
 
in the “Our
strategy” section
 
of this report for
 
more information about
 
innovation
 
and digitalization
Our main competitors
 
are global firms
 
with wide-ranging capabilities and
 
distribution channels, such as
 
AllianceBernstein,
Allianz
 
Asset
 
Management,
 
Amundi,
 
BlackRock,
 
Credit
 
Suisse Asset
 
Management,
 
DWS,
 
Franklin
 
Templeton,
 
Invesco,
JPMorgan
 
Asset
 
Management,
 
Morgan
 
Stanley
 
Investment
 
Management,
 
Schroders,
 
SSGA
 
Funds
 
Management
 
and
T. Rowe Price, as well as firms with a specific
 
market or asset-class focus.
 
 
 
 
dev_UBS_AR_2022p53i0.jpg
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Our
 
businesses
 
25
 
 
 
1
 
GRESB is an independent organization
 
providing validated ESG
 
performance data and
 
peer benchmarks.
2
 
Passive Manager of the Year
 
2022,
 
Insurance Asset Management
 
Awards;
 
ETF Provider of the Year,
 
European Pensions Awards;
 
UBS MSCI UK IMI SRI ETF,
 
Winner: Ethical / Sustainable
 
– Passive, AJ Bell
 
FIT Awards;
ETP Award 2022, Best Provider
 
of Sustainable ETFs;
 
and ranked fifth
 
largest ETF provider in Europe
 
as of December 2022
 
(source:
ETFBook.com
).
3
 
netzeroassetmanagers.org
 
 
Investment Bank
 
The
 
Investment Bank
 
provides
 
services to
 
institutional,
 
corporate
 
and
 
wealth
 
management
 
clients, helping
 
them
 
raise
capital, invest
 
and
 
manage
 
risks, while
 
targeting
 
attractive
 
and
 
sustainable
 
risk-adjusted
 
returns
 
for shareholders.
 
Our
traditional strengths are in equities, foreign
 
exchange, research, advisory services and capital markets, complemented
 
by
a focused rates and credit platform. We use our data-driven research
 
and technology capabilities to help clients adapt to
evolving market structures and
 
changes in regulatory, technological,
 
economic and competitive landscapes.
Aiming to deliver market-leading solutions by using our
 
intellectual capital and electronic platforms,
 
we work closely with
Global Wealth Management,
 
Personal &
 
Corporate Banking and Asset
 
Management to bring
 
the best
 
of UBS’s capabilities
to our clients. We do so
 
with a disciplined approach
 
to balance sheet deployment and
 
costs.
Our priority is
 
providing high-quality execution and seamless
 
client service, through an
 
integrated, solutions-led approach,
with
 
disciplined
 
growth
 
in
 
the
 
capital-light
 
advisory
 
and
 
execution
 
businesses,
 
while
 
accelerating
 
our
 
digital
transformation. In Global Banking, we position ourselves as trusted advisors via our client coverage and ability to provide
access to the wider suite of UBS
 
’s capabilities.
Organizational changes
In
 
January
 
2022,
 
Global
 
Research
 
and
 
the
 
Strategic
 
Insights
 
teams,
 
formerly
 
part
 
of
 
Evidence
 
Lab
 
Innovations,
 
were
integrated into
 
the Investment
 
Bank,
 
as Investment
 
Bank Research.
 
With this new
 
setup,
 
we intend
 
to better
 
align our
research
 
coverage
 
with
 
the
 
needs
 
of
 
our
 
clients,
 
while
 
continuing
 
to
 
provide
 
research
 
and
 
analytical
 
services
 
across
the firm.
In April
 
2022, we created
 
Global Family
 
& Institutional Wealth
 
(GFIW), a cross-divisional offering that
 
leverages capabilities
from the Investment
 
Bank and
 
client coverage from
 
Global Wealth
 
Management to
 
address the
 
execution, investment,
risk management, financing and
 
banking needs of family offices and
 
their corporate entities, as well as entrepreneurs
 
.
How we do business
Our business division consists of two areas: Global
 
Banking and Global Markets, which are supported
 
by Investment Bank
Research. Our global coverage model utilizes our international industry expertise and product capabilities to meet clients’
emerging needs.
Our Global Banking business advises clients on strategic
 
business opportunities, such as mergers, acquisitions and related
strategic matters, and helps
 
them raise capital, both on public and
 
private markets, to fund
 
their activities.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Our
 
businesses
 
26
 
Our
 
Global
 
Markets
 
business
 
enables
 
clients
 
to
 
buy,
 
sell
 
and
 
finance
 
securities
 
on
 
capital
 
markets
 
worldwide,
 
and
 
to
manage their risks and liquidity.
 
We distribute, trade,
 
finance and clear cash equit
 
ies and equity-linked products,
 
as well
as
 
structuring,
 
originating
 
and
 
distributing
 
new
 
equity
 
and
 
equity-linked
 
issues.
 
From
 
origination
 
and
 
distribution
 
to
managing
 
risk and
 
providing
 
liquidity in
 
foreign
 
exchange,
 
rates, credit
 
and
 
precious metals,
 
we help
 
clients to
 
realize
their financial
 
goals. We
 
provide
 
flexible, innovative
 
and bespoke
 
access to
 
solutions,
 
from market
 
and insight
 
tools to
trading strategies and execution.
Our Investment
 
Bank
 
Research
 
business
 
continues
 
to publish
 
research based
 
on
 
primary data
 
to
 
concentrate
 
on
 
data-
driven outcomes and offers clients differentiated content about
 
major financial markets and securities around
 
the globe,
with analysts based in 22 countries and with
 
coverage of more than 3,000 stocks in 49 different countries. The Strategic
Insights team provides timely and relevant information and insights to
 
help clients quickly make decisions regarding their
most important questions.
We seek to develop new
 
products and solutions
 
consistent with our capital
 
-efficient business
 
model, typically related to
new technologies or changing
 
market standards.
›
 
Refer to “Clients” in
 
the “How we create
 
value for our
 
stakeholders” section
 
and to “Our focus
 
on technology”
 
in the “Our
strategy” section
 
of this report for
 
more information about
 
innovation
 
and digitalization
The
 
Investment Bank
 
is
 
focused
 
on
 
meeting
 
clients’
 
needs,
 
including
 
those
 
with respect
 
to
 
environmental,
 
social
 
and
governance
 
(ESG)
 
considerations
 
and
 
sustainable
 
finance,
 
helping
 
to
 
reshape
 
business
 
models
 
and
 
investment
opportunities and to
 
develop sustainable finance products and
 
solutions.
 
In Global
 
Markets, we
 
develop
 
products and
 
solutions designed
 
to meet
 
clients’ specific
 
and
 
increasingly detailed
 
ESG
objectives, such as thematic portfolio and investment
 
solutions. We have also developed products related to
 
carbon, such
as emissions
 
futures, and
 
we joined
Carbonplace
as a
 
founding
 
member.
Carbonplace
 
is a platform
 
that seeks
 
to build
infrastructure to scale voluntary carbon
 
markets, with the aim of enabling firms such as UBS
 
to offer clients the ability to
buy, sell, hold and
 
retire voluntary carbon credits.
Following the formation of the Global ESG Advisory team within Global Banking in 2021, in 2022, we provided strategic
advisory and
 
capital-raising
 
services
 
by
 
specifically
 
recognizing
 
the
 
structural
 
shift
 
in
 
investor
 
preferences
 
toward
 
ESG
investment opportunities. To do so, we
 
built our capabilities
 
to assess a firm’s
 
sustainability profile and to link
 
such profiles
to ESG investor
 
demand. During
 
2022,
 
we facilitated USD
 
48bn
 
of green,
 
social, sustainability and
 
sustainability-linked
(GSSS) bonds
 
financing through
 
77
 
bond deals for
 
our clients, including
 
corporate clients, financial firms
 
and sovereign
issuers. UBS
 
has a
 
market-leading share
 
of the Swiss
 
franc GSSS bond
 
market (Bloomberg,
 
2022), supporting
 
domestic
issuers and bringing
 
international names to the Swiss
 
market.
Our
 
independent
 
ESG
 
research
 
team
 
collaborates
 
with
 
UBS
 
sector
 
analysts
 
and
UBS
 
Evidence
 
Lab
 
primary
 
research
experts. The
 
ESG research
 
team works
 
to identify
 
touchpoints
 
between
 
markets, society
 
and
 
the environment,
 
and
 
to
respond to ESG issues as they move onto investors’ agenda. By
 
December 2022, the ESG team had published more than
90
ESG Sector Radar
 
reports, which assessed the
 
impact of ESG factors at the sector
 
level (up from about 30
 
in 2021).
In 2022,
 
we launch
 
ed our
ESG Company
 
Radar
 
research reports
 
(more than
 
30
 
published
 
by December
 
2022),
 
which
assess the
 
impact of
 
ESG
 
factors at
 
company level
 
,
 
and
 
we have
 
seen a
 
very positive
 
client response
 
to those
 
reports.
Other
 
types
 
of
 
ESG
 
content
 
include
 
thematic
 
and
 
cross-sectoral
 
collaborations,
ESG
 
Keys
 
(which
 
covers
 
sustainable
investing topics),
 
and an increasing
 
number of regional
 
perspectives from our
 
expanded ESG
 
team, which works
 
out of
our offices in London,
 
New York,
 
the Hong Kong SAR, Tokyo
 
and Sydney.
As part of our efforts
 
to enhance governance and
 
oversight, the Sustainable
 
Investment Review Group
 
was launched in
June 2022
 
with the
 
responsibility for
 
reviewing ESG
 
products within
 
Global Markets.
 
The Investment
 
Bank
 
Sustainable
Finance Guidelines
 
were established
 
in 2022
 
to set out
 
minimum criteria
 
for ESG
 
products, which
 
are to be
 
applied to
new products.
 
In addition,
 
as part of
 
the Group’s
 
net-zero commitments, the
 
Investment Bank
 
has developed
 
emission
targets for 2030 for its lending
 
business.
›
 
Refer to the “Environment”
 
section of our Sustainability
 
Report 2022,
 
available under
 
“Annual reporting”
 
at
ubs.com/investors
,
for more information
 
about the Investment
 
Bank’s
 
targets for its lending
 
business
Our
 
di
gital
 
strategy
 
harnesses
 
technology
 
to
 
provide
 
access
 
to
 
a
 
wide
 
range
 
of
 
sources
 
of
 
global
 
liquidity
 
and
differentiated content.
 
The Investment
 
Bank strives to
 
be the
 
digital investment bank
 
of the future,
 
with innovation-led
businesses driving efficiencies and
 
solutions. We aim to develop new
 
products and solutions
 
consistent with our capital-
efficient business model, which
 
are most often related to new technologies
 
or changing market standards.
In
 
2021,
 
we
 
announced
 
the
 
creation
 
of
 
a
 
single
Digital
 
Platforms
 
business
 
area
 
within
 
the
 
Investment Bank,
 
utilizing
digital competencies to benefit all products and maximizing
 
the return on our technology spend in close partnership with
our
 
Chief Digital
 
and Information
 
Office.
Digital Platforms
 
combines product
 
expertise with
 
deep technical
 
know-how,
aiming
 
to
 
reduce
 
the
 
number
 
of
 
systems
 
and
 
increase
 
automation,
 
maximizing
 
client
 
impact,
 
revenue
 
and
 
digital
adoption.
Digital Platforms
 
was an
 
early adopter
 
of
Agile@UBS
, an
 
evolution of
 
the historically
 
close collaboration
 
with
our Chief
 
Digital and
 
Information Office,
 
creating long
 
-lived teams
 
that learn
 
and continuously
 
improve, which
 
in turn
attracts the best talent.
 
 
 
dev_UBS_AR_2022p55i0.gif
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Our
 
businesses
 
27
 
Our ambition is to have
 
a simplified and
 
modern technology landscape
 
that is secure and
 
stable, where we re-use
 
more
of everything and where
 
the platforms work together to drive progress
 
toward our overall strategic imperatives.
›
 
Refer to “Clients” in
 
the “How we create
 
value for our stakeholders”
 
section and to
 
“Our focus on
 
technology”
 
in the “Our
strategy” section
 
of this report for
 
more information about
 
innovation
 
and digitalization
Joint efforts between
 
the Investment
 
Bank and
 
the other business
 
divisions (for
 
example, our work
 
with Global Wealth
Management on our new
 
GFIW offering) and,
 
externally, strategic partnerships
 
(for example, UBS BB
 
jointly with Banco
do Brasil, focused on Latin America) continue to be key strategic priorities. Partnership
 
with Global Wealth Management
and Asset Management enables us to provide clients with broad access to financing, global capital markets and portfolio
solutions.
 
We
 
expect
 
these
 
initiatives
 
to
 
continue
 
to
 
lead
 
to
 
growth
 
by
 
delivering
 
global
 
products
 
to
 
each
 
region,
leveraging our global connectivity across
 
borders and sharing and
 
strengthening our best client relationships.
›
 
Refer to “Delivering
 
one ecosystem”
 
in this section
 
for examples
 
of the joint efforts
 
of the business
 
divisions
Our operations and our competitors
Our two business areas, Global Banking and Global
 
Markets, are organized globally by
 
product. Our business is regionally
diversified, with a presence in more
 
than 30 countries. We cover
 
the main investment banking markets globally, and have
major financial hubs across four
 
regions: the Americas; Asia Pacific; EMEA; and
 
Switzerland.
 
Our global
 
reach gives attractive
 
options for
 
growth. In
 
the Americas, the
 
largest investment
 
banking fee
 
pool globally,
we
 
continue
 
to
 
focus
 
on
 
increasing
 
market share
 
in
 
our
 
core
 
Global
 
Banking
 
and Global
 
Markets businesses.
 
In
 
Asia
Pacific, opportunities
 
arise mainly
 
from
 
expected
 
market
 
internationalization
 
and
 
growth
 
in
 
China,
 
where
 
we
 
plan
 
to
grow
 
by
 
strengthening
 
our presence,
 
both
 
onshore
 
and offshore.
 
In
 
EMEA,
 
we plan
 
to
 
leverage our
 
strong
 
base
 
and
brand recognition even further.
Competing firms operate in many
 
of our markets, but our
 
strategy differentiates us,
 
with our focus on
 
leadership in the
areas where we have chosen to compete and a business model that leverages talent and technology rather than balance
sheet. Our
 
main competitors
 
are the
 
major global
 
investment banks
 
(e.g., Morgan
 
Stanley, Credit
 
Suisse and
 
Goldman
Sachs)
 
and
 
corporate
 
investment
 
banks
 
(e.g.,
 
Bank
 
of
 
America,
 
Barclays,
 
Citigroup,
 
BNP
 
Paribas,
 
Deutsche
 
Bank
 
and
JPMorgan Chase). We also
 
compete with boutique investment banks
 
and fintech firms in certain regions
 
and products.
 
 
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Our
 
businesses
 
28
 
Group Functions
Group Functions provides services to
 
the Group, focusing on
 
effectiveness, risk mitigation and
 
efficiency. Group Functions
also includes the Non
 
-core and Legacy Portfolio unit.
How we are organized
Group Functions
Group Functions is made up of
 
the following major areas: Group Services
 
(which consists of Chief Digital and Information
Office, Communications
 
& Branding,
 
Compliance,
 
Finance, Group
 
Sustainability and
 
Impact,
 
Human Resources,
 
Group
Legal, Regulatory & Governance,
 
and Risk Control),
 
Group Treasury
 
and Non-core and
 
Legacy Portfolio.
 
In recent
 
years, we
 
have aligned
 
support functions
 
and business
 
divisions.
 
The vast majority
 
of such
 
functions are
 
fully
aligned or shared among the business divisions, where they
 
have full management responsibility. By keeping the activities
of
 
the
 
businesses
 
and
 
support
 
functions
 
close,
 
we
 
improve
 
efficiency
 
and
 
create
 
a
 
working
 
environment
 
built
 
on
accountability and collaboration.
 
Certain
 
activities
 
are
 
retained
 
centrally,
 
where
 
not
 
directly
 
related
 
to
 
the
 
businesses,
 
such
 
as:
 
Non-core
 
and
 
Legacy
Portfolio; a small
 
residual
 
set of activities
 
in Group
 
Treasury; and
 
certain other
 
costs that
 
are mainly
 
related to
 
deferred
tax assets and costs relating to our
 
legal entity transformation program.
 
Group Treasury
Group
 
Treasury
 
manages
 
balance
 
sheet
 
structural
 
risk
 
(e.g.,
 
interest
 
rate,
 
structural
 
foreign
 
exchange
 
and
 
collateral
risks)
 
as
 
well
 
as
 
the
 
risks
 
associated
 
with
 
our
 
liquidity,
 
capital
 
and
 
funding
 
portfolios.
 
Group
 
Treasury
 
serves
 
all
 
four
business divisions
 
,
 
and its
 
risk management
 
is integrated
 
into the
 
Group
 
risk governance
 
framework.
 
Non-core and Legacy Portfolio
Non-core and Legacy Portfolio consists of residual trades from businesses exited by the Investment Bank,
 
mainly in 2012.
Positions
 
are
 
typically
 
left
 
to
 
run
 
to
 
contractual
 
maturity,
 
although
 
trades
 
are
 
terminated
 
early
 
where
 
such
 
action
 
is
economically prudent,
 
and the portfolio continues to be actively hedged. The
 
portfolio also includes positions relating to
legal matters arising from businesses
 
transferred
 
to it at the time of its formation.
›
 
Refer to “Note 17
 
Provisions and contingent
 
liabilities” in
 
the “Consolidated financial
 
statements”
 
section of this report
 
for more
information about litigation,
 
regulatory and similar
 
matters
 
 
 
 
Our environment
Market climate
Global economic developments in 2022
1
 
2022 was
 
a challenging
 
year for the global
 
economy and
 
most markets. After rebounding
 
in 2021 from
 
the COVID-19
pandemic,
 
economic
 
momentum
 
slowed
 
in
 
2022.
 
The
 
Russia–Ukraine
 
war
 
contributed
 
to
 
higher
 
commodity
 
prices,
adding
 
to rising
 
inflation, which
 
reached
 
multi-decade
 
highs
 
in most
 
major economies.
 
This led
 
to the
 
fastest pace
 
of
monetary tightening by many leading
 
central banks since the 1980s.
 
Against this backdrop, global GDP growth decelerated to 3.3%
 
in 2022, from 6.5% in 2021, with
 
headwinds continuing
to mount
 
in 2023. US
 
GDP growth
 
slowed to 2.1
 
%
 
in 2022,
 
from 5.9% in
 
2021, as the Federal
 
Reserve raised interest
rates.
 
Reduced
 
energy
 
supplies
 
from
 
Russia
 
and
 
tighter
 
monetary
 
policy
 
from
 
the
 
European
 
Central
 
Bank
 
added
 
to
headwinds for the Eurozone
 
economy, where growth was down to 3.5%
 
in 2022,
 
from 5.3% in 2021. Weakness in the
Eurozone contributed to a slowdown in Switzerland. Swiss
 
GDP growth was down to 2.0% in 2022, from 4.2% in
 
2021.
UK GDP
 
grew
 
by 4.0%
 
in 2022,
 
down from
 
7.6%
 
in 2021,
 
with momentum
 
undermined by
 
higher
 
inflation, interest
rate increases by the Bank of
 
England (the BoE) and weaker global
 
demand.
China’s economy grew by 3.0%
 
in 2022,
 
down from 8.4% in 2021, reflecting an economic drag from the government’s
zero-COVID policy,
 
along with a downturn
 
in the nation’s real
 
estate sector. Other
 
leading Asian
 
economies slowed less
markedly, with GDP
 
growth in
 
India of
 
7.0%
 
in 2022,
 
down from
 
8.7% in
 
2021. South Korea’s
 
GDP grew
 
by 2.6% in
2022,
 
down from 4.1%
 
in 2021.
 
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
busi
ness
 
model
 
and
 
environment
 
|
 
Our
 
environment
 
29
 
Inflation
 
remained
 
elevated
 
in
 
2022.
 
Exceptionally
 
strong
 
demand
 
for
 
goods
 
emerged
 
as
 
economies
 
reopened,
overwhelming supply,
 
and creating
 
inflation. Just
 
as this pressure
 
faded, the
 
Russia–Ukraine
 
war led
 
to a rise
 
in energy
and
 
food prices,
 
further boosting
 
inflation. High
 
inflation affected
 
many major
 
economies,
 
averaging 8.5%
 
globally
 
in
2022.
 
US
 
inflation
 
reached
 
a
 
high
 
in
 
June
 
2022
 
of
 
9.1%
 
year
 
on
 
year,
 
having
 
risen
 
at
 
the
 
fastest
 
pace
 
since
 
1982.
However, inflation remained relatively muted in China,
 
at 3%, and Japan, at 1.1%, with neither country experiencing an
exceptional
 
post-pandemic
 
surge
 
in demand.
 
Inflation in
 
Switzerland was
 
also more
 
muted, at
 
2% for
 
2022, due
 
to a
less-pronounced profit margin expansion
 
than elsewhere.
 
Equity and
 
bond
 
markets fell
 
in tandem
 
in 2022,
 
impacted by
 
the combination
 
of high
 
inflation, monetary
 
tightening
and slowing growth. In 2022, the MSCI USA index fell by 19.8% and
 
the MSCI Eurozone,
 
the MSCI Switzerland and the
MSCI China indices
 
fell by
 
12.5%, by 17.1% and
 
by 20.7%
 
respectively (in
 
local currency
 
terms).
 
However, more defensive
markets outperformed, such
 
as the
 
MSCI UK index,
 
which increased by
 
7.1%. Globally, value
 
stocks proved more
 
resilient,
with the MSCI World Value index
 
down 6.5%, compared
 
with a 29.2% decrease in the MSCI World Growth
 
index.
 
Bond markets also experienced negative returns, amid headwinds
 
from higher inflation and central bank tightening. The
Bloomberg
 
Global Aggregate
 
Bond
 
index decreased
 
by 16.2
 
%
 
in 2022.
 
The yield
 
on 10
 
-year US
 
Treasuries ended
 
the
year at
 
3.9%,
 
up
 
from 1.5%
 
at the
 
end of
 
2021.
 
The yield
 
on
 
the 10-year
 
Swiss government
 
bonds
 
increased from
 
–
0.2%
 
at the start of
 
2022 to 1.6%
 
by year-end,
 
and the yield
 
on 10-year German
 
Bunds
 
increased to 2.6%,
 
up from
 
–
0.2% at the end of 2021.
Economic and market outlook for
 
2023
We expect 2023 to be a
 
year of inflections,
 
as investors try to
 
identify turning points for inflation,
 
interest rates, economic
growth and financial markets against
 
a complex geopolitical backdrop.
We expect
 
inflation
 
to be
 
lower at
 
the end
 
of 2023
 
than it
 
was at
 
the end
 
of 2022,
 
as tighter
 
monetary policy
 
slows
demand and
 
squeezes profit margins.
 
In addition,
 
a repeat of
 
the 2022
 
commodity price surge
 
is, in our
 
view,
 
unlikely.
Although future economic
 
data will
 
be key, and
 
recent data suggests
 
the decline in
 
inflation has been
 
slower than forecast
in some economies, we expect the Federal Reserve, the European
 
Central Bank,
 
the Swiss National Bank, and the BoE to
conduct the final interest rate increases
 
of this cycle in 2023
 
.
We expect the impact of higher
 
interest rates to
 
weigh on
 
economic growth and earnings.
 
Economic growth should
 
hit
bottom
 
later in
 
the
 
year,
 
if,
 
as
 
we
 
expect,
 
financial
 
conditions
 
start to
 
ease.
 
For
 
2023
 
as
 
a
 
whole,
 
we
 
expect the
 
US
economy to
 
grow
 
by 0.8
 
%, with
 
the Eurozone
 
expanding
 
0.8%
 
and Switzerland
 
0.4%.
 
We forecast
 
a contraction
 
of
0.4%
 
in UK
 
GDP,
 
with inflation still
 
high,
 
given the
 
prospect of tighter fiscal
 
and monetary policy. The
 
relaxation of China’s
COVID-19 restrictions
 
means a
 
rebound
 
of the
 
Chinese
 
economy is
 
likely over
 
the course
 
of 2023.
 
We expect China’s
GDP to expand 4.9%
 
in 2023.
 
Geopolitical events look
 
likely to remain
 
a concern for
 
investors. The Russia–Ukraine war poses
 
energy and security
 
threats
to Europe
 
and fosters the
 
risk of a
 
broader war.
 
US–China tensions
 
are unlikely to recede,
 
given Beijing’s
 
focus on
 
self-
sufficiency, the Biden
 
administration’s moves
 
to restrict
 
trade on
 
security grounds,
 
and the potential
 
for further discord
over Taiwan. In addition, we
 
are cognizant of an elevated risk of political tensions within
 
and across countries,
 
as well as
their impact on society and financial markets.
 
1
Comparative figures as of 28 February
 
2023.
 
 
Industry trends
 
Although our industry has been heavily affected by various regulatory
 
developments over the past decade,
 
technological
transformation
 
and
 
changing
 
client
 
expectations
 
are
 
further
 
emerging
 
as
 
key
 
drivers
 
of
 
change
 
today,
 
increasingly
affecting
 
the
 
competitive
 
landscape,
 
as
 
well
 
as
 
our
 
products,
 
service
 
models
 
and
 
operations.
 
In
 
parallel,
 
our
 
industry
continues to be materially driven by changes
 
in financial markets
 
and macroeconomic and
 
geopolitical conditions.
Digitalization
While the technological
 
maturity of
 
the financial
 
services sector
 
increased greatly
 
throughout
 
the COVID-19
 
pandemic,
digitalization in
 
our
 
industry is
 
still developing
 
at a
 
rapid pace.
 
The world
 
is faster,
 
more digital
 
and
 
more data
 
-driven
than
 
ever before,
 
with
 
clients increasingly
 
demanding
 
even
 
more
 
seamless,
 
personalized
 
digital
 
products
 
and
 
services
tailored to their needs. Following
 
the COVID-19 pandemic, regional and demographic differences
 
in the acceptance and
use of digital technologies are
 
narrowing, thus continuing
 
a high rate of digital adoption across all client segments. As
 
a
result, we see a gradual shift
 
from digitalizing and automating existing processes to digital-as-default solutions, while still
allowing for human interaction,
 
a component that continues
 
to be an important competitive advantage.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
busi
ness
 
model
 
and
 
environment
 
|
 
Our
 
environment
 
30
 
Digital communication,
 
with clients and employees
 
alike, has established new remote
 
ways of working, enabling financial
services providers
 
to attract
 
an even
 
wider array
 
of talent
 
than before.
 
The digitalization
 
of the financial
 
services sector
has led
 
to a structural shift
 
in the
 
workforce: more
 
and better engineers
 
are required
 
to keep
 
banks at the
 
forefront of
technology,
 
thus putting
 
them into direct
 
competition
 
with technology
 
companies beyond
 
the borders
 
of the financial
sector.
Continuous
 
investment in
 
technology
 
is
 
driving
 
automation
 
and
 
simplification
 
of
 
labor-intensive
 
processes,
 
improving
banks’ operational efficiency and freeing up resources to focus
 
on client needs. Decision-making is becoming increasingly
data-driven, with advanced analytics and artificial
 
intelligence (AI) enabling banks to address client needs in an
 
even more
targeted manner.
 
In a
 
consistently connected,
 
open,
 
and
 
location-independent
 
financial services
 
ecosystem,
 
the focus
lies on adopting open-source technology,
 
including cloud-native and modular
 
architecture,
 
to drive innovation and open
exchange.
 
An open-finance environment combined
 
with a shift in business models from in
 
-person to digital channels bears the risk
of increased
 
digital vulnerability.
 
Clients and
 
other stakeholders
 
are demanding
 
ethical and
 
responsible
 
data gathering,
storage
 
and
 
usage,
 
making
 
the
 
protection
 
of
 
the
 
firm’s
 
data
 
a
 
continued
 
priority
 
and
 
focus.
 
We
 
also
 
place
 
great
importance on managing the risk of cyberattacks.
Decentralized finance applications, including
 
digital cash solutions, are gradually being adopted
 
by the banking industry.
Nascent
 
technologies,
 
such
 
as distributed
 
ledger
 
technology,
 
are
 
expected
 
to
 
mature
 
over
 
the
 
coming
 
years and
 
may
reshape
 
our
 
industry.
 
They
 
provide
 
opportunities
 
to
 
overcome
 
friction
 
within
 
the
 
existing
 
financial
 
system,
 
increase
banking
 
efficiency,
 
broaden
 
access
 
to
 
underserved
 
communities
 
and
 
make
 
previously
 
unviable
 
products
 
or
 
services
available
 
to
 
the
 
financial
 
services
 
sector.
 
They
 
also
 
further
 
enable
 
early-stage
 
concepts,
 
such
 
as
 
Web
 
3.0
 
and
 
the
metaverse, which could lead to an
 
enhanced digital user experience.
 
Sustainability
The evolution
 
of corporate
 
business
 
models, the
 
growth in
 
investors factoring
 
the transition
 
to a low
 
-carbon economy
and
 
other sustainability
 
themes into
 
investment risk-and
 
-return expectations,
 
the ongoing
 
shifts in
 
societal values,
 
and
greater regulation are
 
all increasing client demand
 
for sustainable investing strategies.
In 2022, due
 
to the challenging
 
environment for investments, global
 
open-ended fund
 
and exchange-traded fund
 
(ETF)
total net assets
 
decreased
 
by 19%.
1
 
Despite this downturn,
 
the industry
 
overall saw
 
continued inflows
 
into sustainable
investing products, while funds and ETFs that were not specifically categorized as sustainable faced outflows throughout
most of 2022.
1
 
Our view is
 
that the long-term growth trajectory for sustainable funds and ETFs
 
plays to UBS’s strengths, as we
 
have been
at the forefront of sustainable finance for
 
over two decades, making us well placed to build on our offering
 
and continue
to develop the innovative products
 
and solutions our institutional and
 
private clients need.
›
 
Refer to our Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
, for more information
 
about
sustainability matters
Client expectations
 
As technology progresses, clients more rapidly redefine the
 
way they live, work and interact with others. This is
 
reshaping
clients’ expectations
 
toward financial
 
services firms,
 
as their
 
reference points
 
are increasingly
 
influenced by
 
experiences
with companies
 
outside our
 
sector, where
 
technology-supported
 
and data-driven
 
solutions are
 
progressively enabling
 
a
more personalized, relevant, on-time and seamless
 
client experience. These
 
services often focus on
 
convenience, flexibility
and personalization, and
 
drive toward
 
holistically addressing clients’
 
needs and facilitating community
 
building. Therefore,
our franchise needs to evolve,
 
as clients measure us against
 
new standards. While the global pandemic further
 
sharpened
our
 
industry’s
 
focus
 
on
 
digital-led
 
solutions,
 
recent
 
geopolitical,
 
macroeconomic
 
and
 
societal
 
shifts
 
have
 
highlighted
values such as security,
 
stability and a credible plan toward a
 
sustainable future. Additionally, many clients not
 
only expect
net-zero
 
commitments
 
from
 
their
 
financial
 
services
 
provider
 
of
 
choice,
 
but
 
they
 
are
 
also
 
increasingly
 
demanding
investment, financing and advisory products
 
and services that fit their own sustainability preferences
 
and ambitions.
Consolidation
Many regions and
 
businesses in the
 
financial services sector are still highly fragmented. We
 
expect further consolidation,
with the key drivers being ongoing margin pressure, a push for cost efficiencies and increasing scale advantages resulting
from
 
fixed technology costs
 
and regulatory
 
requirements. Many players
 
in financial
 
services continue
 
to seek
 
increasing
exposure and
 
access to
 
regions with
 
attractive growth profiles, such
 
as Asia
 
and other emerging
 
markets, through local
acquisitions or
 
partnerships, as well as
 
acquiring new capabilities
 
addressing changes
 
in market dynamics
 
and overall client
demands. The
 
increased focus
 
on
 
core capabilities
 
and
 
geographical footprint, as
 
well
 
as
 
the ongoing
 
simplification of
business models to reduce operational and compliance risks, is likely to
 
drive further disposals of non-core businesses and
assets. While
 
banks
 
already face
 
increasing challenges
 
from digitalization needs
 
and intensified
 
competition, tightening
macroeconomic conditions across major economies
 
may create further
 
pressure if a
 
recessionary environment cannot be
avoided.
 
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
busi
ness
 
model
 
and
 
environment
 
|
 
Our
 
environment
 
31
 
New competitors
Our competitive
 
environment is
 
evolving.
 
In addition
 
to traditional
 
competitors in
 
the
 
asset-gathering
 
businesses,
 
new
entrants are
 
targeting selected
 
parts of
 
the value
 
chain. However,
 
we have
 
not yet
 
seen a
 
fundamental u
 
nbundling
 
of
the value chain
 
and client
 
relationships,
 
which might
 
ultimately result
 
in the further
 
disintermediation of
 
banks by
 
new
competitors. Over the long term, we believe large platform companies entering the financial services
 
sector could pose a
larger competitive
 
threat,
 
given
 
their strong
 
client franchises
 
and
 
access to
 
client
 
data,
 
if they
 
decide
 
to
 
broaden
 
the
scope
 
of
 
their
 
services.
 
While
 
fintech
 
firms
 
have
 
gained
 
greater
 
momentum
 
during
 
the
 
COVID-19
 
pandemic,
 
recent
macroeconomic developments have slowed
 
down the trend, as
 
funding appetite and
 
valuations have trended downward.
Although
 
we
 
expect
 
our
 
industry
 
to
 
recover
 
in
 
the
 
near
 
term,
 
we
 
do
 
not
 
expect
 
a
 
material
 
disruption
 
of
 
our
 
asset-
gathering businesses.
 
The trend
 
for forging
 
partnerships between
 
new entrants and
 
incumbent banks
 
is continuing,
 
as
technology and innovation
 
help banks overcome new challenges.
Regulation
In 2022, regulators further progressed in their policy developments with a focus on regulations around digital innovation
and sustainable finance along
 
with finalizing and implementing the remaining
 
Basel III requirements.
 
Regulators
 
increased their focus
 
on AI, data and,
 
particularly, digital assets,
 
as a result of
 
market turbulence. In the
 
area
of digital
 
assets,
 
the attention
 
by regulators
 
was on
 
stablecoins,
 
crypto assets
 
and
 
the prudential
 
treatment of
 
banks’
exposures to
 
digital assets, with
 
recent efforts
 
by supranational
 
standard
 
setters aiming
 
to coordinate
 
relevant national
regulations. Central
 
banks also
 
continued to
 
work on
 
central bank
 
digital currencies,
 
which aim
 
to provide
 
new digital
payment instruments that would be
 
a direct liability of the central bank.
Sustainable
 
finance
 
and
 
climate-related
 
risks
 
continued
 
to
 
be
 
a
 
key
 
focus
 
of
 
policymakers
 
in
 
2022,
 
where
 
we
 
noted
significant
 
activity,
 
particularly
 
in
 
the
 
areas
 
of
 
disclosures
 
regarding
 
the
 
impact
 
of
 
climate-related
 
risks
 
and
 
corporate
sustainability actions, classification
 
or taxonomies of sustainability
 
-related efforts and
 
activities, and risk management of
climate-related
 
financial
 
risks.
 
The
 
multitude
 
of
 
developments
 
at
 
the
 
jurisdictional
 
level
 
has
 
the
 
potential
 
to
 
create
 
a
fragmented
 
policy
 
landscape.
 
These
 
developments
 
add
 
to
 
the
 
rapidly
 
evolving
 
societal
 
expectations
 
toward
 
financial
institutions.
The
 
national
 
implementation
 
of
 
the
 
remaining
 
Basel
 
III
 
elements
 
continues
 
to
 
be another
 
important
 
focus
 
area.
 
The
authorities in Switzerland and
 
the UK launched consultations on
 
their approaches in 2022
 
and Switzerland changed the
expected date on which the final Basel
 
III guidelines are to enter into
 
force, from 1 July
 
2024 to 1
 
January 2025.
 
The EU
authorities continued with
 
the parliamentary debates.
 
We expect the
 
US authorities also to
 
start their consultation
 
process
in the first
 
half of
 
2023.
 
Although the
 
timing of
 
the implementation
 
seems broadly
 
aligned across
 
Switzerland,
 
the EU
and the UK at this stage, we
 
still see a significant risk of divergence regarding
 
the content of the provisions.
In addition, regulatory authorities continued to refine existing regulations, including the finalization of the Swiss too-big-
to-fail framework
 
and
 
revision
 
of the
 
EU anti-money
 
laundering
 
framework, as
 
well
 
as efforts
 
to enhance
 
operational
resilience. Following Brexit,
 
the UK started a holistic review
 
of its regulatory
 
framework for financial services,
 
while both
the
 
EU
 
and
 
the
 
UK
 
are
 
updating
 
their
 
wholesale
 
markets
 
and
 
investor
 
protection
 
rules.
 
Furthermore,
 
the
 
focus
 
of
regulatory
 
authorities
 
is
 
also
 
increasingly
 
moving
 
toward
 
corporate
 
responsibility,
 
diversity
 
and
 
inclusion
.
Finally,
digitalization and shifts in the
 
macroeconomic and interest rate environment increased the focus on
 
operational resilience
and
financial
 
stability
 
risks
,
 
including
 
the
 
assessment
 
of
 
existing
 
policy
 
gaps
 
relating
 
to
 
the
 
non
-
bank
financial
intermediation sector.
Many
 
of
 
these
 
developments
 
are
 
taking
 
place
 
in
 
an
 
environment
 
characterized
 
by
 
significant
 
political
 
uncertainties,
including increasing
 
geopolitical tensions and
 
the Russia–Ukraine war
 
which resulted in
 
the adoption of
 
unprecedented
sanctions packages introduced
 
by various jurisdictions against
 
Russia and Belarus.
 
This led to significant
 
implementation
efforts that
 
were
 
closely coordinated
 
between
 
authorities
 
to ensure
 
consistency in
 
interpretation
 
and
 
implementation.
Political uncertainties and geopolitical tensions are posing
 
additional challenges to the provision
 
of cross-border financial
services.
We believe the continued adaptations made to our business model and our proactive management of regulatory change
put us in a strong position
 
to absorb upcoming changes to the regulatory
 
environment.
›
 
Refer to the “Regulatory
 
and legal developments”
 
and “Capital,
 
liquidity and funding,
 
and balance sheet”
 
sections of this
 
report
for more information
 
Wealth creation
2
 
2022 began with the global high net worth individual
 
population and financial wealth both at record highs, with surging
financial markets
 
and recovering economies enabling the
 
global high net
 
worth individual population and
 
financial wealth
to increase 7.8% and
 
8.0%, respectively,
 
in 2021.
Since then, falling equity and bond markets, slowing economic growth,
 
and US dollar strength, mean that global wealth
growth
 
in
 
2022
 
was
 
likely substantially
 
lower,
 
or
 
negative,
 
although
 
we
 
continue
 
to see
 
the
 
longer-term outlook
 
for
wealth creation and financial asset appreciation
 
as positive.
 
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
busi
ness
 
model
 
and
 
environment
 
|
 
Our
 
environment
 
32
 
As of the end of 2021,
 
46% of global financial wealth was concentrated
 
in North America, followed by
 
Asia (26%) and
Europe (21%).
3
 
By
 
segment,
 
approximately
 
one-third
 
of
 
global
 
high
 
net
 
worth
 
individual
 
wealth
 
is
 
held
 
by
 
individuals
 
with
 
wealth
 
in
excess of USD 30m, 23% by individuals with wealth
 
ranging from USD 5m to USD 30m and the remaining 43% is
 
within
the wealth segment between USD
 
1m and USD 5m.
Wealth is being created at a faster rate for certain key client groups, including
 
female clients and entrepreneurs. We also
see significant wealth transition to
 
the next generation over the coming
 
decade.
Wealth transfer
Demographic and socioeconomic developments
 
continue to generate shifts in wealth.
 
Over the next few decades, more
than USD
 
30trn of
 
wealth will
 
be pass
 
ed between
 
generations.
 
The majority
 
will move
 
from the
 
silent generation
 
and
older baby
 
boomers to younger
 
baby boomers and
 
Gen X (jointly encompassing
 
individuals currently between
 
the ages
of 42 and 65).
2
 
As a group, these “next gens” are likely to have a longer investment horizon, a greater appetite for risk, often combined
with a desire to use wealth to
 
create a positive societal impact alongside investment returns. Meanwhile, as shown in the
Wealth-X
 
report “World Ultra Wealth
 
Report 2022,” the proportion
 
of ultra-wealthy
4
 
women is
 
gradually rising, reflecting
changing cultural attitudes and
 
growth in female entrepreneurship,
 
as well as wealth transfers between generations.
We are responding to the evolving wealth landscape
 
with a framework that addresses all aspects of our
 
clients’ financial
lives, called
UBS
 
Wealth
 
Way
.
 
It begins
 
with
 
discovery
 
questions
 
and
 
a
 
conversation
 
with
 
clients about
 
what
 
is
 
most
important to them.
 
We help
 
clients organize their
 
financial life along
 
three key strategies:
Liquidity
 
to help
 
provide cash
flow for short-term
 
expenses;
Longevity
 
for long-term needs;
 
and
Legacy
 
for needs
 
that go
 
beyond their own
 
and help
improve the lives of others, a key part of wealth
 
transfer planning.
Investing in an inflationary
 
world
As a result of the
 
major macroeconomic shocks
 
in 2022, investors are
 
facing a very
 
different landscape
 
to the one seen
over the past decade, with
 
significant market volatility, higher interest rates and inflation levels not seen for a generation.
This environment has created opportunities
 
in the bond market, and investors are once
 
again being rewarded
 
for taking
risks
 
in fixed income. Investors also
 
continue to diversify
 
into illiquid alternatives (including private equity, property, hedge
funds and
 
infrastructure)
 
that can
 
deliver compelling
 
longer-term risk-adjusted
 
returns,
 
while also
 
looking for
 
low-cost,
efficient passive strategies
 
across liquid
 
markets. The breadth
 
of our
 
investment expertise and
 
capabilities enables
 
us to
find the right solutions for clients across
 
asset classes and regions.
 
1
Morningstar Direct, as of or for the year ended 31 December 2022. Encom
 
passes worldwide open-ended funds
 
and exchange-traded funds, excluding
 
money market funds. Sustainable
 
funds are identified on the basis
of Morningstar’s
 
Sustainable-Investment framework
 
.
 
© Morningstar 2023
 
.
 
All rights reserved.
 
The information
 
contained herein:
 
(1) is proprietary
 
to Morningstar and
 
/ or its content
 
providers; (2) may
 
not be copied,
adapted or distributed; (3) is
 
not warranted to
 
be accurate, complete
 
or timely; and (4)
 
does not constitute advice
 
of any kind, whether investment,
 
tax, legal or otherwise.
 
User is solely responsible
 
for ensuring that
 
it
complies with all laws,
 
regulations and restrictions
 
applicable to it.
 
Neither Morningstar
 
nor its content
 
providers are resp
 
onsible for any damages
 
or losses arising from
 
any use of this
 
information, except
 
where such
damages or losses cannot
 
be limited or excluded by law in
 
your jurisdiction. Past
 
performance is no guarantee
 
of future resul
 
ts.
2
All the figures are
 
from the
 
Capgemini World
 
Wealth Report
 
2022 unless
 
otherwise stated
 
and refer
 
to the 2021
 
financial year.
 
The Capgemini
 
World Wealth
 
Report
 
2022 segments
 
wealth as follows:
 
those with
wealth of greater than USD
 
30m are classified as
 
ultra high net worth individuals
 
;
 
USD 1m
 
to USD 30m for high net
 
worth individuals.
3
Based on BCG Global Wealth Report
 
2022,
 
which refers to the 2021
 
financial year.
 
Wealth concentration
 
is based on financial assets
 
by regions and excludes real
 
assets and liabilities.
4
World Ultra Wealth Report 2022,
 
Altrata. The report
 
defines those with wealth
 
of greater than USD 30m as
 
ultra high net worth
 
individuals (also referred
 
to as the “ultra wealthy”).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
33
 
How we create value for our stakeholders
Stakeholder
 
group
Stakeholder needs:
what our stakeholders expect
 
from us
Value proposition:
how we create value for our
stakeholders
Key topics discussed:
what was important to our
stakeholders in 2022
Stakeholder engagement:
how we engage with our
 
stakeholders
Clients
Advice on a broad range of products
and services from trusted advisors,
addressing increasingly complex
needs
A mix of personal interaction with our
advisors in combination with digital
and remote services (convenient,
seamless digital banking)
High-quality solutions and the highest
standards in terms of asset safety,
data and information security,
confidentiality, and privacy
A combination of global reach and
local capabilities targeting positive
investment outcomes
Competitively priced products and
services, risk management, and the
provision of liquidity
Delivering tailored advice and
customized solutions, using our
intellectual capital and digital
platforms
Developing new products, solutions
and strategic partnerships in response
to clients’ evolving needs
Providing access to global capital
markets and bespoke financing
solutions
Meeting increasing sustainable
investment and private markets
demand from clients
Implementing cross-divisional offering
with fully aligned front-to-back setup
Investing in times of uncertainty: high
inflation, market volatility,
 
rising
interest rates, slowing economic
growth and increasing geopolitical
tensions
Holistic goal-based financial planning
Sustainable finance and investing
opportunities
Data privacy and security
Products and services, including those
around digital banking
 
Personalized meetings
A blend of virtual and in-person client
events and conferences, including
information about key developments
and opportunities
Client satisfaction surveys
Increasing levels of digital interaction
with clients
Monitor client feedback and complaint
handling
 
Investors
Disciplined execution of our strategy
leading to attractive capital returns
through dividends and share
repurchases
Comprehensive and clear disclosures
on quantitative and qualitative data
necessary to make informed
investment decisions
Recognizing and proactively
addressing strategic opportunities
and challenges
Executing our strategy with discipline
and agility as the external
environment evolves, while aiming to
deliver cost- and capital-efficient
growth
Providing relevant, transparent, timely
and reliable public disclosures
Strategic plans and targets, and
execution against them
Structural growth
 
in and return
potential of our businesses
Cost efficiency and ability to generate
positive operating leverage
Ability to protect or grow profits in a
higher-inflation and rising-interest-
rate environment
Incorporation of environmental, social
and governance (ESG) factors into the
business model, compensation and
risk management
Financial reports, investor and analyst
conference calls, and webcasts,
 
as
well as media updates about our
performance or other disclosures
General meetings of shareholders
Investor and analyst meetings
Digital interactions
 
with investors as
 
a
result of COVID-19
 
pandemic
restrictions and
 
hybrid-working
 
patterns
in the industry,
 
with limited impact
 
on
pre-pandemic meeting
 
schedules and
participation, given
 
reliable virtual
solutions; the 2022
 
Annual General
Meeting was held virtually
Employees
A world-class employer with the
expertise and breadth of opportunity
to empower successful careers
A collaborative, engaging, inclusive
and supportive workplace culture
An environment that provides a sense
of belonging and opportunities to
positively impact colleagues, clients,
shareholders and society
 
Engaging work and career growth
opportunities, including future-
capabilities development, and
rewards for performance and impact
Hiring talented, diverse employees
and investing in development, now
and for the future
 
Fair, effective
 
people management
and compensation policies and
practices
 
Further strengthening our workplace
culture to live up to our purpose,
 
and
providing a framework for employees
to develop their careers
Hybrid-
 
and flexible-working
arrangements, along with
 
holistic
support to empower employees and
foster resilience
Comprehensive data
 
analytics that
enable leaders to
 
make better and
faster decisions
 
to meet business
 
needs
Living up to our purpose and culture,
enabled by our three keys
 
to success
Fair and equitable pay practices
Focusing on impact and outcome
 
in
our performance management
processes
Hybrid-, flexible-
 
and home-working
arrangements
Building a diverse, equitable and
inclusive workplace
Fostering internal mobility and
providing long-term career prospects
Accelerating new ways of working,
particularly through Agile@UBS
Regular CEO and senior leadership
communications and events, along
with divisional, regional and
functional sessions with employees
Group-wide targeted surveys and
other employee engagement activities
Group Franchise Awards
 
and the
Kudos peer-to-peer
 
recognition
program
Health and well-being events and
offerings, employee networks and
volunteering opportunities, and
hybrid-
 
and flexible-working
arrangements
Society
Facilitation of economic development
that is sustainable for the planet and
humankind
Maximization of our positive effects
and minimization of any negative
effects on society and the
environment
Proactive management of the
environmental and societal impacts of
our businesses
Promoting significant and lasting
improvements to the well-being of
communities in which we operate
Taking an active role in the
 
transition
of our economy toward
environmentally and socially
sustainable solutions
Advising clients to align their business
models with ESG parameters and the
United Nations Sustainable
Development Goals
Sustainable finance
Our climate strategy
Our client and corporate
 
philanthropy
efforts
Furthering the economic and social
inclusion of those we support
Grant making and volunteering
through strategic community partners
Participation in forums and round
tables, as well as industry-, sector-
and topic-specific debates
Dialogues with regulators and
governments;
 
interaction with NGOs
Launch of our Ukraine and Pakistan
Relief Funds
Support for COVID
 
-19-related aid
projects across our communities
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
34
 
Clients
Our clients are the heart of our business.
 
We are committed to building and sustaining long
 
-term relationships based on
mutual
 
respect,
 
trust
 
and
 
integrity.
 
Understanding
 
our
 
clients’ needs
 
and
 
expectations
 
enables
 
us
 
to
 
best
 
serve their
interests
 
and
 
to create
 
value
 
for them,
 
underpinned
 
by our
 
client promise
 
that we
 
aim to
 
differentiate
 
our service
 
by
delivering a client experience that is personalized,
 
relevant, on-time and
 
seamless.
Our clients and what matters
 
most to them
There is no typical UBS
 
client, but each of our clients expects
 
outstanding advice and
 
service, a range of choices, and
 
an
excellent client experience.
Global Wealth Management
 
focuses on serving the
 
unique and sophisticated
 
needs of
 
wealthy families and
 
individuals.
We give them
 
access to
 
outstanding
 
advice, global
 
service and
 
investment opportunities,
 
delivered by
 
experts they
 
can
trust and
 
based
 
on
 
the
 
expertise and
 
insights
 
of
 
our
 
Chief
 
Investment
 
Office
 
(the
 
CIO).
 
Using
 
a
 
holistic,
 
goals-based
approach to
 
financial planning,
 
we deliver a
 
personalized
 
wealth management
 
experience, working
 
closely with
 
clients
to help
 
them realize
 
their ambitions,
 
and
 
we make
 
our wealth
 
coverage
 
more client-centric,
 
digital and
 
effective.
 
Our
client-facing
 
advisors and
 
the global
 
teams supporting
 
them
 
focus on
 
developing long-term
 
client relationships,
 
which
often span
 
generations. Clients
 
look
 
to us
 
for expertise
 
in helping
 
them to
 
grow, protect
 
and
 
transfer their
 
wealth, as
well
 
as
 
helping
 
them
 
make
 
some
 
of
 
the
 
most
 
important
 
decisions
 
in
 
their
 
lives.
 
From
 
significant
 
liquidity
 
events
 
to
professional milestones and
 
personal turning points, we aim to give clients the confidence to
 
move forward and achieve
their goals.
 
Through
 
extensive research
 
into clients’
 
preferences
 
and
 
goals,
 
and
 
broader analysis
 
of
 
investor sentiment
globally, we constantly
 
evolve our offerings to
 
meet the
 
shifting priorities of today’s
 
wealthy clients. This includes
 
investing
in digital capabilities and
 
developing products
 
to help clients fund
 
their lifestyles and manage
 
their cash
 
flow, as well as
offering guidance
 
on how they
 
can create a
 
lasting and
 
positive impact for
 
their communities and
 
the causes they
 
care
about most. We
 
are the leading
 
global wealth manager for
 
clients interested in
 
sustainable investing,
1
 
with a commitment
to developing solutions
 
that enable them to align their financial goals with
 
their personal
 
values.
 
›
 
Refer to “Global
 
Wealth Management”
 
in the “Our businesses”
 
section of this
 
report for more information
 
about sustainable
investment offerings
Personal & Corporate Banking serves a total of approximately 2.6 million retail clients
2
 
and more than 100,000 corporate
clients,
3
 
companies
 
ranging
 
from start-ups
 
to multi-nationals,
 
including
 
specialized entities,
 
such as
 
pension funds
 
and
insurers, real estate companies,
 
commodity traders and
 
banks. Our clients include more
 
than 30% of Swiss households,
more
 
than
 
90%
 
of
 
the
 
250
 
largest
 
Swiss
 
corporations
 
and
 
more
 
than
 
50%
 
of
 
midsize
 
to
 
large
 
pension
 
funds
 
in
Switzerland.
 
They look
 
for financial
 
advice based
 
on
 
their needs
 
at each
 
stage of
 
their individual
 
or corporate
 
journey.
We aim to
 
deliver outstanding
 
advice to all via
 
a multi-channel approach.
 
Clients have access to
 
digital banking,
 
a wide
network of
 
branches and remote
 
advice. These channels
 
are designed to
 
deliver a quality and
 
convenient client experience
with 24/7
 
availability, security and
 
value for money,
 
resulting in high
 
levels of client satisfaction.
 
Clients are also
 
offered
a broad
 
range of
 
products and
 
services in
 
all relevant
 
areas: basic
 
banking,
 
investing, financing
 
(including mortgages),
retirement
 
planning,
 
cash
 
management,
 
trade
 
and
 
export
 
finance,
 
global
 
custody,
 
and
 
company
 
succession,
 
among
others.
 
In Asset
 
Management, we manage
 
relationships with institutional clients (including sovereign
 
institutions, central banks,
pension funds
 
and insurers),
 
wholesale intermediaries and
 
Global Wealth Management and
 
its clients. By
 
building long-
term, personalized relationships with our clients and partners, underpinned by disciplined execution,
 
we aim to achieve a
deep understanding of their needs and to earn their
 
trust. We combine our global scale with
 
the independent thinking of
our distinct investment
 
teams to utilize innovative
 
ideas, drawing on the breadth
 
and depth of our investment
 
capabilities,
across traditional
 
and alternative, active
 
and indexed, to
 
deliver the solutions
 
that clients need.
The
 
Investment
 
Bank
 
provides
 
corporate,
 
institutional
 
and
 
wealth
 
management
 
clients
 
with
 
expert
 
advice,
 
financial
solutions, deal
 
execution and
 
access to
 
the world’s
 
capital markets.
 
Our business
 
model is
 
specifically built
 
around our
clients and
 
their
 
needs.
 
Corporate
 
clients
 
can
 
access
 
advisory
 
services,
 
debt
 
and
 
equity
 
capital
 
market
 
solutions,
 
and
bespoke
 
financing through
 
our Global
 
Banking business.
 
Our Global
 
Markets business
 
focuses on
 
helping institutional
clients engage with local markets around
 
the world, offering equities and equity-linked
 
products, and foreign exchange,
rates and credit products and
 
services. Our differentiated
 
content offering is underpinned
 
by Investment Bank Research.
The differentiated nature of our research provides access
 
to insight-ready data sets for thousands of companies, and aims
to give clients an informational edge. In 2022, our experts
 
produced more than 40,000 research reports,
 
attracting seven
million reads.
 
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
35
 
We know
 
the security
 
and
 
confidentiality of
 
our clients’
 
data is
 
of utmost
 
importance to
 
them, as
 
it is for
 
UBS. That
 
is
why
 
we
 
put
 
the
 
highest
 
priority
 
on
 
having
 
comprehensive
 
measures
 
in
 
place
 
that
 
are
 
seeking
 
to
 
ensure
 
client
 
data
confidentiality
 
and
 
integrity
 
are
 
maintained.
 
We
 
continually
 
assess
 
and
 
improve
 
our
 
control
 
environment
 
to
 
mitigate
emerging
 
cyber
 
threats
 
and
 
meet
 
expanding
 
legal
 
and
 
regulatory
 
expectations.
 
Investments
 
in
 
our
 
digital
 
platforms
preserve
 
and
 
improve
 
our
 
security standards,
 
with
 
a focus
 
on
 
giving
 
clients secure
 
access
 
to
 
their data
 
via our
 
digital
channels
 
and
 
protecting that
 
data from
 
unauthorized
 
access. Although
 
the level
 
of sophistication
 
and
 
the impact
 
and
volume of cyberattacks
 
continue to
 
grow worldwide,
 
we are
 
ever vigilant, maintaining
 
a strong
 
and agile cybersecurity
and information security program to mitigate and
 
manage cyber risk by providing robust, consistent, secure and resilient
business processes.
Enhancing the client experience
 
through innovation and digitalization
We streamline and
 
simplify interactions with clients through
 
front-to-back digitalization
 
and innovation.
In Global Wealth Management, we develop
 
and deploy digital tools that
 
help deepen and
 
enhance the relationships we
have built
 
with our
 
clients,
 
a factor
 
that differentiates
 
UBS.
 
Clients expect
 
the convenience
 
and
 
speed that
 
technology
offers but, at the same time, they feel that a personal experience with advisors is more important than ever. Our advisors
use digital
 
tools to
 
spend
 
more time
 
with
 
clients and
 
better evaluate
 
the full
 
scope
 
of their
 
financial lives.
 
Our
 
clients
appreciate digital
 
tools
 
that improve
 
their experience.
 
They
 
also want
 
multiple ways
 
in which
 
to
 
interact
 
conveniently
with their advisors.
 
Clients increasingly
 
embrace the use
 
of digital and
 
mobile tools. We continue
 
to introduce new
 
and
better tools to meet and exceed clients’ expectations
 
.
 
For example, our
UBS Manage Advanced [My Way]
 
solution offers
clients in selected markets
 
access to more
 
than 60 professionally
 
managed investment modules.
 
Clients can personalize
beyond what they
 
can normally
 
do in a
 
discretionary solution while continuing
 
to reap
 
the benefits
 
of continuous portfolio
monitoring and risk management. The app
 
is interactive; clients
 
can work with their
 
advisors to design their
 
own portfolio
based on individual preferences and priorities, easily
 
including elements such as sustainable investing modules or themes.
We intend
 
to further
 
extend
 
access and
 
upgrade
 
client convenience
 
and
 
experience
 
with
UBS
 
Manage
 
Advanced
 
[My
Way]
.
In 2022,
UBS Circle
 
One
 
was launched in Asia Pacific. This digital
 
platform aims to bring to clients the
 
best of UBS’s
global ecosystem for investing, connecting them with experts, thought leaders and actionable ideas delivered by the CIO
in an
 
engaging
 
and convenient way.
 
As a
 
trusted brand
 
offering premium
 
content, we
 
see opportunities
 
to deliver our
expertise to a
 
broader set
 
of clients, combining
 
digital experience with
 
human advice.
 
Progress continues
 
on our
 
multi-
year strategy
 
to serve
 
clients via
 
two platforms:
 
the
Wealth Management
 
Americas
 
Platform
 
in the
 
US and
 
the
Wealth
Management Platform
 
outside the US.
In
 
Personal
 
&
 
Corporate
 
Banking,
 
we
 
further
 
strengthened
 
our
 
leadership
 
position
 
as
 
the
 
leading
 
digital
 
bank
 
in
Switzerland by continuing to develop simple,
 
smart, secure and sustainable solutions for our clients. In 2022
 
,
 
an average
of 7
 
4%
 
of Personal
 
Banking
 
clients used
 
Digital Banking,
 
and
 
an average
 
of 56
 
%
 
logged
 
in via
 
Mobile Banking
 
.
 
This
demonstrates
 
that
 
our
 
clients are
 
engaging
 
more
 
frequently
 
with
 
us
 
through
 
our online
 
and
 
mobile
 
capabilities. Our
continued growth
 
in digital enrollment and engagement
 
led us to take
 
the next evolutionary step
 
,
 
the introduction of
 
a
dedicated digital assortment line:
UBS key4
. Within six months
 
of its launch
 
in May 2022, we
 
introduced a comprehensive
digital product
 
shelf.
UBS
 
key4
 
banking
 
offers new
 
Personal
 
Banking
 
clients 24/7
 
mobile account
 
opening
 
via secure,
biometric
 
self-identification
 
and
 
instant
 
credit
 
card
 
availability,
 
with
 
attractive
 
exchange
 
rates.
 
With
UBS
 
key4
 
smart
investing
,
UBS
 
key4 gold
,
UBS key4
 
pension 3a
 
and
UBS key4
 
FX
, our
 
Swiss clients
 
benefit from
 
new
 
seamless digital-
only investing, pension
 
and payment solutions. We have also delivered products
 
and personalized care for our corporate
clients,
 
whose
 
digital
 
adoption
 
has accelerated
 
further in
 
recent
 
years,
 
with
 
an
 
average
 
of
 
80%
 
of
 
such
 
clients using
Digital Banking
 
in 2022.
 
With
UBS key4
 
business
, small
 
and medium-sized
 
enterprises
 
that are
 
in the process
 
of being
formed
 
can
 
open
 
their
 
accounts
 
more
 
quickly
 
and
 
entirely
 
paperlessly,
 
and
 
access
 
comprehensive
 
solutions
 
beyond
banking
 
via our
UBS
 
key4 business
 
marketplace
. Complementing
 
our dedicated
 
digital offering,
 
we also
 
continued
 
to
further build out our hybrid touchpoints with clients,
 
such as
Remote Sales & Advice
 
for private clients and our
Corporate
Hybrid
 
Bank
.
 
In
 
addition,
 
to
 
give
 
clients
 
access
 
to
 
market-leading
 
solutions
 
beyond
 
banking,
 
we
 
have
 
expanded
 
our
network of
 
partnerships,
 
such as our
 
targeted long-term collaboration
 
with Baloise,
 
investing in homeowner
 
platforms,
such as
Houzy
and
Brixel
. Furthermore, we entered
 
into a strategic partnership with ETH
 
Zurich, a Swiss Federal Institute
of Technology,
 
to promote
 
innovation
 
and
 
entrepreneurship
 
in Switzerland.
 
We
 
have also
 
continuously
 
developed
 
our
sustainability offerings, such as
UBS Mortgage Energy
, which helps
 
clients with the
 
transition to more
 
sustainable heating,
and
UBS Loan
 
Energy
, thanks
 
to which
 
clients benefit
 
from attractive
 
interest rates
 
and comprehensive
 
advice for
 
their
low-energy investment properties.
In
 
Asset
 
Management,
 
we
 
are
 
accelerating
 
our
 
investment
 
in
 
digitalization.
 
We
 
have
 
extended
 
our
 
digital
 
client
relationship
 
management pilot
 
tools,
 
technologies
 
and
 
data capabilities
 
to enhance
 
the experience
 
of, and
 
service for,
our clients, to foster innovation and
 
to support alpha generation. For example, we are
 
developing a scalable platform to
enable
 
more
 
efficient
 
development
 
and
 
management
 
of
 
theme-based
 
investment
 
products
 
to
 
meet
 
growing
 
client
demand. To simplify and enhance
 
our client service, we are introducing
 
improvements in client and data analytics.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
36
 
The
 
Investment
 
Bank
 
strives
 
to
 
be
 
the
 
digital
 
investment
 
bank
 
of
 
the
 
future,
 
with
 
innovation-led
 
businesses
 
driving
efficiencies and solutions. In 2021, we announced the creation of a
Digital Platforms
 
business area within the Investment
Bank,
 
to work on
 
transformation through innovation,
 
experimentation and external partnerships. In Global Markets, our
Technology-Enhanced
 
Sales
(TES)
 
teams
 
work
 
in
 
close
 
partnership
 
with
 
our
 
Data
 
Intelligence,
 
Chief
 
Digital
 
and
Information Office and Client Coverage teams to embed
 
our data and technology capabilities across all client teams
 
and
enhance our client service.
 
TES enables clients
 
to choose where
 
and how we deliver
 
content and uses data
 
modeling to
personalize the content they receive.
UBS Neo
, our award-winnin
 
g
 
multi-channel platform and enterprise ecosystem
 
for
digital clients, lets
 
our professional and institutional clients
 
access a comprehensive suite
 
of products and services
 
covering
the
 
full
 
investment life
 
cycle.
Investment
 
Bank
 
DigiOps
,
 
our
 
Operations
 
team working
 
in collaboration
 
with
 
the
 
Chief
Digital and Information Office on digital
 
innovation projects, is enhancing the client experience
 
through a digital platform
that continues to make progress on simplifying Operations’
 
technology infrastructure, increasing
 
front-to-back efficiency
and enhancing
 
our decision-making and
 
relevance to
 
clients. By utilizing
 
distributed ledger
 
technology,
 
Global Markets
is transforming the business
 
models of products where the Investment Bank has
 
been strong historically. One example is
 
UBS
 
key4 gold
, our
 
global
 
physical gold
 
transaction
 
network of
 
retail investors,
 
gold
 
merchants, institutional
 
investors
and
 
vault providers
 
that
 
enables
 
clients
 
to
 
buy
 
and
 
sell
 
at
 
interbank
 
prices,
 
which
 
saw
 
growth
 
in
 
2022.
 
A
 
tokenized
representation
 
of underlying
 
physical gold
 
provides
 
fractional ownership
 
with low
 
-friction
 
transactional capability.
 
Our
vision is to accelerate the tokenization
 
of financial products traded
 
by UBS clients. In November 2022,
 
we launched and
issued
 
the
 
world’s
 
first
 
digital
 
bond
 
that
 
is
 
publicly
 
traded
 
and
 
settled
 
on
 
both
 
blockchain-based
 
and
 
traditional
exchanges.
 
Global
 
Banking
 
has
 
also prioritized
 
the
 
client experience.
Global
 
Banking
 
Strategic Development
 
Lab
 
uses
data science,
 
predictive analytics
 
and
 
quantitative models
 
to develop
 
solutions for
 
our businesses.
UBS-GUARD
 
applies
data science
 
and
 
predictive analytics
 
to Global
 
Banking
 
business users,
 
predicting the
 
risk of
 
companies becoming
 
the
targets of activists, identifying deal opportuniti
 
es and helping
 
navigate client pitches.
 
Engaging with our clients
Our clients’ needs and their preferred communication channels continually evolve. Our objective is to
 
engage with clients
in
 
the
 
ways
 
most
 
convenient
 
for
 
them.
 
We
 
use
 
a
 
variety
 
of
 
channels
 
to
 
engage
 
with
 
clients,
 
including
 
regular
 
client
relationship and service meetings, as well as various
 
corporate roadshows and dedicated events. In the post-COVID “new
normal,” we
 
observe an
 
increase
 
in client
 
interaction across
 
all channels,
 
and ha
 
ve changed
 
to a mix
 
of hybrid
 
and in-
person events.
Global Wealth Management interacted
 
with clients via various settings in 2022,
 
from personalized private briefings with
subject matter
 
experts to
 
segment-specific
 
virtual and
 
in-person events
 
and large
 
-scale initiatives.
 
We utilize
 
marketing
campaigns,
 
events,
 
advertising,
 
publications
 
and
 
digital-only
 
solutions
 
to help
 
drive
 
greater
 
awareness
 
of UBS
 
among
prospective clients and reinforce trust
 
-based relationships between
 
advisors and clients.
Personal
 
&
 
Corporate
 
Banking
 
holds
 
regular client
 
events
 
(leveraging
 
a
 
number
 
of
 
formats such
 
as
 
webcasts
 
and
 
in-
person,
 
virtual or hybrid
 
events), covering a wide range of topics.
 
In 2022, we increasingly engaged with clients via
 
online
channels, such as social media, online displays and search engines, and further decreased our use of
 
traditional channels.
In Asset
 
Management,
 
we have
 
a consistent
 
program
 
of client
 
events and
 
engagement activities
 
throughout
 
the year.
These include our flagship
 
conferences, such as the annual
UBS Reserve Management Seminar
, and we held our
 
second
annual
Alternatives Conference
 
in 2022.
 
Alongside
 
this, our
 
teams continued
 
the high
 
level of
 
interaction with
 
clients
globally in 2022, facilitated by new digital tools, and our publication of macro insights and thought leadership to
 
provide
timely insights
 
into rapidly
 
evolving
 
markets. We
 
also hosted
 
a broad
 
range of
 
hybrid events,
 
including
 
our investment
series,
 
to
 
help
 
our
 
clients better
 
understand
 
market challenges
 
and
 
opportunities,
 
and
 
we
 
continued
 
to
 
engage
 
with
clients through our social media and
 
online channels.
The Investment Bank hosted
 
more than 175
 
investor conferences and educational
 
seminars globally in
 
2022, covering a
broad range
 
of macro, sector,
 
regional and
 
regulatory topics.
 
Almost all
 
of those
 
conferences were
 
held virtually.
 
More
than 40,000
 
clients took
 
part in
 
such events
 
in 2022,
 
providing insight
 
and
 
access to
 
our own
 
opinion
 
leaders, policy
makers
 
and
 
leading
 
industry
 
experts.
 
We
 
leverage
 
our
 
intellectual
 
capital
 
and
 
relationships
 
and
 
use
 
our
 
execution
capabilities,
 
differentiated
 
research
 
content,
 
bespoke
 
solutions,
 
client franchise
 
model
 
and
 
global
 
platform to
 
expand
coverage across a broad set of clients.
UBS Neo Question Bank
 
is the largest global database of market-related questions
asked by
 
professional investors,
 
while
UBS Live
 
Desk
,
built within
 
the
UBS Neo
 
platform, provides
 
clients with
 
a stream
of
 
fast-paced
 
commentary
 
from
 
UBS
 
traders.
 
Our
 
clients’
 
needs
 
and
 
their
 
preferred
 
communication
 
channels
 
have
continued
 
to
 
evolve. Our
 
objective
 
is
 
to
 
engage
 
with
 
clients
 
in
 
the
 
manner
 
most
 
convenient
 
for
 
them.
 
Following
 
the
pandemic, we have observed an
 
increase in client interaction through
 
all channels, both digital and in-person
 
.
 
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
37
 
How we measure client satisfaction
We use multiple techniques
 
to regularly assess our achievements
 
and the satisfaction
 
of our clients.
Global Wealth
 
Management
 
is increasingly
 
using
 
technology
 
and
 
analytics capabilities
 
to collect
 
and
 
respond
 
to client
feedback. Our
 
digital
 
client
 
feedback tool
 
lets clients
 
submit,
 
via mobile
 
and
 
the web,
 
input
 
about
 
overall satisfaction
with
 
advisors
 
and
 
UBS,
 
and
 
share
 
key topics
 
they
 
wish
 
to
 
discuss
 
with
 
their
 
advisors.
 
Advisors
 
and
 
their
 
teams have
seamless, real-time access
 
to client feedback,
 
enabling them
 
to be highly
 
responsive. The
 
tool is available in
 
the US and
Asia Pacific, as well as most EMEA countries. In 2022, our client satisfaction level and net promoter score (NPS) remained
high.
Personal &
 
Corporate Banking
 
has conducted
 
annual surveys of
 
clients in Switzerland
 
since 2008,
 
consistently covering
all private and corporate client segments
 
annually since 2015.
 
Clients provide feedback on their satisfaction
 
with regard
to
 
various
 
topics
 
(e.g.,
 
UBS
 
overall,
 
branches,
 
client
 
advisors,
 
products
 
and
 
services)
 
and
 
indicate
 
further
 
product
 
or
advisory needs.
 
Survey responses
 
are distributed
 
to client advisors,
 
who follow
 
up with
 
each respondent
 
individually. In
2022,
 
our client
 
satisfaction levels
 
and
 
NPS remained
 
high, with
 
client satisfaction
 
regarding
 
mobile banking
 
at an
 
all-
time high.
The Quality
 
Feedback system in
 
Global Wealth Management and
 
Personal &
 
Corporate Banking provides a
 
comprehensive
and systematic
 
platform to
 
receive and
 
process client
 
feedback and
 
suggestions.
 
We receive
 
feedback in
 
various forms
and through
 
different client touchpo
 
ints. Client feedback,
 
including complaints
 
and suggestions,
 
is vitally important, as
it shows
 
direct and
 
unfiltered client
 
needs,
 
supports
 
the development
 
and
 
introduction
 
of new
 
products
 
and
 
services,
and, therefore, fosters the optimization of our offering in
 
a client-focused manner. By addressing client feedback, we aim
to strengthen client relationships, improve client satisfaction and make tangible improvements to our services. By sharing
their views,
 
clients contribute
 
to quality
 
improvements at
 
all levels.
 
We aim to
 
respond
 
to each individual
 
who provides
feedback. In
 
2022, key
 
topics and
 
enhancements centered
 
mostly around
 
services rendered
 
by our
 
hotlines
 
and in our
branches, cards,
 
and Digital Banking features.
In
 
Asset
 
Management,
 
we
 
have
 
an
 
integrated
 
process
 
to
 
record
 
and
 
manage
 
client
 
feedback
 
through
 
our
 
client
relationship management tool. We also conduct regular surveys, covering our wholesale and institutional clients globally,
inviting them to
 
assess their satisfaction
 
with our
 
client service, products
 
and solutions, as
 
well as other
 
factors relevant
to
 
their
 
investments.
 
The
 
results
 
are
 
analyzed
 
to
 
identify
 
focus
 
areas
 
for
 
improvement,
 
and
 
our
 
client
 
relationship
managers follow up with respondents
 
to address specific feedback where required.
The Investment Bank
 
closely monitors client
 
satisfaction
 
via individual product
 
coverage points.
 
Direct client feedback
 
is
actively
 
captured
 
and
 
tracked in
 
our
 
systems. Internal
 
regional
 
forums
 
serve as
 
a platform
 
for
 
senior
 
management
 
to
discuss
 
client
 
relationships,
 
possibilities
 
for
 
improvement,
 
potential
opportunities
 
and
 
specific
 
client
 
issues.
 
Other
processes are in place to enable
 
consolidated findings to be shared within UBS as appropriate.
 
The Investment Bank also
closely monitors external surveys, which provide feedback across a range of investment banking services. We continue to
make progress in simplifying
 
our technology infrastructure, focusing on increasing
 
front-to-back efficiency and enhancing
our decision-making
 
and relevance
 
to clients.
 
In the
 
second quarter
 
of 2022,
 
we extended
 
our Annual
 
Global Markets
Client
 
Survey
 
to
 
a
 
broader
 
population
 
looking
 
to
 
measure
 
client
 
satisfaction,
 
and
 
the
 
ease
 
and
 
frequency
 
of
 
doing
business. We
 
also looked to
 
understand the
 
key drivers of each
 
measure,
 
both to
 
refine individual coverage
 
but also
 
as
an additional input into our
 
investment and development plans. The
 
most significant drivers of client satisfaction remain
relationship
 
management
 
coverage
 
and
 
connectivity,
 
liquidity
 
and
 
competitive
 
pricing.
 
We
 
thoroughly
 
evaluate
 
the
feedback we receive, including
 
complaints from clients, and
 
take measures to address key themes identified.
 
1
Euromoney Private Banking and Wealth
 
Management Survey 2022:
 
No. 1 in ESG / Sustainable
 
Investing.
2
“Clients” refers to the number of unique
 
business relationships operated
 
by Personal Banking.
3
“Clients” refers to the number of unique
 
business relationships or
 
legal entities operated
 
by Corporate & Institutional
 
Clients.
 
 
Investors
We aim to create sustainable, long-term value for our
 
investors by executing our strategy with discipline, maintaining risk
and cost discipline, and delivering
 
attractive shareholder returns.
 
Investor base
 
Our investor
 
base is
 
well diversified.
 
A substantial
 
proportion
 
of our
 
institutional shareholders
 
are based
 
in the
 
US, the
UK and Switzerland.
›
 
Refer to the “Corporate
 
governance” section
 
of this report for
 
more information
 
about disclosed
 
shareholdings
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
38
 
Alignment of interests
We aim to align the interests of
 
our employees with those of our equity
 
and debt investors, and this approach is reflected
in our compensation philosophy
 
and practices.
›
 
Refer to “Our compensation
 
philosophy” in
 
the “Compensation”
 
section of this report
 
for more information
We are focused on driving long-term
 
growth while maintaining
 
risk and cost discipline
Our objective is
 
to generate value
 
for our shareholders
 
and clients by
 
driving long
 
-term growth. To
 
accomplish this, we
are
 
building
 
on
 
our
 
scale,
 
content
 
and
 
solutions,
 
while
 
remaining
 
disciplined
 
on
 
risk
 
and
 
costs.
 
This
 
will
 
give
 
us
 
the
capacity to invest strategically,
 
and will enable us to deliver against
 
our financial and commercial
 
targets.
Moreover, we are aiming to
 
maximize our and our
 
clients’ impact to create
 
long-term sustainable
 
value. We also have a
responsibility toward our communities and
 
employees. We have outlined selected environmental,
 
social and governance
aspirations, which should
 
support our financial and commercial targets.
Our primary measurement of performance
 
for the Group is return
 
on common equity tier 1 (CET1),
 
as regulatory capital
is our binding constraint and
 
drives our ability to return capital to shareholders.
›
 
Refer to the “Targets, aspirations
 
and capital
 
guidance” section
 
of this report
 
for more information
Active capital management
 
to enable growth and deliver
 
attractive shareholder returns
Our first priority
 
is ensuring
 
that we can
 
maintain a strong
 
balance sheet.
 
This includes our
 
strong capitalization, in
 
line
with our capital guidance of
 
maintaining a CET1 capital
 
ratio of around
 
13% and a CET1
 
leverage ratio of greater
 
than
3.7%.
As a second priority, we consider
 
opportunities for investment in growth.
Our third priority is returning capital to shareholders in the form of a progressive dividend and share buybacks. For 2022,
the Board
 
of Directors
 
is proposing
 
a dividend
 
to UBS
 
Group AG
 
shareholders of
 
USD 0.55
 
per share.
 
We also
 
bought
back USD 5.6bn of our shares.
 
Looking ahead, we intend to buy
 
back more than USD 5bn of shares
 
in 2023.
›
 
Refer to “UBS shares”
 
in the “Capital,
 
liquidity and
 
funding, and balance
 
sheet” section
 
of this report for
 
more information
Communications
Our
 
Investor
 
Relations
 
(IR)
 
function
 
is
 
the
 
primary
 
point
 
of
 
contact
 
between
 
UBS
 
and
 
our
 
shareholders.
 
Our
 
senior
management and
 
IR regularly interact
 
with institutional
 
investors, financial
 
analysts and
 
other market participants, such
as credit
 
rating
 
agencies. Clear,
 
transparent
 
and
 
relevant
 
disclosures,
 
and
 
regular direct
 
interactions
 
with existing
 
and
prospective shareholders,
 
form the basis for our
 
communications.
 
The IR team relays
 
the views of and feedback
 
on UBS
from institutional investors and
 
other market participants to our senior
 
management.
IR and
 
our Corporate
 
Responsibility
 
function work
 
together and
 
interact
 
with any
 
investors
 
interested
 
in sustainability
topics relevant to UBS and
 
wider society.
›
 
Refer to the first part
 
of the “Corporate
 
governance”
 
section of this
 
report and “Information
 
policy” in
 
that same section for
 
more
information
 
›
 
Refer to our Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
, for more information
 
 
 
 
dev_UBS_AR_2022p67i0.jpg
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
39
 
Employees
At UBS, all business is
 
personal. We are dedicated
 
to being a world-class
 
employer for talented individuals
 
across all our
markets, and
 
a place where
 
people
 
can unlock
 
their full
 
potential. We
 
want to
 
have
 
real impact. As
 
such, we
 
invest in
measures to
 
strengthen our unique
 
culture and to
 
provide a framework
 
for employee
 
growth and well-being
 
as part of
our overarching people-management
 
approach.
 
 
Deliver on our purpose and culture
Everything we do as a
 
firm starts
 
with our purpose. It is
 
why we do what
 
we do, and, in
 
this respect, our culture is
 
decisive
in achieving
 
our ambitions,
 
and is grounded in
 
our three keys
 
to success:
 
our
Pillars, Principles
 
and
Behaviors
. We
 
therefore
engage
 
with
 
our
 
employees
 
and
 
seek
 
to
 
build
 
an
 
even
 
more
 
diverse
 
and
 
inclusive
 
organization.
 
Likewise,
 
embracing
flexibility and
 
agile ways of
 
working and our
 
intentional focus
 
on simplification and
 
efficiency support
 
a transformation
that will generate significant benefits for our
 
clients and for our employees
 
.
In our global
 
employee experience
 
survey conducted in
 
spring 2022,
 
92% of
 
respondents indicated
 
that they
 
were familiar
with our purpose.
 
In 2022, we therefore sought
 
to ensure that we are living up
 
to our purpose by
 
bringing it to life and
driving it deeply
 
into our daily
 
business and people
 
-management processes.
 
Our Leadership Summit
 
has been
 
pivotal in
that respect. Senior leaders engaged with and were aligned to our purpose and strategy, thereby
 
making those concepts
more tangible within their teams and accelerating
 
our transformation. They also
 
participated in training to discover their
own purpose and to connect it to the
 
firm’s performance opportunities.
 
We will have an ong
 
oing focus on the topic.
›
 
Refer to “A firm driven
 
by purpose”
 
at the beginning
 
of this report for
 
more information
 
about our purpose
 
and culture
Build a diverse, equitable and
 
inclusive workplace
We live
 
a culture
 
of belonging,
 
where
 
everyone can
 
thrive.
 
In practical
 
terms, we
 
seek
 
to hire
 
individuals with
 
diverse
skills,
 
perspectives
 
and
 
experiences,
 
to
 
provide
 
visibility
 
and
 
opportunities,
 
and
 
to
 
create
 
an
 
inclusive
 
culture
 
where
employees feel recognized and
 
valued.
 
As a member of The Valuable 500,
 
a global business collective,
 
we are committed to taking action on disability inclusion.
We have improved the physical accessibility
 
of many of our locations in 2022, increased digital
 
accessibility for clients and
employees, and provided
 
support for our disability-focused employee networks
 
to increase their visibility
 
and impact.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
40
 
In 2020,
 
we outlined
 
our intention
 
to increase
 
our female
 
and
 
ethnic
 
minority
 
representation,
 
especially
 
in leadership
positions, and we are making
 
progress toward these aspirations. For example,
 
we aim to have
 
30% of Director and above
roles globally
 
held by
 
women by
 
2025. At
 
the end
 
of 2022,
 
that figure was
 
27.8%, up
 
from 26.7%
 
in 2021. Similarly,
our 2025 aspiration is to have 26% of Director and above roles in the US and the UK held by ethnic minority employees.
This figure was 20.4% in
 
the US and 23.0% in the UK
 
as of the end of 2022.
 
›
 
Refer to our Diversity, Equity
 
and Inclusion Report
 
2022, which
 
will be available in
 
the second quarter
 
of 2023 at
ubs.com/diversity
, for more details
Pay our people fairly and equitably
Fair and consistent pay practices are designed to ensure employees are appropriately rewarded for their contribution. We
pay for performance, and we take pay equity seriously. We’ve embedded clear commitments in our global compensation
policies and
 
practices, and
 
we regularly
 
conduct internal
 
reviews and
 
external audits
 
as quality
 
checks. Since
 
2020,
 
we
have been
 
certified under
 
the EQUAL-SALARY
 
Foundation standards
 
for our
 
human resources
 
practices in Switzerland,
the US, the UK, the
 
Hong Kong
 
SAR and Singapore,
 
covering more than two-
 
thirds of our global
 
employee population.
Our global
 
human resources
 
policies and standards
 
,
 
including reward,
 
performance management and
 
promotion,
 
from
hiring
 
through
 
retirement,
 
are
 
reviewed
 
annually
 
to
 
further
 
improve
 
our
 
approach
 
and
 
processes.
 
Our
 
processes
 
are
global,
 
and we apply the same standards
 
across all our locations.
Listen to and appreciate employees
Key to bringing our purpose to life is listening to employees and acting on the things that matter to them. As part of our
employee
 
listening
 
strategy,
 
we
 
conduct
 
regular
 
Group-wide,
 
focused
 
and
 
employee
 
life
 
cycle surveys.
 
Those
 
surveys
measure indicators
 
such as
 
strategic alignment,
 
employee experience
 
and
 
well-being,
 
collaboration,
 
innovation,
 
career
development and line
 
manager effectiveness. We implement
 
improvement measures on firm-wide,
 
divisional and regional
levels and use survey results to create future
 
culture-building
 
initiatives.
Employee recognition continued to be a priority
 
in 2022, as appreciation brings teams together and increases employees’
motivation
 
and
 
engagement.
 
In
 
particular,
 
our
 
Group
 
Franchise
 
Awards
 
program
 
rewards
 
employees
 
for
 
promoting
innovation
 
and
 
cross-divisional collaboration.
 
A linked
 
idea-sharing
 
platform helps
 
employees
 
collaborate on
 
solutions
for various operational, client service
 
and sustainability challenges. Furthermore,
 
our peer-to-peer appreciation program,
called Kudos, encourages
 
employees to recognize colleagues’ exemplary behavior, with more
 
than 424,000 recognitions
awarded in 2022
 
alone.
Attract employees with the
 
right capabilities and support their
 
development
 
Connecting
 
people with
 
ideas and
 
opportunities
 
starts with
 
our employees.
 
In 2022,
 
we
 
continued
 
to focus
 
on hiring
diverse individuals with strong
 
potential, along with the right capabilities and
 
agile mindset. These
 
qualities enable us to
deliver innovative and
 
personalized products
 
to clients faster,
 
and in a
 
more connected way.
 
We hired a total
 
of 12,693
external
 
candidates
 
in
 
2022,
 
including
 
more than
 
1,900
 
graduates
 
and
 
trainees,
 
apprentices and
 
interns
 
through
 
our
junior talent
 
programs
 
worldwide. We
 
actively support
 
multi-year apprenticeship
 
programs in
 
Switzerland and
 
the UK,
along
 
with
 
summer
 
internship
 
programs
 
in
 
numerous
 
locations.
 
In
 
2022,
 
for
 
the
 
14th
 
consecutive
 
year,
 
UBS
 
was
recognized among the top
 
50 of the World’s Most Attractive Employers by employer-branding
 
expert Universum.
 
Personnel by region
As of
% change from
Full-time equivalents
31.12.22
31.12.21
31.12.20
31.12.21
Americas
21,819
21,317
21,394
2
of which: USA
21,032
20,537
20,528
2
Asia Pacific
16,489
15,618
15,353
6
Europe, Middle East and Africa (excluding
 
Switzerland)
14,342
14,091
13,899
2
of which: UK
6,234
6,051
6,069
3
of which: rest of Europe (excluding Switzerland)
7,823
7,826
7,652
0
of which: Middle East and Africa
285
215
178
33
Switzerland
19,947
20,359
20,904
(2)
Total
72,597
71,385
71,551
2
 
Drive career growth
 
We want
 
our employees to
 
be able
 
to build long
 
and successful
 
careers. It starts
 
with our senior
 
leaders and line
 
managers,
all of
 
whom
 
are
 
expected
 
to
 
invest
 
in
 
their employees’
 
development
 
and
 
to
 
inspire
 
excellence.
 
We
 
take
 
a
 
systematic
approach to talent management, conducting annual talent
 
reviews that look at
 
our succession planning needs along with
individual
 
employees’
 
contributions,
 
abilities
 
and
 
future
 
potential.
 
Supporting
 
this
 
is
 
our
 
innovative
 
Career
 
Navigator
platform. It offers a
 
wide range
 
of self-service tools
 
and resources,
 
including mentorship
 
and networking opportunities,
career path
 
and
 
training
 
guidance,
 
access to
 
short-term
 
rotations
 
and
 
internal
 
mobility resources.
 
To date,
 
more than
7,000 people have shared their skills, enabling colleagues or internal
 
recruiters to approach them directly for their
 
subject
matter expertise.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
41
 
Our in-house UBS University plays a central
 
role in both skill
 
-
 
and culture-building. Our
 
broad offering includes
 
business,
leadership
 
and
 
line
 
manager
 
education
 
along
 
with
 
training
 
on
 
digitalization,
 
data
 
literacy,
 
agile
 
working,
 
diversity,
inclusion
 
and personal
 
well-being,
 
among other
 
topics. Launched
 
in June
 
2022, our
 
new learning
 
experience platform
offers AI-powered training recommendations based on employees’
 
unique needs and interests. We invested USD 78m in
training in 2022, and our
 
permanent employees completed more than 1,327,000 learning
 
activities, including mandatory
training, for an average of two training
 
days per employee.
Work smarter
Driven by our
 
strategic imperatives and
 
evolving client needs,
 
we continued
 
to embrace new ways
 
of working together
in
 
2022.
 
In
 
particular,
 
we
 
accelerated
 
our
 
transition
 
to
 
agile
 
ways
 
of
 
working,
 
with
 
approximately
 
18,500
 
employees
across the firm working in agile teams as of
 
year-end. In this setup, pods
 
of specialists
 
with end-to-end responsibility are
empowered
 
to
 
achieve
 
better
 
results,
 
and
 
more
 
quickly,
 
than
 
in
 
traditional
 
project
 
structures.
 
A
 
number
 
of
 
tailored
measures
 
supported
 
the
 
transition,
 
including
 
the development
 
of
 
one
 
consistent
 
agile model
 
and
 
specialized
 
training
delivered through the
 
Agile Academy within our UBS University.
Comprehensive workforce data dashboards
 
help us analyze all aspects of the employee
 
life cycle, including
 
recruitment,
internal mobility and
 
attrition. These
 
tools enable us to
 
identify trends
 
and make workforce decisions
 
based on
 
relevant
HR data.
Focus on impact and outcome
Our performance management approach
 
(
MyImpact
), which considers both
 
contribution and
 
behavior, supports a high-
performance
 
culture
 
while
 
simplifying
 
our
 
performance
 
management
 
and
 
feedback
 
processes.
 
It features
 
aspirational
objectives
 
with
 
outcomes
 
aligned
 
to
 
strategic priorities,
 
continuous
 
feedback
 
and
 
transparent
 
year-end decisions
 
that
support
 
pay-for-performance
 
principles.
 
Line
 
managers
 
play
 
a
 
key
 
role
 
in
 
the
 
quality
 
of
 
our
 
approach.
 
In
 
2022,
 
we
introduced
 
an
 
integrated
 
feedback
 
app
 
called
Feedback
 
365
,
 
which
 
allows
 
employees
 
to
 
easily
 
give
 
and
 
receive
meaningful feedback throughout
 
the year.
Foster a supportive workplace community
We are committed
 
to meeting employees’
 
needs and supporting
 
their overall well-being.
 
Hybrid-working arrangements
enable
 
many
 
employees
 
to
 
work
 
at
 
home
 
several
 
days
 
a
 
week,
 
with
 
agreed
 
in-office
 
days
 
to
 
support
 
collaboration.
Additionally,
 
starting with
 
Global Wealth
 
Management
 
in the
 
US, a
 
new
 
virtual worker
 
framework launched
 
in March
2022
 
will enable
 
eligible US
 
employees to
 
work
 
entirely remotely.
 
These measures,
 
along
 
with options
 
such as
 
flexible
hours, part-time working,
 
job sharing and
 
partial retirement, will help us attract
 
and retain top talent while
 
making us a
stronger, more dynamic company.
Having seen the
 
positive impact, we
 
further expanded our
 
employee health and
 
well-being offering in 2022. This included
a suite of
 
programs, benefits
 
and workplace
 
resources, along
 
with a bespoke
 
eLearning curriculum, that
 
aimed to help
our
 
employees manage
 
their health,
 
foster well-being,
 
strengthen
 
their resilience
 
and
 
support the
 
sustainability of
 
the
organization. We also sponsored
 
virtual fitness challenges and mental health initiatives
 
in all regions.
›
 
Refer to our Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
, for more information
 
about our
workforce, our people
 
management
 
approach and relevant
 
data
 
 
Society
The
 
world’s
 
social and
 
environmental
 
problems
 
are
 
too big
 
and
 
complex to
 
tackle alone.
 
Lasting
 
change
 
can
 
only
 
be
achieved
 
when
 
philanthropists
 
and
 
public and
 
private organizations
 
work
 
collectively to
 
maximize
 
positive
 
impact
 
for
people and the planet.
Our clients can
 
maximize the positive
 
effect of their
 
giving through
 
our diverse
 
social impact offering:
 
UBS Philanthropy
Services, the grant-making UBS
 
Optimus Foundation network,
 
UBS Global Visionaries and
 
UBS Community Impact.
Reimagining client philanthropy
With more
 
than 100
 
social impact
 
and
 
philanthropy
 
staff
 
around
 
the globe,
 
we help
 
clients
 
to maximize
 
their impact
locally,
 
nationally and globally.
 
We have partnered for more than two decades
 
with clients and their families by using an
investment-based approach
 
and connecting them to an
 
international network of expertise and support.
To best serve our clients, we base our approach
 
on three pillars: Advice, Insights and Execution.
Advice
 
– consulting with
clients who are considering setting
 
up their first
 
charitable fund and guiding them
 
on tax-efficient giving, thus
 
maximizing
the value of
 
charitable giving.
Insights
 
– connecting our
 
clients to a global
 
network of experts,
 
both within
 
and outside
UBS
 
(e.g.,
 
through
 
insight
 
trips,
 
publications
 
and
 
events
 
with
 
fellow
 
philanthropists,
 
thought
 
leaders
 
and
 
social
entrepreneurs,
 
such
 
as UBS
 
Global
 
Visionaries).
Execution
 
–
 
providing
 
clients with
 
flexible options
 
for
 
managing
 
their
philanthropic giving, including structures
 
such as
 
donor-advised funds
 
(DAFs), outcomes financing,
 
emergency relief funds
and our
UBS Collectives
, and supporting curated p
 
rograms via the UBS Optimus Foundation
 
network.
 
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
42
 
Donor-advised funds
A DAF offers clients an easy,
 
flexible and efficient alternative to setting
 
up their own foundation and can be managed
 
in
line with their usual investment
 
approach. Their
 
charitable donations can be
 
invested within the parameters
 
they select,
such as capital, growth or income,
 
so they can grow their fund to give grants at a later date. UBS offers
 
these services in
Switzerland, Singapore
 
and the UK, with USD 249m in
 
donations in 2022.
UBS Optimus Foundation
UBS Optimus Foundation
 
is a network of foundations globally
 
that connects clients with inspiring
 
programs designed
 
to
make
 
a
 
measurable,
 
long-term
 
difference.
 
It has
 
a
 
20-year
 
track
 
record
 
and
 
is
 
recognized
 
globally
 
as
 
a
 
philanthropic
thought leader and is focused on
 
incubating impact ventures, scaling impact through
 
partnerships and achieving impact
transparency.
 
The
 
network
 
is
 
a
 
pioneer
 
in
 
the
 
social
 
finance
 
space,
 
through
 
which
 
we
 
leverage solutions
 
to
 
mobilize
private
 
capital
 
in
 
new
 
and
 
more
 
efficient
 
ways.
 
It
 
conducts
 
extensive
 
due
 
diligence
 
and
 
only
 
recommends
 
programs
considered to have the capacity to achieve long-term, measurable impact. UBS also makes matching contributions to the
network,
 
to help our clients’ donations
 
go even further.
Collective impact
The
UBS Collectives
 
also utilize an evidence-based approach and bring together philanthropists to pool their funds, share
their
 
expertise
 
and
 
achieve
 
a
 
longer-term
 
impact.
 
The
Collectives
 
are
 
a
 
three-year
 
learning
 
journey
 
during
 
which
philanthropists
 
follow
 
a
 
curriculum, network
 
with
 
peers
 
and
 
engage
 
in programs
 
with
 
the
 
goals
 
of
 
preventing
 
family
separation, mitigating climate change and funding programs linked to measurable results. In 2022, USD 4.8m in funding
was raised for this long-term, systems-
 
level change approach
 
.
Emergency relief
In response
 
to urgent relief eff
 
orts, in 2022
 
UBS raised more
 
than USD
 
25m for the
 
Ukraine Relief Fund,
 
with matched
funding from UBS
 
and XTX Markets bringing the total to more
 
than USD 50m. Over half the funds
 
have been disbursed
to 14 partners providing
 
relief, recovery and
 
resilience services.
 
In 2022,
 
we also launched our Pakistan Relief
 
Fund with
our partners Americares and The Citizens Foundation,
 
which raised USD 1.2m, including UBS matching contributions,
 
to
provide both response
 
and recovery efforts.
UBS Global Visionaries
Through
 
our UBS Global
 
Visionaries program,
 
we aim to
 
create opportunities for clients
 
and prospective clients
 
to connect
with
 
leading
 
social
 
entrepreneurs,
 
and
 
help
 
entrepreneurs
 
focusing
 
on
 
social
 
and
 
environmental
 
issues
 
increase
 
their
impact by expanding
 
their network, building capacity
 
and raising awareness
 
of their work.
 
Since the program started
 
in
2016, we have onboarded
 
and helped 68 entrepreneurs to
 
accelerate their impact.
A third-party evaluation
1
 
conducted in 2022 found that 88% of those entrepreneurs said the
 
program had had a positive
influence
 
on
 
expanding
 
their networks,
 
with
 
68%
 
creating
 
partnerships
 
from
 
it,
 
64%
 
agreed
 
that
 
we
 
had
 
increased
awareness of critical global issues and their
 
solutions, 51% agreed that the
 
program had helped them build skills
 
valuable
to delivering their mission, and
 
48% felt that the program had influenced their fundraising efforts.
 
We have also started
to evaluate
 
how
 
we can
 
maximize the
 
role of
 
the program
 
in terms
 
of the
 
impact of
 
Global Visionaries
 
on
 
the United
Nations Sustainable Development Goals.
 
In 2022, 27% noted
 
this benefit.
1
 
UBS Community Impact
At UBS, we seek to have
 
an impact in local
 
communities. We
 
have a strategic focus
 
on education and
 
the development
of
 
skills,
 
as
 
we
 
believe
 
these
 
topics
 
are
 
where
 
our
 
resources
 
can
 
make
 
the
 
most
 
impact.
 
We
 
believe
 
our
 
long-term
investment in
 
these subjects
 
is central to furthering
 
the economic and
 
social inclusion
 
of those we support
 
through our
activities.
With our
 
Community
 
Impact
 
program,
 
we focus
 
on
 
helping
 
young
 
people
 
and
 
adults to
 
learn and
 
develop
 
skills.
 
We
deliver on our commitment through
 
strategic financial support and employee volunteering
 
that will address social issues
to help further their economic and
 
social inclusion. Through
 
our Community Impact program, in
 
2022,
 
we:
–
 
supported 370,916 young people and adults in learning and
 
developing skills – our aim is
 
to support 1.5 million young
people and adults by 2025;
–
 
engaged 34% of our global
 
workforce in volunteering.
Direct
 
cash
 
contributions
 
from
 
the
 
firm,
 
including
 
support
 
through
 
our
 
Community
 
Impact
 
program,
 
UBS’s
 
affiliated
foundations in Switzerland and the UBS Foundation of Economics
 
in Society at the
 
University of Zurich, and contributions
to the UBS Optimus Foundation
 
network, amounted to a total of USD
 
76m in 2022.
UBS’s
 
overall
 
charitable
 
contributions
 
are
 
measured
 
using
 
the
 
industry-leading
 
Business
 
for
 
Societal
 
Impact
 
(B4SI)
framework. This includes cash, employee time
 
and in-kind supp
 
ort.
›
 
 
Refer to the “Social”
 
section of our
 
Sustainability Report
 
2022, available
 
under “Annual
 
reporting” at
ubs.com/investors
, for more
information
 
1
 
E
valuation led by Wasafiri Consulting in October
 
2022, based on survey results from 71% (44) of our 62
 
UBS Global Visionaries and
 
alumni at the time.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
43
 
Our focus on sustainability and climate
Our commitment to sustainability
 
starts with our purpose.
 
We know finance has a powerful
 
influence on the world and
we recognize that investments can help
 
create a better world for everyone: a
 
fairer society, a more prosperous
 
economy
and a healthier environment.
 
That is why
 
we partner with
 
our clients to help
 
them mobilize their capital
 
toward a more
sustainable world
 
and why
 
we have put
 
sustainability at the
 
heart of
 
our purpose.
 
We are guided
 
by the goal
 
of being
the financial
 
provider of
 
choice for
 
clients that
 
want to
 
mobilize capital
 
toward
 
the achievement
 
of the
 
United Nations
Sustainable Development Goals (the SDGs)
 
and the orderly transition
 
to a low-carbon economy.
Our Code of Conduct and Ethics
In our Code of Conduct and Ethics (the
 
Code), the Board of Directors (the BoD) and the Group Executive Board (the GEB)
set out
 
the principles
 
and
 
practices
 
that define
 
our ethical
 
standards
 
and
 
the way
 
we do
 
business,
 
which
 
apply to
 
all
aspects of our
 
business. All employees
 
must affirm annually
 
that they have
 
read and
 
will adhere
 
to the Code
 
and other
key policies, supporting a culture where ethical and responsible behavior is part of our everyday operations. In our Code,
we make a commitment to
 
acting with the long term in
 
mind and creating value for clients, employees and shareholders.
We
 
aspire
 
to
 
do
 
our
 
part
 
in
 
creating
 
a
 
fairer,
 
more
 
prosperous
 
society,
 
championing
 
a
 
healthier
 
environment
 
and
addressing inequalities at their root. This ethos underpins our purpose and is in line
 
with our external
 
commitments, such
as our
 
pledge to help
 
making progress
 
toward the SDGs.
 
Following a substantial
 
review in
 
2021, we made
 
only limited
changes to the Code
 
in 2022, mainly pertaining to clarifications, simplifications
 
and alignment of language
 
.
›
 
Refer to the Code
 
of Conduct
 
and Ethics of UBS,
 
available at
ubs.com/code
, for more information
Our sustainability and impact
 
governance
Sustainability activities,
 
including
 
climate, are
 
overseen
 
at
 
the highest
 
level of
 
UBS,
 
by the
 
BoD
 
and
 
the GEB,
 
and
 
are
grounded in our
 
Code.
›
 
Refer to our Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
, for more information
 
about our
sustainability and
 
impact governance
Board of Directors and
 
Group Executive Board
The BoD
 
is responsible
 
for setting UBS’s
 
values and
 
standards
 
for the purpose
 
of ensuring that
 
the Group’s
 
obligations
to stakeholders are met. Both the Chairman of
 
the BoD and the Group CEO play key
 
roles in safeguarding our reputation
and ensuring
 
we communicate effectively
 
with all
 
of our
 
stakeholders.
 
The BoD’s
 
Corporate Culture
 
and Responsibility
Committee (the
 
CCRC) is
 
the UBS body primarily
 
responsible
 
for corporate culture,
 
responsibility and
 
sustainability.
 
The
CCRC oversees our sustainability and impact strategy
 
and key activities across environmental
 
and social topics, including
climate, nature
 
and
 
human
 
rights. Annually,
 
it
 
considers and
 
approves
 
our firm’s
 
sustainability
 
and
 
impact objectives.
During its
 
six meetings
 
throughout
 
the course of
 
the year,
 
the CCRC
 
also reviews
 
the GEB’s
 
activities in
 
executing our
climate strategy,
 
including
 
our net-zero
 
targets, and,
 
jointly with
 
the BoD’s
 
Risk Committee,
 
evaluates the
 
progress
 
of
our climate risk program. All BoD
 
committees have environmental, social
 
and governance (ESG)-related responsibilities
 
.
The
 
Group
 
CEO
 
has delegated
 
to the
 
GEB Lead
 
for
 
Sustainability and
 
Impact, Suni
 
Harford,
 
the responsibility
 
to
 
lead
reviews of the
 
firm’s sustainability
 
and impact
 
strategy and
 
related objectives,
 
in agreement
 
with fellow
 
GEB members,
and to propose strategy and objectives to the CCRC. The GEB Lead for Sustainability and Impact also co-chairs the firm’s
cross-divisional
 
and
 
cross-functional
 
Sustainability
 
and
 
Climate
 
Task
 
Force,
 
which
 
oversees
 
the
 
implementation
 
of
 
the
firm’s sustainability activities
 
and its climate action
 
plan, including its net
 
-zero program. We manage
 
these annual plans
and goals through our
 
ISO 14001-certified environmental management system,
 
with management accountabilities across
our firm. Senior representatives
 
from across our firm,
 
including from the business divisions,
 
Risk, Compliance and Finance,
attend the task force’s regular meetings.
 
The
 
GEB
 
also
 
resolves
 
overarching
 
matters
 
relating
 
to
 
sustainability
 
and
 
climate
 
risks,
 
including
 
risk
 
management
framework, policies, and disclosure
 
.
 
›
 
Refer to “Board of
 
Directors” in the “Corporate
 
governance”
 
section of this
 
report for more information
 
about the CCRC
Group Sustainability
 
and Impact
The Group Sustainability and Impact (GSI) organization supports the GEB Lead for Sustainability
 
and Impact with carrying
out
 
her
 
responsibilities.
 
GSI
 
consists
 
of
 
the
 
Chief
 
Sustainability
 
and
 
Social
 
Impact
 
offices,
 
headed
 
by
 
the
 
Chief
Sustainability
 
Officer
 
(the
 
CSO)
 
and
 
the
 
Head
 
Social
 
Impact,
 
respectively.
 
The
 
CSO
 
is
 
responsible
 
for
 
driving
 
the
implementation
 
of the
 
Group-wide
 
sustainability
 
and
 
impact strategy,
 
including
 
reporting
 
on
 
our progress
 
toward
 
net
zero (and the execution thereof by the business divisions and Group Functions). The Head Social Impact is
 
responsible for
driving and implementing our social impact strategy, including Community Impact, Philanthropy Services and UBS Global
Visionaries. Progress toward
 
the firm’s sustainability and impact strategy and associated
 
targets is reviewed at least once
a year by the GEB and the CCRC.
›
 
Refer to our Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
, for more information
 
about our
sustainability and
 
impact governance
 
 
 
dev_UBS_AR_2022p72i0.gif
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
44
 
Our sustainability and impact
 
strategy
To
 
help
 
us maximize
 
our impact,
 
we focus
 
on
 
three key
 
areas to
 
drive the
 
sustainability
 
transition:
 
planet, people
 
and
partnerships.
–
 
Planet:
Climate is a clear focus for us as we
 
shift toward a lower-carbon future. We have committed to
 
achieving net-
zero greenhouse gas (GHG)
 
emissions from across our business
 
by 2050.
–
 
People
: We
 
believe in
 
a
 
diverse,
 
equitable and
 
inclusive
 
society.
 
We are
 
taking action
 
to get
 
there, within
 
our own
workplace and beyond
 
.
–
 
Partnerships
: By working
 
in partnership
 
with other thought
 
leaders and
 
standard setters,
 
our goal
 
is to drive
 
change
at a global scale.
›
 
Refer to our Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
, for more information
 
about
how UBS is advancing
 
sustainability in
 
the financial sector
 
and beyond
Our approach to climate
 
and nature
Our climate strategy covers two main areas:
 
managing climate-related financial
 
risks and acting for a low
 
-carbon future.
Underpinning these two areas
 
are four strategic pillars.
 
We understand
 
the deep
 
interrelationships
 
that exist
 
between
 
climate and
 
nature.
 
Our climate
 
strategy,
 
including
 
our
ambition to achieve net zero, also
 
forms part of our approach
 
toward managing nature
 
-related risks and opportunities.
 
›
 
Refer to our Climate
 
and Nature Report
 
2022, available at
ubs.com/gri
, for a full description
 
of UBS’s approach to climate
 
and
nature
Our approach to sustainable finance
As a
 
global financial institution,
 
we have a
 
role in
 
helping clients
 
direct capital
 
toward the
 
SDGs. Our clients
 
turn to us
for advice on how they can help finance the transition to a low-carbon economy, support
 
sustainable finance, align their
investments
 
with
 
their
 
personal
 
values
 
and
 
better
 
risk
 
manage
 
their
 
portfolios
 
and
 
businesses.
 
They
 
want
 
to
 
take
advantage of these opportunities,
 
while also managing the risks associated
 
with this transfor
 
mational challenge.
During a year of global geopolitical and economic upheaval,
 
sustainability and sustainable finance remained strategically
important topics for UBS and
 
many of our clients, with a focus on two
 
key areas:
–
 
the implementation
 
of strategic sustainability
 
commitments, for
 
example reaching
 
net-zero GHG
 
emissions across
 
all
our activities by 2050, and
 
–
 
the ongoing evolution of
 
regulatory guidance designed to prevent
 
greenwashing.
 
 
 
dev_UBS_AR_2022p73i0.jpg
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
45
 
At UBS,
 
we want
 
to partner
 
with
 
all our
 
clients by
 
providing
 
innovative and
 
effective products
 
and
 
solutions
 
that can
support
 
them
 
in
 
their
 
sustainability
 
transition
 
and
 
deliver
 
on
 
their
 
commitments,
 
where
 
that
 
is
 
their
 
preference.
 
In
particular, we want to support innovation
 
and technological progress
.
 
›
 
Refer to our Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
, for more information
 
about our
sustainability and
 
impact strategy
 
and activities
Defining sustainable finance
It is
 
important to set
 
out how we
 
define sustainable finance,
 
as at
 
present there is
 
no global, uniformly
 
accepted definition.
At UBS,
 
sustainable finance means any financial product or service (including both investing and financing solutions) that
aims to explicitly
 
align with
 
and /
 
or contribute to
 
sustainability-related
 
objectives, while
 
targeting market-rate
 
financial
returns.
 
Sustainability outcomes can occur across
 
a range of topics including goals
 
defined using a reference framework, such as
the SDGs in the United Nations 2030 Agenda for Sustainable Development.
 
As an example, a sustainable investment (SI)
product could invest in
 
companies whose transition
 
plans are aligned with
 
the goal of limiting
 
global warming
 
to 1.5°C
compared with the pre-industrial age
 
or invest with the goal of
 
encouraging companies to adopt
 
such plans.
Our definition is also reflected in our Group’s SI framework, which specifically defines “sustainability focus” and “impact
investing”
 
products. Both
 
categories reflect
 
a defined
 
and explicit
 
sustainability intention
 
of the
 
underlying
 
investment
strategy. This intentionality differentiates them
 
from more “traditional“ investment
 
products, or those
 
that consider ESG
aspects
 
but
 
do
 
not
 
actively
 
and
 
explicitly
 
pursue
 
any
 
specific
 
sustainability
 
objective,
 
such
 
as
 
ESG
 
integration-
 
or
exclusions-only approaches.
 
Identifying opportunities
UBS has a
 
global and
 
diversified business model.
 
Each client
 
has specific and
 
differentiated sustainable financing, investing
and /
 
or advisory needs.
 
Leveraging the deep
 
expertise of our
 
experienced teams,
 
we work
 
hard to
 
service those needs
in the best
 
way possible.
 
While their needs
 
are diverse,
 
our interactions
 
with our
 
clients follow
 
an established
 
rationale
that starts by building an understanding of the relevance of sustainability for
 
their business and / or investment portfolio.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
dev_UBS_AR_2022p74i0.gif
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
46
 
 
Sustainable investment
In 2022,
 
we made
 
progress
 
on
 
a number
 
of important
 
investment
 
product
 
initiatives
 
relevant
 
to a
 
broad
 
spectrum of
clients across our business
 
areas. For example:
 
–
 
we
 
made
 
it easier
 
for
 
private
 
clients to
 
access
 
SI
 
products
 
and
 
services, suited
 
to
 
their individual
 
preferences,
 
e.g.,
through
 
expanded
 
access
 
to
 
our
 
Advice
 
SI
 
and
 
separately
 
managed
 
account
 
(SMA)
 
solutions,
 
and
 
new
 
targeted
sustainable and
 
impact offerings.
 
In line with
 
EU regulations
 
for clients in
 
scope thereof,
 
UBS systematically captures
clients’ preferences when it comes to
 
SI;
 
–
 
we
 
expanded
 
the range
 
of sustainable
 
and
 
impact funds
 
in public
 
and
 
private markets
 
and
 
exchange-traded
 
funds
available to private, institutional
 
and corporate clients;
 
and
–
 
we
 
continued
 
to
 
provide
 
customized,
 
tailored,
 
and
 
structured
 
investment
 
solutions
 
for
 
private
 
and
 
institutional
investors.
 
›
 
Refer to our Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
, for more information
 
about our
sustainable investing
 
and financing offering,
 
including financing
 
solutions, advisory,
 
and research and
 
insights
Sustainable financing
We develop
 
financing solutions
 
to help
 
our clients
 
transition
 
to a
 
more sustainable
 
future.
 
These solutions
 
can be
 
on-
balance sheet
 
(e.g., green
 
or sustainable
 
loans and
 
mortgages) or
 
off-balance sheet
 
(such as
 
access to debt
 
and equity
capital markets),
 
and also
 
include transaction
 
structuring.
 
Highlights in
 
2022
 
included: our
 
Investment Bank facilitating
USD 48bn of green, social, sustainability and
 
sustainability-linked (GSSS) bonds
 
financing through 77
 
bond deals for our
clients, with
 
a market-leading
 
share of
 
the Swiss franc
 
GSSS bond
 
market; our
 
Personal &
 
Corporate Banking
 
business
launching both
UBS Mortgage Energy
 
and
UBS Loan Energy
, the former
 
to encourage private clients
 
to replace their fossil
fuel heating, either
 
with a more
 
sustainable alternative or by
 
installing a photovoltaic
 
system, and the
 
latter being specially
designed
 
for
 
energy-efficient
 
investment
 
properties.
 
Clients
 
benefit
 
from
 
attractive
 
interest
 
rates
 
and
 
comprehensive
advice
 
for
 
their
 
low-energy
 
properties.
 
In
 
December
 
of
 
2022,
 
UBS
 
adopted
 
guidelines
 
providing
 
an
 
internal
 
global
standard
 
for
 
all our
 
products
 
in
 
the categories
 
of
 
sustainable
 
lending,
 
sustainable
 
bonds
 
and
 
GHG
 
emissions
 
trading.
During the course of 2023,
 
UBS expects to (re-)assess all its products
 
against these guidelines.
 
Sustainable investments
For the year ended
% change from
USD bn, except where indicated
31.12.22
31.12.21
31.12.20
31.12.21
Sustainable investments
1
Sustainability focus
2
246.9
222.7
127.7
10.9
Impact investing
3
20.7
28.5
13.1
(27.4)
Total sustainable investments
4,5
267.6
251.2
140.8
6.5
SI proportion of total invested
 
assets (%)
6.8
5.5
3.4
UBS total invested assets
3,957.2
4,596.2
4,187.2
(13.9)
1
We focus our sustainable investment reporting
 
on those investment strategies exhibiting
 
an explicit sustainability intention.
 
2
 
Strategies that have explicit sustainable intentions
 
or objectives that drive the strategy.
Underlying investments
 
may contribute
 
to positive
 
sustainability outcomes
 
through products
 
/ services /
 
use of proceeds.
 
Examples include
 
Global Wealth
 
Management’s
 
discretionary
 
Manage SI mandate
 
solutions
and Asset
 
Management’s
 
strategies
 
such as
 
its Global
 
Sustainable
 
Equities product.
 
3
Strategies that
 
have explicit
 
intentions of
 
generating
 
measurable,
 
verifiable
 
and positive
 
sustainability
 
outcomes.
 
Impact
generated is attributable
 
to investor
 
action and /
 
or contributions.
 
Examples include
 
Global Wealth
 
Management’s
 
Oncology Impact
 
funds and
 
Asset Management’s
 
UBS Engage for
 
Impact or
 
UBS Climate
 
Action
funds.
 
4
In 2022, UBS
 
converted funds to the sustainability focus and impact investing categories, in line with corresponding changes to the funds’ underlying investment policies. The main impact was on sustainability
focus and impact
 
investing strategies
 
in Asset
 
Management of USD
33bn. Further,
 
we aligned
 
the Global Wealth
 
Management and
 
Personal &
 
Corporate Banking
 
reporting of UBS
 
funds and mandates
 
products to
the Asset
 
Management categorization
 
with an
 
impact on
 
sustainable investments
 
of USD
20bn.
 
5
 
In 2022,
 
methodology changes
 
related to
 
the application
 
of the Group
 
SI framework
 
resulted in
 
a decrease
 
in
invested assets of USD 10bn
 
across total sustainable investments.
 
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
47
 
In line with global market developments, at UBS
 
,
 
we continue to grow SI assets under management
 
(AuM) as a share
 
of
total AuM,
 
reaching
 
6.8%
 
by the
 
end
 
of 2022,
 
compared
 
with
 
5.5%
 
at the
 
end
 
of
 
2021.
 
As of
 
31 December
 
2022,
UBS’s SI assets (sustainability
 
focus and impact investing) were USD 268bn, compared with USD 251bn at
 
year-end 2021.
Impact investing
 
assets
 
decreased
 
to
 
USD 21bn
 
from
 
USD 29bn,
 
reflecting
 
negative
 
market performance
 
and
 
foreign
currency effects,
 
as well as methodology changes
 
.
›
 
Refer to our Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
, for more information
 
about our
sustainable investing
 
and financing offering,
 
including financing
 
solutions, advisory
 
and research and
 
insights
Managing sustainability
 
and climate risks
At UBS, sustainability
 
and climate risk is
 
defined as the
 
risk that UBS negatively
 
impacts, or is
 
impacted by, climate change,
natural capital,
 
human rights,
 
and other
 
environmental, social,
 
governance matters.
 
Sustainability and
 
climate risk
 
may
manifest as
 
credit,
 
market, liquidity
 
and /
 
or non-financial
 
risks for
 
UBS, resulting
 
in potential
 
adverse financial,
 
liability
and / or
 
reputational impacts. These
 
risks extend to
 
the value of
 
investments and may
 
also affect
 
the value of
 
collateral
(e.g., real estate).
 
Climate risks can
 
arise from either changing climate
 
conditions (physical risks)
 
or from efforts to
 
mitigate
climate change (transition
 
risks). Physical and
 
transition risks
 
from a changing
 
climate contribute
 
to a structural
 
change
across
 
economies
 
and,
 
consequently,
 
can
 
affect
 
banks
 
and
 
the
 
financial
 
sector
 
throug
 
h
 
financial
 
and
 
non-financial
impacts.
Our Sustainability
 
and Climate
 
Risk (SCR)
 
unit (part of
 
Group Risk
 
Control) manages
 
material exposure
 
to sustainability
and
 
climate
 
risks.
 
It
 
also
 
advances
 
our
 
firm-wide
 
SCR
 
initiative
 
to
 
build
 
in-house
 
capacity
 
for
 
the
 
management
 
of
sustainability and climate-related risks.
›
 
Refer to “Sustainability
 
and climate risk”
 
in the “Risk management
 
and control” section
 
of this report
›
 
Refer to Appendix
 
2 to our Sustainability
 
Report 2022,
 
available under
 
“Annual reporting”
 
at
ubs.com/investors
, for a full
description of our
 
sustainability and
 
climate risk
 
policy framework
Our sustainability goals and progress
 
We work
 
with a long-term focus
 
on providing
 
appropriate returns
 
to our stakeholders
 
in a responsible
 
manner.
 
We are
committed to providing transparent
 
targets and reporting on the progress made against them. Our
 
aspirational goals, as
set out below,
 
can therefore only partly be compared
 
with what we set out in
 
previous years.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
dev_UBS_AR_2022p76i1.gifdev_UBS_AR_2022p76i0.gifdev_UBS_AR_2022p76i2.gif
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
48
 
Our aspirational goals and progress
Our priorities
Our aspirational goals
Our progress in 2022
Planet, people,
partnerships
USD 400bn invested assets in sustainable
 
investments by
2025.
Increased invested assets
 
in sustainable investments to USD 268
 
bn
(compared with USD
 
251bn in 2021).
Planet
Decarbonization targets for 2030
 
for financing of the real
estate, fossil fuels, power generation
 
and cement sectors
(from 2020 levels):
–
 
reduce emissions intensity of
 
UBS’s residential real
estate lending portfolio by 42%;
 
–
 
reduce emissions intensity of
 
UBS’s commercial real
estate lending portfolio by 44%;
 
–
 
reduce absolute financed emissions
 
associated with
UBS loans to fossil fuel compani
 
es by 71%;
–
 
reduce emissions intensity associated
 
with UBS loans
to power generation companies
 
by 49%; and
–
 
reduce emissions intensity associated
 
with UBS loans
to cement companies by 15%.
Calculated progress against
 
pathways for the real estate (commercial
 
and
residential), fossil fuel and
 
power generation sectors:
1
 
–
 
reduced emissions intensity of
 
UBS’s residential real estate
 
lending
portfolio by 8% (end of 2021
 
vs 2020 baseline);
 
–
 
reduced emissions intensity of
 
UBS’s commercial real estate lending
portfolio by 7% (end of 2021
 
vs 2020 baseline);
–
 
reduced absolute financed emissions
 
associated with UBS loans to fossil
fuel companies by 42%
 
(end of 2021 vs 2020 baseline); and
–
 
reduced emissions intensity associated
 
with UBS loans to power
generation companies by 12% (end
 
of 2021 vs 2020 baseline).
 
Introduction of an additional
 
decarbonization target for the cement
 
sector,
as well as an estimation of the overall
 
financed emissions.
Align 20% of AuM to be managed
 
in line with net zero
(Asset Management).
2
Achieve net-zero emissions
 
across discretionary client
portfolios by 2050 (Asset Management).
3
Initiated analysis of revisions
 
to fund documentation and investment
management agreements to
 
align with Asset Management’s net
 
-zero-
aligned frameworks.
 
Achieve net-zero energy emissions
 
resulting from our
own operations (scopes 1 and
 
2) by 2025; cut energy
consumption by 15% by 2025
 
(compared with 2020).
Reduced net GHG footprint
 
for scope 1 and 2 emissions by 13% and
 
energy
consumption by 8% (compared
 
with 2021); continued implementation of
the replacement of fossil
 
fuel heating systems and investing in credible
carbon removal projects;
 
achieved 99% renewable electricity coverage
despite challenging market conditions.
Offset historical emissions back
 
to the year 2000 by
sourcing carbon offsets
 
(by year-end 2021) and by
offsetting credit delivery
 
and full retirement in
 
registry (by
year-end 2025).
Continued to follow up on
 
credit delivery and retirement
 
of sourced
portfolio.
Engage with key vendors on
 
aiming for net zero by 2035.
Identified “GHG key vendors” (vendors
 
that collectively account for >50%
of our estimated vendor GHG emissions)
 
and invited the vendors that
accounted for 67% of our annual
 
vendor spend (including all GHG key
vendors) to disclose their environmental
 
performance through CDP’s
 
Supply
Chain Program, with
 
66% of the invited vendors completing their
disclosures in the CDP platform.
People
30% global female representation
 
at Director level and
above by 2025.
Increased to 27.8% (2021:
 
26.7%) female representation at
 
Director level
and above.
26% of US roles at Director
 
level and above held by
employees from ethnic minorities
 
by 2025.
Increased to 20.4% (2021:
 
20.1%) ethnic minority representation
 
at Director
level and above in the US.
 
26% of UK roles at
 
Director level and above held by
employees from ethnic minorities
 
by 2025.
Increased to 23.0% (2021:
 
21.3%) ethnic minority representation
 
at Director
level and above in the UK.
Raise USD 1bn in donations to
 
our client philanthropy
foundations and funds and reac
 
h
 
25 million beneficiaries
by 2025 (cumulative for 2021
 
–2025).
Achieved a UBS Optimus Foundation
 
network donation volume of
USD 274m in 2022, totaling
 
USD 436m since 2021 (both figures
 
include UBS
matching contributions).
Reached 5.9 million beneficiaries.
Support 1.5 million young people
 
and adults to learn and
develop skills through our
 
community impact activities
(2022–2025).
Reached 370,916 beneficiaries
 
through strategic community impact
activities.
4
Partnerships
Establish UBS as a leading
 
facilitator of discussion,
debate and idea generation.
Co-organized, with the Institute
 
of International Finance, the first Wolfsberg
Forum for Sustainable Finance.
Joined a consortium that is
 
pioneering methods of assessing and maximizing
the GHG reduction potential
 
of energy storage.
Co-founded Carbonplace, a technology
 
platform for the voluntary carbon
market that has the goal of
 
creating a streamlined and transparent market
for our clients.
Drive standards, research
 
and development, and
product development.
Co-led the Taskforce
 
on Nature-related Financial Disclosures’
 
financial-
sector-specific working group.
Collaboration with two Swiss companies
 
that are pioneering innovative
carbon removal technologies.
Joined the Partnership for Carbon
 
Accounting Financials (PCAF).
1
Refer to the “Environment” section of
 
our Sustainability Report 2022,
 
available under “Annual
 
reporting” at ubs.com/investors
 
,
 
for further information.
 
The inherent one-year time
 
lag between the as-
 
of date of our
lending exposure and the as-of date
 
of emissions can be explained by two
 
factors:
 
corporates disclose
 
their emissions in annual reporting
 
only a few months after the end of
 
a financial year; and specialized
 
third-party
data providers take
 
up to nine
 
months to collect
 
disclosed data and
 
make it available
 
to data
 
users.
 
Consequently,
 
the baselines
 
for our net-zero
 
ambitions are
 
based on year-end
 
2020 lending
 
exposure and
 
2019
emissions data.
 
Our 202
 
1
 
emissions actuals
 
are based
 
on year-end
 
2021
 
lending exposure
 
and 202
 
0
 
emissions data.
 
2
 
The 20%
 
alignment
 
goal amounted
 
to USD
 
235bn at
 
the time
 
of Asset
 
Management’s
commitment in 2021. By 2030,
 
the weighted average
 
carbon intensity
 
of funds is to be 50%
 
below the carbon intensity
 
of the respective 2019
 
benchmark.
 
3
 
The near-
 
and medium-term
 
plans for the achievement
of this goal include our Asset Management
 
business division only.
 
4
 
Our Community Impact
 
program has a strategic focus
 
on education and the development
 
of skills.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
49
 
Our climate-related metrics and targets
We have developed
 
methodologies
 
that we use
 
to set our
 
climate-related targets
 
and
 
identify climate-related
 
risks and
which
 
underly
 
the
 
metrics that
 
are
 
disclosed
 
in
 
this
 
report.
 
Standard-setting
 
organizations
 
and
 
regulators
 
continue
 
to
provide
 
new
 
or
 
revised
 
guidance
 
and
 
standards,
 
as
 
well
 
as
 
new
 
or
 
enhanced
 
regulatory
 
requirements
 
for
 
climate
disclosures.
 
Our disclosed
 
metrics are
 
based
 
upon
 
data available
 
to us,
 
including
 
estimates and
 
approximations
 
where
actual or specific data is not available. We intend to update our disclosures to
 
comply with new guidance and regulatory
requirements
 
as
 
they
 
become
 
applicable
 
to
 
UBS.
 
Such
 
updates
 
may
 
result
 
in
 
revisions
 
to
 
our
 
disclosed
 
metrics,
 
our
methodologies and
 
related disclosures, which may be substantial,
 
as well as changes to the metrics we disclose.
Our
 
climate
 
targets
 
and
 
ambitions
 
are
 
high-level
 
goals
 
that
 
have
 
been
 
set
 
based
 
on
 
the
 
methodologies,
 
data
 
and
assumptions
 
that
 
we
 
currently
 
use.
 
Changes
 
to
 
these
 
methodologies,
 
data
 
and
 
assumptions
 
may affect
 
our
 
progress
toward intermediate targets and
 
ambitions and the achievability of
 
net zero and other climate
 
goals. Our 2050
 
net-zero
targets,
 
and related ambitions for scope 3 emissions, have a critical dependency on overall progress across all sectors and
countries toward
 
net-zero carbon
 
emissions
 
that require
 
s
 
substantial governmental
 
action across
 
many jurisdictions.
 
In
the absence of such progress,
 
our goals with respect to scope 3
 
emissions will not be achievable.
›
 
Refer to our Climate
 
and Nature Report
 
2022, available at
ubs.com/gri
, for a full description
 
of our net-zero targets,
 
including
baselines and pathways
 
Climate-related
 
metrics 2022
For the year ended
% change from
31.12.22
31.12.21
31.12.20
31.12.21
Risk management
 
Carbon-related assets (USD bn)
1,2
33.8
36.5
37.1
(7.4)
of which: UBS AG
8.9
10.1
11.0
(11.9)
of which: UBS Switzerland AG
24.6
26.0
25.4
(5.4)
Proportion of total customer lending exposure,
 
gross (%)
7.5
8.0
8.6
Total exposure to climate-sensitive sectors,
 
transition risk (USD bn)
2,3,4
24.9
27.3
27.1
(8.8)
of which: UBS AG
5.4
6.7
7.5
(19.4)
of which: UBS Switzerland AG
19.3
20.4
19.2
(5.4)
Proportion of total customer lending exposure,
 
gross (%)
5.5
5.9
6.2
Total exposure to climate-sensitive sectors,
 
physical risk (USD bn)
2,3,4
30.0
31.9
35.0
(6.0)
of which: UBS AG
11.6
13.3
18.3
(12.8)
of which: UBS Switzerland AG
17.7
18.2
16.2
(2.7)
Proportion of total customer lending exposure,
 
gross (%)
6.7
7.0
8.0
Opportunities
Number of green, sustainability, and sustainability
 
-linked bond deals
5
69
98
29
(29.6)
Total deal value of green, sustainability,
 
and sustainability-linked
 
bond deals (USD bn)
5
42.4
63.3
19.3
UBS-apportioned deal value of above (USD bn)
8.8
13.2
5.7
Stewardship – Voting
Number of climate-related resolutions voted upon
6
160
89
50
79.8
Proportion of supported climate-related resolutions (%)
71.2
78.6
88.0
Own operations (reporting period:
 
July to June)
Net GHG footprint (1,000 metric tons CO
2
e)
7
25
30
75
(15.4)
Change from baseline 2004 (%)
(93.0)
(92.0)
(79.0)
Share of renewable electricity (%)
99
100
85
1
 
As defined by the Task
 
Force on Climate
 
-related Financial Disclosures
 
(the TCFD), in its expanded
 
definition published in 2021,
 
UBS defines carbon-related
 
assets through industry
 
-identifying attributes of the firm’s
banking book. UBS
 
further includes
 
the four
 
non-financial sectors
 
addressed
 
by the TCFD,
 
including, but
 
not limited to,
 
fossil fuel
 
extraction, carbon-based
 
power generation,
 
transportation (air,
 
sea, rail, and
 
auto
manufacture), metals production and mining, manufacturing industries,
 
real estate development, chemicals, petrochemicals,
 
and pharmaceuticals, building
 
and construction materials and activities, forestry, agriculture,
fishing, food and beverage production,
 
as well as including trading companies
 
that may trade any of the
 
above (e.g., oil trading
 
or agricultural commodity trading
 
companies). This metric is
 
agnostic of risk rating, and
therefore may include exposures of companies that may be already transitioning
 
or adapting their business models to climate risks,
 
unlike UBS climate-sensitive sectors methodology,
 
which takes a risk-based approach
to defining material
 
exposure to climate
 
impacts.
 
2
 
Methodologies for
 
assessing climate
 
-related risks are
 
emerging and
 
may change
 
over time.
 
As the
 
methodologies, tools
 
and data
 
availability improve,
 
we will
further develop
 
our risk identification
 
and measurement
 
approaches,
 
including further
 
and updated
 
geospatial analysis
 
of properties
 
securing financing
 
with UBS (real
 
estate) and
 
better understanding
 
how private
lending (e.g., Lombard) activities
 
may result in direct financial
 
impacts for UBS.
 
Lombard lending rating
 
is assigned based on
 
the average riskiness
 
of loans.
 
3
 
Consists of total loans
 
and advances to
 
customers and
guarantees,
 
as well
 
as irrevocable
 
loan commitments
 
(within the
 
scope of
 
expected credit
 
loss), and
 
is based
 
on consolidated
 
and
 
standalone IFRS
 
numbers.
 
Metrics are
 
calculated and
 
restated
 
based on
 
2022
methodology, across
 
three years
 
of reporting, 2020
 
–2022.
 
4
Climate-related risks are
 
scored between 0
 
and 1, based
 
upon sustainability
 
and climate risk
 
transmission channels,
 
as outlined in
 
Appendix 3
 
to our
Sustainability Report 2022,
 
available under
 
“Annual
 
reporting” at
 
ubs.com/investors.
 
Risk ratings represent
 
a range of
 
scores across five
 
risk-rating categories:
 
low, moderately
 
low, moderate,
 
moderately high, and
high. The climate
 
-sensitive exposure
 
metrics are
 
determined based
 
upon the top
 
three out of five
 
rated categories:
 
high to moderate.
 
5
 
Such as, but
 
not limited to,
 
Investment
 
Bank Global Banking
 
bonds issued
under the voluntary ICMA Green Bond
 
Principles, Sustainability Bond
 
Principles, and Sustainability
 
-Linked Bond Principles. The
 
principles include a recommendation
 
that the issuer appoints an external review
 
provider
to undertake an independent
 
external review (e.g.,
 
second-party opinion). This
 
is consistent with
 
market practice.
 
 
6
This excludes proposals related
 
to Japanese companies
 
that included changes
 
to the companies’
articles of association.
 
The 2022 and
 
2021 numbers include
 
shareholder and
 
management proposals,
 
the 2020 numb
 
er shareholder
 
proposals only.
 
This reflects the
 
increasingly common
 
market practice
 
of climate-
related proposals
 
being presented
 
by management.
 
7
Net greenhouse gas
 
(GHG) footprint
 
equals gross
 
GHG emissions
 
minus GHG
 
reductions from
 
renewable electricity
 
and CO
2
e offsets (gross
 
GHG emissions
include: direct
 
GHG emissions
 
by UBS;
 
indirect GHG
 
emissions associated
 
with the
 
generation of
 
imported /
 
purchased electricity
 
(grid average
 
emission factor),
 
heat or
 
steam; and
 
other indirect
 
GHG emissions
associated with business travel,
 
paper consumption and waste
 
disposal). A breakdown
 
of our GHG emissions (scopes
 
1, 2 and 3) is provided
 
in Appendix 3 to
 
our Sustainability Report 2022,
 
available under
“
Annual
reporting
”
 
at ubs.com/investors.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
How
 
we
 
create
 
value
 
for
 
our
 
stakeholders
 
50
 
Reporting to our stakeholders on our
 
sustainability strategy
 
and activities
Further
 
information
 
about
 
our
 
sustainability
 
efforts
 
and
 
commitments
 
is
 
provided
 
in
 
our
 
Sustainability
 
Report
 
2022,
available
 
under
 
“Annual
 
reporting”
 
at
ubs.com/investors
.
 
The
 
content
 
of
 
our
 
Sustainability
 
Report
 
2022
 
has
 
been
prepared in accordance with
 
Global Reporting Initiative (GRI) standards and
 
with the German rules implementing the EU
Directive on disclosure of non
 
-financial and diversity information
 
(2014/95/EU).
 
We also disclose data on climate-related
financial risks, pertaining
 
to the
 
Swiss Financial Market Supervisory
 
Authority’s (FINMA
 
’s) disclosure
 
requirements as
 
set
out in appendix 5 to FINMA
 
Circular 2016/1 “Disclosure – banks.
 
”
 
Our reporting on sustainability
 
has been reviewed on
a limited assurance basis by Ernst & Young
 
Ltd against the GRI standards.
 
›
 
Refer to our Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
, for an overview of
 
non-
financial disclosures
 
in accordance with
 
the German rules
 
implementing
 
EU Directive 2014/95
 
and for information
 
about UBS AG
and UBS Europe SE disclosures
 
pursuant to
 
Art. 8 of the EU
 
Taxonomy Regulation
 
 
 
Regulation and supervision
 
As a financial
 
services
 
provider based
 
in Switzerland,
 
UBS is
 
subject to
 
consolidated
 
supervision
 
by the
 
Swiss Financial
 
Market
Supervisory Authority (FINMA). Our
 
entities are
 
also regulated and
 
supervised by
 
authorities in each
 
country where
 
they
conduct business. Through
 
UBS AG and UBS Switzerland
 
AG, both licensed as banks
 
in Switzerland, UBS may
 
engage in a
full
 
range
 
of
 
financial
 
services
 
activities
 
in
 
Switzerland
 
and
 
abroad,
 
including
 
personal
 
banking,
 
commercial
 
banking,
investment banking and
 
asset management.
 
As a
 
global systemically
 
important bank (a
 
G-SIB), as
 
designated by the
 
Financial Stability Board, and
 
a systemically
 
relevant
bank (an
 
SRB) in
 
Switzerland, we are
 
subject to
 
stricter regulatory
 
requirements and
 
supervision than
 
most other Swiss
banks.
 
›
 
Refer to the “Our
 
evolution” section
 
of this report for
 
more information
›
 
Refer to the “Regulatory
 
and legal developments”
 
and “Risk factors”
 
sections of this
 
report for more information
Regulation and supervision in Switzerland
Supervision
UBS
 
Group AG and
 
its subsidiaries are
 
subject to
 
consolidated supervision by
 
FINMA under
 
the Swiss
 
Banking Act
 
and
related ordinances, which impose standards for
 
matters such as minimum capital, liquidity, risk concentration
 
and internal
organization
 
standards. FINMA
 
meets its
 
statutory
 
supervisory
 
responsibilities
 
through licensing,
 
regulation,
 
supervision,
 
and
enforcement. It is responsible for prudential supervision and mandates audit firms to perform regulatory audits and other
supervisory tasks
 
on its behalf.
Capital adequacy and liquidity regulation
As an
 
internationally active
 
Swiss
 
systemically
 
important
 
bank
 
(SIB),
 
we are
 
subject
 
to capital
 
and
 
total loss
 
-absorbing
capacity (TLAC) requirements
 
that are based
 
on both
 
risk-weighted assets
 
and the
 
leverage ratio denominator,
 
and are
among the
 
most stringent
 
in the
 
world. We
 
are also
 
subject to
 
Swiss SIB
 
liquidity requirements
 
and to
 
minimum long-
term funding requirements
 
.
›
 
Refer to the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section of this
 
report for more information
 
about the Swiss
 
SRB
framework and
 
the Swiss too-big-to-fail
 
(TBTF) requirements
›
 
Refer to “Liquidity
 
coverage ratio”
 
in the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section of this
 
report for more
information about liquidity
 
coverage ratio
 
requirements
 
Regulation and supervision outside
 
Switzerland
Regulation and supervision in
 
the US
In the US,
 
UBS is
 
subject to
 
regulation and
 
supervision
 
by the Board
 
of Governors
 
of the Federal
 
Reserve System
 
(the Federal
Reserve Board) under a number of laws. UBS Group AG and UBS AG are both subject
 
to the Bank Holding Company Act,
pursuant to which the Federal
 
Reserve Board has supervisory authority
 
over the US operations of both UBS Group
 
AG and
UBS AG.
 
In addition to being a financial
 
holding company under the Bank Holding Company Act, UBS AG has US branches, which
are authorized
 
and
 
supervised by
 
the Office
 
of
 
the Comptroller
 
of the
 
Currency
 
(the
 
OCC).
 
UBS AG
 
is registered
 
as a
swap dealer with the Commodity
 
Futures Trading Commission (the CFTC) and as a securities-based swap dealer with the
Securities and Exchange Commission
 
(the SEC).
 
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
a
nd
 
environment
 
|
 
Regulation
 
and
 
supervision
 
51
 
UBS Americas Holding LLC, the intermediate
 
holding company for our operations in
 
the US outside
 
of the UBS AG
 
branch
network,
 
as
 
required
 
under
 
the Dodd
 
–Frank
 
Act,
 
is
 
subject
 
to
 
requirements
 
established
 
by
 
the
 
Federal Reserve
 
Board
related to risk-based
 
capital, liquidity,
 
the Comprehensive
 
Capital Analysis and
 
Review (CCAR)
 
stress testing and
 
capital
planning process, and
 
resolution planning and governance.
UBS Bank
 
USA, a Federal
 
Deposit Insurance
 
Corporation
 
(FDIC)-insured depository
 
institution subsidiary,
 
is licensed and
regulated by state regulators in Utah
 
and is also supervised by the
 
FDIC.
 
UBS
 
Financial Services
 
Inc., UBS
 
Securities
 
LLC and
 
several
 
other US
 
subsidiaries
 
of
 
UBS
 
are subject
 
to regulation
 
by a
number
 
of
 
different
 
government
 
agencies
 
and
 
self-regulatory
 
organizations,
 
including
 
the
 
SEC,
 
the Financial
 
Industry
Regulatory Authority, the CFTC, the Municipal Securities
 
Rulemaking Board and national securities
 
exchanges, depending
on
 
the nature
 
of their
 
business. Certain
 
of our
 
activities in the
 
US are
 
subject to
 
regulation by
 
the Consumer
 
Financial
Protection Bureau.
Regulation and supervision in
 
the UK
Our regulated UK operations
 
are mainly subject to the authority of
 
the Prudential Regulation
 
Authority (the PRA),
 
which
is part
 
of the
 
Bank of
 
England,
 
and the
 
Financial Conduct
 
Authority (the
 
FCA).
 
We are
 
also subject
 
to the
 
rules of
 
the
London Stock Exchange and
 
other securities and commodities exchanges of which
 
UBS AG is a member.
UBS AG
 
has a
 
UK-registered branch
 
in London,
 
which serves
 
as a
 
global booking
 
center for our
 
Investment Bank.
 
Our
regulated subsidiaries in the UK that
 
provide asset management services are
 
authorized and regulated mainly by the FCA,
with one entity, UBS Asset
 
Management Life
 
Ltd, being also
 
subject to the authority of the PRA.
Regulation and supervision in
 
Germany / the EU
UBS Europe SE,
 
headquartered in Germany,
 
is subject to the direct supervision
 
of the European
 
Central Bank, as well as
to
 
continued
 
conduct,
 
consumer
 
protection
 
and
 
anti-money-laundering-related
 
supervision
 
by
 
the
 
German
 
Federal
Financial Supervisory Authority
 
(the BaFin)
 
and supervisory support
 
by the German
 
Bundesbank.
 
The entity is subject
 
to
EU and
 
German laws
 
and
 
regulations.
 
UBS
 
Europe
 
SE maintains
 
branches
 
in Denmark,
 
France, Italy,
 
Luxembourg,
 
the
Netherlands,
 
Poland,
 
Spain,
 
Sweden
 
and
 
Switzerland, and
 
is subject
 
to conduct
 
supervision
 
by authorities
 
in all
 
those
countries.
Regulation and supervision
 
in Asia Pacific
We operate in 13 locations in
 
Asia Pacific and are subject to regulation
 
and supervision by local financial regulators. Our
regional hubs
 
are in Singapore and the
 
Hong Kong SAR.
In Singapore, we conduct our operations primarily through UBS AG Singapore Branch and UBS Securities
 
Pte. Ltd., which
are supervised by the Monetary Authority
 
of Singapore and
 
the Singapore Exchange.
UBS
 
AG Hong
 
Kong Branch
 
is primarily
 
supervised
 
by the
 
Hong
 
Kong
 
Monetary Authority.
 
UBS
 
Securities Hong
 
Kong
Limited, UBS
 
Securities Asia
 
Limited
 
and
 
UBS
 
Asset Management
 
(Hong
 
Kong) Limited
 
are primarily
 
supervised
 
by the
Hong Kong Securities and Futures Commission. In addition, UBS Securities Hong Kong Limited is supervised by the Hong
Kong Stock Exchange and
 
the Hong Kong Futures Exchange.
In mainland China, UBS has multiple licenses to operate its core business
 
lines and the various UBS entities are subject to
regulation by a number
 
of different government agencies. The
 
People’s Bank of China
 
oversees the macro capital
 
markets
policies and
 
ensures
 
coordinated
 
supervisory approaches
 
by the
 
China
 
Banking
 
and Insurance
 
Commission,
 
the China
Securities and Regulatory Commission,
 
and the exchanges.
Financial crime prevention
Combating money laundering and terrorist financing has been a major focus of many governments in recent years. Laws
and regulations, including the Swiss Banking Act and the US Bank Secrecy Act, require
 
effective policies, procedures and
controls to
 
detect, prevent and
 
report money
 
laundering and terrorist
 
financing,
 
and the verification
 
of client identities.
Failure to introduce
 
and maintain
 
adequate programs
 
to prevent
 
money laundering and
 
terrorist financing can
 
result in
significant legal and reputation
 
al risk and fines.
We are
 
also subject
 
to laws
 
and
 
regulations
 
prohibiting
 
corrupt or
 
illegal
 
payments
 
to government
 
officials
 
and
 
other
persons,
 
including the
 
US Foreign
 
Corrupt Practices
 
Act and
 
the UK Bribery
 
Act. We
 
maintain policies,
 
procedures
 
and
internal controls intended to
 
comply with those regulations.
›
 
Refer to “Non-financial
 
risk” in the
 
“Risk management
 
and control”
 
section of this report
 
for more information
Data protection
We
 
are
 
subject
 
to
 
regulations
 
concerning
 
the
 
use
 
and
 
protection
 
of
 
customer,
 
employee,
 
and
 
other
 
personal
 
and
confidential information. This includes provisions under Swiss law, the EU General Data Protection Regulation (the GDPR)
and laws of other jurisdictions.
›
 
Refer to the “Risk
 
factors” section of
 
this report for more
 
information about
 
regulatory change
 
 
 
dev_UBS_AR_2022p80i0.jpg
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
a
nd
 
environment
 
|
 
Regulation
 
and
 
supervision
 
52
 
Recovery and resolution
Swiss TBTF legislation
 
requires each
 
Swiss SRB
 
to establish
 
an emergency plan
 
to maintain systemic
 
functions in
 
case of
impending insolvency. In response to these Swiss requirements, and similar ones in
 
other jurisdictions, UBS has
 
developed
recovery plans
 
and resolution
 
strategies, as well
 
as plans for
 
restructuring or winding
 
down businesses
 
if the firm could
not be stabilized otherwise.
 
In 2013,
 
FINMA stated its
 
preference for
 
a single
 
point of
 
entry (an
 
SPE) strategy
 
for globally
 
active SRBs,
 
such as
 
UBS,
with a
 
bail-in at the
 
group holding-company level. UBS has
 
made structural, financial and operational
 
changes to facilitate
an SPE strategy and is confident that a resolution
 
of the bank is operationally executable
 
and legally enforceable.
 
FINMA
 
evaluates
 
the
 
recovery
 
and
 
resolution
 
plans
 
of
 
Swiss
 
SRBs
 
on
 
a
 
regular
 
basis.
 
In
 
its
 
most
 
recent
 
assessment
published in March 2022, FINMA re-confirmed that our Swiss emergency plan is effective and that our recovery plan was
approved. Furthermore,
 
FINMA acknowledged the continued
 
progress we made toward achieving global
 
resolvability.
 
UBS’s crisis management framework
Our crisis management framework assigns
 
responsibility and actions
 
depending on
 
the nature of the stress incident and
the scale of the response needed.
–
 
For incident,
 
risk and
 
crisis
 
management, the
 
Group
 
Crisis Task
 
Force
 
works with
 
incident management
 
teams that
provide monitoring and
 
early-warning indicators at
 
the local / regional level,
 
without needing
 
to activate protocols at
the Group
 
level. If
 
a local
 
response
 
is insufficient,
 
global
 
task forces
 
and crisis management
 
teams provide
 
decision-
making
 
guidance
 
and
 
coordination,
 
including
 
crisis management
 
plans,
 
protocols
 
and
 
playbooks,
 
and
 
contingency
funding plans.
–
 
The Group Executive Board (th
 
e
 
GEB) and the Board of Directors (the BoD)
 
would evaluate and decide upon the
 
need
to activate the
 
Global Recovery
 
Plan (the
 
GRP) if a
 
stress event reached
 
a severity requiring
 
such activation,
 
based on
the GRP’s risk indicators.
–
 
FINMA has
 
the authority
 
to determine
 
whether the
 
point
 
of non
 
-viability (PONV)
 
as
 
defined
 
by Swiss
 
law has
 
been
reached
 
and,
 
as
 
part
 
of
 
the
 
resolution
 
strategy,
 
has
 
the
 
power
 
to
 
order
 
the
 
bail-in
 
of
 
creditors
 
to
 
recapitalize
 
and
stabilize the Group, limit payments of dividends
 
and interest, alter our legal structure,
 
take actions to reduce business
risk, and order a restructuring of
 
the bank.
 
 
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
a
nd
 
environment
 
|
 
Regulation
 
and
 
supervision
 
53
 
Global Recovery Plan
 
The GRP provides a
 
tool to restore
 
financial strength if
 
UBS comes under
 
severe capital and
 
liquidity stress. Quantitative
and qualitative triggers are monitored daily and are subject to predefined governance and escalation processes. Recovery
options
 
are
 
linked
 
to
 
owners
 
and
 
checklists,
 
with
 
the
 
objectives
 
of
 
preserving
 
capital,
 
raising
 
capital
 
or
 
liquidity,
 
or
disposing of or winding down
 
businesses.
Global Resolution Strategy
FINMA is required
 
to produce a
 
global resolution
 
plan for UBS.
 
The plan includes
 
setting out measures
 
that FINMA can
 
take
to resolve UBS
 
in an
 
orderly manner
 
if the
 
Group enters
 
into resolution.
 
The SPE
 
bail-in strategy
 
would involve
 
writing down
the Group’s
 
remaining equity
 
and additional tier 1
 
and tier 2
 
instruments, as well
 
as bail-in of
 
total TLAC-eligible senior
unsecured bonds at the
 
UBS Group AG level. An internal recapitalization of undercapitalized subsidiaries would be made
simultaneously with losses transmitted to UBS AG and, ultimately, UBS Group AG. Post-resolution restructuring measures
could include disposal
 
and winding
 
down of businesses
 
and assets.
Local recovery and resolution plans
The Swiss
 
emergency plan demonstrates
 
how UBS’s systemically important
 
functions and critical
 
operations in Switzerland
can
 
continue
 
if
 
the
 
UBS
 
Group
 
cannot
 
be
 
restructured.
 
This
 
is
 
achieved
 
mainly
 
by
 
holding
 
UBS
 
Switzerland AG
 
as
 
a
separate legal entity
 
and maintaining
 
sufficient capital and
 
liquidity to ensure
 
its continued
 
operation. FINMA
 
considers
the plan to be effective.
The US resolution plan sets out the
 
steps that could be taken to
 
resolve the UBS Americas Holding LLC
 
group if it suffered
material financial
 
distress and
 
the UBS
 
Group
 
was unable
 
or unwilling
 
to provide
 
financial support.
 
As required
 
by US
regulations, our US
 
plan contemplates that UBS Americas Holding
 
LLC will commence US bankruptcy
 
proceedings. Prior
to
 
this,
 
the
 
plan
 
envisages
 
UBS
 
Americas
 
Holding
 
LLC down
 
-streaming
 
financial
 
resources
 
to
 
subsidiaries
 
to
 
facilitate
orderly wind-down or
 
disposal of businesses.
UBS Europe
 
SE
 
develops
 
a
 
local
 
recovery
 
plan
 
annually
 
based
 
on
 
European
 
Central
 
Bank
 
(ECB)
 
requirements,
 
and
resolution
 
planning
 
information and
 
capabilities based
 
on
 
Single Resolution
 
Board requirements.
 
On the
 
basis of
 
such
information
 
the
 
Internal
 
Resolution
 
Team
 
(IRT),
 
composed
 
of
 
members
 
of
 
the
 
Single
 
Resolution
 
Board,
 
produces
 
a
resolution plan for UBS
 
Europe SE.
Other local recovery and resolution
 
plans exist for various Group
 
entities and jurisdictions.
 
 
 
Regulatory and legal developments
Developments regarding prudential
 
matters
In March 2022, the Swiss
 
Financial Market Supervisory
 
Authority (FINMA) presented its annual assessment of the
 
recovery
and resolution plans of
 
systemically important
 
financial institutions in
 
Switzerland as part
 
of the
 
too-big-to-fail framework.
In
 
its report,
 
FINMA
 
acknowledged
 
the
 
further progress
 
that
 
UBS
 
has
 
made
 
with
 
regard
 
to
 
its global
 
resolvability
 
by
significantly
 
reducing
 
the
 
remaining
 
obstacles
 
to
 
the
 
implementation
 
of
 
its
 
resolution
 
strategy
 
and
 
making
 
further
improvements
 
to
 
its
 
recovery
 
plans.
 
FINMA
 
considered
 
UBS’s
 
global
 
recovery
 
plan
 
and
 
Swiss
 
emergency
 
plan
 
to
 
be
effective, while identifying certain
 
areas for further improvement,
 
which UBS is in the
 
process of addressing.
 
In parallel, the
 
Swiss Federal
 
Council announced
 
the key parameters
 
for a public
 
liquidity backstop
 
in conjunction
 
with
the revision of
 
the Swiss Liquidity
 
Ordinance. The
 
liquidity backstop would
 
enable the Swiss
 
government and
 
the Swiss
National
 
Bank
 
to
 
support
 
the
 
liquidity
 
of
 
a
 
Swiss
 
systemically
 
important
 
bank
 
(SIB)
 
in
 
the
 
process
 
of
 
resolution.
 
The
introduction of the backstop is intended to increase
 
the confidence of market
 
participants in the ability of SIBs to
 
become
successfully recapitalized
 
and
 
remain solvent
 
in a
 
crisis situation.
 
The Swiss
 
Federal Department
 
of
 
Finance (the
 
FDF)
 
is
expected to issue a public consultation
 
by mid-2023.
In July
 
2022,
 
the revision
 
of the
 
Swiss Liquidity
 
Ordinance became
 
effective,
 
which
 
increases the
 
regulatory
 
minimum
liquidity requirements for SIBs from 1 January 2024.
 
The specific increase for UBS remains uncertain pending
 
supervisory
guidance
 
from
 
FINMA,
 
which
 
is
 
expected
 
to
 
be
 
communicated
 
to
 
the
 
firm in
 
the
 
autumn
 
of
 
2023.
 
Related
 
new
 
and
revised regulatory reporting requirements
 
became effective from the fourth quarter
 
of 2022
 
onward.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Regulatory
 
and
 
legal
 
developments
 
54
 
In November 2022, the Swiss Federal Council
 
adopted the amendments to
 
the Banking Act and the Banking Ordinance,
which entered into force as of 1 January 2023. The amendments enact insolvency provisions for banks into statutory law
and strengthen the
 
deposit insurance framework. They
 
also replace the
 
current resolvability discount on
 
the gone concern
capital requirements for SIBs,
 
including UBS, with a
 
reduced base gone
 
concern capital requirement. In addition,
 
FINMA
has the authority to impose a surcharge of up to 25%
 
of the base gone concern capital requirement should obstacles to
a
 
SIB’s
 
resolvability
 
be
 
identified
 
in
 
future
 
resolvability
 
assessments.
 
We
 
currently
 
expect
 
that
 
our
 
total gone
 
concern
requirements will remain substantially unchan
 
ged in the first quarter of 2023
 
because of these changes.
In December
 
2022,
 
the Swiss State
 
Secretariat for
 
International Finance
 
changed the
 
expected date
 
on which
 
the final
Basel III guidelines
 
are to
 
enter
 
into
 
force, from
 
1 July
 
2024
 
to 1
 
January 2025
 
.
 
As a
 
result, the
 
Swiss implementation
timeline would
 
be aligned
 
to the currently
 
expected implementation
 
timeline in the
 
EU. We
 
currently estimate that
 
the
revised Basel
 
III framework would lead
 
to a further
 
net increase in
 
risk-weighted assets (RWA) of around USD 12bn,
 
before
taking into
 
account mitigating
 
actions and
 
not reflecting
 
the impact
 
of the
 
output floor,
 
which is phased
 
in over
 
time.
Our estimate includes the finalization of the Basel III framework, as well as the Fundamental Review of the Trading Book,
based on
 
our current understanding
 
of the relevant
 
standards.
 
It may change
 
as a result
 
of new
 
or updated
 
regulatory
interpretations,
 
appropriate
 
conservatism
 
in
 
model
 
calibration,
 
the
 
implementation
 
of
 
Basel III
 
standards
 
into
 
national
law, changes in business
 
growth, market conditions and other factors.
 
The final degree of alignment between
 
the Swiss
implementation and those
 
in other jurisdictions, particularly
 
those regarding the treatment
 
of historical operational losses,
remains uncertain at this stage.
In
 
the
 
US, the
 
Securities and
 
Exchange
 
Commission
 
(the
 
SEC) has
 
proposed
 
a number
 
of
 
significant
 
new
 
and
 
revised
regulations, including,
 
among others, proposals that would significantly change order execution rules in US public equity
markets and
 
new
 
disclosure
 
requirements
 
relating to
 
climate,
 
cybersecurity and
 
share
 
repurchases,
 
as well
 
as changes
relating
 
to
 
investment
 
companies
 
and
 
investment
 
advisors.
 
On
 
15 February
 
2023,
 
the
 
SEC
 
approved
 
rule
 
changes
 
to
shorten the settlement cycle for US
 
markets to trade date +1,
 
with the compliance date set as 28 May 2024.
US banking
 
regulators
 
are expected
 
to adopt
 
rules that
 
would substantially
 
change
 
how
 
banks’
 
service to
 
low-income
and
 
underserved
 
communities
 
is
 
evaluated
 
under
 
the
 
Community
 
Reinvestment
 
Act,
 
which,
 
if
 
adopted
 
as
 
currently
proposed,
 
would change measurement
 
of this obligation
 
for UBS Bank USA
 
.
 
The regulators further
 
propose regulations
to
 
implement
 
the
 
remaining
 
Basel III
 
capital
 
requirements,
 
including
 
the
 
Fundamental
 
Review
 
of
 
the
 
Trading
 
Book
requirements. These requirements,
 
when final, will affect UBS Americas Holding
 
LLC.
The above
 
proposals
 
from the
 
SEC and
 
the US
 
banking regulators
 
represent
 
a significant
 
regulatory
 
agenda,
 
which,
 
if
completed in the near future,
 
would likely require significant resources
 
to implement.
Corporate taxation in Switzerland
 
and the US
In December 2021,
 
the Organisation
 
for Economic Co
 
-operation and
 
Development (the OECD)
 
issued Global
 
Anti-Base
Erosion Rules
 
under the
 
Pillar 2 framework.
 
To
 
address this,
 
the Swiss Federal
 
Council launched
 
the consultation
 
of the
ordinance on the
 
national implementation of a global
 
minimum corporate tax rate in
 
August 2022. The
 
Federal Council
has proposed a minimum tax rate of 15% for Swiss firms with global earnings above EUR 750m from January 2024.
 
The
OECD model rules will be transformed into Swiss national law following a constitutional amendment, which is subject to
a mandatory referendum,
 
expected by June
 
2023. We
 
do not
 
expect the proposed
 
implementation of
 
global minimum
taxation in Switzerland to materially impact our
 
effective tax rate.
As part of the Inflation Reduction
 
Act (the IRA) passed
 
by the US Congress
 
in August 2022, a new
 
corporate alternative
minimum tax (CAMT) was introduced, with an
 
effective date
 
of 1 January 2023. CAMT is calculated
 
as 15% of an entity’s
consolidated
 
financial statement
 
profits, without
 
taking
 
into account
 
pre-2019
 
tax loss
 
carry-forwards. As
 
a result,
 
the
Group
 
is
 
expected
 
to
 
incur
 
significant
 
US
 
current
 
tax
 
expenses,
 
although
 
these
 
will
 
be
 
offset
 
by
 
the
 
recognition
 
of
equivalent
 
benefits
 
in
 
respect
 
of
 
deferred
 
tax assets.
 
There
 
is no
 
change
 
to
 
the
 
Group’s effective
 
tax rate.
 
CAMT
 
will
temporarily defer
 
the accretion
 
of profits
 
to the
 
Group’s common
 
equity tier 1
 
(CET1)
 
capital, but
 
the amount
 
of such
deferral is expected
 
to be
 
recaptured in the
 
future through
 
the use of
 
CAMT credits. The
 
2022 impact on
 
the accretion
of CET1 capital would have been
 
around USD 250m.
Sanctions related to the Russia–Ukraine
 
war
During
 
2022,
 
the
 
Swiss
 
Federal
 
Council
 
adopted
 
the
 
EU
 
sanctions
 
against
 
Russia.
 
Recently
 
issued
 
measures
 
provide,
among other
 
things, a
 
legal basis
 
for the introduction
 
of price
 
caps for Russian
 
crude oil
 
and petroleum,
 
and include
 
a
ban
 
on the
 
provision of
 
certain services
 
to the
 
Russian
 
government and
 
Russian
 
companies. UBS’s
 
sanctions programs
are
 
designed
 
to
 
comply
 
with
 
sanctions
 
across
 
multiple
 
jurisdictions,
 
including
 
those
 
imposed
 
by
 
the
 
United
 
Nations,
Switzerland, the EU, the UK
 
and the US.
Developments regarding environmental,
 
social and governance matters
In 2022, environmental, social and
 
governance (ESG) matters continued
 
to evolve rapidly across different
 
jurisdictions.
In
 
June
 
2022,
 
two
 
new
 
self-regulation
 
minimum
 
requirements
 
were
 
issued
 
by
 
the
 
Swiss
 
Bankers
 
Association.
 
One
requirement sets standards for the consideration of sustainability
 
criteria in the investment advisory process and the
 
other
regulates the mortgage advisory process.
 
In parallel, the Swiss Federal Council launched the Swiss
 
Climate Scores, which
consist of
 
six indicators
 
that provide
 
transparency regarding
 
climate-related information,
 
such as
 
carbon emissions
 
and
the implied temperature increase of a portfolio
 
.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Regulatory
 
and
 
legal
 
developments
 
55
 
In September 2022,
 
the Swiss Parliament adopted
 
a new federal
 
law on climate protection,
 
including provisions
 
related
to
 
emission-reduction
 
pathways
 
and
 
interim
 
targets.
 
The
 
law
 
provides
 
the
 
legal
 
basis
 
for
 
measures
 
to
 
support
 
the
transition to net zero in different
 
economic sectors, including
 
the financial sector. Subject to a referendum
 
that will take
place in June 2023, the new
 
law is expected to enter into force in 2024
 
.
The Swiss
 
Federal Council adopted
 
a revised ordinance
 
on climate-related
 
disclosures
 
in November 2022,
 
which will be
mandatory for
 
large companies
 
domiciled
 
in Switzerland
 
as of
 
1 January
 
2024.
 
The ordinance
 
makes reference
 
to the
recommendations of the Task Force on
 
Climate-related Financial Disclosures
 
(the TCFD) and
 
sets disclosure requirements
related to the
 
plans for the
 
transition to net
 
zero
 
and regarding climate-related impacts on a
 
company’s business activities.
In parallel, FINMA has issued guidance
 
on disclosures of climate-related financial
 
risks and announced
 
another review of
climate-related disclosures in
 
the course of 2023.
In December
 
2022, the Swiss
 
Federal Council published a
 
report on sustainability
 
in the financial
 
sector, in which
 
it defined
15 measures planned
 
to be implemented
 
in the years
 
2023 to 2025.
 
The measures aim to,
 
among other
 
things, ensure
that
 
more
 
and
 
better
 
sustainability
 
data
 
is
 
available
 
from
 
all
 
sectors
 
of
 
the
 
economy,
 
in
 
order
 
to
 
increase
 
overall
transparency. The Swiss government also adopted a position on greenwashing, stating
 
that financial products or services
should only
 
be advertised as
 
being sustainable
 
if they are
 
aligned with
 
or contribute
 
to at least
 
one of
 
the goals
 
of the
wider sustainability frameworks, such as
 
the United Nations Sustainable
 
Development Goals.
In January
 
2023,
 
FINMA provided
 
further guidance
 
on
 
the developments
 
regarding
 
the management
 
of
 
climate risks.
FINMA
 
reiterated
 
its
 
expectation
 
that
 
supervised
 
institutions,
 
including
 
UBS,
 
will
 
establish
 
adequate
 
frameworks
 
for
managing climate-related
 
financial risks that
 
are adapted
 
to the respective
 
risk profile
 
of the
 
institution. In
 
this context,
FINMA
 
expects
 
the
 
supervised
 
financial
 
institutions
 
to
 
proactively
 
engage
 
with
 
the
 
recommendations
 
and
 
guidance
provided by
 
international bodies,
 
such as
 
the BCBS
 
and its
 
Principles for
 
the Effective
 
Management and
 
Supervision
 
of
Climate-Related Financial Risks
 
issued in June
 
2023, as well
 
as relevant
 
best practices in
 
the market,
 
and to further
 
develop
their tools and processes where
 
necessary.
In
 
April
 
2022,
 
the
 
SEC
 
proposed
 
rules
 
on
 
climate-related
 
disclosures.
 
The
 
proposed
 
rules
 
would
 
require
 
qualitative
disclosures on climate risk management
 
processes inclusive of governance,
 
risk identification and scenario analyses,
 
and
quantitative disclosures on
 
greenhouse gas emissions
 
and financial statement impacts.
The European Commission (the EC) proposed draft legislation on corporate sustainability due diligence in February 2022,
requiring
 
companies
 
to
 
identify
 
and,
 
where
 
necessary,
 
prevent,
 
end
 
or
 
mitigate
 
adverse
 
impacts
 
of
 
their
 
activities
 
on
human rights
 
and the
 
environment. The
 
EC also published
 
a consultation
 
aiming to gain
 
a better understanding
 
of the
functioning of ESG ratings provided
 
by specialized rating agencies.
In
 
November
 
2022,
 
the
 
EU
 
finalized
 
the
 
Corporate
 
Sustainability
 
Reporting
 
Directive,
 
which
 
amends
 
the
 
reporting
requirements of the 2014 Non-Financial Reporting Directive for all large companies and all companies listed on regulated
markets
 
in
 
the
 
EU.
 
It requires
 
the
 
first companies,
 
including
 
UBS,
 
to
 
provide
 
detailed
 
information
 
about
 
sustainability
matters in their annual financial reports
 
from the 2024 fiscal year onward, including the impact
 
of their business activities
on sustainability matters and
 
the influence of sustainability factors (e.g.,
 
climate change or human
 
rights issues) on their
business
 
model,
 
outlook
 
and
 
operations.
 
The
 
Swiss
 
Federal Council
 
decided
 
to
 
review
 
the
 
impact of
 
the
 
EU
 
rules
 
on
Switzerland with a consultation planned
 
for July 2024 at the latest.
On a global
 
level, the International
 
Sustainability Standards
 
Board (the
 
ISSB) launched
 
a consultation
 
in March
 
2022 on
two of
 
its proposed standards: one
 
defining general sustainability-related
 
disclosure requirements and the
 
other specifying
climate-related disclosure
 
requirements.
 
Based on
 
the results
 
of this
 
consultation, the
 
ISSB decided
 
to adopt
 
disclosure
standards on greenhouse gas emissions, to introduce scenarios for reporting on climate resilience and to identify
 
climate-
related risks and opportunities.
 
The ISSB is expected to finalize its standards
 
by June 2023.
We expect to implement the standards
 
and requirements that are applicable to us
 
by their respective due dates.
FINMA revision of Circular 2008/21
 
“Operational risks and resilience – banks”
In December
 
2022, FINMA issued a
 
revised “Operational risks and
 
resilience – banks”
 
circular that incorporates
 
the BCBS’s
new
 
Principles
 
on
 
Operational
 
Resilience
 
into
 
the
 
FINMA
 
framework,
 
including
 
information
 
and
 
communication
technology risk, cyber risk, critical data risk, business
 
continuity management, cross-border
 
business service risk, and the
continuation
 
of critical
 
services
 
during
 
resolution
 
and
 
recovery.
 
A two
 
-year
 
transition
 
period
 
has been
 
granted
 
for the
implementation of
 
the requirements
 
on ensuring
 
operational resilience, with
 
the first elements
 
on critical functions
 
and
disruption tolerance
 
required to be
 
in place
 
by 1
 
January 2024 and the
 
remaining elements
 
in phases until
 
1 January 2026.
Swiss Federal Council approval of the revised
 
Anti-Money Laundering
 
Act
In August
 
2022, the Swiss
 
Federal Council
 
revised the Swiss
 
Anti-Money Laundering
 
Act and amended
 
the Anti-Money
Laundering Ordinance, which became effective on 1 January 2023. Among other things, the revised
 
provisions will affect
reporting requirements, as
 
well as requirements
 
to periodically review all
 
clients and client data.
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Risk
 
factors
 
56
 
Risk factors
 
Certain risks,
 
including
 
those described
 
below,
 
may affect
 
our ability
 
to execute
 
our strategy
 
or our
 
business activities,
financial condition, results of operations
 
and prospects. We are
 
inherently exposed to multiple risks, many
 
of which may
become apparent only with the benefit of hindsight. As a
 
result, risks that we do not consider to be material,
 
or of which
we are
 
not currently
 
aware, could
 
also adversely affect
 
us. Within each
 
category,
 
the risks
 
that we consider
 
to be
 
most
material are presented first.
 
Market, credit and macroeconomic risks
Performance in the financial services industry
 
is affected by market conditions
 
and the macroeconomic climate
 
Our
 
businesses
 
are
 
materially
 
affected
 
by
 
market
 
and
 
macroeconomic
 
conditions.
 
A
 
market
 
downturn
 
and
 
weak
macroeconomic conditions can be
 
precipitated by a number
 
of factors, including geopolitical
 
events, such as international
armed conflicts,
 
war,
 
or acts
 
of terrorism,
 
the imposition
 
of sanctions,
 
global
 
trade or
 
global
 
supply chain
 
disruptions,
including
 
energy
 
shortages
 
and
 
food
 
insecurity,
 
changes
 
in
 
monetary
 
or
 
fiscal
 
policy,
 
changes
 
in
 
trade
 
policies
 
or
international trade
 
disputes, significant inflationary
 
or deflationary price
 
changes, disruptions in one
 
or more
 
concentrated
economic
 
sectors,
 
natural
 
disasters,
 
pandemics
 
or
 
local
 
and
 
regional
 
civil
 
unrest.
 
Such
 
developments
 
can
 
have
unpredictable and destabilizing
 
effects.
 
Adverse changes in interest
 
rates, credit spreads,
 
securities prices, market volatility
 
and liquidity, foreign
 
exchange rates,
commodity prices, and
 
other market fluctuations,
 
as well as
 
changes in investor
 
sentiment, can affect our
 
earnings and
ultimately our financial
 
and capital positions. As financial markets
 
are global and highly
 
interconnected, local and regional
events
 
can
 
have
 
widespread
 
effects
 
well
 
beyond
 
the
 
countries
 
in
 
which
 
they
 
occur.
 
Any
 
of
 
these
 
developments
 
may
adversely affect our business
 
or financial results.
As a
 
result of
 
significant volatility
 
in the
 
market,
 
our businesses
 
may experience
 
a decrease
 
in client
 
activity
 
levels and
market
 
volumes,
 
which
 
would
 
adversely
 
affect
 
our
 
ability
 
to
 
generate
 
transaction
 
fees,
 
commissions
 
and
 
margins,
particularly in Global Wealth Management and the Investment Bank. A market
 
downturn would likely reduce the volume
and valuation
 
of assets that
 
we manage
 
on behalf
 
of clients, which
 
would reduce
 
recurring fee income
 
that is charged
based on invested assets, primarily in Global Wealth Management and Asset Management, and performance
 
-based fees
in Asset
 
Management. Such
 
a downturn could
 
also cause
 
a decline in
 
the value
 
of assets that we
 
own and
 
account for
as investments or trading positions.
 
In addition, reduced market liquidity or volatility may limit
 
trading opportunities and
may therefore reduce transaction
 
-based income and may also impede our
 
ability to manage risks.
Geopolitical events:
 
For example,
 
the Russia–Ukraine
 
war has
 
led to
 
one of
 
the largest
 
humanitarian cris
 
es in
 
decades,
with
 
millions
 
of
 
people
 
displaced,
 
a
 
mass
 
exodus
 
of
 
businesses
 
from
 
Russia,
 
and
 
heightened
 
volatility
 
across
 
global
markets. In addition, as a result of
 
the war, several jurisdictions, including the US, the
 
EU, the UK, Switzerland and others,
have imposed extensive sanctions on Russia and Belarus and certain
 
Russian and Belarusian entities and nationals, as well
as the Russian Central Bank. Among
 
others, the financial sanctions include barring certain
 
Russian banks from
 
using the
Society for
 
Worldwide
 
Interbank
 
Financial Telecommunication
 
(SWIFT) messaging
 
system,
 
asset freezes
 
for sanctioned
individuals and
 
corporations,
 
limits on
 
financial
 
transactions
 
with sanctioned
 
entities and
 
individuals,
 
and
 
limitation of
deposits in
 
the EU
 
and Switzerland from
 
Russian persons
 
not entitled to
 
residency in
 
the European
 
Economic Area
 
(the
EEA) or
 
Switzerland. The
 
scale of
 
the conflict
 
and
 
the speed
 
and extent
 
of sanctions
 
may produce
 
many of
 
the effects
described in the paragraph above,
 
including in ways that cannot now
 
be anticipated.
If individual
 
countries
 
impose restrictions
 
on
 
cross-border
 
payments or
 
trade, or
 
other exchange
 
or capital
 
controls,
 
or
change their
 
currency (for example, if
 
one or more
 
countries should leave the
 
Eurozone, as a result
 
of the imposition
 
of
sanctions on
 
individuals,
 
entities or
 
countries, or
 
escalation
 
of trade
 
restrictions
 
and
 
other actions
 
between
 
the US,
 
or
other
 
countries,
 
and
 
China),
 
we
 
could
 
suffer
 
adverse
 
effects
 
on
 
our
 
business,
 
losses
 
from
 
enforced
 
default
 
by
counterparties, be unable to access our
 
own assets or be unable
 
to effectively manage our risks.
We could
 
be materially
 
affected
 
if a
 
crisis develops,
 
regionally or
 
globally,
 
as a
 
result
 
of disruptions
 
in markets
 
due
 
to
macroeconomic or political developments,
 
trade restrictions,
 
or the failure of a major
 
market participant. Over time,
 
our
strategic plans
 
have become more
 
heavily dependent on our ability
 
to generate growth and revenue
 
in emerging markets,
including China, causing us
 
to be more exposed to the risks associated with such
 
markets.
Global Wealth Management derives revenues
 
from all the principal regions, but has a greater concentration
 
in Asia than
many peers and
 
a substantial presence
 
in the US,
 
unlike many European
 
peers. The
 
Investment Bank’s business
 
is more
heavily weighted to Europe and Asia than our peers, while its derivatives business
 
is more heavily weighted to structured
products
 
for
 
wealth
 
management
 
clients,
 
in
 
particular
 
with
 
European
 
and
 
Asian
 
underlyings.
 
Our
 
performance
 
may
therefore be more affected
 
by political, economic
 
and market developments
 
in these regions
 
and businesses than
 
some
other financial service providers.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Risk
 
factors
 
57
 
COVID-19 pandemic:
 
The COVID-19 pandemic, the governmental measures
 
taken to manage it, and related
 
effects, such
as labor market displacements, supply chain disruptions, and inflationary
 
pressures, have adversely affected, and may still
adversely
 
affect,
 
global
 
and
 
regional
 
economic
 
conditions,
 
resulting
 
in
 
contraction
 
in
 
the global
 
economy,
 
substantial
volatility in
 
the financial
 
markets, crises
 
in markets
 
for goods
 
and
 
services, as
 
well
 
as significant
 
disruptions
 
in
 
certain
regional real estate
 
markets, increased unemployment, increased credit
 
and counterparty risk,
 
and operational challenges.
While in
 
most
 
jurisdictions
 
the pandemic
 
-related
 
governmental measures
 
were
 
reversed,
 
resurgence
 
of the
 
pandemic,
ineffectiveness
 
of vaccines
 
and
 
continuance
 
or imposition
 
of new
 
pandemic control
 
measures may
 
result in
 
additional
adverse effects
 
on
 
the global
 
economy negatively
 
affecting
 
UBS’s
 
results of
 
operations
 
and financial
 
condition. Should
inflationary
 
pressures
 
or
 
other
 
adverse
 
global
 
market
 
conditions
 
persist,
 
or
 
should
 
the
 
pandemic
 
lead
 
to
 
additional
economic or
 
market disruptions,
 
we may
 
experience reduced
 
levels of
 
client activity
 
and demand
 
for our products
 
and
services, increased
 
utilization
 
of lending
 
commitments, significantly
 
increased
 
client defaults,
 
continued
 
and increasing
credit and valuation losses in our loan portfolios, loan commitments and other assets, and impairments of other financial
assets. A
 
fall in
 
equity markets
 
and
 
a consequent
 
decline in
 
invested assets
 
would
 
also reduce
 
recurring fee
 
income in
our Global Wealth Management and
 
Asset Management businesses, as UBS experienced in the second quarter of
 
2022.
These factors and other consequences of
 
the COVID-19 pandemic may
 
negatively affect our financial condition, including
possible
 
constraints on
 
capital and
 
liquidity,
 
as well
 
as a
 
higher cost
 
of capital,
 
and
 
possible
 
downgrades
 
to our
 
credit
ratings.
The
 
extent
 
to
 
which
 
the
 
pandemic,
 
the
 
ongoing
 
Russia–Ukraine
 
war,
 
and
 
current
 
inflationary
 
pressures
 
and
 
related
adverse economic conditions affect our businesses, results of operations and financial condition, as
 
well as our regulatory
capital and
 
liquidity ratios,
 
will depend
 
on future
 
developments,
 
including
 
the effects
 
of the
 
current conditions
 
on our
clients, counterparties, employees and
 
third-party service providers.
Our credit risk exposure to clients, trading
 
counterparties and other financial institutions
 
would increase under adverse
or other economic conditions
Credit risk is an integral part of many
 
of our activities, including
 
lending, underwriting
 
and derivatives activities. Adverse
economic or market conditions, or the imposition
 
of sanctions or other restrictions
 
on clients, counterparties or financial
institutions, may lead
 
to impairments and
 
defaults on
 
these credit exposures.
 
Losses may be
 
exacerbated by declines
 
in
the value
 
of collateral securing
 
loans and other
 
exposures. In our
 
prime brokerage, securities finance
 
and Lombard lending
businesses,
 
we
 
extend
 
substantial
 
amounts
 
of
 
credit
 
against
 
securities
 
collateral,
 
the
 
value
 
or
 
liquidity
 
of
 
which
 
may
decline
 
rapidly.
 
Market
 
closures
 
and
 
the
 
imposition
 
of
 
exchange
 
controls,
 
sanctions
 
or
 
other
 
measures
 
may limit
 
our
ability to
 
settle existing
 
transactions
 
or to
 
realize on
 
collateral, which
 
may result
 
in
 
unexpected
 
increases in
 
exposures.
Our Swiss mortgage
 
and corporate
 
lending portfolios
 
are a large
 
part of our
 
overall lending.
 
We are therefore
 
exposed
to the risk
 
of adverse
 
economic developments
 
in Switzerland,
 
including property
 
valuations
 
in the housing
 
market, the
strength of the Swiss franc and its effect on Swiss exports, return
 
to negative interest rates applied by the Swiss National
Bank, economic
 
conditions within
 
the Eurozone
 
or the
 
EU, and
 
the evolution
 
of agreements
 
between Switzerland
 
and
the EU or EEA, which
 
represent Switzerland’s
 
largest export market.
 
We have exposures
 
related to real estate
 
in various
countries, including a substantial Swiss mortgage portfolio. Although we believe this portfolio is prudently managed, we
could nevertheless be exposed
 
to losses if a substantial deterioration in
 
the Swiss real estate market were
 
to occur.
 
As we experienced in 2020, under
 
the IFRS 9 expected credit loss (ECL) regime, credit
 
loss expenses may increase rapidly
at the onset
 
of an economic
 
downturn as a
 
result of higher
 
levels of credit impairments
 
(stage 3), as
 
well as higher ECL
from stages 1 and 2. Substantial
 
increases in ECL could
 
exceed expected loss for
 
regulatory capital purposes and adversely
affect our common equity tier 1 (CET1)
 
capital and regulatory capital ratios.
Interest rate trends and changes
 
could negatively affect our financial results
UBS’s
 
businesses are
 
sensitive to
 
changes
 
in interest
 
rate trends.
 
A prolonged
 
period
 
of low
 
or negative
 
interest rates,
particularly in
 
Switzerland and
 
the Eurozone,
 
adversely affected the
 
net interest
 
income generated
 
by UBS’s
 
Personal &
Corporate Banking and Global Wealth Management businesses prior to 2022. Actions that UBS took to mitigate adverse
effects on income, such
 
as the introduction
 
of selective deposit
 
fees or minimum
 
lending rates, contributed
 
to outflows
of customer
 
deposits
 
(a key
 
source
 
of funding
 
for UBS),
 
net new
 
money outflows
 
and
 
a declining
 
market share
 
in its
Swiss lending business.
During 2022, interest rates
 
increased sharply in the US and
 
most other markets,
 
including a shift from negative to
 
positive
central bank policy rates in the Eurozone and Switzerland, as central banks responded to higher inflation. Higher interest
rates generally
 
benefit
 
UBS’s
 
net
 
interest
 
income.
 
However,
 
as
 
returns
 
on
 
alternatives
 
to
 
deposits
 
increase
 
with
 
rising
interest rates, such as returns
 
on money market funds, UBS has
 
experienced outflows from customer deposits
 
and shifts
of deposits
 
from lower-interest account
 
types to accounts
 
bearing higher
 
interest rates,
 
such as
 
savings and
 
certificates
of
 
deposit,
 
particularly in
 
the
 
US,
 
where
 
rates have
 
rapidly
 
increased.
 
Customer
 
deposit
 
outflows
 
may require
 
UBS
 
to
obtain alternative funding,
 
which would likely be more costly than customer deposits.
 
Our shareholders’ equity and
 
capital are also affected by changes in
 
interest rates.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Risk
 
factors
 
58
 
Currency
 
fluctuation may have an adverse effect
 
on our profits, balance
 
sheet and regulatory capital
 
We are
 
subject to
 
currency fluctuation
 
risks. Although
 
our change
 
from the
 
Swiss franc
 
to the
 
US dollar
 
as our
 
Group
presentation
 
currency
 
in
 
2018
 
reduces
 
our
 
exposure
 
to
 
currency
 
fluctuation
 
risks
 
with
 
respect
 
to
 
the
 
Swiss
 
franc,
 
a
substantial portion
 
of our
 
assets and
 
liabilities are
 
denominated
 
in currencies
 
other than
 
the US
 
dollar.
 
Additionally,
 
in
order to
 
hedge our
 
CET1 capital
 
ratio, our
 
CET1 capital
 
must have
 
foreign
 
currency exposure,
 
which leads
 
to currency
sensitivity. As
 
a consequence,
 
it is not possible
 
to simultaneously fully hedge
 
both the amount of capital
 
and the capital
ratio. Accordingly, changes in foreign exchange
 
rates may
 
adversely affect our
 
profits, balance sheet,
 
and capital, leverage
and liquidity coverage ratios.
 
Regulatory and legal
 
risks
Material legal and regulatory risks arise in
 
the conduct of our business
As a
 
global financial services
 
firm operating
 
in more
 
than 50
 
countries, we
 
are subject to
 
many different
 
legal, tax
 
and
regulatory regimes,
 
including extensive
 
regulatory oversight,
 
and are
 
exposed to
 
significant liability risk.
 
We are subject
to a large number of
 
claims, disputes, legal proceedings and government investigations, and we expect that our ongoing
business activities will
 
continue
 
to give rise
 
to such
 
matters in
 
the future.
 
The extent
 
of our
 
financial exposure
 
to these
and other matters is material and could substantially exceed
 
the level of provisions that we have established.
 
We are not
able to predict the financial and
 
non-financial consequences these
 
matters may have when
 
resolved.
 
We may be subject to adverse preliminary determinations or
 
court decisions that may negatively affect public perception
and
 
our reputation,
 
result in
 
prudential
 
actions
 
from regulators,
 
and
 
cause us
 
to record
 
additional
 
provisions
 
for such
matters even when we believe we have substantial defenses and expect to ultimately achieve a more
 
favorable outcome.
This risk
 
is illustrated
 
by the
 
award
 
of aggregate
 
penalties and
 
damages
 
of EUR
 
4.5bn by
 
the court
 
of first
 
instance in
France. This
 
award was
 
reduced
 
to an
 
aggregate of
 
EUR 1.8bn
 
by the Court
 
of Appeal,
 
and UBS
 
has further
 
appealed
this judgment.
 
Resolution of regulatory proceedings
 
may require us to obtain waivers of regulatory
 
disqualifications to maintain certain
operations,
 
may entitle regulatory
 
authorities to
 
limit, suspend
 
or terminate licenses
 
and regulatory
 
authorizations,
 
and
may
 
permit
 
financial
 
market
 
utilities
 
to
 
limit,
 
suspend
 
or
 
terminate
 
our
 
participation
 
in
 
them.
 
Failure
 
to
 
obtain
 
such
waivers, or
 
any
 
limitation,
 
suspension
 
or
 
termination of
 
licenses,
 
authorizations
 
or participations,
 
could
 
have
 
material
adverse consequences for us.
Our settlements
 
with governmental
 
authorities
 
in connection
 
with foreign
 
exchange,
 
London
 
Interbank Offered
 
Rates
(LIBOR) and other benchmark interest
 
rates starkly illustrate the
 
significantly increased
 
level of financial and reputational
risk now associated with regulatory matters in major jurisdictions. In
 
connection with investigations related to LIBOR and
other benchmark
 
rates and to
 
foreign exchange
 
and precious
 
metals, very large
 
fines and
 
disgorgement amounts
 
were
assessed against
 
us, and
 
we were
 
required to
 
enter guilty pleas
 
despite our
 
full cooperation
 
with the authorities
 
in the
investigations,
 
and
 
despite
 
our receipt
 
of
 
conditional
 
leniency or
 
conditional
 
immunity from
 
anti-trust
 
authorities
 
in
 
a
number of jurisdictions, including
 
the US and Switzerland.
For a number of years,
 
we have been,
 
and we
 
continue to
 
be, subject to
 
a very high
 
level of regulatory
 
scrutiny and
 
to
certain regulatory
 
measures that
 
constrain our
 
strategic flexibility.
 
We believe
 
we have
 
remediated the
 
deficiencies that
led to significant losses in the
 
past and made substantial changes in our controls and conduct risk frameworks to address
the issues
 
highlighted by
 
the LIBOR-related, foreign
 
exchange and
 
precious metals regulatory
 
resolutions. We
 
have also
undertaken extensive efforts to implement new
 
regulatory requirements and
 
meet heightened expectations.
 
We continue
 
to be
 
in active
 
dialogue
 
with regulators
 
concerning the
 
actions we
 
are taking
 
to improve
 
our operational
risk management, risk control, anti
 
-money laundering, data management and
 
other frameworks, and
 
otherwise seek to
meet supervisory expectations, but
 
there can be no assurance that our efforts will have the desired effects. As
 
a result of
this history, our level of risk with respect to
 
regulatory enforcement may be greater
 
than that of some of
 
our peers.
Substantial changes in regulation
 
may adversely affect our businesses and
 
our ability to execute our strategic plans
Since the
 
financial crisis
 
of 2008,
 
we have
 
been
 
subject to
 
significant regulatory
 
requirements,
 
including
 
recovery and
resolution planning,
 
changes in
 
capital and prudential
 
standards, changes
 
in taxation
 
regimes as a
 
result of
 
changes in
governmental administrations,
 
new
 
and revised
 
market standards
 
and
 
fiduciary duties,
 
as well
 
as new
 
and developing
environmental, social and governance standards and requirements. Notwithstanding attempts by regulators to
 
align their
efforts,
 
the
 
measures
 
adopted
 
or
 
proposed
 
for
 
banking
 
regulation
 
differ
 
significantly
 
across
 
the
 
major
 
jurisdictions,
making it increasingly difficult
 
to manage a global institution.
 
In addition, Swiss
 
regulatory changes with
 
regard to such
matters
 
as
 
capital
 
and
 
liquidity
 
have
 
often
 
proceeded
 
more
 
quickly
 
than
 
those
 
in
 
other
 
major
 
jurisdictions,
 
and
Switzerland’s requirements for major international banks are among
 
the strictest
 
of the major financial
 
centers. This could
put Swiss banks, such as UBS, at a disadvantage when competing
 
with peer financial institutions subject to more lenient
regulation or with unregulated
 
non-bank competitors.
Our
 
implementation
 
of
 
additional
 
regulatory
 
requirements
 
and
 
changes
 
in
 
supervisory
 
standards,
 
as
 
well
 
as
 
our
compliance with
 
existing
 
laws and
 
regulations,
 
continue to
 
receive heightened
 
scrutiny from
 
supervisors. If
 
we do
 
not
meet supervisory expectations in
 
relation to these or other matters, or if additional
 
supervisory or regulatory issues arise,
we would
 
likely be
 
subject to
 
further regulatory
 
scrutiny,
 
as well
 
as measures
 
that
 
may further
 
constrain
 
our strategic
flexibility.
 
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Risk
 
factors
 
59
 
Resolvability and
 
resolution
 
and
 
recovery planning:
We have
 
moved significant
 
operations
 
into subsidiaries
 
to improve
resolvability and meet other regulatory requirements, and this has resulted in substantial implementation costs, increased
our
 
capital
 
and
 
funding
 
costs
 
and
 
reduced
 
operational
 
flexibility.
 
For
 
example,
 
we
 
have
 
transferred
 
all
 
of
 
our
 
US
subsidiaries
 
under
 
a
 
US
 
intermediate
 
holding
 
company
 
to
 
meet
 
US
 
regulatory
 
requirements,
 
and
 
have
 
transferred
substantially all the operations of Personal & Corporate Banking
 
and Global Wealth Management booked in Switzerland
to UBS Switzerland AG to improve resolvability.
 
These
 
changes
 
create
 
operational,
 
capital,
 
liquidity,
 
funding
 
and
 
tax
 
inefficiencies.
 
Our
 
operations
 
in
 
subsidiaries
 
are
subject
 
to
 
local capital,
 
liquidity,
 
stable
 
funding,
 
capital planning
 
and
 
stress
 
testing
 
requirements.
 
These
 
requirements
have resulted in increased capital and liquidity requirements in affected subsidiaries, which limit our operational flexibility
and negatively affect our ability
 
to benefit from synergies
 
between business units and to distribute
 
earnings to the Group.
Under the Swiss too-big-to-fail (TBTF) framework, we are required to put in place viable emergency plans to preserve the
operation
 
of
 
systemically
 
important
 
functions
 
in
 
the
 
event
 
of
 
a
 
failure.
 
Moreover,
 
under
 
this
 
framework
 
and
 
similar
regulations in
 
the US,
 
the UK,
 
the EU
 
and other
 
jurisdictions in
 
which we
 
operate, we
 
are required
 
to prepare
 
credible
recovery and
 
resolution plans detailing
 
the measures
 
that would be
 
taken to recover
 
in a significant adverse
 
event or
 
in
the event of winding down
 
the Group or the operations in a host
 
country through resolution or insolvency proceedings.
If a recovery or resolution plan that we produce is determined by the relevant authority to be inadequate
 
or not credible,
relevant regulation may permit
 
the authority to place limitations
 
on the scope or
 
size of our business in that jurisdiction,
or oblige us to hold higher amounts of capital or liquidity or to change our legal structure or business
 
in order to remove
the relevant impediments to resolution.
Capital and prudential standards:
As an internationally active Swiss systemically relevant bank (an SRB), we are subject to
capital and total loss-absorbing capacity (TLAC) requirements
 
that are among the most stringent in the world. Moreover,
many
 
of
 
our
 
subsidiaries
 
must
 
comply
 
with
 
minimum
 
capital,
 
liquidity
 
and
 
similar
 
requirements
 
and,
 
as
 
a
 
result,
 
UBS
Group AG
 
and UBS
 
AG have contributed
 
a significant
 
portion of
 
their capital
 
and provide
 
substantial liquidity
 
to these
subsidiaries. These funds are available to meet funding
 
and collateral needs in the relevant entities, but are generally not
readily available for use by the Group
 
as a whole.
 
We
 
expect
 
our
 
risk-weighted
 
assets
 
(RWA)
 
to
 
further
 
increase
 
as
 
the
 
effective
 
date
 
for
 
additional
 
capital
 
standards
promulgated by the Basel Committee on
 
Banking
 
Supervision (the BCBS) draws nearer.
 
Increases
 
in
 
capital and
 
liquidity
 
standards
 
could
 
significantly curtail
 
our
 
ability to
 
pursue
 
strategic opportunities
 
or
 
to
return capital to shareholders.
Market regulation and fiduciary standards:
Our wealth and asset management
 
businesses operate
 
in an environment of
increasing regulatory scrutiny and changing standards with respect to fiduciary
 
and other standards of care and the focus
on
 
mitigating or
 
eliminating
 
conflicts of
 
interest between
 
a manager
 
or advisor
 
and
 
the client,
 
which require
 
effective
implementation
 
across
 
the
 
global
 
systems and
 
processes
 
of
 
investment managers
 
and
 
other
 
industry participants.
 
For
example, we have
 
made material
 
changes to
 
our business
 
processes, policies
 
and the
 
terms on
 
which we
 
interact with
these clients in order to comply with SEC Regulation Best
 
Interest, which is intended to enhance and clarify the duties of
brokers
 
and
 
investment advisers
 
to retail
 
customers, the
 
Volcker
 
Rule,
 
which limits
 
our ability
 
to engage
 
in proprietary
trading, as
 
well as
 
changes in
 
European
 
and Swiss
 
market conduct
 
regulation. Future
 
changes in
 
the regulation
 
of our
duties to customers may require us to make further changes
 
to our businesses, which would result in additional expense
and may adversely affect our
 
business. We may also become subject to other similar
 
regulations substantively limiting the
types of activities in which we may engage
 
or the way we conduct our operations.
In many
 
instances, we provide
 
services on a cross-border
 
basis, and we
 
are therefore sensitive
 
to barriers
 
restricting market
access for
 
third-country
 
firms. In
 
particular, efforts
 
in the
 
EU to
 
harmonize the
 
regime for
 
third-country firms
 
to access
the European market may have the effect of creating new barriers that adversely affect our
 
ability to conduct business in
these
 
jurisdictions
 
from
 
Switzerland.
 
In
 
addition,
 
a
 
number
 
of
 
jurisdictions
 
are
 
increasingly
 
regulating
 
cross-border
activities based on determinations of
 
equivalence of home country
 
regulation, substituted compliance or similar principles
of
 
comity.
 
A
 
negative
 
determination
 
with
 
respect
 
to
 
Swiss
 
equivalence
 
could
 
limit
 
our
 
access
 
to
 
the
 
market
 
in
 
those
jurisdictions and
 
may negatively influence
 
our ability
 
to act as
 
a global
 
firm. For
 
example, the
 
EU declined
 
to extend
 
its
equivalence determination for Swiss
 
exchanges, which lapsed as
 
of 30 June 2019.
 
UBS
 
experienced cross-border
 
outflows over
 
a number
 
of years
 
as a
 
result of
 
heightened
 
focus by
 
fiscal authorities
 
on
cross-border investment and fiscal amnesty
 
programs, in anticipation of the implementation
 
in Switzerland of the global
automatic
 
exchange
 
of
 
tax
 
information,
 
and
 
as
 
a
 
result
 
of
 
the
 
measures
 
UBS
 
has
 
implemented
 
in
 
response
 
to
 
these
changes. Further changes in local tax
 
laws or regulations and
 
their enforcement, additional cross
 
-border tax information
exchange
 
regimes,
 
national
 
tax amnesty
 
or
 
enforcement
 
programs
 
or
 
similar
 
actions
 
may affect
 
our
 
clients’ ability
 
or
willingness to do business
 
with us and could result in additional cross
 
-border outflows.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Risk
 
factors
 
60
 
If we experience financial difficulties,
 
FINMA has the power to open
 
restructuring or liquidation proceedings or
 
impose
protective measures in relation to UBS
 
Group AG, UBS AG or UBS
 
Switzerland AG, and such proceedings
 
or measures
may have a material adverse effect on
 
our shareholders and creditors
Under the
 
Swiss Banking
 
Act, FINMA
 
is able to
 
exercise broad
 
statutory powers
 
with respect
 
to Swiss banks
 
and Swiss
parent
 
companies
 
of
 
financial
 
groups,
 
such
 
as
 
UBS
 
Group
 
AG,
 
UBS
 
AG
 
and
 
UBS Switzerland AG,
 
if
 
there
 
is
 
justified
concern that the
 
entity is over-indebted,
 
has serious
 
liquidity problems
 
or,
 
after the expiration
 
of any relevant
 
deadline,
no
 
longer
 
fulfills
 
capital
 
adequacy
 
requirements.
 
Such
 
powers
 
include
 
ordering
 
protective
 
measures,
 
instituting
restructuring
 
proceedings
 
(and
 
exercising
 
any
 
Swiss
 
resolution
 
powers
 
in
 
connection
 
therewith),
 
and
 
instituting
liquidation proceedings,
 
all of
 
which may
 
have a
 
material adverse
 
effect
 
on shareholders
 
and creditors
 
or may
 
prevent
UBS Group AG, UBS
 
AG or UBS Switzerland AG from paying
 
dividends or making payments on
 
debt obligations.
UBS
 
would
 
have limited
 
ability
 
to challenge
 
any such
 
protective
 
measures,
 
and
 
creditors
 
and
 
shareholders
 
would
 
also
have limited ability under Swiss law
 
or in Swiss courts to reject them, seek their
 
suspension, or challenge their imposition,
including measures that require
 
or result in the deferment
 
of payments.
If restructuring
 
proceedings
 
are opened with
 
respect to UBS
 
Group AG,
 
UBS AG or UBS
 
Switzerland AG, the
 
resolution
powers that FINMA may exercise include the power to: (i) transfer all
 
or some of the assets, debt and other liabilities, and
contracts
 
of
 
the
 
entity subject
 
to
 
proceedings
 
to
 
another
 
entity; (ii)
 
stay
 
for
 
a
 
maximum
 
of
 
two
 
business
 
days
 
(a) the
termination of,
 
or the exercise
 
of rights
 
to terminate,
 
netting rights,
 
(b) rights
 
to enforce
 
or dispose
 
of certain
 
types of
collateral
 
or
 
(c)
 
rights
 
to
 
transfer
 
claims,
 
liabilities
 
or
 
certain
 
collateral,
 
under
 
contracts to
 
which
 
the
 
entity
 
subject
 
to
proceedings is a party; and / or (iii) partially or fully write down the equity capital and regulatory capital
 
instruments and,
if such regulatory capital is fully written down, write
 
down or convert into equity the other debt instruments of the entity
subject
 
to
 
proceedings.
 
Shareholders
 
and
 
creditors
 
would
 
have
 
no
 
right
 
to
 
reject,
 
or
 
to
 
seek
 
the
 
suspension
 
of,
 
any
restructuring
 
plan
 
pursuant
 
to
 
which
 
such
 
resolution
 
powers
 
are
 
exercised.
 
They
 
would
 
have
 
only
 
limited
 
rights
 
to
challenge
 
any
 
decision
 
to
 
exercise resolution
 
powers
 
or
 
to
 
have
 
that
 
decision
 
reviewed
 
by
 
a
 
judicial or
 
administrative
process or otherwise.
Upon
 
full
 
or partial
 
write-down
 
of the
 
equity and
 
regulatory
 
capital instruments
 
of
 
the
 
entity subject
 
to
 
restructuring
proceedings, the relevant shareholders
 
and creditors would
 
receive no payment in
 
respect of the equity and
 
debt that is
written down,
 
the
 
write-down
 
would
 
be
 
permanent,
 
and
 
the investors
 
would
 
likely not,
 
at
 
such
 
time or
 
at
 
any
 
time
thereafter,
 
receive any
 
shares or
 
other participatio
 
n
 
rights, or
 
be entitled to
 
any write-up
 
or any other
 
compensation in
the event of a potential subsequent
 
recovery of the debtor.
 
If FINMA orders
 
the conversion of debt
 
of the entity subject
to restructuring proceedings
 
into equity,
 
the securities received
 
by the investors may
 
be worth significantly less than
 
the
original debt and may have a significantly different risk profile. In addition, creditors receiving equity would be effectively
subordinated to all creditors of the restructured entity in the event of a subsequent winding up, liquidation or dissolution
of the restructured entity,
 
which would increase the risk that
 
investors would lose
 
all or some of their investment.
 
FINMA has significant discretion in the exercise of its powers
 
in connection with restructuring proceedings.
 
Furthermore,
certain categories of debt obligations, such as certain types of deposits, are subject to preferential treatment. As a result,
holders of
 
obligations of an
 
entity subject to
 
a Swiss restructuring
 
proceeding
 
may have their
 
obligations written
 
down
or converted into
 
equity even though obligations ranking
 
on par
 
with such
 
obligations are not
 
written down or
 
converted.
 
Developments in sustainability, climate, environmental
 
and social standards and
 
regulations may affect our business
 
and
impact our ability to fully realize our goals
We have set ambitious goals
 
for environmental, social and governance (ESG)
 
matters. These goals include our
 
ambitions
for environmental sustainability
 
in our operations, including
 
carbon emissions,
 
in the business
 
we do with clients and
 
in
products that we offer.
 
They also include goals or ambitions for diversity in our workforce and supply chain, and support
for the United
 
Nations Sustainable
 
Development
 
Goals. There
 
is substantial
 
uncertainty
 
as to
 
the scope
 
of actions
 
that
may be required of
 
us, governments and others to
 
achieve the goals we have set, and
 
many of our goals and
 
objectives
are
 
only
 
achievable
 
with
 
a
 
combination
 
of
 
government
 
and
 
private
 
action.
 
National
 
and
 
international
 
standards
 
and
expectations,
 
industry
 
and
 
scientific practices,
 
and
 
regulatory
 
taxonomies
 
and
 
disclosure
 
obligations
 
addressing
 
these
matters are relatively
 
immature and
 
are rapidly evolving.
 
In many cases,
 
goals and
 
standards are
 
defined at
 
a high level
and
 
can
 
be
 
subject
 
to
 
different
 
interpretations.
 
In
 
addition,
 
there
 
are
 
significant
 
limitations
 
in
 
the
 
data
 
available
 
to
measure our climate and other goals. Although we have defined and disclosed our goals based on the standards existing
at
 
the
 
time of
 
disclosure,
 
there
 
can
 
be
 
no
 
assurance (i)
 
that
 
the
 
various
 
ESG
 
regulatory and
 
disclosure
 
regimes
 
under
which we
 
operate will
 
not
 
come
 
into conflict
 
with
 
one
 
another,
 
(ii) that
 
the current
 
standards
 
will not
 
be interpreted
differently than our understanding
 
or change in a manner that substantially increases
 
the cost or effort for us to achieve
such goals or (iii) that additional data or methods, whether voluntary or required by regulation,
 
may substantially change
our calculation of our goals
 
and aspirations.
 
It is possible that such
 
goals may prove
 
to be considerably more
 
difficult or
even
 
impossible
 
to
 
achieve.
 
The
 
evolving
 
standards
 
may
 
also
 
require
 
us
 
to
 
substantially
 
change
 
the
 
stated
 
goals
 
and
ambitions. If we are
 
not able to achieve
 
the goals we have
 
set, or can
 
only do so at significant
 
expense to our business,
we
 
may
 
fail
 
to
 
meet
 
regulatory
 
expectations,
 
incur
 
damage
 
to
 
our
 
reputation
 
or
 
be
 
exposed
 
to
 
an
 
increased
 
risk
 
of
litigation or other adverse action.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Risk
 
factors
 
61
 
While ESG regulatory regimes and international standards are being developed, including to
 
require consideration of ESG
risks in investment decisions,
 
some jurisdictions,
 
notably in the US, have
 
developed rules
 
restricting the consideration
 
of
ESG factors in investment and business
 
decisions. Under these anti-ESG rules,
 
companies that are perceived as
 
boycotting
or discriminating against certain industries may be restricted from doing business with certain governmental
 
entities. Our
businesses
 
may
 
be
 
adversely
 
affected
 
if
 
UBS
 
is
 
considered
 
as
 
discriminating
 
against
 
companies
 
based
 
on
 
ESG
considerations, or if further anti-ESG rules
 
are developed or broadened.
Our financial results may be negatively
 
affected by changes to assumptions
 
and valuations, as well as changes
 
to
accounting standards
We prepare our
 
consolidated financial statements
 
in accordance with
 
International Financial Reporting
 
Standards (IFRS).
The application
 
of these
 
accounting standards
 
requires the
 
use of
 
judgment based
 
on
 
estimates and
 
assumptions that
may
 
involve
 
significant
 
uncertainty
 
at
 
the
 
time
 
they
 
are
 
made.
 
This
 
is
 
the
 
case,
 
for
 
example,
 
with
 
respect
 
to
 
the
measurement of fair
 
value of financial instruments,
 
the recognition of
 
deferred tax assets
 
(DTAs),
 
the assessment of the
impairment of goodwill, expected credit losses
 
and estimation of provisions
 
for litigation, regulatory and similar matters.
Such
 
judgments,
 
including
 
the
 
underlying
 
estimates
 
and
 
assumptions,
 
which
 
encompass
 
historical
 
experience,
expectations of
 
the future
 
and other
 
factors, are
 
regularly evaluated
 
to determine
 
their continuing
 
relevance based
 
on
current conditions.
 
Using different
 
assumptions
 
could
 
cause the
 
reported
 
results to
 
differ.
 
Changes
 
in assumptions,
 
or
failure to make the changes necessary to
 
reflect evolving market conditions, may have a significant
 
effect on the financial
statements
 
in
 
the
 
periods
 
when
 
changes
 
occur.
 
Estimates
 
of
 
provisions
 
may be
 
subject
 
to
 
a
 
wide
 
range
 
of
 
potential
outcomes and
 
significant uncertainty.
 
For example,
 
the broad
 
range of
 
potential outcomes
 
in our
 
legal proceeding
 
s
 
in
France
 
and in the US relating to residential mortgage-backed securities increase the uncertainty associated with assessing
the
 
appropriate
 
provision.
 
If
 
the
 
estimates
 
and
 
assumptions
 
in
 
future
 
periods
 
deviate
 
from
 
the
 
current
 
outlook,
 
our
financial results may also be negatively
 
affected.
 
Changes to IFRS or interpretations thereof may cause future
 
reported results and financial position to
 
differ from current
expectations, or
 
historical results
 
to differ
 
from those
 
previously reported
 
due to
 
the adoption
 
of accounting
 
standards
on a retrospective basis. Such changes may also affect our
 
regulatory capital and ratios. For example, the introduction
 
of
the
 
ECL
 
regime
 
under
 
IFRS 9
 
in
 
2018
 
fundamentally
 
changed
 
how
 
credit
 
risk arising
 
from
 
loans,
 
loan
 
commitments,
guarantees
 
and
 
certain revocable
 
facilities
 
is
 
accounted
 
for.
 
Under
 
the
 
ECL
 
regime,
 
credit
 
loss
 
expenses
 
may increase
rapidly at the
 
onset of an economic downturn as a
 
result of higher levels
 
of credit impairments (stage 3), as well as
 
higher
ECL from stages 1 and 2, only
 
gradually diminishing once the economic outlook
 
improves. As we observed in
 
2020, this
effect
 
may be
 
more
 
pronounced
 
in
 
a
 
deteriorating
 
economic
 
environment.
 
Substantial
 
increases
 
in
 
ECL
 
could
 
exceed
expected loss for regulatory capital purposes
 
and adversely affect our CET1 capital and
 
regulatory capital ratios.
 
We may be unable to maintain our capital
 
strength
Capital
 
strength
 
enables
 
us
 
to
 
grow
 
our
 
businesses
 
and
 
absorb
 
increases
 
in
 
regulatory
 
and
 
capital
 
requirements.
 
It
reassures our clients and stakeholders,
 
allows us to
 
maintain our capital return
 
policy and contributes to
 
our credit ratings.
Our capital
 
and
 
leverage ratios
 
are driven
 
primarily by
 
RWA, the
 
leverage ratio
 
denominator
 
and
 
eligible capital,
 
all of
which may fluctuate based on a number of factors, some of which are outside of our control. Our ability to maintain our
capital ratios is subject
 
to numerous risks, including the financial results of
 
our businesses, the effect of changes to
 
capital
standards, methodologies and interpretations
 
that may
 
adversely affect the
 
calculation of our capital
 
ratios, the imposition
of
 
risk
 
add-ons
 
or
 
capital
 
buffers,
 
and
 
the
 
application
 
of
 
additional
 
capital,
 
liquidity
 
and
 
similar
 
requirements
 
to
subsidiaries. The
 
results of our
 
businesses may
 
be adversely
 
affected by
 
events arising
 
from other risk
 
factors described
herein. In some cases, such
 
as litigation and regulatory risk and operational
 
risk events, losses may be
 
sudden and large.
These risks could reduce
 
the amount of
 
capital available for return
 
to shareholders and
 
hinder our ability to achieve
 
our
capital returns target of a progressive
 
cash dividend coupled with
 
a share repurchase program.
Our eligible capital may be
 
reduced by losses recognized within net profit or other comprehensive income. Eligible capital
may also
 
be reduced
 
for other
 
reasons, including
 
acquisitions
 
that change
 
the level
 
of goodwill,
 
changes in
 
temporary
differences
 
related
 
to
 
DTAs
 
included
 
in
 
capital, adverse
 
currency
 
movements
 
affecting
 
the
 
value
 
of
 
equity,
 
prudential
adjustments that may be required due
 
to the valuation uncertainty associated with certain types of positions,
 
changes in
regulatory
 
interpretations
 
on
 
the
 
inclusion
 
or
 
exclusion
 
of
 
items contributing
 
to
 
our shareholders
 
equity
 
in
 
regulatory
capital, and changes in the
 
value of certain
 
pension fund assets and liabilities
 
or in the
 
interest rate and other
 
assumptions
used to calculate the changes
 
in our net defined benefit obligation
 
recognized in other comprehensive income.
RWA
 
are
 
driven
 
by
 
our
 
business
 
activities, by
 
changes
 
in
 
the
 
risk profile
 
of
 
our
 
exposures,
 
by
 
changes
 
in
 
our foreign
currency exposures and
 
foreign exchange rates, and by regulation.
 
For instance, substantial market volatility, a widening
of credit spreads,
 
adverse currency movements,
 
increased counterparty risk,
 
deterioration in
 
the economic environment
or increased
 
operational risk
 
could
 
result in
 
an increase
 
in RWA.
 
Changes in
 
the calculation
 
of RWA,
 
the imposition
 
of
additional
 
supplemental
 
RWA
 
charges or
 
multipliers applied
 
to certain
 
exposures
 
and
 
other methodology
 
changes,
 
as
well as the finalization of
 
the Basel III framework
 
and Fundamental Review of the Trading
 
Book promulgated by the BCBS,
which are expected to increase our RWA.
The
 
leverage
 
ratio
 
is
 
a
 
balance
 
sheet-driven
 
measure
 
and
 
therefore
 
limits
 
balance
 
sheet-intensive
 
activities,
 
such
 
as
lending,
 
more than
 
activities that
 
are less
 
balance sheet
 
intensive, and
 
it may
 
constrain
 
our business
 
even if
 
we satisfy
other risk-based capital requirements. Our leverage ratio denominator is driven by, among other things, the level
 
of client
activity, including
 
deposits
 
and
 
loans,
 
foreign
 
exchange
 
rates,
 
interest
 
rates
 
and
 
other
 
market
 
factors.
 
Many
 
of
 
these
factors are wholly or partly outside
 
of our control.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Risk
 
factors
 
62
 
The effect of taxes on our financial results
 
is significantly influenced by tax law
 
changes and reassessments
 
of our
deferred tax assets
 
Our
 
effective
 
tax
 
rate is
 
highly
 
sensitive
 
to
 
our
 
performance,
 
our
 
expectation
 
of
 
future
 
profitability
 
and
 
any
 
potential
increases
 
or
 
decreases
 
in
 
statutory
 
tax
 
rates,
 
such
 
as
 
any
 
potential
 
increase
 
in
 
the
 
US
 
federal
 
corporate
 
tax
 
rate.
Furthermore,
 
based on
 
prior years’ tax losses,
 
we have recognized
 
DTAs
 
reflecting the
 
probable
 
recoverable level based
on future taxable profit as informed by our business plans. If our performance is expected to produce diminished taxable
profit in future years, particularly in the
 
US, we may be required to write
 
down all or a portion of the
 
currently recognized
DTAs
 
through the income
 
statement in excess of
 
anticipated amortization.
 
This would
 
have the effect of
 
increasing
 
our
effective tax rate in the year in which any write-downs
 
are taken. Conversely, if we expect the performance of
 
entities in
which
 
we
 
have
 
unrecognized
 
tax
 
losses
 
to
 
improve,
 
particularly
 
in
 
the
 
US
 
or
 
the
 
UK,
 
we
 
could
 
potentially
 
recognize
additional DTAs.
 
The effect of
 
doing so
 
would be to
 
reduce our
 
effective tax rate in
 
years in which
 
additional DTAs
 
are
recognized
 
and
 
to
 
increase
 
our
 
effective tax
 
rate
 
in
 
future
 
years. Our
 
effective
 
tax
 
rate is
 
also
 
sensitive
 
to
 
any
 
future
reductions
 
in statutory
 
tax rates,
 
particularly in
 
the US,
 
which would
 
cause the
 
expected future
 
tax benefit
 
from items
such as tax loss carry-
 
forwards in the affected
 
locations to diminish in
 
value. This, in turn, would
 
cause a write-down
 
of
the associated DTAs.
 
Conversely,
 
an increase in US
 
corporate tax rates would result
 
in an increase in the Group’s
 
DTAs.
We generally revalue our
 
DTAs
 
in the fourth quarter of the
 
financial year based on
 
a reassessment of
 
future profitability
taking into
 
account
 
our updated
 
business plans.
 
We consider
 
the performance
 
of
 
our businesses
 
and
 
the accuracy
 
of
historical forecasts,
 
tax rates and
 
other factors in
 
evaluating the
 
recoverability of
 
our DTAs,
 
including the remaining
 
tax
loss carry-forward
 
period and our
 
assessment of expected
 
future taxable profits
 
over the
 
life of DTAs.
 
Estimating future
profitability is
 
inherently subjective
 
and is
 
particularly sensitive
 
to future
 
economic, market
 
and other
 
conditions, which
are difficult to predict.
 
Our results
 
in past
 
years have demonstrated
 
that changes
 
in the recognition
 
of DTAs
 
can have a
 
very significant
 
effect
on our reported results. Any future change in the manner in which UBS remeasures DTAs could affect UBS’s effective tax
rate, particularly in the year in which the
 
change is made.
Our full-year effective tax rate
 
could change if aggregate tax expenses in
 
respect of profits from
 
branches and subsidiaries
without loss
 
coverage differ
 
from what
 
is expected,
 
or if
 
branches
 
and subsidiaries
 
generate tax
 
losses that
 
we cannot
benefit from through the
 
income statement. In particular,
 
losses at entities or
 
branches that cannot offset
 
for tax purposes
taxable profits in other Group entities, and
 
which do not result
 
in additional DTA recognition, may increase our
 
effective
tax rate. In addition,
 
tax laws or the tax authorities
 
in countries where we have
 
undertaken legal structure
 
changes may
cause entities to be subject to taxation as permanent establishments or
 
may prevent the transfer of tax losses incurred in
one legal
 
entity to newly
 
organized or
 
reorganized
 
subsidiaries or
 
affiliates or
 
may impose
 
limitations on
 
the utilization
of tax losses that relate
 
to businesses formerly
 
conducted by the transferor.
 
Were this to occur
 
in situations where
 
there
were also
 
limited planning opportunities
 
to utilize the
 
tax losses in the
 
originating entity, the DTAs
 
associated with such
tax losses may be required
 
to be written down through the
 
income statement.
Changes in tax
 
law may
 
materially affect our
 
effective tax rate,
 
and, in some
 
cases, may
 
substantially affect the
 
profitability
of certain activities. In addition,
 
statutory and regulatory changes, as
 
well as changes to the way in which courts and
 
tax
authorities interpret tax laws, including assertions that
 
we are required to pay taxes
 
in a jurisdiction as a result of
 
activities
connected to
 
that jurisdiction
 
constituting a
 
permanent establishment
 
or similar theory,
 
and changes
 
in our assessment
of
 
uncertain
 
tax
 
positions,
 
could
 
cause
 
the
 
amount
 
of
 
taxes
 
we
 
ultimately
 
pay
 
to
 
materially
 
differ
 
from
 
the
 
amount
accrued.
Strategy, management
 
and operational risks
Operational risks affect our business
Our
 
businesses
 
depend
 
on
 
our ability
 
to
 
process
 
a
 
large
 
number
 
of
 
transactions,
 
many
 
of
 
which
 
are
 
complex,
 
across
multiple and diverse markets in different
 
currencies, to comply with requirements
 
of many different legal and
 
regulatory
regimes
 
to
 
which
 
we
 
are
 
subject
 
and
 
to
 
prevent,
 
or
 
promptly
 
detect
 
and
 
stop,
 
unauthorized,
 
fictitious
 
or
 
fraudulent
transactions. We also rely on access to, and on the functioning of, systems
 
maintained by third parties, including clearing
systems, exchanges,
 
information proce
 
ssors and
 
central counterparties.
 
Any failure
 
of our
 
or third
 
-party systems could
have
 
an
 
adverse
 
effect
 
on
 
us.
 
These
 
risks
 
may
 
be
 
greater
 
as
 
we
 
deploy
 
newer
 
technologies,
 
such
 
as
 
blockchain,
 
or
processes, platforms or products
 
that rely on
 
these technologies.
 
Our operational risk management and
 
control systems
and
 
processes
 
are
 
designed
 
to
 
help
 
ensure
 
that
 
the
 
risks
 
associated
 
with
 
our
 
activities
 
–
 
including
 
those
 
arising
 
from
process
 
error,
 
failed
 
execution,
 
misconduct, unauthorized
 
trading,
 
fraud, system
 
failures,
 
financial crime,
 
cyberattacks,
breaches of information security,
 
inadequate or ineffective access controls
 
and failure of security and physical protection
– are
 
appropriately controlled.
 
If our
 
internal controls
 
fail or
 
prove
 
ineffective in
 
identifying
 
and remedying
 
these risks,
we could suffer operational failures that might result in material losses,
 
such as the substantial loss we incurred from the
unauthorized trading incident announced
 
in September 2011.
As a significant proportion of our staff have been and will continue working
 
from outside the office, we have faced, and
will
 
continue
 
to
 
face,
 
new
 
challenges
 
and
 
operational
 
risks,
 
including
 
maintenance
 
of
 
supervisory
 
and
 
surveillance
controls, as
 
well as increased
 
fraud and
 
data security risks.
 
While we
 
have taken measures
 
to manage
 
these risks, such
measures have never been tested on the scale or duration that we
 
are currently experiencing, and there is risk that these
measures will prove not
 
to have been effective in the
 
current unprecedented
 
operating environment.
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Risk
 
factors
 
63
 
We use automation as part
 
of our efforts
 
to improve efficiency, reduce the risk of error and
 
improve our client experience.
We intend
 
to expand
 
the use
 
of robotic
 
processing,
 
machine learning
 
and
 
artificial
 
intelligence
 
to further
 
these goals.
Use of
 
these tools
 
presents
 
their own
 
risks, including
 
the need
 
for effective
 
design
 
and testing;
 
the quality
 
of the
 
data
used
 
for
 
development
 
and
 
operation
 
of
 
machine
 
learning
 
and
 
artificial
 
intelligence
 
tools
 
may
 
adversely
 
affect
 
their
functioning and result in
 
errors and other operational risks.
For
 
financial
 
institutions,
 
cybersecurity
 
risks
 
have
 
increased
 
due
 
to
 
the
 
widespread
 
use
 
of
 
digital
 
technologies,
 
cloud
computing
 
and
 
mobile
 
devices
 
to
 
conduct
 
financial
 
business
 
and
 
transactions.
 
In
 
addition,
 
cyberattacks
 
by
 
hackers,
terrorists, criminal organizations, nation
 
states and
 
extremists have also
 
increased in
 
frequency and sophistication. Current
geopolitical
 
tensions
 
have also
 
led
 
to increased
 
risk of
 
cyberattack
 
from foreign
 
state acto
 
rs. In
 
particular,
 
the Russia–
Ukraine war and the imposition of
 
significant sanctions on Russia by
 
Switzerland, the US, the EU, the UK and others has
resulted and may continue to result
 
in an increase in the risk of cyberattacks.
 
Financial services
 
firms have
 
increasingly been
 
subject to
 
breaches
 
of security and
 
to cyber-
 
and other
 
forms of
 
attack,
some of
 
which are
 
sophisticated
 
and
 
targeted attacks
 
intended
 
to gain
 
access to
 
confidential
 
information
 
or systems,
disrupt service or steal or destroy data. These attacks may occur on our own systems or on the systems that are operated
by external service
 
providers, may be attempted through the introduction of “ransomware,” viruses
 
or malware, phishing
and other forms of social
 
engineering, distributed
 
denial of service
 
attacks and other
 
means. These attempts
 
may occur
directly,
 
or
 
using
 
equipment
 
or
 
security
 
passwords
 
of
 
our
 
employees,
 
third-party
 
service
 
providers
 
or
 
other
 
users.
 
In
addition
 
to
 
external
 
attacks,
 
we
 
have
 
experienced
 
loss
 
of
 
client
 
data
 
from
 
failure
 
by
 
employees
 
and
 
others
 
to
 
follow
internal policies and
 
procedures
 
and from
 
misappropriation of
 
our data
 
by employees
 
and others.
 
We may not
 
be able
to anticipate, detect
 
or recognize
 
threats to our
 
systems or data
 
and our
 
preventative measures
 
may not
 
be effective to
prevent an attack or a security breach.
 
In the event of a security breach, notwithstanding
 
our preventative measures, we
may not immediately
 
detect a particular
 
breach or
 
attack. Once a
 
particular attack is
 
detected, time may
 
be required
 
to
investigate and assess the nature and extent of
 
the attack, and to restore and test
 
systems and data. If a successful attack
occurs at a
 
service provider,
 
as we have
 
recently experienced,
 
we may
 
be dependent
 
on the
 
service provider’s ability
 
to
detect the attack,
 
investigate and
 
assess the
 
attack and successfully
 
restore the
 
relevant systems and
 
data. A
 
successful
breach
 
or
 
circumvention
 
of
 
security
 
of
 
our
 
or
 
a
 
service
 
provider’s
 
systems
 
or
 
data
 
could
 
have
 
significant
 
negative
consequences for us, including
 
disruption of our operations, misappropriation
 
of confidential information concerning
 
us
or our
 
clients, damage
 
to our
 
systems, financial
 
losses for
 
us or
 
our clients,
 
violations
 
of data
 
privacy and
 
similar laws,
litigation
 
exposure
 
and
 
damage to
 
our reputation.
 
We
 
may be
 
subject
 
to enforcement
 
actions
 
as regulatory
 
focus on
cybersecurity
 
increases
 
and
 
regulators
 
have
 
announced
 
new
 
rules,
 
guidance
 
and
 
initiatives on
 
ransomware
 
and
 
other
cybersecurity-related issues.
We are subject to complex and frequently changing laws and regulations governing the protection of client and personal
data, such as the EU General Data
 
Protection Regulation.
 
Ensuring that we comply with
 
applicable laws and regulations
when we collect, use and transfer personal
 
information requires
 
substantial resources
 
and may affect the ways in which
we conduct our business. In the event that
 
we fail to comply
 
with applicable laws, we may be
 
exposed to regulatory fines
and penalties
 
and other
 
sanctions. We
 
may also
 
incur such
 
penalties if
 
our vendors
 
or other service
 
providers or
 
clients
or counterparties fail to comply with these laws or to maintain appropriate controls
 
over protected data. In addition, any
loss or exposure of client or other
 
data may adversely damage
 
our reputation and
 
adversely affect our business.
A major focus of US and other
 
countries’ governmental policies relating
 
to financial institutions in
 
recent years has been
on
 
fighting
 
money
 
laundering
 
and
 
terrorist financing.
 
We
 
are
 
required
 
to
 
maintain
 
effective policies,
 
procedures
 
and
controls to
 
detect, prevent and
 
report money
 
laundering and terrorist
 
financing,
 
and to verify the
 
identity of
 
our clients
under
 
the laws
 
of many
 
of the
 
countries in
 
which we
 
operate. We
 
are also
 
subject
 
to laws
 
and
 
regulations
 
related to
corrupt and illegal payments to government officials
 
by others, such as the US
 
Foreign Corrupt
 
Practices Act and the UK
Bribery Act. We have implemented policies, procedures and internal controls that are
 
designed to comply with such laws
and regulations. Notwi
 
thstanding this, US regulators
 
have found deficiencies in the design
 
and operation of anti-money
laundering
 
programs
 
in
 
our
 
US
 
operations.
 
We
 
have
 
undertaken
 
a
 
significant
 
program
 
to
 
address
 
these
 
regulatory
findings with the objective of fully meeting regulatory expectations
 
for our programs. Failure to maintain and implement
adequate
 
programs
 
to
 
combat
 
money
 
laundering,
 
terrorist financing
 
or
 
corruption,
 
or
 
any
 
failure
 
of
 
our
 
programs
 
in
these areas,
 
could have serious
 
consequences both
 
from legal enforcement
 
action and
 
from damage
 
to our reputation.
Frequent changes in
 
sanctions imposed and increasingly
 
complex sanctions imposed on
 
countries, entities and
 
individuals,
as exemplified by the breadth and
 
scope of the sanctions imposed
 
in relation to the war
 
in Ukraine, increase our
 
cost of
monitoring and complying with sanctions
 
requirements and increase the risk that we will not identify in a timely manner
client activity that is subject to a sanction.
As
 
a
 
result
 
of
 
new
 
and
 
changed
 
regulatory
 
requirements
 
and
 
the
 
changes
 
we
 
have
 
made
 
in
 
our
 
legal
 
structure,
 
the
volume, frequency
 
and
 
complexity of
 
our regulatory
 
and
 
other reporting
 
has remained
 
elevated. Regulators
 
have also
significantly
 
increased
 
expectations
 
regarding
 
our
 
internal
 
reporting
 
and
 
data
 
aggregation,
 
as
 
well
 
as
 
management
reporting.
 
We
 
have
 
incurred,
 
and
 
continue
 
to
 
incur,
 
significant
 
costs
 
to
 
implement
 
infrastructure
 
to
 
meet
 
these
requirements.
 
Failure
 
to
 
meet
 
external
 
reporting
 
requirements
 
accurately
 
and
 
in
 
a
 
timely
 
manner
 
or
 
failure
 
to
 
meet
regulatory expectations
 
of internal reporting,
 
data aggregation
 
and management reporting
 
could result in
 
enforcement
action or other adverse consequences
 
for us.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Risk
 
factors
 
64
 
In addition, despite the
 
contingency plans that we
 
have in place,
 
our ability
 
to conduct business may
 
be adversely affected
by a
 
disruption in
 
the infrastructure
 
that supports
 
our businesses
 
and the
 
communities in
 
which we
 
operate. This
 
may
include
 
a
 
disruption
 
due
 
to
 
natural
 
disasters,
 
pandemics,
 
civil
 
unrest,
 
war
 
or
 
terrorism
 
and
 
involve
 
electrical,
communications, transportation
 
or other services
 
that we use
 
or that are
 
used by
 
third parties with
 
whom we
 
conduct
business.
 
We may not be successful in the ongoing
 
execution of our strategic plans
We have transformed UBS
 
to focus on our Global
 
Wealth Management business
 
and our universal bank
 
in Switzerland,
complemented
 
by Asset
 
Management
 
and
 
a significantly
 
smaller and
 
more capital
 
-efficient
 
Investment Bank;
 
we have
substantially
 
reduced
 
the
 
risk-weighted
 
assets
 
and
 
leverage
 
ratio
 
denominator
 
usage
 
in
 
Group
 
Functions;
 
and
 
made
significant cost
 
reductions.
 
Our ongoing
 
strategic initiatives focus
 
on growing
 
our business
 
in the Americas
 
and in
 
Asia
Pacific, particularly China,
 
and investing
 
in technology
 
to differentiate our
 
service to
 
clients, and
 
implementing
 
an agile
mode of work. These measures
 
will require significant change
 
in our organization and we may not succeed
 
in executing
our strategy
 
or achieving our performance
 
targets, or may
 
be delayed
 
in doing so.
 
Macroeconomic conditions, geopolitical
uncertainty, changes to regulatory requirements
 
and the continuing costs of meeting these requirements have prompted
us to adapt our targets and
 
ambitions in the past and we may need to
 
do so again in the future.
To
 
achieve our strategic plans, we expect to continue
 
to make significant expenditures
 
on technology and infrastructure
to improve client
 
experience,
 
improve and
 
further enable
 
digital offerings
 
and increase
 
efficiency.
 
We also
 
may seek to
implement our
 
strategy
 
through
 
acquisitions
 
or
 
strategic partnerships
 
to
 
expand
 
or improve
 
our
 
product
 
offerings
 
or
target additional
 
client segments.
 
Our
 
investments
 
in
 
new
 
technology
 
and
 
our
 
acquisitions and
 
strategic partnerships
may not
 
be
 
successfully
 
completed,
 
fully
 
achieve
 
our
 
objectives or
 
improve
 
our
 
ability to
 
attract
 
and
 
retain
 
clients.
 
In
addition, we
 
face competition in
 
providing digitally enabled
 
offerings from
 
both existing
 
competitors and new
 
financial
service
 
providers
 
in
 
various
 
portions
 
of
 
the
 
value
 
chain.
 
For
 
example,
 
technological
 
advances
 
and
 
the
 
growth
 
of
e-commerce have made
 
it possible for e
 
-commerce firms and
 
other companies
 
to offer products
 
and services that were
traditionally
 
offered
 
only
 
by
 
banks.
 
These
 
advances
 
have
 
also
 
allowed
 
financial
 
institutions
 
and
 
other
 
companies
 
to
provide
 
digitally
 
based
 
financial
 
solutions,
 
including
 
electronic
 
securities
 
trading,
 
payments
 
processing
 
and
 
online
automated algorithmic
 
-based investment
 
advice at a
 
low cost to
 
their clients.
 
We may
 
have to lower
 
our prices,
 
or risk
losing clients as a result.
 
Our ability to develop
 
and implement competitive digitally
 
enabled offerings
 
and processes will
be an important factor in our ability
 
to compete.
As part of our strategy, we seek to improve our operating efficiency, in part by controlling
 
our costs. We may not be able
to identify feasible
 
cost reduction
 
opportunities that are
 
consistent with
 
our business
 
goals and
 
cost reductions
 
may be
realized later or
 
may be
 
smaller than we
 
anticipate. Higher temporary
 
and permanent regulatory costs
 
and higher business
demand
 
than
 
anticipated
 
have
 
partly
 
offset
 
cost
 
reductions
 
and
 
delayed
 
the
 
achievement
 
of
 
our
 
past
 
cost
 
reduction
targets, and we could continue to be challenged in the execution of our ongoing efforts to improve operating efficiency.
Changes in our workforce as
 
a result of outsourcing,
 
nearshoring, offshoring,
 
insourcing or staff reductions,
 
or changes
that arise from the introduction
 
of work from home or other flexible ways
 
of working or
 
agile work methodologies may
introduce new operational
 
risks that,
 
if not
 
effectively addressed, could affect our
 
ability to achieve
 
cost and other
 
benefits
from such changes, or could
 
result in operational losses.
 
As we implement effectiveness and
 
efficiency programs, we may also
 
experience unintended
 
consequences, such as the
unintended
 
loss or
 
degradation of
 
capabilities that we
 
need in
 
order
 
to maintain
 
our competitive
 
position, achieve
 
our
targeted returns or meet existing
 
or new regulatory requirements
 
and expectations.
 
We depend on our risk management and
 
control processes to avoid or
 
limit potential losses in our
 
businesses
 
Controlled risk-
 
taking is a
 
major part of
 
the business
 
of a financial
 
services
 
firm. Some
 
losses from
 
risk-taking
 
activities
are inevitable, but to be
 
successful over time,
 
we must balance the risks
 
we take against
 
the returns generated. Therefore,
we must diligently
 
identify,
 
assess, manage
 
and control our
 
risks, not only in normal
 
market conditions but
 
also as they
might develop under more extreme,
 
stressed condi
 
tions, when concentrations of
 
exposures can lead to severe losses.
 
We have not
 
always been
 
able to
 
prevent serious
 
losses arising
 
from risk
 
management failures
 
and extreme
 
or sudden
market
 
events.
 
We
 
recorded
 
substantial
 
losses
 
on
 
fixed-income
 
trading
 
positions
 
in
 
the
 
2008
 
financial
 
crisis,
 
in
 
the
unauthorized trading incident
 
in 2011 and,
 
more recently,
 
positions resulting
 
from the default of
 
a US prime brokerage
client.
 
We
 
revise
 
and
 
strengthen
 
our
 
risk
 
management
 
and
 
control
 
frameworks
 
to
 
seek
 
to
 
address
 
identified
shortcomings. Nonetheless,
 
we could suffer further losses in the
 
future if, for example:
–
 
we do not fully identify the risks in
 
our portfolio, in particular risk concentrations
 
and correlated risks;
–
 
our
 
assessment
 
of
 
the
 
risks
 
identified,
 
or
 
our
 
response
 
to
 
negative
 
trends,
 
proves
 
to
 
be
 
untimely,
 
inadequate,
insufficient or incorrect;
 
–
 
our risk models prove insufficient to predict
 
the scale of financial risks the bank
 
faces;
 
–
 
markets move
 
in ways
 
that we
 
do
 
not expect
 
– in
 
terms of
 
their speed,
 
direction,
 
severity or
 
correlation
 
– and
 
our
ability to manage risks in the resulting
 
environment is, therefore, affected;
–
 
third parties
 
to whom
 
we have
 
credit exposure
 
or whose
 
securities we
 
hold
 
are severely
 
affected by
 
events and
 
we
suffer defaults and impairments beyond
 
the level implied by our risk assessment;
 
or
 
–
 
collateral or other
 
security provided
 
by our
 
counterparties and
 
clients proves inadequate
 
to cover their
 
obligations at
the time of default.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Risk
 
factors
 
65
 
We also hold legacy
 
risk positions, primarily
 
in Group Functions, that,
 
in many cases, are
 
illiquid and may
 
again deteriorate
in value.
We also manage risk on
 
behalf of our clients.
 
The performance of assets
 
we hold for our
 
clients may be adversely
 
affected
by the same
 
aforementioned factors.
 
If clients suffer losses
 
or the performance of
 
their assets held
 
with us is not
 
in line
with relevant benchmarks
 
against which clients
 
assess investment
 
performance, we
 
may suffer reduced fee
 
income and
a decline in assets under management,
 
or withdrawal of mandates.
Investment positions,
 
such as equity investments
 
made as part
 
of strategic initiatives
 
and seed
 
investments made at
 
the
inception of funds that
 
we manage, may
 
also be affected
 
by market risk
 
factors. These investments
 
are often not
 
liquid
and
 
generally are
 
intended
 
or required
 
to be
 
held beyond
 
a normal trading
 
horizon.
 
Deteriorations in
 
the fair
 
value of
these positions would have a negative
 
effect on our earnings.
We may not be successful in implementing
 
changes in our wealth management
 
businesses to meet changing market,
regulatory and other conditions
 
We
 
are
 
exposed
 
to
 
possible
 
outflows
 
of
 
client
 
assets
 
in
 
our
 
asset-gathering
 
businesses
 
and
 
to
 
changes
 
affecting
 
the
profitability of Global
 
Wealth Management,
 
in particular.
 
Initiatives that
 
we may implement
 
to overcome
 
the effects of
changes
 
in
 
the
 
business
 
environment
 
on
 
our
 
profitability,
 
balance
 
sheet
 
and
 
capital
 
positions
 
may
 
not
 
succeed
 
in
counteracting those effects and may cause net new money outflows and reductions in client deposits, as happened with
our
 
balance
 
sheet
 
and
 
capital optimization
 
program
 
in
 
2015.
 
There
 
is no
 
assurance
 
that
 
we
 
will be
 
successful
 
in
 
our
efforts to offset the adverse
 
effect of these or similar trends
 
and developments.
We may be unable to identify or capture
 
revenue or competitive opportunities, or
 
retain and attract qualified
employees
The financial
 
services industry
 
is characterized
 
by intense
 
competition,
 
continuous
 
innovation, restrictive,
 
detailed, and
sometimes
 
fragmented
 
regulation
 
and
 
ongoing
 
consolidation.
 
We
 
face competition
 
at
 
the
 
level of
 
local
 
markets
 
and
individual business lines, and from global financial institutions that are comparable to us in their
 
size and breadth, as well
as competition from
 
new technology
 
-based market entrants,
 
which may not
 
be subject to the
 
same level of regulation.
Barriers to entry in individual markets and
 
pricing levels are being eroded
 
by new technology.
 
We expect these trends to
continue and
 
competition to increase.
 
Our competitive
 
strength
 
and market
 
position
 
could be
 
eroded if
 
we are
 
unable
to
 
identify
 
market
 
trends
 
and
 
developments,
 
do
 
not
 
respond
 
to
 
such
 
trends
 
and
 
developments
 
by
 
devising
 
and
implementing adequate
 
business strategies,
 
do not
 
adequately develop or
 
update our
 
technology,
 
including our
 
digital
channels and tools,
 
or are unable to attract or retain the qualified
 
people needed.
The
 
amount
 
and
 
structure
 
of
 
our
 
employee
 
compensation
 
is
 
affected
 
not
 
only
 
by
 
our
 
business
 
results,
 
but
 
also
 
by
competitive factors and regulatory considerations.
 
In response
 
to the demands
 
of various
 
stakeholders, including
 
regulatory authorities
 
and shareholders,
 
and in
 
order to
better
 
align
 
the
 
interests
 
of
 
our
 
staff
 
with
 
other
 
stakeholders,
 
we
 
have
 
increased
 
average
 
deferral
 
periods
 
for
 
stock
awards, expanded
 
forfeiture provisions and, to a more limited extent, introduced
 
clawback provisions for certain awards
linked to
 
business performance.
 
We have
 
also introduced
 
individual caps
 
on the
 
proportion
 
of fixed to
 
variable pay
 
for
the Group Executive Board
 
(GEB) members, as well as certain
 
other employees.
 
Constraints on the amount or structure
 
of employee compensation, higher levels of
 
deferral, performance conditions and
other circumstances triggering the forfeiture of unvested awards may adversely affect our ability to retain and attract key
employees, particularly where we compete with companies that are not subject to these constraints. The loss of key staff
and the
 
inability to attract qualified
 
replacements could
 
seriously compromise our
 
ability to execute
 
our strategy
 
and to
successfully
 
improve
 
our
 
operating
 
and
 
control
 
environment,
 
and
 
could
 
affect
 
our
 
business
 
performance.
 
Swiss
 
law
requires that
 
shareholders approve
 
the compensation of
 
the Board of
 
Directors (the BoD)
 
and the GEB
 
each year.
 
If our
shareholders
 
fail to approve
 
the compensation
 
for the GEB
 
or the BoD,
 
this could
 
have an adverse
 
effect on
 
our ability
to retain experienced directors and
 
our senior management.
 
Our reputation is critical to our success
Our reputation is critical to the success of our strategic plans, business and prospects.
 
Reputational damage is difficult to
reverse,
 
and
 
improvements
 
tend
 
to
 
be
 
slow
 
and
 
difficult
 
to
 
measure.
 
In
 
the
 
past,
 
our
 
reputation
 
has
 
been
 
adversely
affected by
 
our losses
 
during
 
the financial
 
crisis, investigations
 
into our
 
cross-border
 
private banking
 
services, criminal
resolutions of LIBOR-related and
 
foreign exchange matters,
 
as well as
 
other matters. We
 
believe that reputational damage
as
 
a
 
result
 
of
 
these
 
events
 
was
 
an
 
important
 
factor
 
in
 
our
 
loss
 
of
 
clients
 
and
 
client
 
assets
 
across
 
our
 
asset-gathering
businesses. New events that cause
 
reputational damage could have
 
a material adverse effect on our
 
results of operation
and financial condition, as well as our
 
ability to achieve our strategic goals
 
and financial targets.
 
 
 
 
Annual Report 2022 |
Our
 
strategy,
 
business
 
model
 
and
 
environment
 
|
 
Risk
 
factors
 
66
 
As UBS Group AG is a
 
holding company, its operating
 
results, financial condition and ability to pay dividends
 
and other
distributions and / or to
 
pay its obligations in the future
 
depend on funding, dividends and
 
other distributions received
directly or indirectly from its subsidiaries,
 
which may be subject to restrictions
UBS Group
 
AG’s ability to
 
pay dividends
 
and other
 
distributions and
 
to pay its
 
obligations in
 
the future
 
will depend
 
on
the level of funding, dividends and other distributions, if any, received from
 
UBS AG and other subsidiaries. The ability of
such subsidiaries
 
to make loans
 
or distributions,
 
directly or indirectly,
 
to UBS
 
Group AG may
 
be restricted
 
as a result
 
of
several factors,
 
including
 
restrictions
 
in
 
financing
 
agreements
 
and
 
the requirements
 
of
 
applicable
 
law
 
and
 
regulatory,
fiscal
 
or
 
other
 
restrictions.
 
In
 
particular,
 
UBS
 
Group
 
AG’s
 
direct
 
and
 
indirect
 
subsidiaries,
 
including
 
UBS
 
AG,
 
UBS
Switzerland AG, UBS Americas Holding LLC and UBS Europe SE, are subject to laws and regulations that restrict dividend
payments, authorize regulatory bodies to block or reduce the flow of funds from those subsidiaries to UBS Group AG, or
could affect their ability to
 
repay any loans made to,
 
or other investments in,
 
such subsidiary by
 
UBS Group AG or another
member of the Group.
 
For example, in the early stages
 
of the COVID-19
 
pandemic, the European
 
Central Bank ordered
all
 
banks
 
under
 
its
 
supervision
 
to
 
cease
 
dividend
 
distributions
 
and
 
the
 
Federal
 
Reserve
 
Board
 
has
 
limited
 
capital
distributions by bank holding companies and intermediate holding
 
companies. Restrictions and regulatory actions of this
kind
 
could
 
impede
 
access
 
to
 
funds
 
that
 
UBS
 
Group
 
AG
 
may
 
need
 
to
 
meet
 
its
 
obligations
 
or
 
to
 
pay
 
dividends
 
to
shareholders.
 
In addition,
 
UBS Group
 
AG’s right
 
to participate in
 
a distribution
 
of assets upon
 
a subsidiary’s liquidation
or reorganization is subject to
 
all prior claims of the subsidiary’s creditors.
Our
 
capital
 
instruments
 
may
 
contractually
 
prevent
 
UBS
 
Group
 
AG
 
from
 
proposing
 
the
 
distribution
 
of
 
dividends
 
to
shareholders, other than in the
 
form of shares,
 
and from engaging in repurchases of shares,
 
if we do not pay interest on
these instruments.
Furthermore, UBS Group AG may guarantee some of the payment obligations of certain of the Group’s subsidiaries from
time to time. These guarantees
 
may require UBS Group
 
AG to provide substantial funds
 
or assets to subsidiaries or their
creditors or counterparties at a time when
 
UBS Group AG is
 
in need of liquidity to fund its own
 
obligations.
The credit ratings of UBS
 
Group AG or its subsidiaries
 
used for funding
 
purposes could be lower than
 
the ratings of
 
the
Group’s
 
operating subsidiaries,
 
which may
 
adversely affect
 
the market
 
value of
 
the
 
securities and
 
other obligations
 
of
UBS Group AG or those
 
subsidiaries on a standalone basis.
Liquidity and funding risk
Liquidity and funding management
 
are critical to UBS’s ongoing
 
performance
 
The viability
 
of our
 
business depends
 
on the
 
availability of
 
funding
 
sources, and
 
our success
 
depends
 
on our
 
ability to
obtain
 
funding
 
at times,
 
in amounts,
 
for tenors
 
and
 
at rates
 
that enable
 
us to
 
efficiently support
 
our asset
 
base in
 
all
market conditions.
 
Our funding
 
sources have
 
generally been
 
stable, but
 
could change in
 
the future
 
because of,
 
among
other things,
 
general market
 
disruptions or
 
widening credit
 
spreads, which
 
could also
 
influence the
 
cost of
 
funding. A
substantial part of our liquidity and funding requirements are met
 
using short-term unsecured funding sources, including
retail and
 
wholesale deposits and
 
the regular
 
issuance of money
 
market securities. A change
 
in the availability of short-
term funding could occur quickly.
The addition
 
of loss
 
-absorbing debt
 
as a
 
component
 
of capital
 
requirements,
 
the regulatory
 
requirements
 
to maintain
minimum TLAC
 
at UBS’s
 
holding
 
company and
 
at subsidiaries,
 
as well
 
as the
 
power of
 
resolution
 
authorities to
 
bail in
TLAC instruments and other debt obligations,
 
and uncertainty as to how such powers will be exercised, caused and
 
may
still cause further increase of our cost of funding, and could potentially increase the total amount of funding required,
 
in
the absence of other changes
 
in our business.
Reductions in our credit ratings may
 
adversely affect the market value of the securities and other obligations and increase
our funding costs, in particular
 
with regard to funding from wholesale unsecured sources,
 
and could affect the
 
availability
of certain kinds
 
of funding.
 
In addition, as
 
experienced in connection
 
with Moody’s downgrade
 
of UBS
 
AG’s long-term
debt rating
 
in June
 
2012, rating downgrades can
 
require us to
 
post additional collateral
 
or make additional
 
cash payments
under
 
trading
 
agreements.
 
Our
 
credit
 
ratings,
 
together
 
with
 
our
 
capital
 
strength
 
and
 
reputation,
 
also
 
contribute
 
to
maintaining client
 
and counterparty
 
confidence, and
 
it is possible
 
that rating
 
changes could
 
influence the performance
of some of our businesses.
The requirement
 
to maintain a
 
liquidity coverage
 
ratio of high
 
-quality liquid assets
 
to estimated stressed
 
short-term net
cash outflows, and other
 
similar liquidity and funding requirements,
 
oblige us to maintain high
 
levels of overall liquidity,
limit our
 
ability to
 
optimize interest
 
income and
 
expense,
 
make certain
 
lines of
 
business less
 
attractive and
 
reduce
 
our
overall ability to
 
generate profits.
 
In particular,
 
UBS AG is
 
subjected to
 
increased liquidity
 
coverage requirements
 
under
the direction
 
of FINMA.
 
The liquidity
 
coverage
 
ratio and
 
net stable
 
funding
 
ratio requirements
 
are intended
 
to ensure
that we are not overly reliant on short-term funding and that we have
 
sufficient long-term funding for illiquid assets. The
relevant calculations
 
make assumptions
 
about the
 
relative likelihood
 
and amount
 
of outflows
 
of funding
 
and available
sources
 
of additional
 
funding
 
in market-wide
 
and
 
firm-specific
 
stress situations.
 
In an
 
actual stress
 
situation,
 
however,
our funding outflows could
 
exceed the assumed amounts.
 
 
 
 
 
Annual Report 2022 |
Financial
 
and
 
operating
 
performance
 
|
 
Accounting
 
and
 
financial
 
reporting
 
67
 
Financial and operating
performance
Management report
 
 
Accounting and financial reporting
 
Critical accounting estimates and judgments
In preparing
 
our financial statements
 
in accordance
 
with International Financial
 
Reporting Standards
 
(IFRS), as issued
 
by
the International Accounting Standards
 
Board (the IASB),
 
we apply judgment and make estimates and
 
assumptions that
may involve
 
significant uncertainty
 
at the
 
time they
 
are made.
 
We regularly
 
reassess those
 
estimates and
 
assumptions,
which
 
encompass
 
historical
 
experience,
 
expectations
 
of
 
the
 
future
 
and
 
other
 
pertinent
 
factors,
 
to
 
determine
 
their
continuing relevance based on current conditions, and update them as necessary. Changes in estimates and assumptions
may have
 
significant
 
effects
 
on
 
the
 
financial statements.
 
Furthermore,
 
actual
 
results
 
may differ
 
significantly
 
from
 
our
estimates, which could result in significant
 
losses to the Group,
 
beyond what we expected or provided
 
for.
 
Key
 
areas
 
involving
 
a
 
high
 
degree
 
of
 
judgment
 
and
 
areas
 
where
 
estimates
 
and
 
assumptions
 
are
 
significant
 
to
 
the
consolidated financial statements include:
–
 
expected credit loss measurement;
–
 
fair value measurement;
–
 
income taxes;
–
 
provisions and contingent liabilities;
–
 
post-employment benefit plans;
–
 
goodwill; and
 
–
 
consolidation of structured entities.
›
 
Refer to “Note 1a
 
Material accounting
 
policies” in the
 
“Consolidated
 
financial statements”
 
section
 
of this report for more
information
›
 
Refer to the “Risk
 
factors” section of
 
this report for more
 
information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Financial
 
and
 
operating
 
performance
 
|
 
Group
 
perf
ormance
 
68
 
Group performance
Income statement
For the year ended
% change from
USD m
31.12.22
31.12.21
31.12.20
31.12.21
Net interest income
6,621
6,705
5,862
(1)
Other net income from financial instruments measured
 
at fair value through profit or
 
loss
7,517
5,850
6,960
28
Net fee and commission income
18,966
22,387
19,186
(15)
Other income
1,459
452
1,076
223
Total revenues
34,563
35,393
33,084
(2)
Credit loss expense / (release)
29
(148)
694
Personnel expenses
17,680
18,387
17,224
(4)
General and administrative expenses
5,189
5,553
4,885
(7)
Depreciation, amortization and impairment of non
 
-financial assets
2,061
2,118
2,126
(3)
Operating expenses
24,930
26,058
24,235
(4)
Operating profit / (loss) before
 
tax
9,604
9,484
8,155
1
Tax expense / (benefit)
 
1,942
1,998
1,583
(3)
Net profit / (loss)
7,661
7,486
6,572
2
Net profit / (loss) attributable to non-controlling
 
interests
32
29
15
11
Net profit / (loss) attributable to shareholders
7,630
7,457
6,557
2
Comprehensive income
Total comprehensive income
 
3,167
 
5,119
 
8,312
 
(38)
Total comprehensive income attributable to
 
non-controlling interests
 
18
 
13
 
36
 
39
Total comprehensive
 
income attributable to shareholders
 
3,149
 
5,106
 
8,276
 
(38)
 
2022 compared
 
with 2021
Results
In 2022,
 
net profit attributable
 
to shareholders
 
increased by
 
USD 173m,
 
or 2%,
 
to USD
 
7,630m, which
 
included a
 
net
tax expense of USD 1,942m
 
.
Operating
 
profit
 
before
 
tax
 
increased
 
by
 
USD 120m,
 
or
 
1%,
 
to
 
USD 9,604m,
 
reflecting
 
lower
 
operating
 
expenses,
partly offset
 
by lower
 
total revenues.
 
Operating
 
expenses
 
decreased
 
by USD 1,128m,
 
or 4%,
 
to USD 24,930m,
 
which
included
 
positive
 
foreign
 
currency
 
effects.
 
This
 
decrease
 
was
 
mainly
 
driven
 
by
 
USD 707
 
m
 
lower
 
personnel
 
expenses
and
 
USD 364m
 
lower
 
general
 
and
 
administrative
 
expenses.
 
Net
 
credit
 
loss
 
expenses
 
were USD
 
29m,
 
compared
 
with
net credit loss releases of USD 148m in the prior year.
 
Total revenues decrease
 
d
 
by USD 830
 
m, or 2%, to
 
USD 34,563m,
which included
 
negative
 
foreign
 
currency
 
effects.
 
Net
 
fee
 
and
 
commission
 
income
 
decreased
 
by USD
 
3,421m,
 
partly
offset
 
by
 
a
 
USD 1,582m
 
increase
 
in
 
total
 
combined
 
net
 
interest
 
income
 
and
 
other
 
net
 
income
 
from
 
financial
instruments
 
measured
 
at fair
 
value through
 
profit or
 
loss,
 
as well as
 
USD
 
1,007
 
m
 
higher
 
other income.
 
Total revenues
Net interest income and other
 
net income from financial instruments measured
 
at fair value through
 
profit or loss
Total
 
combined
 
net
 
interest
 
income
 
and
 
other
 
net
 
income
 
from
 
financial instruments
 
measured
 
at
 
fair
 
value
 
through
profit or loss increased by USD
 
1,582m to USD
 
14,137m.
Global Wealth Management increased
 
by USD 1,014m to USD 6,355m, predominantly due
 
to higher net
 
interest income,
mainly driven by an increase in
 
deposit revenues, as rising
 
interest rates led to higher
 
deposit margins. This increase was
partly offset by
 
the effects of
 
shifts to
 
lower-margin products
 
and higher
 
interest rates paid
 
to clients. In
 
addition,
 
loan
revenues decreased,
 
driven by lower loan margins.
The
 
Investment
 
Bank
 
increased
 
by
 
USD 702m
 
to
 
USD 5,769m,
 
mainly
 
reflecting
 
USD 803m
 
higher
 
net
 
income
 
in
Financing, largely due to a loss of
 
USD 861m incurred in the first half of 2021
 
on the default of a US-based client of our
prime
 
brokerage
 
business.
 
In
 
addition,
 
Derivatives &
 
Solutions
 
increased
 
by
 
USD 320m,
 
driven
 
by
 
Rates
 
and
 
Foreign
Exchange, which
 
benefited from elevated
 
volatility due
 
to inflationary concerns
 
and the actions
 
of central banks,
 
partly
offset
 
by
 
decreases
 
in
 
Equity
 
Derivatives
 
and
 
Credit
 
revenues
 
due
 
to
 
lower
 
levels
 
of
 
client
 
activity.
 
The
 
increases
 
in
Financing and Derivatives & Solutions were partly offset by a USD 409m decrease in Global Banking, mainly due to
 
lower
revenues in Leveraged Capital Markets.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Financial
 
and
 
operating
 
performance
 
|
 
Group
 
perf
ormance
 
69
 
Personal &
 
Corporate Banking increased by
 
USD 128m, predominantly driven by
 
an increase in
 
net interest
 
income, mainly
reflecting higher
 
deposit revenues,
 
as a
 
result of
 
rising interest
 
rates. This
 
increase was
 
partly offset
 
by a
 
lower benefit
from the Swiss National Bank deposit
 
exemption and a decrease
 
in deposit fees.
Group Functions recognized negative
 
income of USD 649m, compared
 
with negative income of USD 397m,
 
mainly driven
by higher funding costs related to deferred tax
 
assets (DTAs) and capitalized software in Group Services and negative net
effects of accounting
 
asymmetries,
 
including hedge
 
accounting ineffectiveness,
 
within Group
 
Treasury. These
 
changes were
partly offset by
 
higher valuation
 
gains on auction rate
 
and other securities
 
in Non-core
 
and Legacy Portfolio.
›
 
Refer to “Note 3
 
Net interest income
 
and other net income
 
from financial instruments
 
measured at fair value
 
through profit or
loss” in the “Consolidated
 
financial statements”
 
section of this
 
report for more information
 
Net interest income and
 
other net income from
 
financial instruments
 
measured at fair
 
value through profit
 
or loss
For the year ended
% change from
USD m
31.12.22
31.12.21
31.12.20
31.12.21
Net interest income from financial instruments measured
 
at amortized cost and fair value through
 
other
comprehensive income
5,218
5,274
4,563
(1)
Net interest income from financial instruments measured
 
at fair value through profit or
 
loss and other
1,403
1,431
1,299
(2)
Other net income from financial instruments measured
 
at fair value through profit or
 
loss
7,517
5,850
6,960
28
Total
14,137
12,555
12,822
13
Global Wealth Management
6,355
5,341
5,039
19
of which: net interest income
5,273
4,244
4,027
24
of which: transaction-based income from foreign
 
exchange and other intermediary activity
 
1
1,082
1,097
1,012
(1)
Personal & Corporate Banking
 
2,685
2,557
2,459
5
of which: net interest income
 
2,191
2,120
2,049
3
of which: transaction-based income from foreign
 
exchange and other intermediary activity
 
1
494
437
409
13
Asset Management
(23)
(13)
(16)
75
Investment Bank
 
2
5,769
5,067
5,643
14
Global Banking
187
596
585
(69)
Global Markets
5,582
4,471
5,057
25
Group Functions
(649)
(397)
(302)
64
1 Mainly includes spread
 
-related income in connection with
 
client-driven transactions,
 
foreign currency translation
 
effects and income and
 
expenses from precious
 
metals, which
 
are included in the income
 
statement
line Other net income from
 
financial instruments
 
measured at fair value
 
through profit or
 
loss. The
 
amounts reported
 
on this line are
 
one component of
 
Transaction-
 
based income in the
 
management discussion
 
and
analysis of
 
Global
 
Wealth Management
 
and Personal
 
& Corporate
 
Banking in
 
the “Global
 
Wealth
 
Management”
 
and “Personal
 
& Corporate
 
Banking”
 
sections of
 
this report,
 
respectively.
 
2 Investment Bank
information is provided at the business line level rather than by financial statement reporting line in order to reflect the underlying business activities, which
 
is consistent with the structure of the management discussion
and analysis in the “Investment
 
Bank” section of this report.
 
Net fee and commission income
Net fee and commission income decreased
 
by USD 3,421m
 
to USD 18,966m.
Underwriting
 
fees
 
decreased
 
by
 
USD 884m
 
to
 
USD 579m,
 
mainly driven
 
by
 
lower
 
equity
 
underwriting
 
revenues
 
from
public offerings in the Investment Bank
 
,
 
reflecting lower levels of client activity.
Net
 
brokerage
 
fees
 
decreased
 
by
 
USD 841m
 
to USD
 
3,282m,
 
driven
 
by
 
Global
 
Wealth Management,
 
reflecting
 
lower
levels of client activity, and by the Investment
 
Bank, mainly in relation to Cash Equities, partly offset by higher net income
from foreign exchange products
 
.
Investment fund
 
fees decreased
 
by USD 848m,
 
driven by
 
Asset Management
 
and Global
 
Wealth Management,
 
mainly
reflecting negative
 
market performance.
 
In addition,
 
performance-based
 
fee income
 
in Asset
 
Management
 
decreased,
mainly
 
in
 
Hedge
 
Fund
 
Businesses
 
and
 
Equities.
 
Fees
 
for
 
portfolio
 
management
 
and
 
related
 
services
 
decreased
 
by
USD 703m,
 
predominantly
 
driven by
 
Global Wealth
 
Management,
 
also reflecting
 
negative market
 
performance,
 
partly
offset by incremental revenues from net new
 
fee-generating assets.
 
M&A and corporate finance fees decreased by USD 298m to USD 804m, primarily
 
reflecting lower revenues from merger
and acquisition transactions
 
in our Global Banking
 
business in the Investment Bank,
 
due to a decrease in the
 
number of
transactions that closed in 2022.
›
 
Refer to “Note 4
 
Net fee and commission
 
income”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for more
information
Other income
Other income increased by USD
 
1,007m to USD 1,459m,
 
mainly driven by higher gains from
 
disposals of associates and
subsidiaries, largely reflecting a gain of USD 848m in Asset Management on the sale of our shareholding in our Japanese
real estate joint venture, Mitsubishi Corp.-UBS Realty Inc. In addition, there were gains in Global Wealth Management of
USD 133m
 
on
 
the
 
sale
 
of
 
our
 
domestic
 
wealth
 
management
 
business
 
in
 
Spain,
 
USD 86m
 
on
 
the
 
sale
 
of
 
UBS
 
Swiss
Financial Advisers AG
 
and USD
 
41m on
 
the sale of
 
our US
 
alternative investments administration
 
business.
 
These gains
compared
 
with
 
a
 
gain
 
of
 
USD 100m
 
in
 
2021
 
in
 
Global
 
Wealth
 
Management
 
from
 
the
 
sale
 
of
 
our
 
domestic
 
wealth
management business in Austria
 
.
 
In addition, we
 
recognized USD 98m
 
of gains related
 
to the repurchase
 
of UBS’s own
debt instruments, compared with losses
 
of USD 60m
 
in the prior year.
 
These gains were partly offset by USD
 
76m lower
net gains from properties held
 
for sale.
 
›
 
Refer
 
to “Note 5 Other
 
income”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for more information
›
 
Refer to “Note 29
 
Changes in organization
 
and acquisitions
 
and disposals
 
of subsidiaries and
 
businesses” in
 
the “Consolidated
financial statements”
 
section of this
 
report for more information
 
about the gains
 
from disposals
 
of associates and subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Financial
 
and
 
operating
 
performance
 
|
 
Group
 
perf
ormance
 
70
 
Credit loss expense / release
Total
 
net
 
credit
 
loss
 
expenses
 
were
 
USD 29m,
 
compared
 
with
 
net
 
credit
 
loss
 
releases
 
of
 
USD 148m
 
in the
 
prior
 
year,
reflecting net expenses
 
of USD 29m
 
related to stage 1 and
 
2 positions.
›
 
Refer to “Note 9
 
Financial assets at
 
amortized cost
 
and other positions
 
in scope of expected
 
credit loss
 
measurement” and
“Note 19 Expected
 
credit loss measurement”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for more
information about credit
 
loss expenses
 
/ releases
›
 
Refer to the “Risk
 
factors” section of
 
this report for more
 
information
 
Credit loss expense
 
/ (release)
USD m
Global
 
Wealth
 
Management
Personal &
 
Corporate
 
Banking
Asset
Management
Investment
 
Bank
Group
 
Functions
Total
For the year ended
 
31.12.22
Stages 1 and 2
(5)
27
0
6
1
29
Stage 3
5
12
0
(18)
2
0
Total credit loss expense /
 
(release)
0
39
0
(12)
3
29
For the year ended
 
31.12.21
Stages 1 and 2
(28)
(62)
0
(34)
0
(123)
Stage 3
(1)
(24)
1
0
0
(25)
Total credit loss expense /
 
(release)
(29)
(86)
1
(34)
0
(148)
For the year ended
 
31.12.20
Stages 1 and 2
48
129
0
88
0
266
Stage 3
40
128
2
217
42
429
Total credit loss expense /
 
(release)
88
257
2
305
42
694
 
Operating expenses
Personnel expenses
Personnel expenses decreased by USD 707m to USD 17,680m
 
,
 
mainly driven by USD 352m lower variable compensation
related
 
to
 
financial
 
advisors,
 
following
 
a
 
decrease
 
in
 
compensable
 
revenues.
 
Furthermore,
 
salary
 
costs
 
decreased
 
by
USD 294m,
 
as an underlying increase from higher
 
salaries and an increase
 
in the number of employees
 
were more than
offset
 
by
 
foreign
 
currency
 
translation
 
effects.
 
Other
 
personnel
 
expenses
 
were
 
USD 87m
 
lower,
 
primarily
 
reflecting
 
a
decrease in the number of contractors
 
.
›
 
Refer to the “Compensation”
 
section of this
 
report for more information
›
 
Refer to “Note 6
 
Personnel expenses,”
 
“Note 26 Post-employment
 
benefit plans”
 
and “Note 27
 
Employee benefits:
 
variable
compensation” in
 
the “Consolidated
 
financial statements”
 
section of this report
 
for more information
General and administrative expenses
General and
 
administrative expenses
 
decreased
 
by USD
 
364m
 
to USD
 
5,189m,
 
mainly reflecting
 
USD 563m
 
lower net
expenses
 
for
 
litigation,
 
regulatory
 
and
 
similar
 
matters,
 
as
 
2021
 
included
 
expenses
 
of
 
USD 740m
 
related
 
to
 
litigation
provisions
 
for the
 
French
 
cross-border
 
matter.
 
This was
 
partly
 
offset
 
by higher
 
expenses
 
for travel
 
and
 
entertainment,
technology,
 
and consulting fees.
We
 
believe
 
that
 
the
 
industry
 
continues
 
to
 
operate
 
in
 
an
 
environment
 
in
 
which
 
expenses
 
associated
 
with
 
litigation,
regulatory and similar
 
matters will
 
remain elevated for
 
the foreseeable
 
future, and we
 
continue to be
 
exposed to a
 
number
of significant claims and
 
regulatory matters. The outcome
 
of many of these
 
matters, the timing of
 
a resolution, and
 
the
potential effects
 
of resolutions
 
on
 
our future
 
business,
 
financial results
 
or
 
financial
 
condition
 
are extremely
 
difficult
 
to
predict.
›
 
Refer to “Note 7
 
General and administrative
 
expenses” and “Note
 
17 Provisions
 
and contingent
 
liabilities” in
 
the “Consolidated
financial statements”
 
section of this
 
report for more information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Financial
 
and
 
operating
 
performance
 
|
 
Group
 
perf
ormance
 
71
 
Operating expenses
For the year ended
% change from
USD m
31.12.22
31.12.21
31.12.20
31.12.21
Personnel expenses
 
17,680
18,387
17,224
(4)
of which: salaries
7,045
7,339
7,023
(4)
of which: variable compensation
7,954
8,280
7,520
3
(4)
of which: performance awards
3,205
3,190
3,209
0
of which: financial advisors
1
4,508
4,860
4,091
(7)
of which: other
241
229
220
5
of which: other personnel expenses
2
2,681
2,768
2,680
3
(3)
General and administrative expenses
 
5,189
5,553
4,885
(7)
of which: net expenses for litigation, regulatory and similar
 
matters
348
911
197
(62)
of which: other general and administrative expenses
4,841
4,642
4,688
4
Depreciation, amortization and impairment of non
 
-financial assets
2,061
2,118
2,126
(3)
Total operating
 
expenses
24,930
26,058
24,235
(4)
1 Consists of cash and deferred compensation awards and is based
 
on compensable revenues and firm tenure using a formulaic approach. It also includes
 
expenses related to compensation commitments with financial
advisors entered into at the time
 
of recruitment that are subject to
 
vesting requirements.
 
2 Consists of expenses
 
related to contractors,
 
social security, post-employment
 
benefit plans, and other
 
personnel expenses.
Refer to “Note 6 Personnel expenses”
 
in the “Consolidated financial statements” section
 
of this report for more information.
 
3 During 2020, UBS modified the conditions for continued
 
vesting of certain outstanding
deferred compensation
 
awards for
 
qualifying employees,
 
resulting in
 
an expense
 
of approximately
 
USD 280m, of
 
which
 
USD 240m i
 
s
 
disclosed within
 
Variable compensation
 
and USD 40m
 
within Other
 
personnel
expenses in this table.
Tax
Income tax
 
expenses of USD 1,942m were recognized for
 
the Group in 2022, representing an
 
effective tax rate
 
of 20.2%,
compared with
 
USD 1,998m
 
for 2021,
 
which represented
 
an effective tax
 
rate of
 
21.1%.
 
The income tax
 
expenses for
2022 included Swiss tax expenses of
 
USD 715m and non-Swiss
 
tax expenses of USD 1,227m.
The Swiss tax expenses included current tax expenses of USD 730m related to taxable profits of UBS Switzerland AG and
other Swiss entities. They also included
 
a deferred tax benefit of USD 15m.
The non
 
-Swiss tax expenses
 
included current
 
tax expenses
 
of USD 718m
 
related to taxable
 
profits earned
 
by non
 
-Swiss
subsidiaries and
 
branches and
 
net deferred
 
tax expenses of USD 509m.
 
Expenses of USD 678m,
 
which primarily related
to
 
the
 
amortization
 
of
 
DTAs
 
previously
 
recognized
 
in
 
relation
 
to
 
tax losses
 
carried
 
forward
 
and
 
deductible temporary
differences of
 
UBS Americas Inc.,
 
were partly
 
offset by a
 
benefit of
 
USD 169m
 
in respect of
 
net upward
 
revaluations of
DTAs for certain entities, primarily in
 
connection with our business
 
planning process.
The effective tax rate for the year of 20.2%
 
is lower than our projected
 
rate for the year of 24%,
 
primarily as a result of
the aforementioned deferred tax benefit of USD 169m in respect of net
 
upward revaluations of DTAs and because no tax
expenses were recognized in
 
respect of pre-tax gains from dispositions
 
of UBS subsidiaries in 2022.
Excluding any
 
potential effects
 
from the remeasurement
 
of DTAs
 
in connection
 
with the business
 
planning process
 
and
any material
 
jurisdictional statutory tax rate
 
changes that could
 
be enacted, we
 
expect a tax
 
rate for 2023 of
 
around 23%.
›
 
Refer to “Note 8 Income
 
taxes”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for more information
›
 
Refer to the “Risk
 
factors” section of
 
this report for more
 
information
Total comprehensive income attributable
 
to shareholders
In 2022, total comprehensive income attributable to shareholders was USD
 
3,149m, reflecting net profit of USD 7,630m
and negative other comprehensive income
 
(OCI), net of tax, of USD 4,481
 
m.
OCI related to cash flow hedges
 
was negative USD 4,793m, mainly reflecting net unrealized losses
 
on US dollar hedging
derivatives resulting from significant
 
increases in the relevant US dollar
 
long-term interest rates.
Foreign currency translation OCI was negative
 
USD 525m, mainly due to the weakening
 
of the Swiss franc (1%) and the
euro (6%) against the US
 
dollar.
Defined benefit plan OCI, net of tax, was negative USD 10m.
 
Total net pre-tax OCI related to the Swiss pension plan was
negative
 
USD 285m.
 
This
 
was
 
predominantly
 
driven
 
by
 
an
 
extraordinary
 
employer
 
contribution
 
of
 
USD 209m
 
that
increased the gross plan assets and
 
resulted in an offsetting OCI loss as no net pension asset could be recognized
 
on the
balance
 
sheet
 
as
 
of
 
31 December
 
2022
 
due
 
to
 
the
 
asset
 
ceiling.
 
As
 
announced
 
in 2018,
 
UBS
 
agreed
 
to mitigate
 
the
effects from changes
 
to the Swiss
 
pension plan
 
implemented in
 
2019
 
and contributed CHF
 
646m (USD 698m)
 
in three
installments in 2020,
 
2021 and 2022. The extraordinary contribution
 
of USD 209m
 
in the first quarter of 2022 reflected
the third and final installment paid.
Total pre-tax OCI related to our non
 
-Swiss pension plans
 
was positive USD 212m, mostly driven by
 
the UK pension plan,
which recorded
 
positive net pre
 
-tax OCI
 
of USD 162m.
 
The positive OCI
 
in the UK
 
plan
 
reflected gains
 
of USD 1,474m
from the
 
remeasurement
 
of
 
the defined
 
benefit
 
obligation
 
(DBO),
 
partly offset
 
by a
 
negative return
 
on
 
plan
 
assets of
USD 1,312m.
 
The
 
DBO remeasurement
 
effect
 
was
 
mainly driven
 
by
 
a
 
gain
 
of
 
USD 1,451m
 
due
 
to
 
an increase
 
in
 
the
applicable discount rate.
 
 
 
 
Annual Report 2022 |
Financial
 
and
 
operating
 
performance
 
|
 
Group
 
perf
ormance
 
72
 
OCI
 
related
 
to
 
own
 
credit
 
on
 
financial
 
liabilities
 
designated
 
at
 
fair
 
value
 
was
 
positive
 
USD 796m,
 
primarily
 
due
 
to
 
a
widening of our own
 
credit spreads.
 
›
 
Refer to “Statement
 
of comprehensive
 
income” in the “Consolidated
 
financial statements”
 
section of this
 
report for more
information
›
 
Refer to “Note 1b
 
Changes in accounting
 
policies, comparability
 
and other adjustments”
 
in the “Consolidated
 
financial
statements”
 
section of this
 
report for more information
 
about the reclassification
 
of a portfolio
 
of assets from Financial
 
assets
measured at fair value
 
through OCI to Other
 
financial assets
 
measured at amortized
 
cost in 2022
›
 
Refer to “Note 20
 
Fair value measurement”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for more information
about own credit on
 
financial liabilities
 
designated at fair
 
value
›
 
Refer to “Note 25
 
Hedge accounting”
 
in the “Consolidated
 
financial statements”
 
section of this report
 
for more information
 
about
cash flow hedges
 
of forecast transactions
›
 
Refer to “Note 26
 
Post-employment
 
benefit plans”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for more
information about
 
OCI related to defined
 
benefit plans
Sensitivity to interest
 
rate movements
As of 31 December 2022,
 
we estimate that a parallel shift in yield curves by +100
 
basis points could lead to a combined
increase
 
in
 
annual
 
net
 
interest
 
income
 
of
 
approximately
 
USD 1.5bn
 
in
 
Global
 
Wealth
 
Management
 
and
 
Personal
 
&
Corporate
 
Banking
 
in
 
the
 
first
 
year
 
after
 
such
 
a
 
shift.
 
Of
 
this
 
increase,
 
approximately
 
USD 0.8bn,
 
USD 0.4bn
 
and
USD 0.2bn
 
would result
 
from changes
 
in Swiss
 
franc, US
 
dollar and
 
euro
 
interest rates,
 
respectively.
 
A parallel
 
shift
 
in
yield curves
 
by
 
–100
 
basis
 
points
 
could
 
lead
 
to a
 
combined
 
decrease
 
in
 
annual
 
net interest
 
income
 
of
 
approximately
USD 1.5bn in Global Wealth Management
 
and Personal & Corporate Banking in the first year after such a shift, showing
similar currency contributions as
 
for the aforementioned increase
 
in rates.
 
These estimates are based on a hypothetical
 
scenario of an immediate change in interest rates,
 
equal across all currencies
and
 
relative to
 
implied
 
forward
 
rates
 
as
 
of
 
31 December
 
2022
 
applied
 
to our
 
banking
 
book.
 
These
 
estimates further
assume no
 
change to
 
balance sheet
 
size and
 
structure, constant
 
foreign
 
exchange rates,
 
and no
 
specific management
action. The benefit of the negative rates exemption
 
threshold provided by the Swiss National Bank
 
is not in scope of this
net interest income sensitivity disclosure.
 
As average implied forward rates
 
were above 100 basis
 
points across all tenors
as of 31 December 2022, the impact would have been negligible.
 
These estimates do not represent a forecast of our net
interest income and actual changes
 
in net interest income could differ significantly
 
from the amounts referred to above.
Seasonal characteristics
Our revenues
 
may show
 
seasonal
 
patterns, notably
 
in the
 
Investment Bank
 
and
 
transaction-based revenues
 
for Global
Wealth Management, and typically
 
reflect the highest client
 
activity levels in
 
the first
 
quarter, with lower levels throughout
the rest of the year,
 
especially during the summer
 
months and the end
 
-of-year holiday season.
 
Key figures
 
Below we provide an
 
overview of selected key figures of the Group.
 
For further information about
 
key figures related to
capital management, refer to the
 
“Capital, liquidity and funding,
 
and balance sheet” section of this report.
Cost / income ratio
The cost
 
/ income
 
ratio was
 
72.1%, compared
 
with 73.6%,
 
mainly reflecting
 
a decrease
 
in operating
 
expenses, partly
offset by a decrease in total revenues.
Return on common equity tier 1
 
capital
The
 
annualized
 
return
 
on
 
our
 
common
 
equity
 
tier 1
 
(CET1)
 
capital
 
was
 
17.0%,
 
compared
 
with
 
17.5%,
 
reflecting
 
a
USD 2.2bn
 
increase in average
 
CET1 capital,
 
with a partly
 
offsetting effect
 
driven by
 
a USD 173m
 
increase in net
 
profit
attributable to shareholders.
CET1 capital
CET1
 
capital increased
 
by
 
USD 0.2bn
 
to
 
USD 45.5bn
 
as of
 
31 December
 
2022,
 
mainly as
 
a
 
result
 
of
 
operating
 
profit
before
 
tax
 
of
 
USD 9.6bn
 
with
 
associated
 
current
 
tax
 
expenses
 
of
 
USD 1.4bn,
 
partly
 
offset
 
by
 
share
 
repurchases
 
of
USD 5.6bn
 
under our
 
share repurchase
 
programs, dividend
 
accruals of USD
 
1.7bn, negative
 
foreign
 
currency effects
 
of
USD 0.5bn and compensation
 
-
 
and own share-related capital components
 
of USD 0.3bn.
Risk-weighted assets
Risk-weighted
 
assets (RWA)
 
increased
 
by USD
 
17.4bn to
 
USD 319.6bn,
 
primarily driven
 
by increases
 
of USD
 
10.4bn
 
in
credit and counterparty credit risk
 
RWA, USD
 
4.7bn in operational risk RWA,
 
and USD 2.4bn in market risk RWA.
CET1 capital ratio
Our CET1 capital ratio decreased
 
to 14.2% from 15
 
.0%, mainly reflecting a USD 17.4bn
 
increase in RWA.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Financial
 
and
 
operating
 
performance
 
|
 
Group
 
perf
ormance
 
73
 
Leverage ratio denominator
The
 
leverage ratio
 
denominator
 
(the
 
LRD)
 
decreased
 
by
 
USD 40.4bn
 
to USD
 
1,028.5bn,
 
driven
 
by
 
currency
 
effects
 
of
USD 24.5bn and a USD 15.9bn
 
decrease due to asset size and ot
 
her movements.
 
CET1 leverage ratio
Our CET1
 
leverage ratio increased to
 
4.42% from 4.24%, predominantly due
 
to the aforementioned decrease in
 
the LRD.
 
Going concern leverage ratio
Our going
 
concern leverage ratio was
 
unchanged
 
at 5.7%, as
 
the aforementioned
 
decrease in
 
the LRD
 
was offset
 
by a
USD 2.2bn decrease in
 
the going concern capital.
 
Personnel
The
 
number
 
of
 
personnel
 
employed
 
as
 
of
 
31
 
December
 
2022
 
increased
 
by
 
1,212
 
to
 
72,597
 
(full-time
 
equivalents)
compared with 31 December 2021
 
.
 
Equity,
 
CET1 capital and returns
As of or for the year ended
USD m, except where indicated
31.12.22
31.12.21
31.12.20
Net profit
Net profit attributable to shareholders
 
7,630
 
7,457
 
6,557
Equity
 
Equity attributable to shareholders
 
56,876
 
60,662
 
59,445
Less: goodwill and intangible assets
6,267
6,378
6,480
Tangible equity attributable to
 
shareholders
50,609
54,283
52,965
Less: other CET1 deductions
5,152
9,003
13,075
CET1 capital
45,457
45,281
39,890
Return on equity
Return on equity (%)
13.3
12.6
11.3
Return on tangible equity
 
(%)
14.9
14.1
12.8
Return on CET1 capital (%)
17.0
17.5
17.4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Financial
 
and
 
operating
 
performance
 
|
 
Global
 
Wealth
 
Management
 
74
 
Global Wealth Management
Global Wealth Management
1
As of or for the year ended
% change from
USD m, except where indicated
31.12.22
31.12.21
31.12.21
Results
Net interest income
5,273
4,244
24
Recurring net fee income
2
10,282
11,170
(8)
Transaction-based income
2
3,137
3,836
(18)
Other income
275
168
63
Total revenues
18,967
19,419
(2)
Credit loss expense / (release)
0
(29)
Operating expenses
13,989
14,665
(5)
Business division operating
 
profit / (loss) before tax
4,977
4,783
4
Performance measures and
 
other information
Pre-tax profit growth (year-on-year,
 
%)
2
4.1
19.0
Cost / income ratio (%)
2
73.8
75.5
Average attributed equity (USD bn)
3
20.0
18.8
6
Return on attributed equity (%)
2,3
24.9
25.4
Financial advisor compensation
4
4,508
4,860
(7)
Net new fee-generating assets (USD bn)
2
60.1
106.9
Fee-generating assets (USD bn)
2
1,271
1,482
(14)
Fee-generating asset margin (bps)
2
79.5
82.6
Net new money (USD bn)
2
40.5
111.1
Invested assets (USD bn)
2
2,815
3,303
(15)
Loans, gross (USD bn)
5
225.0
234.1
(4)
Customer deposits (USD bn)
5
348.2
369.8
(6)
Impaired loan portfolio as a percentage of total loan portfolio,
 
gross (%)
2,6
0.3
0.2
Advisors (full-time equivalents)
9,215
9,329
(1)
1 Comparatives may differ as a result of adjustments following
 
organizational changes, restatements
 
due to the retrospective adoption of new accounting
 
standards or changes in accounting policies, and events
 
after
the reporting period.
 
2 Refer to “Alternative
 
performance measures” in the appendix
 
to this report for the definition and
 
calculation method. Since the
 
second quarter of 2022, assets related
 
to our Global Financial
Intermediaries
 
business
 
have been
 
excluded
 
from
 
fee-generating
 
assets,
 
given that
 
fee-generating
 
investment
 
management
 
products,
 
such
 
as
 
mandates,
 
are
 
not
 
central
 
to
 
this
 
business.
 
Furthermore,
 
client
commitments into closed-ended
 
private-market
 
investment funds are included as
 
fee-generating assets
 
once recurring fees are charged, rather
 
than when commitments are
 
funded. These changes
 
have been applied
prospectively.
 
3 Refer to “Capital management”
 
in the “Capital, liquidity and funding,
 
and balance sheet” section of this report
 
for more information.
 
4 Relates to licensed professionals with
 
the ability to provide
investment advice to clients in the Americas.
 
Consists of cash and deferred
 
compensation awards
 
and is based on compensable
 
revenues and firm tenure
 
using a formulaic approach. It also includes
 
expenses related
to compensation commitments
 
with financial advisors
 
entered into at
 
the time of
 
recruitment that
 
are subject to
 
vesting requirements.
 
Recruitment loans
 
to financial
 
advisors were
 
USD 1,751m as of
 
31 December
2022.
 
5 Loans and Customer
 
deposits in this table include
 
customer brokerage
 
receivables and
 
payables, respectively,
 
which are presen
 
ted in a separate
 
reporting line on the
 
balance sheet.
 
6 Refer to the “Risk
management and control” section
 
of this report for more information
 
about (credit-)impaired
 
exposures. Excludes loans
 
to financial advisors.
 
2022 compared
 
with 2021
Results
Profit before
 
tax increased
 
by USD 194m,
 
or 4%,
 
to USD 4,977m,
 
mainly driven by
 
lower operating
 
expenses, as
 
2021
included expenses of USD 657m related
 
to litigation provisions for the French cross
 
-border matter,
 
partly offset by lower
total revenues.
Total revenues
Total
 
revenues
 
decreased
 
by
 
USD 452m,
 
or
 
2%,
 
to
 
USD 18,967m,
 
due
 
to
 
decreases
 
across
 
recurring
 
net
 
fee
 
and
transaction-based income, partly offset
 
by increases in net interest and
 
other income.
Net interest income increased
 
by USD 1,029m
 
,
 
or 24%,
 
to USD 5,273m, mainly due
 
to an increase in deposit revenues,
as
 
rising
 
interest
 
rates led
 
to
 
higher
 
deposit
 
margins.
 
This increase
 
was
 
partly offset
 
by
 
the
 
effects of
 
shifts
 
to
 
lower-
margin products and higher interest rates paid
 
to clients. Loan revenu
 
es decreased, driven by lower loan
 
margins.
Recurring
 
net
 
fee
 
income
 
decreased
 
by
 
USD 888m,
 
or
 
8%,
 
to
 
USD 10,282m,
 
primarily
 
driven
 
by
 
negative
 
market
performance and foreign
 
currency effects, partly offset by incremental revenues
 
from net new fee-generating
 
assets.
Transaction
 
-based
 
income
 
decreased
 
by
 
USD 699m,
 
or
 
18%,
 
to
 
USD 3,137m,
 
mainly reflecting
 
lower
 
levels
 
of
 
client
activity in Asia Pacific,
 
Americas and EMEA.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Financial
 
and
 
operating
 
performance
 
|
 
Global
 
Wealth
 
Management
 
75
 
Other income increased
 
by USD 107m
 
to USD 275m, including
 
a USD 133m gain
 
from the sale of
 
our domestic wealth
management business in Spain, an USD 86m gain from the sale of UBS Swiss Financial Advisers AG and a
 
USD 41m gain
from
 
the
 
sale
 
of
 
our US
 
alternative investments
 
administration
 
business
 
in 2022.
 
2021
 
included
 
a gain
 
of USD
 
100m
related to the
 
sale of our domestic
 
wealth management
 
business
 
in Austria. Additionally,
 
2022 included
 
lower gains on
our equity ownership of
 
SIX Group and lower gains from
 
sales of securities positions.
Credit loss expense / release
Net credit loss
 
expenses were
 
zero, as net
 
expenses related
 
to credit-impaired (stage
 
3) positions
 
were entirely offset
 
by
net releases from stage 1 and
 
2 positions, compared with net
 
releases of USD 29m.
Operating expenses
Operating
 
expenses
 
decreased
 
by
 
USD
 
676m
,
 
or
 
5%,
 
to
 
USD
 
13,989m
,
 
primarily
 
due
 
to
 
2021
 
including
 
the
aforementioned
 
expenses
 
of
 
USD 657m
 
related
 
to
 
litigation
 
provisions
 
for
 
the
 
French
 
cross-border
 
matter.
 
Operating
expenses in 2022 included
 
lower personnel
 
expenses, primarily
 
as a result
 
of lower financial
 
advisor variable compensation
following a decrease in compensable
 
revenues, and
 
benefited from positive foreign
 
currency effects. These
 
effects were
partly
 
offset
 
by
 
higher
 
technology
 
expenses
 
and
 
higher
 
expenses
 
for
 
professional
 
fees,
 
travel
 
and
 
entertainment,
outsourcing,
 
and marketing in 2022.
 
Pre-tax profit growth
Pre-tax profit growth
 
in 2022 was 4.1%, compared
 
with 19.0% in 2021. Our target range
 
is 10–15% over the cycle.
Cost / income ratio
The cost / income ratio decreased
 
to 73.8% from 75.5%,
 
reflecting positive operating leverage.
 
Fee-generating assets
Fee-generating
 
assets
 
decreased
 
by
 
USD 211bn,
 
or
 
14%,
 
to
 
USD 1,271bn,
 
mainly
 
driven
 
by
 
net
 
negative
 
market
performance and
 
foreign
 
currency effects
 
.
 
Net new
 
fee-generating
 
asset inflows
 
were USD
 
60.1bn,
 
with inflows
 
in all
regions,
 
and resulted in an
 
annualized net new fee-generating asset growth
 
rate of 4.1%.
Loans
Loans decreased
 
by USD 9.1bn,
 
or 4%,
 
to USD 225.0bn,
 
primarily driven by
 
negative foreign
 
exchange effects
 
and net
new loan outflows of
 
USD 2.5bn.
 
›
 
Refer to the “Risk
 
management and
 
control” section of this
 
report for more information
Customer deposits
Customer
 
deposits
 
decreased
 
by
 
USD 21.6bn
 
to
 
USD 348.2bn,
 
mainly
 
driven
 
by
 
US
 
dollar
 
deposit
 
shifts
 
into
 
other
products, as well as negative foreign
 
currency effects.
 
Regional breakdown
 
of performance
 
measures
As of or for the year ended 31.12.22
USD bn, except where indicated
Americas
1
Switzerland
EMEA
2
Asia Pacific
Global Wealth
Management
3
Total revenues (USD m)
 
10,634
 
1,859
 
3,913
 
2,556
 
18,967
Operating profit / (loss) before tax (USD m)
 
1,748
 
817
 
1,490
 
943
 
4,977
Cost / income ratio (%)
4
 
83.7
 
55.2
 
61.9
 
63.2
 
73.8
Loans, gross
 
101.2
5
 
45.1
 
43.4
 
34.5
 
225.0
Net new loans
 
9.0
 
2.5
 
(1.4)
 
(13.2)
 
(2.5)
Fee-generating assets
4
 
779
 
119
 
259
 
114
 
1,271
Net new fee-generating assets
4
 
17.2
 
9.1
 
20.3
 
13.7
 
60.1
Net new fee-generating asset growth
 
rate (%)
4
 
1.9
 
7.0
 
6.1
 
11.8
 
4.1
Invested assets
4
 
1,581
 
253
 
541
 
437
 
2,815
Net new money
4
 
7.0
 
12.3
 
21.9
 
(0.6)
 
40.5
Advisors (full-time equivalents)
 
6,245
 
676
 
1,372
 
847
 
9,215
1 Including the following
 
business units:
 
United States and Canada;
 
and Latin
 
America.
 
2 Including the following
 
business units:
 
Europe; Central
 
& Eastern Europe,
 
Greece and Israel;
 
and Middle East
 
and Africa.
 
3 Including minor functions, which
 
are not included in the four regions individually
 
presented in this table, with USD
 
5m of total revenues,
 
USD 21m of operating loss before
 
tax, USD 0.7bn of loans,
 
USD 0.6bn of net
new loan inflows, USD 0.8bn
 
of fee-generating assets,
 
USD 0.1bn of net new fee-
 
generating asset outflows,
 
USD 3bn of invested assets,
 
USD 0.1bn of net new money
 
outflows and 74 advisors in
 
2022.
 
4 Refer to
“Alternative performance
 
measures” in the appendix to this report for the
 
definition and calculation method.
 
5 Loans include customer
 
brokerage receivables,
 
which are presented in a separate
 
reporting line on the
balance sheet.
Regional comments: 2022
 
compared with 2021
Americas
Profit
 
before
 
tax
 
decreased
 
by
 
USD 253m
 
to
 
USD 1,748m,
 
mainly driven
 
by
 
higher
 
operating
 
expenses,
 
including
 
an
increase
 
in
 
net
 
expenses
 
for
 
litigation,
 
regulatory
 
and
 
similar
 
matters.
 
Total
 
revenues
 
decreased
 
by
 
USD 22m
 
to
USD 10,634m, mainly driven by lower recurring
 
net fee and transaction-based income, partly
 
offset by higher net interest
income.
 
The
 
cost
 
/
 
income
 
ratio
 
increased
 
to
 
83.7%
 
from
 
81.4%.
 
Loans
 
increased
 
10%
 
to
 
USD 101.2bn,
 
reflecting
USD 9.0bn of net new loan
 
inflows.
 
Net new fee-generating assets were USD
 
17.2bn.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Financial
 
and
 
operating
 
performance
 
|
 
Global
 
Wealth
 
Management
 
76
 
Switzerland
Profit
 
before
 
tax increased
 
by
 
USD 67m
 
to
 
USD 817m,
 
mostly driven
 
by
 
lower
 
operating
 
expenses,
 
as
 
2021
 
included
expenses
 
of USD
 
85m
 
related
 
to litigation
 
provisions
 
for
 
the French
 
cross-border
 
matter.
 
Total
 
revenues
 
decreased
 
by
USD 41m
 
to
 
USD 1,859m,
 
mainly
 
driven
 
by
 
lower
 
recurring
 
net
 
fee
 
income,
 
partly
 
offset
 
by
 
higher
 
net
 
interest
 
and
transaction-based income. The cost / income ratio
 
decreased to 55.2% from 60.8%. Loans increased 4% to
 
USD 45.1bn,
driven by net new loan inflows
 
of USD 2.5bn, partly offset by negative foreign
 
currency effects. Net new fee
 
-generating
assets were USD 9.1bn
 
.
EMEA
Profit before tax increased by USD 678m to USD 1,490m, primarily driven by
 
lower operating expenses, as 2021 included
expenses of
 
USD 572m
 
related to
 
litigation provisions
 
for the
 
French cross
 
-border
 
matter.
 
Total
 
revenues decreased
 
by
USD 35m to
 
USD 3,913m, due
 
to lower recurring
 
net fee and
 
transaction-based income,
 
partly offset by
 
an increase
 
in
net interest
 
income, as well
 
as an
 
increase in
 
other income,
 
which was
 
driven by
 
the aforementioned
 
gains from
 
sales.
The
 
cost
 
/
 
income
 
ratio
 
decreased
 
to
 
61.9%
 
from
 
79.6%.
 
Loans
 
decreased
 
12%
 
to
 
USD 43.4bn,
 
mainly
 
reflecting
negative
 
foreign
 
currency
 
effects
 
and
 
net
 
new
 
loan
 
outflows
 
of
 
USD 1.4bn.
 
Net
 
new
 
fee-generating
 
assets
 
were
USD 20.3bn.
Asia Pacific
Profit before tax decreased by USD 294m to USD 943m. Total
 
revenues decreased by USD 34
 
3m
 
to USD 2,556m, mostly
driven by lower transaction
 
-based and recurring
 
net fee income, partly
 
offset by an
 
increase in net
 
interest income.
 
The
cost
 
/
 
income
 
ratio
 
increased
 
to
 
63.2%
 
from
 
57.4%.
 
Loans
 
decreased
 
29%
 
to
 
USD 34.5bn,
 
driven
 
by
 
net
 
new
 
loan
outflows of USD 13.2bn, as clients reduced their
 
debts in light of market
 
uncertainty,
 
as well as negative
 
foreign currency
effects. Net new fee-generating
 
assets were USD 13.7bn
 
.
 
 
 
Personal & Corporate Banking
Personal & Corporate
 
Banking – in Swiss
 
francs
1
As of or for the year ended
% change from
CHF m, except where indicated
31.12.22
31.12.21
31.12.21
Results
Net interest income
2,087
1,941
8
Recurring net fee income
2
812
774
5
Transaction-based income
2
1,154
1,079
7
Other income
46
110
(58)
Total revenues
4,099
3,904
5
Credit loss expense / (release)
36
(79)
Operating expenses
2,337
2,397
(2)
Business division operating
 
profit / (loss) before tax
1,726
1,587
9
Performance measures and
 
other information
Pre-tax profit growth (year-on-year,
 
%)
2
8.8
35.1
Cost / income ratio (%)
2
57.0
61.4
Average attributed equity (CHF bn)
3
8.8
8.4
6
Return on attributed equity (%)
2,3
19.5
19.0
Net interest margin (bps)
2
147
140
Fee and trading income for Corporate
 
& Institutional Clients
2
810
791
2
Investment products for Personal Banking
 
(CHF bn)
2
21.6
23.5
(8)
Net new investment products for Personal Banking
 
(CHF bn)
2
1.99
2.66
Active Digital Banking clients in Personal Banking
 
(%)
2,4
74.3
70.3
Active Mobile Banking clients in Personal Banking
 
(%)
2
56.5
46.7
Active Digital Banking clients in Corporate & Institutional Clients
 
(%)
2
80.0
79.3
Loans, gross (CHF bn)
142.9
139.3
3
Customer deposits (CHF bn)
167.2
162.1
3
Impaired loan portfolio as a percentage of total loan portfolio,
 
gross (%)
2,5
0.8
0.9
1 Comparatives may differ
 
as a result of adjustments following organizational
 
changes, restatements
 
due to the retrospective adoption
 
of new accounting standards or changes
 
in accounting policies, and events
 
after
the reporting
 
period.
 
2 Refer to
 
“Alternative
 
performance measures”
 
in the appendix
 
to this report
 
for the
 
definition and
 
calculation method.
 
3 Refer
 
to “Capital
 
management”
 
in the “Capital,
 
liquidity and
funding, and balance sheet” section
 
of this report for more information.
 
4 In 2022, 86.0%
 
of clients of Personal Banking
 
were “activated users”
 
of Digital Banking (i.e., clients
 
who had logged into Digital
 
Banking
at least once in the course
 
of their relationship with
 
UBS).
 
5 Refer to the “Risk management
 
and
 
control” section
 
of this report for more information
 
about (credit
 
-)impaired exposures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Financial
 
and
 
operating
 
performance
 
|
 
Personal
 
&
 
Corporate
 
Banking
 
77
 
2022 compared
 
with 2021
Results
Profit before
 
tax increased
 
by CHF 139m,
 
or 9%,
 
to CHF 1,726m,
 
reflecting higher total
 
revenues and
 
lower operating
expenses, partly offset by net credit
 
loss expenses, compared
 
with net credit loss releases
 
in 2021.
Total revenues
Total
 
revenues increased by
 
CHF 195m, or 5%,
 
to CHF 4,099m,
 
reflecting increases
 
across all income lines except
 
other
income.
Net
 
interest
 
income
 
increased
 
by
 
CHF 146m
 
to CHF
 
2,087m,
 
mainly driven
 
by
 
higher deposit
 
revenues,
 
as a
 
result of
rising interest
 
rates. This
 
increase was
 
partly offset
 
by a
 
lower benefit
 
from the
 
Swiss National
 
Bank deposit
 
exemption
and lower deposit fees.
Recurring net fee income increased by
 
CHF 38m to CHF 812m,
 
primarily driven by higher revenues from
 
account fees.
Transaction-based income increased by CHF
 
75m to CHF 1,154m, largely driven by higher revenues
 
from credit card and
foreign exchange
 
transactions, reflecting
 
a continued
 
increase in spending
 
on travel and
 
leisure by clients
 
following the
easing of COVID-19-related restrictions
 
in certain countries compared with 2021
 
.
Other income decreased by CHF 64m to CHF 46m, mostly due to lower gains on our equity
 
ownership of SIX Group.
 
The
prior year also included a gain
 
of CHF 26m from the sale of several small properties
 
in that year.
Credit loss expense / release
Net credit loss
 
expenses were CHF 36m, compared
 
with net releases of CHF 79m. Stage 1 and 2 net credit loss expenses
were CHF 25m. Prior-year stage 1 and
 
2 net credit loss releases were CHF 57m, largely resulting from a
 
partial release of
a post
 
-model adjustment
 
during
 
the
 
year,
 
as well
 
as
 
model updates.
 
Stage 3
 
net credit
 
loss expenses
 
were CHF
 
11m,
compared with net releases
 
of CHF 23m in 2021.
Operating expenses
Operating expenses decreased by CHF 60m, or 2%, to CHF 2,337m, mostly due to 2021 including expenses of CHF 76m
(USD 83m) related to litigation provisions
 
for the French cross
 
-border matter.
Cost / income ratio
The
 
cost
 
/
 
income
 
ratio
 
was 57.0%
 
,
 
compared
 
with
 
61.4% in
 
2021,
 
reflecting both
 
higher
 
total revenues
 
and
 
lower
operating expenses.
 
Personal & Corporate
 
Banking – in US
 
dollars
1
As of or for the year ended
% change from
USD m, except where indicated
31.12.22
31.12.21
31.12.21
Results
Net interest income
2,191
2,120
3
Recurring net fee income
2
852
846
1
Transaction-based income
2
1,212
1,178
3
Other income
48
119
(60)
Total revenues
4,302
4,263
1
Credit loss expense / (release)
39
(86)
Operating expenses
2,452
2,618
(6)
Business division operating
 
profit / (loss) before tax
1,812
1,731
5
Performance measures and
 
other information
Pre-tax profit growth (year-on-year,
 
%)
2
4.7
37.5
Cost / income ratio (%)
2
57.0
61.4
Average attributed equity (USD bn)
3
9.3
9.2
1
Return on attributed equity (%)
2,3
19.5
18.9
Net interest margin (bps)
2
146
142
Fee and trading income for Corporate
 
& Institutional Clients
2
851
864
(1)
Investment products for Personal Banking
 
(USD bn)
2
23.4
25.8
(9)
Net new investment products for Personal Banking
 
(USD bn)
2
2.11
2.90
Active Digital Banking clients in Personal Banking
 
(%)
2,4
74.3
70.3
Active Mobile Banking clients in Personal Banking
 
(%)
2
56.5
46.7
Active Digital Banking clients in Corporate & Institutional Clients
 
(%)
2
80.0
79.3
Loans, gross (USD bn)
154.6
152.8
1
Customer deposits (USD bn)
180.8
177.8
2
Impaired loan portfolio as a percentage of total loan portfolio,
 
gross (%)
2,5
0.8
0.9
1 Comparatives may differ as a result of adjustments following
 
organizational changes, restatements
 
due to the retrospective adoption
 
of new accounting standards or changes in accounting
 
policies, and events after
the reporting
 
period.
 
2 Refer to
 
“Alternative
 
performance measures”
 
in the
 
appendix to
 
this report
 
for the
 
definition and
 
calculation
 
method.
 
3 Refer
 
to “Capital
 
management” in
 
the “Capital,
 
liquidity and
funding, and balance sheet” section
 
of this report for more information.
 
4 In 2022, 86.0%
 
of clients of Personal Banking were
 
“activated users”
 
of Digital Banking (i.e., clients
 
who had logged into Digital
 
Banking
at least once in the course
 
of their relationship with
 
UBS).
 
5 Refer to the “Risk management
 
and
 
control” section
 
of this report for more information
 
about (credit
 
-)impaired exposures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Financial
 
and
 
operating
 
performance
 
|
 
Asset
 
Management
 
78
 
Asset Management
Asset Management
1
As of or for the year ended
% change from
USD m, except where indicated
31.12.22
31.12.21
31.12.21
Results
Net management fees
2
2,050
2,320
(12)
Performance fees
64
260
(75)
Net gain from disposal of a joint venture / an associate
848
37
Total revenues
2,961
2,617
13
Credit loss expense / (release)
0
1
Operating expenses
1,564
1,586
(1)
Business division operating
 
profit / (loss) before tax
1,397
1,030
36
Performance measures and
 
other information
Pre-tax profit growth (year-on-year,
 
%)
3
35.7
(29.2)
Cost / income ratio (%)
3
52.8
60.6
Average attributed equity (USD bn)
4
1.7
2.0
(13)
Return on attributed equity (%)
3,4
81.2
51.8
Gross margin on invested assets (bps)
3
28
23
Information by business line
 
/ asset class
Net new money (USD bn)
3
Equities
(12.8)
10.3
Fixed Income
36.5
22.7
of which: money market
26.3
(3.1)
Multi-asset & Solutions
(1.3)
6.8
Hedge Fund Businesses
2.3
5.7
Real Estate & Private Markets
0.2
(0.6)
Total net new
 
money
5
24.8
44.9
of which: net new money excluding
 
money market
(1.6)
48.0
Invested assets (USD bn)
3
Equities
456
580
(21)
Fixed Income
296
285
4
of which: money market
119
92
29
Multi-asset & Solutions
155
193
(19)
Hedge Fund Businesses
55
55
1
Real Estate & Private Markets
102
98
4
Total invested assets
1,064
1,211
(12)
of which: passive strategies
443
540
(18)
Information by region
Invested assets (USD bn)
3
Americas
298
287
4
Asia Pacific
150
190
(21)
Europe, Middle East and Africa (excluding
 
Switzerland)
263
334
(21)
Switzerland
354
399
(11)
Total invested assets
1,064
1,211
(12)
Information by channel
Invested assets (USD bn)
3
Third-party institutional
606
707
(14)
Third-party wholesale
116
145
(20)
UBS’s wealth management businesses
342
359
(5)
Total invested assets
1,064
1,211
(12)
1 Comparatives may differ
 
as a result of adjustments following organizational
 
changes, restatements
 
due to the retrospective adoption
 
of new accounting standards or changes
 
in accounting policies, and events
 
after
the reporting period.
 
2 Net management
 
fees include transaction
 
fees, fund administration
 
revenues (including
 
net interest and
 
trading income
 
from lending activities
 
and foreign exchange
 
hedging as part
 
of the
fund services offering), distribution fees,
 
incremental fund-related
 
expenses, gains or losses from
 
seed money and co-investments,
 
funding costs, the negative
 
pass-through impact of third-party
 
performance fees, and
other items
 
that are
 
not Asset
 
Management’s
 
performance fees.
 
3 Refer
 
to “Alternative
 
performance measures”
 
in the
 
appendix to
 
this report
 
for the
 
definition and
 
calculation
 
method.
 
4 Refer
 
to “Capital
management” in the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section of this report
 
for more information.
 
5 A net
 
new money inflow
 
of USD 4.1bn was
 
recognized in the
 
fourth quarter of
 
2022 for the
provision of hedge fund services
 
to Global Wealth
 
Management Americas.
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Financial
 
and
 
operating
 
performance
 
|
 
Asset
 
Management
 
79
 
2022 compared
 
with 2021
Results
Profit before tax increased by USD
 
367m, or 36%, to USD 1,397m. This increase reflected
 
a gain of USD 848m from the
sale of our shareholding in the Mitsubishi Corp.-UBS Realty Inc. joint venture in
 
the second quarter of 2022. Profit before
tax
 
in
 
2021
 
included
 
a
 
post-tax
 
gain
 
of
 
USD 37m
 
related
 
to
 
the
 
sale
 
of
 
our
 
minority
 
interest
 
in
 
Clearstream
 
Fund
Centre AG. Excluding these gains, profit before tax decreased by USD 443m, or 45%, to USD 550m, reflecting lower net
management and performance fees.
›
 
Refer to “Note 29
 
Changes in organization
 
and acquisitions
 
and disposals of
 
subsidiaries and
 
businesses” in
 
the “Consolidated
financial statements”
 
section of this
 
report for more information
 
about the aforementioned
 
sales
Total revenues
Total
 
revenues increased
 
by USD 344m,
 
or 13%, to
 
USD 2,961m. Excluding
 
the aforementioned
 
gains from
 
sales, total
revenues decreased by USD
 
466m, or 18%.
Net
 
management
 
fees
 
decreased
 
by
 
USD 270m,
 
or
 
12%,
 
to
 
USD 2,050m,
 
on
 
a
 
lower
 
average
 
invested
 
asset
 
base,
reflecting negative market performance
 
and foreign currency effects.
Performance fees decreased by USD
 
196m to USD 64m, mainly in Hedge
 
Fund Businesses and Equities.
Operating expenses
Operating expenses
 
decreased by
 
USD 22m, or 1%,
 
to USD 1,564m, mainly
 
reflecting positive foreign
 
currency effects,
lower personnel expenses
 
and lower net
 
expenses for litigation, regulatory and
 
similar matters, as
 
well as lower
 
consulting
expenses.
 
These decreases
 
were almost
 
entirely offset
 
by higher
 
expenses
 
for technology,
 
market data
 
services, travel,
regulatory,
 
and risk management.
Cost / income ratio
The cost / income ratio was 52.8%,
 
compared with 60.6% in 2021. Excluding the aforementioned
 
gains from sales, the
cost / income ratio was 74.0%,
 
compared with 61.5% in 2021.
Invested assets
Invested assets
 
decreased
 
to USD
 
1,064bn
 
from USD
 
1,211bn,
 
reflecting negative
 
market performance
 
of USD
 
137bn
and
 
negative
 
foreign
 
currency
 
effects
 
of
 
USD 32bn,
 
partly offset
 
by
 
net
 
new
 
money
 
inflows
 
of
 
USD 25bn.
 
Excluding
money market flows, net new money was
 
negative USD 2bn.
Investment
 
performance
As of
 
year-end 2022, Morningstar assigned
 
a four-
 
or five-star rating
 
to 62% of
 
our retail and institutional
 
funds assets
under management
 
(AuM)
 
(both actively managed
 
and passive),
 
on an AuM
 
-weighted basis.
 
Furthermore, 47%
 
of our
actively managed
 
open-ended
 
retail and
 
institutional funds
 
AuM
 
are ranked,
 
on an AuM
 
-weighted
 
basis over
 
a three-
year investment period, above
 
their respective peer median.
 
 
Investment performance
 
as of 31 December
 
2022
In %
Total traditional
investments
Equities
Fixed Income
Multi-asset
% of UBS Asset Management fund assets rated as 4- or
 
5-star
1,2
62
71
55
41
% of UBS Asset Management fund assets above peer
 
median over a 3-year investment period
1,3
47
46
52
44
1 Morningstar® Essentials Quantitative
 
Star Rating & Rankings; ©
 
Morningstar 2023, extract
 
date 12 January 2023. All rights reserved.
 
The information
 
contained herein: (1) is proprietary to
 
Morningstar and / or its
content providers;
 
(2) may not
 
be copied or
 
distributed; (3)
 
is not warranted
 
to be accurate,
 
complete or
 
timely; and (4)
 
does not constitute
 
advice of
 
any kind,
 
whether investment,
 
tax, legal or
 
otherwise. User
 
is
solely responsible for ensuring
 
that it complies
 
with all laws,
 
regulations and restrictions
 
applicable to it. Neither
 
Morningstar nor its
 
content providers are
 
responsible for any
 
damages or losses
 
arising from any
 
use
of this
 
information,
 
except where
 
such damages
 
or losses
 
cannot
 
be limited
 
or excluded
 
by law
 
in your
 
jurisdiction.
 
Past perf
 
ormance
 
is no
 
guarantee
 
of future
 
results.
 
For more
 
detailed information
 
about the
Morningstar Rating,
 
including its
 
methodology,
 
please go
 
to: https://s21.q4cdn.com/198919461/files/doc_downloads/othe_disclosure_materials/MorningstarRatingforFunds.pdf.
 
2 Percentage
 
of AuM
 
to which
Morningstar has assigned a
 
four-
 
or five-star rating. AuM
 
reflect the AuM
 
of Asset Management’s
 
retail and institutional
 
funds (both actively
 
managed and passive) across
 
all domiciles for
 
which Asset Management
owns the investment performance, i.e.,
 
Asset Management is either the sole portfolio
 
manager or co-portfolio manager.
 
Universe is approximately 31%
 
of all active and passive traditional assets of Asset Management
(Equities, Fixed Income excluding money market, and Multi
 
-asset) as of 31 December 2022.
 
3 Percentage of AuM above peer median over a three-year investment period. AuM reflect the AuM of Asset Management’s
actively managed
 
open-ended retail
 
and institutional
 
funds across
 
all domiciles
 
for which Asset
 
Management owns
 
the investment
 
performance,
 
i.e., Asset
 
Management is either
 
the sole
 
portfolio manager
 
or co-
portfolio manager.
 
Universe is approximately
 
29% of all active traditional
 
assets of Asset Management
 
(Equities, Fixed Income
 
excluding money
 
market, and Multi-asset)
 
as of 31 December 2022.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Financial
 
and
 
operating
 
performance
 
|
 
Investment
 
Bank
 
80
 
Investment
 
Bank
Investment Bank
1
As of or for the year ended
% change from
USD m, except where indicated
31.12.22
31.12.21
31.12.21
Results
Advisory
733
988
(26)
Capital Markets
854
2,170
(61)
Global Banking
1,587
3,158
(50)
Execution Services
1,643
1,894
(13)
Derivatives & Solutions
3,665
3,422
7
Financing
1,822
979
86
Global Markets
7,129
6,296
13
of which: Equities
4,970
4,581
8
of which: Foreign Exchange,
 
Rates and Credit
 
2,160
1,715
26
Total revenues
8,717
9,454
(8)
Credit loss expense / (release)
(12)
(34)
(65)
Operating expenses
6,832
6,858
0
Business division operating
 
profit / (loss) before tax
1,897
2,630
(28)
Performance measures and
 
other information
Pre-tax profit growth (year-on-year,
 
%)
2
(27.9)
5.9
Cost / income ratio (%)
2
78.4
72.5
Average attributed equity (USD bn)
3
13.0
13.0
0
Return on attributed equity (%)
2,3
14.6
20.3
Average VaR (1-day, 95%
 
confidence, 5 years of historical data)
10
11
(5)
1 Comparative
 
figures in
 
this table
 
may differ
 
as a
 
result of
 
adjustments following
 
organizational changes,
 
restatements
 
due to the
 
retrospective
 
adoption
 
of new
 
accounting
 
standards or
 
changes
 
in accounting
policies, and events
 
after the reporting
 
period.
 
2 Refer to “Alternative
 
performance measures”
 
in the appendix
 
to this report
 
for the definition
 
and calc
 
ulation method.
 
3 Refer
 
to “Capital management”
 
in the
“Capital, liquidity and funding,
 
and balance sheet”
 
section of this report for more
 
information.
 
2022 compared
 
with 2021
Results
Profit before tax decreased
 
by USD 733m, or
 
28%, to USD 1,897m, driven
 
by lower total revenues
 
and lower net credit
loss releases, partly offset
 
by lower operating expenses.
Total revenues
Total
 
revenues
 
decreased
 
by
 
USD 737m,
 
or
 
8%,
 
to
 
USD 8,717m,
 
reflecting
 
lower
 
revenues
 
in
 
Global
 
Banking,
 
partly
offset by higher revenues
 
in Global Markets.
Global Banking
Global Banking
 
revenues decreased
 
by USD
 
1,571m,
 
or 50%,
 
to USD 1,587m,
 
driven by Capital
 
Markets and
 
Advisory
revenues, compared with a 43%
 
decrease in the overall global fee pool.
Advisory revenues
 
decreased by
 
USD 255m, or 26%,
 
to USD 733m, mostly
 
due to lower merger
 
and acquisition
 
(M&A)
transaction revenues
 
,
 
which decreased
 
by USD 217m,
 
or 25%,
 
compared with
 
a 21%
 
decrease in
 
the global
 
M&A
 
fee
pool.
Capital
 
Markets
 
revenues
 
decreased
 
by
 
USD 1,316m,
 
or
 
61%,
 
to
 
USD 854m,
 
primarily
 
due
 
to
 
lower
 
Equity
 
Capital
Markets (ECM)
 
revenues,
 
which decreased
 
by USD 738m,
 
or 71%,
 
compared with
 
a 67%
 
decrease in
 
the global
 
ECM
fee
 
pool.
 
Leveraged
 
Capital
 
Markets
 
(LCM)
 
fee
 
revenues
 
decreased
 
by
 
USD 297m,
 
or
 
58%,
 
compared
 
with
 
a
 
54%
decrease in the global LCM fee pool.
Global Markets
Global Markets revenues
 
increased by
 
USD 833m, or
 
13%, to USD 7,129m,
 
driven by higher
 
revenues in
 
our Financing
and Derivatives & Solutions businesses,
 
partly offset by lower revenues in Execution
 
Services.
Execution
 
Services revenues
 
decreased
 
by
 
USD 251m,
 
or
 
13%,
 
to USD
 
1,643m,
 
mainly driven
 
by
 
lower
 
Cash
 
Equities
revenues.
Derivatives & Solutions revenues increased by USD 243m, or 7%, to USD 3,665m, mostly
 
driven by an increase in Foreign
Exchange
 
and
 
Rates,
 
which
 
benefited
 
from
 
elevated
 
volatility
 
due
 
to
 
inflationary
 
concerns
 
and
 
the
 
actions
 
of
 
central
banks, partly offset by a decrease in Equity Derivatives
 
revenues due to lower
 
levels of client activity.
Financing
 
revenues
 
increased
 
by
 
USD 843m,
 
or
 
86%,
 
to
 
USD 1,822m,
 
predominantly
 
due
 
to
 
2021
 
including
 
an
USD 861m loss on
 
the default of a US-based client of our
 
prime brokerage business.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Financial
 
and
 
operating
 
performance
 
|
 
Investment
 
Bank
 
81
 
Global Markets
 
Equities
 
revenues
 
increased by
 
USD 389m,
 
or 8%,
 
to USD 4,970m,
 
mainly driven
 
by Equity
 
Financing,
due to the aforementioned loss in our prime brokerage business in 2021, partly
 
offset by lower revenues in Cash Equities
and Equity Derivatives.
Global Markets Foreign
 
Exchange, Rates
 
and Credit revenues
 
increased by USD 445m,
 
or 26%, to
 
USD 2,160m, mostly
driven by an increase in
 
Foreign Exchange and Rates products, which benefited from elevated
 
volatility due to inflationary
concerns and the actions of
 
central banks.
Credit loss expense / release
Net credit
 
loss releases were USD 12m, primarily
 
related to credit-impaired (stage 3) positions, compared
 
with net releases
of USD 34m in 2021.
Operating expenses
Operating expenses decreased by USD
 
26m, to USD 6,832m, with positive foreign currency effects
 
being almost entirely
offset by increases across
 
a number of expense lines.
Cost / income ratio
The cost
 
/ income
 
ratio increased
 
to 78.4%
 
from 72.5%,
 
as total
 
revenues
 
decreased
 
by 8%
 
and operating
 
expenses
were in line with 2021.
 
 
 
Group Functions
Group Functions
1
As of or for the year ended
% change from
USD m
31.12.22
31.12.21
31.12.21
Results
Total revenues
(385)
(359)
7
Credit loss expense / (release)
3
0
801
Operating expenses
92
330
(72)
Operating profit / (loss) before
 
tax
(480)
(689)
(30)
of which: Group Treasury
(404)
(446)
(9)
of which: Non-core and Legacy Portfolio
131
(79)
of which: Group Services
(206)
(165)
25
1 Comparatives may differ
 
as a result of adjustments following organizational
 
changes, restatements
 
due to the retrospective adoption
 
of new accounting standards or changes
 
in accounting policies, and events
 
after
the reporting period.
 
2022 compared
 
with 2021
Results
Group Functions recorded
 
a loss before tax of USD
 
480m, compared with a
 
loss of USD 689m
 
.
 
Group Treasury
The Group Treasury result was negative
 
USD 404m, compared
 
with negative USD 446m.
The
 
net
 
effects
 
of
 
accounting
 
asymmetries,
 
including
 
hedge
 
accounting
 
ineffectiveness,
 
were
 
negative
 
USD 375m,
compared with
 
negative USD 341m.
 
Accounting asymmetries
 
are generally
 
expected
 
to mean revert
 
to zero over
 
time,
though the length of time needed
 
for full reversion
 
can vary significantly, depending
 
on market conditions.
Income
 
related
 
to
 
centralized
 
Group
 
Treasury
 
risk
 
management
 
was
 
negative
 
USD 2m,
 
compared
 
with
 
negative
USD 63m.
 
Non-core and Legacy Portfolio
The Non
 
-core and
 
Legacy Portfolio
 
result was
 
positive USD
 
131m,
 
compared
 
with negative
 
USD 79m.
 
This was
 
mainly
due to income of USD 114
 
m
 
related to a legacy litigation settlement and
 
a legacy bankruptcy claim, and valuation gains
of USD 81m on our
 
USD 1.3bn portfolio of auction rate securities
 
(ARS). Our remaining
 
exposures to ARS were
 
all rated
investment grade as of 31
 
December 2022.
Group Services
The Group Services result was negative USD 206m, compared with negative USD 165m, mainly driven by higher funding
costs related to deferred tax
 
assets, partly offset by lower expenses
 
relating to our legal entity transformation
 
program.
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
82
 
Risk, capital, liquidity
 
and
funding, and balance
 
sheet
Management report
 
 
 
Audited information
 
according to IFRS
 
7 and IAS 1
Risk and capital disclosures provided in
 
line with the requirements
 
of
 
International Financial Reporting Standard 7 (IFRS 7),
Financial Instruments: Disclosures,
and International Accounting Standard 1 (IAS 1),
Presentation of
 
Financial Statements,
form part of
 
the financial statements
 
included in
 
the “Consolidated financial
 
statements”
 
section of this
 
report and are
audited
 
by the
 
independent
 
registered
 
public accounting
 
firm Ernst
 
& Young
 
Ltd, Basel.
 
This information
 
is marked
 
as
“Audited” within this
 
section of the report. The
 
risk profile of UBS
 
AG consolidated does
 
not differ materially from
 
that
of
 
UBS
 
Group
 
AG
 
consolidated.
 
Audited
 
information
 
provided
 
in
 
the
 
“Risk
 
management
 
and
 
control”
 
and
 
“Capital,
liquidity and funding, and
 
balance sheet” sections applies to
 
both UBS Group AG
 
consolidated and UBS AG
 
consolidated.
 
 
Signposts
The
Audited |
signpost that is displayed at the beginning
 
of a section, table or chart indicates that those items
 
have been audited. A triangle
 
symbol –
p
 
–
indicates the end of the audited
 
section, table or chart.
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
83
 
Risk management and control
 
 
 
Table of contents
84
85
86
87
89
92
92
93
96
111
119
122
130
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
84
 
Risk management and control
 
Overview of risks arising from our business activities
Key risks by business division and Group Functions
Business divisions and Group Functions
Key financial risks arising from
 
business activities
Global Wealth Management
Credit risk
 
from lending against
 
securities collateral, including derivative
 
trading activity, and lending
against residential and commercial
 
real estate collateral, as well as corporate
 
and other lending.
 
Market risk
 
from municipal securities and
 
taxable fixed-income securities.
 
Interest rate risk in
 
the
banking book related
 
to Global Wealth Management is transferred
 
to and managed by Group Treasury.
Personal & Corporate Banking
Credit risk
 
from retail business, mortgages,
 
secured and unsecured corporate lending,
 
commodity trade
finance, lending to banks and
 
other regulated clients, as well as a small amount
 
of derivatives trading
activity.
 
Minimal contribution to
market risk
. Interest rate risk in the banking
 
book related to Personal
 
&
Corporate Banking is transferred
 
to and managed by Group Treasury.
Asset Management
Credit risk
 
and
market risk
 
on client assets invested in Asset Management
 
funds can impact
management and performance
 
fees and cause heightened fund outflows, liquidity risk
 
and losses on our
seed capital and co-investments.
Small amounts of credit and market
 
risk for on-balance sheet items.
 
Investment Bank
Credit risk
 
from lending (take
 
-and-hold, as well as temporary loan underwriting
 
activities), derivatives
trading and securities financing
 
.
 
Market risk
 
from primary underwriting activities
 
and secondary trading.
Group Functions
Credit
 
and
market risk
arising from management of
 
the Group’s balance sheet, capital, profit
 
or loss
and liquidity portfolios.
Structural risk arising from
 
asset and liability management and liquidity
 
and funding risk (managed by
Group Treasury)
 
.
Non-financial risks
, which include operational,
 
financial crime, compliance, conduct, model and
 
reputational risks, are an inevitable
 
consequence of being
in business and can arise as a result
 
of our past and current business activities across
 
all business divisions and Group
 
Functions.
›
 
Refer to “Risk categories”
 
in this section
 
for more information
 
about other financial
 
and non-financial
 
risks relevant to UBS
Key risk developments
Although 2022 was a
 
challenging year for the global economy and most markets,
 
our lending portfolio performed
 
well,
with low
 
credit loss
 
expenses
 
and a
 
USD 0.2bn
 
reduction in
 
credit-impaired
 
exposure
 
to USD 2.5bn.
 
Overall,
 
we saw
 
a
USD 6bn decrease in banking product
 
exposure driven by lower balances at central banks and lower loans and
 
advances
to Global
 
Wealth
 
Management
 
customers.
 
Traded
 
product
 
exposures
 
saw a
 
decrease
 
of USD
 
3bn
 
across our
 
business
divisions.
Market risk remained stable and at low
 
levels,
 
as a result of our continued
 
focus on managing tail risks.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
85
 
Risk categories
We categorize the
 
risk exposures
 
of our business
 
divisions and Group
 
Functions as outlined
 
in the table
 
below.
 
Our risk
appetite framework is designed to
 
capture all risk categories.
›
 
Refer to “Risk appetite
 
framework” in
 
this section for more
 
information
 
Risk managed by
Independent
oversight by
Financial risks
Audited |
Credit risk:
 
the risk of loss resulting
 
from the failure of a client or
 
counterparty to meet its
contractual obligations toward
 
UBS. This includes settlement risk, loan underwriting
 
risk and step-in risk.
Settlement risk:
 
the risk of loss resulting from transactions
 
that involve exchange of value (e.g.,
security versus cash) where
 
we must deliver without first being able to determine
 
with certainty that
we will receive the
 
consideration.
Loan underwriting
 
risk:
 
the risk of loss arising during the holding period of
 
financing transactions
that are intended for
 
further distribution.
Step-in risk:
 
the risk that UBS may decide to provide
 
financial support to an unconsolidated
 
entity
that is facing stress in
 
the absence of, or in excess of, any contractual
 
obligations to provide such
support.
p
Business divisions
Risk Control
Audited |
Market risk
 
(traded and non-traded): the risk
 
of loss resulting from adverse movements in
market variables. Market variables include
 
observable variables, such as interest rates,
 
foreign exchange
rates, equity prices, credit
 
spreads and commodity (including precious
 
metal) prices, as well as variables
that may be unobservable
 
or only indirectly observable, such as
 
volatilities and correlations. Market
 
risk
includes issuer risk and investment
 
risk.
Issuer risk:
 
the risk of loss from
 
changes in fair value resulting from
 
credit-related events affecting
an issuer to which we are
 
exposed through tradable securities
 
or derivatives referencing the issuer.
Investment risk:
 
issuer risk associated with positions
 
held as financial investments.
p
Business divisions and
Group Treas
 
ury
Risk Control
Country risk:
 
the risk of loss resulting from
 
country-specific events. Includes transfer risk, which
involves a country’s authorities
 
preventing or restricting the payment
 
of an obligation, as well as
systemic risk events arising
 
from country-specific political or macroeconomic
 
developments.
Business divisions
Risk Control
Sustainability and climate risk:
 
the risk that UBS negatively impacts, or is impacted by,
 
climate
change, natural capital, human
 
rights, and other environmental, social, governance
 
(ESG) matters.
Climate risks can arise from either
 
changing climate conditions (physical risks)
 
or from efforts to mitigate
climate change (transition
 
risks). Sustainability and climate risk may manifest as
 
credit, market, liquidity,
and / or non-financial risks for
 
UBS, resulting in potential adverse financial,
 
liability and / or reputation
impacts. These risks extend to
 
the value of investments and may also affect the
 
value of collateral (e.g.,
real estate).
Business divisions
Risk Control
Treasury
 
risk:
 
the risks associated with asset and liability management
 
and our liquidity and funding
positions,
 
as well as structural exposures
 
including pension risks.
 
Group Treasury
Risk Control
Audited |
Liquidity risk:
 
the risk that the firm will not be able to efficiently
 
meet both expected and
unexpected current and
 
forecast cash flows and collateral needs
 
without affecting either daily
operations or the financial condition of
 
the firm.
p
Audited |
Funding risk:
 
the risk that the firm will be unable, on an
 
ongoing basis, to borrow funds in
the market on an unsecured
 
(or even secured) basis at an acceptable
 
price to fund actual or
proposed commitments
 
,
 
i.e., the risk that UBS’s funding capacity
 
is not sufficient to support the
firm’s current business
 
and desired strategy.
p
Interest rate risk in the banking
 
book:
the risk to the bank’s capital and earnings arising
 
from the
adverse effects of interest
 
rate movements on the bank’s banking
 
book positions. The risk is
transferred from
 
the originating business units GWM and P&C
 
to Group Treasury
 
to risk manage this
centrally and benefit from
 
Group-wide netting while leaving
 
the business units with margin
management.
Structural foreign exchange
 
risk:
 
the risk of decreases in our capital
 
due to changes in foreign
exchange rates with an adverse
 
translation effect on capital held in
 
currencies other than the
US dollar.
Pension risk:
 
the risk of a negative impact on our capital
 
as a result of deteriorating funded status
from decreases in
 
the fair value of assets held in defined benefit pension
 
funds and / or changes in
the value of defined benefit pension obligations
 
due to changes in actuarial assumptions
 
(e.g.,
discount rate, life expectancy,
 
rate of pension increase) and
 
/ or changes to plan designs.
Group Treasury
 
and
Human Resources
Risk Control
and Finance
Business risk:
 
the potential negative impact on
 
earnings from lower-than-expected business volumes
and / or margins, to the extent
 
they are not offset by a decrease
 
in expenses. For example, changes in
the competitive landscape,
 
client behavior or market conditions can potentially
 
have a negative impact.
Business divisions
Risk Control
and Finance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
86
 
Risk managed by
Independent
oversight by
Non-financial risks
Compliance risk:
 
the risk of failure to comply with laws, rules and
 
regulations, and internal policies and
procedures.
 
Business divisions
Group Compliance,
Regulatory &
Governance (GCRG)
Employment risk:
 
the risk of not adhering to the applicable employment
 
law, regulatory
requirements and human
 
resources practices, as well as our
 
own internal standards.
 
Human Resources
Conduct risk:
 
the risk that the conduct of
 
the firm or its individuals unfairly impacts clients or
counterparties, undermines
 
the integrity of the financial system or impairs effective
 
competition to
the detriment of consumers.
GCRG
Financial crime risk:
 
the risk of failure to prevent financial crime
 
(including money laundering, terrorist
financing, sanctions violations,
 
fraud, bribery and corruption).
Business divisions and
Financial Crime
Prevention (FCP)
GCRG
Operational risk:
 
the risk resulting from inadequate
 
or failed internal processes, people or systems, or
from external causes (deliberate, accidental
 
or natural).
Business divisions
GCRG
Cybersecurity and information
 
security risk:
 
the risk of a malicious internal or external act,
 
or a
failure of IT hardware
 
or software, or human error,
 
leading to a material impact on confidentiality,
integrity or availability of UBS’s data
 
or information systems.
 
Business divisions and
the Chief Digital and
Information Office (the
CDIO)
GCRG
Model risk:
 
the risk of adverse consequences (e.g., financial
 
loss, due to legal matters, operational
loss, biased business decisions,
 
or reputational damage) resulting
 
from decisions based on incorrect
 
/
inadequate or misused model outputs
 
and reports.
Model owner
Risk Control
Legal risk:
 
the financial or reputational implications
 
resulting from the risk of: (i) being held
 
liable for a
breach of applicable laws, rules
 
or regulations; (ii) being held liable for
 
a breach of contractual or other
legal obligations; (iii) an inability
 
or failure
 
to enforce or protect contractual
 
rights or non-contractual
rights sufficiently to protect
 
UBS’s interests, including the risk of being party
 
to a claim in respect of any
of the above (and the risk of loss
 
of attorney–client privilege in the context of any such
 
claim); (iv) a
failure to adequately develop,
 
supervise and resource legal teams or
 
adequately supervise external legal
counsel advising on business legal
 
risk and other matters; and (v) a failure
 
to adequately manage any
potential, threatened and
 
commenced litigation and legal proceedings,
 
including civil, criminal,
arbitration and regulatory proceedings,
 
and / or litigation risk or any dispute
 
or investigation that may
lead to litigation or threat of
 
any litigation.
Business divisions
Legal
Reputational risk:
 
the risk of loss of and damage to reputation,
 
loss of clients and investor confidence
within the financial system.
All businesses and
functions
All control functions
 
 
Top and emerging risks
The top and emerging risks disclosed
 
below reflect those that we currently think have
 
the potential to materialize within
one year and
 
which could significantly affect
 
the Group.
 
Investors should also
 
carefully review all
 
information set
 
out in
the “Risk factors” section of this report, where
 
we discuss these and other material risks that we consider
 
could have an
effect on our
 
ability to
 
execute our strategy
 
and may
 
affect our business activities,
 
financial condition, results
 
of operations
and business prospects.
–
 
We remain watchful of a range of geop
 
olitical developments across the world,
 
including the Russia–Ukraine
 
war,
 
US–
China
 
and
 
US–Iran
 
tensions,
 
and political
 
changes
 
in
 
a
 
number
 
of
 
countries.
 
Geopolitical tensions
 
will continue
 
to
create uncertainty, while the Russia–Ukraine
 
war complicates the energy
 
price outlook.
–
 
Inflation appears
 
to be
 
moderating in
 
the US
 
and
 
Europe,
 
but there
 
continue
 
to be
 
concerns
 
regarding
 
a potential
resurgence
 
and
 
regarding
 
the
 
timing
 
and
 
extent
 
of
 
central
 
bank
 
policy responses
 
(i.e.,
 
interest
 
rate
 
hikes
 
and
 
the
tapering of quantitative easing).
 
–
 
We are
 
exposed to
 
a number
 
of macroeconomic
 
issues,
 
as well
 
as general
 
market conditions.
 
As noted
 
in “Market,
credit
 
and
 
macroeconomic
 
risks”
 
in
 
the
 
“Risk
 
factors”
 
section
 
of
 
this
 
report,
 
these
 
external
 
pressures
 
may
 
have
 
a
significant adverse effect on our business activities
 
and related financial results, primarily through reduced margins and
revenues,
 
asset
 
impairments
 
and
 
other
 
valuation
 
adjustments.
 
Accordingly,
 
these
 
macroeconomic
 
factors
 
are
considered in the development
 
of stress-testing scenarios for our
 
ongoing risk management activities.
–
 
We are exposed
 
to substantial
 
changes in
 
the regulation
 
of our
 
businesses that
 
could
 
have a material
 
adverse effect
on
 
our business,
 
as discussed
 
in the “Regulatory
 
and legal
 
developments”
 
section of
 
this report
 
and in
 
“Regulatory
and legal risks” in the “Risk
 
factors” section of this report.
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
87
 
–
 
As a
 
global
 
financial services
 
firm, we
 
are subject
 
to many
 
different legal,
 
tax and
 
regulatory regimes
 
and
 
extensive
regulatory oversight.
 
We are exposed
 
to significant
 
liability risk,
 
and we
 
are subject
 
to various claims,
 
disputes, legal
proceedings
 
and government investigations,
 
as noted
 
in “Regulatory and
 
legal risks” in
 
the “Risk factors”
 
section of
this report. Information about litigation, regulatory and similar matters we consider significant is disclosed in “Note 17
Provisions and contingent
 
liabilities” in the “Consolidated financial statements”
 
section of this report.
–
 
The
 
geopolitical
 
situation
 
increases
 
the
 
likelihood
 
of
 
external
 
state-driven
 
cyber
 
activity,
 
and
 
attacks
 
are
 
becoming
increasingly sophisticated, which
 
may result in business
 
disruption or the
 
corruption or loss of
 
data. Additionally,
 
as a
result of the dynamic and material nature of recent geopolitical, environmental and health threats and the operational
complexity of all
 
our businesses,
 
we are continually
 
exposed to
 
operational resilience scenarios
 
such as
 
process error,
failed execution, system failures and
 
fraud.
–
 
Conduct risks
 
are inherent in
 
our businesses. Achieving
 
fair outcomes for
 
our clients, upholding
 
market integrity and
cultivating the highest standards
 
of employee conduct are
 
of critical importance
 
to us.
 
Management of conduct
 
risks
is an integral part of our risk management
 
framework.
–
 
Financial crime
 
(including
 
money
 
laundering,
 
terrorist financing,
 
sanctions
 
violations,
 
fraud, bribery
 
and
 
corruption)
presents significant risk. Heightened
 
regulatory expectations and
 
attention require investment
 
in people and systems,
while
 
emerging
 
technologies
 
and
 
changing
 
geopolitical
 
risks
 
further
 
increase
 
the
 
complexity
 
of
 
identifying
 
and
preventing financial
 
crime. Refer
 
to “Non
 
-financial risk”
 
in this section
 
and “Strategy,
 
management and
 
operational
risks” in the “Risk factors” section
 
of this report for more information.
–
 
ESG / sustainability
 
and climate
 
risks are in
 
the focus
 
of regulators
 
and other
 
stakeholders, in
 
particular climate risks,
nature-related risk and
 
concerns about greenwashing, where
 
UBS may
 
be subject
 
to reputational risk
 
if not fully
 
aligned
with
 
sustainability-related
 
criteria.
 
New
 
standards
 
and
 
rules
 
are
 
developing
 
in
 
several
 
jurisdictions,
 
with
 
the
 
risk
 
of
divergent rules increasing and leading to an increased risk
 
that UBS may not comply
 
with all relevant regulations. Refer
to “Sustainability and climate risk” and
 
“Non-financial risk” in this section.
–
 
New risks continue to emerge. For example, client demand
 
for distributed ledger technology,
 
blockchain-based assets
and virtual
 
currencies
 
creates new
 
risks, to
 
which we
 
currently have
 
limited exposure
 
and for
 
which relevant
 
control
frameworks are being implemented.
 
 
 
Risk governance
Our risk governance framework operates along
 
three lines of defense.
 
Our first line of defense, business management, owns its risks and is accountable for maintaining effective processes and
systems to
 
manage them in
 
compliance with applicable
 
laws, rules and
 
regulations, as well
 
as internal
 
standards, including
identifying control weaknesses
 
and inadequate processes.
Our
 
second
 
line
 
of
 
defense,
 
control
 
functions,
 
is
 
separate
 
from
 
the
 
business
 
and
 
reports
 
directly
 
to
 
the
 
Group
 
CEO.
Control
 
functions
 
provide
 
independent
 
oversight,
 
challenge
 
financial
 
and
 
non-financial
 
risks
 
arising
 
from
 
the
 
firm’s
business
 
activities, and
 
establish independent
 
frameworks for
 
risk assessment,
 
measurement,
 
aggregation,
 
control and
reporting, protecting against
 
non-compliance with applicable laws, rules and
 
regulations.
Our third line of defense, Group Internal Audit (GIA),
 
reports to the Chairman and to the Audit Committee. This function
assesses the
 
design and
 
operating effectiveness
 
and sustainability
 
of processes
 
to define
 
risk appetite,
 
governance, risk
management, internal
 
controls,
 
remediation
 
activities and
 
processes
 
to comply
 
with
 
legal and
 
regulatory requirements
and internal governance standards.
The key roles
 
and responsibilities
 
for risk management
 
and control
 
are shown
 
in the chart below
 
and described
 
further
below.
 
 
dev_UBS_AR_2022p116i0.gif
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
88
 
 
Audited |
The
 
Board of Directors
 
(the BoD)
 
approves the
 
risk management
 
and control
 
framework of
 
the Group,
 
including
the Group
 
and business
 
division overall risk appetite.
 
The BoD
 
is supported
 
by its Risk
 
Committee, which
 
monitors and
oversees the Group’s risk profile
 
and the implementation of
 
the risk framework approved
 
by the BoD, and
 
approves the
Group’s risk appetite methodology. The Corporate Culture and Responsibility Committee
 
(the CCRC) helps the BoD meet
its
 
duty
 
to
 
safeguard
 
and
 
advance
 
UBS’s
 
reputation
 
for
 
responsible
 
and
 
sustainable
 
conduct,
 
reviewing
 
stakeholder
concerns and expectations
 
pertaining to UBS’s societal
 
contribution and corporate
 
culture. The Audit
 
Committee assists
the
 
BoD
 
with
 
its oversight
 
duty
 
relating
 
to
 
financial
 
reporting
 
and
 
internal
 
controls
 
over
 
financial
 
reporting,
 
and
 
the
effectiveness of whistleblowing procedures
 
and the external and internal audit
 
functions.
The
Group
 
Executive Board
 
(the GEB) has overall responsibility for
 
establishing and implementing a risk management and
control framework in the Group,
 
managing the risk profile of the Group
 
as a whole.
The
Group
 
Chief Executive
 
Officer
 
has responsibility
 
and accountability
 
for the
 
management
 
and performance
 
of the
 
Group,
has risk authority
 
over transactions,
 
positions and
 
exposures, and
 
allocates business
 
divisions and
 
Group Functions
 
risk limits
approved by the BoD.
The
business division Presidents and
 
Group functional heads
are responsible for the operation and management
 
of their
business
 
divisions
 
/
 
Group
 
Functions,
 
including
 
controlling
 
the
 
dedicated
 
financial
 
resources
 
and
 
risk
 
appetite
 
of
 
the
business divisions.
The
regional Presidents
 
ensure cross-divisional collaboration
 
in their regions and
 
are mandated to inform the
 
GEB about
any regional activities and issues that may
 
give rise to actual or potentially
 
material regulatory or reputational
 
concerns.
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
89
 
The
Group Chief
 
Risk Officer
 
(the Group
 
CRO)
 
is responsible
 
for developing
 
the Group’s
 
risk management
 
and control
framework (including
 
risk principles and
 
risk appetite) for
 
credit, market, country,
 
treasury, model
 
and sustainability and
climate risks. This includes risk measurement and
 
aggregation, portfolio controls and risk reporting.
 
The Group CRO sets
risk limits
 
and
 
approves
 
credit and
 
market risk
 
transactions
 
and
 
exposures.
 
Risk Control
 
is also
 
the central
 
function for
model risk management and control for all models
 
used in UBS. A framework of policies and authorities support
 
the risk
control process.
The
Group
 
Chief
 
Compliance
 
and
 
Governance
 
Officer
 
is
 
responsible
 
for
 
developing
 
the
 
Group’s
 
non-financial
 
risk
framework,
 
which
 
sets
 
the
 
general
 
requirements
 
for
 
identification,
 
management,
 
assessment
 
and
 
mitigation
 
of
 
non-
financial
 
risk,
 
and
 
for
 
ensuring
 
that
 
all non
 
-financial
 
risks
 
are
 
identified,
 
owned
 
and
 
managed
 
according
 
to
 
the
 
non-
financial risk appetite objectives, supported
 
by an effective control framework.
The
Group Chief Financial Officer
 
is responsible for transparency in assessing the financial performance of the Group and
the
 
business
 
divisions,
 
and
 
for
 
managing
 
the
 
Group’s
 
financial
 
accounting,
 
controlling,
 
forecasting,
 
planning
 
and
reporting.
 
Additional
 
responsibilities
 
include
 
managing
 
UBS’s
 
tax affairs,
 
as
 
well
 
as treasury
 
and
 
capital management,
including
 
liquidity and
 
funding risk
 
and UBS’s
 
regulatory ratios,
 
Finance Artificial
 
Intelligence
 
& Data
 
Analytics strategy
and Group M&A.
 
The
Group
 
General
 
Counsel
 
manages
 
the Group’s
 
legal
 
affairs
 
(including
 
litigation
 
involving
 
UBS),
 
ensuring
 
effective
 
and timely
assessment
 
of legal
 
matters
 
impacting
 
the Group
 
or its
 
businesses,
 
and managing
 
and reporting
 
all litigation
 
matters.
The
Head
 
Human Resources
 
is responsible
 
for independent
 
oversight
 
and challenge
 
of employment-related
 
risks.
Group Internal Audit
 
(GIA) independently assesses the effectiveness of processes to define strategy and risk appetite and
overall
 
adherence
 
to
 
the
 
approved
 
strategy.
 
It
 
also
 
assesses
 
the
 
effectiveness
 
of
 
governance
 
processes
 
and
 
risk
management,
 
including
 
compliance
 
with
 
legal
 
and
 
regulatory
 
requirements
 
and
 
internal
 
governance
 
documents.
 
The
Head GIA reports to the Chairman
 
of the BoD. GIA also
 
has a functional reporting line to the
 
BoD Audit Committee.
Some of these
 
roles and responsibilities
 
are replicated for
 
significant legal
 
entities of
 
the Group.
 
Designated
legal entity
risk officers
 
oversee and
 
control financial
 
and non
 
-financial risks for significant
 
legal entities
 
of UBS
 
as part of
 
the legal
entity control framework, which complements
 
the Group’s risk management and
 
control framework.
p
 
 
 
Risk appetite framework
We have a defined Group-level risk appetite,
 
covering all financial and
 
non-financial risk
 
types, via a complementary set of
qualitative and quantitative risk appetite statements.
 
This is reviewed and recalibrated annually and presented to the BoD
for approval.
 
Our risk
 
appetite is
 
defined at
 
the aggregate
 
Group level
 
and reflects
 
the types of
 
risk that we
 
are willing
 
to accept or
wish to
 
avoid. It
 
is set
 
via complementary
 
qualitative
 
and
 
quantitative
 
risk appetite
 
statements defined
 
at
 
a firm
 
-wide
level and is
 
embedded
 
throughout
 
our business
 
divisions and
 
legal entities by
 
Group,
 
business division
 
and legal
 
entity
policies, limits and authorities. Our risk appetite is reviewed and recalibrated annually,
 
with the aim of ensuring that risk-
taking at every
 
level of the
 
organization
 
is in line
 
with our
 
strategic priorities, our
 
capital and
 
liquidity plans,
 
our
Pillars,
Principles and Behaviors
, and minimum regulatory
 
requirements. The
 
“Risk appetite framework” chart below shows
 
the
key elements of the framework, which is
 
described in detail in this section.
Qualitative
 
risk
 
appetite
 
statements
 
aim
 
to
 
ensure
 
we
 
maintain
 
the
 
desired
 
risk
 
culture.
 
Quantitative
 
risk
 
appetite
objectives
 
are
 
designed
 
to
 
enhance
 
UBS’s
 
resilience
 
against
 
the
 
effects
 
of
 
potential
 
severe
 
adverse
 
economic
 
or
geopolitical events.
 
These risk
 
appetite objectives
 
cover UBS’s
 
minimum capital
 
and leverage
 
ratios,
 
solvency, earnings,
liquidity and funding, and are subject to periodic review, including
 
the yearly business planning process. These objectives
are complemented by non-financial risk appetite objectives, which are set for each of our non-financial risk categories.
 
A
standardized quantitative
 
firm-wide non-financial
 
risk appetite
 
has been
 
established at
 
the Group
 
and business
 
division
levels. Non-financial risk
 
events exceeding predetermined risk
 
tolerances, expressed as
 
percentages of UBS’s
 
total revenue,
must be escalated
 
as per
 
the firm-wide
 
escalation framework
 
to the respective
 
business
 
division President
 
or higher,
 
as
appropriate.
The quantitative
 
risk appetite
 
objectives are
 
supported by
 
a comprehensive
 
suite of
 
risk limits set
 
at a
 
portfolio level
 
to
monitor specific portfolios and
 
to control potential risk concentrations.
 
The status of risk appetite objectives is evaluated each month and reported to the BoD
 
and the GEB. As our risk
 
appetite
may change
 
over
 
time, portfolio limits
 
and associated approval
 
authorities are subject to
 
periodic reviews
 
and changes,
particularly in the context
 
of our annual business
 
planning process.
 
Our
 
risk appetite
 
framework is
 
governed by
 
a single
 
overarching policy
 
and
 
conforms to
 
the Financial
 
Stability Board’s
Principles for an Effective
 
Risk Appetite
 
Framework.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
dev_UBS_AR_2022p118i0.gif
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
90
 
 
Risk principles and risk culture
Maintaining
 
a
 
strong
 
risk culture
 
is
 
a
 
prerequisite
 
for
 
success
 
in
 
today’s
 
highly complex
 
operating
 
environment
 
and
 
a
source of sustainable competitive
 
advantage.
 
Our risk appetite
 
framework combines
 
all the
 
important elements
 
of our
 
risk culture,
 
expressed in
 
our
Pillars, Principles
and
 
Behaviors
,
 
our
 
risk
 
management
 
and
 
control
 
principles,
 
our
 
Code
 
of
 
Conduct
 
and
 
Ethics,
 
and
 
our
 
Total
 
Reward
Principles. Together
 
these aim
 
to align
 
our decisions
 
with the
 
Group’s
 
strategy, principles
 
and
 
risk appetite.
 
They
 
help
create a solid foundation for promoting
 
risk awareness, leading to appropriate risk
 
-taking and the establishing of
 
robust
risk management
 
and control
 
processes. These
 
principles are
 
supported by
 
a range
 
of initiatives
 
covering employees
 
at
all levels, for
 
example the
UBS House View
 
on Leadership
, which is a
 
set of explicit
 
expectations that establishes consistent
leadership standards across UBS
 
,
 
and our Principles of Good Supervision, which establish clear expectations of
 
managers
and
 
employees
 
regarding
 
supervisory
 
responsibilities,
 
specifically:
 
to
 
take
 
responsibility;
 
to
 
know
 
and
 
organize
 
their
business; to know their employees and what they do; to create a good risk culture; and to respond to and resolve issues.
 
›
 
Refer to “Employees”
 
in the “How we
 
create value for
 
our stakeholders”
 
section of this
 
report for more information
 
about our
Pillars, Principles
 
and Behaviors
›
 
Refer to the Code
 
of Conduct
 
and Ethics of UBS
 
at
ubs.com/code
 
for more information
Risk management and control principles
Protection of financial strength
Protecting UBS’s financial
 
strength by controlling our risk exposure
 
and avoiding potential risk
concentrations at individual exposure
 
levels, at specific portfolio levels and at an aggregate
 
firm-wide
level across all risk types
 
.
Protection of reputation
Protecting our reputation
 
through a sound risk culture characterized
 
by a holistic and integrated view of
risk, performance and reward,
 
and through full compliance with our
 
standards and principles, particularly
our Code of Conduct and Ethics.
Business management accountability
Maintaining management accountability,
 
whereby business management owns all risks
 
assumed
throughout the Group
 
and is responsible for the continuous and active
 
management of all risk exposures
to provide for balanced risk and
 
return.
Independent controls
Independent control functions
 
that monitor the effectiveness of the businesses’
 
risk management and
oversee risk-taking activities.
Risk disclosure
Disclosure of risks
 
to senior management, the BoD, investors, regulators,
 
credit rating agencies and other
stakeholders with an appropriate
 
level of comprehensiveness and
 
transparency.
 
Whistleblowing policies and procedures exist to encourage an environment where staff are
 
comfortable raising concerns.
There
 
are
 
multiple channels
 
via which
 
individuals
 
may,
 
either openly
 
or
 
anonymously,
 
escalate
 
suspected
 
breaches
 
of
laws, regulations,
 
rules and
 
other legal requirements,
 
our Code
 
of Conduct
 
and Ethics, policies
 
or relevant
 
professional
standards.
 
We
 
are
 
committed
 
to
 
ensuring
 
there
 
is
 
appropriate
 
training
 
and
 
communication
 
to
 
staff
 
and
 
legal
 
entity
representatives, including
 
information about new regulatory
 
requirements.
Mandatory training programs
 
cover various compliance-related and
 
risk-related topics, including operational risk
 
and anti-
money laundering. Additional specialized training is provided depending on employees’ specific
 
roles and responsibilities;
e.g.,
 
credit risk
 
and
 
market risk
 
training
 
for those
 
working
 
in trading
 
areas.
 
Our non
 
-financial risk
 
framework aims
 
to
identify and manage financial, regulatory and
 
reputational risks, as well as risks to
 
clients and markets.
 
 
 
dev_UBS_AR_2022p119i0.gif
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
91
 
Quantitative risk appetite
 
objectives
Our
 
quantitative
 
risk
 
appetite
 
objectives
 
aim
 
to
 
ensure
 
that
 
our
 
aggregate
 
risk
 
exposure
 
remains
 
within
 
desired
 
risk
capacity, based on capital
 
and business plans. The
 
specific
 
definition of risk
 
capacity for each
 
objective is aimed
 
at ensuring
we
 
have
 
sufficient
 
capital, earnings,
 
funding
 
and
 
liquidity
 
to
 
protect
 
our
 
businesses
 
and
 
exceed minimum
 
regulatory
requirements under a severe stress
 
event. The risk appetite objectives are evaluated during
 
the annual business planning
process and approved
 
by the BoD. The comparison
 
of risk exposure with risk
 
capacity is a key consideration
 
in decisions
on potential adjustments to the business
 
strategy,
 
risk profile,
 
and the level of capital returns
 
to shareholders.
In
 
the
 
annual
 
business
 
planning
 
process,
 
UBS’s
 
business
 
strategy is
 
reviewed,
 
the
 
risk
 
profile
 
that
 
our
 
operations
 
and
activities result
 
in is
 
assessed,
 
and
 
that risk
 
profile stressed
 
.
 
We use
 
both
 
scenario-based
 
stress tests
 
and
 
statistical risk
measurement
 
techniques
 
to
 
assess
 
the
 
effects
 
of
 
severe
 
stress
 
events
 
at
 
a
 
firm-wide
 
level.
 
These
 
complementary
frameworks capture exposures to
 
material risks across our business
 
divisions and Group Functions.
 
›
 
Refer to “Risk measurement”
 
in this section
 
for more information
 
about our stress
 
testing and statistical
 
stress frameworks
 
 
Our risk
 
capacity is
 
underpinned by performance targets
 
and capital guidance
 
as per
 
our business plan. When
 
determining
our risk capacity in case
 
of a severe stress event, we estimate
 
projected earnings under stress, factoring in lower expected
income and
 
expenses.
 
We also
 
consider capital
 
impacts under
 
stress from
 
deferred
 
tax assets,
 
pension plan
 
assets and
liabilities, and accruals for capital returns
 
to shareholders.
Risk appetite objectives define the aggregate
 
risk exposure acceptable at the firm-wide
 
level, given our risk capacity. The
maximum acceptable risk
 
exposure is supported by
 
a full
 
set of risk
 
limits, which are
 
cascaded to businesses and
 
portfolios.
These limits aim to ensure that our
 
risks remain in line with risk appetite.
Risk appetite statements at the business division level are derived from the firm-wide risk appetite. They may also include
division-specific strategic goals related
 
to that
 
division’s activities and risks.
 
Risk appetite statements are
 
also set for
 
certain
legal entities,
 
which must
 
be consistent
 
with the
 
firm-wide
 
risk appetite
 
framework
 
and
 
approved in
 
accordance with
Group and legal entity regulations. Differences
 
may exist that reflect the specific nature, size, complexity and regulations
applicable to the relevant legal
 
entity.
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
92
 
Internal risk reporting
Comprehensive
 
and
 
transparent reporting
 
of risks
 
is central
 
to our
 
risk governance
 
framework’s
 
control and
 
oversight
responsibilities and required by
 
our risk management
 
and control principles. Accordingly, risks are reported at a
 
frequency
and
 
level of
 
detail
 
commensurate
 
with
 
the extent
 
and
 
variability of
 
the
 
risk and
 
the needs
 
of the
 
various governance
bodies, regulators and
 
risk authority holders.
The Group
 
Risk Report
 
provides
 
a detailed
 
qualitative
 
and
 
quantitative
 
monthly overview
 
of developments
 
in financial
and non-financial risks
 
at the firm-wide
 
level, including
 
the status of
 
our risk appetite objectives
 
and the
 
results of firm-
wide stress testing. The
 
Group Risk Report
 
is distributed internally
 
to the BoD and
 
the GEB, and senior
 
members of Risk
Control, GIA, Finance and Legal. Risk
 
reports are also produced for
 
significant Group entities
 
(entities subject to enhanced
standards of corporate governance)
 
and significant branches.
Granular divisional risk reports are provided to the
 
respective business division CROs and business division Presidents. This
monthly
 
reporting
 
is
 
supplemented
 
with
 
daily or
 
weekly reports,
 
at
 
various
 
levels of
 
granularity,
 
covering
 
market and
credit risks for the
 
business divisions
 
to enable risk
 
officers and senior
 
management to
 
monitor and control
 
the Group’s
risk profile.
Our internal risk reporting covers financial
 
and non-financial risks and is
 
supported by risk data and measurement systems
that are also
 
used for external
 
disclosure
 
and regulatory
 
reporting.
 
Dedicated units
 
within Risk
 
Control assume
 
responsibility
for measurement, analysis and reporting
 
of risk
 
and for overseeing the
 
quality and integrity of
 
risk-related data. Our
 
risk
data and measurement
 
systems are subject
 
to periodic review
 
by GIA, following a
 
risk-based audit approach.
 
 
Model risk management
 
Introduction
We rely
 
on models
 
to inform
 
risk management
 
and control
 
decisions,
 
to measure
 
risks or
 
exposures, value
 
instruments
or positions,
 
conduct stress testing,
 
assess adequacy
 
of capital, and
 
manage clients’ assets
 
and our
 
own assets.
 
Models
may also be
 
used to
 
measure and
 
monitor compliance
 
with rules and
 
regulations,
 
for surveillance activities,
 
or to meet
financial or regulatory reporting
 
requirements.
 
Model risk is
 
defined as
 
the risk
 
of adverse
 
consequences (e.g.,
 
financial losses
 
or reputational
 
damage) resulting
 
from
incorrect or misused models.
Model governance framework
Our model
 
governance framework establishes requirements for identifying, measuring, monitoring, reporting, controlling
and mitigating model risk. All the
 
models that we use are subject to governance
 
and controls throughout their life cycles,
with rigor,
 
depth and
 
frequency determined
 
by the
 
model’s materiality
 
and complexity
 
.
 
This is designed
 
to ensure
 
that
risks arising from model use are identified, understood,
 
managed, monitored, controlled and
 
reported on both a model-
specific and
 
an aggregated
 
level. Before
 
they can
 
be granted
 
approval
 
for use from
 
the model
 
sponsor,
 
all our models
are independently validated.
 
Once validated and approved
 
for use, a model is
 
subject to ongoing
 
model monitoring and annual
 
model confirmation,
ensuring that the model is only
 
used if it continues to
 
be found fit for purpose.
 
All models are subject to periodic model
re-validation.
Our
 
model
 
risk
 
governance
 
framework
 
follows
 
our
 
overarching
 
risk
 
governance
 
framework,
 
with
 
the
 
three
 
lines
 
of
defense (LoD) assigned
 
as follows.
–
 
First LoD: model sponsors,
 
model owners, model developers, and
 
model users
–
 
Second
 
LoD: Chief Model Risk Officer, Model
 
Risk Management & Control
–
 
Third LoD: Group Internal Audit
An important
 
difference as
 
compared with
 
how LoD
 
are usually defined
 
in financial
 
and non
 
-financial risk is
 
that some
models are owned by
 
traditionally second LoD functions, such
 
as Risk Control, Finance or Compliance.
Model risk appetite framework
 
and statement
The model risk appetite framework sets
 
out the model risk appetite
 
statement, defines the relevant
 
metrics and lays out
how appropriate adherence
 
is assessed.
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
93
 
Model oversight
Model
 
oversight
 
committees
 
and
 
forums
 
ensure
 
that
 
model
 
risk
 
is
 
overseen
 
at
 
different
 
levels
 
of
 
the
 
organization,
appropriate model risk management
 
and control actions
 
are taken and, where
 
necessary, escalated
 
to the
 
next level.
 
The Group Model Governance Committee is our most senior oversight and escalation body for
 
all models in scope of our
model governance framework. It is co-chaired by the Group CRO and the Group CFO and is responsible for: (i) reviewing
and approving changes
 
to the framework; (ii) approving the
 
model risk appetite statement;
 
(iii) overseeing adherence
 
to
the UBS model risk governance
 
framework; and (iv) monitoring
 
model risk at a firm-wide level.
 
 
Risk measurement
 
Audited |
We apply a
 
variety of methodologies
 
and measurements
 
to quantify the
 
risks of our
 
portfolios and potential
 
risk
concentrations. Risks that are not
 
fully reflected within standard
 
measures are subject
 
to additional controls, which
 
may
include
 
preapproval
 
of
 
specific
 
transactions
 
and
 
the
 
application
 
of
 
specific
 
restrictions.
 
Models
 
to
 
quantify
 
risk
 
are
generally developed by dedicated
 
units within control functions and
 
are subject to independent
 
validation.
p
 
›
 
Refer to “Credit risk,”
 
“Market risk” and
 
“Non-financial risk”
 
in this section
 
for more information
 
about model confirmation
procedures
Stress testing
We perform stress testing to estimate losses
 
that could result from extreme yet plausible
 
macroeconomic and geopolitical
stress events to
 
identify, better understand and manage our
 
potential vulnerabilities and risk
 
concentrations. Stress testing
has
 
a
 
key role
 
in our
 
limits framework
 
at
 
the
 
firm-wide,
 
business
 
division,
 
legal
 
entity and
 
portfolio levels.
 
Stress
 
test
results are
 
regularly reported
 
to the BoD
 
and the GEB.
 
As described
 
in “Risk appetite
 
framework,” stress testing,
 
along
with statistical loss measures, has
 
a central role in our risk appetite
 
and business planning
 
processes.
Our stress
 
testing framework
 
has three
 
pillars: (i)
 
combined
 
stress tests;
 
(ii) an
 
extensive
 
set of
 
portfolio-
 
and
 
risk-type-
specific stress tests; and (iii) reverse stress
 
testing.
Our
combined stress
 
testing (CST)
 
framework is scenario-based
 
and aims
 
to quantify overall
 
firm-wide losses
 
that could
result
 
from
 
various
 
potential
 
global
 
systemic
 
events.
 
The
 
framework
 
captures
 
all
 
material
 
risks,
 
as
 
covered
 
in
 
“Risk
categories.” Scenarios
 
are forward
 
-looking
 
and encompass
 
macroeconomic and
 
geopolitical stress
 
events calibrated
 
to
different
 
levels
 
of
 
severity.
 
We
 
implement
 
each
 
scenario
 
through
 
the
 
expected
 
evolution
 
of
 
market
 
indicators
 
and
economic variables under
 
that scenario
 
and then
 
estimate the overall
 
loss and
 
capital implications
 
were the
 
scenario to
occur. At least once a year, the Risk Committee
 
approves the most relevant scenario,
 
known as the
 
binding scenario, for
use as
 
the main
 
scenario for regular
 
CST reporting and
 
for monitoring
 
risk exposure against
 
our minimum capital,
 
earnings
and leverage ratio objectives in our
 
risk appetite framework.
 
We provide
 
detailed stress
 
loss analyses
 
to the
 
Swiss Financial
 
Market Supervisory
 
Authority (FINMA)
 
and
 
regulators of
our legal entities in accordance with their requirements.
 
Our Enterprise-wide Stress
 
Forum (the ESF)
 
aims to
 
ensure the consistency
 
and adequacy of
 
the assumptions and
 
scenarios
used
 
for firm-wide
 
stress
 
measures.
 
As part
 
of
 
its responsibilities,
 
the ESF,
 
with
 
input
 
from the
 
Think
 
Tank,
 
a panel
 
of
senior representatives
 
from the business
 
divisions, Risk
 
Control and
 
Economic Research,
 
seeks to ensure
 
that the set
 
of
stress
 
scenarios
 
adequately
 
reflects
 
current
 
and
 
potential
 
developments
 
in
 
the
 
macroeconomic
 
and
 
geopolitical
environment, current and planned business activities, and actual
 
or potential risk concentrations and vulnerabilities in our
portfolios.
 
Each
 
scenario
 
captures
 
a
 
wide
 
range of
 
macroeconomic
 
variables,
 
including
 
GDP,
 
equity prices,
 
interest
 
rates,
 
foreign
exchange
 
rates,
 
commodity
 
prices,
 
property
 
prices
 
and
 
unemployment.
 
We
 
use
 
assumed
 
changes
 
in
 
these
macroeconomic and market variables in each scenario to
 
stress the key risk drivers of our portfolios. We also capture the
business risk resulting from lower fee, interest and trading income net of lower expenses. These effects are measured for
all businesses
 
and material risk types
 
to calculate the
 
aggregate estimated
 
effect of the
 
scenario on profit
 
or loss, other
comprehensive income, risk-weighted assets,
 
the leverage ratio denominator and,
 
ultimately, capital and leverage ratios.
The assumed
 
changes
 
in macroeconomic
 
variables are
 
updated
 
periodically to
 
account
 
for changes
 
in the
 
current and
possible future market environment.
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
94
 
In 2022,
 
the binding
 
scenario for
 
CST was
 
the internal
global
 
crisis
 
scenario.
 
In this
 
scenario, weaker
 
fiscal conditions
resulting from the COVID-19 pandemic, combined with concerns around inflation, geopolitical tensions and accelerating
policy actions toward a carbon
 
-neutral economy,
 
lead to sovereign
 
defaults in several emerging markets.
 
This then spills
over into a
 
Eurozone crisis,
 
a hard
 
landing in
 
China and
 
a global
 
downturn. The
 
macroeconomic impact is
 
severe, as
 
is
the immediate market impact. Volatility in the bond
 
markets spreads to other asset classes. Greece, Portugal
 
and Cyprus
lose market access
 
and require
 
substantial debt
 
restructurings,
 
while Greece
 
leaves the
 
Eurozone.
 
Weak consumer
 
and
business confidence and a fall
 
in global markets lead to
 
a global recession. The fiscal response in many
 
countries is limited
due to the lack of fiscal headroom, while central banks resume expansionary monetary policy. China is hit severely by the
slowdown in global demand and volatility in financial markets, which
 
further weakens emerging market economies. The
scenario was updated over the course
 
of 2022 to incorporate
 
evolving economic conditions, including rising interest rates
across the globe.
As part of the CST framework, we routinely
 
monitored three additional stress
 
scenarios throu
 
ghout 2022:
–
 
The
global depression
 
scenario explores a
 
resurgence of COVID-19 occurring in
 
the midst of
 
a global market
 
downturn.
A
 
combination
 
of
 
political, solvency
 
and
 
liquidity
 
concerns
 
cause
 
several large
 
emerging
 
markets to
 
default,
 
which
triggers
 
a
 
broader
 
sovereign
 
crisis. Several
 
European
 
economies default,
 
and
 
some leave
 
the
 
Eurozone.
 
A
 
negative
feedback loop between collapsing demand in
 
developed and emerging markets, declining asset
 
values and commodity
prices, and disruption in
 
the banking system leads to a deep
 
and prolonged recession across
 
the globe.
–
 
The
severe Russia
 
–Ukraine
 
conflict
 
scenario
 
was
 
created in
 
early
 
2022
 
in response
 
to developments
 
in Ukraine
 
and
explores a
 
sharp and
 
persistent
 
rise in
 
inflation due
 
to an
 
escalation
 
of geopolitical
 
tensions,
 
leading to
 
a significant
rise in
 
long-term interest
 
rates and
 
a period
 
of market
 
turbulence.
 
Economic activity
 
slows
 
across the
 
globe as
 
both
business and household
 
sentiment collapse, while credit conditions
 
deteriorate. Despite weakness in
 
activity, inflation
remains stubbornly high, forcing central banks to begin raising their policy rates
 
and thereby prolonging the weakness
in economic activity and asset prices.
–
 
The
US
 
monetary
 
crisis
 
scenario
 
explores
 
a
 
loss
 
of
 
confidence
 
in
 
the
 
US,
 
which
 
leads
 
to
 
a
 
sell-off
 
of
 
US
 
dollar-
denominated
 
assets, sparking
 
an abrupt
 
and substantial
 
depreciation
 
of the
 
US dollar.
 
The US
 
economy is
 
hit hard,
financial markets enter a period of high volatility and other industrialized countries replicate the
 
cyclical pattern of the
US.
 
Regional
 
inflation
 
trends
 
diverge
 
as
 
the US
 
experiences significant
 
inflationary
 
pressures
 
while other
 
developed
markets experience deflation.
We have updated
 
the binding
 
stress scenario in
 
our CST
 
framework for 2023.
 
The new
stagflationary geopolitical
 
crisis
 
scenario assumes that a geopolitical
 
event leads to economic
 
regionalization and
 
fears of prolonged stagflation.
 
Central
banks
 
signal
 
a
 
firm commitment
 
to
 
price
 
stability
 
and
 
continue
 
to
 
tighten
 
monetary
 
policy,
 
triggering
 
a
 
broad
 
rise in
interest rates and impacting economic
 
activity and asset values. The
global crisis
 
scenario will continue
 
to be maintained
and run for monitoring purposes.
Portfolio-specific stress tests
 
are measures tailored to the risks of specific portfolios. Our portfolio stress loss measures are
derived
 
from
 
data
 
on
 
past
 
events,
 
but
 
also
 
include
 
forward-looking
 
elements
 
(e.g.,
 
we
 
derive
 
the
 
expected
 
market
movements in our liquidity-adjusted stress metric using a combination of historical market behavior, based on an analysis
of
 
historical
 
events,
 
and
 
forward-looking
 
analysis,
 
including
 
consideration
 
of
 
defined
 
scenarios
 
not
 
modeled
 
on
 
any
historical events).
 
Results of
 
portfolio-specific stress tests
 
may be
 
subject to limits to
 
explicitly control
 
risk-taking or
 
may
be monitored without limits to identify vulnerabilities.
Reverse stress testing
 
starts from a defined stress outcome
 
(e.g., a specified loss amount, reputational damage, a liquidity
shortfall or
 
a breach
 
of
 
regulatory
 
capital
 
ratios) and
 
works backward
 
to identify
 
economic
 
or
 
financial scenarios
 
that
could result in such an outcome. As such, reverse stress testing is
 
intended to complement scenario-based
 
stress tests by
assuming “what if”
 
outcomes that could
 
extend beyond the
 
range normally considered, and
 
thereby potentially
 
challenge
assumptions regarding
 
severity and plausibility.
We also routinely analyze
 
the effect of increases or
 
decreases in interest rates and changes in the
 
structure of yield curves.
Within Group
 
Treasury, we also perform
 
stress testing to
 
determine the optimal
 
asset and
 
liability structure, enabling
 
us
to maintain an appropriately balanced liquidity and funding position
 
under various scenarios. These scenarios differ from
those
 
outlined
 
above,
 
because
 
they
 
focus
 
on
 
specific
 
situations
 
that
 
could
 
generate
 
liquidity
 
and
 
funding
 
stress,
 
as
opposed to the scenarios used
 
in the CST framework, which focus on
 
the effect on profit or loss and capital.
›
 
Refer to “Credit risk”
 
and “Market risk”
 
in this section
 
for more information
 
about stress loss
 
measures
›
 
Refer to the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section of this
 
report for more information
 
about stress testing
›
 
Refer to “Note 19
 
Expected credit
 
loss measurement”
 
in the “Consolidated
 
financial statements”
 
section of this report
 
for more
information about scenarios
 
used for
 
expected credit loss
 
measurement
Statistical measures
We complement
 
the scenario-based
 
CST measures
 
with our
 
statistical stress
 
measures
 
to calculate
 
and aggregate
 
risks
using statistical techniques to
 
derive stress events at chosen confidence levels.
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
95
 
This
 
framework is
 
used
 
to
 
derive a
 
loss
 
distribution,
 
considering
 
effects on
 
both
 
income and
 
expenses,
 
based
 
on
 
the
simulation of historically observed financial and
 
economic risk factors in combination with the firm’s actual earnings and
relevant risk exposures. From that, we
 
determine earnings-at-risk (EaR), measuring the potential shortfall in earnings (i.e.,
the deviation from
 
forecast earnings)
 
at a 95%
 
confidence level and
 
evaluated over a
 
one-year horizon.
 
EaR is used
 
for
the assessment of the earnings
 
objectives in our risk appetite framework.
We
 
extend
 
the
 
EaR
 
measure,
 
incorporating
 
the
 
effects
 
of
 
gains
 
and
 
losses
 
recognized
 
through
 
other
 
comprehensive
income, to
 
derive a
 
distribution of potential effects
 
of stress events
 
on common equity tier 1
 
capital. From this
 
distribution,
we derive our capital-at-risk (CaR)
 
buffer measure at a 95% confidence
 
level to assess our
 
capital and leverage ratio risk
appetite objectives, and derive our CaR solvency
 
measure at a 99.9% confidence level to
 
assess our solvency risk
 
appetite
objective.
We use the CaR solvency
 
measure as a basis for deriving
 
the contributions of the
 
business divisions to risk
 
-based capital
(RBC), which
 
is a component of
 
our equity attribution
 
framework. RBC
 
measures the potential
 
capital impairment from
an extreme stress event at a 99.9%
 
confidence level.
›
 
Refer to the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section of this
 
report for more information
 
about the equity
attribution framework
Portfolio and position limits
UBS maintains
 
a comprehensive
 
set of
 
risk limits
 
across its
 
major risk
 
portfolios.
 
These portfolio
 
limits are
 
set based
 
on
our risk appetite and periodically reviewed
 
and adjusted as part of the
 
business planning process.
Firm-wide stress
 
and
 
statistical
 
metrics are
 
complemented
 
by
 
more granular
 
portfolio
 
and
 
position
 
limits, triggers
 
and
targets.
 
Combining
 
these
 
measures
 
provides
 
a
 
comprehensive
 
framework
 
for
 
control
 
of
 
the
 
key risks
 
of
 
our
 
business
divisions, as well as significant legal entities.
We apply limits to
 
a variety of
 
exposures at
 
portfolio level, using
 
statistical and stress-based
 
measures, such as
 
value-at-
risk,
 
liquidity-adjusted
 
stress,
 
loan
 
underwriting
 
limits,
 
economic
 
value
 
sensitivity
 
and
 
portfolio
 
default
 
simulations
 
for
loan books. These
 
are complemented with a set of
 
controls for net interest
 
income sensitivity, mark
 
-to-market losses on
available-for-sale portfolios, and the effect of foreign
 
exchange movements on capital
 
and capital ratios.
Portfolio measures are
 
supplemented with
 
counterparty- and
 
position-level controls.
 
Risk measures
 
for position controls
are
 
based
 
on
 
market
 
risk
 
sensitivities
 
and
 
counterparty-level
 
credit
 
risk
 
exposures.
 
Market
 
risk
 
sensitivities
 
include
sensitivities to changes in
 
general market risk factors (e.g.,
 
equity indices, foreign exchange
 
rates and interest rates) and
sensitivities
 
to
 
issuer-specific factors
 
(e.g.,
 
changes
 
in
 
an issuer’s
 
credit
 
spread
 
or
 
default risk).
 
We
 
monitor
 
numerous
market
 
and
 
treasury
 
risk
 
controls
 
on
 
a
 
daily
 
basis.
 
Counterparty
 
measures
 
capture
 
the
 
current
 
and
 
potential
 
future
exposure to an individual
 
counterparty, considering collateral and
 
legally enforceable netting agreement
 
s.
 
›
 
Refer to “Credit risk”
 
in this section
 
for more information
 
about counterparty
 
limits
 
›
 
Refer to “Risk appetite
 
framework” in
 
this section for more
 
information about
 
the risk appetite
 
framework
 
Risk concentrations
Audited |
Risk concentrations may exist where
 
one or several positions
 
within or across different
 
risk categories could result
in significant losses relative
 
to UBS’s financial strength.
 
Identifying such risk concentrations
 
and assessing their potential
impact is a critical component
 
of our risk management and control
 
process.
For financial risks, we consider a number of elements, such as shared characteristics of positions, the size of the portfolio
and the sensitivity of positions to
 
changes in the underlying risk factors. Also important
 
in our assessment is the liquidity
of the markets
 
where the
 
positions are
 
traded, as
 
well as the
 
availability and effectiveness
 
of hedges
 
or other potential
risk-mitigating factors. This includes an assessment of, for
 
example, the provider of the hedge and market liquidity
 
where
the hedge might be traded.
 
Particular attention is given
 
to identification of wrong
 
-way risk and risk on risk. Wrong
 
-way
risk is defined as a positive correlation between
 
the size of the exposure and the likelihood of a
 
loss. Risk on risk is when
a position and its risk mitigation
 
can be impacted by the same event.
For non-financial risks, risk concentrations may result from, for example,
 
a single operational risk issue that is large on its
own (i.e.,
 
it has the potential
 
to produce
 
a single high
 
-impact loss or
 
a number of
 
losses that together
 
are high impact)
or related risk issues that may link together
 
to create a high impact.
Risk
 
concentrations
 
are
 
subject
 
to
 
increased
 
oversight
 
by
 
Group
 
Risk
 
Control
 
and
 
Group
 
Compliance,
 
Regulatory
 
&
Governance, and assessed to determine
 
whether they should be reduced or
 
mitigated, depending on the
 
available means
to do
 
so. It is
 
possible that
 
material losses
 
could occur
 
on financial
 
or non
 
-financial risks,
 
particularly if
 
the correlations
that emerge in a stressed environment differ
 
markedly from those envisaged
 
by risk models.
p
 
›
 
Refer to “Credit risk”
 
and “Market risk”
 
in this section
 
for more information
 
about the composition
 
of our portfolios
›
 
Refer to the “Risk
 
factors”
 
section of this
 
report for more information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
96
 
Credit risk
Audited |
Main sources of credit risk
 
–
 
Global
 
Wealth
 
Management
 
credit
 
risk arises
 
from
 
lending
 
against
 
securities collateral,
 
including
 
derivative trading
activity, and lending against
 
residential and commercial real estate collateral,
 
as well as corporate and
 
other lending.
 
–
 
A substantial
 
portion
 
of lending
 
exposure
 
arises from
 
Personal
 
& Corporate
 
Banking,
 
which offers
 
mortgage loans,
secured
 
mainly
 
by
 
owner-occupied
 
properties
 
and
 
income-producing
 
real
 
estate,
 
as
 
well
 
as
 
corporate
 
loans,
 
and
therefore depends on
 
the performance of the Swiss economy and real estate
 
market.
–
 
The
 
Investment
 
Bank’s
 
credit
 
exposure
 
arises
 
mainly
 
from
 
lending,
 
derivatives
 
trading
 
and
 
securities
 
financing.
Derivatives trading and securities financing are mainly investment grade. Loan underwriting activity can
 
be lower rated
and give rise to temporary concentrated exposure
 
.
–
 
Credit risk within Non-core and
 
Legacy portfolio relates to derivative transactions
 
and securitized positions.
p
 
Credit loss expense / release
Total
 
net credit loss
 
expenses were
 
USD 29m
 
in 2022, compared
 
with net credit
 
loss releases
 
of USD 148m
 
in the
 
prior
year, reflecting
 
net expenses of USD 29m
 
related to stage 1 and
 
2 positions.
Stage 1 and 2 expected credit loss expenses of USD 29m relate to lending
 
to corporate clients not secured by mortgages
(USD 21m), mainly driven by scenario effects related
 
to downward revision of
 
GDP and higher interest rate assumptions,
and
 
lending
 
secured
 
by
 
mortgages
 
(USD 16m),
 
mainly
 
driven
 
by
 
scenario
 
effects
 
related
 
to
 
higher
 
interest
 
rate
assumptions,
 
especially
 
in
 
the
 
newly
 
introduced
 
stagflationary
 
geopolitical
 
crisis
 
scenario,
 
and
 
adverse
 
house
 
price
assumptions, partly offset by releases
 
from other lending (USD
 
9m).
›
 
Refer to “Note 1
 
Summary of material
 
accounting policies,”
 
“Note 9 Financial
 
assets at amortized
 
cost and other positions
 
in scope
of expected credit loss
 
measurement” and
 
“Note 19 Expected
 
credit loss measurement”
 
in the “Consolidated
 
financial statements”
section of this report
 
for more information
 
about IFRS 9 and
 
expected credit
 
losses
 
Credit loss expense
 
/ (release)
USD m
Global
 
Wealth
 
Management
Personal &
 
Corporate
 
Banking
Asset
Management
Investment
 
Bank
Group
 
Functions
Total
For the year ended
 
31.12.22
Stages 1 and 2
(5)
27
0
6
1
29
Stage 3
5
12
0
(18)
2
0
Total credit loss expense /
 
(release)
0
39
0
(12)
3
29
For the year ended
 
31.12.21
Stages 1 and 2
(28)
(62)
0
(34)
0
(123)
Stage 3
(1)
(24)
1
0
0
(25)
Total credit loss expense /
 
(release)
(29)
(86)
1
(34)
0
(148)
For the year ended
 
31.12.20
Stages 1 and 2
48
129
0
88
0
266
Stage 3
40
128
2
217
42
429
Total credit loss expense /
 
(release)
88
257
2
305
42
694
Audited |
Overview of measurement, monitoring
 
and management techniques
–
 
Credit risk
 
from
 
transactions
 
with individual
 
counterparties
 
is based
 
on
 
our estimates
 
of probability
 
of default
 
(PD),
exposure at default (EAD)
 
and loss given default (LGD). Limits are established for individual counterparties
 
and groups
of
 
related
 
counterparties
 
covering
 
banking
 
and
 
traded
 
products,
 
and
 
for
 
settlement
 
amounts.
 
Risk
 
authorities
 
are
approved by the Bo
 
ard of Directors and are delegated
 
to the Group CEO, the
 
Group CRO and divisional CROs,
 
based
on risk exposure amounts,
 
internal credit rating and potential for losses.
–
 
Limits apply not only to the current outstanding amount but also to contingent commitments and the potential future
exposure of traded products.
–
 
The Investment Bank monitoring, measurement
 
and limit framework distinguishes
 
between exposures intended to be
held to maturity (take-and-hold
 
exposures) and those intended
 
for distribution or risk transfer (temporary exposures).
–
 
We use
 
models to
 
derive portfolio credit
 
risk measures
 
of expected loss,
 
statistical loss
 
and stress
 
loss at Group
 
-wide
and business division levels, and
 
to establish portfolio limits.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
97
 
–
 
Credit risk concentrations can arise if
 
clients are engaged in similar activities,
 
located in the same geographical
 
region
or have
 
comparable economic
 
characteristics,
 
e.g.,
 
if their
 
ability to
 
meet contractual
 
obligations
 
would be
 
similarly
affected by changes in economic, political or other conditions.
 
To avoid credit risk concentrations, we
 
establish limits /
operational
 
controls
 
that
 
constrain
 
risk
 
concentrations
 
at
 
portfolio,
 
sub-portfolio
 
or
 
counterparty
 
levels
 
for
 
sector
exposure, country risk and specific product
 
exposures.
p
 
Credit risk profile of the Group
The exposures
 
detailed in
 
this section
 
are based
 
on management’s
 
view of
 
credit risk,
 
which differs
 
in certain
 
respects
from the expected credit loss
 
(ECL) measurement requirements
 
of International Financial Reporting
 
Standards (IFRS).
Internally,
 
we
 
put
 
credit
 
risk
 
exposures
 
into
 
two
 
broad
 
categories:
 
banking
 
products
 
and
 
traded
 
products.
 
Banking
products include drawn
 
loans, guarantees and
 
loan commitments,
 
amounts due from
 
banks, balances at
 
central banks,
and other financial
 
assets at amortized cost.
 
Traded products include
 
over-the-counter (OTC) derivatives, exchange-traded
derivatives
 
(ETDs)
 
and
 
securities
 
financing
 
transactions
 
(SFTs),
 
consisting
 
of
 
securities
 
borrowing
 
and
 
lending,
 
and
repurchase and reverse repurchase
 
agreements.
 
Banking and traded
 
products exposure
 
in our business
 
divisions and Group Functions
31.12.22
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
 
Bank
Group
Functions
Total
Banking products
1,2
Gross exposure
334,621
236,508
1,454
76,585
37,986
687,152
of which: loans and advances to customers (on
 
-balance sheet)
219,385
154,643
(1)
12,754
1,221
388,003
of which: guarantees and loan commitments (off-balance
 
sheet)
13,147
28,610
0
12,920
7,486
62,163
Traded products
2,3
Gross exposure
8,328
320
0
34,370
43,018
of which: over-the-counter derivatives
6,416
304
0
11,218
17,938
of which: securities financing transactions
0
0
0
17,055
17,055
of which: exchange-traded derivatives
1,912
15
0
6,097
8,024
Other credit lines, gross
4
12,084
23,092
0
6,105
109
41,390
Total credit-impaired exposure,
 
gross (stage 3)
1
757
1,380
0
312
6
2,455
Total allowances and provisions for expected
 
credit losses (stages 1 to 3)
215
701
0
168
7
1,091
of which: stage 1
68
138
0
49
4
259
of which: stage 2
57
156
0
54
0
267
of which: stage 3
90
406
0
64
3
564
31.12.21
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
 
Bank
Group
Functions
Total
Banking products
1,2
Gross exposure
337,266
229,334
1,520
59,352
65,514
692,985
of which: loans and advances to customers (on
 
-balance sheet)
228,598
152,847
0
13,720
3,445
398,611
of which: guarantees and loan commitments
 
(off-balance sheet)
10,772
29,737
0
14,994
4,947
60,450
Traded products
2,3
Gross exposure
9,582
783
0
35,950
46,314
of which: over-the-counter derivatives
7,186
766
0
9,767
17,719
of which: securities financing transactions
0
0
0
18,566
18,566
of which: exchange-traded derivatives
2,396
17
0
7,617
10,030
Other credit lines, gross
4
12,947
24,174
0
3,629
28
40,778
Total credit-impaired exposure,
 
gross (stage 3)
1
729
1,617
0
264
0
2,610
Total allowances and provisions for expected
 
credit losses (stages 1 to 3)
264
709
0
188
4
1,165
of which: stage 1
89
126
0
64
4
282
of which: stage 2
41
146
0
34
0
220
of which: stage 3
135
438
0
90
0
662
1 ECL gross exposure including
 
other financial assets
 
at amortized cost,
 
but excluding cash, receivables
 
from securities financing
 
transactions, cash
 
collateral receivables
 
on derivative instruments,
 
financial assets at
FVOCI, irrevocable committed prolongation of existing loans and unconditionally revocable committed credit lines and forward starting reverse repurchase and securities borrowing agreements.
 
2 Internal management
view of credit
 
risk, which differs
 
in certain
 
respects from
 
IFRS.
 
3 As counterparty
 
risk for traded
 
products is
 
managed at
 
counterparty level,
 
no further split
 
between exposures
 
in the Investment
 
Bank and Group
Functions is provided.
 
4 Unconditionally revocable
 
committed credit lines.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
98
 
Banking products
›
 
Refer to “Note 1
 
Summary of material
 
accounting policies”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for
more information about
 
our accounting
 
policy for allowances
 
and provisions for
 
ECL
›
 
Refer to “Note 9
 
Financial assets at
 
amortized cost
 
and other positions
 
in scope of expected
 
credit loss
 
measurement” and “Note
19 Expected credit
 
loss measurement”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for more information
about ECL measurement
 
requirements under
 
IFRS
›
 
Refer to “Note 13a
 
Other financial
 
assets measured
 
at amortized cost”
 
in the “Consolidated
 
financial
 
statements” section
 
of this
report for more details
 
Global Wealth Management
Gross banking products exposure within Global Wealth Management decreased slightly to USD 335bn from USD 337bn.
Our Global
 
Wealth
 
Management
 
loan
 
portfolio
 
is
 
mainly secured
 
by securities
 
(Lombard
 
loans)
 
and
 
by residential
 
real
estate. Most
 
of our
 
USD 154bn
 
of Lombard
 
loans,
 
including traded
 
products collateralized
 
by securities,
 
were of
 
high
quality, with
 
89%
 
rated as investment
 
grade based
 
on our
 
internal ratings
 
and an
 
average loan-to-value (LTV)
 
of 49%.
Moreover,
 
Lombard
 
loans
 
are
 
typically
 
uncommitted,
 
short
 
term
 
in
 
nature
 
and
 
can
 
be
 
canceled
 
immediately
 
if
 
the
collateral
 
quality
 
deteriorates
 
and
 
margin
 
calls
 
are
 
not
 
met.
 
In
 
2022,
 
the
 
Lombard
 
book,
 
including
 
traded
 
products,
decreased
 
by
 
approximately 11%,
 
while
 
keeping
 
a
 
stable
 
risk profile
 
with
 
regard
 
to
 
collateral concentrations
 
with
 
no
material losses.
 
The decrease
 
was primarily driven by
 
clients in Asia
 
Pacific deleveraging on
 
the back of ongoing
 
market
volatility. The share of non-standard Lombard
 
loans, for example those with less liquid or concentrated collateral, slightly
increased to 5% of the total Lombard
 
book from 4%.
The mortgage
 
book increased
 
by approximately
 
8%, driven
 
by higher
 
volumes of
 
mortgage loans
 
in the US
 
residential
real estate portfolios (average LTV 48%)
 
and by further expansion of
 
the commercial real estate business
 
to USD 5bn.
Other financings represent
 
approximately 6% of
 
the total
 
banking products exposures and are
 
consolidated in a
 
corporate
and other
 
portfolio that increased
 
by approximately
 
68% in
 
2022, mainly driven
 
by private equity
 
subscription
 
facilities
in the US, which are mostly investment grade
 
rated.
 
Collateralization
 
of Loans and advances
 
to customers
1
UBS
of which:
Global Wealth Management
of which: Personal &
Corporate Banking
of which:
Investment Bank
USD m, except where indicated
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
Secured by collateral
 
367,159
 
377,857
 
216,993
 
225,591
 
138,851
 
138,344
 
10,724
 
11,200
Residential real estate
 
172,700
 
168,696
 
62,200
 
58,655
 
110,500
 
110,041
 
0
 
0
Commercial / industrial real estate
 
25,271
 
22,682
 
4,955
 
3,338
 
19,795
 
18,878
 
520
 
466
Cash
 
33,550
 
37,504
 
30,514
 
34,175
 
3,036
 
3,114
 
0
 
215
Securities
 
115,941
 
128,665
 
107,253
 
115,901
 
2,228
 
2,214
 
5,869
 
7,829
Other collateral
 
19,698
 
20,310
 
12,071
 
13,523
 
3,293
 
4,098
 
4,334
 
2,690
Subject to guarantees
 
2,957
 
3,954
 
144
 
616
 
2,758
 
3,338
 
55
 
0
Uncollateralized and not subject to guarantees
 
17,887
 
16,801
 
2,247
 
2,391
 
13,034
 
11,166
 
1,976
 
2,519
Total loans and advances
 
to customers, gross
 
388,003
 
398,611
 
219,385
 
228,598
 
154,643
 
152,847
 
12,754
 
13,720
Allowances
 
(783)
 
(850)
 
(138)
 
(168)
 
(559)
 
(574)
 
(83)
 
(108)
Total loans and advances
 
to customers, net of allowances
 
387,220
 
397,761
 
219,247
 
228,431
 
154,084
 
152,273
 
12,672
 
13,612
Collateralized loans and advances to
 
customers in % of
total loans and advances to customers,
 
gross (%)
 
94.6
 
94.8
 
98.9
 
98.7
 
89.8
 
90.5
 
84.1
 
81.6
1 Collateral arrangements
 
generally incorporate
 
a range of
 
collateral, including
 
cash, securities, real
 
estate and other
 
collateral. UBS
 
applies a risk-based
 
approach that
 
generally prioritizes collateral
 
according to its
liquidity profile.
Personal & Corporate Banking
 
Gross
 
banking
 
products
 
exposure
 
within
 
Personal
 
&
 
Corporate
 
Banking
 
increased
 
to
 
USD 237bn,
 
compared
 
with
USD 229bn in 2021.
 
Net banking products
 
exposure (excluding
 
exposure
 
reallocated
 
from Group Treasury)
 
was largely
unchanged
 
at
 
USD 186bn
 
(CHF 172bn
 
),
 
of
 
which
 
approximately
 
66%
 
was
 
classified
 
as
 
investment
 
grade,
 
broadly
unchanged
 
from 2021.
 
Around 48
 
%
 
of the exposure
 
is categorized
 
in the lowest
 
LGD bucket,
 
i.e., 0–25%,
 
compared
with 50% in
 
2021.
 
Personal &
 
Corporate
 
Banking’s
 
gross loan
 
portfolio
 
was USD
 
155bn
 
(CHF 143bn)
 
compared
 
with
USD 153bn
 
(CHF 139
 
bn)
 
in
 
2021.
 
This
 
portfolio
 
is
 
predominantly
 
denominated
 
in
 
Swiss
 
francs
 
and
 
the
 
increase
 
in
Swiss franc
 
terms was
 
largely offset
 
by the effect
 
of the US
 
dollar appreciating.
 
As of 31
 
December
 
2022,
 
90% of this
portfolio was
 
secured
 
by collateral,
 
mainly residential
 
and commercial
 
property.
 
Of the
 
total
 
unsecured
 
amount,
 
86%
related to
 
cash flow-based
 
lending to corporate
 
counterparties
 
and 3%
 
related to
 
lending to public
 
authorities.
 
Based
on
 
our
 
internal
 
ratings,
 
53%
 
of
 
the
 
unsecured
 
loan
 
portfolio
 
was
 
rated
 
as
 
investment
 
grade,
 
compared
 
with
 
50%
in 2021.
Our Swiss
 
corporate
 
banking
 
products take-and-hold
 
portfolio,
 
which was
 
USD 36bn
 
(CHF 33bn) and
 
unchanged compared
with 2021,
 
consists of loans, guarantees and loan commitments to multi-national
 
and domestic counterparties. The small
and
 
medium-sized entity (SME)
 
portfolio, in particular,
 
is well
 
diversified across industries. However,
 
such companies are
reliant on the domestic
 
economy and the
 
economies to
 
which they export,
 
in particular
 
the EU and the US.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
99
 
Our commodity
 
trade finance
 
portfolio focuses
 
on energy
 
and base-metal
 
trading companies,
 
where the
 
related commodity
price risk
 
is hedged
 
to a
 
large extent by
 
the commodity trader.
 
The majority of
 
limits in
 
this business are
 
uncommitted,
transactional and
 
short-term in
 
nature. Our
 
portfolio size
 
was USD 7bn
 
(CHF 7bn) as
 
of 31 December 2022,
 
compared with
USD 8bn (CHF 7bn) in
 
2021,
 
with a considerable
 
part of the exposure
 
correlating
 
with commodity
 
prices.
Our
 
exposure
 
to banks
 
consists primarily
 
of
 
contingent
 
claims
 
and
 
was USD
 
5bn
 
(CHF 5bn),
 
compared
 
with
 
USD 6bn
(CHF 5bn) in 2021.
Despite
 
the
 
Russia–Ukraine
 
war,
 
higher
 
energy
 
prices
 
and
 
supply
 
chain
 
bottlenecks,
 
as
 
well
 
as the
 
onset
 
of
 
monetary
policy tightening, credit
 
losses were at a
 
low level in 2022.
 
The delinquency ratio was
 
0.2% for the
 
corporate portfolio,
compared with 0.3%
 
at the end of 2021.
 
›
 
Refer to “Credit risk
 
models” in this
 
section for more information
 
about loss given
 
default, rating
 
grades and rating
 
agency
mappings
Swiss mortgage loan portfolio
Our Swiss
 
mortgage loan portfolio
 
secured by
 
residential and commercial
 
real estate in
 
Switzerland continues to be
 
our
largest loan
 
portfolio. These
 
mortgage loans,
 
totaling USD
 
170bn (CHF
 
157bn), mainly
 
originate from
 
Personal &
 
Corporate
Banking,
 
but also
 
from Global
 
Wealth Management
 
Region Switzerland.
 
Of these
 
mortgage
 
loans,
 
USD 154bn (CHF
 
142bn)
related to residential properties that
 
the borrower was either
 
occupying or renting out, with full recourse
 
to the borrower.
Of
 
this
 
USD 154bn
 
(CHF 142bn), USD 111bn
 
(CHF 103bn)
 
is
 
related
 
to
 
properties occupied
 
by
 
the
 
borrower,
 
with
 
an
average LTV
 
ratio of 51%, compared with 52%
 
as of 31 December 2021. The average LTV for newly originated loans for
this
 
portfolio
 
was
 
63%,
 
compared
 
with
 
64%
 
in
 
2021.
 
The
 
remaining
 
USD 43bn
 
(CHF 39bn)
 
of
 
the
 
Swiss
 
residential
mortgage loan portfolio related to
 
properties rented out by the borrower and the average
 
LTV of that portfolio was 51%,
compared with 52%
 
as of 31 December 2021.
 
The average LTV for newly originated Swiss residential mortgage loans for
properties rented out
 
by the borrower was 54%, compared
 
with 55%
 
in 2021.
 
As illustrated in the “Swiss mortgages: distribution
 
of net exposure at default (EAD) across exposure segments
 
and loan-
to-value (LTV) buckets” table below,
 
99.9%
 
of the aggregate
 
amount of Swiss residential
 
mortgage loans would continue
to be
 
covered by the
 
real estate collateral even
 
if the value
 
assigned to
 
that collateral were to
 
decrease 20%, and
 
more
than
 
99%
 
would
 
remain
 
covered
 
by
 
the
 
real
 
estate
 
collateral
 
even
 
if
 
the
 
value
 
assigned
 
to
 
that
 
collateral
 
were
 
to
decrease 30%.
 
Personal & Corporate
 
Banking: distribution
 
of banking products
 
exposure across
 
internal UBS ratings and
 
loss given
default (LGD) buckets
1
USD m, except where indicated
31.12.22
31.12.21
LGD buckets
Weighted
average
LGD (%)
Weighted
average
LGD (%)
Internal UBS rating
2
Exposure
0–25%
26–50%
51–75%
76–100%
Exposure
Investment grade
123,358
67,254
44,236
9,162
2,706
28
121,520
27
Sub-investment grade
62,219
22,924
25,168
11,790
2,336
35
63,141
34
of which: 6−9
56,774
21,053
22,976
10,592
2,153
35
57,955
34
of which: 10−13
5,445
1,871
2,193
1,199
182
36
5,185
36
Defaulted / Credit-impaired
 
1,380
24
1,151
205
42
1,617
42
Total exposure before deduction
 
of allowances and provisions
186,957
90,202
70,555
21,158
5,042
30
186,278
29
Less: allowances and provisions
(664)
(674)
Net banking products exposure
1
186,293
185,604
1 Excluding balances at central
 
banks and Group Treasury
 
reallocations.
 
2 The ratings
 
of the major credit rating
 
agencies, and their
 
mapping to our internal
 
rating scale, are
 
shown in the “Internal
 
UBS rating scale
and mapping of external ratings”
 
table in this section.
 
Personal & Corporate
 
Banking: loans uncollateralized
 
and not subject
 
to guarantees
 
by industry sector
31.12.22
31.12.21
USD m
%
USD m
%
Construction
172
1.3
166
1.5
Financial institutions
3,878
29.8
2,786
25.0
Hotels and restaurants
135
1.0
119
1.1
Manufacturing
1,715
13.2
1,555
13.9
Private households
1,473
11.3
1,488
13.3
Public authorities
416
3.2
419
3.8
Real estate and rentals
547
4.2
574
5.1
Retail and wholesale
2,230
17.1
1,971
17.7
Services
2,242
17.2
1,908
17.1
Other
226
1.7
180
1.6
Exposure, gross
13,034
100.0
11,166
100.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
100
 
Swiss mortgages: distribution
 
of net exposure
 
at default (EAD) across
 
exposure segments
 
and loan-to-value
 
(LTV)
buckets
1
USD bn, except where indicated
31.12.22
31.12.21
LTV buckets
Exposure segment
≤30%
31–50%
51–60%
61–70%
71–80%
81–100%
>100%
Total
Total
Residential mortgages
Net EAD
91.5
38.4
9.6
3.9
1.0
0.1
0.0
144.5
143.9
as a % of row total
63
27
7
3
1
0
0
100
Income-producing real estate
Net EAD
15.6
6.1
1.3
0.5
0.1
0.0
0.0
23.7
22.2
as a % of row total
66
26
6
2
1
0
0
100
Corporates
Net EAD
7.2
2.7
0.7
0.4
0.2
0.1
0.0
11.2
10.9
as a % of row total
64
24
6
3
1
1
0
100
Other segments
Net EAD
0.6
0.2
0.0
0.0
0.0
0.0
0.0
0.9
0.9
as a % of row total
67
22
5
3
2
1
0
100
Mortgage-covered exposure
Net EAD
114.8
47.4
11.6
4.9
1.2
0.3
0.1
180.3
177.9
as a % of total
64
26
6
3
1
0
0
100
Mortgage-covered exposure 31.12.21
Net EAD
111.2
47.0
12.2
5.5
1.5
0.3
0.1
177.9
as a % of total
63
26
7
3
1
0
0
1 The amount of each
 
mortgage loan is allocated
 
across the LTV
 
buckets to indicate the
 
portion at risk at the various
 
value levels
 
shown; for example, a
 
loan of 75 with
 
an LTV ratio
 
of 75% (i.e., a collateral
 
value of
100) would result in allocations
 
of 30 in the less-than-30%
 
LTV bucket,
 
20 in
 
the 31–50% bucket,
 
10 in the 51–60% bucket,
 
10 in the 61–70%
 
bucket and 5 in the 71
 
–80% bucket.
Investment Bank
The Investment
 
Bank’s
 
lending
 
activities are
 
largely associated
 
with corporate
 
and
 
non-bank
 
financial institutions.
 
The
business is broadly d
 
iversified across industry sectors, but concentrated
 
in North America.
The gross
 
banking products exposure
 
increased to USD 77
 
bn as of 31
 
December 2022,
 
compared with
 
USD 59bn as of
31 December 202
 
1,
 
mostly driven by balances
 
at central banks
 
allocated to the
 
business division.
 
Excluding balances
 
at
central banks and Group Treasury
 
reallocations, gross banking products exposure decreased to
 
USD 32bn from USD 35bn
in 2021, mostly
 
driven by a
 
decrease in irrevocable
 
loan commitments.
 
Based on
 
our internal ratings,
 
50% of this gross
banking products exposure was classified as investment grade. The
 
vast majority of the gross banking products exposure
had an estimated LGD below 50
 
%.
Total mandated temporary loan underwriting exposure
 
ended 2022 at USD 2.6bn, compared with USD 6.6bn at the end
of the prior year. USD 2.3bn of
 
commitments had not yet been distributed
 
as originally planned as of
 
31
 
December 2022.
Loan underwriting
 
exposures
 
are classified
 
as held
 
for trading,
 
with fair
 
values reflecting
 
market conditions
 
at the
 
end
of 2022.
›
 
Refer to “Credit risk
 
models” in this
 
section for more information
 
about LGD, rating
 
grades and rating
 
agency mappings
 
Investment Bank:
 
distribution of banking
 
products exposure
 
across internal
 
UBS ratings and loss
 
given default (LGD)
buckets
1
USD m, except where indicated
31.12.22
31.12.21
LGD buckets
Weighted
average
LGD (%)
Weighted
average
LGD (%)
Internal UBS rating
2
Exposure
0–25%
26–50%
51–75%
76–100%
Exposure
Investment grade
15,878
4,182
7,867
2,127
1,702
37
18,302
36
Sub-investment grade
15,522
4,872
6,324
4,128
198
23
16,250
20
of which: 6−9
9,174
2,746
2,380
3,879
169
17
10,467
14
of which: 10−13
6,348
2,127
3,944
249
29
32
5,783
31
Defaulted / Credit-impaired
312
273
27
9
3
21
264
33
Banking products exposure
1
31,712
9,327
14,218
6,264
1,904
30
34,815
28
1 Excluding balances at central
 
banks and Group Treasury
 
reallocations.
 
2 The ratings
 
of the major credit rating
 
agencies, and
 
their mapping to our internal
 
rating scale, are
 
shown in the “Internal
 
UBS rating scale
and mapping of external ratings”
 
table in this section.
 
 
Investment Bank:
 
banking products
 
exposure
 
by geographical region
1
31.12.22
31.12.21
USD m
%
USD m
%
Asia Pacific
4,766
15.0
5,154
14.8
Latin America
1,209
3.8
1,327
3.8
Middle East and Africa
183
0.6
212
0.6
North America
15,409
48.6
16,282
46.8
Switzerland
461
1.5
453
1.3
Rest of Europe
9,684
30.5
11,387
32.7
Exposure
1
31,712
100.0
34,815
100.0
1 Excluding balances at central
 
banks and Group Treasury
 
reallocations.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
101
 
Investment Bank:
 
banking products
 
exposure
 
by industry sector
1
31.12.22
31.12.21
USD m
%
USD m
%
Banks
4,409
13.9
4,908
14.1
Chemicals
583
1.8
645
1.9
Electricity, gas, water
 
supply
363
1.1
359
1.0
Financial institutions, excluding banks
14,587
46.0
13,353
38.4
Manufacturing
1,361
4.3
1,692
4.9
Mining
878
2.8
1,024
2.9
Public authorities
259
0.8
619
1.8
Real estate and construction
1,685
5.3
1,581
4.5
Retail and wholesale
1,654
5.2
2,793
8.0
Technology and
 
communications
2,324
7.3
3,736
10.7
Transport and
 
storage
499
1.6
414
1.2
Other
3,110
9.8
3,691
10.6
Exposure
1
31,712
100.0
34,815
100.0
1 Excluding balances at central
 
banks and Group Treasury
 
reallocations.
Group Functions
Gross banking
 
products
 
exposure within
 
Group Functions,
 
which arises
 
primarily in
 
connection
 
with treasury
 
activities,
decreased by
 
USD 28bn
 
to USD 38bn from
 
balances at central banks.
 
The decrease
 
was mainly due
 
to shifts within
 
the
high-quality liquid asset
 
portfolio from cash
 
into securities,
 
a reduction in
 
short-term debt,
 
decreases in
 
customer deposits,
and
 
outflows related to the share
 
repurchase programs
 
.
 
›
 
Refer to “Balance
 
sheet assets” in
 
the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section
 
of this report for more
information
›
 
Refer to the “Group
 
Functions” section
 
of this report for more
 
information
Traded products
Audited |
Counterparty credit
 
risk (CCR)
 
arising from
 
traded products,
 
which include
 
OTC derivatives,
 
ETD exposures
 
and
SFTs,
 
originating in the Investment Bank, Non
 
-core and Legacy Portfolio, and Group Treasury,
 
is generally managed on a
close-out
 
basis.
 
This
 
takes
 
into
 
account
 
possible
 
effects
 
of
 
market
 
movements
 
on
 
the
 
exposure
 
and
 
any
 
associated
collateral over the time it
 
would take to close out our positions. In the Investment
 
Bank, limits are applied to the potential
future
 
exposure
 
per
 
counterparty,
 
with
 
the
 
size
 
of
 
the
 
limit
 
dependent
 
on
 
the
 
counterparty’s
 
creditworthiness
 
(as
determined by Risk Control).
 
Limit frameworks are also
 
used to control
 
overall exposure to
 
specific classes or
 
categories
of collateral on a portfolio level.
 
Such portfolio limits are monitored
 
and reported to senior management.
 
Trading in
 
OTC derivatives is conducted
 
through central counterparties
 
where practicable.
 
Where central counterparties
are not used, we have clearly defined policies and processes for trading on a bilateral
 
basis. Trading is typically conducted
under
 
bilateral International
 
Swaps
 
and
 
Derivatives Association
 
or
 
similar master
 
netting
 
agreements,
 
which
 
generally
allow
 
for
 
close-out
 
and
 
netting
 
of
 
transactions
 
in
 
case
 
of
 
default,
 
subject
 
to
 
applicable
 
law.
 
For
 
most
 
major
 
market
participant counterparties,
 
we use
 
two-way collateral
 
agreements under
 
which either
 
party can
 
be required
 
to provide
collateral in the form of cash or marketable securities when the exposure
 
exceeds specified levels. This collateral typically
consists of well-rated government debt or other
 
collateral permitted by applicable regulations. For certain counterparties,
an initial
 
margin
 
is taken
 
to cover
 
some or
 
all of
 
the calculated
 
close-out
 
exposure.
 
This is
 
in addition
 
to the
 
variation
margin
 
taken
 
to
 
settle
 
changes
 
in
 
market
 
value
 
of
 
transactions.
 
Regulations
 
on
 
margining
 
uncleared
 
OTC
 
derivatives
continue to evolve. These
 
generally expand
 
the scope of bilateral derivatives
 
activity subject to
 
margining. They will
 
also
result in greater amounts of initial margin received from, and
 
posted to, certain bilateral trading counterparties than had
been required in the past.
 
These changes should result in lower
 
close-out risk over time.
p
 
In
 
the
 
tables
 
below,
 
OTC
 
derivatives
 
exposures
 
are
 
generally
 
presented
 
as
 
net
 
positive
 
replacement
 
values
 
after
 
the
application
 
of
 
legally
 
enforceable
 
netting
 
agreements
 
and
 
the
 
deduction
 
of
 
cash
 
and
 
marketable
 
securities
 
held
 
as
collateral.
 
SFT
 
exposures
 
are
 
reported
 
taking
 
into
 
account
 
collateral
 
received,
 
and
 
ETD
 
exposures
 
take
 
into
 
account
collateral margin calls.
 
›
 
Refer to “Note 10
 
Derivative
 
instruments”
 
in the “Consolidated
 
financial
 
statements”
 
section of this report for
 
more information
about OTC derivatives
 
settled through
 
central counterparties
›
 
Refer to “Note 21
 
Offsetting
 
financial
 
assets
 
and
 
financial
 
liabilities”
 
in the “Consolidated
 
financial
 
statements”
 
section of this report
for more information
 
about the effect of netting
 
and collateral arrangements
 
on derivative exposures
 
Investment Bank,
 
Non-core and Legacy
 
Portfolio and Group
 
Treasury:
 
traded products
 
exposure
USD m
OTC derivatives
SFTs
ETDs
Total
Total
31.12.22
31.12.21
Total exposure, before deduction
 
of credit valuation adjustments and hedges
11,218
17,055
6,097
34,370
35,950
Less: credit valuation adjustments and allowances
(34)
(1)
0
(35)
(34)
Less: credit protection bought (credit
 
default swaps, notional)
(109)
(109)
(119)
Net exposure after credit valuation
 
adjustments, allowances
 
and hedges
11,075
17,055
6,097
34,226
35,797
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
102
 
Investment Bank,
 
Non-core and Legacy
 
Portfolio and Group
 
Treasury:
 
distribution of
 
net OTC derivatives and
 
SFT
exposure across internal
 
UBS ratings and loss
 
given default (LGD) buckets
USD m, except where indicated
31.12.22
31.12.21
LGD buckets
Weighted
average
LGD (%)
Weighted
average
LGD (%)
Internal UBS rating
1
Exposure
0–25%
26–50%
51–75%
76–100%
Exposure
Net OTC derivatives exposure
Investment grade
10,757
310
8,791
444
1,212
48
9,297
47
Sub-investment grade
318
13
114
14
177
72
317
59
of which: 6−9
285
9
89
13
174
76
249
62
of which: 10−12
28
0
25
0
2
41
46
64
of which: 13 and defaulted
5
3
0
2
0
23
22
14
Total net OTC
 
derivatives exposure, after credit
 
valuation adjustments
and hedges
11,075
322
8,905
458
1,389
49
9,615
48
Net SFT exposure
Investment grade
16,682
279
14,414
999
990
40
17,937
40
Sub-investment grade
373
0
151
45
177
71
629
69
Total net SFT exposure
17,055
279
14,565
1,044
1,166
41
18,566
41
1 The ratings of the
 
major credit rating agencies,
 
and their mapping to our internal
 
rating scale,
 
are shown in the “Internal
 
UBS rating scale and mapping
 
of external ratings” table in
 
this section.
 
 
Investment Bank,
 
Non-core and Legacy
 
Portfolio and Group
 
Treasury:
 
net OTC derivatives
 
and SFT exposure
by geographical region
Net OTC derivatives exposure
Net SFT exposure
31.12.22
31.12.21
31.12.22
31.12.21
USD m
%
USD m
%
USD m
%
USD m
%
Asia Pacific
1,249
11.3
1,586
16.5
4,906
28.8
5,380
29.0
Latin America
117
1.1
111
1.2
34
0.2
20
0.1
Middle East and Africa
615
5.6
112
1.2
483
2.8
360
1.9
North America
2,200
19.9
1,830
19.0
3,177
18.6
4,473
24.1
Switzerland
1,055
9.5
688
7.2
466
2.7
559
3.0
Rest of Europe
5,839
52.7
5,288
55.0
7,988
46.8
7,774
41.9
Exposure
11,075
100.0
9,615
100.0
17,055
100.0
18,566
100.0
 
Investment Bank,
 
Non-core and Legacy
 
Portfolio and Group
 
Treasury:
 
net OTC derivatives
 
and SFT exposure
by industry sector
Net OTC derivatives exposure
Net SFT exposure
31.12.22
31.12.21
31.12.22
31.12.21
USD m
%
USD m
%
USD m
%
USD m
%
Banks
1,288
11.6
986
10.3
869
5.1
1,654
8.9
Chemicals
71
0.6
14
0.1
0
0.0
0
0.0
Electricity, gas, water
 
supply
118
1.1
103
1.1
0
0.0
0
0.0
Financial institutions, excluding banks
8,614
77.8
7,174
74.6
14,865
87.2
15,866
85.5
Manufacturing
97
0.9
50
0.5
0
0.0
0
0.0
Mining
20
0.2
51
0.5
0
0.0
0
0.0
Public authorities
655
5.9
810
8.4
1,320
7.7
926
5.0
Retail and wholesale
29
0.3
22
0.2
0
0.0
0
0.0
Transport, storage
 
and communication
115
1.0
255
2.6
0
0.0
0
0.0
Other
69
0.6
150
1.6
0
0.0
120
0.6
Exposure
11,075
100.0
9,615
100.0
17,055
100.0
18,566
100.0
Credit risk mitigation
Audited |
We
 
actively
 
manage
 
credit
 
risk
 
in
 
our
 
portfolios
 
by
 
taking
 
collateral
 
against
 
exposures
 
and
 
by
 
utilizing
 
credit
hedging.
p
 
Lending secured by real estate
Audited |
We
 
use
 
a
 
scoring
 
model
 
as
 
part
 
of
 
a
 
standardized
 
front-to-back
 
process
 
for
 
credit
 
decisions
 
on
 
originating
 
or
modifying Swiss mortgage loans.
 
The model’s two key factors are the
 
LTV ratio
 
and an affordability
 
calculation.
p
 
The calculation of affordability takes
 
into account interest payments,
 
minimum amortization requirements
 
and potential
property
 
maintenance
 
costs
 
in
 
relation
 
to
 
gross
 
income
 
or
 
rental
 
income
 
for
 
rental
 
properties.
 
Interest
 
payments
 
are
estimated using
 
a predefined
 
framework, which
 
considers
 
the potential
 
for significant
 
interest
 
rate increases
 
over
 
the
lifetime of the loan. The interest rate is
 
set at 5% per annum
 
in the context of the current environment.
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
103
 
For
 
residential
 
properties
 
occupied
 
by
 
the borrower,
 
the maximum
 
LTV
 
for
 
the
 
standard
 
approval
 
process
 
is 80%
 
and
60%
 
for
 
holiday
 
homes
 
and
 
luxury
 
real
 
estate.
 
For
 
other
 
properties,
 
the
 
maximum
 
LTV
 
allowed
 
within
 
the
 
standard
approval
 
process
 
ranges
 
from
 
30%
 
to
 
80%,
 
depending
 
on
 
the
 
type
 
and
 
age
 
of
 
the
 
property,
 
and
 
the
 
amount
 
of
renovation work needed.
 
Audited |
The value we assign to each property is based on the lowest value determined from model-derived valuations, the
purchase
 
price,
 
an
 
asset
 
value
 
for
 
income-producing
 
real
 
estate
 
(IPRE),
 
and,
 
in
 
some
 
cases,
 
an
 
additional
 
external
valuation.
p
 
Two separate
 
models provided
 
by a
 
market-leading
 
external
 
vendor are
 
used
 
to derive
 
property
 
valuations
 
for owner-
occupied
 
residential properties
 
(ORPs)
 
and
 
IPRE. We
 
estimate the
 
current value
 
of an
 
ORP using
 
a regression
 
model (a
hedonic model) based on statistical comparison
 
against current transaction data. We derive the
 
value of a property from
the characteristics
 
of the
 
real estate
 
itself, as
 
well as
 
those of
 
its location.
 
In addition
 
to the initial
 
valuation, values
 
for
ORPs are
 
updated quarterly over
 
the lifetime
 
of the loan
 
using region
 
-specific real estate price
 
indices. The
 
price indices
are
 
sourced
 
from
 
an
 
external
 
vendor
 
and
 
subject
 
to
 
internal
 
validation
 
and
 
benchmarking.
 
We
 
use
 
these
 
valuations
quarterly to compute
 
indexed LTV
 
for all ORPs.
 
A portfolio-specific
 
monitoring
 
system considers
 
these along
 
with other
risk
 
measures
 
(e.g.,
 
rating
 
and
 
behavioral
 
information)
 
to
 
identify
 
higher-risk
 
loans
 
and
 
triggers
 
an
 
assessment
 
and
reappraisal by client advisors and credit officers
 
as needed.
For IPRE, the
 
capitalization rate model
 
is used to determine
 
the property valuation
 
by discounting
 
estimated sustainable
future
 
income
 
using
 
a
 
capitalization
 
rate
 
based
 
on
 
various
 
attributes.
 
These
 
attributes
 
consider
 
regional
 
and
 
specific
property characteristics, such as market and location data (e.g., vacancy rates), benchmarks (e.g.,
 
for running costs), and
certain
 
other
 
standardized
 
input
 
parameters
 
(e.g.,
 
property
 
condition).
 
Updated
 
information
 
regarding
 
rental
 
income
from IPRE is
 
requested from the
 
client at least once
 
every three years.
 
Our portfolio-specific
 
monitoring system alerts
 
us
to changes in rental
 
income and other risk
 
measures (e.g., LTV, rating,
 
behavioral information), and triggers
 
an assessment
and reappraisal by client advisors and credit officers
 
as needed.
To take market developments into account for these
 
models, the external vendor regularly updates the parameters
 
and /
or refines
 
the
 
architecture
 
for each
 
model. Model
 
changes
 
and
 
parameter updates
 
are subject
 
to the
 
same
 
validation
procedures as our internally developed
 
models.
 
Audited |
We similarly apply
 
underwriting
 
guidelines for
 
our Global
 
Wealth Management
 
Region Americas
 
mortgage loan
portfolio,
 
taking
 
into
 
account
 
loan
 
affordability
 
and
 
collateral
 
sufficiency.
 
LTV
 
standards
 
are
 
defined
 
for
 
the
 
various
mortgage types, such
 
as residential mortgages or
 
investment properties, based on
 
associated risk
 
factors, such as
 
property
type, loan size, and purpose. The maximum LTV
 
allowed within the standard approval process ranges from
45
% to
80
%.
In addition
 
to LTV, other
 
credit risk metrics, such
 
as debt-to-income ratios,
 
credit scores and
 
required client reserves,
 
are
also part of our underwriting guidelines.
A risk limit framework is applied to the Global
 
Wealth Management Region Americas mortgage loan portfolio. Limits are
set
 
to
 
govern
 
exposures
 
within
 
LTV
 
categories,
 
geographic
 
concentrations,
 
portfolio
 
growth
 
and
 
high-risk
 
mortgage
segments, such as
 
interest-only loans. These
 
limits are monitored
 
by a
 
specialized credit risk monitoring
 
team and reported
to senior
 
management. Supplementing
 
this limit
 
framework
 
is a
 
real estate
 
lending
 
policy and
 
procedures
 
framework,
set up
 
to govern real
 
estate lending
 
activities. Quality assurance
 
and quality
 
control programs
 
monitor compliance with
mortgage underwriting and documentation
 
requirements.
 
For our mortgage
 
loan portfolio
 
in the Global
 
Wealth Management
 
regions of
 
EMEA and
 
Asia Pacific, we
 
apply global
underwriting guidelines with
 
regional variations to allow for regulatory and
 
market differentials. As in other regions,
 
the
underwriting
 
guidelines
 
take into
 
account
 
affordability
 
and
 
collateral
 
sufficiency.
 
Affordability
 
is assessed
 
at
 
a stressed
interest
 
rate
 
using,
 
for
 
residential
 
real
 
estate,
 
the
 
borrowers’
 
sustainable
 
income
 
and
 
declared
 
liabilities,
 
and
 
for
commercial real estate
 
the quality and
 
sustainability of
 
rental income.
 
For interest-only
 
loans, a
 
declared and
 
evidenced
repayment strategy
 
must be in
 
place. The
 
applicable LTV for
 
each mortgage
 
is based
 
on the
 
quality and
 
liquidity of the
property
 
and
 
assessed
 
against
 
valuations
 
from bank-appointed
 
third-party
 
valuers.
 
Maximum
 
LTV
 
varies from
30
%
 
to
70
%, depending on the type and
 
location of the property, as well as
 
other factors. Collateral
 
sufficiency is often further
supported by personal
 
guarantees from related third
 
parties. The overall portfolio
 
is centrally assessed against a number
of stress scenarios to ensure that exposures
 
remain within predefined stress limits.
p
 
›
 
Refer to “Swiss mortgage
 
loan portfolio”
 
in this section
 
for more information
 
about LTV in our Swiss
 
mortgage portfolio
Lombard lending
 
Audited |
Lombard loans
 
are secured by pledges
 
of marketable securities,
 
guarantees and
 
other forms of collateral. Eligible
financial securities are
 
primarily liquid
 
and actively traded transferable
 
securities (such
 
as bonds and equities),
 
and other
transferable securities, such
 
as approved structured
 
products for which
 
regular prices are
 
available and the
 
issuer of the
security provides a market. To
 
a lesser degree, less liquid
 
collateral is also used.
We derive lending values by
 
applying discounts (haircuts) to the
 
pledged collateral’s market value.
 
Haircuts for marketable
securities are calculated to cover a
 
possible change in value over a
 
given close-out period and confidence level. Less liquid
or more volatile collateral will typically ha
 
ve larger haircuts.
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
104
 
We assess
 
concentration
 
and
 
correlation
 
risks across
 
collateral
 
posted
 
at a
 
counterparty
 
level, and
 
at a
 
divisional
 
level
across
 
counterparties.
 
We
 
also
 
perform
 
targeted
 
Group-wide
 
reviews
 
of
 
concentration.
 
Concentration
 
of
 
collateral
 
in
single securities,
 
issuers or
 
issuer groups,
 
industry sectors, countries,
 
regions or
 
currencies may result
 
in higher
 
risk and
reduced
 
liquidity.
 
In
 
such
 
cases,
 
the
 
lending
 
value
 
of
 
the
 
collateral,
 
margin
 
call
 
and
 
close-out
 
levels
 
are
 
adjusted
accordingly.
p
 
Exposures
 
and collateral
 
values
 
are monitored
 
daily, with
 
the aim
 
of ensuring
 
that the
 
credit exposure
 
is always
 
within
the established risk tolerance. A shortfall
 
occurs when the lending value drops below the exposure; if
 
it exceeds a
 
defined
trigger level,
 
a margin
 
call is
 
initiated,
 
requiring
 
the client
 
to provide
 
additional
 
collateral, reduce
 
the exposure
 
or take
other action to bring exposure
 
in line with the agreed lending value of the collateral. If a shortfall is not corrected
 
within
the requi
 
red period,
 
a close-out
 
is initiated,
 
through
 
which collateral
 
is liquidated,
 
open
 
derivative positions
 
are closed
and guarantees are called.
 
We
 
conduct
 
stress
 
testing
 
of
 
collateralized
 
exposures
 
to
 
simulate market
 
events
 
that
 
reduce
 
collateral
 
value,
 
increase
exposure of traded products,
 
or do both. For certain classes
 
of counterparties, limits
 
on such calculated stress exposures
are applied and controlled
 
at a counterparty level. Also, portfolio limits are applied across
 
certain businesses or collateral
types.
 
›
 
Refer to “Stress loss”
 
in this section
 
for more information
 
about our stress testing
Credit hedging
Audited |
We use single-name credit default swaps
 
(CDSs), credit-index CDSs,
 
bespoke protection and other
 
instruments to
actively manage credit
 
risk in the
 
Investment Bank and
 
Non-core and Legacy
 
Portfolio. The aim
 
is to reduce concentrations
of risk
 
from specific
 
counterparties, sectors
 
or portfolios
 
and, for
 
CCR, the
 
profit or
 
loss effect
 
arising from
 
changes in
credit valuation adjustments (CVAs).
We have
 
strict guidelines with regard
 
to taking
 
credit hedges into
 
account for credit
 
risk mitigation purposes. For
 
example,
when
 
monitoring
 
exposures
 
against counterparty
 
limits,
 
we
 
do
 
not
 
usually apply
 
certain credit
 
risk mitigants,
 
such
 
as
proxy
 
hedges
 
(credit
 
protection
 
on
 
a
 
correlated
 
but
 
different
 
name)
 
or
 
credit-index
 
CDSs,
 
to
 
reduce
 
counterparty
exposures. Buying
 
credit protection also creates
 
credit exposure
 
with regard to the protection
 
provider. We monitor
 
and
limit exposures
 
to credit protection
 
providers, and
 
also monitor
 
the effectiveness of
 
credit hedges
 
as part of
 
our overall
credit
 
exposures
 
to
 
the
 
relevant
 
counterparties.
 
Trading
 
with
 
such
 
counterparties
 
is
 
typically
 
collateralized.
 
For
 
credit
protection purchased to hedge the lending portfolio, this includes monitoring mismatches
 
between the maturity of credit
protection purchased
 
and the
 
maturity of the associated
 
loan. Such
 
mismatches result in
 
basis risk and
 
may reduce the
effectiveness of the
 
credit protection. Mismatches are
 
routinely reported to credit
 
officers and mitigating actions
 
are taken
when necessary.
p
 
›
 
Refer to “Note 10
 
Derivative instruments”
 
in the “Consolidated
 
financial statements”
 
section of
 
this report for more information
Mitigation of settlement risk
To
 
mitigate settlement
 
risk, we
 
reduce actual
 
settlement
 
volumes by
 
using multi
 
-lateral and
 
bi-lateral agreements
 
with
counterparties, including payment netting.
Foreign exchange transactions are our most significant source of
 
settlement risk. We are a member of Continuous Linked
Settlement (CLS),
 
an industry
 
utility
 
that provides
 
a multi
 
-lateral framework
 
to settle
 
transactions
 
on
 
a delivery-versus-
payment
 
basis,
 
thus
 
reducing
 
foreign-exchange-related
 
settlement
 
risk
 
relative
 
to
 
the
 
volume
 
of
 
business.
 
However,
mitigation
 
of
 
settlement
 
risk
 
through
 
CLS
 
and
 
other
 
means
 
does
 
not
 
fully
 
eliminate
 
credit
 
risk
 
in
 
foreign
 
exchange
transactions resulting from changes
 
in exchange rates prior to settlement, which is managed
 
as part of our overall credit
risk management of OTC derivatives.
 
Credit risk models
Basel III – A-IRB credit risk models
Audited |
We have developed tools and models
 
to estimate future credit losses that may be implicit in our current portfolio.
Exposures to individual counterparties are measured
 
using three generally accepted parameters: PD, EAD
 
and LGD. For a
given credit facility, the product of
 
these three parameters results in the expected loss
 
(the EL). These parameters are the
basis for the
 
majority of our
 
internal measures
 
of credit
 
risk, and
 
key inputs
 
for regulatory
 
capital calculation
 
under the
advanced internal ratings-based
 
(A-IRB) approach
 
of the Basel III
 
framework. We also
 
use models to derive
 
the portfolio
credit risk measures of EL, statistical loss
 
and stress loss.
p
 
›
 
Refer to the 31 December
 
2022 Pillar 3 Report,
 
available under
 
“Pillar 3 disclosures”
 
at
ubs.com/investors,
for more information
about the regulatory
 
capital calculation
 
under the advanced
 
internal ratings-based
 
approach
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
105
 
Key features of our
 
main credit risk models
Portfolio in scope
Asset class
Model
approach
Number of
main models
Main drivers
Number of
years of loss
data
1
Probability of
default
Sovereigns and central banks
Central governments and
central banks
Scorecard
1
Political, institutional and economic indicators
>10
Owner-occupied mortgages in
Switzerland and the US
Retail: residential
mortgages
Scorecard
2
Behavioral data, affordability relative to income,
property type, loan-to-value.
 
Separate models for
mortgages in Switzerland and the US
28
Income-producing real estate
mortgages
Retail: residential
mortgages,
 
Corporates: specialized
lending
Scorecard
1
Loan-to-value, debt service coverage,
 
financial data
(for large corporates only), behavioral data. Weights
of risk drivers differ between corporate
 
and private
clients
28
Lombard lending
Retail: other retail,
Corporates: other lending
Merton type
2
Separate models for structured margin lending and
standard Lombard. Key risk drivers for both
 
models:
loan-to-value, historical asset returns,
 
behavioral
data
13–16
Small and medium-sized
enterprises
Corporates: other lending
Scorecard
1
Financial data including balance sheet ratios and
profit and loss, behavioral data.
 
Weights of risk
drivers differ depending on the corporate
 
client sub-
segment
28
Credit cards in Switzerland
Retail: qualifying
revolving retail and other
retail,
 
Corporates: other lending
Scorecard
1
Client type and characteristics (revolver,
 
transactor,
new client, dormant client), and behavioral data
17
Banks
Banks and securities
dealers
Scorecard
4
Financial data including balance sheet ratios and
profit and loss. Separate models for banks
 
–
developed markets, banks –
 
emerging markets,
 
broker-dealers and investment banks,
 
and private
banks
15
Commodity traders
Corporates: specialized
lending
Scorecard
1
Financial data including balance sheet ratios and
profit and loss, as well as non-financial criteria
24
Aircraft financing
Corporates: other lending
Scorecard
1
Loan-to-value, AuM, strength
 
of legal framework of
source of wealth, and behavioral factors
16
Large corporates
Corporates: other lending
Scorecard /
market data
3
Financial data including balance sheet ratios and
profit and loss, and market data. Separate
 
rating
tools for corporates with publicly traded
 
and highly
liquid stocks (market intelligence tool), private
corporates, and leveraged corporates
15
Other portfolios
Corporates: other
lending,
Public-sector entities and
multi-lateral development
banks
Scorecard /
pooled rating
approach /
rating
template
10
Financial data and/or historical portfolio performance
for pooled ratings. Separate models
 
for hedge funds,
managed funds, private equity funds,
 
insurance
companies, commercial real estate loans,
 
debt REITs,
mortgage originators, public-sector entities
 
and
multi-lateral development banks / supranationals
15
Loss given default
Owner-occupied mortgages in
Switzerland and the US
Retail: residential
mortgages
Statistical
model
2
Loan-to-value, time since last valuation.
 
Separate
models for mortgages in Switzerland and the US
11–14
Income-producing real estate
mortgages
Retail: residential
mortgages, Corporates:
specialized lending
Statistical
model
1
Loan-to-value, time since last valuation,
 
property
type, location indicator
11
Lombard lending
Retail: other retail,
Corporates: other lending
Statistical
model,
simulation
2
Separate models for structured margin lending and
standard Lombard. Key risk drivers for both
 
models:
historical observed loss rates, liquidity
13–14
Small and medium-sized
enterprises
Corporates: other lending
Statistical
model
2
Separate models for mortgage and non-mortgage
LGDs. Mortgage models: loan-to-value,
 
time since
last valuation, property type,
 
location indicator. Non-
mortgage models: historical observed loss rates
11–17
Credit cards in Switzerland
Retail: qualifying
revolving retail and other
retail,
 
Corporates: other lending
Statistical
model
1
Collateral, accrued interests, client
 
characteristics.
17
Investment Bank – all
counterparties
Across the asset classes
Statistical
model
2
Counterparty and facility specific, including industry
segment, collateral, seniority, legal environment
 
and
bankruptcy procedures. Specific model for sovereign
LGDs based on econometric modeling of past default
events using GDP per capita, government debt, and
other quantitative and qualitative factors such as the
share of multi-lateral debt service, the
 
size of the
banking sector and institutional quality
>10
Exposure at default
Banking products
Across the asset classes
Statistical
model
3
Separate models based on exposure type (committed
credit lines, revocable credit lines, contingent
products)
>10
Traded products
Across the asset classes
Statistical
model
2
Product-specific market drivers,
 
e.g., interest rates.
Separate models for OTC derivatives,
 
ETDs and SFTs
that generate the simulation of risk factors used
 
for
the credit exposure measure
n/a
1 For sovereign and Investment
 
Bank PD models, the
 
length of internal portfolio
 
history is shown in “Number
 
of years of loss data.”
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
106
 
Audited |
 
Internal UBS rating scale
 
and mapping
 
of external ratings
Internal UBS rating
1-year PD range in %
Description
Moody’s Investors
Service mapping
S&P mapping
Fitch mapping
0 and 1
0.00–0.02
Investment grade
Aaa
AAA
AAA
2
0.02–0.05
Aa1 to Aa3
AA+ to AA–
AA+ to AA–
3
0.05–0.12
A1 to A3
A+ to A–
A+ to A–
4
0.12–0.25
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
5
0.25–0.50
Baa3
BBB–
BBB–
6
0.50–0.80
Sub-investment grade
Ba1
BB+
BB+
7
0.80–1.30
Ba2
BB
BB
8
1.30–2.10
Ba3
BB–
BB–
9
2.10–3.50
B1
B+
B+
10
3.50–6.00
B2
B
B
11
6.00–10.00
B3
B–
B–
12
10.00–17.00
Caa1 to Caa2
CCC+ to CCC
CCC+ to CCC
13
>17
Caa3 to C
CCC-
 
to C
CCC-
 
to C
Counterparty is in default
 
Default
Defaulted
D
D
p
 
Probability of default
PD
 
estimates the
 
likelihood of a
 
counterparty defaulting on
 
its contractual obligations over
 
the next
 
12
 
months, and
 
is
assessed using rating tools
 
tailored to the various categories of
 
counterparties. The “
 
Key features of our main
 
credit risk
models” table above gives
 
an overview of the approaches
 
used for our main asset
 
classes and presents
 
the main drivers
of
 
the
 
PD.
 
The
 
rating
 
tools
 
for
 
these
 
asset
 
classes
 
are
 
also
 
calibrated
 
to
 
our
 
internal credit
 
rating
 
scale (masterscale),
designed to ensure a consisten
 
t
 
assessment of default probabilities
 
across counterparties.
 
The ratings
 
of major
 
credit rating
 
agencies, and
 
their mapping
 
to our
 
masterscale and
 
internal PD
 
bands, are
 
shown in
the “Internal UBS rating scale and mapping of external ratings” table above. For
 
Moody’s and S&P, the mapping is based
on the long-term average of one-year default
 
rates available from these rating agencies, with Fitch ratings being mapped
to the equivalent
 
S&P ratings.
 
For each external
 
rating category,
 
the average default
 
rate is compared
 
with our
 
internal
PD bands to derive a periodically reviewed
 
mapping to our internal
 
rating scale.
Exposure at default
EAD is the amount we expect to be owed by a counterparty at the time of possible
 
default. We derive EAD from current
exposure to the counterparty and
 
possible future exposure
 
development.
The EAD of an on-balance sheet
 
loan is its notional
 
amount, while for
 
off-balance sheet commitments
 
that are not drawn,
credit conversion factors
 
(CCFs) are used
 
in order to obtain
 
an expected
 
on-balance sheet amount.
For traded products, we derive EAD by modeling the range of possible exposure outcomes at various points in time using
scenario and
 
statistical techniques.
 
We assess
 
the net
 
amount that
 
may be
 
owed to
 
us or
 
that we may
 
owe to
 
others, taking
into account the
 
effect of market
 
movements over the
 
potential time it
 
would take to close
 
out positions.
 
We
 
assess
 
exposures
 
where
 
there
 
is
 
a
 
material
 
correlation
 
between
 
the
 
factors
 
driving
 
the
 
credit
 
quality
 
of
 
the
counterparty and those driving the potential future value
 
of our traded products exposure (wrong-way risk), and we have
established specific controls to mitigate such
 
risks.
 
Loss given default
LGD is
 
the
 
magnitude
 
of the
 
likely loss
 
if there
 
is
 
a default.
 
Our
 
LGD estimates,
 
which consider
 
downturn
 
conditions,
include
 
loss
 
of
 
principal,
 
interest
 
and
 
other
 
amounts
 
less
 
recovered
 
amounts.
 
We
 
determine
 
LGD
 
based
 
on
 
the
 
likely
recovery
 
rate
 
of
 
claims
 
against
 
defaulted
 
counterparties,
 
which
 
depends
 
on
 
the
 
type
 
of
 
counterparty and
 
any
 
credit
mitigation due
 
to collateral
 
or guarantees.
 
Our estimates
 
are supported
 
by internal loss
 
data and
 
external information,
where available. If we hold
 
collateral, such as marketable securities
 
or a mortgage on
 
a property,
 
LTV
 
ratios are typically
a key
 
parameter in
 
determining LGD.
 
For risk-weighted
 
asset (RWA
 
)
 
calculation,
 
floors are
 
applied
 
to LGD
 
in line
 
with
regulation.
Expected loss
We use
 
the concept
 
of expected
 
loss to
 
quantify future
 
credit
 
losses that
 
may be
 
implicit in
 
our current
 
portfolio. The
expected loss for a given credit facility is a product of the three components described above, i.e., PD, EAD and LGD. We
aggregate the expected loss
 
for individual counterparties to derive expected
 
portfolio credit losses.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
107
 
IFRS 9 – ECL credit risk models
 
Expected credit loss
 
Expected credit loss (ECL)
 
is defined as the difference
 
between contractual cash flows
 
and those UBS
 
expects to receive,
discounted
 
at
 
the
 
effective
 
interest
 
rate
 
(EIR).
 
For
 
loan
 
commitments
 
and
 
other
 
credit
 
facilities
 
in
 
scope
 
of
 
ECL
requirements, expected cash shortfalls are determined
 
by considering expected future drawdowns. Rather than focusing
on
 
an average
 
through-the-cycle
 
(TTC)
 
expected
 
annual
 
loss,
 
the purpose
 
of
 
ECL
 
is to
 
estimate the
 
amount
 
of
 
losses
inherent in
 
a portfolio
 
based on
 
current conditions
 
and future
 
outlook (a
 
point-in-time
 
(PIT) measure),
 
whereby
 
such a
forecast
 
has to
 
include all
 
information
 
available without
 
undue
 
cost and
 
effort, and
 
address
 
multiple scenarios
 
where
there is perceived non
 
-linearity between changes
 
in economic conditions and
 
their effect on
 
credit losses. From
 
a credit
risk modeling perspective, ECL parameters
 
are generally derivations
 
of the factors assessed for regulatory Basel
 
III EL.
Comparison of Basel III EL and IFRS 9
 
ECL credit risk models
The IFRS 9 ECL concept has a number
 
of key differences
 
from our Basel III
 
credit risk models, both
 
in the loss estimation
process
 
and
 
the
 
result
 
thereof.
 
Most
 
notably,
 
regulatory
 
Basel III
 
EL
 
parameters
 
are
 
TTC
 
/ downturn
 
estimates, which
might
 
include
 
a
 
margin
 
of
 
conservatism,
 
while
 
IFRS 9
 
ECL
 
parameters
 
are
 
typically
 
PIT,
 
reflecting
 
current
 
economic
conditions and
 
future outlook.
 
The table below
 
summarizes the main differences.
 
Stage 1
 
and 2 ECL
 
expenses in 2022
were USD 29m
 
and respective
 
allowances and
 
provisions
 
as of 31
 
December 2022
 
were USD 526m.
 
This included
 
ECL
allowances and
 
provisions of
 
USD 485m
 
related to positions
 
under the
 
Basel III advanced
 
internal ratings-based
 
(A-IRB)
approach. Basel III EL for non
 
-defaulted positions increased by U
 
SD 37m to USD 956m.
›
 
Refer to “Note 1
 
Summary of material
 
accounting policies”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for
more information about
 
our accounting
 
policy for allowances
 
and provisions for
 
ECL including key
 
definitions relevant
 
for the ECL
calculation under
 
IFRS 9
The table below shows
 
the main differences between the two
 
expected loss measures.
 
Basel III EL (advanced internal
 
ratings-based approach)
IFRS 9 ECL
Scope
The Basel III A-IRB approach
 
applies to most credit risk
exposures. It includes transactions
 
measured at amortized
cost, at fair value through profit
 
or loss and at fair value
through OCI, including
 
loan commitments and financial
guarantees.
The IFRS 9 ECL calculation
 
mainly applies to financial assets
measured at amortized
 
cost and debt instruments measured at fair
value through OCI, as well as
 
loan commitments and financial
guarantees not at fair value
 
through profit or loss.
12-month versus
lifetime expected
loss
The Basel III A-IRB approach
 
takes into account expected
losses resulting from expected
 
default events occurring
within the next 12 months.
In the absence of a significant
 
increase in credit risk (SICR), a
maximum 12-month ECL is recognized
 
to reflect lifetime cash
shortfalls that will result
 
if a default event occurs in the 12 months
after the reporting
 
date (or a shorter period if the expected lifetime
is less). Once an SICR event has
 
occurred, a lifetime ECL is
recognized considering
 
expected default events over the life of the
transaction.
Exposure at default
(EAD)
EAD is the amount we expect a
 
counterparty to owe us at
the time of a possible default.
 
For banking products, EAD
equals book value as of the
 
reporting date; for traded
products, the vast majority of
 
EAD is modeled. EAD is
expected to remain
 
constant over a 12-month period. For
loan commitments, a credit
 
conversion factor is applied to
model expected future drawdowns
 
over the 12-month
period, irrespective of
 
the actual maturity of a particular
transaction. The credit
 
conversion factor includes downturn
adjustments.
EAD is generally calculated
 
on the basis of the cash flows that are
expected to be outstanding at the individual
 
points in time during
the life of the transaction,
 
discounted to the reporting date using
the effective interest rate.
 
For loan commitments, a credit
conversion factor is applied
 
to model expected future drawdowns
over the life of the transaction
 
without including downturn
assumptions. In both cases,
 
the time period is capped at 12
months, unless an SICR has
 
occurred.
Probability of
default
(PD)
PD estimates are determined
 
on a through-the-cycle (TTC)
basis. They represent
 
historical average PDs, taking into
account observed losses over a prolonged
 
historical period,
and therefore are
 
less sensitive to movements in the
underlying economy.
PD estimates will be determined
 
on a point-in-time (PIT) basis,
based on current
 
conditions and incorporating forecasts for
 
future
economic conditions at the reporting
 
date.
Loss given default
(LGD)
LGD includes prudential adjustments,
 
such as downturn LGD
assumptions and floors. Similar
 
to PD, LGD is determined on
a TTC basis.
LGD should reflect the
 
losses that are reasonably expected
 
and
prudential adjustments should
 
therefore not be applied. Similar to
PD, LGD is determined on
 
the basis of a PIT approach.
Use of scenarios
n / a
Multiple forward
 
-looking scenarios have to be taken into account
to determine a probability-weighted
 
ECL.
 
Further key aspects of credit risk models
Stress loss
We complement our statistical modeling approach with scenario-based stress loss measures. Stress tests are run regularly
to monitor potential effects
 
of extreme, but nevertheless
 
plausible, events on
 
our portfolios, under which
 
key credit risk
parameters are assumed to deteriorate substantially.
 
Where we consider it appropriate,
 
we apply limits on this
 
basis.
Stress scenarios and methodologies are tailored to portfolios’ natures, ranging from regionally focused to global systemic
events, and varying in time horizon.
 
›
 
Refer to “Stress testing”
 
in this section
 
for more information
 
about our stress
 
testing framework
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
108
 
Credit risk model confirmation
Our approach
 
to model
 
confirmation involves both
 
quantitative methods,
 
such as
 
monitoring compositional changes
 
in
portfolios and
 
results of
 
backtesting,
 
and
 
qualitative assessments,
 
such as
 
feedback
 
from users
 
on
 
model output
 
as a
practical indicator of a model’s performance
 
and reliability.
Material changes
 
in portfolio
 
composition
 
may invalidate
 
the conceptual
 
soundness
 
of a model.
 
We therefore
 
perform
regular analyses
 
of the
 
evolution of
 
portfolios to
 
identify such
 
changes in
 
the structure
 
and credit
 
quality of
 
portfolios.
This includes analyses of changes
 
in key attributes, changes in portfolio
 
concentration measures and
 
changes in RWA.
 
›
 
Refer to “Model risk
 
management” in
 
this section
 
for more information
 
Backtesting
We monitor the performance
 
of models by backtesting
 
and benchmarking them,
 
with model outcomes
 
compared with
actual results, based on
 
our internal experience
 
and externally observed
 
results. To
 
assess the predictive
 
power of credit
exposure models for
 
traded products, such
 
as OTC derivatives
 
and ETD products, we
 
statistically compare predicted future
exposure distributions at different
 
forecast horizons
 
with realized values.
 
For PD, we derive a predicted distribution of
 
the number of defaults. The observed number of defaults
 
is compared with
the upper tail of the predicted distribution.
 
If the observed number of defaults is higher
 
than a given upper tail quantile,
we conclude
 
there is
 
evidence
 
that
 
the model
 
may underpredict
 
the number
 
of defaults.
 
Based
 
on
 
historical long
 
-run
average
 
default
 
rates
 
and,
 
if required,
 
additional
 
margin
 
of
 
conservatism,
 
we
 
also derive
 
PD
 
calibration
 
targets and
 
a
lower boundary.
 
As a
 
general rule,
 
if the portfolio
 
average PD
 
lies below
 
the derived
 
lower boundary,
 
the rating tool
 
is
recalibrated.
 
For LGD, backtesting statistically
 
tests whether the mean
 
difference between
 
the observed and predicted
 
LGD is zero. If
the test fails, there is evidence
 
that our predicted LGD is too
 
low. In such cases, and
 
where these differences are outside
expectations, models are recalibrated.
 
Main credit risk models
 
backtesting
 
by regulatory asset
 
class
Length of time series
used for the calibration
(in years)
Actual rates in %
Estimated average rates
at the start of
2022 in %
Average of last
5 years
1
Min. of last
5 years
2
Max. of last
5 years
2
Probability of default
3
Central governments and central banks
>10
4
0.00
0.00
0.00
0.43
Banks and securities dealers
>10
0.03
0.00
0.13
0.65
Public-sector entities, multi-lateral development
 
banks
>10
0.05
0.00
0.21
0.23
Corporates: specialized lending
>10
0.30
0.11
0.60
1.26
Corporates: other lending
5
>10
0.28
0.20
0.34
0.44
Retail: residential mortgages
>20
0.20
0.14
0.25
0.49
Retail: qualifying revolving retail exposure
5
>10
0.71
0.63
0.79
0.83
Retail: other retail
5
>10
0.09
0.05
0.19
0.20
Loss given default
 
Central governments and central banks
>10
47.72
Banks and securities dealers
>10
53.38
Public-sector entities, multi-lateral development
 
banks
>10
27.40
Corporates: specialized lending
>10
2.16
0.00
9.51
22.80
Corporates: other lending
5
>10
15.92
5.09
24.68
38.24
Retail: residential mortgages
>20
0.45
0.00
0.72
22.75
Retail: qualifying revolving retail exposure
5
>10
24.88
20.27
27.42
47.87
Retail: other retail
5
>10
8.20
4.80
13.54
24.37
Credit conversion factors
Corporates
>10
21.65
6.93
38.08
38.10
1 Average
 
of all
 
observations over
 
the last
 
five years.
 
2 Minimum
 
/ maximum
 
annual average
 
of observations
 
in any
 
single year
 
from the
 
last five
 
years.
 
Yearly
 
averages are
 
only calculated
 
where five
 
or more
observations occurred
 
during that year.
 
3 Average
 
PD estimation is based
 
on all rated clients
 
in the portfolio.
 
4 Sovereign
 
PD model is calibrated
 
to UBS masterscale,
 
length of time
 
series shows span
 
of internal
history for this portfolio.
 
5 During
 
2021, a new PD
 
and LGD model
 
for credit cards went
 
live. Obligors
 
subject to this
 
model contribute to Corporates:
 
other lending, Retail:
 
qualifying revolving retail
 
exposure, and
Retail: other retail.
 
CCFs,
 
used
 
for
 
the
 
calculation of
 
EAD
 
for
 
undrawn
 
facilities with
 
corporate
 
counterparties,
 
are
 
dependent
 
on
 
several
credit
 
facility
 
contractual
 
dimensions.
 
We
 
compare
 
the
 
predicted
 
amount
 
drawn
 
with
 
observed
 
historical use
 
of
 
such
facilities by defaulted counterparties. If any statistically significant
 
deviation is observed, the relevant CCFs
 
are redefined.
 
The “Main credit
 
risk models backtesting
 
by regulatory asset
 
class” table above
 
compares the current
 
model calibration
for PD, LGD and CCFs with histo
 
rical observed values over the last five years.
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
109
 
Changes to models and
 
model parameters during the period
As
 
part
 
of
 
our
 
continuous
 
efforts
 
to
 
enhance
 
models
 
to
 
reflect
 
market
 
developments
 
and
 
newly
 
available
 
data,
 
we
updated several models in 2022.
In
 
Personal
 
&
 
Corporate
 
Banking
 
and
 
Global
 
Wealth
 
Management,
 
we
 
updated
 
the
 
PD
 
model
 
for
 
owner-occupied
residential properties
 
in Switzerland
 
and the
 
LGD model
 
for mortgages
 
in Switzerland.
 
In Global
 
Wealth Management,
we also recalibrated the
 
PD model for aircraft financing and implemented some model
 
updates for the standard Lombard
model.
In the Investment Bank, a
 
new PD model for private equity
 
counterparties was introduced,
 
and a redeveloped PD
 
model
for hedge funds
 
went live. Additionally, we have implemented a
 
new model for structured margin
 
lending.
For CCR models, we recalibrated the
 
market parameters in the SFT model,
 
enhancing and automating the process, which
is
 
run
 
on
 
a
 
daily
 
basis.
 
The
 
transition
 
from
 
LIBOR
 
required
 
a
 
number
 
of
 
model
 
changes
 
for
 
CCR
 
models,
 
for
 
traded
products to be able
 
to consume the new alternative reference rate curves.
Where required, changes
 
to models and model parameters were approved
 
by FINMA before being made.
›
 
Refer to “Risk-weighted
 
assets” in the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section of this
 
report for more
information about the
 
effect of the changes
 
to models and
 
model parameters
 
on credit risk RWA
 
Future credit risk-related regulatory
 
capital developments
In December 2017,
 
the Basel
 
Committee on
 
Banking
 
Supervision (the
 
BCBS) announced
 
the finalization
 
of the Basel
 
III
framework. In December 2022, the Swiss State
 
Secretariat for International Finance changed the expected date on which
the final Basel III guidelines are
 
to enter into
 
force, from 1
 
July 2024 to 1 January 2025.
 
The updated framework makes
a number of revisions
 
to the internal ratings
 
-based (IRB) approaches,
 
namely: (i) removing
 
the option of using
 
the A-IRB
approach
 
for
 
certain asset
 
classes
 
(including
 
large
 
and
 
medium-sized
 
corporate
 
clients,
 
and
 
banks
 
and
 
other financial
institutions);
 
(ii) placing
 
floors on
 
certain model
 
inputs
 
under the
 
IRB approach,
 
e.g., PD
 
and LGD;
 
and (iii)
 
introducing
various requirements to reduce
 
RWA variability
 
(e.g., for LGD).
The published
 
framework has
 
a number
 
of
 
requirements
 
that are
 
subject
 
to national
 
discretion.
 
Also,
 
revisions to
 
the
credit valuation adjustment (CVA) framework were published, including the
 
removal of the advanced
 
CVA approach. UBS
has a
 
close dialogue with
 
FINMA to discuss
 
in detail the
 
implementation objectives and
 
prepare for a
 
smooth transition
of the capital regime for credit risk.
 
›
 
Refer to “Capital
 
management objectives,
 
planning and activities”
 
in the “Capital, liquidity
 
and funding,
 
and balance sheet”
section of this report
 
for more information
 
about the development
 
of RWA
›
 
Refer to “Risk measurement”
 
in this section
 
for more information
 
about our approach
 
to model confirmation
 
procedures
›
 
Refer to the “Regulatory
 
and legal developments”
 
and “Risk factors”
 
sections of this
 
report for more information
Credit policies for distressed assets
Non-performing
Audited |
In line with
 
the regulatory definition,
 
we report
 
a claim as non-performing
 
when: (i) it is
 
more than 90
 
days past
due; (ii) it is subject to restructuring
 
proceedings, where
 
preferential conditions concerning
 
interest rates, subordination,
tenor,
 
etc. have been granted in order
 
to avoid default of the counterparty (forbearance); (iii)
 
the counterparty is subject
to
 
bankruptcy
 
/
 
enforced
 
liquidation
 
proceedings
 
in
 
any
 
form,
 
even
 
if
 
there
 
is
 
sufficient
 
collateral
 
to
 
cover
 
the
 
due
payment; or (iv) there is other evidence
 
that payment obligations will not
 
be fully met without recourse to collateral.
Default and credit-impaired
 
UBS
 
uses
 
a
 
single
 
definition
 
of
 
default
 
for
 
classifying
 
assets
 
and
 
determining
 
the
 
PD
 
of
 
its obligors
 
for
 
risk modeling
purposes.
 
The
 
definition
 
of
 
default
 
is
 
based
 
on
 
quantitative
 
and
 
qualitative
 
criteria.
 
A
 
counterparty
 
is
 
classified
 
as
defaulted when
 
material payments
 
of interest,
 
principal or
 
fees are
 
overdue
 
for more
 
than 90
 
days, or
 
more than
 
180
days for certain exposures
 
in relation to loans
 
to private and commercial
 
clients in Personal
 
& Corporate Banking
 
and to
private clients
 
of Global Wealth
 
Management Region Switzerland. UBS
 
does not consider
 
the general
 
90-day presumption
for default
 
recognition
 
appropriate
 
for those
 
portfolios,
 
given the
 
cure rates,
 
which show
 
that strict application
 
of the
90-day criterion would not accurately
 
reflect the inherent credit risk. Counterparties are also classified as
 
defaulted when:
bankruptcy,
 
insolvency
 
proceedings
 
or
 
enforced
 
liquidation
 
have
 
commenced;
 
obligations
 
have
 
been
 
restructured
 
on
preferential terms (forbearance); or
 
there is other
 
evidence that payment
 
obligations will not
 
be fully
 
met without recourse
to collateral. The latter may
 
be the case even
 
if, to date, all contractual
 
payments have been made when due. If one
 
claim
against a counterparty is defaulted on,
 
generally all claims against the counterparty are
 
treated as defaulted.
An
 
instrument
 
is
 
classified
 
as
 
credit-impaired
 
if
 
the
 
counterparty
 
is
 
classified
 
as
 
defaulted
 
and
 
/
 
or
 
the
 
instrument
 
is
identified as
 
purchased
 
or originated
 
credit-impaired
 
(POCI). An
 
instrument is
 
POCI if it
 
has been
 
purchased at
 
a deep
discount to
 
its carrying amount
 
following a
 
risk event of
 
the issuer or
 
originated with
 
a defaulted
 
counterparty. Once a
financial asset is classified as defaulted / credit-impaired (except POCI), it is reported
 
as a stage 3 instrument and remains
as such
 
unless all
 
past due
 
amounts
 
have been
 
rectified, additional
 
payments have
 
been made
 
on time,
 
the position
 
is
not classified as
 
credit-restructured,
 
and there
 
is general evidence
 
of credit recovery.
 
A three-month
 
probation period
 
is
applied
 
before
 
a
 
transfer back
 
to
 
stages 1
 
or
 
2
 
can
 
be
 
triggered.
 
However,
 
most
 
instruments
 
remain
 
in
 
stage 3
 
for
 
a
longer period. As of 31
 
December 2022, we had no instruments
 
classified as POCI on our books.
p
 
 
 
 
dev_UBS_AR_2022p138i0.jpg
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
110
 
Forbearance (credit restructuring)
 
Audited |
If payment default is
 
imminent or default has already occurred, we may
 
grant concessions to borrowers in financial
difficulties that we would
 
otherwise not consider
 
in the normal course of business,
 
such as offering
 
preferential interest
rates,
 
extending
 
maturity,
 
modifying
 
the
 
schedule
 
of
 
repayments,
 
debt
 
/
 
equity
 
swap,
 
subordination,
 
etc.
 
When
 
a
forbearance measure takes
 
place, each case is
 
considered individually and the
 
exposure is generally classified
 
as defaulted.
Forbearance
 
classification
 
remains
 
until
 
the
 
loan
 
is
 
repaid
 
or
 
written off,
 
non-preferential
 
conditions
 
are
 
granted
 
that
supersede the preferential conditions, or the counterparty
 
has recovered and the preferential
 
conditions no longer exceed
our risk tolerance.
Contractual
 
adjustments
 
when
 
there
 
is
 
no
 
evidence
 
of
 
imminent
 
payment
 
default,
 
or
 
where
 
changes
 
to
 
terms
 
and
conditions are within our
 
usual risk tolerance, are not considered
 
to be forborne.
p
 
Loss history statistics
An
 
instrument
 
is
 
classified
 
as
 
credit-impaired
 
if
 
the
 
counterparty
 
has
 
defaulted.
 
This
 
also
 
includes
 
credit-impaired
exposures for which no loss has occurred or for
 
which no allowance has been recognized (e.g., we expect to fully
 
recover
the exposures via collateral held).
 
Coverage ratios are
 
calculated for the
 
core loan
 
portfolio by taking
 
ECL allowances
 
and provisions
 
divided by
 
the gross
carrying amount
 
of the
 
exposures.
 
Core loan
 
exposure is
 
defined as
 
the sum
 
of Loans
 
and advances
 
to customers
 
and
Loans to financial advisors.
 
The total
 
combined
 
on-
 
and
 
off-balance sheet
 
coverage ratio
 
was at
 
21 basis
 
points as
 
of
 
31 December
 
2022,
 
1 basis
point lower than on 31 December 2021. The combined
 
stage 1 and 2 ratio of 10 basis points was unchanged compared
with 31 December 2021;
 
the stage 3 ratio was 22%, 2 percentage
 
points lower than as of 31
 
December 2021.
 
›
 
The majority of the
 
credit-impaired exposure
 
relates to loans and
 
advances in
 
our Swiss domestic
 
business. Refer to
 
“Note 9
Financial assets at
 
amortized cost
 
and other positions
 
in scope of
 
expected credit
 
loss measurement”
 
and “Note 19 Expected
 
credit
loss measurement” in
 
the “Consolidated
 
financial statements”
 
section of this
 
report for more information
 
about ECL measurement
and the calculation
 
of the coverage
 
ratio
›
 
Refer to “Note 13a
 
Other financial
 
assets measured
 
at amortized cost”
 
in the “Consolidated
 
financial
 
statements” section
 
of this
report for more details
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
111
 
Loss history statistics
USD m, except where indicated
31.12.22
31.12.21
31.12.20
31.12.19
31.12.18
Banking products, core
 
exposure on- and off-balance sheet, gross
1
491,556
499,839
479,176
408,331
410,117
of which: loans and advances to banks and customers
 
(gross)
402,801
414,099
396,049
340,003
338,000
Credit-impaired exposure, gross (stage 3)
2,455
2,610
3,778
3,113
3,154
of which: credit-impaired loans and advances to banks
 
and customers (stage 3)
2,012
2,150
2,945
2,309
2,300
Non-performing loans and advances to banks and customers
2,333
2,387
3,176
2,466
2,419
ECL allowances and provisions for credit losses
2
1,091
1,165
1,468
1,029
1,054
of which: core loan exposure (all stages)
1,043
1,132
1,426
987
1,003
of which: loans and advances to banks and customers
 
(all stages)
789
857
1,076
770
780
of which: loans and advances to banks and customers
 
(stage 3)
474
572
703
559
549
Write-offs (stage 3)
95
137
356
142
210
of which: write-offs for loans and advances to banks
 
and customers
74
118
348
122
192
Credit loss expense / (release)
3
29
(148)
694
78
118
Ratios
Credit-impaired loans and advances to banks and customers
 
as a percentage of loans and advances to
 
banks
and customers (gross)
0.5
0.5
0.7
0.7
0.7
Non-performing loans and advances to banks and customers
 
as a percentage of loans and advances to
 
banks
and customers (gross)
0.6
0.6
0.8
0.7
0.7
ECL allowances for loans and advances to banks
 
and customers as a percentage of loans and
 
advances to
banks and customers (gross)
0.2
0.2
0.3
0.2
0.2
Write-offs as a percentage of average loans and advances
 
to banks and customers (gross) outstanding
 
during
the period
0.0
0.0
0.1
0.0
0.1
1 Core loan exposure
 
is defined as
 
the sum
 
of Loans and
 
advances to
 
customers and Loans
 
to financial
 
advisors.
 
2 Includes
 
provisions for ECL
 
of guarantees
 
and loan commitments
 
and allowances
 
for securities
financing transactions.
 
3 Includes credit loss
 
expense / (release) for other
 
financial assets at amortized
 
cost, guarantees, loan
 
commitments,
 
and
 
securities financing transactions.
 
 
Market risk
 
Audited |
Main sources of market
 
risk
 
Market risks arise from both trading
 
and non-trading
 
business activities.
–
 
Trading market
 
risks
 
are mainly
 
connected with
 
primary debt
 
and
 
equity underwriting
 
and securities
 
and
 
derivatives
trading for
 
market-making and
 
client facilitation
 
in our
 
Investment Bank,
 
as well
 
as the
 
remaining
 
positions in
 
Non-
core
 
and
 
Legacy
 
Portfolio
 
in
 
Group
 
Functions
 
and
 
our
 
municipal
 
securities
 
trading
 
business
 
in
 
Global
 
Wealth
Management.
–
 
Non-trading market risks
 
arise predominantly
 
in the form
 
of interest
 
rate and foreign
 
exchange risks connected
 
with
personal
 
banking
 
and
 
lending
 
in
 
our
 
wealth
 
management
 
business,
 
our
 
Swiss
 
personal
 
and
 
corporate
 
banking
business, the Investment Bank’s
 
lending business, and treasury activities.
–
 
Group Treasury assumes market risks in the
 
process of managing interest rate risk, structural foreign exchange risk and
the Group’s liquidity and
 
funding profile, including high
 
-quality liquid assets (HQLA).
–
 
Equity
 
and
 
debt investments
 
can
 
also
 
give
 
rise
 
to
 
market risks,
 
as
 
can
 
some
 
aspects
 
of
 
employee
 
benefits,
 
such
 
as
defined benefit pension
 
schemes.
p
 
Audited |
Overview of measurement,
 
monitoring and management
 
techniques
 
–
 
Market risk limits
 
are set for
 
the Group,
 
the business
 
divisions, Group
 
Treasury and
 
Non-core
 
and Legacy Portfolio
 
at
granular levels in the various business
 
lines, reflecting the nature and
 
magnitude of the market risks.
–
 
Management value-at-risk (VaR)
 
measures exposures under the market risk framework,
 
including trading market risks
and some non-trading market
 
risks. Non-trading market
 
risks not
 
included in VaR are
 
also covered
 
in the
 
risks controlled
by Market & Treasury Risk Control,
 
as set out below.
–
 
Our primary portfolio measures of market
 
risk are liquidity-adjusted
 
stress (LAS) loss and VaR.
 
Both are common to all
business divisions and
 
subject to limits that are approved by the Board
 
of Directors (the BoD).
–
 
These measures
 
are complemented
 
by concentration
 
and granular
 
limits for general
 
and specific
 
market risk
 
factors.
Our trading businesses are subject to multiple market risk
 
limits, which take into account the extent of market
 
liquidity
and
 
volatility, available
 
operational
 
capacity, valuation
 
uncertainty,
 
and,
 
for our
 
single-name exposures,
 
issuer credit
quality.
–
 
Trading market
 
risks are
 
managed
 
on an
 
integrated basis
 
at portfolio
 
level. As
 
risk factor
 
sensitivities
 
change
 
due to
new
 
transactions,
 
transaction
 
expiries or
 
changes
 
in
 
market levels,
 
risk factors
 
are
 
dynamically rehedged
 
to
 
remain
within limits. We do not
 
generally seek to distinguish in the
 
trading portfolio between specific positions and associated
hedges.
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
112
 
–
 
Issuer risk
 
is
 
controlled
 
by limits
 
applied
 
at
 
business
 
division
 
level based
 
on
 
jump-to-zero
 
measures,
 
which estimate
maximum default exposure (the
 
default event loss assuming zero recovery).
–
 
Non-trading
 
foreign
 
exchange
 
risks
 
are
 
managed
 
under
 
market
 
risk
 
limits,
 
with
 
the
 
exception
 
of
 
Group
 
Treasury
management of consolidated capital activity.
 
 
Our Market &
 
Treasury
 
Risk Control
 
function applies
 
a holistic
 
risk framework,
 
setting
 
the appetite for
 
treasury-related
risk-taking activities across the
 
Group. Key elements
 
of the framework include
 
an overarching economic value sensitivity
limit, set by the BoD,
 
and the sensitivity of net interest income to changes in
 
interest rates targets,
 
set by the Group CEO.
Limits are also set
 
by the BoD to balance the effect
 
of foreign exchange movements on our CET1 capital and CET1 capital
ratio. Non-trading interest
 
rate and
 
foreign exchange risks
 
are included in
 
Group-wide statistical and stress
 
testing metrics,
which flow into our risk appetite framework.
Equity and debt investments are
 
subject to a range of risk controls, including preapproval of new investments
 
by business
management and
 
Risk Control
 
and
 
regular monitoring
 
and
 
reporting.
 
They are
 
also included
 
in Group
 
-wide statistical
and stress testing metrics.
p
 
›
 
Refer to “Currency
 
management” in
 
the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section of this
 
report for more
information about
 
Group Treasury’s management of foreign
 
exchange risks
 
›
 
Refer to the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section of this
 
report for more information
 
about the sensitivity
of our CET1 capital
 
and CET1 capital
 
ratio to currency
 
movements
Market risk stress loss
The
 
measurement
 
and
 
management
 
of
 
market
 
risks
 
include
 
an
 
extensive
 
set
 
of
 
stress
 
tests
 
and
 
scenario
 
analyses,
continuously evaluated to
 
ensure that losses
 
resulting from an
 
extreme yet plausible
 
event do not exceed
 
our risk appetite.
Liquidity-adjusted stress
LAS is our primary
 
stress loss measure for Group-wide market risk. The LAS framework captures the economic losses that
could
 
arise under
 
specified
 
stress scenarios.
 
This is
 
partially
 
done
 
by replacing
 
the standard
 
1-day
 
and
 
10-day
 
holding
period
 
assumptions
 
used
 
for
 
management
 
and
 
regulatory
 
VaR
 
with
 
liquidity-adjusted
 
holding
 
periods,
 
as
 
explained
below.
 
Shocks are
 
applied to
 
positions based
 
on expected
 
market movements
 
in the
 
liquidity-adjusted
 
holding
 
periods
resulting from the specified scenario.
The holding
 
periods used
 
for LAS
 
are calibrated
 
to reflect
 
the time
 
needed
 
to reduce
 
or hedge
 
the risk
 
of positions
 
in
each major risk factor in a stressed environment,
 
assuming maximum utilization of
 
the relevant position limits. We apply
minimum holding
 
periods,
 
regardless
 
of observed
 
liquidity
 
levels,
 
as
 
identification
 
of
 
and
 
reaction
 
to
 
a
 
crisis may
 
not
always be immediate.
The expected market movements are derived using historical market behavior (based on analysis of historical events) and
forward-looking analysis including
 
consideration of defined scenarios that have not
 
occurred in the past.
LAS-based
 
limits apply
 
at
 
several
 
levels:
 
Group,
 
business
 
division,
 
Group
 
Treasury,
 
and
 
Non-core
 
and
 
Legacy Portfolio;
business area; and sub-portfolio.
 
LAS is also the core market risk component of our combined stress
 
test framework and
therefore integral to our overall risk appetite
 
framework.
›
 
Refer to “Risk appetite
 
framework” in
 
this section for more
 
information
›
 
Refer to “Stress testing”
 
in this section
 
for more information
 
about our stress testing
 
framework
Value-at-risk
VaR definition
Audited |
VaR
 
is a
 
statistical measure
 
of market
 
risk,
 
representing
 
the potential
 
market
 
risk losses
 
over a
 
set time
 
horizon
(holding period) at an
 
established level of confidence. VaR
 
assumes no change in
 
the Group’s
 
trading positions over the
set time horizon.
We
 
calculate
 
VaR
 
daily.
 
The profit
 
or
 
loss
 
distribution
 
VaR
 
is
 
derived
 
from
 
our
 
internally developed
 
VaR
 
model, which
simulates returns
 
over the holding
 
period for
 
those risk factors
 
our trading
 
positions
 
are sensitive
 
to, and
 
subsequently
quantifies
 
the
 
profit
 
/
 
loss
 
effect
 
of
 
these
 
risk
 
factor
 
returns
 
on
 
trading
 
positions.
 
Risk
 
factor
 
returns
 
associated
 
with
general
 
interest
 
rate,
 
foreign
 
exchange
 
and
 
commodities
 
risk
 
factor
 
classes
 
are
 
based
 
on
 
a
 
pure
 
historical simulation
approach, using a five-year look-back window. Risk factor returns for
 
selected issuer-based risk factors (e.g., equity prices
and
 
credit
 
spreads)
 
are
 
split
 
into
 
systematic
 
and
 
residual
 
issuer-specific
 
components
 
using
 
a
 
factor
 
model
 
approach.
Systematic returns are based on historical simulation, and residual returns on a Monte Carlo simulation. VaR model profit
or loss distribution is derived from the sum
 
of systematic and residual
 
returns in such a way that we consistently
 
capture
systematic and
 
residual risk.
 
Correlations among
 
risk factors are implicitly
 
captured via
 
a historical
 
simulation approach.
When
 
modeling
 
risk
 
factor
 
returns,
 
we
 
consider
 
the
 
stationarity
 
properties
 
of
 
the
 
historical
 
time
 
series
 
of
 
risk
 
factor
changes.
 
Depending
 
on
 
the stationarity
 
properties
 
of
 
the risk
 
factors within
 
a given
 
factor class,
 
we
 
model the
 
factor
returns using absolute returns
 
or logarithmic returns. Risk factor return
 
distributions are updated
 
fortnightly.
Our VaR model does
 
not have full revaluation capability, but
 
we source full revaluation
 
grids and sensitivities from front-
office systems, enabling us
 
to capture material non-linear profit-or-loss effects.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
113
 
We use
 
a single
 
VaR
 
model for
 
both
 
internal management
 
purposes and
 
determining market
 
risk risk
 
-weighted
 
assets
(RWA),
 
although
 
we
 
consider
 
different
 
confidence
 
levels
 
and
 
time
 
horizons.
 
For
 
internal
 
management
 
purposes,
 
we
establish risk limits and measure
 
exposures using
 
VaR at a
95
% confidence level with a 1-day holding
 
period, aligned to
the
 
way
 
we
 
consider
 
the
 
risks
 
associated
 
with
 
our
 
trading
 
activities.
 
The
 
regulatory
 
measure
 
of
 
market
 
risk
 
used
 
to
underpin
 
the market
 
risk capital
 
requirement
 
under
 
Basel III
 
requires
 
a
 
measure
 
equivalent to
 
a
99
% confidence
 
level
using
 
a
 
10-day
 
holding
 
period.
 
To
 
calculate a
 
10-day
 
holding
 
period
 
VaR,
 
we use
 
10-day
 
risk factor
 
returns,
 
with
 
all
observations equally weighted.
Additionally, the portfolio populations
 
for management and
 
regulatory VaR are
 
slightly different. The
 
one for regulatory
VaR
 
meets
 
regulatory
 
requirements
 
for
 
inclusion
 
in
 
regulatory
 
VaR.
 
Management
 
VaR
 
includes
 
a
 
broader
 
range
 
of
positions.
 
For example,
 
regulatory
 
VaR
 
excludes
 
credit spread
 
risks
 
from
 
the securitization
 
portfolio, which
 
are
 
treated
instead under the securitization approach
 
for regulatory purposes.
We also
 
use stressed
 
VaR
 
(SVaR) for
 
the calculation
 
of market
 
risk RWA.
 
SVaR
 
uses
 
broadly
 
the
 
same methodology
 
as
regulatory VaR and is calculated
 
using the same population,
 
holding period
 
(10-day) and confidence level (
99
%). Unlike
regulatory VaR,
 
the historical
 
data set
 
for SVaR
 
is not
 
limited to
 
five years,
 
instead covering
 
the period
 
from 1
 
January
2007
 
to the
 
present.
 
In deriving
 
SVaR,
 
we seek
 
the largest
 
10-day
 
holding
 
period
 
VaR for
 
the current
 
Group
 
portfolio
across all one-year look-back windows
 
from 1 January 2007
 
to the present. SVaR is computed weekly.
p
 
›
 
Refer to the 31 December
 
2022 Pillar 3 Report,
 
available under
 
“Pillar 3 disclosures”
 
at
ubs.com/investors,
for more information
about the regulatory
 
capital calculation
 
under the advanced
 
internal ratings-based
 
approach
 
Management VaR for the period
We
 
continued
 
to
 
maintain
 
management
 
VaR
 
at
 
low
 
levels,
 
with
 
average
 
VaR
 
at
 
USD 11m,
 
unchanged
 
compared
with 2021.
 
Audited |
 
Management value
 
-at-risk (1-day,
 
95% confidence, 5 years
 
of historical data)
 
of our business
 
divisions and Group
Functions by general
 
market risk type
1
For the year ended
 
31.12.22
USD m
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Min.
2
8
4
2
2
Max.
17
18
9
11
7
Average
6
10
5
3
3
31.12.22
6
10
4
3
3
Total management VaR,
 
Group
6
18
11
9
Average (per business division and risk
 
type)
Global Wealth Management
1
2
1
1
0
1
1
0
0
Personal & Corporate Banking
0
0
0
0
0
0
0
0
0
Asset Management
0
0
0
0
0
0
0
0
0
Investment Bank
6
17
10
8
6
9
5
3
3
Group Functions
3
5
4
5
1
4
3
1
0
Diversification effect
2,3
(5)
(5)
(1)
(3)
(4)
(1)
0
For the year ended
 
31.12.21
USD m
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Min.
1
7
5
1
2
Max.
35
13
11
9
5
Average
7
9
7
3
3
31.12.21
8
11
7
6
3
Total management VaR,
 
Group
4
36
11
12
Average (per business division and risk type)
Global Wealth Management
1
3
1
2
0
1
2
0
0
Personal & Corporate Banking
0
0
0
0
0
0
0
0
0
Asset Management
0
0
0
0
0
0
0
0
0
Investment Bank
3
36
11
11
7
9
7
3
3
Group Functions
4
8
5
4
0
4
4
1
0
Diversification effect
2,3
(6)
(5)
0
(5)
(5)
(1)
0
1 Statistics at individual
 
levels may not be
 
summed to deduce
 
the corresponding aggregate
 
figures. The
 
minima and maxima for
 
each level
 
may well occur on different
 
days, and likewise,
 
the VaR for each
 
business
line or risk type, being driven by the extreme
 
loss tail of the corresponding distribution
 
of simulated profits and losses for that business line
 
or risk type, may well
 
be driven by different days in the historical time series,
rendering invalid the simple
 
summation of figures to arrive
 
at the aggregate total.
 
2 Difference between the sum
 
of the standalone VaR for
 
the business divisions and
 
Group Functions and
 
the VaR for the Group
 
as
a whole.
 
3 As the minima and
 
maxima for different business
 
divisions and Group
 
Functions occur on different
 
days, it is not meaningful to
 
calculate a portfolio
 
diversification effect.
p
 
 
 
 
dev_UBS_AR_2022p142i0.jpg
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
114
 
VaR limitations
Audited |
Actual realized market risk losses may
 
differ from those
 
implied by VaR for a
 
variety of reasons.
–
 
VaR is calibrated to a specified level of
 
confidence and may not indicate potential
 
losses beyond
 
this confidence level.
–
 
The
 
1-day
 
time horizon
 
used
 
for VaR
 
for
 
internal
 
management
 
purposes
 
(10-day
 
for
 
regulatory
 
VaR)
 
may not
 
fully
capture market risk of positions that cannot
 
be closed out or hedged
 
within the specified period.
–
 
In
 
some
 
cases,
 
VaR
 
calculations
 
approximate
 
the
 
effect
 
of
 
changes
 
in
 
risk
 
factors
 
on
 
the
 
values
 
of
 
positions
 
and
portfolios. This may happen due
 
to the number of risk factors included in the VaR
 
model needing
 
to be limited.
 
–
 
Effects
 
of
 
extreme
 
market
 
movements
 
are
 
subject
 
to
 
estimation
 
errors,
 
which
 
may
 
result
 
from
 
non-linear
 
risk
sensitivities,
 
and
 
the
 
potential
 
for
 
actual
 
volatility
 
and
 
correlation
 
levels
 
to
 
differ
 
from
 
assumptions
 
implicit in
 
VaR
calculations.
–
 
Using a
 
five-year window
 
means sudden
 
increases in market
 
volatility will
 
tend not
 
to increase
 
VaR as
 
quickly as
 
the
use of
 
shorter historical
 
observation periods,
 
but such
 
increases will
 
affect VaR
 
for a
 
longer period
 
of time.
 
Similarly,
after periods of increased volatility,
 
as markets stabilize, VaR
 
predictions will remain
 
more conservative for a period
 
of
time influenced by the length of
 
the historical observation period.
 
 
SVaR is subject
 
to the limitations noted
 
for VaR above,
 
but the use of on
 
e-year data sets avoids the smoothing
 
effect of
the five-year data
 
set used for VaR and the absence
 
of the five-year window gives
 
a longer history
 
of potential loss events.
Therefore, although
 
the significant
 
period of
 
stress during
 
the 2007
 
–2009
 
financial crisis
 
is no
 
longer
 
contained in
 
the
historical five-year period used for management and regulatory
 
VaR, SVaR continues to use that data. This approach aims
to reduce the procyclicality of the
 
regulatory capital
 
requirements for market risks.
We recognize
 
that no
 
single measure
 
can encompass
 
all risks
 
associated
 
with a
 
position
 
or portfolio.
 
We use
 
a set
 
of
metrics with
 
both
 
overlapping
 
and
 
complementary
 
characteristics
 
to
 
create
 
a
 
holistic
 
framework
 
that
 
aims
 
to
 
ensure
material completeness of risk
 
identification and
 
measurement. As a
 
statistical aggregate risk
 
measure, VaR
 
supplements
our liquidity-adjusted stress and comprehensive
 
stress testing frameworks.
We also have a framework to identify and
 
quantify potential risks not fully captured
 
by our VaR model
 
and refer to such
risks as risks
 
not in
 
VaR. The
 
framework underpins
 
these potential
 
risks with regulatory
 
capital, calculated
 
as a multiple
of regulatory VaR and
 
stressed VaR.
p
 
Backtesting of VaR
VaR
 
backtesting is a
 
performance measurement
 
process in
 
which a
 
1-day VaR
 
prediction
 
is compared
 
with the realized
1-day profit or
 
loss (P&L). We
 
compute backtesting VaR
 
using a 99% confidence
 
level and 1-day
 
holding period
 
for the
regulatory VaR population.
 
Since 99% VaR at UBS is defined as a risk measure that operates on
 
the lower tail of the P&L
distribution,
 
99%
 
backtesting
 
VaR
 
is a
 
negative
 
number.
 
Backtesting
 
revenues
 
exclude
 
non-trading
 
revenues,
 
such as
valuation
 
reserves,
 
fees
 
and
 
commissions,
 
and
 
revenues
 
from
 
intraday
 
trading,
 
so
 
as
 
to
 
provide
 
for
 
a
 
like-for-like
comparison.
 
A
 
backtesting
 
exception
 
occurs
 
when
 
backtesting
 
revenues
 
are
 
lower
 
than
 
the
 
previous
 
day’s
backtesting VaR.
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
115
 
Statistically, given the 99% confidence level, two or three
 
backtesting exceptions a year can be expected. More than four
exceptions could
 
indicate that
 
the VaR
 
model is
 
not performing
 
appropriately, as
 
could
 
too few
 
exceptions over
 
a long
period. However,
 
as noted
 
for VaR
 
limitations above,
 
a sudden
 
increase (or
 
decrease) in
 
market volatility
 
relative to
 
the
five-year window could lead
 
to a higher (or lower) number
 
of exceptions. Therefore, Group
 
-level backtesting exceptions
are
 
investigated,
 
as
 
are
 
exceptional
 
positive
 
backtesting
 
revenues,
 
with
 
the
 
results
 
reported
 
to
 
senior
 
business
management, the
 
Group
 
CRO and
 
the Group
 
Chief Market
 
& Treasury
 
Risk Officer.
 
Internal and
 
external auditors
 
and
relevant regulators are also informed
 
about backtesting exceptions.
In the
 
“Group:
 
development of
 
regulatory backtesting
 
revenues
 
and
 
actual trading
 
revenues
 
against
 
backtesting VaR”
chart above,
 
the asymmetry between the negative and
 
positive tails is due to the long gamma risk profile historically run
in the Investment Bank. The actual
 
trading revenues include backtesting
 
and intraday revenues.
The number
 
of negative
 
backtesting
 
exceptions within
 
a 250-business
 
-day window
 
decreased to
 
one from
 
four by
 
the
end
 
of
 
2022.
 
The
 
Swiss
 
Financial
 
Market
 
Supervisory
 
Authority
 
(FINMA)
 
VaR
 
multiplier
 
derived
 
from
 
backtesting
exceptions for market risk RWA was unchanged
 
compared with the prior year, at 3.0.
VaR model confirmation
As
 
well
 
as
 
for
 
regulatory-purposes
 
backtesting
 
described
 
above,
 
we
 
conduct extended
 
backtesting
 
for
 
internal model
confirmation purposes. This
 
includes observing model
 
performance across
 
the entire P&L
 
distribution (not just
 
the tails),
and at multiple levels within the business
 
division hierarchies.
›
 
Refer to “Risk measurement”
 
in this section
 
for more information
 
about our approach
 
to model confirmation
 
procedures
VaR model developments in 2022
Audited |
In the fourth
 
quarter of 2022,
 
we made an
 
upgrade to
 
our credit spread
 
factor model,
 
in which
 
we significantly
increased the
 
coverage
 
of single
 
-name-issuer bond
 
spread curves.
  
The resulting
 
RWA
 
decrease was
 
offset by
 
an RWA
increase arising from the introduction
 
of a FINMA-agreed temporary
 
measure.
 
p
 
Future market risk-related regulatory capital
 
developments
 
In January 2019, the Basel Committee on Banking
 
Supervision (the BCBS) published the final standards on
 
the minimum
capital requirements
 
for market risk
 
(the Fundamental
 
Review of the
 
Trading
 
Book). In
 
December 2022,
 
the Swiss State
Secretariat for
 
International Finance
 
changed the
 
expected date
 
on which
 
the final
 
Basel III guidelines
 
are to
 
enter into
force,
 
from
 
1
 
July 2024
 
to
 
1
 
January
 
2025.
 
As
 
a
 
result,
 
the
 
Swiss
 
implementation
 
timeline
 
would
 
be
 
aligned
 
to
 
the
currently expected implementation
 
timeline in the EU.
Key elements of the revised market
 
risk framework include: (i)
 
changes to the internal model-based
 
approach, including
changes to
 
the model
 
approval and performance
 
measurement process;
 
(ii) changes
 
to the standardized
 
approach with
the aim of it
 
being a credible fallback method for
 
an internal model-based approach; and (iii) a revised boundary
 
between
trading book and banking book. UBS maintains a close dialogue with
 
FINMA to discuss the implementation objectives in
more detail and to provide
 
a smooth transition of the capital regime for market
 
risk.
In September 2021
 
,
 
FINMA mandated
 
that UBS
 
hold an
 
RWA add-on
 
for the omission
 
of time decay
 
in regulatory VaR
and SVaR. The add-on reflects
 
the outcome of discussions with FINMA regarding our
 
regulatory VaR model, which started
in late 2019. The integration of time decay into the regulatory VaR
 
model, which would replace the add-on, is subject to
further discussions
 
between FINMA
 
and UBS.
 
The integration
 
of time decay
 
into regulatory
 
VaR is
 
expected to
 
become
effective in 2023. The
 
FINMA-agreed temporary measure related to
 
the credit spread factor
 
model and
 
the add-on related
to time decay are expected to be
 
removed with the integration of
 
time decay into regulatory VaR.
›
 
Refer to “Risk-weighted
 
assets” in the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section of this
 
report for more
information about the
 
development of
 
RWA including the regulatory
 
add-on
›
 
Refer to “Risk measurement”
 
in this section
 
for more information
 
about our approach
 
to model confirmation
 
procedures
›
 
Refer to the “Regulatory
 
and legal developments”
 
and “Risk factors”
 
sections of this
 
report for more information
Interest rate risk in the
 
banking book
Sources of interest rate risk in the banking
 
book
 
Audited |
Interest rate risk
 
in the banking
 
book (IRRBB)
 
arises from balance
 
sheet positions
 
such as
 
Loans and
 
advances to
banks, Loans and
 
advances to customers, Financial assets
 
at fair value not held
 
for trading,
 
Financial assets measured at
amortized cost, Customer deposits,
 
Debt issued measured
 
at amortized cost,
 
and derivatives, including
 
those subject to
hedge
 
accounting.
 
Fair value
 
changes
 
to these
 
positions
 
may affect
 
other
 
comprehensive
 
income (OCI)
 
or the
 
income
statement, depending on
 
their accounting treatment.
 
Our largest
 
banking
 
book interest
 
rate exposures
 
arise from
 
customer deposits
 
and lending
 
products in
 
Global Wealth
Management and Personal & Corporate Banking, as well as from debt issuance, liquidity buffers and interest rate hedges
in Group Treasury. The inherent interest rate risks stemming from Global Wealth Management and
 
Personal & Corporate
Banking are
 
generally transferred
 
to Group
 
Treasury, to manage
 
them centrally together
 
with our
 
modeled interest
 
rate
duration assigned to equity,
 
goodwill and real estate. This makes the netting of interest rate risks across different sources
possible,
 
while leaving the
 
originating businesses with commercial
 
margin and volume management. The residual interest
rate risk is mainly hedged with interest rate swaps, to the vast majority of which we apply hedge accounting.
 
Short-term
exposures and most of
 
our HQLA classified
 
as Financial assets
 
at fair value not
 
held for
 
trading are hedged with derivatives
accounted for on a mark-to-market basis. Long-term fixed-rate debt issued
 
and HQLA hedged with external interest rate
swaps are designated
 
in fair value hedge accounting
 
relationships.
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
116
 
Risk management and governance
IRRBB is measured
 
using several metrics, the most relevant of which
 
are the following.
–
 
Economic value of
 
equity (EVE) sensitivity
 
to yield curve
 
moves is calculated
 
as changes in
 
the present value
 
of future
cash
 
flows
 
irrespective
 
of
 
accounting
 
treatment.
 
They
 
are
 
also
 
the
 
key
 
risk
 
factors
 
for
 
statistical
 
and
 
stress-based
measures,
 
e.g., value-at-risk and stress scenarios,
 
as well as the regulatory interest rate scenarios.
 
These are measured
and
 
reported
 
daily.
 
The
 
regulatory
 
IRRBB
 
EVE
 
exposure
 
is
 
the
 
most
 
adverse
 
regulatory interest
 
rate
 
scenario
 
that
 
is
netted
 
across
 
currencies.
 
It
 
excludes
 
the
 
sensitivity
 
from
 
additional
 
tier 1
 
(AT1)
 
capital instruments
 
(as
 
per
 
specific
FINMA requirements)
 
and
 
the modeled
 
interest rate
 
duration
 
assigned
 
to equity,
 
goodwill and
 
real estate.
 
UBS
 
also
applies granular internal interest rate shock
 
scenarios to its banking
 
book positions to monitor its specific risk profile.
 
–
 
Net
 
interest
 
income
 
(NII)
 
sensitivities
 
to
 
yield curve
 
moves
 
are
 
calculated
 
as
 
changes
 
of
 
baseline NII
 
over
 
a
 
set
 
time
horizon, which
 
we internally compute
 
by assuming
 
interest rates in
 
all currencies
 
develop according
 
to their market-
implied forward rates and assuming
 
constant business volumes and
 
no specific management actions.
 
The sensitivities
are
 
measured
 
and
 
reported
 
monthly.
 
Our
 
Pillar 3
 
disclosure
 
(as
 
per
 
specific
 
FINMA
 
requirements)
 
excludes
 
the
contribution from cash held at central banks.
We actively
 
manage IRRBB
 
,
 
with the
 
aim of
 
reducing
 
the volatility
 
of
 
NII subject
 
to
 
limits and
 
triggers
 
for EVE
 
and
 
NII
exposure at consolidated and
 
significant legal entity levels.
The Group Asset and Liability Committee (ALCO) and, where relevant, ALCOs at a legal entity level perform independent
oversight over the management of IRRBB,
 
which is also subject to Group
 
Internal Audit and model governance.
›
 
Refer to “Group Internal
 
Audit” in the “Corporate
 
governance”
 
section of this report
 
and to “Risk measurement”
 
in this section for
more information
Key modeling assumptions
The cash
 
flows from
 
customer deposits
 
and lending
 
products used
 
in calculation
 
of EVE
 
sensitivity exclude
 
commercial
margins and
 
other spread
 
components, are
 
aggregated by
 
daily time
 
buckets and
 
are discounted
 
using risk-free
 
rates.
Our external issuances are discounted using UBS’s senior debt curve, and capital instruments are modeled to the first call
date. NII sensitivity,
 
which includes
 
commercial
 
margins, is
 
calculated over
 
a one-year
 
time horizon,
 
assuming constant
balance sheet structure and
 
volumes, and considers embedded
 
interest rate options.
The average
 
repricing maturity of
 
non-maturing deposits and loans is
 
determined via
 
target replication portfolios
 
designed
to protect
 
product margins. Optimal replicating portfolios
 
are determined at
 
granular currency-
 
and product-specific levels
by simulating and applying a
 
real-world market rate model to historically
 
calibrated client rate and volume models.
We use
 
an econometric
 
prepayment model
 
to forecast
 
prepayment rates
 
on US
 
mortgage loans
 
in UBS
 
Bank USA
 
and
agency mortgage-backed securities (MBSs) held in various liquidity portfolios of UBS Americas Holding LLC consolidated.
These
 
prepayment
 
rates
 
are
 
used
 
to
 
forecast
 
both
 
mortgage
 
loan
 
and
 
MBS
 
balances
 
under
 
various
 
macroeconomic
scenarios.
 
The
 
prepayment
 
model
 
is
 
used
 
for
 
a
 
variety
 
of
 
purposes,
 
including
 
risk management
 
and
 
regulatory
 
stress
testing. Swiss mortgages and fixed-term
 
deposits generally do not
 
carry similar optionality, due to
 
prepayment and early
redemption penalties.
p
 
Effect of interest rate changes on
 
shareholders’ equity and CET1
 
capital
The “Accounting
 
and capital effect
 
of changes
 
in interest rates”
 
table below
 
shows the
 
effects on
 
shareholders’
 
equity
and CET1 capital
 
of gains and
 
losses from changes in
 
interest rates in the
 
main banking book positions. We
 
use derivatives
to hedge
 
interest rate
 
risks in
 
the banking
 
book and
 
these reflect
 
changes
 
in interest
 
rates as
 
an immediate
 
fair value
gain or loss, recognized
 
either in the income statement or through OCI.
 
Where hedged items are accrual accounted
 
,
 
we
aim to minimize accounting
 
asymmetries by applying hedge
 
accounting to reflect the economic hedge
 
relationship.
In a rising
 
rate scenario, we
 
would have
 
an initial decrease
 
in shareholders’
 
equity as a
 
result of fair
 
value losses on
 
our
derivatives recognized in OCI. This
 
would be compensated over time by increased NII for higher
 
interest rates. The effect
on CET1 capital would be much lower as gains and losses on interest rate swaps designated as
 
cash flow hedges are not
recognized for regulatory capital purposes.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
117
 
Accounting and capital
 
effect of changes
 
in interest rates
1
Recognition
Shareholders’ equity
CET1 capital
Timing
Income statement / OCI
Gains
Losses
Gains
Losses
Loans and deposits at amortized cost
2,3
Gradual
Income statement
l
l
l
l
Other financial assets and liabilities measured at amortized cost
2
Gradual
Income statement
l
l
l
l
Debt issued measured at amortized cost
2,3
Gradual
Income statement
l
l
l
l
Receivables and payables from securities financing
 
transactions
2
Gradual
Income statement
l
l
l
l
Financial assets at fair value not held for trading
Immediate
Income statement
l
l
l
l
Financial assets at fair value through
 
other comprehensive income
Immediate
OCI
l
l
l
Derivatives designated as cash flow hedges
Immediate
OCI
4
l
l
Derivatives designated as fair value hedges
5
Immediate
Income statement
l
l
l
l
Derivatives transacted as economic hedges
Immediate
Income statement
l
l
l
l
1 Refer to the “Reconciliation of IFRS equity to Swiss SRB common equity
 
tier 1 capital” table in the “Capital, liquidity and funding,
 
and balance sheet” section
 
of this report for more information about the differences
between shareholders’ equity
 
and CET1 capital.
 
2 For fixed
 
-rate financial instruments,
 
changes in interest
 
rates affect the income
 
statement when
 
these instruments roll
 
over and reprice.
 
3 For hedge
 
accounted
items, a fair value adjustment is applied
 
in line with the treatment of the hedging
 
derivatives.
 
4 Excluding hedge ineffec
 
tiveness that is recognized in the income statement
 
in accordance with IFRS.
 
5 The fair value
of the derivatives is offset by the fair value adjustment of the hedged items.
 
Under the fair value hedge program applied to cro
 
ss-currency swaps and foreign currency debt, the
 
foreign currency basis spread is excluded
from the hedge designation
 
and accounted
 
for through OCI, which is
 
included in CET1.
 
Economic value of equity sensitivity
Audited |
The EVE
 
sensitivity in the
 
banking book
 
to a +1-basis-point
 
parallel shift in
 
yield curves was
 
negative USD
25.0
m
as
 
of
 
31 December
 
2022,
 
compared
 
with
 
negative
 
USD
29.9
m
 
as
 
of
 
31 December
 
2021,
 
the
 
change
 
predominantly
driven by
 
rising market
 
rates.
 
This exclude
 
s
 
the sensitivity
 
of USD 3.
 
4m
 
from additional
 
tier 1 (AT1)
 
capital instruments
(as per specific FINMA requirements)
 
in contrast to general Basel Committee
 
on Banking Supervision
 
(BCBS) guidance.
The majority of
 
our interest
 
rate risk in
 
the banking
 
book is
 
a reflection
 
of the net
 
asset duration
 
that we run
 
to offset
our modeled
 
sensitivity of
 
net USD
19.6
m (31 December
 
2021:
 
USD
22.1
m) assigned
 
to our
 
equity,
 
goodwill and
 
real
estate, with the aim of generating a stable NII contribution. Of this, USD
14.0
m and USD
4.8
m are attributable to the US
dollar and the Swiss franc portfolios, respectively
 
(31 December 2021:
 
USD
15.6
m and USD
5.5
m, respectively).
In addition
 
to the
 
sensitivity mentioned
 
above,
 
we calculate
 
the six
 
interest rate
 
shock
 
scenarios prescribed
 
by FINMA.
The “Parallel
 
up”
 
scenario, assuming
 
all positions
 
were fair
 
valued, was
 
the most
 
severe and
 
would have
 
resulted in
 
a
change in EVE of
 
negative USD
4.6
bn, or
7.9
%, of
 
our tier 1 capital (31 December
 
2021: negative USD
6.0
bn, or
10.0
%),
which is well below
 
the
15
% threshold as per the
 
BCBS supervisory outlier
 
test for high
 
levels of interest rate
 
risk in the
banking book.
 
The immediate effect on our tier 1 capital in the “Parallel up” scenario as of 31
 
December 2022 would have been only a
decrease of USD
0.4
bn, or
0.6
% (31 December 2021: USD
1.1
bn, or
1.8
%), reflecting the fact that
 
the vast majority of
our banking
 
book is accrual
 
accounted or
 
subject to hedge
 
accounting. The
 
“Parallel up”
 
scenario would subsequently
have a positive effect on NII,
 
assuming a constant balance sheet.
UBS
 
also
 
applies granular
 
internal
 
interest
 
rate shock
 
scenarios
 
to
 
its banking
 
book positions
 
to
 
monitor
 
the
 
banking
book’s specific risk profile.
 
Net interest income sensitivity
The main NII
 
sensitivity in the
 
banking
 
book resides
 
in Global
 
Wealth Management
 
and Personal
 
& Corporate Banking.
Our
 
investment of
 
equity
 
portfolio
 
has
 
a long
 
duration
 
and
 
Group
 
Treasury
 
actively
 
manages
 
the
 
residual
 
IRRBB.
 
This
sensitivity is assessed
 
using a
 
number of
 
scenarios assuming
 
parallel and non
 
-parallel shifts in
 
yield curves, with
 
various
degrees of
 
severity, and
 
we have set
 
and monitor thresholds
 
for the NII sensitivity
 
to immediate parallel
 
shocks of
 
–200
and +200 basis points under
 
the assumption of constant balance sheet volume
 
and structure.
p
 
›
 
Refer to the “Group
 
performance”
 
section of this
 
report for more information
 
about sensitivity
 
to interest rate
 
movements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
118
 
Audited |
 
Interest rate risk –
 
banking book
31.12.22
USD m
Effect on EVE
1
 
– FINMA
Effect on EVE
1
 
– BCBS
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 (AT1) capital
instruments
Total
+1 bp
 
(4.0)
 
(0.7)
 
0.1
 
(20.4)
 
(0.1)
 
(25.0)
 
3.4
 
(21.6)
Parallel up
2
 
(574.6)
 
(117.0)
 
33.2
 
(3,944.3)
 
(26.3)
 
(4,629.1)
 
649.7
 
(3,979.4)
Parallel down
2
 
642.3
 
148.1
 
(45.4)
 
4,074.9
 
21.9
 
4,841.7
 
(699.8)
 
4,141.9
Steepener
3
 
(257.0)
 
(92.8)
 
(28.2)
 
(1,027.4)
 
(3.3)
 
(1,408.7)
 
(46.8)
 
(1,455.5)
Flattener
4
 
145.4
 
74.1
 
32.6
 
94.4
 
(2.5)
 
344.0
 
189.9
 
533.9
Short-term up
5
 
(83.0)
 
34.3
 
42.2
 
(1,519.0)
 
(13.8)
 
(1,539.2)
 
438.6
 
(1,100.6)
Short-term down
6
 
86.9
 
(33.1)
 
(42.5)
 
1,658.5
 
13.4
 
1,683.1
 
(455.5)
 
1,227.6
31.12.21
USD m
Effect on EVE
1
 
– FINMA
Effect on EVE
1
 
– BCBS
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 (AT1) capital
instruments
Total
+1 bp
 
(5.1)
 
(1.1)
 
0.1
 
(23.5)
 
(0.4)
 
(29.9)
 
4.5
 
(25.4)
Parallel up
2
 
(724.1)
 
(196.6)
 
33.3
 
(5,068.3)
 
(85.8)
 
(6,041.4)
 
853.4
 
(5,188.0)
Parallel down
2
 
806.3
 
231.9
 
(32.8)
 
4,124.2
 
19.9
 
5,149.5
 
(928.4)
 
4,221.1
Steepener
3
 
(254.3)
 
(69.0)
 
(31.1)
 
(821.4)
 
(3.7)
 
(1,179.6)
 
(9.6)
 
(1,189.2)
Flattener
4
 
117.1
 
37.4
 
35.3
 
(362.3)
 
(34.5)
 
(207.0)
 
197.1
 
(10.0)
Short-term up
5
 
(158.7)
 
(24.1)
 
45.4
 
(2,165.9)
 
(59.6)
 
(2,362.9)
 
531.5
 
(1,831.4)
Short-term down
6
 
162.5
 
27.4
 
(43.7)
 
2,315.6
 
3.8
 
2,465.6
 
(553.3)
 
1,912.3
1 Economic value
 
of equity.
 
2 Rates
 
across all
 
tenors move
 
by ±150 bps
 
for Swiss franc,
 
±200 bps
 
for euro
 
and US dollar,
 
and ±250
 
bps for pound
 
sterling.
 
3 Short
 
-term rates
 
decrease and
 
long-term rates
increase.
 
4 Short-term rates
 
increase and long
 
-term rates decrease.
 
5 Short-term rates
 
increase more than long
 
-term rates.
 
6 Short-term rates
 
decrease more than long-
 
term rates.
p
 
Other market risk exposures
Own credit
We are exposed
 
to changes
 
in UBS’s own
 
credit reflected
 
in the valuation
 
of financial
 
liabilities designated
 
at fair value
when UBS’s own
 
credit risk would be considered
 
by market participants, except
 
for fully collateralized liabilities or other
obligations for which it is established
 
market practice to not include
 
an own-credit component.
 
›
 
Refer to “Note 20
 
Fair value measurement”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for more information
about own credit
Structural foreign exchange risk
Upon
 
consolidation, assets
 
and liabilities
 
held in
 
foreign operations
 
are translated
 
into US
 
dollars at the
 
closing foreign
exchange rate on the balance
 
sheet date. Value changes (in US dollars) of non-US dollar assets or
 
liabilities due to foreign
exchange movements are recognized
 
in OCI and therefore affect
 
shareholders’ equity and
 
CET1 capital.
Group
 
Treasury
 
uses
 
strategies
 
to
 
manage
 
this
 
foreign
 
currency
 
exposure,
 
including
 
matched
 
funding
 
of
 
assets
 
and
liabilities and net investment hedging
 
.
›
 
Refer to the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section of this
 
report for more information
 
about our exposure
 
to
and management
 
of structural
 
foreign exchange
 
risk
›
 
Refer to “Note 10
 
Derivative instruments”
 
in the “Consolidated
 
financial statements”
 
section of
 
this report for more information
about our hedges
 
of net investments
 
in foreign operations
 
Equity investments and investment fund
 
units
Audited |
We make direct investments in a variety of entities and
 
buy equity holdings in both listed and unlisted
 
companies,
with
 
the
 
aim
 
of
 
supporting
 
our
 
business
 
activities and
 
delivering
 
strategic
 
value
 
to
 
UBS.
 
This
 
includes
 
investments
 
in
exchange
 
and
 
clearing
 
house
 
memberships,
 
as
 
well
 
as
 
minority
 
investments
 
in
 
early-stage
 
fintechs
 
and
 
technology
companies via
 
UBS
 
Next.
 
We
 
may also
 
make investments
 
in
 
funds
 
that we
 
manage
 
in order
 
to
 
fund
 
or seed
 
them at
inception or to demonstrate that our interests align with those of investors.
 
We also buy,
 
and are sometimes required by
agreement to buy,
 
securities and units from funds
 
that we have sold to clients.
The
 
fair
 
value
 
of
 
equity
 
investments
 
tends
 
to
 
be
 
influenced
 
by
 
factors
 
specific
 
to
 
the
 
individual
 
investments.
 
Equity
investments are generally
 
intended to be held
 
for the medium or
 
long term and
 
may be subject to lock
 
-up agreements.
For these reasons, we generally
 
do not control these
 
exposures by using market
 
risk measures applied to
 
trading activities.
However, such equity investments are subject
 
to a different range of controls,
 
including preapproval of new
 
investments
by business
 
management and Risk
 
Control, portfolio
 
and concentration limits,
 
and regular monitoring
 
and reporting
 
to
senior management. They are
 
also included in
 
our Group-wide statistical
 
and stress testing
 
metrics, which flow
 
into our
risk appetite framework.
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
119
 
As of
 
31 December 2022, we held
 
equity investments
 
and investment fund units
 
totaling USD
3.0
bn, of
 
which USD
1.9
bn
was classified as Financial assets at fair
 
value not held for trading and
 
USD
1.1
bn as Investments in associates
.
p
 
›
 
Refer to “Note 20
 
Fair value measurement”
 
and “Note
 
28 Interests in
 
subsidiaries
 
and other entities”
 
in the “Consolidated
financial statements”
 
section of this
 
report for more information
 
›
 
Refer to “Note 1
 
Summary of material
 
accounting policies”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for
more information about
 
the classification
 
of financial instruments
Debt investments
Audited |
Debt investments
 
classified as
 
Financial assets measured
 
at fair value
 
through other
 
comprehensive income
 
as of
31 December 2022
 
were measured at fair
 
value with changes
 
in fair value recorded
 
through
 
Equity, and
 
can broadly be
categorized as money market instruments and
 
debt securities primarily held for statutory,
 
regulatory or liquidity reasons.
The risk control framework applied to debt instruments classified as Financial assets measured at fair value through other
comprehensive
 
income
 
depends
 
on
 
the
 
nature
 
of
 
the
 
instruments
 
and
 
the
 
purpose
 
for
 
which
 
we
 
hold
 
them.
 
Our
exposures may be included
 
in market risk limits or
 
be subject to specific
 
monitoring and
 
interest rate sensitivity analysis.
They
 
are
 
also
 
included
 
in
 
our
 
Group-wide
 
statistical
 
and
 
stress
 
testing
 
metrics,
 
which
 
flow
 
into
 
our
 
risk
 
appetite
framework.
 
Debt instruments
 
classified
 
as Financial
 
assets
 
measured
 
at
 
fair
 
value through
 
other comprehensive
 
income had
 
a
 
fair
value of USD
2.2
bn as of 31 December 2022, compared with USD
8.8
bn as of 31 December 2021. Effective from 1 April
2022,
 
UBS
 
has
 
reclassified
 
a
 
portfolio
 
of
 
financial
 
assets
 
from
 
Financial
 
assets
 
measured
 
at
 
fair
 
value
 
through
 
other
comprehensive income with a
 
fair value of USD
6.9
bn to Other financial assets
 
measured at amortized
 
cost, in line with
the principles in IFRS 9,
Financial Instruments
, which require a reclassification
 
when an entity changes its business
 
model
for managing financial assets.
p
 
›
 
Refer to “Note 20
 
Fair value measurement”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for more information
›
 
Refer to “Economic
 
value of equity
 
sensitivity”
 
in this section
 
for more information
›
 
Refer to “Note 1
 
Summary of material
 
accounting policies”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for
more information about
 
the classification
 
of financial instruments
Pension risk
We provide a number of pension
 
plans for past and current employees, some
 
classified as defined benefit
 
pension plans
under IFRS that can have a material effect
 
on our IFRS equity and
 
CET1 capital.
Pension risk is the risk that defined benefit plans’ funded status might decrease, negatively affecting our capital. This can
result from
 
falls in
 
the value
 
of a
 
plan’s assets
 
or in
 
the investment
 
returns,
 
increases in
 
defined benefit
 
obligations,
 
or
combinations of the above.
Important risk factors affecting
 
the fair value of pension
 
plans’ assets include equity
 
market returns, interest rates,
 
bond
yields,
 
and
 
real
 
estate
 
prices.
 
Important
 
risk
 
factors
 
affecting
 
the
 
present
 
value
 
of
 
expected
 
future
 
benefit
 
payments
include high-grade bond
 
yields, interest rates, inflation rates, and life expectancy.
Pension
 
risk
 
is
 
included
 
in
 
our
 
Group-wide
 
statistical
 
and
 
stress
 
testing
 
metrics,
 
which
 
flow
 
into
 
our
 
risk
 
appetite
framework. The potential effects are thus
 
captured in the post-stress
 
capital ratio calculations.
 
›
 
Refer to “Note 1
 
Summary of material
 
accounting policies”
 
and
 
“Note 26 Post-employment
 
benefit plans”
 
in the “Consolidated
financial statements”
 
section of this
 
report for more information
 
about defined benefit
 
plans
 
UBS own share exposure
Group Treasury
 
holds UBS Group
 
AG shares to hedge
 
future share delivery obli
 
gations related to employee
 
share-based
compensation awards, and also holds shares purchased under the share repurchase program. In addition, the Investment
Bank
 
holds a
 
limited number
 
of UBS
 
Group AG
 
shares, primarily
 
in its
 
capacity as
 
a market-maker
 
with regard
 
to UBS
Group AG shares
 
and related derivatives, and to hedge
 
certain issued structured debt instruments.
›
 
Refer to “UBS shares”
 
in the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section of this
 
report for more information
 
 
 
Country risk
 
Country risk framework
Country risk includes all
 
country-specific events occurring in a sovereign jurisdiction that may
 
lead to impairment of UBS’s
exposures.
 
It may
 
take the
 
form of:
 
(i) sovereign
 
risk, which
 
is the
 
ability and
 
willingness
 
of a
 
government to
 
honor its
financial
 
commitments;
 
(ii) transfer
 
risk,
 
which
 
arises
 
if
 
a
 
counterparty
 
or
 
issuer
 
cannot
 
acquire
 
foreign
 
currencies
following a
 
moratorium by
 
a central
 
bank on
 
foreign
 
exchange transfers;
 
or (iii)
 
“other” country
 
risk. “Other”
 
country
risk may manifest itself
 
through, on
 
the one hand, increased
 
and multiple counterparty and
 
issuer default risk
 
(systemic
risk)
 
and,
 
on
 
the
 
other
 
hand,
 
events
 
that
 
may
 
affect
 
a
 
country’s
 
standing,
 
such
 
as
 
adverse
 
shocks
 
affecting
 
political
stability or institutional
 
and /
 
or legal frameworks.
 
We have a
 
well-established
 
risk control
 
framework to
 
assess the
 
risk
profiles of all countries where
 
we have exposure.
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
120
 
We
 
assign
 
a
 
country
 
rating
 
to
 
each
 
country,
 
which
 
reflects
 
our
 
view
 
of
 
the
 
country’s
 
creditworthiness
 
and
 
of
 
the
probability
 
of
 
a
 
country
 
risk event
 
occurring.
 
Country
 
ratings
 
are
 
mapped
 
to
 
statistically derived
 
default
 
probabilities,
described
 
under
 
“Probability
 
of
 
default”
 
in
 
this
 
section.
 
We
 
use
 
this
 
internal
 
analysis
 
to
 
set
 
the
 
credit
 
ratings
 
of
governments and central banks, estimate the
 
probability of a transfer
 
event occurring, and establish rules on how aspects
of
 
country
 
risk
 
should
 
be
 
incorporated
 
in
 
counterparty
 
ratings
 
of
 
non-sovereign
 
entities
 
domiciled
 
in
 
the
 
respective
country.
Country ratings are also
 
used to define our
 
risk appetite and risk
 
exposure to foreign
 
countries. A country risk
 
limit (i.e.,
maximum aggregate exposure) applies to exposures to counterparties or issuers of securities and financial investments in
the given foreign country. We
 
may limit the extension of
 
credit, transactions in traded
 
products or positions in securities
based on a country risk ceiling even if our
 
exposure to a counterparty is otherwise
 
acceptable.
For internal measurement and
 
control of country
 
risk, we also
 
consider the financial
 
effect of market disruptions
 
arising
prior to, during
 
and after a country
 
crisis. These may
 
take the form
 
of a severe
 
deterioration in
 
a country’s debt,
 
equity
or other asset
 
markets, or a
 
sharp depreciation
 
of its currency.
 
We use
 
stress testing to
 
assess potential
 
financial effects
of severe country or sovereign crises. This
 
involves the developing of plausible stress scenarios for combined stress testing
and
 
the
 
identification
 
of
 
countries
 
that
 
may potentially
 
be
 
subject
 
to
 
a
 
crisis
 
event,
 
determining
 
potential
 
losses
 
and
making
 
assumptions
 
about
 
recovery rates
 
depending
 
on
 
the
 
types
 
of
 
credit
 
transactions
 
involved
 
and
 
their economic
importance to the affected countries.
Our exposures to market risks
 
are subject to regular stress
 
tests covering major global
 
scenarios, which are also
 
used for
combined stress
 
testing, where
 
we apply
 
market shock
 
factors to
 
equity indices,
 
interest
 
rates and
 
currency rates
 
in all
relevant countries and consider
 
the potential liquidity of the instruments.
Country risk exposure
Country risk exposure measure
The presentation of country risk
 
follows our internal risk view,
 
where the basis for
 
measuring exposures
 
depends on the
product category in which we classified
 
the exposures. In addition to
 
the classification of exposures into banking
 
products
and
 
traded products,
 
covered in
 
“Credit
 
risk profile
 
of the
 
Group”
 
in this
 
section,
 
in the
 
trading inventory
 
we classify
issuer risk
 
on securities
 
such as
 
bonds
 
and equities,
 
as well as
 
risk relating
 
to underlying
 
reference
 
assets for
 
derivative
positions.
 
As we
 
manage the
 
trading inventory on
 
a net basis,
 
we net the
 
value of long
 
positions against
 
short positions
 
with the
same underlying
 
issuer. Net
 
exposures are,
 
however, floored
 
at zero per
 
issuer in the
 
figures presented
 
in the following
tables. As a result, we
 
do not recognize potentially
 
offsetting benefits of certain hedges and short
 
positions across issuers.
We do not recognize any expected recovery values when reporting country exposures as exposure before hedges, except
for
 
risk-reducing
 
effects
 
of
 
master
 
netting
 
agreements
 
and
 
collateral
 
held
 
in
 
either
 
cash
 
or
 
portfolios
 
of
 
diversified
marketable securities, which we deduct from
 
the positive exposure values. Within banking products and traded
 
products,
risk-reducing effects of credit
 
protection are taken
 
into account on
 
a notional basis
 
when determining the net
 
of hedge
exposures.
Country risk exposure allocation
In general,
 
exposures
 
are shown
 
against
 
the
 
country
 
of domicile
 
of the
 
contractual
 
counterparty
 
or the
 
issuer
 
of
 
the
security.
 
For
 
some
 
counterparties
 
whose
 
economic
 
substance
 
in
 
terms
 
of
 
assets
 
or
 
source
 
of
 
revenues
 
is
 
primarily
located in
 
a different
 
country,
 
the exposure
 
is allocated
 
to the risk
 
domicile
 
of those
 
assets or
 
revenues.
We apply a
 
specific approach
 
for banking
 
products exposures
 
to branches
 
of banks
 
that are located
 
in a country
 
other
than
 
the
 
legal
 
entity’s
 
domicile.
 
In
 
such
 
cases,
 
exposures
 
are
 
recorded
 
in
 
full
 
against
 
the
 
country
 
of
 
domicile
 
of
 
the
counterparty and additionally in full against
 
the country where the
 
branch is located.
In
 
the
 
case
 
of
 
derivatives,
 
we
 
show
 
counterparty
 
risk
 
associated
 
with
 
positive
 
replacement
 
value
 
(PRV)
 
against
 
the
counterparty’s country of domicile (presented within
 
traded products). In addition, risk associated with an instantaneous
fall in
 
value of
 
underlying
 
reference
 
assets
 
to zero (assuming
 
no recovery)
 
is shown
 
against the
 
country
 
of domicile
 
of
the
 
issuer
 
of
 
the
 
reference
 
asset
 
(presented
 
within
 
trading
 
inventory).
 
This
 
approach
 
allows
 
us
 
to
 
capture
 
both
counterparty
 
and, where applicable,
 
issuer elements
 
of risk
 
arising from derivatives
 
and applies comprehensively
 
for all
derivatives, including
 
single-name
 
credit default swaps
 
(CDSs) and other
 
credit derivatives.
CDSs are
 
primarily bought
 
and sold
 
in relation
 
to our
 
trading businesses,
 
and, to
 
a much lesser
 
degree, used
 
to hedge
credit valuation adjustments (CVAs). Holding
 
CDSs for credit default protection does not necessarily protect the buyer of
protection against losses, as contracts only pay out
 
under certain scenarios. The effectiveness of
 
our CDS protection as a
hedge
 
of
 
default
 
risk
 
is
 
influenced
 
by
 
several
 
factors,
 
including
 
the
 
contractual
 
terms
 
under
 
which
 
a
 
given
 
CDS
 
was
written. Generally,
 
only the occurrence
 
of credit events
 
as defined by
 
the CDS contract’s terms
 
(which may include, among
other
 
events,
 
failure
 
to
 
pay,
 
restructuring
 
or
 
bankruptcy)
 
results
 
in
 
payments
 
under
 
the
 
purchased
 
credit
 
protection
contracts.
 
For
 
CDS
 
contracts
 
on
 
sovereign
 
obligations,
 
repudiation
 
can
 
also
 
be
 
deemed
 
as
 
a
 
default
 
event.
 
The
determination
 
as
 
to
 
whether a
 
credit
 
event
 
has occurred
 
is
 
made by
 
the
 
relevant
 
International
 
Swaps
 
and
 
Derivatives
Association (ISDA) determination
 
committees (composed of various
 
ISDA member firms) based
 
on the terms of the CDS
and the facts and circumstances surrounding
 
the event.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
121
 
Top 20 country risk exposures
The table
 
below shows our 20
 
largest country
 
exposures by product
 
type, excluding our
 
home country, as of
 
31 December
2022 compared
 
with 31 December 2021.
Compared with
 
the prior year,
 
our
 
net exposure
 
to the UK
 
decreased by
 
USD 14.5bn, driven
 
by central bank
 
exposures
due
 
to treasury
 
activities. Net
 
exposure
 
to Germany
 
increased
 
by USD
 
4.1bn,
 
driven by
 
central bank
 
exposures
 
due
 
to
treasury
 
activities.
 
Net
 
exposures
 
to
 
Singapore
 
increased
 
by
 
USD 1.9bn,
 
driven
 
by
 
trading
 
inventory
 
due
 
to
 
treasury
activities. Net
 
exposure
 
to China
 
decreased by
 
USD 1.7bn,
 
predominantly driven
 
by trading
 
inventory across
 
issuer risk
and
 
margin loans
 
,
 
as well
 
as traded
 
and banking
 
products.
 
Net exposure
 
to France increased
 
by USD
 
1.7bn, driven
 
by
trading inventory due to treasury activities. Net exposure to the US increased by
 
USD 1.6bn, driven by mortgages,
 
as well
as trading inventory due to treasury activities
 
with partial offsets related to
 
securities financing transactions.
Based on the sovereign rating
 
categories, as of 31 December 2022,
 
86% of our emerging market country exposure was
rated investment grade, compared with 84%
 
as of 31 December 2021.
Russia
 
Our direct country
 
risk exposure
 
to Russia contributed
 
USD 98m to our
 
total emerging market exposure
 
of USD 18.6bn
as
 
of
 
31 December
 
2022,
 
compared
 
with
 
a
 
contribution
 
of
 
USD 634m
 
as
 
of
 
31 December
 
2021.
 
This
 
includes
 
trade
finance
 
exposures
 
in
 
Personal
 
&
 
Corporate
 
Banking,
 
Nostro
 
and
 
cash
 
accounts
 
balances,
 
and
 
issuer
 
risk
 
on
 
trading
inventory within the Investment Bank.
 
We
 
had
 
no
 
material direct
 
country
 
risk
 
exposures
 
to
 
Belarus
 
or
 
to
 
Ukraine
 
as
 
of
 
31 December
 
2022
 
and
 
no
 
material
reliance on Russian,
 
Belarusian or Ukrainian collateral.
 
Top 20
 
country risk net exposures
 
by product type
USD m
Total
Banking products
(loans, guarantees, loan
 
commitments)
Traded products
(counterparty risk from derivatives
and securities financing)
after master netting agreements
and net of collateral
Trading inventory
(securities and potential
benefits / remaining
exposure from derivatives)
Net of hedges
1
Net of hedges
1
Net of hedges
Net long per issuer
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
United States
117,994
116,388
81,875
79,647
6,620
8,371
29,499
28,371
United Kingdom
20,360
34,837
10,887
24,788
7,982
7,465
1,490
2,585
Japan
15,894
14,764
13,251
10,572
2,232
3,508
410
684
Germany
14,651
10,564
8,255
3,397
1,495
1,232
4,901
5,934
Singapore
10,863
8,993
3,038
3,110
2,493
2,557
5,332
3,326
France
7,996
6,301
2,056
1,356
1,335
1,711
4,605
3,235
Australia
4,893
6,397
1,365
2,674
1,833
1,786
1,696
1,937
Canada
4,722
3,933
274
1,199
620
1,044
3,827
1,689
China
3,625
5,344
1,347
1,823
295
830
1,983
2,691
South Korea
3,265
2,479
388
462
411
418
2,466
1,599
Luxembourg
3,230
3,453
2,717
2,438
87
58
427
958
Netherlands
2,866
3,020
1,074
1,183
669
830
1,123
1,007
Hong Kong SAR
2,278
3,388
938
1,914
455
367
885
1,107
Norway
1,676
1,215
80
25
396
206
1,200
983
United Arab Emirates
1,393
769
446
555
707
117
240
97
Thailand
1,383
1,469
344
208
23
26
1,017
1,235
Sweden
1,293
1,617
158
647
332
194
803
776
Austria
1,192
1,220
285
265
116
97
792
858
Monaco
1,017
1,022
1,001
984
16
28
0
10
India
975
1,119
847
991
88
87
40
41
Total top 20
2
221,565
228,291
130,626
138,238
28,203
30,930
62,736
59,124
1 Before deduction of IFRS 9 ECL
 
allowances and provisions.
 
2 Excluding Switzerland,
 
supranationals and global funds.
 
Emerging markets¹
 
net exposure²
 
by internal UBS country
 
rating category
USD m
31.12.22
31.12.21
Investment grade
16,029
17,608
Sub-investment grade
2,594
3,261
Total
18,623
20,869
1 We classify countries
 
as emerging
 
markets based on
 
per capita GDP,
 
historical real GDP
 
growth, alignment with
 
international
 
institutions (such
 
as BIS, World
 
Bank, IMF,
 
MSCI) and other factors.
 
2 Net of credit
hedges (for banking products and
 
for traded products); net
 
long per issuer (for trading
 
inventory). Before
 
deduction of IFRS 9 ECL a
 
llowances and provisions.
 
 
 
dev_UBS_AR_2022p150i0.gif
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
122
 
Sustainability and climate risk
At UBS, sustainability and climate risk is
 
defined as the risk that UBS negatively impacts or is impacted by climate change,
natural capital,
 
human rights or other environmental,
 
social and governance
 
(ESG) matters.
 
Sustainability and
 
climate risk
 
may manifest
 
as
 
credit, market,
 
liquidity
 
and
 
/ or
 
non-financial risk
 
for UBS,
 
resulting
 
in
potential adverse financial, liability and / or reputational impacts. These risks extend
 
to the value of investments and may
also affect the value
 
of collateral (e.g.,
 
real estate). The management of
 
sustainability and climate
 
risk is key,
 
amid a global
drive to meet the United Nations Sustainable Development Goals (the SDGs) and the transition to net zero, as defined by
the Paris
 
Agreement.
 
In addition,
 
regulators
 
across jurisdictions
 
increasingly seek
 
to understand
 
the potential
 
financial
impacts of climate change.
 
Our sustainability
 
and climate risk
 
policy framework
 
governs client and
 
supplier relationships,
 
applies Group-wide
 
to all
activities, and is integrated in management practices and control principles. The sustainability
 
and climate risk framework
is embedded in our
 
standard risk, compliance and operations processes
 
and applied as described
 
below.
 
 
The aforementioned processes
 
include client
 
onboarding, transaction due diligence,
 
product development
 
and investment
decision processes, own
 
operations, supply chain management,
 
and portfolio reviews.
 
This framework is geared toward
identifying
 
clients,
 
transactions
 
or
 
suppliers
 
potentially in
 
breach
 
of
 
our
 
standards
 
or
 
otherwise
 
subject
 
to
 
significant
controversies related to sustainability, human
 
rights or climate change.
›
 
Refer to “Sustainability
 
and climate risk policy
 
framework” in Supplement
 
2 to our Sustainability
 
Report 2022, available
 
under
“Annual reporting” at
ubs.com/investors
, for more information
Managing climate risk
Climate risk can arise either
 
from changing
 
climate conditions (physical
 
risks) or from
 
efforts to mitigate
 
climate change
(transition
 
risks).
 
The
 
physical
 
and
 
transition
 
risks
 
from
 
a
 
changing
 
climate
 
contribute
 
to
 
a
 
structural
 
change
 
across
economies and
 
consequently
 
can affect
 
banks
 
and
 
the financial
 
sector as
 
a whole
 
through
 
financial and
 
non-financial
impacts.
 
Our sustainability and climate risk (SCR)
 
unit (part of Group Risk
 
Control) manages material exposure to sustainability and
climate risks.
 
It also advances our firm-wide SCR initiative to
 
build in-house capacity for the management of sustainability
and climate-related risks.
Our SCR
 
initiative follows a multi-year
 
roadmap. It
 
is designed
 
to integrate sustainability
 
and climate risk considerations
into our various traditional financial and
 
non-financial risk management frameworks,
 
and related policies and processes.
This is
 
necessary to
 
meet expectations
 
regarding
 
the management
 
of sustainability
 
and
 
climate risks
 
and
 
to deliver
 
on
climate stress-test exercises. Our roadmap
 
is configured to address current and emerging
 
regulations and builds capacity
through expertise and
 
collaboration, for
 
example, structured
 
engagement with
 
internal and external
 
stakeholders (e.g.,
our Group Compliance, Regulatory &
 
Governance (GCRG) function, for non
 
-financial risks) and pertinent experts.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
123
 
In 2022, the SCR
 
initiative monitored emerging sustainability and climate
 
risk regulation, engaged
 
with select regulators
for deep dives, and further advanced
 
efforts toward the goal of full integration
 
of sustainability and climate risk into our
traditional
 
risk
 
management
 
frameworks
 
and
 
stress
-
testing
 
capacity.
 
Further
 
developments
 
included
 
establishing
sustainable product guidelines, building new capacity to centrally structure, acquiring
 
and deploying ESG data across the
firm, and further refining governance
 
and methodologies
 
driving ESG reporting and disclosure.
›
 
Refer to “Our management
 
of climate risks” in
 
our Sustainability
 
Report 2022,
 
available under
 
“Annual reporting”
 
at
ubs.com/investors
, for more information
UBS’s lending to climate-sensitive
 
sectors
UBS
 
approaches
 
climate risk
 
identification
 
by integrating
 
climate risk
 
drivers, expert
 
-based
 
views on
 
their transmission
channels, and climate
 
risk methodologies (e.g.,
 
risk scores and heatmaps). This
 
enables a materiality
 
-driven approach to
climate risk management.
 
›
 
Refer to “Climate related
 
materiality assessment”
 
in our Sustainability
 
Report 2022,
 
available under
 
“Annual reporting”
 
at
ubs.com/investors
, for more information
The current
 
inventory of
 
UBS’s
 
exposure to
 
climate-sensitive activities
 
(transition and
 
physical risk)
 
at the
 
sector level
 
is
summarized in the table below. Exposures
 
may appear either under one
 
or more of the risk types, as the methodologies
are
 
distinct in
 
their approach
 
and
 
application and
 
should
 
not be
 
added
 
up
 
as one
 
total exposure
 
figure.
 
Climate risk
analysis is
 
a novel
 
area of research, and,
 
as the
 
methodologies, tools,
 
and data availability
 
improve, we
 
will further develop
our risk identification and measurement approaches.
 
Risk exposures
 
by sector
1,2
Exposure
Transition risk
Physical risk
Sector
2020–2022
trend
2022
(USD bn)
2022
climate-
sensitive
exposure
3
2022 risk-rating
category
3
2020–2022
trend in risk
profile
4
In scope of
net-zero
target (%)
5
2022
climate-
sensitive
exposure
3
2022 risk-rating
category
3
2020–2022
trend in risk
profile
4
Agriculture
Agriculture, fishing and forestry
¯
0.3
 
0.0
 
Moderately low
 
­
0.3
 
Moderate
 
¯
Food and beverage
¯
3.2
 
1.4
 
Moderate
 
¯
2.3
 
Moderate
 
¯
Financial services
Financial services
­
46.9
 
0.0
 
Low
 
¯
7.1
 
Moderately low
 
¯
Industrials
Cement or concrete manufacture
­
0.5
 
0.5
 
Moderately high
 
¯
98
0.5
 
Moderate
 
¯
Chemicals manufacture
¯
1.0
 
1.0
 
Moderately high
 
¯
1.0
 
Moderate
 
­
Electronics manufacture
¯
1.8
 
0.0
 
Moderately low
 
¯
0.1
 
Moderately low
 
­
Goods and apparel manufacture
­
2.1
 
1.0
 
Moderate
 
¯
0.9
 
Moderately low
 
¯
Machinery manufacturing
¯
2.9
 
2.6
 
Moderate
 
¯
0.1
 
Moderately low
 
¯
Pharmaceuticals manufacture
­
1.9
 
1.9
 
Moderately high
 
¯
0.2
 
Moderately low
 
¯
Plastics and petrochemicals manufacture
¯
0.9
 
0.9
 
Moderate
 
¯
0.8
 
Moderate
 
¯
Metals and mining
Conglomerates (incl. trading)
¯
2.4
 
2.4
 
Moderate
 
¯
0.4
 
Moderately low
 
¯
Mining and quarrying
¯
0.4
 
0.0
 
Moderately low
 
¯
0.4
 
Moderately high
 
¯
Production
­
0.4
 
0.4
 
Moderate
 
¯
0.1
 
Moderate
 
­
Fossil fuels
Downstream refining, distribution
­
0.3
 
0.3
 
Moderate
 
­
0.3
 
Moderate
 
¯
Integrated
¯
0.4
 
0.4
 
Moderately high
 
¯
100
0.4
 
Moderate
 
¯
Midstream transport, storage
­
0.0
 
0.0
 
Moderate
 
¯
0.0
 
Moderate
 
¯
Trading
­
5.2
 
5.2
 
Moderate
 
¯
5.2
 
Moderately high
 
¯
Upstream extraction
¯
0.1
 
0.1
 
Moderately high
 
¯
95
0.1
 
Moderate
 
¯
Real estate
Real estate development and
management
¯
5.6
 
1.8
 
Moderately low
 
¯
0.8
 
Moderately low
 
¯
Residential
2
­
158.9
 
0.0
 
Low
 
®
99
0.0
 
Low
 
®
Commercial
2
­
47.1
 
1.4
 
Moderately low
 
¯
97
1.7
 
Low
 
­
Services and technology
Services and technology
¯
19.6
 
0.0
 
Low
 
¯
3.0
 
Moderately low
 
¯
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
124
 
 
Risk exposures
 
by sector
1,2
 
(continued)
Exposure
Transition risk
Physical risk
Sector
2020–2022
trend
2022
(USD bn)
2022
climate-
sensitive
exposure
3
2022 risk-rating
category
3
2020–2022
trend in risk
profile
4
In scope of
net-zero
target (%)
5
2022
climate-
sensitive
exposure
3
2022 risk-rating
category
3
2020–2022
trend in risk
profile
4
Transportation
Air transport
¯
1.8
 
1.8
 
Moderate
 
¯
1.1
 
Moderate
 
¯
Automotive
¯
0.4
 
0.1
 
Moderately low
 
¯
0.0
 
Moderately low
 
¯
Parts and equipment supply
¯
0.5
 
0.5
 
Moderate
 
¯
0.1
 
Moderately low
 
¯
Rail freight
¯
0.7
 
0.0
 
Low
 
¯
0.2
 
Moderately low
 
¯
Road freight
¯
0.5
 
0.5
 
Moderate
 
¯
0.2
 
Moderately low
 
¯
Transit
¯
0.2
 
0.0
 
Moderately low
 
¯
0.1
 
Moderately low
 
¯
Water transport
¯
0.4
 
0.0
 
Moderately low
 
¯
0.4
 
Moderate
 
¯
Utilities
Other
¯
0.2
 
0.1
 
Moderately low
 
­
0.1
 
Moderate
 
¯
Secondary energy production
­
2.0
 
0.5
 
Moderately low
 
¯
91
2.0
 
Moderate
 
¯
Secondary energy trading
¯
0.0
 
0.0
 
Moderately low
 
¯
0.0
 
Moderate
 
¯
Private lending
Lombard
2,6
¯
137.3
 
0.0
 
Low
 
¯
0.0
 
Moderately low
 
¯
Private lending, credit cards, other
2
¯
4.1
 
0.0
 
Not Classified
 
®
0.0
 
Not Classified
 
®
Total
¯
450.0
 
24.9
 
Moderately low
 
¯
 
30.0
 
Moderately low
 
¯
of which: sensitive exposure (%)
5.5
6.7
1 Consists of total loans
 
and advances to
 
customers and guarantees,
 
as well as irrevocable
 
loan commitments
 
(within the scope
 
of expected credit loss),
 
and is based on consolidated
 
and standalone IFRS
 
numbers,
in USD bn.
 
Metrics and
 
trends are
 
calculated
 
and restated
 
based on
 
2022 methodology,
 
across three
 
years of reporting,
 
2020–2022.
 
2 Methodologies
 
for assessing
 
climate-related
 
risks are
 
emerging and
 
may
change over time. As the methodologies, tools and data availability
 
improve, we will further develop our risk identification and measurement
 
approaches, including further and updated geospatial
 
analysis of properties
securing financing
 
with UBS
 
(real estate)
 
and better
 
understanding how
 
private lending
 
(e.g., Lombard)
 
activities
 
may result
 
in direct
 
financial impacts
 
for UBS. For
 
physical climate
 
risks,
 
UBS has identified
 
select
properties in
 
its real
 
estate
 
portfolio that are
 
vulnerable
 
to acute climate
 
hazards.
 
However,
 
real estate
 
rating is
 
assigned
 
based on
 
the riskiness
 
of loan counterparties
 
or qualitative
 
estimates leveraging
 
internal
studies.
 
3 Climate-related risks are
 
scored between 0 and 1,
 
based upon sustainability
 
and climate risk transmission
 
channels, as
 
outlined in Appendix
 
3 to our Sustainability Report
 
2022, available under
 
“Annual
reporting” at
 
ubs.com/investors.
 
Risk ratings
 
represent a
 
range of
 
scores across
 
five risk
 
-rating categories:
 
low, moderately
 
low,
 
moderate,
 
moderately
 
high, and
 
high. The
 
climate-sensitive
 
exposure
 
metrics are
determined based upon the top three out of five
 
rated categories: high to moderate.
 
Legend on risk codes: not classified
 
means the respective category
 
of risk rating is not classified and its range
 
of risk profiles scores
0%; low means the category of
 
risk rating is low and its
 
range of risk prof
 
iles scores ≤19%; moderately
 
low means the category
 
of risk rating is moderately
 
low and its range of risk
 
profiles scores >19% and
 
≤39%;
moderate means the category
 
of risk rating is moderate and its
 
range of risk profiles scores >39%
 
and ≤59%; moderately
 
high means the category of risk
 
rating is moderately high and its
 
range of risk profiles scores
>59% and ≤79%; high
 
means the category of
 
risk rating is high
 
and its range
 
of risk profiles scores
 
>79% and ≤100%.
 
4 A material change
 
in risk profile
 
(discrete risk score,
 
weighted average
 
per sub-sector) is
considered a >5% shift up,
 
or down.
 
5 Calculated as a
 
% of total exposure to the
 
sub-sector,
 
overall net-zero targets cover 45.6%
 
of UBS lending, as defined in
 
footnote 1.
 
6 Lombard lending
 
rating is assigned
based on the average riskiness
 
of loans.
Transition risk heatmap
Transition
 
risk covers
 
the adjustment
 
to an
 
environmentally
 
sustainable
 
economy,
 
including
 
changes
 
in public
 
policies,
disruptive
 
technological
 
developments
 
and
 
shifts
 
in
 
consumer
 
and
 
investor
 
preferences.
 
Our
 
transition
 
risk
 
heatmap
methodology is
 
based on a risk-segmentation
 
process, dividing
 
and rating economic sectors
 
and industry
 
sub-segments
that share similar risk vulnerability
 
characteristics.
These are then scored
 
and rated according
 
to their vulnerability to
 
(i) climate policy,
 
(ii) low-carbon technology
 
risks and
(iii) revenue
 
or demand
 
shifts under
 
an immediate
 
and
 
ambitious approach
 
,
 
to meeting
 
the well-below-2°C
 
Paris goal.
We are able to use these risk ratings to support identification of potential climate-sensitive concentrations.
 
The ratings in
the heatmap are
 
bands of
 
scores (from 0
 
to 1), and
 
reflect the levels
 
of risk that
 
would likely occur
 
under an
 
ambitious
transition (in a short-term time horizon).
Our
 
current
 
transition
 
risk
 
heatmap
 
shows
 
that
 
our
 
exposure
 
to
 
activities
 
rated
 
as
 
having
 
high,
 
moderately
 
high
 
or
moderate vulnerability
 
to climate
 
transition risks
 
is relatively
 
low (as
 
a percentage,
 
in 2022
 
compared with
 
2021). Most
year-on-year
 
fluctuations
 
(2021
 
to
 
2022)
 
were
 
in
 
the
 
energy
 
sector,
 
specifically
 
in
 
the
 
oil
 
and
 
gas
 
midstream
 
and
downstream
 
segments,
 
and
 
were
 
caused by
 
increasing
 
energy prices,
 
as
 
the Russia
 
–Ukraine war
 
tightened
 
the global
energy supply.
 
Despite these fluctuations, we have
 
continued to reduce our
 
exposure to climate-sensitive sectors.
›
 
Refer to “Managing
 
sustainability and
 
climate risks” in our
 
Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
, for more information
 
 
 
dev_UBS_AR_2022p153i0.gif
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
125
 
 
 
dev_UBS_AR_2022p154i0.gif
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
126
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
127
 
Physical risk heatmap
 
Physical risk arises from the impact of weather events and long-term or widespread environmental changes. The physical
risk heatmap
 
methodology
 
groups
 
corporate
 
counterparties
 
based
 
on
 
exposure
 
to
 
key physical
 
risk factors,
 
by
 
rating
sectoral
 
(sectoral
 
average
 
risk
 
distribution),
 
geographic
 
(vulnerability
 
and
 
adaptive
 
capacity)
 
and
 
value
 
chain
 
(sectoral
average risk distribution)
 
vulnerabilities in
 
a climate-change
 
trajectory in which
 
no additional
 
policy action
 
is taken,
 
and
scored
 
for
 
the
 
potential
 
for
 
financial
 
loss
 
in
 
the
 
short-term
 
time
 
horizon.
 
Ratings
 
from
 
low
 
to
 
high
 
are
 
based
 
on
 
a
weighted-average score (from 0
 
to 1), given
 
by double-weighting sector
 
and geography and single-weighting value
 
chain.
 
›
 
Refer to “Managing
 
sustainability and
 
climate risks” in our
 
Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
 
We will continue
 
to enhance
 
our methodology
 
in 2023, with
 
relevant subject matter
 
experts (e.g.,
 
country risk experts)
and enha
 
nced vendor
 
data sources
 
(e.g., systematic
 
integration of
 
geospatial
 
tools and
 
data). Our
 
current physical
 
risk
heatmap shows
 
that we
 
have relatively
 
low exposure
 
to activities
 
rated
 
as having
 
high,
 
moderately high
 
or moderate
vulnerability
 
to
 
physical
 
climate
 
risks.
 
Key
 
concentrations
 
of
 
exposure
 
include
 
high
 
volumes
 
of
 
real
 
estate
 
lending
 
in
Switzerland.
 
Most
 
of
 
our
 
lending
 
is
 
to
 
the
 
financial sector,
 
which
 
by
 
its nature
 
has
 
a
 
lower
 
physical
 
climate
 
risk.
 
Key
exceptions are lending
 
to property insurance companies or lending
 
in higher-risk regions, such as South
 
Asia.
The chart below shows the location-specific risk
 
distribution compared with the spread of physical risk across sectoral risk
ratings versus country (risk domicile, see above)
 
risk ratings. The size of the circle indicates
 
the relative lending
 
exposure.
Scenario analysis and stress test exercises
We use scenario-based approaches to assess our exposure to physical
 
and transition risks stemming
 
from climate change.
We have introduced a series of
 
assessments performed through industry collaborations in order to
 
harmonize approaches
for
 
addressing
 
methodological
 
and
 
data
 
gaps.
 
We
 
have
 
performed
 
top-down
 
balance
 
sheet
 
stress
 
testing
 
(across
 
the
Group),
 
as well
 
as targeted,
 
bottom-up
 
analysis
 
of specif
 
ic sector
 
exposures
 
covering
 
short-,
 
medium-,
 
and
 
long-term
time horizons.
UBS first participated
 
in regulatory scenario
 
analysis and
 
stress test exercises
 
in 2021,namely
 
the Bank
 
of England
 
(BoE)
2021 Climate Biennial
 
Exploratory Scenario (CBES):
 
Financial risks from
 
climate change;
 
and the Climate Risk
 
Stress Test
(CST) of the European Central Bank (the ECB). In addition,
 
in 2021 UBS participated
 
in climate risk assessment conducted
in Switzerland jointly by FINMA and
 
the Swiss National Bank. Throughout
 
2022, we engaged with a range
 
of regulatory
surveys and other requests for information
 
from supervisors around the
 
globe.
›
 
Refer to “Managing
 
sustainability and
 
climate risks” in our
 
Sustainability
 
Report 2022, available
 
under “Annual reporting”
 
at
ubs.com/investors
 
 
 
 
dev_UBS_AR_2022p156i0.jpg
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
128
 
 
 
dev_UBS_AR_2022p157i0.gif
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
129
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
130
 
Non-financial risk
Non-financial
 
risk
 
is
 
the
 
risk
 
of
 
undue
 
monetary
 
loss
 
and
 
/
 
or
 
non-monetary
 
adverse
 
consequences
 
resulting
 
from
inadequate or failed internal processes, people and / or systems, failure to comply with laws and regulations and internal
policies
 
and
 
procedures,
 
or
 
external
 
events
 
(deliberate,
 
accidental
 
or
 
natural)
 
that
 
have
 
an
 
impact,
 
monetary
 
or
 
non-
monetary, on
 
UBS, its clients or its markets.
Key developments
We have identified eight non
 
-financial risk themes as being currently key
 
to us.
 
These are:
–
 
digital transformation and
 
change delivery;
–
 
data life cycle;
–
 
operational resilience and cyber threat;
–
 
investor protection and market interaction;
–
 
strategic growth initiatives and partnerships;
–
 
the evolving nature of AML / KYC and
 
sanctions;
–
 
virtual assets; and
–
 
environmental, social and governance
 
(ESG) risks.
We
 
are
 
continuing
 
our
 
efforts
 
regarding
 
innovation
 
and
 
digitalization
 
to
 
create
 
value
 
for
 
our
 
clients.
 
As
 
part
 
of
 
the
resulting transformation, we focus
 
on timely and properly
 
controlled changes to frameworks,
 
including consideration of
new or revised controls, working
 
practices and oversight, with the aim of mitigating
 
any new risks introduced.
The increasing interest
 
in data-driven advisory
 
processes, and use of
 
artificial intelligence and machine
 
learning, is opening
up new
 
questions related
 
to data ethics,
 
data privacy and
 
records management.
 
In addition,
 
given the interconnectivity
between systems and
 
data flows, it
 
is important that
 
data is properly managed
 
and is complete, timely
 
and correct.
 
We
are
 
actively
 
enhancing
 
the
 
required
 
frameworks,
 
which
 
are
 
designed
 
to
 
ensure
 
proper
 
controls
 
are
 
in
 
place
 
to
 
meet
regulatory and customer expectations.
Given rising geopolitical tensions,
 
coupled with ongoing
 
environmental and health threats, we
 
believe that it is essential
that
 
UBS
 
remains
 
operationally
 
resilient.
We
 
have
 
developed
 
a
 
global
 
operational
 
resilience
 
framework
 
and
 
are
 
implementing
 
it across
 
all business
 
divisions and
 
jurisdictions. The
 
framework will
 
mature
 
over time
 
and
 
is designed
 
to
drive
 
enhancements
 
in
 
operational
 
resilience.
 
In
 
addition,
 
in
 
regions
 
with
 
local
 
COVID-19
 
restrictions,
 
our
 
response
continues to
 
rely upon our business
 
continuity management
 
and operational
 
risk processes, with
 
no material impact on
our services.
The inherent risk of cyberattacks
 
continues to be elevated, as the
 
geopolitical situation increases the likelihood of
 
external
state-driven cyber activity,
 
and attacks are
 
becoming
 
increasingly sophisticated,
 
which may
 
result in business
 
disruption
or the corruption
 
or loss of data.
 
It is therefore key
 
that our cyber-defense capabilities
 
continue to be
 
strengthened and
evolve in line with developments in
 
the threat landscape. Our IT security controls, staff training and communications, and
cyber-threat
 
monitoring
 
provided
 
adequate
 
cyber
 
defenses
 
to
 
prevent
 
our
 
operations
 
being
 
materially
 
impacted
 
by
cybersecurity
 
incidents
 
in
 
2022.
 
We
 
continue
 
to
 
enhance
 
our
 
cyber
 
capabilities
 
to
 
stay
 
abreast
 
of
 
evolving
 
threats.
Cyberattacks may also occur on
 
the systems that are operated
 
by external service providers.
 
If a successful attack occurs
at a service
 
provider, as
 
we have recently experienced,
 
we may be
 
dependent on
 
the service provider’s
 
ability to detect,
investigate and assess the attack, and
 
successfully restore the relevant systems and
 
data.
As we
 
continue
 
to move
 
to a
 
post-pandemic
 
“new
 
normal,”
 
changes
 
to the
 
work environment
 
(including
 
permanent
hybrid
 
working
 
and
 
the
 
introduction
 
of
 
agile
 
ways
 
of
 
working)
 
have
 
introduced
 
new
 
challenges
 
for
 
supervision
 
and
monitoring. Hybrid
 
working can
 
lead to increased
 
conduct risk, inherent
 
risk of fraudulent
 
activities, potential increases
in
 
the
 
number
 
of
 
suspicious
 
transactions,
 
and
 
increased
 
information
 
security
 
risks.
 
We
 
have
 
implemented
 
additional
monitoring and supervision
 
to mitigate these risks.
Competition to find new
 
investment opportunities across
 
the financial services
 
sector, both for firms and
 
for customers,
is
 
increasing.
 
Thus,
 
suitability
 
risk,
 
product
 
selection,
 
cross-divisional
 
service
 
offerings,
 
quality
 
of
 
advice
 
and
 
price
transparency also remain areas of
 
heightened focus for UBS
 
and for the industry as a whole.
With regard to consumer protection, sustainable investing,
 
market volatility and major legislative change programs, such
as the Swiss Financial Services Act (FIDLEG) in Switzerland,
 
Regulation Best Interest (Reg BI)
 
in the US and the Markets in
Financial Instruments Directive II (MiFID II) in the EU, all
 
significantly affect the industry and require adjustments to control
processes on a geographically aligned
 
basis.
Achieving fair
 
outcomes for
 
our clients,
 
upholding
 
market integrity
 
and
 
cultivating
 
the highest
 
standards
 
of employee
conduct are
 
of critical importance
 
to us.
 
We maintain a
 
conduct risk framework
 
across
 
our activities, which
 
is designed
to align our standards
 
and conduct with these objectives and to
 
retain momentum on fos
 
tering a strong culture.
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
131
 
Cross-border
 
risk remains
 
an area
 
of regulatory
 
attention
 
for global
 
financial institutions
 
,
 
with a
 
strong
 
focus on
 
fiscal
transparency, as well as market
 
access, particularly third
 
-country market access into
 
the European
 
Economic Area.
 
There
is also an ongoing
 
high level of attention regarding
 
the risk that tax authorities may,
 
on the basis of new
 
interpretations
of existing law,
 
seek to impose
 
taxation based
 
on the existence of
 
a permanent establishment.
 
We maintain a
 
series of
controls designed
 
to address these
 
risks. Remote
 
communication and
 
the use of digital solutions
 
also require that
 
these
evolving client channels remain compliant.
In September 2022, the Securities and Exchange Commission (the SEC) and the Commodity Futures Trading Commission
(the
 
CFTC)
 
issued
 
settlement
 
orders
 
with
 
UBS
 
AG
 
relating
 
to
 
communications
 
recordkeeping
 
requirements
 
in
 
our
 
US
broker-dealers
 
and
 
our
 
registered
 
swap
 
dealer.
 
In
 
response,
 
we
 
have
 
initiated
 
a
 
program
 
to
 
remediate
 
the
 
identified
shortcomings.
Financial
 
crime,
 
including
 
money
 
laundering,
 
terrorist
 
financing,
 
sanctions
 
violations,
 
fraud,
 
bribery
 
and
 
corruption,
continues to present
 
a major risk, as
 
technological innovation and
 
geopolitical developments
 
increase the complexity
 
of
doing business and heightened regulatory attention continues. An effective financial crime
 
prevention program therefore
remains essential for UBS. Money laundering and financial
 
fraud techniques are becoming increasingly sophisticated, and
geopolitical
 
volatility
 
makes
 
the
 
sanctions
 
landscape
 
more
 
complex,
 
as
 
new
 
or
 
novel
 
sanctions
 
may
 
be
 
imposed
 
that
require complex implementation in a short
 
time frame, such as the extensive and continuously
 
evolving sanctions arising
from the Russia–Ukraine war. As a
 
regulated financial institution,
 
UBS is subject
 
to the requirements of, and
 
to supervision
by,
 
the
 
Swiss
 
Financial
 
Market
 
Supervisory
 
Authority
 
(FINMA),
 
the
 
US
 
Federal
 
Reserve
 
Board,
 
the
 
US
 
Office
 
of
 
the
Comptroller of
 
the Currency
 
(the OCC)
 
,
 
the US
 
Federal Deposit
 
Insurance Corporation
 
,
 
the US
 
SEC, the
 
UK Prudential
Regulation
 
Authority,
 
the UK
 
Financial Conduct
 
Authority,
 
the
 
German
 
Federal
 
Financial Supervisory
 
Authority
 
(BaFIN)
and the European Central
 
Bank (the ECB),
 
as applicable. As such,
 
we maintain policies
 
and procedures that are reasonably
designed to comply with the sanctions, anti-bribery and anti-corruption regimes in
 
the jurisdictions in which we operate,
including the Swiss, EU,
 
US and UK regimes.
 
In the
 
US, the
 
OCC issued
 
a Cease
 
and
 
Desist
 
Order against
 
UBS
 
in May
 
2018
 
relating to
 
our US
 
branch anti
 
-money-
laundering (AML)
 
and know-your-client (KYC) programs. In response,
 
we initiated an extensive program for the purpose
of ensuring
 
sustainable
 
remediation
 
of US
 
-relevant Bank
 
Secrecy
 
Act /
 
AML
 
issues
 
across all
 
our US
 
legal entities.
 
We
introduced significant improvements to the framework
 
between 2019 and 2022
 
.
 
We are continuing to implement these
enhancements,
 
as well as evolving them to respond
 
to any new and emerging risks.
We
 
continue
 
to
 
focus
 
on
 
strategic
 
enhancements
 
to
 
our
 
global
 
AML
 
/
 
KYC
 
and
 
sanctions
 
programs,
 
including
 
the
exploration of
 
new
 
technologies
 
and
 
sophisticated monitoring
 
and
 
analytical capabilities,
 
as well
 
as the
 
application
 
of
risk appetite statements for markets.
In
 
line
 
with
 
our
 
firm-wide
 
purpose,
 
ESG
 
topics
 
and
 
the
 
risks
 
related
 
to
 
them
 
are
 
high
 
on
 
our
 
agenda,
 
particularly
considering
 
the
 
increasing
 
regulatory
 
focus
 
on
 
ESG
 
disclosure,
 
climate-related
 
stress
 
testing,
 
net-zero
 
commitments,
greenwashing
 
risk
 
and
 
the
 
strategic commercial
 
pushing
 
of
 
sustainability topics,
 
as
 
well
 
as
 
the potential
 
for
 
new
 
and
diverse regulations
 
being deployed
 
across jurisdictions.
 
Strong regulatory
 
development tracking
 
and impact assessment
are key, as is integrating ESG factors
 
into the financial and non
 
-financial risk control frameworks as required.
›
 
Refer to “Sustainability
 
and climate risk”
 
in this section
 
for more information
 
about risks related
 
to sustainability and
 
climate risk
New risks
 
continue
 
to emerge.
 
For example,
 
client demand
 
for distributed
 
ledger technology,
 
blockchain-based
 
assets
and
 
virtual
 
currencies
 
creates
 
new
 
risks,
 
to
 
which
 
we
 
currently
 
have
 
limited
 
exposure
 
and
 
for
 
which
 
relevant
 
control
frameworks are being implemented.
Non-financial risk framework
Non-financial risk
 
is an
 
inherent
 
part of
 
our business.
 
Losses can
 
result from
 
people and
 
systems, inadequate
 
or failed
internal
 
processes,
 
or
 
external
 
causes.
We
 
follow
 
a
 
Group
-
wide
 
non
-
financial
 
risk
 
framework
 
that
 
establishes
requirements for
 
identifying, managing,
 
assessing and
 
mitigating operational,
 
compliance and
 
conduct risks to
 
achieve
an agreed balance between
 
risk and return. It is built on the following
 
pillars:
–
 
classifying inherent risks through 18 non-financial risk taxonomies, which define the universe of material non-financial
risks that can arise as a consequence
 
of our business activities and
 
external factors;
–
 
assessing the design
 
and operating effectiveness of controls through
 
our control assessment process;
–
 
defining the non-financial
 
risk appetite
 
(including a financial
 
risk appetite
 
statement at the
 
Group, UBS AG
 
and business
division levels for non-financial risk events) through
 
quantitative metrics and thresholds
 
and qualitative measures, and
assessing risk exposure against
 
appetite;
–
 
assessing inherent and residual
 
risk through risk
 
assessment processes and
 
determining whether additional
 
remediation
plans are required
 
to address identified deficiencies;
 
and
–
 
proactively and sustainably remediating
 
identified control deficiencies.
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
132
 
Divisional Presidents
 
are accountable
 
for the
 
effectiveness of
 
non-financial
 
risk management
 
and
 
for the
 
robustness
 
of
the front-to-back control
 
environment within their business divisions,
 
and legal-entity-responsible executives are in
 
charge
of non
 
-financial risk
 
management within
 
their legal
 
entities. Group
 
function heads
 
are accountable
 
for supporting
 
the
divisional Presidents
 
and legal-entity-responsible
 
executives of our
 
legal entities in the discharge
 
of this responsibility,
 
by
confirming completeness
 
and effectiveness
 
of the control
 
environment and
 
non-financial risk
 
management within
 
their
Group functions.
 
Collectively, divisional Presidents,
 
central Group function
 
heads and legal
 
-entity-responsible executives
are in charge of implementing the
 
non-financial risk framework.
Compliance &
 
Operational Risk Control
 
(C&ORC) is
 
responsible for
 
providing an
 
independent and
 
objective view of the
adequacy of non-financial risk management across the Group, and ensuring that compliance
 
risk, financial crime risk and
operational risk are understood, owned and
 
managed in accordance
 
with our risk
 
appetite. C&ORC business-
 
or function-
aligned teams sit within
 
the Group Compliance, Regulatory & Governance (GCRG)
 
function, reporting to the Group
 
Chief
Compliance and Governance
 
Officer, who is a
 
member of the Group
 
Executive Board. The
 
non-financial risk framework
forms the common basis for managing and assessing compliance risk, financial crime risk and
 
operational risk, and there
are additional
 
C&ORC activities
 
intended to
 
ensure we
 
are able
 
to demonstrate
 
compliance with
 
applicable laws,
 
rules
and regulations.
In 2022, we continued to
 
review and enhance
 
the non-financial risk
 
framework, including delivery of the
 
Group Functions
Risk Control
 
Self-Assessment for the
 
first time and
 
the rolling-out
 
of the simplified
 
risk taxonomy, which
 
also facilitated
the development of the firm-wide
 
non-financial risk appetite statement
 
and assessments across all 18
 
taxonomies.
All functions
 
within UBS are
 
required to assess
 
the design and
 
operating effectiveness of
 
their internal controls
 
periodically.
The output
 
of these
 
reviews supports
 
the assessment
 
and
 
testing scope
 
of internal
 
controls over
 
financial reporting
 
as
required by the Sarbanes
 
–Oxley Act, Section 404 (SOX 404).
Key control deficiencies identified during the internal control and risk assessment processes must be reported in the non-
financial
 
risk
 
inventory,
 
and
 
sustainable
 
remediation
 
must
 
be
 
defined
 
and
 
executed.
 
These
 
control
 
deficiencies
 
are
assigned
 
to owners
 
at senior
 
management level
 
and
 
the remediation
 
progress
 
is reflected in
 
the respective
 
managers’
annual
 
performance measurement
 
and
 
objectives. To
 
assist with
 
prioritizing the
 
most material
 
control deficiencies
 
and
measuring aggregated risk exposure, irrespective of origin, a common rating methodology is applied across all three
 
lines
of defense, as well as by external audit.
Advanced measurement approach model
The non-financial risk
 
framework outlined above underpins the
 
calculation of
 
regulatory capital for
 
operational risk, which
enables us to quantify operational
 
risk and define effective
 
risk-mitigating management
 
incentives as part of the related
operational risk capital allocation
 
approach to the business
 
divisions.
We
 
measure
 
Group
 
operational
 
risk
 
exposure
 
and
 
calculate
 
operational
 
risk
 
regulatory
 
capital
 
using
 
the
 
advanced
measurement approach (AMA)
 
in accordance with FINMA and
 
international requirements.
An
 
entity-specific
 
AMA
 
model
 
has
 
been
 
applied
 
for
 
UBS
 
Switzerland AG,
 
while
 
for
 
other
 
regulated
 
entities the
 
basic
indicators or
 
standardized
 
approaches
 
are adopted
 
for regulatory
 
capital in
 
agreement
 
with local
 
regulators.
 
Also,
 
the
methodology of the Group
 
AMA is leveraged for entity-specific Internal Capital
 
Adequacy Assessment Processes.
Currently,
 
the model includes 16
 
AMA units of measure (UoM),
 
which are aligned
 
with our non
 
-financial risk taxonomy
as closely as possible. Full transition to the non-financial risk taxonomy is not yet implemented,
 
but is planned by the end
of December 2023 with expected FINMA
 
approval for the Group
 
’s AMA model.
 
Frequency and severity distributions
 
are
calibrated for each of the model’s
 
UoM. The modeled
 
distribution functions for both
 
frequency and severity are
 
used to
generate the annual loss distribution. The resulting 99.9% quantile of the overall annual operational risk loss distribution
across all UoM
 
determines the required
 
regulatory capital.
 
Currently,
 
we do
 
not reflect mitigation
 
through
 
insurance or
any other risk transfer mechanism in our
 
AMA model.
AMA model calibration and
 
review
A
 
key
 
assumption
 
when
 
calibrating
 
data-driven
 
frequency
 
and
 
severity
 
distributions
 
is
 
that
 
historical
 
losses
 
form
 
a
reasonable
 
proxy for
 
future events.
 
In line
 
with regulatory
 
expectations,
 
the AMA
 
methodology
 
utilizes both
 
historical
internal losses and external losses
 
suffered by the broader
 
industry for model calibration purposes.
Initial model outputs driven by the loss history are
 
reviewed and adjusted to reflect fast-changing external developments,
such as
 
new regulations, geopolitical change, volatile
 
market and economic conditions,
 
and internal factors
 
(e.g., changes
in
 
business
 
strategy and
 
control framework
 
enhancements).
 
The
 
resulting
 
baseline data
 
-driven
 
frequency
 
and
 
severity
distributions
 
are
 
reviewed
 
by
 
subject
 
matter
 
experts
 
and
 
where
 
necessary
 
adjusted
 
based
 
on
 
a
 
review
 
of
 
qualitative
information
 
about
 
the business
 
environment and
 
internal control
 
factors, as
 
well as
 
expert judgment,
 
with the
 
aim of
forecasting losses.
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Risk
 
management
 
and
 
control
 
133
 
Our model is reviewed
 
regularly to maintain
 
risk sensitivity and recalibrated
 
at least annually.
 
Any changes to regulatory
capital
 
as
 
a
 
result
 
of
 
a
 
recalibration
 
or
 
methodology
 
changes
 
are
 
presented
 
to
 
FINMA
 
for
 
approval
 
prior
 
to
 
use
 
for
disclosure purposes.
AMA model governance
The
 
Group-
 
and
 
entity-specific
 
AMA
 
models
 
are
 
subject
 
to
 
an
 
independent
 
validation
 
performed
 
by
 
Model
 
Risk
Management & Control
 
in line with the Group’s
 
model risk management framework.
Expected transition of capital regime under
 
Basel III capital regulations
The AMA
 
is expected
 
to be
 
replaced by
 
the standardized
 
measurement
 
approach
 
for
 
regulatory
 
capital determination
purposes in line with the relevant Basel Committee for
 
Banking Supervision Basel III capital regulations. UBS is interacting
closely with the relevant Swiss authorities
 
to discuss the implementation
 
details and related implementation
 
timeline.
›
 
Refer to “Capital
 
planning and activities”
 
in the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section of this
 
report for more
information about the
 
development
 
of risk-weighted
 
assets
›
 
Refer to “Risk measurement”
 
in this section
 
for more information
 
about our approach
 
to model confirmation
 
procedures
›
 
Refer to the “Risk
 
factors”
 
section of this
 
report for more information
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
an
d
 
funding,
 
and
 
balance
 
sheet
 
|
 
Capital
 
management
 
135
 
Capital management
Capital management objectives, planning and
 
activities
 
Capital management
 
objectives
Audited |
An adequate
 
level of common
 
equity tier 1 (CET1)
 
capital and total
 
loss-absorbing capacity (TLAC)
 
meeting both
internal assessment and regulatory requirements
 
is a prerequisite
 
for conducting our business
 
activities.
p
 
We
 
are
 
therefore
 
committed
 
to
 
maintaining
 
a
 
strong
 
CET1
 
capital
 
and
 
TLAC
 
position
 
at
 
all
 
times,
 
in
 
order
 
to
 
meet
regulatory capital requirements and
 
our target capital ratios, and
 
to support the growth of our businesses.
As of 31 December 2022,
 
our CET1 capital ratio was 14.2% and our CET1 leverage ratio 4.42%, each above our capital
guidance
 
and
 
also
 
above
 
the
 
requirements
 
for
 
Swiss
 
systemically
 
relevant
 
banks
 
(SRBs)
 
and
 
the
 
Basel
 
Committee
 
on
Banking Supervision (the BCBS) requirements.
 
We believe that our capital strength,
 
consistent with our capital guidance,
is a source
 
of confidence
 
for our stakeholders,
 
contributes to our
 
sound credit
 
ratings and
 
is one of
 
the foundations of
our success.
 
The BCBS announced
 
the finalization of the Basel
 
III framework in December
 
2017, and published
 
the final rules on the
minimum capital
 
requirements for
 
market risk
 
from the Fundamental
 
Review of
 
the Trading
 
Book (the
 
FRTB) in
 
January
2019. In response to
 
COVID-19, the Group
 
of Central
 
Bank Governors and
 
Heads of Supervision, which
 
acts as the
 
BCBS’s
oversight body,
 
endorsed the
 
deferral of
 
the implementation
 
date by
 
one
 
year, to
 
1 January 2023.
 
The accompanying
transitional arrangements for
 
the output floor
 
were also extended
 
by one year, to 1 January
 
2028. We expect
 
the Swiss
regulations to
 
come into force in
 
2025 and
 
we continue to make
 
progress on our
 
infrastructure design
 
and operational
governance ahead
 
of the upcoming
 
adoption of
 
these rules.
 
We currently estimate
 
that the
 
revised Basel III
 
framework
would
 
lead
 
to
 
a
 
further
 
net
 
increase
 
in
 
risk-weighted
 
assets
 
(RWA)
 
of
 
around
 
USD 12bn,
 
before
 
taking
 
into
 
account
mitigating actions and not
 
reflecting the impact of the output
 
floor, which is phased in over
 
time. Our estimate includes
the
 
finalization
 
of
 
the
 
Basel
 
III
 
framework,
 
as
 
well
 
as
 
the
 
FRTB,
 
based
 
on
 
our
 
current
 
understanding
 
of
 
the
 
relevant
standards.
 
It may
 
change
 
as a
 
result of
 
new
 
or updated
 
regulatory interpretations,
 
appropriate
 
conservatism in
 
model
calibration, the
 
implementation
 
of Basel
 
III standards
 
into national
 
law,
 
changes in
 
business growth,
 
market conditions
and
 
other
 
factors. The
 
final
 
degree
 
of
 
alignment
 
between
 
the
 
Swiss
 
implementation
 
and
 
those
 
in
 
other
 
jurisdictions,
particularly those regarding
 
the treatment of historical operational losses, remains uncertain
 
at this stage.
 
›
 
Refer to the “Our strategy”
 
and “Targets, aspirations
 
and capital guidance”
 
sections of this
 
report for more information
 
about our
capital and resource guidelines
 
›
 
Refer to “We may be unable
 
to maintain our
 
capital strength”
 
in the “Risk factors”
 
section of this
 
report for more information
about capital ratio-related
 
risks
 
Capital planning and activities
Audited |
 
We
 
manage
 
our
 
balance
 
sheet,
 
RWA,
 
leverage
 
ratio
 
denominator
 
(LRD)
 
and
 
TLAC
 
ratio
 
levels
 
based
 
on
 
our
regulatory requirements,
 
within our internal limits and targets,
 
and our externally provided guidance. Our strategic focus
is on achieving an optimal
 
attribution and use of financial
 
resources between our business divisions and Group Functions,
as well
 
as between our
 
legal entities, while remaining within
 
the limits
 
defined for the Group
 
and allocated
 
to the
 
business
divisions
 
by
 
the
 
Board
 
of
 
Directors
 
(the
 
BoD).
 
These
 
resource
 
allocations,
 
in
 
turn,
 
affect
 
business
 
plans
 
and
 
earnings
projections, which are reflected
 
in our capital plans.
The annual
 
strategic planning
 
process includes
 
a capital-planning
 
component that
 
is key in
 
defining our
 
capital targets.
It is based on an attribution
 
of Group RWA and LRD
 
internal limits to the business divisions.
 
Limits and targets are
 
established at the Group
 
and business division levels,
 
and are approved by
 
the BoD at
 
least annually.
In the target
 
-setting process
 
,
 
we take into
 
account the
 
current and
 
potential future
 
TLAC requirements,
 
our aggregate
risk exposure
 
in
 
terms of
 
capital-at-risk, the
 
assessment
 
by
 
rating
 
agencies,
 
comparisons
 
with peers
 
and
 
the
 
effect of
expected accounting policy changes.
p
 
Monitoring is based on these internal limits and targets and provides
 
indications if any changes are required. Any breach
of limits in place triggers a series of required
 
remediating actions.
Group Treasury plans for and monitors consolidated TLAC information on an ongoing basis, reflecting business and legal
entity
 
requirements,
 
as
 
well
 
as
 
regulatory
 
developments
 
in
 
capital
 
regulations.
 
In
 
addition,
 
capital
 
planning
 
and
monitoring
 
are
 
performed
 
at
 
the
 
legal
 
entity
 
level
 
for
 
our
 
significant
 
subsidiaries
 
and
 
sub-groups
 
that
 
are
 
subject
 
to
prudential supervision and
 
must meet capital and other supervisory requirements.
›
 
Refer to “Capital
 
and capital ratios
 
of our significant
 
regulated subsidiaries”
 
in this section for
 
more information
 
›
 
Refer to “Statistical
 
measures”
 
in the
 
“Risk management
 
and control”
 
section of this report
 
for more information
 
about capital-at-
risk
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
an
d
 
funding,
 
and
 
balance
 
sheet
 
|
 
Capital
 
management
 
136
 
Swiss SRB total loss-absorbing capacity
 
framework
The disclosures
 
in this section
 
are provided
 
for UBS
 
Group AG
 
on a
 
consolidated basis
 
and focus
 
on key
 
developments
during the reporting
 
period and information in accordance with
 
the Basel III framework, as
 
applicable to Swiss SRBs.
Additional regulatory disclosures
 
for UBS
 
Group AG on a consolidated
 
basis are
 
provided in
 
our 31 December
 
2022 Pillar 3
Report. The Pillar 3
 
Report further includes
 
information relating to
 
our significant regulated subsidiaries
 
and sub-groups
(UBS AG
 
standalone,
 
UBS
 
Switzerland
 
AG
 
standalone,
 
UBS Europe
 
SE
 
consolidated
 
and
 
UBS Americas
 
Holding LLC
consolidated) as of 31
 
December 2022 and is available under
 
“Pillar 3 disclosures”
 
at
ubs.com/investors
.
Capital
 
and
 
other
 
regulatory
 
information
 
for
 
UBS AG
 
consolidated
 
in
 
accordance
 
with
 
the
 
Basel III
 
framework,
 
as
applicable to Swiss SRBs,
 
is provided in the combined
 
UBS Group
 
AG and UBS AG
 
Annual Report 2022, available under
“Annual reporting”
 
at
ubs.com/investors
.
Regulatory framework
The
 
Basel III
 
framework
 
came
 
into
 
effect
 
in
 
Switzerland
 
on
 
1 January
 
2013
 
and
 
is
 
embedded
 
in
 
the
 
Swiss
 
Capital
Adequacy
 
Ordinance
 
(the
 
CAO).
 
The
 
CAO also
 
includes
 
the
 
too-big-to-fail provisions
 
applicable
 
to
 
Swiss
 
SRBs, which
have been fully phased-in since 1
 
January 2020.
Under the Swiss SRB
 
framework, going and gone
 
concern requirements represent
 
the Group’s TLAC requirement. TLAC
encompasses regu
 
latory capital, such
 
as CET1,
 
loss-absorbing
 
additional tier 1
 
(AT1) and
 
tier 2 capital instruments,
 
and
liabilities
 
that
 
can
 
be
 
written down
 
or
 
converted
 
into
 
equity
 
in
 
case
 
of
 
resolution
 
or
 
for
 
the
 
purpose
 
of
 
restructuring
measures.
Capital and other instruments contributing
 
to our total loss-absorbing
 
capacity
In addition to CET1
 
capital, the following instruments contribute to our loss
 
-absorbing capacity:
–
 
loss-absorbing AT1
 
capital instruments
 
(high-
 
and low-trigger);
–
 
loss-absorbing tier
 
2 capital instruments
 
(high-
 
and low-trigger);
–
 
non-Basel III-compliant tier 2 capital instruments;
 
and
–
 
TLAC-eligible senior unsecured debt
 
instruments.
Under the Swiss SRB rules, going
 
concern capital includes CET1 and high-trigger loss-absorbing
 
AT1 capital instruments.
Our
 
existing
 
outstanding
 
low-trigger
 
loss-absorbing
 
AT1
 
capital instruments
 
are
 
available
 
to
 
meet
 
the
 
going
 
concern
capital requirements
 
until their
 
first call date.
 
As of
 
their first
 
call date,
 
these instruments
 
are eligible
 
to meet
 
the gone
concern requirements.
Outstanding
 
high
-
 
and
 
low
-
trigger
 
loss
-
absorbing
 
tier
 
2
 
capital
 
instruments,
 
non
-
Basel
 
III
-
compliant
 
tier
 
2
 
capital
instruments and
 
TLAC-eligible senior
 
unsecured debt
 
instruments are
 
eligible to
 
meet gone
 
concern requirements
 
until
one year before maturity. A maximum of 25% of the gone concern requirements can be
 
met with instruments that have
a remaining
 
maturity of between
 
one and
 
two years (i.e.,
 
are in the
 
last year of eligibility).
 
However, once
 
at least 75%
of the
 
gone
 
concern requirement
 
has been
 
met with
 
instruments that
 
have a
 
remaining
 
maturity of
 
greater
 
than two
years, all instruments that have a remaining maturity of between one and two
 
years remain eligible to be included in the
total gone concern capital.
 
›
 
Refer to “Bondholder
 
information,”
 
available at
ubs.com/investors,
 
for more information
 
about the eligibility
 
of capital and senior
unsecured debt instruments
 
and key features
 
and terms and conditions
 
of capital instruments
Total loss-absorbing capacity and
 
leverage ratio requirements
Going concern capital requirements
Under
 
the
 
Swiss
 
SRB
 
requirements,
 
total
 
going
 
concern
 
minimum
 
requirements
 
for
 
all
 
Swiss
 
SRBs
 
are
 
a
 
capital
 
ratio
requirement of 12.86%
 
of RWA and a leverage ratio requirement of 4.5%.
 
In addition to these minimum requirements,
an add-on reflecting
 
the degree of
 
systemic importance is applied, based
 
on market share
 
and LRD. The
 
applicable market
share add
 
-on requirements
 
for UBS
 
were unchanged
 
at 0.72% of
 
RWA and
 
0.25% of LRD.
 
The applicable LRD
 
add-on
requirements remained
 
unchanged at
 
0.72% of RWA
 
and 0.25% of
 
LRD, as our
 
Group LRD
 
remained within
 
the same
add-on bucket.
 
On 30
 
September 2022,
 
the Swiss
 
countercyclical capital
 
buffer was
 
reactivated,
 
at a
 
maximum level
 
of 2.5%
 
on risk-
weighted
 
positions
 
that
 
are
 
directly
 
or
 
indirectly
 
backed
 
by
 
residential
 
properties
 
in
 
Switzerland.
 
This
 
increased
 
our
minimum
 
CET1
 
capital
 
requirement
by
 
2
7
 
basis
 
points
 
as
 
of
 
31
 
December
 
2022
.
 
We
 
also
 
continued
 
to
 
apply
countercyclical buffer requirements introduced in other BCBS member
 
jurisdictions, which resulted in an additional buffer
requirement of 7 basis points as of
 
31 December 2022. Overall, countercyclical
 
capital buffers contributed 34 basis points
to our minimum CET1 capital requirement
 
as of 31 December 2022.
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
an
d
 
funding,
 
and
 
balance
 
sheet
 
|
 
Capital
 
management
 
137
 
The
 
total
 
going
 
concern
 
capital
 
requirements
 
applicable
 
are
 
14.64%
 
of
 
RWA
 
(including
 
countercyclical
 
buffer
requirements)
 
and 5.00%
 
of LRD.
 
Furthermore, of
 
the total
 
going concern
 
capital requirement
 
of 14.
 
64% of
 
RWA, at
least 10.
 
34%
 
must be
 
met with
 
CET1 capital,
 
while a
 
maximum of
 
4.3% can
 
be met
 
with high
 
-trigger loss-absorbing
AT1 capital instruments (including
 
our existing outstanding low
 
-trigger AT1 capital instruments, which
 
qualify until their
first call date as mentioned above).
 
Similarly, of the total going
 
concern leverage ratio requirement of 5.00%,
 
at least 3.5% must be met with CET1 capital,
while a maximum
 
of 1.5%
 
can be
 
met with
 
high-trigger
 
loss-absorbing
 
AT1 capital
 
instruments (including
 
our existing
outstanding low-trigger AT1
 
capital instruments, which qualify until their first
 
call date as mentioned
 
above).
Gone concern loss-absorbing
 
capacity requirements
As an
 
internationally active
 
Swiss
 
SRB,
 
UBS
 
is also
 
subject
 
to gone
 
concern loss
 
-absorbing
 
capacity requirements.
 
The
gone concern requirements also
 
include add-ons for market share
 
and LRD.
 
Under
 
the Swiss
 
SRB framework,
 
banks
 
are eligible
 
for a
 
rebate on
 
the gone
 
concern requirement
 
if they
 
take actions
that
 
facilitate
 
recovery
 
and
 
resolvability
 
beyond
 
the
 
minimum
 
requirements.
 
The
 
amount
 
of
 
the
 
rebate
 
for
 
improved
resolvability is assessed
 
annually by
 
the Swiss Financial
 
Market Supervisory Authority
 
(FINMA). Based
 
on actions
 
we had
completed
 
by
 
December
 
2021
 
to
 
improve
 
resolvability, FINMA
 
granted
 
a
 
rebate
 
on
 
the
 
gone
 
concern requirement
 
of
65%
 
of
 
the
 
aforementioned
 
maximum
 
rebate
 
in
 
the
 
third
 
quarter
 
of
 
2022,
 
with
 
an
 
effective
 
maximum
 
rebate
 
of
3.56 percentage points
 
for the RWA
 
-based requirement
 
and 1.25
 
percentage points
 
for the
 
LRD-based requirement
 
as
of 31 December 2022
 
.
 
Our gone
 
concern requirements
 
are further
 
reduced when
 
higher quality
 
capital instruments
 
(CET1 capital,
 
low-trigger
loss-absorbing AT1
 
or certain low-trigger
 
tier 2 capital instruments)
 
are used to
 
meet gone
 
concern requirements. As
 
of
31 December 2022,
 
UBS used
 
low-trigger tier 2 capital
 
to fulfill gone
 
concern requirements,
 
resulting in
 
a reduction
 
of
0.38 percentage points
 
for the RWA-based requirement.
From 1 January 2022 onward, the
 
gone concern requirement after
 
the application of the rebate for
 
resolvability measures
and the reduction for the
 
use of higher quality
 
capital instruments has been
 
floored at 10.0%
 
and 3.75% for the RWA-
and LRD-based requirements, respectively.
In November 2022,
 
the Swiss Federal Council adopted amendments to
 
the Banking Act and the
 
Banking Ordinance and
both entered
 
into force as
 
of 1 January
 
2023.
 
The amendments
 
replace the resolvability
 
discount on
 
the gone
 
concern
capital requirements
 
for systemically
 
important
 
banks
 
(SIBs),
 
including
 
UBS,
 
with a
 
reduced base
 
gone
 
concern capital
requirement. In addition, FINMA has the authority to impose a surcharge of up
 
to 25% of the base gone concern capital
requirement based on
 
obstacles to a SIB’s resolvability
 
identified in future resolvability
 
assessments. We
 
currently expect
that our total gone concern
 
requirements will remain substantially unchanged
 
in 2023 as a result of these changes.
In
 
this
 
report
,
 
we
 
refer
 
to
 
the
 
RWA
-
based
 
gone
 
concern
 
requirements
 
as
 
gone
 
concern
 
loss
-
absorbing
 
capacity
requirements and the RWA
 
-based gone concern ratio is referred to as
 
the gone concern loss
 
-absorbing capacity ratio.
The table below provides
 
the RWA-
 
and LRD-based requirements and
 
information as of 31
 
December 2022.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
an
d
 
funding,
 
and
 
balance
 
sheet
 
|
 
Capital
 
management
 
138
 
Swiss SRB going and gone
 
concern requirements
 
and information
As of 31.12.22
RWA
LRD
USD m, except where indicated
in %
in %
Required going concern capital
Total going concern
 
capital
 
14.64
1
 
46,802
 
5.00
1
 
51,423
Common equity tier 1 capital
 
10.34
 
33,060
 
3.50
2
 
35,996
of which: minimum capital
 
4.50
 
14,381
 
1.50
 
15,427
of which: buffer capital
 
5.50
 
17,577
 
2.00
 
20,569
of which: countercyclical buffer
 
0.34
 
1,102
Maximum additional tier 1 capital
 
4.30
 
13,742
 
1.50
 
15,427
of which: additional tier 1 capital
 
3.50
 
11,185
 
1.50
 
15,427
of which: additional tier 1 buffer capital
 
0.80
 
2,557
Eligible going concern capital
Total going concern
 
capital
 
18.25
 
58,321
 
5.67
 
58,321
Common equity tier 1 capital
 
14.22
 
45,457
 
4.42
 
45,457
Total loss-absorbing
 
additional tier 1 capital
3
 
4.03
 
12,864
 
1.25
 
12,864
of which: high-trigger loss-absorbing additional tier 1 capital
 
3.65
 
11,675
 
1.14
 
11,675
of which: low-trigger loss-absorbing additional tier 1 capital
0.37
 
1,189
 
0.12
1,189
Required gone concern capital
Total gone concern
 
loss-absorbing capacity
4
 
10.36
 
33,105
 
3.75
 
38,567
of which: base requirement
5
 
12.86
 
41,099
 
4.50
 
46,281
of which: additional requirement for market share
 
and LRD
 
1.44
 
4,602
 
0.50
 
5,142
of which: applicable reduction on requirements
 
(3.94)
 
(12,596)
 
(1.25)
 
(12,856)
of which: rebate granted
6
 
(3.56)
 
(11,385)
 
(1.25)
 
(12,856)
of which: reduction for usage of low-trigger
 
tier 2 capital instruments
 
(0.38)
 
(1,211)
 
0.00
 
0
Eligible gone concern capital
Total gone concern
 
loss-absorbing capacity
 
14.70
 
46,991
 
4.57
 
46,991
Total tier 2 capital
 
0.93
 
2,958
 
0.29
 
2,958
of which: low-trigger loss-absorbing tier 2 capital
 
0.76
 
2,422
 
0.24
 
2,422
of which: non-Basel III-compliant tier 2 capital
 
0.17
 
536
 
0.05
 
536
TLAC-eligible senior unsecured
 
debt
 
13.78
 
44,033
 
4.28
 
44,033
Total loss-absorbing
 
capacity
Required total loss-absorbing
 
capacity
 
25.00
 
79,907
 
8.75
 
89,990
Eligible total loss-absorbing capacity
 
32.95
 
105,312
 
10.24
 
105,312
Risk-weighted assets / leverage ratio
 
denominator
Risk-weighted assets
 
319,585
Leverage ratio denominator
 
1,028,461
1 Includes applicable
 
add-ons of
 
1.44% for
 
RWA and
 
0.50% for
 
LRD.
 
2 Our
 
minimum CET1
 
leverage ratio
 
requirement of
 
3.5% consists
 
of a 1.5%
 
base requirement,
 
a 1.5%
 
base buffer
 
capital requirement,
a 0.25% LRD add-on requirement
 
and a 0.25% market
 
share add-on requirement
 
based on our Swiss credi
 
t
 
business.
 
3 Includes outstanding
 
low-trigger loss-absorbing
 
additional tier 1 capital
 
instruments, which
are available under the Swiss systemically
 
relevant bank framework to
 
meet the going concern requirements
 
until their first call date.
 
As of their first call date, these
 
instruments are eligible to meet the
 
gone concern
requirements.
 
4 A maximum of 25% of the gone concern requirements
 
can be met with instruments that have a remaining
 
maturity of between one and two years. Once
 
at least 75% of the minimum gone concern
requirement has been met
 
with instruments that
 
have a remaining maturity
 
of greater than two years,
 
all instruments that
 
have a remaining
 
maturity of between one and
 
two years remain eligible
 
to be included in
the total gone concern
 
capital.
 
5 The gone concern
 
requirement after
 
the application
 
of the rebate
 
for resolvability
 
measures and the
 
reduction for the
 
use of higher-quality
 
capital instruments
 
is floored at
 
10%
and 3.75% for the
 
RWA-
 
and LRD-based requirements,
 
respectively.
 
This means
 
that the combined
 
reduction may
 
not exceed 4.3 percentage
 
points for the RWA
 
-based requirement
 
of 14.3% and 1.25
 
percentage
points for the LRD-based requirement of 5.0%.
 
6 Based on the actions we completed
 
up to December 2021 to improve resolvability,
 
FINMA granted an increase in the rebate
 
on the gone concern requirement from
55.0% to 65.0%
 
of the maximum
 
rebate, effective
 
1 July 2022,
 
with an
 
effective
 
maximum rebate
 
of 1.25 percentage
 
points for t
 
he LRD-based
 
requirements
 
and – given
 
the risk density
 
of 35%
 
underlying the
regulatory requirements – an
 
effective maximum rebate
 
of 3.56 percentage points for the
 
RWA-based requirements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
an
d
 
funding,
 
and
 
balance
 
sheet
 
|
 
Capital
 
management
 
139
 
Total loss-absorbing capacity
Swiss SRB going and gone
 
concern information
USD m, except where indicated
31.12.22
31.12.21
Eligible going concern capital
Total going concern
 
capital
 
58,321
 
60,488
Total tier 1 capital
 
58,321
 
60,488
Common equity tier 1 capital
 
45,457
 
45,281
Total loss-absorbing
 
additional tier 1 capital
 
12,864
 
15,207
of which: high-trigger loss-absorbing additional tier 1 capital
 
11,675
 
12,783
of which: low-trigger loss-absorbing additional tier 1 capital
 
1,189
 
2,425
Eligible gone concern capital
Total gone concern
 
loss-absorbing capacity
 
46,991
 
44,264
Total tier 2 capital
 
2,958
 
3,144
of which: low-trigger loss-absorbing tier 2 capital
 
2,422
 
2,596
of which: non-Basel III-compliant tier 2 capital
 
536
 
547
TLAC-eligible senior unsecured
 
debt
 
44,033
 
41,120
Total loss-absorbing
 
capacity
Total loss-absorbing
 
capacity
 
105,312
 
104,752
Risk-weighted assets / leverage ratio
 
denominator
Risk-weighted assets
 
319,585
 
302,209
Leverage ratio denominator
 
1,028,461
 
1,068,862
Capital and loss-absorbing capacity
 
ratios (%)
Going concern capital ratio
 
18.2
 
20.0
of which: common equity tier 1 capital ratio
 
14.2
 
15.0
Gone concern loss-absorbing capacity ratio
 
14.7
 
14.6
Total loss-absorbing
 
capacity ratio
 
33.0
 
34.7
Leverage ratios (%)
Going concern leverage ratio
 
5.7
 
5.7
of which: common equity tier 1 leverage ratio
 
4.42
 
4.24
Gone concern leverage ratio
 
4.6
 
4.1
Total loss-absorbing
 
capacity leverage ratio
 
10.2
 
9.8
 
Audited |
 
 
Reconciliation of IFRS equity
 
to Swiss SRB common
 
equity tier 1 capital
USD m
31.12.22
31.12.21
Total IFRS equity
57,218
61,002
Equity attributable to non-controlling
 
interests
(342)
(340)
Defined benefit plans, net of tax
(311)
(270)
Deferred tax assets recognized for tax loss carry-
 
forwards
(4,077)
(4,565)
Deferred tax assets on temporary differences,
 
excess over threshold
(64)
(49)
Goodwill, net of tax
1
(5,754)
(5,838)
Intangible assets, net of tax
(150)
(180)
Compensation-related components (not recognized
 
in net profit)
(2,287)
(1,700)
Expected losses on advanced internal ratings
 
-based portfolio less provisions
(471)
(482)
Unrealized (gains) / losses from cash flow hedges,
 
net of tax
4,234
(628)
Own credit related to (gains) / losses on financial liabilities
 
measured at fair value that existed at the
 
balance sheet date,
 
net of tax
(523)
315
Own credit related to (gains) / losses on derivative
 
financial instruments that existed at the balance
 
sheet date
(105)
(50)
Unrealized gains related to financial assets at fair value through
 
OCI, net of tax
0
(68)
Prudential valuation adjustments
(201)
(167)
Accruals for dividends to shareholders
(1,683)
(1,700)
Other
(29)
1
Total common equity tier 1 capital
45,457
45,281
1 Includes goodwill related to significant
 
investments in financial
 
institutions of USD
20
m as of 31 December 2022
 
(31 December 2021:
 
USD
22
m) presented on the balance
 
sheet line Investments in associates.
p
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
an
d
 
funding,
 
and
 
balance
 
sheet
 
|
 
Capital
 
management
 
140
 
Total loss-absorbing capacity and movement
 
Our total loss-absorbing capacity increased
 
by USD 0.6bn
 
to USD 105.3bn as of 31 December 2022
 
.
 
Going concern capital and movement
Audited
 
|
Our CET1
 
capital
 
mainly consists
 
of: share
 
capital;
 
share
 
premium, which
 
primarily consists
 
of additional
 
paid-in capital
related to
 
shares issued;
 
and retained
 
earnings.
 
A detailed
 
reconciliation
 
of International
 
Financial
 
Reporting Standards
 
(IFRS)
equity to CET1 capital
 
is provided in
 
the “Reconciliation
 
of IFRS equity to Swiss
 
SRB common equity
 
tier 1 capital”
 
table.
 
Our CET1 capital increased by USD
0.2
bn to USD
45.5
bn as of 31 December 2022, mainly as a result of operating
 
profit
before
 
tax
 
of
 
USD
9.6
bn
 
with
 
associated
 
current
 
tax
 
expenses
 
of
 
USD
1.4
bn,
 
partly
 
offset
 
by
 
share
 
repurchases
 
of
USD
5.6
bn under
 
our share
 
repurchase programs,
 
dividend accruals
 
of USD
1.7
bn, negative foreign
 
currency effects
 
of
USD
0.5
bn and compensation- and
 
own share-related capital components
 
of USD
0.3
bn.
›
 
Refer to “UBS shares”
 
in this section
 
for more information
 
about our share repurchase
 
programs
Our
 
loss-absorbing
 
AT1
 
capital
 
decreased
 
by
 
USD
2.3
bn
 
to
 
USD
12.9
bn,
 
mainly
 
driven
 
by
 
our
 
announcement
 
on
5 December 2022
 
that we
 
intended
 
to redeem
 
an AT1
 
capital instrument
 
on
 
31 January
 
2023,
 
the first
 
call date
 
(ISIN
CH0400441280, with a nominal amount of USD
2.0
bn, issued on 31 January 2018; this instrument ceased to be eligible
as AT1 capital when the call was announced in December 2022), a call of a
 
USD
1.1
bn equivalent AT1 capital instrument
denominated in
 
euro,
 
and interest
 
rate risk hedge,
 
foreign currency translation
 
and other
 
effects. This was
 
partly offset
by
 
two
 
issuances
 
of
 
AT1
 
capital
 
instruments
 
denominated
 
in
 
US
 
dollars
 
and
 
Swiss
 
francs
 
amounting
 
to
 
USD
1.8
bn
equivalent.
p
 
Gone concern loss-absorbing
 
capacity and movement
Audited |
Our total gone concern loss-absorbing capacity increased
 
by USD
2.7
bn
 
to USD
47.0
bn as
 
of 31 December 2022
and included USD
44.0
bn of TLAC-eligible
 
senior unsecured
 
debt.
p
 
The
 
increase
 
was
 
mainly
 
due
 
to
 
21
 
issuances
 
of
 
TLAC-eligible
 
senior
 
unsecured
 
debt
 
instruments
 
denominated
 
in
US dollars, euro, yen
 
and Australian dollars
 
amounting to USD
 
15.2bn, partly offset
 
by four calls of TLAC-eligible
 
senior
unsecured
 
debt
 
instruments
 
denominated
 
in
 
US
 
dollars amounting
 
to
 
USD 6.3bn,
 
as
 
well
 
as
 
interest
 
rate
 
risk hedge,
foreign currency translation and
 
other effects.
Loss-absorbing capacity and leverage ratios
Our CET1 capital ratio decreased
 
to 14.2% from 15.0%,
 
mainly reflecting a USD 17.4bn
 
increase in RWA.
Our CET1 leverage ratio increased to 4.42%
 
from 4.24%, predominantly due
 
to a USD 40.4bn decrease in
 
the LRD.
Our gone
 
concern loss
 
-absorbing capacity
 
ratio increased
 
to 14.7%
 
from 14.6%,
 
due to
 
an increase
 
in gone
 
concern
loss-absorbing capacity of USD 2.7bn,
 
partly offset by the aforementioned increase in
 
RWA.
Our gone concern leverage ratio
 
increased to 4.6% from 4.1%,
 
driven by the aforementioned increase in gone
 
concern
loss-absorbing capacity and the aforementioned
 
decrease in the LRD.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
an
d
 
funding,
 
and
 
balance
 
sheet
 
|
 
Capital
 
management
 
141
 
Swiss SRB total loss
 
-absorbing capacity
 
movement
USD m
Going concern capital
Swiss SRB
Common equity tier 1 capital
 
as of 31.12.21
 
45,281
Operating profit before tax
 
9,604
Current tax (expense) / benefit
 
(1,448)
Share repurchase programs
 
(5,602)
Accruals for proposed dividends to shareholders
 
(1,683)
Foreign currency translation effects, before
 
tax
 
(529)
Compensation- and own share-related capital components
 
(258)
Other
 
93
Common equity tier 1 capital
 
as of 31.12.22
 
45,457
Loss-absorbing additional tier 1 capital
 
as of 31.12.21
 
15,207
Issuance of high-trigger loss-absorbing additional tier 1 capital
 
1,789
Call of high-trigger loss-absorbing additional tier 1 capital
1
 
(2,000)
Call of low-trigger loss-absorbing additional tier 1 capital
 
(1,121)
Interest rate risk hedge, foreign
 
currency translation and other
 
effects
 
(1,011)
Loss-absorbing additional tier 1 capital
 
as of 31.12.22
 
12,864
Total going concern
 
capital as of 31.12.21
 
60,488
Total going concern
 
capital as of 31.12.22
 
58,321
Gone concern loss-absorbing capacity
Tier 2 capital as of 31.12.21
 
3,144
Interest rate risk hedge, foreign
 
currency translation and other
 
effects
 
(185)
Tier 2 capital as of 31.12.22
 
2,958
TLAC-eligible senior unsecured
 
debt as of 31.12.21
 
41,120
Issuance of TLAC-eligible senior unsecured
 
debt
 
15,237
Call of TLAC-eligible senior unsecured debt
 
(6,250)
Interest rate risk hedge, foreign
 
currency translation and other
 
effects
 
(6,075)
TLAC-eligible senior unsecured
 
debt as of 31.12.22
 
44,033
Total gone concern
 
loss-absorbing capacity as of 31.12.21
 
44,264
Total gone concern
 
loss-absorbing capacity as of 31.12.22
 
46,991
Total
 
loss-absorbing capacity
Total loss-absorbing
 
capacity as of 31.12.21
 
104,752
Total loss-absorbing
 
capacity as of 31.12.22
 
105,312
1 On 5 December 2022, we announced
 
our intention to redeem an
 
AT1 capital instrument
 
on 31 January 2023, the first
 
call date (ISIN CH0400441280).
 
This instrument ceased to
 
be eligible as AT1 capital when
 
the
call was announced.
 
Additional information
Active management of sensitivity to
 
foreign exchange movements
Group
 
Treasury
 
is
 
mandated
 
to
 
minimize
 
adverse
 
effects
 
from
 
changes
 
in
 
foreign
 
currency
 
rates on
 
our
 
CET1
 
capital
and / or
 
CET1
 
capital ratio.
 
A
 
significant
 
portion
 
of
 
our
 
CET1
 
capital and
 
RWA
 
is
 
denominated
 
in
 
Swiss
 
francs,
 
euro,
pounds sterling and
 
other currencies.
 
In order to
 
hedge the CET1
 
capital ratio,
 
CET1 capital
 
needs to have
 
foreign currency
exposure, leading to
 
foreign currency rates sensitivity of CET1
 
capital.
 
Consequently,
 
it is not possible to simultaneously
 
fully hedge CET1
 
capital and the CET1
 
capital ratio. As the proportion
of
 
RWA
 
denominated
 
in
 
currencies
 
other
 
than
 
the
 
US
 
dollar
 
outweighs
 
CET1
 
capital
 
in
 
such
 
currencies,
 
a
 
significant
appreciation of
 
the US
 
dollar against
 
such currencies could
 
benefit our
 
capital ratios, while
 
a significant depreciation
 
of
the US dollar against these currencies
 
could adversely affect our capital ratios.
The Group
 
Asset and Liability Committee,
 
a committee of
 
the Group
 
Executive Board,
 
has mandated Group
 
Treasury to
adjust the
 
currency mix
 
of CET1 capital,
 
within limits set
 
by the BoD,
 
to balance
 
the effect of
 
foreign exchange movements
on CET1 capital and the CET1 capital
 
ratio. Limits are in place
 
for the sensitivity of both CET1 capital
 
and the CET1 capital
ratio to an appreciation or depreciation
 
of 10%
 
in the value of the US dollar against
 
other currencies.
Sensitivity to currency movements
 
Risk-weighted assets
We
 
estimate
 
that
 
a
 
10%
 
depreciation
 
of
 
the
 
US
 
dollar
 
against
 
other
 
currencies
 
would
 
have
 
increased
 
our
 
RWA
 
by
USD 13bn
 
and
 
our
 
CET1
 
capital
 
by
 
USD 1.4bn
 
as
 
of
 
31 December
 
2022
 
(31 December
 
2021:
 
USD 13bn
 
and
USD 1.4bn,
 
respectively)
 
and decreased
 
our CET1
 
capital ratio
 
13 basis
 
points
 
(31 December
 
2021:
 
15 basis points).
Conversely,
 
we estimate
 
that a
 
10%
 
appreciation
 
of the
 
US dollar
 
against other
 
currencies
 
would
 
have decreased
 
our
RWA by
 
USD 12bn
 
and our
 
CET1
 
capital by
 
USD 1.3bn
 
as of
 
31 December
 
2022
 
(31 December 2021:
 
USD 11bn
 
and
USD 1.3bn, respectively) and increased
 
our CET1 capital ratio 13
 
basis points (31 December 2021
 
:
 
14
 
basis points).
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
an
d
 
funding,
 
and
 
balance
 
sheet
 
|
 
Capital
 
management
 
142
 
Leverage ratio denominator
Our leverage ratio is also sensitive to foreign exchange movements as a result of the currency mix of our capital and LRD.
When adjusting the currency
 
mix in capital, potential effects
 
on the going
 
concern leverage ratio are taken into account
and the sensitivity of the going
 
concern leverage ratio to an
 
appreciation
 
or depreciation
 
of 10% in the value
 
of the US
dollar against other currencies is actively
 
monitored.
We
 
estimate
 
that
 
a
 
10%
 
depreciation
 
of
 
the
 
US
 
dollar
 
against
 
other
 
currencies
 
would
 
have
 
increased
 
our
 
LRD
 
by
USD 63bn
 
as
 
of
 
31 December
 
2022
 
(31 December
 
2021:
 
USD 63bn)
 
and
 
decreased
 
our
 
Swiss
 
SRB
 
going
 
concern
leverage ratio 17 basis points (31 December
 
2021: 15 basis
 
points)
 
.
 
Conversely, we estimate that a 10% appreciation of
the US dollar against other currencies would have decreased our LRD by USD 57bn (31 December
 
2021: USD
 
57bn) and
increased our Swiss SRB
 
going concern leverage ratio 17 basis
 
points (31 December
 
2021:
 
16 basis points)
 
.
The aforementioned sensitivities
 
do not consider foreign
 
currency translation effects related
 
to defined benefit
 
plans other
than those related to the currency translation
 
of the net equity of foreign operations.
Estimated effect on capital from
 
litigation, regulatory and
 
similar matters subject to provisions
 
and contingent liabilities
We have estimated the loss in capital that we could
 
incur as a result of the risks associated with the matters described in
“Note 17 Provisions and contingent liabilities” in the “Consolidated financial
 
statements”
 
section of this report. We have
employed for
 
this purpose
 
the advanced
 
measurement
 
approach
 
(AMA)
 
methodology that
 
we use
 
when
 
determining
the capital requirements associated
 
with operational risks, based on
 
a 99.9% confidence level over a 12-month horizon.
The methodology takes into consideration UBS and industry experience for the AMA operational risk categories to which
those matters correspond, as well as the
 
external environment affecting risks of these types,
 
in isolation from other areas.
On this
 
basis,
 
we estimate the
 
maximum
 
loss in
 
capital that
 
we could
 
incur over
 
a 12-month
 
period
 
as a
 
result of
 
our
risks associated with these operational risk
 
categories at USD 4.4bn as of
 
31 December 2022, unchanged compared with
the prior year
 
-end.
 
This estimate is
 
not related
 
to and
 
does not
 
take into account
 
any provisions
 
recognized
 
for any
 
of
these matters and does
 
not constitute a subjective assessment of our
 
actual exposure in any of
 
these matters.
›
 
Refer to “Non-financial
 
risk” in the “Risk
 
management and
 
control”
 
section of this report
 
for more information
›
 
Refer to “Note 17
 
Provisions and contingent
 
liabilities”
 
in the “Consolidated
 
financial statements”
 
section of this report
 
for more
information
Capital and capital
 
ratios of our significant regulated subsidiaries
UBS Group
 
AG is a
 
holding
 
company conducting
 
substantially all
 
operations through
 
UBS AG and
 
subsidiaries thereof.
UBS Group AG and UBS AG have contributed a significant portion of their respective capital to, and provided
 
substantial
liquidity to, subsidiaries. Many of these
 
subsidiaries are subject to
 
regulations requiring compliance with minimum
 
capital,
liquidity
 
and
 
similar
 
requiremen
ts.
 
Regulatory
 
capital
 
components
 
and
 
capital
ratios
 
of
 
our
 
significant
 
regulated
subsidiaries
 
determined
 
under
 
the
 
regulatory
 
framework
 
of
 
each
 
subsidiary’s
 
home
 
jurisdiction
 
are
 
provided
 
in
 
the
“Financial and
 
regulatory
 
key figures
 
for our
 
significant
 
regulated
 
subsidiaries
 
and
 
sub-groups”
 
section of
 
this
 
report.
Supervisory
 
authorities
 
generally
 
have
 
discretion
 
to
 
impose higher
 
requirements,
 
or to
 
otherwise
 
limit the
 
activities of
subsidiaries. Supervisory
 
authorities also
 
may require
 
entities to
 
measure capital
 
and leverage ratios
 
on a
 
stressed basis,
and
 
may limit
 
the ability
 
of the
 
entity to
 
engage
 
in new
 
activities or
 
take capital
 
actions
 
based
 
on the
 
results of
 
those
tests.
 
›
 
Refer to the 31 December
 
2022 Pillar 3 Report,
 
available under “Pillar
 
3 disclosures” at
ubs.com/investors,
for more capital and
other regulatory information
 
about our significant
 
regulated subsidiaries
 
and sub-groups
Joint liability of UBS AG and UBS
 
Switzerland AG
In June
 
2015, upon the transfer
 
of the Personal &
 
Corporate Banking and Global Wealth
 
Management businesses booked
in
 
Switzerland
 
from
 
UBS AG
 
to
 
UBS
 
Switzerland
 
AG,
 
UBS AG
 
and
 
UBS
 
Switzerland
 
AG
 
assumed
 
joint
 
liability
 
for
obligations
 
transferred
 
to UBS
 
Switzerland
 
AG
 
and
 
existing
 
at UBS
 
AG,
 
respectively.
 
Under
 
certain circumstances,
 
the
Swiss
 
Banking
 
Act
 
and
 
FINMA’s
 
Banking
 
Insolvency
 
Ordinance
 
authorize
 
FINMA
 
to
 
modify,
 
extinguish
 
or
 
convert
 
to
common equity liabilities of a bank
 
in connection with a resolution
 
or insolvency of such bank.
The joint liability amounts have declined as obligations matured, terminated or were novated following the transfer
 
date.
As
 
of
 
31 December
 
2022,
 
the
 
liability
 
of
 
UBS
 
Switzerland
 
AG
 
amounted
 
to
 
CHF 4.0bn
 
(USD 4.3bn),
 
a
 
decrease
 
of
CHF 1.2bn
 
(USD 1.4bn)
 
compared
 
with
 
31 December
 
2021.
 
The
 
respective liability
 
of
 
UBS AG
 
has
 
been
 
substantially
extinguished.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
an
d
 
funding,
 
and
 
balance
 
sheet
 
|
 
Capital
 
management
 
143
 
Risk-weighted assets
RWA development in 2022
During 2022,
 
RWA increased by USD
 
17.4bn to USD 319.6bn,
 
primarily driven by increases of USD
 
10.4bn in credit and
counterparty credit risk RWA,
 
USD 4.7bn
 
in operational risk RWA, and
 
USD 2.4bn in market risk RWA.
 
›
 
Refer to the 31 December
 
2022 Pillar 3 Report,
 
available under “Pillar
 
3 disclosures” at
ubs.com/investors,
 
for more information
about RWA movements
 
and definitions
 
of RWA movement
 
key drivers
 
Movement in risk-
 
weighted assets by key
 
driver
USD bn
RWA as of
31.12.21
Currency
effects
Methodology
and policy
changes
Model
updates /
changes
Regulatory
add-ons
Asset size
and other
1
RWA as of
31.12.22
Credit and counterparty credit
 
risk
2
 
190.1
 
(3.6)
 
0.1
 
6.7
 
0.3
 
6.9
 
200.5
Non-counterparty-related risk
3
 
24.3
 
(0.2)
 
0.1
 
24.2
Market risk
 
11.1
 
1.2
 
(2.4)
 
2.3
 
1.3
 
13.5
Operational risk
 
76.7
 
4.6
 
0.0
 
81.4
Total
 
302.2
 
(3.8)
 
1.2
 
9.0
 
2.6
 
8.3
 
319.6
1 Includes the
 
Pillar 3 categories
 
“Asset
 
size,” “Credit
 
quality of counterparties,”
 
“Acquisitions
 
and disposals”
 
and “Other.”
 
For more
 
information,
 
refer to the
 
31 December
 
2022 Pillar
 
3 report,
 
available
 
under
“Pillar 3 disclosures”
 
at ubs.com/investors.
 
2 Includes settlement
 
risk, credit
 
valuation adjustments,
 
equity exposures in
 
the banking book,
 
investments
 
in funds and
 
securitization
 
exposures in the
 
banking book.
 
3 Non-counterparty-related risk
 
includes deferred tax assets
 
recognized for temporary
 
differences, property,
 
equipment, software
 
and other items.
Credit and counterparty credit risk
Credit and counterparty
 
credit
 
risk RWA increased by
 
USD 10.4bn to USD 200.5bn as
 
of 31 December 2022. This
 
increase
was mainly driven by model
 
updates of USD 6.7bn and asset
 
size increases of USD 6.4bn, partly offset
 
by currency effects
of USD 3.6bn. Model updates resulted in
 
an increase of USD 6.7bn, mainly
 
relating to structured margin loans and
 
similar
products
 
in Global
 
Wealth Management,
 
prime brokerage
 
clients, private
 
equity and
 
hedge fund
 
financing trades
 
and
structured margin loans in
 
the Investment Bank, and mortgage loans
 
in Personal & Corporate Banking.
Asset
 
size
 
increased
 
by
 
USD 6.4bn,
 
mainly
 
due
 
to
 
higher
 
RWA
 
from
 
loans
 
and
 
loan
 
commitments
 
in
 
Global
 
Wealth
Management and
 
,
 
to a lesser extent,
 
in Personal
 
& Corporate Banking,
 
partly offset by
 
lower RWA
 
from loans and
 
loan
commitments in the Investment Bank.
 
Movement in credit and
 
counterparty credit
 
risk RWA
 
by key driver
1
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Group
 
Functions
Group
Total credit and counterparty
 
credit risk RWA as of 31.12.21
56.9
63.0
3.2
60.5
6.4
190.1
Asset size
8.2
2.9
(0.1)
(4.9)
0.3
6.4
Asset quality
0.3
(1.5)
0.0
0.0
0.4
(0.7)
Model updates
2.1
1.3
0.0
3.3
0.0
6.7
Methodology and policy changes
0.1
0.0
0.0
0.0
0.0
0.1
Regulatory add-ons
0.0
0.0
0.0
0.3
0.0
0.3
Acquisitions and disposals
1.2
0.0
0.0
0.0
0.0
1.2
Foreign exchange movements
(0.5)
(0.9)
(0.1)
(1.5)
(0.6)
(3.6)
Other
0.0
0.0
0.0
0.0
0.0
0.0
Total movement
11.5
1.9
(0.2)
(2.8)
0.1
10.4
Total credit and counterparty
 
credit risk RWA as of 31.12.22
68.4
64.9
3.0
57.7
6.5
200.5
1 Refer to the 31 December 2022
 
Pillar 3 Report, available
 
under “Pillar 3 disclosures”
 
at ubs.com/investors,
 
for the definitions of credit
 
and counterparty credit risk RWA
 
movement categories.
›
 
Refer to the “Risk
 
management and
 
control” section of
 
this report and
 
the 31 December
 
2022 Pillar 3 Report,
 
available under
“Pillar 3 disclosures” at
ubs.com/investors
, for more information
 
about credit and
 
counterparty
 
credit risk developments
Market risk
Market risk RWA
 
increased by
 
USD 2.4bn
 
to USD 13.5bn as of
 
31 December 2022
 
,
 
driven by an
 
increase of USD 2.3bn
in regulatory add-ons,
 
reflecting updates from the monthly risks-not-in-VaR
 
assessment and an increase of USD
 
1.3bn in
asset size and
 
other movements
 
related to
 
higher average
 
regulatory and
 
stressed value
 
-at-risk levels in
 
the Investment
Bank’s Global Markets business on the back
 
of heightened market volatility in
 
the first half of 2022. These increases were
partly offset by
 
decreases of
 
USD 2.4bn
 
from changes
 
to the
 
value-at-risk (VaR)
 
model, and
 
such decreases were
 
partly
offset by USD 1.2bn arising from the introduction of a FINMA-agreed temporary measure to offset a VaR-model-change-
related RWA decrease that went
 
live in the fourth quarter of 2022. We are in discussions with
 
FINMA regarding material
updates
 
to
 
the
 
VaR
 
model
 
in
 
2023,
 
which
 
would
 
replace
 
the
 
aforementioned
 
temporary
 
measure
 
and
 
the
 
currently
applied add-on related
 
to time decay.
 
›
 
Refer to the “Risk
 
management and
 
control” section of
 
this report and
 
the 31 December
 
2022 Pillar 3 Report,
 
available under
“Pillar 3 disclosures” at
ubs.com/investors,
 
for more information
 
about market
 
risk developments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
an
d
 
funding,
 
and
 
balance
 
sheet
 
|
 
Capital
 
management
 
144
 
Operational risk
 
Operational risk RWA increased
 
by USD 4.7bn
 
to USD 81.4bn as of 31
 
December 2022. Following a review with
 
FINMA
regarding the French
 
cross-border matter,
 
we reflected
 
additional operational risk RWA
 
of USD 4.1bn
 
in the first half of
2022.
 
In the
 
fourth quarter
 
of 2022,
 
we reflected
 
an increase
 
of USD
 
0.5bn
 
driven by
 
the annual
 
recalibration
 
of the
advanced measurement approach
 
(AMA) model used
 
for the calculation of operational risk capital.
›
 
Refer to “Advanced
 
measurement
 
approach model”
 
in the “Risk management
 
and control”
 
section of this
 
report for more
information about the
 
AMA model
Outlook
 
We
 
expect that
 
regulatory-driven
 
updates
 
to models
 
will result
 
in
 
an RWA
 
increase
 
of
 
around
 
USD 4bn
 
in 2023.
 
The
extent and
 
timing
 
of RWA
 
changes
 
may vary
 
as
 
model updates
 
are completed
 
and
 
receive regulatory
 
approval,
 
along
with changes
 
in the composition
 
of the relevant portfolios.
 
In addition,
 
business growth
 
and changes
 
in market factors
are expected to
 
increase RWA
 
at the beginning
 
of 2023, following
 
a period of
 
lower levels of client activity
 
and market
volatility toward the end of
 
the fourth quarter of 2022
 
.
 
›
 
Refer to the “Regulatory
 
and legal developments”
 
section of this
 
report for more information
 
 
 
Risk-weighted assets
 
by business division
 
and Group Functions
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Manage-
ment
Investment
Bank
Group
 
Functions
Total
RWA
31.12.22
Credit and counterparty credit
 
risk
1
 
68.4
 
64.9
 
3.0
 
57.7
 
6.5
 
200.5
Non-counterparty-related risk
2
 
5.9
 
1.9
 
0.6
 
3.7
 
12.1
 
24.2
Market risk
 
1.6
 
0.0
 
10.1
 
1.8
 
13.5
Operational risk
 
37.6
 
9.1
 
3.2
 
21.3
 
10.1
 
81.4
Total
 
113.5
 
75.9
 
6.7
 
92.8
 
30.6
 
319.6
31.12.21
Credit and counterparty credit
 
risk
1
 
56.9
 
63.0
 
3.2
 
60.5
 
6.4
 
190.1
Non-counterparty-related risk
2
 
6.2
 
2.0
 
0.6
 
3.5
 
12.0
 
24.3
Market risk
 
1.6
 
0.0
 
8.1
 
1.5
 
11.1
Operational risk
 
35.2
 
8.1
 
3.0
 
20.2
 
10.3
 
76.7
Total
 
99.8
 
73.2
 
6.9
 
92.2
 
30.1
 
302.2
31.12.22 vs 31.12.21
Credit and counterparty credit
 
risk
1
 
11.5
 
1.9
 
(0.2)
 
(2.8)
 
0.1
 
10.4
Non-counterparty-related risk
2
 
(0.3)
 
(0.1)
 
0.0
 
0.2
 
0.2
 
0.0
Market risk
 
0.0
 
0.0
 
2.1
 
0.3
 
2.4
Operational risk
 
2.5
 
1.1
 
0.1
 
1.1
 
(0.2)
 
4.6
Total
 
13.6
 
2.8
 
(0.1)
 
0.6
 
0.4
 
17.4
1 Includes
 
settlement risk,
 
credit valuation
 
adjustments,
 
equity exposures
 
in the
 
banking
 
book, investments
 
in funds
 
and securitization
 
exposures in
 
the banking
 
book.
 
2 Non
 
-counterparty-related
 
risk includes
deferred tax assets recognized for temporary differences (31 December 2022: USD 11.4bn; 31 December 2021: USD 11.4bn), as well as property, equipment, software and ot
 
her items (31 December 2022: USD 12.9bn;
31 December 2021: USD 12.9bn).
 
 
Leverage ratio denominator
The LRD decreased by USD 40.4bn to USD 1,028.5bn as of
 
31 December 2022, driven by currency
 
effects of USD 24.5bn
and a USD 15.9bn
 
decrease due to asset size and
 
other movements.
 
Movement in leverage ratio
 
denominator
 
by key driver
USD bn
LRD as of
 
31.12.21
Currency
 
effects
Asset size and
 
other
LRD as of
 
31.12.22
On-balance sheet exposures (excluding derivatives and securities
 
financing transactions)
1
 
847.4
 
(17.3)
 
(14.1)
 
816.0
Derivatives
 
90.9
 
(3.5)
 
2.9
 
90.3
Securities financing transactions
 
109.2
 
(3.1)
 
(7.4)
 
98.6
Off-balance sheet items
 
32.8
 
(0.5)
 
2.2
 
34.4
Deduction items
 
(11.5)
 
0.1
 
0.6
 
(10.8)
Total
 
1,068.9
 
(24.5)
 
(15.9)
 
1,028.5
1 The exposures exclude derivative financial instruments, cash collateral receivables
 
on derivative instruments, receivables from securities financing transactions,
 
and margin loans, as well as prime brokerage receivables
and financial assets at fair value
 
not held for trading, both
 
related to securities financing
 
transactions. These
 
exposures are presented
 
separately under Derivatives
 
and Securities financing transactions
 
in this table.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
an
d
 
funding,
 
and
 
balance
 
sheet
 
|
 
Capital
 
management
 
145
 
The LRD movements described below
 
exclude currency effects.
 
On-balance sheet
 
exposures (excluding derivatives
 
and securities financing
 
transactions)
 
decreased by
 
USD 14.1bn, mainly
driven by lower
 
trading portfolio
 
assets in the
 
Investment Bank,
 
lower central bank
 
balances, and
 
a decrease in
 
lending
assets, mainly in Global Wealth Management,
 
partly offset by purchases
 
of high-quality liquid asset securities.
Derivatives
 
increased by USD
 
2.9bn, primarily reflecting market-driven movements,
 
partly offset by lower client volumes,
in the Investment Bank.
Securities financing transactions
 
decreased by USD 7.4bn,
 
mainly due to lower client activity
 
levels and lower brokerage
receivables in the Investment Bank,
 
as well as trade roll-offs in Group
 
Treasury.
 
Off-balance
 
sheet
 
items
 
increased
 
by
 
USD 2.2bn,
 
mainly
 
driven
 
by
 
higher
 
unutilized
 
credit
 
lines
 
in
 
Global
 
Wealth
Management, and an
 
increase in forward starting reverse repurchase
 
agreements in Group Treasury.
 
›
 
Refer to “Balance sheet
 
and off-balance
 
sheet” in this
 
section for more information
 
about balance sheet
 
movements
 
Leverage ratio denominator
 
by business division
 
and Group Functions
USD bn
Global Wealth
Management
 
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Group
 
Functions
Total
 
31.12.22
Total IFRS assets
 
388.5
 
235.2
 
17.3
 
391.3
 
71.9
 
1,104.4
Difference in scope of consolidation
1
 
0.0
 
0.0
 
(13.2)
 
(0.1)
 
0.0
 
(13.3)
Less: derivatives and securities financing transactions
2
 
(23.7)
 
(11.9)
 
(0.1)
 
(201.7)
 
(37.7)
 
(275.0)
On-balance sheet exposures
 
364.8
 
223.4
 
4.0
 
189.5
 
34.2
 
816.0
Derivatives
 
5.4
 
1.5
 
0.0
 
80.0
 
3.3
 
90.3
Securities financing transactions
 
20.5
 
10.8
 
0.1
 
40.4
 
26.8
 
98.6
Off-balance sheet items
 
8.8
 
16.6
 
6.9
 
2.1
 
34.4
Items deducted from Swiss SRB tier 1 capital
 
(5.2)
 
(0.2)
 
(1.2)
 
(0.4)
 
(3.9)
 
(10.8)
Total
 
394.4
 
252.1
 
2.9
 
316.6
 
62.6
 
1,028.5
31.12.21
Total IFRS assets
 
395.2
 
225.4
 
25.6
 
346.4
 
124.5
 
1,117.2
Difference in scope of consolidation
1
 
0.0
 
0.0
 
(21.5)
 
(0.1)
 
0.0
 
(21.6)
Less: derivatives and securities financing transactions
2
 
(25.9)
 
(11.8)
 
(0.1)
 
(159.2)
 
(51.2)
 
(248.2)
On-balance sheet exposures
 
369.3
 
213.6
 
4.1
 
187.1
 
73.3
 
847.4
Derivatives
 
5.8
 
1.4
 
0.0
 
79.0
 
4.7
 
90.9
Securities financing transactions
 
22.6
 
10.9
 
0.0
 
45.7
 
29.9
 
109.2
Off-balance sheet items
 
7.2
 
17.5
 
0.0
 
7.6
 
0.5
 
32.8
Items deducted from Swiss SRB tier 1 capital
 
(5.3)
 
(0.2)
 
(1.2)
 
(0.3)
 
(4.4)
 
(11.5)
Total
 
399.6
 
243.2
 
2.9
 
319.2
 
104.0
 
1,068.9
31.12.22 vs 31.12.21
Total IFRS assets
 
(6.7)
 
9.9
 
(8.3)
 
44.9
 
(52.6)
 
(12.8)
Difference in scope of consolidation
1
 
0.0
 
0.0
 
8.3
 
0.0
 
0.0
 
8.3
Less: derivatives and securities financing transactions
2
 
2.2
 
(0.1)
 
0.0
 
(42.5)
 
13.5
 
(26.9)
On-balance sheet exposures
 
(4.5)
 
9.8
 
(0.1)
 
2.4
 
(39.1)
 
(31.4)
Derivatives
 
(0.4)
 
0.1
 
0.0
 
1.0
 
(1.3)
 
(0.7)
Securities financing transactions
 
(2.1)
 
(0.1)
 
0.0
 
(5.3)
 
(3.1)
 
(10.6)
Off-balance sheet items
 
1.6
 
(0.9)
 
0.0
 
(0.7)
 
1.5
 
1.6
Items deducted from Swiss SRB tier 1 capital
 
0.1
 
0.0
 
0.0
 
(0.1)
 
0.6
 
0.6
Total
 
(5.2)
 
8.8
 
0.0
 
(2.6)
 
(41.4)
 
(40.4)
1 Represents
 
the difference
 
between the
 
IFRS and
 
the regulatory
 
scope of
 
consolidation, which
 
is the
 
applicable
 
scope for
 
the LRD
 
calculation.
 
2 The
 
exposures consist
 
of derivative
 
financial instruments,
 
cash
collateral receivables on
 
derivative instruments,
 
receivables from securities
 
financing transactions,
 
and margin loans,
 
as well as prime brokerage
 
receivables and financial
 
assets at fair value
 
not held for trading,
 
both
related to securities financing
 
transactions, all of
 
which are in accordance
 
with the regulatory scope
 
of consolidation. These
 
exposures are presented
 
separately under Derivatives
 
and Securities financing
 
transactions
in this table.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
an
d
 
funding,
 
and
 
balance
 
sheet
 
|
 
Capital
 
management
 
146
 
UBS AG consolidated
 
total loss-absorbing
 
capacity and leverage
 
ratio
information
Going and gone concern requirements
 
and information
UBS is
 
considered an
 
SRB under Swiss
 
banking law
 
and, on a
 
consolidated basis,
 
both UBS
 
Group AG
 
and UBS AG
 
are
required to comply with
 
regulations based on
 
the Basel III framework as applicable for Swiss
 
SRBs.
 
The
 
Swiss SRB
 
framework and
 
requirements applicable to
 
UBS AG consolidated
 
are consistent
 
with
 
those applicable
 
to
UBS Group AG
 
consolidated and are described
 
in the “Capital, liquidity and
 
funding, and balance sheet”
 
section of this
report.
 
›
 
Refer to “Regulatory
 
framework”
 
in this section
 
for more information
 
about total loss-absorbing
 
capacity, leverage ratio
requirements and gone
 
concern rebate
UBS
 
AG
 
is
 
subject
 
to
 
going
 
and
 
gone
 
concern
 
requirements
 
on
 
a
 
standalone
 
basis.
 
Capital
 
and
 
other
 
regulatory
information for UBS AG standalone
 
is provided under “Holding company and
 
significant regulated subsidiaries and
 
sub-
groups”
 
at
ubs.com/investors
 
and
 
in
 
the
 
31 December
 
2022
 
Pillar 3
 
Report
 
available
 
under
 
“Pillar 3
 
disclosures”
 
at
ubs.com/investors
.
The table below provides
 
the RWA-
 
and LRD-based
 
requirements and information
 
as of 31
 
December 2022 for UBS
 
AG
consolidated.
 
Swiss SRB going and gone
 
concern requirements
 
and information
As of 31.12.22
RWA
LRD
USD m, except where indicated
in %
in %
Required going concern capital
Total going concern
 
capital
 
14.64
1
 
46,545
 
5.00
1
 
51,478
Common equity tier 1 capital
 
10.34
 
32,878
 
3.50
2
 
36,035
of which: minimum capital
 
4.50
 
14,302
 
1.50
 
15,443
of which: buffer capital
 
5.50
 
17,480
 
2.00
 
20,591
of which: countercyclical buffer
 
0.34
 
1,096
Maximum additional tier 1 capital
 
4.30
 
13,666
 
1.50
 
15,443
of which: additional tier 1 capital
 
3.50
 
11,124
 
1.50
 
15,443
of which: additional tier 1 buffer capital
 
0.80
 
2,543
Eligible going concern capital
Total going concern
 
capital
 
17.23
 
54,770
 
5.32
 
54,770
Common equity tier 1 capital
 
13.51
 
42,929
 
4.17
 
42,929
Total loss-absorbing
 
additional tier 1 capital
 
3.73
 
11,841
 
1.15
 
11,841
of which: high-trigger loss-absorbing additional tier 1 capital
 
3.35
 
10,654
 
1.03
 
10,654
of which: low-trigger loss-absorbing additional tier 1 capital
3
 
0.37
 
1,187
 
0.12
 
1,187
Required gone concern capital
Total gone concern
 
loss-absorbing capacity
4
 
10.36
 
32,922
 
3.75
 
38,609
of which: base requirement
5
 
12.86
 
40,872
 
4.50
 
46,330
of which: additional requirement for market share
 
and LRD
 
1.44
 
4,577
 
0.50
 
5,148
of which: applicable reduction on requirements
 
(3.94)
 
(12,527)
 
(1.25)
 
(12,870)
of which: rebate granted
6
 
(3.56)
 
(11,322)
 
(1.25)
 
(12,870)
of which: reduction for usage of low-trigger
 
tier 2 capital instruments
 
(0.38)
 
(1,204)
 
0.00
 
0
Eligible gone concern capital
Total gone concern
 
loss-absorbing capacity
 
14.79
 
46,991
 
4.56
 
46,991
Total tier 2 capital
 
0.93
 
2,958
 
0.29
 
2,958
of which: low-trigger loss-absorbing tier 2 capital
 
0.76
 
2,422
 
0.24
 
2,422
of which: non-Basel III-compliant tier 2 capital
 
0.17
 
536
 
0.05
 
536
TLAC-eligible senior unsecured
 
debt
 
13.85
 
44,033
 
4.28
 
44,033
Total loss-absorbing
 
capacity
Required total loss-absorbing
 
capacity
 
25.00
 
79,467
 
8.75
 
90,087
Eligible total loss-absorbing capacity
 
32.02
 
101,761
 
9.88
 
101,761
Risk-weighted assets / leverage ratio
 
denominator
Risk-weighted assets
 
317,823
Leverage ratio denominator
 
1,029,561
1 Includes applicable add-ons of 1.44%
 
for RWA and 0.50% for leverage
 
ratio denominator LRD.
 
2 Our minimum CET1 leverage
 
ratio requirement of 3.5%
 
consists of a 1.5% base requirement, a
 
1.5% base buffer
capital requirement, a 0.25% LRD add-
 
on requirement and a 0.25% market share
 
add-on requirement based
 
on our Swiss credit business.
 
3 Existing outstanding low-trigger
 
AT1 capital instruments
 
qualify as going
concern capital at the
 
UBS AG consolidated
 
level, as agreed
 
with FINMA,
 
until their first call
 
date. As of their
 
first call date, these
 
instruments are eligible
 
to meet the gone
 
concern requirements.
 
4 A maximum
 
of
25% of the gone concern requirements
 
can be met with instruments
 
that have a remaining
 
maturity of between
 
one and two years.
 
Once at least 75%
 
of the minimum gone
 
concern requirement
 
has been met with
instruments that have
 
a remaining
 
maturity of greater
 
than two years,
 
all instruments that
 
have a remaining
 
maturity of betwe
 
en one and two
 
years remain eligible
 
to be included in
 
the total gone
 
concern capital.
 
5 The gone concern
 
requirement after the application
 
of the rebate for resolvability
 
measures and the reduction
 
for the use of
 
higher-quality capital instruments
 
is floored at 10% and
 
3.75% for the RWA
 
-
 
and LRD-
based requirements, respectively.
 
This means that the combined
 
reduction may not exceed 4.3 percentage
 
points for the RWA
 
-based requirement of 14.3% and 1.25
 
percentage points for the LRD
 
-based requirement
of 5.0%.
 
6 Based on the
 
actions we completed
 
up to December 2021
 
to improve resolvability,
 
FINMA granted an
 
increase in the
 
rebate on the
 
gone concern requirement
 
from 55.0%
 
to 65.0% of the
 
maximum
rebate, effective
 
from 1
 
July 2022, with
 
an effective
 
maximum rebate
 
of 1.25
 
percentage points
 
for the
 
LRD-based
 
requirements and
 
– given
 
the risk
 
density of 35%
 
underlying the
 
regulatory requirements
 
– an
effective maximum rebate of 3.56
 
percentage points for the
 
RWA-based requirements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
an
d
 
funding,
 
and
 
balance
 
sheet
 
|
 
Capital
 
management
 
147
 
Swiss SRB going and gone
 
concern information
USD m, except where indicated
31.12.22
31.12.21
Eligible going concern capital
Total going concern
 
capital
 
54,770
 
55,434
Total tier 1 capital
 
54,770
 
55,434
Common equity tier 1 capital
 
42,929
 
41,594
Total loss-absorbing
 
additional tier 1 capital
 
11,841
 
13,840
of which: high-trigger loss-absorbing additional tier 1 capital
 
10,654
 
11,414
of which: low-trigger loss-absorbing additional tier 1 capital
 
1,187
 
2,426
Eligible gone concern capital
Total gone concern
 
loss-absorbing capacity
 
46,991
 
44,264
Total tier 2 capital
 
2,958
 
3,144
of which: low-trigger loss-absorbing tier 2 capital
 
2,422
 
2,596
of which: non-Basel III-compliant tier 2 capital
 
536
 
547
TLAC-eligible senior unsecured
 
debt
 
44,033
 
41,120
Total loss-absorbing
 
capacity
Total loss-absorbing
 
capacity
 
101,761
 
99,698
Risk-weighted assets / leverage ratio
 
denominator
Risk-weighted assets
 
317,823
 
299,005
Leverage ratio denominator
 
1,029,561
 
1,067,679
Capital and loss-absorbing capacity
 
ratios (%)
Going concern capital ratio
 
17.2
 
18.5
of which: common equity tier 1 capital ratio
 
13.5
 
13.9
Gone concern loss-absorbing capacity ratio
 
14.8
 
14.8
Total loss-absorbing
 
capacity ratio
 
32.0
 
33.3
Leverage ratios (%)
Going concern leverage ratio
 
5.3
 
5.2
of which: common equity tier 1 leverage ratio
 
4.17
 
3.90
Gone concern leverage ratio
 
4.6
 
4.1
Total loss-absorbing
 
capacity leverage ratio
 
9.9
 
9.3
UBS Group AG consolidated
 
vs UBS AG consolidated loss-absorbing
 
capacity and leverage
 
ratio information
 
The going
 
concern capital of
 
UBS AG consolidated
 
was USD 3.6bn
 
lower than
 
the going concern
 
capital of UBS Group
AG consolidated
 
as of
 
31 December
 
2022,
 
reflecting lower
 
CET1
 
capital of
 
USD 2.5bn
 
and lower
 
going
 
concern loss-
absorbing additional tier 1 (AT1)
 
capital of USD 1.0bn.
The aforementioned
 
difference in
 
CET1 capital was
 
primarily due to
 
higher UBS
 
AG consolidated
 
accruals for dividends
and USD 0.3bn lower UBS AG consolidated International Financial Reporting Standards
 
equity, as well as a higher capital
deduction at the UBS AG consolidated level related to deferred tax assets on temporary differences. The aforementioned
factors were partly offset by compensation
 
-related regulatory capital accruals at the
 
UBS Group AG consolidated
 
level.
The going concern loss-absorbing AT1 capital of UBS AG consolidated was USD 1.0bn lower than that of UBS Group AG
consolidated as of 31
 
December 2022,
 
mainly reflecting deferred contingent
 
capital plan awards granted
 
at Group level
to eligible
 
employees for the
 
performance years 2017
 
to 2021, partly
 
offset by
 
four loss-absorbing AT1 capital
 
instruments
on lent by UBS Group
 
AG to UBS AG.
Differences in capital between UBS Group AG consolidated and UBS AG consolidated related to
 
employee compensation
plans
 
will reverse
 
to the
 
extent underlying
 
services are
 
performed
 
by employees
 
of,
 
and
 
are consequently
 
charged to,
UBS AG and its subsidiaries. Such
 
reversal generally occurs over the service period
 
of the employee compensation
 
plans.
The
 
leverage ratio
 
framework
 
for
 
UBS
 
AG
 
consolidated
 
is
 
consistent
 
with
 
that
 
of UBS
 
Group
 
AG
 
consolidated.
 
As of
31 December 2022,
 
the going concern leverage ratio
 
of UBS AG consolidated was 0.4 percentage points lower than that
of UBS Group AG consolidated, mainly
 
because the going concern capital of UBS AG
 
consolidated was USD 3.6bn lower.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
an
d
 
funding,
 
and
 
balance
 
sheet
 
|
 
Capital
 
management
 
148
 
Audited |
 
Reconciliation of IFRS equity
 
to Swiss SRB common
 
equity tier 1 capital
 
(UBS Group AG
 
vs UBS AG consolidated)
As of 31.12.22
USD m
UBS Group AG
(consolidated)
UBS AG
(consolidated)
Difference
Total IFRS equity
57,218
56,940
278
Equity attributable to non-controlling
 
interests
(342)
(342)
Defined benefit plans, net of tax
(311)
(311)
Deferred tax assets recognized for tax loss carry-
 
forwards
(4,077)
(4,077)
Deferred tax assets on temporary differences,
 
excess over threshold
(64)
(262)
198
Goodwill, net of tax
(5,754)
(5,754)
Intangible assets, net of tax
(150)
(150)
Compensation-related components (not recognized
 
in net profit)
(2,287)
(2,287)
Expected losses on advanced internal ratings
 
-based portfolio less provisions
(471)
(471)
Unrealized (gains) / losses from cash flow hedges,
 
net of tax
4,234
4,234
Own credit related to (gains) / losses on financial liabilities
 
measured at fair value that existed at the
 
balance sheet date, net of tax
(523)
(523)
Own credit related to (gains) / losses on derivative financial
 
instruments that existed at the balance sheet date
(105)
(105)
Unrealized gains related to financial assets at fair value through
 
OCI, net of tax
0
0
Prudential valuation adjustments
(201)
(201)
Accruals for dividends to shareholders
(1,683)
(6,000)
4,317
Other
(29)
(51)
22
Total common equity tier 1 capital
45,457
42,929
2,528
p
 
Swiss SRB going and gone
 
concern information
 
(UBS Group AG vs
 
UBS AG consolidated)
As of 31.12.22
USD m, except where indicated
UBS Group AG
(consolidated)
UBS AG
(consolidated)
Difference
Eligible going concern capital
Total going concern
 
capital
 
58,321
 
54,770
 
3,551
Total tier 1 capital
 
58,321
 
54,770
 
3,551
Common equity tier 1 capital
 
45,457
 
42,929
 
2,528
Total loss-absorbing
 
additional tier 1 capital
 
12,864
 
11,841
 
1,023
of which: high-trigger loss-absorbing additional tier 1 capital
 
11,675
 
10,654
 
1,021
of which: low-trigger loss-absorbing additional tier 1 capital
 
1,189
 
1,187
 
2
Eligible gone concern capital
Total gone concern
 
loss-absorbing capacity
 
46,991
 
46,991
 
0
Total tier 2 capital
 
2,958
 
2,958
 
0
of which: low-trigger loss-absorbing tier 2 capital
 
2,422
 
2,422
 
0
of which: non-Basel III-compliant tier 2 capital
 
536
 
536
 
0
TLAC-eligible senior unsecured
 
debt
 
44,033
 
44,033
 
0
Total loss-absorbing
 
capacity
Total loss-absorbing
 
capacity
 
105,312
 
101,761
 
3,551
Risk-weighted assets / leverage ratio
 
denominator
Risk-weighted assets
 
319,585
 
317,823
 
1,762
Leverage ratio denominator
 
1,028,461
 
1,029,561
 
(1,100)
Capital and loss-absorbing capacity
 
ratios (%)
Going concern capital ratio
 
18.2
 
17.2
 
1.0
of which: common equity tier 1 capital ratio
 
14.2
 
13.5
 
0.7
Gone concern loss-absorbing capacity ratio
 
14.7
 
14.8
 
(0.1)
Total loss-absorbing
 
capacity ratio
 
33.0
 
32.0
 
0.9
Leverage ratios (%)
Going concern leverage ratio
 
5.7
 
5.3
 
0.4
of which: common equity tier 1 leverage ratio
 
4.42
 
4.17
 
0.25
Gone concern leverage ratio
 
4.6
 
4.6
 
0.0
Total loss-absorbing
 
capacity leverage ratio
 
10.2
 
9.9
 
0.4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
an
d
 
funding,
 
and
 
balance
 
sheet
 
|
 
Capital
 
management
 
149
 
Equity attribution and return
 
on attributed equity
Under
 
our equity
 
attribution
 
framework, tangible
 
equity
 
is attributed
 
based
 
on
 
a weighting
 
of 50%
 
each for
 
average
risk-weighted assets (RWA) and
 
average leverage ratio denominator (LRD), which
 
both include resource allocations from
Group Functions to the business divisions (the
 
BDs). Average RWA and LRD are converted
 
to common equity tier 1 (CET1)
capital equivalents
 
using
 
capital ratios
 
of
 
12.5%
 
and
 
3.75%,
 
respectively.
 
If the
 
attributed
 
tangible
 
equity
 
calculated
under the
 
weighted-driver approach
 
is less than
 
the CET1
 
capital equivalent
 
of risk-based
 
capital (RBC)
 
for any BD,
 
the
CET1 capital equivalent of RBC
 
is used as a floor for that BD.
In addition to tangible equity,
 
we allocate equity to the BDs to support
 
goodwill and intangible assets.
Furthermore, we
 
allocate to
 
the BDs
 
attributed
 
equity related
 
to certain CET1
 
deduction
 
items, such
 
as compensation-
related components and expected losses
 
on the advanced internal
 
ratings-based portfolio less provisions.
We attribute
 
all remaining
 
Basel III capital deduction
 
items to Group
 
Functions. These
 
items include
 
deferred tax
 
assets
(DTAs)
 
recognized
 
for
 
tax
 
loss
 
carry-forwards,
 
DTAs
 
on
 
temporary
 
differences
 
in
 
excess
 
of
 
the
 
threshold,
 
accruals for
shareholder returns,
 
and unrealized gains / losses from cash flow
 
hedges.
 
›
 
Refer to “Balance
 
sheet and off-balance
 
sheet” in this
 
section for more information
 
about movements
 
in equity attributable
 
to
shareholders
 
Average attributed
 
equity
For the year ended
USD bn
31.12.22
31.12.21
31.12.20
Global Wealth Management
 
20.0
 
18.8
 
17.1
Personal & Corporate Banking
 
9.3
 
9.2
 
8.9
Asset Management
 
1.7
 
2.0
 
2.0
Investment Bank
 
13.0
 
13.0
 
12.6
Group Functions
 
13.5
 
16.3
 
17.4
of which: deferred tax assets
1
 
5.2
 
5.9
 
6.7
of which: related to retained RWA and LRD
2
 
3.0
 
3.2
 
3.4
of which: accruals for shareholder returns and others
3
 
5.4
 
7.2
 
7.2
Average equity attributed to
 
business divisions and Group Functions
 
57.6
 
59.3
 
57.8
1 Includes average attributed
 
equity related to the
 
Basel III capital deduction
 
items for deferred tax
 
assets (deferred tax
 
assets recognized for tax
 
loss carry
 
-forwards and deferred tax
 
assets on temporary
 
differences,
excess over threshold),
 
as well
 
as retained risk
 
-weighted assets (RWA)
 
and
 
leverage ratio
 
denominator (LRD) related
 
to deferred tax
 
assets.
 
2 Excludes
 
average attributed
 
equity related to
 
retained RWA
 
and LRD
related to deferred
 
tax assets.
 
3 Includes attributed
 
equity related
 
to dividend
 
accruals, unrealized
 
gains / losses
 
from cash flow
 
hedges, and
 
a balancing
 
item for capital
 
held in excess
 
of the 12.5%
 
-capital and
3.75%-leverage-ratio calibration
 
thresholds for equity
 
attribution.
 
 
Return on attributed equity
1, 2
For the year ended
in %
31.12.22
31.12.21
31.12.20
Global Wealth Management
24.9
25.4
23.6
Personal & Corporate Banking
19.5
18.9
14.2
Asset Management
81.2
51.8
74.2
Investment Bank
14.6
20.3
19.7
1 Return on attributed equity for
 
Group Functions is not
 
shown, as it is not meaningful.
 
2 Refer to “Alternative
 
performance measures”
 
in the appendix to this
 
report for the definition and calculatio
 
n
 
method.
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Liquidity
 
and
 
funding
 
management
 
150
 
Liquidity and funding management
We manage
 
the structural
 
risks
 
of
 
our balance
 
sheet,
 
including
 
interest
 
rate risk
 
,
 
structural
 
foreign
 
exchange
 
risk and
collateral risk,
 
as well
 
as liquidity and funding risk.
 
This section
 
provides information about liquidity
 
and funding regulatory
requirements,
 
governance, management
 
(including
 
sources
 
of liquidity
 
and
 
funding), contingency
 
planning,
 
and stress
testing.
 
The
 
balances
 
disclosed
 
in
 
this
 
section
 
represent
 
year-end
 
positions,
 
unless
 
indicated
 
otherwise.
 
Intra-period
balances fluctuate in the ordinary
 
course of business and
 
may differ from year-end positions.
Strategy, objectives
 
and governance
Audited |
 
Our
 
management
 
of
 
liquidity
 
and
 
funding
 
has
 
the
 
overall
 
objective
 
of
 
protecting
 
our
 
business
 
franchises
 
and
prudently managing
 
our internal
 
and regulatory
 
liquidity and
 
funding requ
 
irements. We
 
measure liquidity
 
and funding
risk using
 
internal and regulatory
 
models and
 
metrics. We
 
define and
 
implement internal
 
stress testing
 
across different
time horizons,
 
scenarios and
 
currencies to
 
ensure
 
we have
 
sufficient
 
liquidity and
 
funding,
 
while remaining
 
compliant
with
 
regulatory
 
requirements,
 
primarily
 
expressed
 
through
 
the
 
liquidity
 
coverage
 
ratio
 
(the
 
LCR)
 
and
 
the
 
net
 
stable
funding ratio
 
(the NSFR).
 
Our liquidity and
 
funding strategy is
 
proposed by
 
Group Treasury
 
and approved
 
by the Group
Asset and
 
Liability Committee
 
(the Group
 
ALCO), which
 
is a committee
 
of the Group
 
Executive Board
 
(the GEB)
 
that is
overseen by the Risk Committee of the Board
 
of Directors (the BoD).
Liquidity
 
and
 
funding
 
limits
 
and
 
other
 
indicators
 
(including
 
early
 
-warning
 
indicators)
 
are
 
set
 
at
 
Group
 
and,
 
where
appropriate,
 
at
 
legal
 
entity
 
and
 
business
 
division
 
levels,
 
and
 
are
 
reviewed
 
and
 
reconfirmed
 
at
 
least
 
once
 
a
 
year
 
by
the
 
BoD,
 
the GEB,
 
the Group
 
ALCO,
 
the Group
 
Chief
 
Financial
 
Officer,
 
the
 
Group
 
Chief
 
Risk
 
Offic
 
er and
 
the Group
Treasurer,
 
taking
 
into
 
consideration
 
the
 
Group’s
 
business
 
strategy
 
and
 
risk
 
appetite.
 
Treasury
 
Risk
 
Control
 
provides
independent
 
oversight
 
over
 
liquidity
 
and
 
funding
 
risk.
p
 
›
 
Refer to the “Corporate
 
governance”
 
and “Risk management
 
and control” sections
 
of this report
 
for more information
Group
 
Treasury
 
monitors
 
and
 
oversees
 
the
 
implementation
 
and
 
execution
 
of
 
our
 
liquidity
 
and
 
funding
 
strategy
 
and
manages liquidity
 
and funding
 
risk within
 
the limits
 
and other
 
relevant indicators,
 
thereby adhering
 
to the internal
 
risk
appetite
 
and
 
regulatory
 
requirements.
 
This
 
includes
 
close
 
control of
 
both
 
our
 
cash and
 
collateral, including
 
our
 
high-
quality
 
liquid
 
assets
 
(HQLA),
 
and
 
centralizes
 
the
 
Group’s
 
access
 
to
 
wholesale
 
cash
 
markets
 
in
 
Group
 
Treasury.
 
To
complement our business-as-usual management,
 
Group Treasury maintains a Contingency Funding
 
Plan and contributes
to plans for recovery and resolution to define procedures throughout the crisis continuum. Group Treasury reports on the
Group’s liquidity and funding status
 
and position, including concentration risk, at least monthly,
 
to the Group ALCO and
the Risk Committee of the BoD.
In July 2022, the revision
 
of the Swiss Liquidity Ordinance became effective. Further
 
supervisory guidance from FINMA
 
is
expected to be communicated in the autumn
 
of 2023.
Liquidity and funding stress testing
Audited |
 
Our liquidity
 
and
 
funding
 
risk management
 
aims to
 
ensure
 
that the
 
firm has
 
sufficient
 
liquidity
 
and
 
funding
 
to
survive a severe idiosyncratic
 
and market-wide
 
liquidity and funding
 
stress event without
 
government support, allowing
for discrete management actions
 
.
 
Group Treasury maintains a diversified, high-quality
 
pool of unencumbered liquid assets
 
under Treasury control. The liquid
asset portfolio is
 
managed dynamically,
 
so as
 
to operate
 
at all times
 
within the
 
internal risk
 
appetite and
 
other relevant
Group and subsidiary liquidity and
 
funding requirements.
p
 
Our liquidity and funding
 
stress testing covers two main stress scenarios: a combined
 
(market and idiosyncratic) scenario
and a structural market-wide scenario.
 
We continuously refine stress-testing
 
assumptions.
›
 
Refer to “Risk measurement”
 
in the “Risk management
 
and control”
 
section of this report
 
for more information
 
about stress
testing
Combined (market and idiosyncratic) scenario
In
 
this
 
scenario,
 
UBS
 
faces
 
the
 
consequences
 
of
 
both
 
a
 
severely
 
deteriorated
 
macroeconomic
 
and
 
financial
 
market
environment and
 
a UBS
 
-specific event,
 
resulting
 
in an
 
acute loss
 
of liquidity
 
over a
 
relatively short
 
period
 
of time.
 
This
scenario represents
 
severe
 
yet plausible
 
events
 
encompassing
 
both
 
market-wide and
 
idiosyncratic
 
elements,
 
in which
 
,
however,
 
franchise client relationships
 
are materially maintained.
The objective of this stress test is to ensure that UBS
 
keeps a cumulative liquidity surplus on each day in the three-month
stress horizon
 
.
 
The liquidity
 
gap is
 
assessed by
 
modeling the
 
stressed liquidity
 
value of
 
the liquidity
 
buffer and
 
stressed
liquidity inflows and outflows under
 
the scenario.
Structural market-wide scenario
In this scenario, UBS
 
is subject to a significant
 
deterioration of macroeconomic
 
and financial market
 
conditions globally,
resulting in a requirement
 
for long-term funding
 
to survive the liquidity drain
 
and support the franchise of
 
the business.
Macroeconomic shocks
 
result in
 
deteriorated
 
financial market
 
conditions over
 
the scenario
 
horizon of
 
one year.
 
UBS is
assumed to be affected equally
 
relative to other global
 
financial institutions.
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Liquidity
 
and
 
funding
 
management
 
151
 
The objective of
 
this stress test
 
is to ensure
 
that UBS
 
maintains a positive
 
cumulative
 
behavioral liquidity gap
 
across the
3-month, 6-month, 9
 
-month and 12-month tenors.
 
The liquidity gap is assessed by modeling the stressed
 
liquidity value
of
 
the
 
liquidity
 
buffer,
 
and
 
stressed liquidity
 
inflows
 
and
 
outflows
 
under
 
the scenario.
 
In
 
addition,
 
the liquidity
 
stress-
testing metric
 
above 12
 
months aims
 
to ensure
 
that UBS
 
has sufficient
 
long-term (contractual
 
and behavioral)
 
funding
supply to support its long-term funding
 
consumption.
Funding management
Audited |
 
Group Treasury
 
monitors our funding
 
position,
 
including concentration risk, aiming to ensure
 
that we maintain a
well-balanced
 
and
 
diversified
 
liability
 
structure.
 
Our
 
funding
 
management
 
team
 
looks
 
to
 
create
 
the
 
optimal
 
liability
structure to finance our businesses in a
 
reliable and cost-efficient manner. Our funding activities are planned by analyzing
the overall liquidity and funding
 
requirements,
 
taking into account
 
the amount of stable funding
 
that would be needed
to support ongoing business
 
activities through periods of difficult market conditions.
p
 
The funding
 
strategy of
 
UBS
 
Group AG
 
is set
 
annually
 
in the
 
Funding
 
Plan and
 
is reviewed
 
on
 
an ongoing
 
basis.
 
The
Funding Plan is developed by Group
 
Treasury and approved by the Group
 
ALCO.
›
 
Refer to “Balance sheet
 
and off-balance
 
sheet” in this
 
section for more information
 
about the development
 
of our short-
 
and
long-term debt
 
during 2022
Global Wealth Management
 
and Personal
 
& Corporate
 
Banking provide
 
significant, cost-efficient
 
and stable
 
sources of
funding. These include deposits and
 
debt issued through the Swiss central mortgage institutions,
 
which use a portion of
our
 
portfolio
 
of
 
Swiss residential
 
mortgages
 
as
 
collateral to
 
generate
 
long-term
 
funding.
 
In addition,
 
we have
 
several
short-,
 
medium- and long-term funding
 
programs under which
 
we issue senior unsecured debt
 
and structured notes, as
well as short-term
 
debt. These
 
programs enable
 
UBS to source
 
funding from
 
institutional and
 
private investors who
 
are
active in Europe, the US
 
and Asia Pacific. Collectively,
 
these broad product
 
offerings and funding
 
sources, together with
the global scope of our
 
business activities, support our funding
 
stability.
Internal funding and funds
 
transfer pricing
We
 
use
 
our
 
global
 
liquidity
 
and
 
funding
 
framework
 
to
 
govern
 
the
 
liquidity
 
management
 
of
 
all
 
our
 
branches
 
and
subsidiaries. Group
 
Treasury
 
meets internal
 
demands for
 
funding by
 
channeling funds
 
from entities
 
generating surplus
cash to those in need
 
of financing, except in circumstances where
 
transfer restrictions
 
exist.
Funding costs and benefits are allocated
 
to our business divisions according to
 
our liquidity
 
and funding risk management
framework. Our internal funds transfer pricing system is designed to ensure we have the right mix of assets and liabilities
in currencies and tenors.
 
Credit ratings
Credit ratings
 
can affect
 
the
 
cost and
 
availability
 
of
 
funding,
 
especially from
 
wholesale
 
unsecured
 
sources.
 
Our
 
credit
ratings can
 
also influence the
 
performance of
 
some of our
 
businesses and the
 
levels of
 
client and
 
counterparty confidence.
Rating agencies
 
take into
 
account a
 
range of
 
factors when
 
assessing creditworthiness
 
and setting
 
credit
 
ratings. These
include
 
the
 
company’s
 
strategy,
 
its
 
business
 
position
 
and
 
franchise
 
value,
 
stability
 
and
 
quality
 
of
 
earnings,
 
capital
adequacy,
 
risk
 
profile
 
and
 
management,
 
liquidity
 
management,
 
diversification
 
of
 
funding
 
sources,
 
asset
 
quality,
 
and
corporate governance. Credit ratings
 
reflect the opinions of the
 
rating agencies and can change at any time.
In evaluating
 
our liquidity
 
and
 
funding
 
requirements,
 
we consider
 
the potential
 
effect of
 
a reduction
 
in our
 
long-term
credit ratings
 
and a
 
corresponding
 
reduction in
 
short-term ratings.
 
If our
 
credit ratings
 
were to
 
be downgraded,
 
rating
trigger clauses could result in an
 
immediate cash settlement or the need to
 
deliver additional collateral to counterparties
from contractual obligations
 
related
 
to over-the-counter (OTC)
 
derivative positions
 
and other
 
obligations.
 
Based on our
credit ratings as of 31
 
December 2022,
 
in the event of a one
 
-notch reduction in our
 
long-term credit ratings, we
 
would
have been required to provide USD 0.1bn in cash or other
 
collateral. In the
 
event of a two-notch reduction,
 
it would have
been
 
USD 0.3bn
 
and
 
for
 
a
 
three-notch
 
downgrade
 
USD 1.0bn.
 
In
 
the
 
two-
 
and
 
three-notch
 
scenarios
 
the
 
collateral
requirements predominantly relate to OTC derivative
 
positions.
There were no rating actions
 
with regard to UBS Group
 
AG’s or UBS AG’s solicited credit ratings in
 
2022.
›
 
Refer to “Liquidity
 
and funding management
 
are critical to UBS’s ongoing
 
performance” in
 
the “Risk factors”
 
section of this report
for more information
Contingency Funding
 
Plan
Audited |
 
We maintain our Contingency Funding
 
Plan as a preparation and action plan,
 
aiming to ensure we hold sufficient
liquidity
 
to
 
meet
 
our
 
payment
 
obligations
 
and
 
raise
 
funding
 
during
 
periods
 
of
 
liquidity
 
stress.
 
The
 
plan
 
specifies the
processes,
 
tools
 
and
 
responsibilities
 
that
 
we
 
have
 
available to
 
effectively
 
manage
 
liquidity
 
and
 
funding through
 
these
periods.
 
Our funding
 
diversification and
 
global scope
 
help to
 
protect our
 
liquidity position
 
in the
 
event of
 
a crisis.
 
Our
contingent funding sources include
 
our HQLA portfolios,
 
available and unutilized liquidity facilities
 
at several major
 
central
banks, contingent reductions
 
of trading portfolio assets,
 
and other actions available to the
 
management.
p
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Liquidity
 
and
 
funding
 
management
 
152
 
Liquidity coverage ratio
The LCR measures the short-term
 
resilience of a bank’s liquidity profile
 
by assessing whether sufficient HQLA are available
to meet expected net cash outflows from
 
a significant liquidity stress scenario,
 
as defined
 
by the relevant regulator.
For UBS,
 
HQLA are
 
low-risk unencumbered
 
assets under
 
the control
 
of Group
 
Treasury that
 
are easily
 
and immediately
convertible into
 
cash at
 
little or
 
no
 
loss of
 
value, in
 
order
 
to meet
 
liquidity needs.
 
Our HQLA
 
predominantly
 
consist of
assets that qualify as Level 1 in the LCR framework, including
 
cash, central bank reserves and government bonds.
 
Group
HQLA are held by UBS AG and its subsidiaries and may include amounts that are available to meet funding and collateral
needs in certain jurisdictions
 
but are not readily available for use
 
by the Group as
 
a whole. These limitations are
 
typically
the result of local
 
regulatory requirements, including local LCR
 
and large exposure requirements.
 
Funds that are effectively
restricted are excluded
 
from the calculation
 
of Group
 
HQLA to the
 
extent they exceed
 
the outflow
 
assumptions for
 
the
subsidiary that holds the relevant
 
HQLA. On this basis,
 
USD 34bn
 
of assets were excluded from our
 
daily average Group
HQLA for the fourth quarter of 2022. Amounts held in excess of local liquidity requirements that are not subject to other
restrictions are generally available for transfer
 
within the Group.
Basel Committee on Banking Supervision (BCBS) standards require
 
an LCR of at
 
least 100%. In
 
a period of financial
 
stress,
the Swiss
 
Financial Market Supervisory
 
Authority (FINMA) may
 
allow banks to
 
use their HQLA
 
and let their
 
LCR temporarily
fall below
 
the
 
minimum threshold.
 
We
 
monitor
 
the
 
LCR
 
in
 
all significant
 
currencies
 
in
 
order
 
to
 
manage
 
any
 
currency
mismatches between HQLA and the
 
net expected cash outflows in
 
times of stress.
Our
 
daily average
 
LCR
 
for
 
the
 
fourth
 
quarter
 
of
 
2022
 
was 16
 
3.7%,
 
compared
 
with
 
155.5%
 
in
 
the fourth
 
quarter of
2021, remaining above the
 
prudential requirement communicated by
 
FINMA.
Average HQLA increased
 
by USD 10.7bn to USD 238.6bn, mainly
 
driven by lower
 
funding consumption from the
 
business
divisions, partly offset by a reduction of short
 
-term debt.
 
Average net cash outflows decreased slightly, by
 
USD 0.8bn, to
USD 146.0bn.
 
Lower average outflows from customer
 
deposits were almost entirely offset by lower
 
average inflows from
loans and securities financing transactions
 
,
 
as well as higher average net
 
cash outflows from derivatives.
›
 
Refer to the 31 December
 
2022 Pillar 3 Report,
 
available under “Pillar
 
3 disclosures” at
ubs.com/investors,
for more information
about the LCR
›
 
Refer to the “Significant
 
regulated subsidiary
 
and sub-group
 
information”
 
section of this
 
report
 
for more information
 
about the
LCR of UBS AG and
 
UBS Switzerland
 
AG
 
Liquidity coverage ratio
USD bn, except where indicated
Average 4Q22
1
Average 4Q21
1
High-quality liquid assets (HQLA)
 
238.6
 
 
227.9
 
Total net cash outflows
2
 
146.0
 
 
146.8
 
Liquidity coverage ratio (%)
3
 
163.7
 
 
155.5
 
1 Calculated based on an
 
average of 63 data
 
points in the fourth
 
quarter of 2022 and 66
 
data points in the fourth
 
quarter of 2021.
 
2 Represents the
 
net cash outflows expected
 
over a stress period
 
of 30 calendar
days.
 
3 Calculated after the application
 
of haircuts and inflow and
 
outflow rates, as well
 
as, where applicable,
 
caps on Level 2 assets
 
and cash inflows.
Net stable funding ratio
 
The NSFR framework is
 
intended to limit overreliance on short-term
 
wholesale funding, to encourage a better assessment
of
 
funding
 
risk
 
across
 
all
 
on-
 
and
 
off-balance
 
sheet
 
items
 
and
 
to
 
promote
 
funding
 
stability.
 
The
 
NSFR
 
has
 
two
components: available stable funding
 
(ASF),
 
as numerator, and
 
required stable funding (RSF),
 
as denominator.
 
ASF is the
portion
 
of
 
capital and
 
liabilities
 
expected
 
to
 
be
 
available
 
over
 
the
 
period
 
of
 
one
 
year.
 
RSF
 
is
 
a
 
measure
 
of
 
the
 
stable
funding requirement
 
of assets based
 
on their
 
maturity,
 
encumbrance and
 
other characteristics,
 
as well
 
as the potential
for contingent calls on funding liquidity from
 
off-balance sheet exposures. The BCBS NSFR regulatory framework requires
a ratio of at least 100%.
 
As
 
of
 
31 December
 
2022,
 
the
 
NSFR
 
increased
 
1.3 percentage
 
points
 
to
 
119.8%,
 
remaining
 
above
 
the
 
prudential
requirement communicated by
 
FINMA. RSF decreased
 
by USD 19.6bn to USD 468.5bn, mainly
 
due to lower
 
trading assets
and
 
receivables
 
from
 
securities
 
financing
 
transactions,
 
partly
 
offset
 
by
 
higher
 
derivative
 
balances.
 
ASF
 
decreased
 
by
USD 17.0bn to USD 561.4bn
 
,
 
mainly driven by lower debt securities issued and
 
customer deposits.
›
 
Refer to the 31 December
 
2022 Pillar 3 Report,
 
available under “Pillar
 
3 disclosures” at
ubs.com/investors,
for more information
about the NSFR
›
 
Refer to the “Significant
 
regulated subsidiary
 
and sub-group
 
information”
 
section of this
 
report
 
for more information
 
about the
NSFR of UBS AG
 
and UBS Switzerland
 
AG
 
Net stable funding ratio
USD bn, except where indicated
31.12.22
31.12.21
Available stable funding (ASF)
561.4
578.4
Required stable funding (RSF)
468.5
488.1
Net stable funding ratio (%)
119.8
118.5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capi
tal,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Balance
 
sheet
 
and
 
off
-
balance
 
sheet
 
153
 
Balance sheet and off-balance sheet
Balance sheet
The
 
balances
 
disclosed
 
in
 
this
 
section
 
represent
 
year-end
 
positions,
 
unless
 
indicated
 
otherwise.
 
Intra-period
 
balances
fluctuate in the ordinary course of business
 
and may differ from year-end positions.
 
Refer to the “Consolidated financial
statements”
 
section of this report
 
for more information
 
about the development of our financial position.
Balance sheet assets
As
 
of
 
31 December
 
2022,
 
balance
 
sheet
 
assets
 
totaled
 
USD 1,104.4
 
bn,
 
a
 
decrease
 
of
 
USD 12.8bn
 
compared
 
with
31 December 2021,
 
which
 
included
 
a decrease
 
of approximately
 
USD 22.7bn
 
from currency
 
effects.
Cash and
 
balances at central
 
banks dec
 
reased by
 
USD 23.4bn
 
,
 
including currency
 
effects
 
of approximately
 
USD 5.9bn.
The
 
net
 
cash
 
outflow
 
was
 
mainly
 
due
 
to
 
shifts
 
within
 
the
 
high-quality
 
liquid
 
asset
 
(HQLA)
 
portfolio
 
from
 
cash
 
into
securities, a
 
reduction in
 
short-term debt,
 
decreases in
 
customer deposits
 
and outflows
 
related to the
 
share repurchase
programs.
 
These outflows
 
were partly
 
offset
 
by inflows
 
from roll
 
-offs
 
of securities
 
financing
 
transactions, decreases
 
in
trading assets, as well as lower lending.
Trading
 
portfolio assets decreased
 
by USD 22.9bn,
 
mainly in our Financing and Derivatives & Solutions
 
businesses in the
Investment Bank, reflecting lower
 
inventory held to hedge client positions and market-driven movements.
 
Lending assets
decreased by USD 11.2bn,
 
mainly driven by
 
currency effects of USD 6.4bn. The movement not related to currency effects
was mainly in Global
 
Wealth Management, reflecting
 
decreases in
 
Lombard loans
 
in Asia Pacific, partly
 
offset by higher
mortgage loans in the Americas. Non
 
-financial assets and financial assets for unit
 
-linked investment contracts decreased
by USD 8.7bn,
 
predominantly in
 
Asset Management
 
,
 
mainly due
 
to market-driven
 
decreases on
 
investments related
 
to
unit-linked
 
contracts,
 
and
 
in
 
Global
 
Wealth
 
Management,
 
due
 
to
 
the
 
completion of
 
the
 
sale
 
of
 
our
 
domestic
 
wealth
management business in Spain and the sale of UBS Swiss Financial Advisers
 
AG in 2022.
 
Securities financing transactions
at amortized
 
cost decreased
 
by USD 7.2bn,
 
mostly due to
 
lower client
 
activity levels
 
in the Investment
 
Bank as
 
interest
rates rose,
 
as well
 
as trade
 
roll-offs in
 
Group Treasury.
 
Brokerage
 
receivables decreased
 
by USD 4.2bn
 
in our
 
Financing
business,
 
as increases in client lending were more
 
than offset by netting
 
effects against Brokerage
 
payables.
These decreases
 
were partly
 
offset by
 
a USD 36.4bn
 
increase in
 
Derivatives and cash
 
collateral receivables
 
on derivative
instruments. The increases were mainly in our Derivatives & Solutions and Financing businesses, predominantly reflecting
increases in foreign exchange contracts, where the contracts in place at
 
the end of 2022 had higher fair
 
values compared
with the contracts in place at the
 
end of 2021,
 
as well as increases in interest rate
 
contracts,
 
mainly due to higher trading
volumes and market-driven movements
 
as interest rates increased
 
during the year.
 
These increases were
 
partly offset by
market-driven
 
decreases
 
in
 
Non-core
 
and
 
Legacy
 
Portfolio
 
on
 
long-dated
 
interest
 
rate
 
contracts
 
due
 
to
 
the
aforementioned increases
 
in interest rates.
Other financial assets measured at amortized cost and fair value increased by
 
USD 28.4bn, largely reflecting shifts within
the HQLA portfolio from cash
 
into securities within Group
 
Treasury due to the widening of spreads. Included within
 
Other
financial
 
assets
 
measured
 
at
 
amortized
 
cost
 
and
 
fair
 
value
 
is
 
a
 
portfolio
 
of
 
financial
 
assets
 
reclassified
 
effective
 
from
1 April 2022 from
 
Financial assets measured at
 
fair value through other
 
comprehensive income
 
to Other financial assets
measured at amortized cost, in
 
line with the principles in IFRS 9,
Financial Instruments
.
›
 
Refer to “Note 1
 
Summary of material
 
accounting policies”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for
more information about
 
the reclassification
 
of a portfolio of financial
 
assets
 
Assets
As of
% change from
USD bn
31.12.22
31.12.21
31.12.21
Cash and balances at central banks
 
169.4
 
192.8
 
(12)
Lending
1
 
402.0
 
413.2
 
(3)
Securities financing transactions at amortized cost
 
67.8
 
75.0
 
(10)
Trading portfolio
2
 
107.9
 
130.8
 
(18)
Derivatives and cash collateral receivables
 
on derivative instruments
 
185.1
 
148.7
 
25
Brokerage receivables
 
17.6
 
21.8
 
(20)
Other financial assets measured at amortized cost and
 
fair value
3
 
102.2
 
73.8
 
38
Non-financial assets and financial assets for unit
 
-linked investment contracts
 
52.3
 
61.0
 
(14)
Total assets
 
1,104.4
 
1,117.2
 
(1)
1 Consists of loans and
 
advances to customers
 
and banks.
 
2 Consists of financial
 
assets at fair value
 
held for trading.
 
3 Consists of financial
 
assets at fair value
 
not held for trading,
 
financial assets measured
 
at
fair value through other comprehensive
 
income and other financial
 
assets measured at amortized
 
cost, but excludes financial
 
assets for unit-linked
 
investment contracts.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capi
tal,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Balance
 
sheet
 
and
 
off
-
balance
 
sheet
 
154
 
Asset encumbrance
The table below provides a breakdown
 
of on-
 
and off-balance sheet assets between encumbered assets,
 
unencumbered
assets and assets that cannot be
 
pledged as collateral.
Assets are presented as
 
Encumbered if
 
they have been pledged
 
as collateral against
 
an existing liability
 
or are otherwise
not available for
 
securing additional
 
funding. Included
 
within the
 
latter category are
 
assets protected under
 
client asset
segregation rules,
 
financial assets for
 
unit-linked investment contracts,
 
and assets
 
held in certain jurisdictions
 
to comply
with explicit minimum local asset maintenance
 
requirements.
›
 
Refer to “Note 22
 
Restricted and
 
transferred financial
 
assets”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for
more information
Assets
 
that
 
cannot
 
be
 
pledged
 
as
 
collateral
 
represents
 
assets
 
that
 
are
 
not
 
encumbered
 
but
 
by
 
their
 
nature
 
are
 
not
considered available to secure funding
 
or meet collateral needs.
All other assets are presented
 
as Unencumbered.
 
Assets that are considered
 
to be readily available to secure
 
funding on
a Group and / or legal entity level are shown separately and consist of
 
cash and securities readily realizable in the normal
course of business. These include our HQLA and unencumbered
 
positions in our trading portfolio. Unencumbered
 
assets
that are considered
 
to be
 
available to
 
secure funding
 
on a
 
legal entity level
 
may be
 
subject to restrictions
 
that limit
 
the
total amount of
 
assets available to
 
the Group
 
as a whole.
 
Other unencumbered
 
assets, which are
 
not considered
 
to be
readily available to secure funding on a Group and / or legal entity level, primarily consist of loans and advances to banks
and customers.
 
 
Asset encumbrance as
 
of 31 December
 
2022
USD bn
Encumbered
Unencumbered
Assets that
cannot be
pledged as
collateral
Total Group
Assets
pledged
as collateral
Assets
otherwise
restricted and
not available
to secure
funding
Cash and
securities
available to
secure funding
on a Group and /
or legal entity
level
Other
realizable
assets
Balance sheet
Cash and balances at central banks
 
0.0
 
169.4
 
169.4
Loans and advances to banks
 
3.7
 
11.1
 
14.8
Receivables from securities financing transactions
 
67.8
 
67.8
Cash collateral receivables on derivative
 
instruments
 
5.2
 
29.9
 
35.0
Loans and advances to customers
 
15.2
 
1.1
 
370.2
 
0.7
 
387.2
Other financial assets measured at amortized cost
 
3.4
 
0.8
 
40.4
 
1.3
 
7.3
 
53.3
Total financial assets
 
measured at amortized cost
 
18.6
 
10.8
 
209.8
 
382.6
 
105.7
 
727.6
Financial assets at fair value held for trading
 
57.4
1
 
0.2
 
48.5
 
1.8
 
107.9
Derivative financial instruments
 
0.0
 
150.1
 
150.1
Brokerage receivables
 
17.6
 
17.6
Financial assets at fair value not held for trading
 
1.5
1
 
14.5
 
30.1
 
6.0
 
7.7
 
59.8
Total financial assets
 
measured at fair value through profit or
 
loss
 
58.9
 
14.6
 
78.7
 
7.8
 
175.4
 
335.3
Financial assets measured at
 
fair value through other comprehensive
 
income
 
1.8
 
0.4
 
2.2
Non-financial assets
 
0.0
 
4.5
 
13.4
 
21.4
 
39.2
Total balance sheet assets
 
as of 31 December 2022
 
77.5
 
27.3
 
293.4
 
403.7
 
302.5
 
1,104.4
Total balance sheet assets
 
as of 31 December 2021
 
85.1
 
33.5
 
307.5
 
415.4
 
275.7
 
1,117.2
Off-balance sheet
Fair value of securities
 
accepted as collateral as of 31 December
 
2022
 
331.8
 
5.6
 
93.8
 
2.8
 
434.0
Fair value of securities
 
accepted as collateral as of 31 December
 
2021
 
367.4
 
16.3
 
106.5
 
7.6
 
497.8
Total balance sheet assets
 
and off-balance sheet securities accepted
 
as collateral as of
31 December 2022
 
409.3
 
33.0
 
387.1
 
406.5
 
302.5
 
1,538.4
of which: high-quality liquid assets
 
238.6
Total balance sheet assets
 
and off-balance sheet securities accepted
 
as collateral as of
31 December 2021
 
452.5
 
49.8
 
414.0
 
423.0
 
275.7
 
1,615.0
of which: high-quality liquid assets
 
232.8
1 Includes assets pledged as collateral that may be sold or repledged
 
by counterparties. The respective
 
amounts are disclosed in “Note 22 Restricted financial
 
assets” in the “Consolidated financial statements”
 
section
of this report.
 
Assets available to secure
 
funding on a Group
 
and / or legal entity
 
level by currency
USD bn
31.12.22
31.12.21
Swiss franc
 
120.0
 
111.4
US dollar
 
156.2
 
174.7
Euro
 
40.3
 
46.6
Other
 
70.6
 
81.2
Total
 
387.1
 
414.0
 
 
 
 
Annual Report 2022 |
Risk,
 
capi
tal,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Balance
 
sheet
 
and
 
off
-
balance
 
sheet
 
155
 
Balance sheet liabilities
Total
 
liabilities
 
as of
 
31 December
 
2022
 
were USD
 
1,047.1bn,
 
a decrease
 
of USD
 
9.1bn
 
compared
 
with 31
 
December
2021, which included
 
a decrease
 
of approximately
 
USD 20.4bn
 
from currency
 
effects.
Customer deposits decreased by
 
USD 16.9bn,
 
including an USD 8.3bn decrease from
 
currency effects. The decrease not
related to
 
currency ef
 
fects was
 
USD 14.4bn
 
in Global
 
Wealth Management,
 
mostly in
 
the Americas,
 
partly offset
 
by a
USD 5.8bn
 
increase in Personal
 
& Corporate
 
Banking.
 
In addition,
 
increases in
 
interest rates during
 
the year
 
resulted in
significant shifts
 
from
 
demand
 
deposits
 
to time
 
deposits.
 
As
 
of 31
 
December 202
 
2,
 
our ratio
 
of customer
 
deposits
 
to
outstanding
 
loan
s
 
and
 
advances
 
to
 
customers
 
was
unchanged
 
at
136%.
 
Short
-
term
 
borrowings
 
decreased
 
by
USD 14.9bn, mainly due to maturities of
 
commercial paper and
 
certificates of deposit in Group
 
Treasury.
 
Debt issued
 
designated at
 
fair value and
 
long-term debt
 
issued measured
 
at amortized
 
cost decreased
 
by USD 11.3bn.
Long-term debt issued
 
measured at
 
amortized cost decreased
 
by USD 11.1bn,
 
driven by hedge
 
accounting and
 
foreign
currency effects,
 
as well
 
as net
 
redemptions.
 
Debt issued
 
designated at
 
fair value
 
remained
 
broadly
 
unchanged,
 
while
net new
 
issuances mainly of
 
fixed-rate and
 
equity-linked contracts
 
were offset
 
by market-driven
 
movements on
 
equity-
linked contracts.
 
During 2022,
 
the redemption
 
of a covered
 
bond
 
of USD 1.4bn
 
and net redemption
 
s
 
of subordinated
 
debt instruments
of USD
 
1.3bn were
 
partly offset
 
by USD
 
0.8bn
 
of net
 
new issuances
 
of senior
 
unsecured debt
 
,
 
including TLAC-eligible
benchmark
 
instruments.
 
In
 
December
 
2022,
 
we
 
announced
 
our
 
intention
 
to
 
call
 
one
 
loss-absorbing
 
tier 1
 
capital
instrument of USD 2.0bn, which was redeemed in January
 
2023. As of 31 December 2022, UBS
 
is already compliant with
its 2023 going
 
and gone concern capital requirements
 
and expects to
 
act rationally and
 
strategically with respect to
 
the
refinancing of any callable capital instruments
 
and any potential incremental issuances.
›
 
Refer to “UBS Group
 
AG consolidated
 
capital instruments
 
and TLAC-eligible
 
senior unsecured
 
debt,” available
 
under “Bondholder
information” at
 
ubs.com/investors,
for more information
 
Non-financial
 
liabilities
 
and
 
financial
 
liabilities
 
related
 
to
 
unit-linked
 
investment
 
contracts
 
decreased
 
by
 
USD 10.6bn,
mainly reflecting
 
market-driven decreases
 
in unit
 
-linked
 
investment
 
contracts
 
in line
 
with the
 
asset
 
side
 
and
 
in Global
Wealth Management due
 
to the completion
 
of the sale of our
 
domestic wealth management
 
business in Spain
 
and the
sale of UBS Swiss Financial Advisers AG
 
in 2022.
›
 
Refer to “Note 29
 
Changes in organization
 
and acquisitions
 
and disposals
 
of subsidiaries and
 
businesses” in
 
the “Consolidated
financial statements”
 
section of this
 
report for more information
 
about the sales
 
of these businesses
These
 
decreases
 
were
 
partly offset
 
by
 
a
 
USD 38.2bn
 
increase
 
in
 
Derivatives and
 
cash collateral
 
payables
 
on
 
derivative
instruments, in
 
line with the
 
movement on the
 
asset side.
 
Other financial liabilities measured
 
at amortized cost
 
and fair
value increased by USD 9.0bn, mainly in Group Treasury,
 
due to lower netting effects
 
on securities financing transactions
measured at fair value.
 
Equity
Equity attributable to shareholders
 
decreased by USD
 
3,786m
 
to USD 56,876m
 
as of 31 December 2022.
 
This decrease was mainly driven by net treasury share activity that decreased equity by USD 5,999m. This was mainly due
to share repurchases
 
with an acquisition cost of USD 3,966
 
m
 
under our 2022
 
share repurchase program, repurchases
 
of
USD 1,637m
 
under
 
our
 
2021
 
program
 
and
 
purchases
 
of
 
USD 207m
 
from
 
the
 
market
 
to
 
hedge
 
our
 
share
 
delivery
obligations
 
related
 
to
 
employee
 
share-based
 
compensation
 
awards.
 
In
 
addition,
 
distributions
 
to
 
shareholders
 
reduced
equity by USD 1,668m,
 
reflecting a dividend payment of USD 0.50
 
per share.
These decreases were partly
 
offset by total
 
comprehensive income attributable
 
to shareholders
 
of positive USD 3
 
,149m,
reflecting net
 
profit of
 
USD 7,630
 
m
 
and negative other
 
comprehensive income (OCI) of
 
USD 4,481m. OCI mainly
 
included
negative cash
 
flow hedge
 
OCI of
 
USD 4,793m,
 
negative OCI
 
related to
 
foreign
 
currency translation
 
of USD
 
525m and
positive OCI related to
 
own credit on financial
 
liabilities designated at fair value of
 
USD 796m. In addition, deferred share-
based compensation awards
 
of USD 716m
 
were expensed in the income statement, increasing
 
share premium.
In the second
 
quarter of 2022,
 
we canceled 177,787,273
 
shares purchased
 
under our 2021
 
share repurchas
 
e
 
program
from its
 
inception in
 
2021 until
 
18
 
February 2022,
 
as approved
 
by shareholders
 
at the
 
2022 Annual
 
General Meeting.
The cancellation of shares resulted in
 
reclassifications within equity but had no net effect on our total equity attributable
to shareholders.
›
 
Refer to the “Group
 
performance”
 
and “Consolidated
 
financial statements”
 
sections of this
 
report for more information
 
about OCI
›
 
Refer to the “Reconciliation
 
of IFRS equity
 
to Swiss
 
SRB common equity
 
tier 1 capital”
 
table in this
 
section for more
 
information
about the effects of
 
OCI on common equity
 
tier 1 capital
›
 
Refer to “UBS shares”
 
in this section
 
for more information
 
about our share repurchase
 
programs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
dev_UBS_AR_2022p184i0.jpg
 
Annual Report 2022 |
Risk,
 
capi
tal,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Balance
 
sheet
 
and
 
off
-
balance
 
sheet
 
156
 
Liabilities and equity
As of
% change from
USD bn
31.12.22
31.12.21
31.12.21
Short-term borrowings
1
 
41.3
 
56.2
 
(27)
Securities financing transactions at amortized cost
 
4.2
 
5.5
 
(24)
Customer deposits
 
525.1
 
542.0
 
(3)
Debt issued designated at fair value and long-term debt
 
issued measured at amortized cost
2
 
158.6
 
169.9
 
(7)
Trading portfolio
3
 
29.5
 
31.7
 
(7)
Derivatives and cash collateral payables on derivative
 
instruments
 
191.3
 
153.1
 
25
Brokerage payables
 
45.1
 
44.0
 
2
Other financial liabilities measured at amortized
 
cost and fair value
4
 
26.6
 
17.6
 
51
Non-financial liabilities and financial liabilities related to unit
 
-linked investment contracts
 
25.5
 
36.1
 
(29)
Total liabilities
 
1,047.1
 
1,056.2
 
(1)
Share capital
 
0.3
 
0.3
 
(6)
Share premium
 
13.5
 
15.9
 
(15)
Treasury shares
 
(6.9)
 
(4.7)
 
47
Retained earnings
 
50.0
 
43.9
 
14
Other comprehensive income
5
 
(0.1)
 
5.2
 
(102)
Total equity attributable to
 
shareholders
 
56.9
 
60.7
 
(6)
Equity attributable to non-controlling interests
 
0.3
 
0.3
 
1
Total equity
 
57.2
 
61.0
 
(6)
Total liabilities and
 
equity
 
1,104.4
 
1,117.2
 
(1)
1 Consists
 
of short-term
 
debt issued
 
measured at
 
amortized cost
 
and amounts
 
due to
 
banks.
 
2 The
 
classification
 
of debt
 
issued
 
measured at
 
amortized cost
 
into short
 
-term and
 
long-term is
 
based on
 
original
contractual maturity and therefore long-
 
term debt also includes debt with a remaining time to maturity
 
of less than one year. This classification
 
does not consider any early redemption features.
 
3 Consists of financial
liabilities at fair value
 
held for trading.
 
4 Consists of other financial
 
liabilities measured
 
at amortized cost and
 
other financial liabilities
 
designated at fair
 
value, but excl
 
udes financial liabilities
 
related to unit-linked
investment contracts.
 
5
Excludes other comprehensive
 
income related to
 
defined benefit plans and own credit,
 
which is recorded directly
 
in Retained e
arnings.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capi
tal,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Balance
 
sheet
 
and
 
off
-
balance
 
sheet
 
157
 
Liabilities by product
 
and currency
USD equivalent
All currencies
of which: USD
of which: CHF
of which: EUR
USD bn
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
Short-term borrowings
41.3
56.2
23.3
32.2
3.8
4.3
4.4
6.2
of which: amounts due to banks
11.6
13.1
4.2
3.4
3.7
4.2
1.1
0.8
of which: short-term debt issued
1
29.7
43.1
19.0
28.8
0.1
0.2
3.3
5.3
Securities financing transactions at amortized cost
4.2
5.5
3.6
5.2
0.0
0.0
0.2
0.2
Customer deposits
525.1
542.0
226.6
252.1
198.5
189.7
53.6
54.8
of which: demand deposits
180.8
246.4
47.1
92.3
71.4
70.9
37.3
46.3
of which: retail savings / deposits
149.3
133.3
24.6
11.7
119.0
116.0
5.6
5.5
of which: sweep deposits
69.2
113.9
69.2
113.9
0.0
0.0
0.0
0.0
of which: time deposits
125.7
48.4
85.7
34.2
8.1
2.8
10.6
3.0
Debt issued designated at fair value and long-term debt
 
issued
 
measured at amortized cost
2
158.6
169.9
98.4
100.3
16.9
18.4
29.6
35.1
Trading portfolio
3
29.5
31.7
12.1
13.7
0.8
0.9
8.1
6.3
Derivatives and cash collateral payables on derivative
 
instruments
191.3
153.1
160.4
126.3
3.8
2.1
15.8
15.2
Brokerage payables
45.1
44.0
32.3
32.8
0.4
0.4
3.2
2.8
Other financial liabilities measured at amortized cost
 
and fair value
4
26.6
17.6
16.3
9.3
1.7
1.5
4.8
3.7
Non-financial liabilities and financial liabilities related to unit
 
-linked investment
contracts
25.5
36.1
4.7
6.0
1.5
2.4
2.9
3.4
Total liabilities
1,047.1
1,056.2
577.7
577.8
227.6
219.7
122.6
127.8
1 Short-term debt issued consists
 
of certificates of deposit, commercial
 
paper, acceptances
 
and promissory notes,
 
and other money market
 
paper.
 
2 The classification
 
of debt issued measured at amortized
 
cost into
short-term and long-term
 
is based on
 
original contractual
 
maturity and therefore
 
long-term debt
 
also includes
 
debt with a
 
remaining time
 
to maturity of
 
less than one
 
year. This
 
classification does
 
not consider any
early redemption features.
 
3 Consists of financial liabilities
 
at fair value held for trading.
 
4 Consists of other financial liabilities
 
measured at amortized cost and other financial
 
liabilities designated at fair
 
value, but
excludes financial liabilities
 
related to unit-linked
 
investment contracts.
Off-balance sheet
In the normal course of
 
business,
 
we enter into transactions where, pursuant to IFRS, the maximum contractual exposure
may
 
not
 
be
 
recognized
 
in
 
whole
 
or
 
in
 
part
 
on
 
our
 
balance
 
sheet.
 
These
 
transactions
 
include
 
derivative
 
instruments,
guarantees,
 
loan commitments and similar arrangements
 
.
When we
 
incur an
 
obligation
 
or become
 
entitled to
 
an asset
 
through
 
these arrangements,
 
we recognize
 
them on
 
the
balance sheet.
 
It should be
 
noted that
 
in certain
 
instances the amount
 
recognized on the balance
 
sheet does not
 
represent
the full gain or loss potential inherent
 
in such arrangements.
The
 
following
 
paragraphs
 
provide
 
more
 
information
 
about
 
certain
 
off-balance
 
sheet
 
arrangements.
 
Additional
 
off-
balance sheet
 
information
 
is primarily
 
provided
 
in Notes
 
9,
 
10, 17,
 
19, 20h,
 
22
 
and 28
 
in the
 
“Consolidated financial
statements” section of this report, and
 
in the 31 December 2022
 
Pillar 3 Report, available under “Pillar 3 disclosures”
 
at
 
ubs.com/investors.
Guarantees, loan commitments and
 
similar arrangements
In the normal course of
 
business, we issue various forms
 
of guarantees, commitments to extend
 
credit, standby and other
letters of credit
 
to support our
 
clients, forward starting
 
transactions, note
 
issuance
 
facilities,
 
and revolving
 
underwriting
facilities.
 
With the
 
exception
 
of
 
related
 
premiums,
 
generally
 
these
 
guarantees
 
and
 
similar
 
obligations
 
are
 
kept
 
as
 
off-
balance sheet items, unless a
 
provision to cover probable
 
losses or expected credit losses
 
is required.
Guarantees represent irrevocable assurances
 
that, subject to the satisfying
 
of certain conditions, we will make payments
if our clients
 
fail to fulfill
 
their obligations
 
to third
 
parties. As of
 
31 December 2022,
 
the net exposure
 
(i.e., gross
 
values
less
 
sub-participations)
 
from
 
guarantees
 
and
 
similar
 
instruments
 
was
 
USD 20.6
 
bn,
 
compared
 
with
 
USD 18.9bn
 
as
 
of
31 December 2021. The increase of USD 1.7bn reflected higher guarantees issued to corporate clients in Group Treasury.
Fee income from
 
issuing guarantees
 
compared with total
 
net fee and
 
commission income is
 
insignificant for both
 
2022
and 2021.
We also
 
enter
 
into
 
commitments
 
to extend
 
credit
 
in the
 
form of
 
credit
 
lines
 
available
 
to secure
 
the liquidity
 
needs
 
of
clients. The majority
 
of loan
 
commitments range
 
in maturity from
 
one month
 
to two
 
years. Committed unconditionally
revocable
 
credit
 
lines
 
are
 
generally
 
open-ended.
 
During
 
2022,
 
loan
 
commitments
 
and
 
committed
 
unconditionally
revocable credit lines
 
remained broadly
 
stable. Forward
 
starting reverse repurchase
 
agreements increased by
 
USD 2.4bn
and forward starting repurchase
 
agreements increased by USD
 
0.9bn, both predominantly in Group
 
Treasury.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capi
tal,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Balance
 
sheet
 
and
 
off
-
balance
 
sheet
 
158
 
Off-balance sheet
As of
% change from
USD bn
31.12.22
31.12.21
31.12.21
Guarantees
1
20.6
18.9
9
Loan commitments
1,2
40.0
39.5
1
Committed unconditionally revocable credit lines
41.4
40.8
1
Forward starting reverse repurchase
 
agreements
2
3.8
1.4
163
Forward starting repurchase
 
agreements
2
1.9
1.0
80
1 Guarantees
 
and Loan
 
commitments are
 
shown net
 
of sub-participations.
 
2 The
 
exposures related
 
to loan commitments,
 
forward starting
 
repurchase
 
and reverse repurchase
 
agreements
 
measured at fair
 
value
through profit or loss are
 
not included in this table
 
but are reflected as notional amounts
 
in “Note 10 Derivative
 
instruments” in the “Consolidated
 
financial statements”
 
section of this report.
If customers
 
fail to meet
 
their obligations,
 
our maximum exposure
 
to credit
 
risk is
 
generally
 
the contractual
 
amount
 
of
these
 
instruments.
 
The
 
risk
 
is
 
similar
 
to
 
the
 
risk
 
involved
 
in
 
extending
 
loan
 
facilities
 
and
 
is
 
subject
 
to
 
the
 
same
 
risk
management
 
and
 
control
 
framework.
 
In
 
2022,
 
we
 
recognized
 
net
 
credit
 
loss
 
releases
 
of
 
USD 3m
 
related
 
to
 
loan
commitments,
 
guarantees
 
and other
 
credit facilities
 
in the
 
scope of
 
expected credit
 
loss measurement,
 
compared
 
with
net credit
 
loss releases
 
of USD 46m
 
in 2021.
 
Provisions recognized
 
for guarantees,
 
loan
 
commitments and
 
other credit
facilities in
 
the scope
 
of expected
 
credit loss
 
measurement
 
were USD
 
201m
 
as of
 
31 December
 
2022,
 
compared
 
with
USD 196m as of 31
 
December 2021.
›
 
Refer to “Note
 
9 Financial
 
assets
 
at amortized
 
cost and
 
other
 
positions
 
in scope
 
of expected
 
credit
 
loss measurement”
 
and “Note 19
Expected
 
credit loss
 
measurement”
 
in the “Consolidated
 
financial
 
statements”
 
section of this
 
report for more information
 
about
provisions for expected
 
credit losses
For
 
certain
 
obligations,
 
we
 
enter
 
into
 
partial
 
sub-participations
 
to
 
mitigate
 
various
 
risks
 
from
 
guarantees
 
and
 
loan
commitments.
 
A
 
sub-participation
 
is
 
an agreement
 
by
 
another
 
party to
 
take
 
a
 
share
 
of
 
the
 
loss in
 
the
 
event
 
that
 
the
obligation
 
is
 
not
 
fulfilled
 
by
 
the
 
obligor
 
and,
 
where
 
applicable,
 
to
 
fund
 
a
 
part
 
of
 
the
 
credit
 
facility.
 
We
 
retain
 
the
contractual
 
relationship
 
with
 
the
 
obligor,
 
and
 
the sub
 
-participant has
 
only
 
an indirect
 
relationship.
 
Generally,
 
we
 
only
enter into
 
sub-participation agreements
 
with banks
 
to which
 
we ascribe
 
a credit
 
rating equal
 
to or
 
better than
 
that of
the obligor.
We
 
also provide representations,
 
warranties and indemnifications to third
 
parties in the normal course of business.
Support provided to non
 
-consolidated investment funds
In 2022,
 
the Group
 
did not provide
 
material support, financial
 
or otherwise,
 
to unconsolidated
 
investment funds
 
when
the Group was not
 
contractually obligated to do so
 
,
 
nor does it have an intention
 
to do so.
Clearing house and exchange
 
memberships
We
 
are
 
a
 
member of
 
numerous
 
securities and
 
derivative exchanges
 
and
 
clearing
 
houses.
 
In connection
 
with some
 
of
these memberships, we may be required
 
to pay a share of the financial
 
obligations of another member who
 
defaults,
 
or
we may be otherwise exposed to additional financial obligations.
 
While the membership rules vary,
 
obligations generally
would arise only if the exchange or clearing house had exhausted its resources. We consider
 
the probability of a material
loss due to such obligations
 
to be remote.
Deposit insurance
Swiss banking
 
law and
 
the deposit
 
insurance system
 
require
 
Swiss banks
 
and securities
 
dealers to
 
jointly guarantee
 
an
amount
 
of
 
up
 
to
 
CHF 6bn
 
for
 
privileged
 
client
 
deposits
 
in
 
the
 
event
 
that
 
a
 
Swiss
 
bank
 
or
 
securities
 
dealer
 
becomes
insolvent. As
 
of 31 December
 
2022,
 
FINMA estimates our
 
share
 
in the deposit
 
insurance system
 
to be
 
CHF 0.9bn.
 
This
represents a
 
contingent payment obligation
 
and exposes us
 
to additional risk.
 
As of 31 December
 
2022, we considered
the probability of a material loss
 
from our obligations to be
 
remote.
UBS is
 
also subject to,
 
or is a
 
member of, other
 
deposit protection
 
schemes in other
 
countries. However,
 
no contingent
payment obligation existed as of 31
 
December 2022 from any other material scheme.
Material cash requirements
The Group’s material
 
cash requirements as of
 
31 December 2022
 
are represented
 
by the residual
 
contractual maturities
for non-derivative and
 
non-trading financial
 
liabilities included
 
in the table
 
presented in
 
“Note 23b
 
Maturity analysis of
financial liabilities on an undiscounted
 
basis”
 
in the “Consolidated financial
 
statements” section
 
of this report. Included
in the table are debt issued designated at fair value (USD 83.4bn)
 
and long-term debt issued measured at amortized cost
(USD 103.7bn). The
 
amounts represent estimated future interest
 
and principal payments
 
on an undiscounted basis.
In the normal
 
course of business,
 
we also issue or
 
enter into various forms
 
of guarantees, loan
 
commitments and other
similar arrangements that may result in an outflow
 
of cash in the future. The maturity profile of these obligations,
 
which
are
 
presented off
 
-balance sheet,
 
are
 
included in
 
“Note 23b
 
Maturity analysis
 
of financial
 
liabilities on
 
an undiscounted
basis”
 
in the “Consolidated financial statements”
 
section of this report.
›
 
Refer to “Guarantees,
 
loan commitments
 
and similar arrangements”
 
in this section
 
for more information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capi
tal,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Balance
 
sheet
 
and
 
off
-
balance
 
sheet
 
159
 
Cash flows
As a global financial institution, our cash flows are complex and often may
 
bear little relation to our net earnings and net
assets. Consequently,
 
we believe
 
that
 
a
 
traditional
 
cash
 
flow analysis
 
is
 
less
 
meaningful
 
when
 
evaluating our
 
liquidity
position
 
than
 
the
 
liquidity,
 
funding
 
and
 
capital
 
management
 
frameworks
 
and
 
measures
 
described
 
elsewhere
 
in
 
this
section.
›
 
Refer to the “Liquidity
 
and funding management”
 
section of this
 
report for more information
Cash and cash equivalents
As of
 
31
 
December 2022,
 
cash and
 
cash equivalents
 
totaled USD
 
195.3bn,
 
a decrease
 
of USD
 
12.6bn
 
compared
 
with
31 December
 
2021,
 
driven
 
by
 
net
 
cash
 
outflows
 
from
 
investing
 
and
 
financing
 
activities,
 
as
 
well
 
as
 
negative
 
foreign
exchange effects,
 
largely reflecting
 
appreciation
 
of the
 
US dollar
 
against the
 
yen, euro
 
and Swiss
 
franc in
 
2022.
 
These
effects were partly offset by
 
net cash inflows from operating
 
activities.
 
Operating activities
Net
 
cash
 
inflows
 
from
 
operating
 
activities
 
were
 
USD 14.6bn
 
in
 
2022,
 
compared
 
with
 
USD 31.4bn
 
in
 
2021.
 
The
 
net
operating
 
cash
 
flow,
 
before
 
changes
 
in
 
operating
 
assets
 
and
 
liabilities
 
and
 
income
 
taxes
 
paid,
 
was
 
an
 
outflow
 
of
USD 2.0bn. Changes
 
in operating assets
 
and liabilities resulted
 
in net cash
 
inflows of USD
 
16.6bn, mainly driven
 
by net
inflows of USD
 
8.0bn from financial assets and liabilities
 
at fair value held for
 
trading and derivative financial instruments,
USD 6.0bn from brokerage receivables and
 
payables, USD 5.7bn from financial assets and liabilities at fair value not held
for
 
trading
 
and
 
other
 
financial
 
assets
 
and
 
liabilities,
 
as
 
well
 
as
 
USD 4.4bn
 
from
 
securities
 
financing
 
transactions
 
at
amortized cost. These
 
inflows were
 
partly offset by
 
a net outflow
 
from loans
 
and advances to customers
 
and customer
deposits of USD 5.2bn and
 
income tax paid
 
of USD 1.6bn.
Investing activities
Investing activities resulted
 
in a net
 
cash outflow
 
of USD 12.4bn
 
in 2022, compared
 
with USD 2.1bn
 
in 2021, primarily
related to a cash outflow of USD
 
12.0bn from net purchases
 
of debt securities measured
 
at amortized cost.
Financing activities
Financing activities
 
resulted in a
 
net cash outflow of
 
USD 9.1bn in 2022,
 
compared with an inflow
 
of USD 10.3bn in 2021,
mainly due to
 
net repayment of short-term
 
debt of USD
 
12.2bn, net cash
 
used to repurchase
 
treasury shares of USD
 
6.0bn
and
 
a
 
dividend distribution
 
to
 
shareholders of
 
USD 1.7bn.
 
This outflow
 
was
 
partly offset
 
by
 
net
 
issuance proceeds
 
of
USD 11.4bn from debt designated
 
at fair value and long-term
 
debt measured at amortized
 
cost.
 
›
 
Refer to “Primary
 
financial statements
 
and share information”
 
in the “Consolidated
 
financial statements”
 
section of this
 
report for
more information about
 
cash flows
 
Statement of cash flows
 
(condensed)
For the year ended
USD bn
31.12.22
31.12.21
Net cash flow from / (used in) operating activities
14.6
31.4
Net cash flow from / (used in) investing activities
(12.4)
(2.1)
Net cash flow from / (used in) financing activities
(9.1)
10.3
Effects of exchange rate differences on cash and
 
cash equivalents
 
(5.7)
(5.3)
Net increase / (decrease) in cash
 
and cash equivalents
 
(12.6)
34.3
Cash and cash equivalents at the end
 
of the year
 
195.3
207.9
 
 
 
 
Currency management
Strategy, objectives
 
and governance
Group Treasury
 
focuses on three main areas of currency risk management: (i)
 
currency-matched funding
 
and investment
of non-US-dollar assets and liabilities; (ii) sell-down of foreign currency
 
International Financial Reporting Standards profits
and
 
losses;
 
and
 
(iii) selective
 
hedging
 
of
 
anticipated
 
non-US-dollar
 
profits
 
and
 
losses
 
to
 
further mitigate
 
the
 
effect
 
of
structural
 
imbalances
 
in
 
the
 
balance
 
sheet.
 
Group
 
Treasury
 
also
 
manages
 
structural
 
currency
 
composition
 
at
 
the
consolidated Group level.
Currency-matched funding and
 
investment of non-US-dollar
 
assets and liabilities
For monetary
 
balance sheet
 
items and
 
other investments,
 
as far
 
as is
 
practical and
 
efficient, we
 
follow the
 
principle of
matching the currencies of
 
our assets and
 
liabilities for funding
 
purposes. This avoids
 
profits and losses
 
arising from
 
the
translation of non
 
-US-dollar assets and liabilities.
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
Currency
 
management
 
160
 
Net investment hedge accounting is applied to non-US-dollar core investments to balance the effect of foreign exchange
movements on both common equity tier
 
1 (CET1)
 
capital and the CET1 capital ratio.
›
 
Refer to “Note 1a
 
Material accounting
 
policies”
 
and “Note 25
 
Hedge accounting”
 
in the “Consolidated
 
financial statements”
section of this report
 
for more information
›
 
Refer to “Capital
 
management” in
 
this section for
 
more information about
 
our active management
 
of sensitivity to
 
currency
movements and the
 
effect thereof on our
 
key ratios
Sell-down of non-US-dollar reported
 
profits and losses
Income statement
 
items of
 
foreign
 
subsidiaries
 
and
 
branches of
 
UBS AG
 
with a
 
functional currency
 
other than
 
the US
dollar
 
are
 
translated
 
into
 
US
 
dollars
 
at
 
average
 
exchange
 
rates.
 
To
 
reduce
 
earnings
 
volatility
 
on
 
the
 
translation
 
of
previously recognized earnings in foreign currencies, Group Treasury
 
centralizes the profits and losses (under IFRS) arising
in UBS AG and its branches and sells or
 
buys the profit or loss for US dollars
 
on a monthly basis. Our foreign subsidiaries
follow a similar monthly sell-down process
 
into their own functional currencies. Retained
 
earnings in foreign subsidiaries
with a
 
functional currency
 
other than
 
the US
 
dollar are
 
integrated
 
and
 
managed
 
as part
 
of our
 
net investment
 
hedge
accounting program.
Hedging of anticipated non
 
-US-dollar profits and losses
The
 
Group
 
Asset
 
and
 
Liability
 
Committee
 
may
 
at
 
any
 
time
 
instruct
 
Group
 
Treasury
 
to
 
execute
 
hedges
 
to
 
protect
anticipated
 
future
 
profits
 
and
 
losses
 
in
 
foreign
 
currencies
 
against
 
possible
 
adverse
 
trends
 
of
 
foreign
 
exchange
 
rates.
Although intended to hedge future earnings, these
 
transactions are accounted for as
 
open currency positions and subject
to internal market risk limits for value-at-
 
risk and stress loss limits.
Dividend distribution
 
UBS
 
Group
 
AG
 
declare
s
 
dividends
 
in
 
US
 
dollars.
 
Shareholders
holding
 
shares
 
through
the
SIX
Swiss
 
Exchange
(ISIN: CH0244767585)
 
will receive
 
dividends
 
in Swiss
 
francs, based
 
on a
 
published exchange
 
rate calculated
 
up
 
to five
decimal places,
 
on the day
 
prior to the
 
ex-dividend date. Shareholders holding shares through DTC
 
(ISIN: CH0244767585;
CUSIP: H42097107)
 
will be paid dividends in US dollars.
›
 
Refer to the “Standalone
 
financial statements”
 
section of this
 
report for more information
 
about the proposed
 
dividend
distribution of
 
UBS Group AG
 
 
 
 
UBS shares
UBS Group AG shares
Audited |
 
As
 
of
 
31 December
 
2022,
 
IFRS
 
equity
 
attributable to
 
shareholders amounted
 
to
 
USD
56,876
m,
 
represented by
3,524,635,722
 
shares issued. Shares
 
issued decreased by
177,787,273
 
shares in
 
2022 as
 
the shares acquired
 
under the
2021 share
 
repurchase program from
 
its inception in 2021
 
until 18 February 2022 were
 
canceled by means
 
of a
 
capital
reduction, as approved by
 
shareholders at the
 
2022
 
Annual General Meeting
 
(the AGM).
Each share has a nominal value of CHF
0.10
, carries one vote if entered into the share register as
 
having the right to vote,
and also entitles the holder
 
to a proportionate share
 
of distributed dividends.
 
All shares are fully
 
paid up. As the Articles
 
of
Association of
 
UBS Group AG indicate,
 
there are
 
no other classes
 
of shares and no preferential
 
rights for shareholders.
p
 
›
 
Refer to “Share information
 
and earnings per
 
share” in the “Consolidated
 
financial statements”
 
section of this report
 
for more
information about the
 
planned conversion
 
of our share capital
 
nominal currency
 
in 2023
›
 
Refer to the “Corporate
 
governance”
 
section of this
 
report for more information
 
about UBS shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
UBS
 
shares
 
161
 
UBS Group share
 
information
As of or for the year ended
% change from
31.12.22
31.12.21
31.12.21
Shares issued
3,524,635,722
3,702,422,995
(5)
Treasury shares
1
416,909,010
302,815,328
38
of which: related to share repurchase program 2021
62,548,000
152,596,273
(59)
of which: related to share repurchase program 2022
233,901,950
Shares outstanding
3,107,726,712
3,399,607,667
(9)
Basic earnings per share (USD)
2
2.34
2.14
9
Basic earnings per share (CHF)
3
2.23
1.96
14
Diluted earnings per share (USD)
2
2.25
2.06
9
Diluted earnings per share (CHF)
3
2.14
1.88
14
Equity attributable to shareholders (USD m)
56,876
60,662
(6)
Less: goodwill and intangible assets (USD m)
6,267
6,378
(2)
Tangible equity attributable to
 
shareholders (USD m)
50,609
54,283
(7)
Ordinary cash dividends per share (USD)
4,5
0.55
0.50
10
Total book value per share (USD)
18.30
17.84
3
Tangible book value per
 
share (USD)
16.28
15.97
2
Share price (USD)
6
18.61
18.01
3
Market capitalization (USD m)
57,848
61,230
(6)
1 Based on a settlement
 
date view.
 
2 Refer to “Share information
 
and earnings per share”
 
in the “Consolidated financial
 
statements” section of this
 
report for more information.
 
3 Basic and diluted earnings
 
per
share in Swiss
 
francs
 
are calculated
 
based on
 
a translation
 
of net profit
 
/ (loss)
 
under our
 
US dollar
 
presentation currency.
 
4 Dividends
 
and /
 
or distributions
 
out of the
 
capital contribution
 
reserve are
 
normally
approved and paid in the year subsequent
 
to the reporting period.
 
5 Refer to “Statement
 
of proposed appropriation
 
of total profit and dividend
 
distribution out of total profit and capital
 
contribution reserve” in the
“Standalone financial
 
statements” section
 
of this report for
 
more information.
 
6 Represents the
 
share price as
 
listed on t
 
he SIX Swiss Exchange,
 
translated to
 
US dollars
 
using the closing exchange
 
rate as of
 
the
respective date.
Holding of UBS Group AG shares
 
Group Treasury
 
holds UBS Group
 
AG shares to hedge
 
future share delivery obligations
 
related to employee share
 
-based
compensation awards, and also holds shares purchased under share repurchase
 
programs. As of 31 December 2022, we
held a total of 416,909,010
 
treasury shares (31 December 2021:
 
302,815,328).
Our 2021 share repurchase program was concluded on 29
 
March 2022 with the purchase of an additional 87.7m shares
in 2022 for an acquisition cost of
 
USD 1,637m
 
(CHF 1,516m). The 177.8m shares
 
repurchased under this program from
its inception
 
until 18 February
 
2022
 
for a total
 
acquisition cost
 
of USD 3,022
 
m
 
(CHF 2,775m) were
 
canceled by
 
means
of a
 
capital reduction,
 
as approved
 
by shareholders
 
at the
 
2022
 
AGM.
 
We also
 
intend to
 
cancel the
 
remaining
 
shares
purchased under the 2021
 
program, subject to shareholder approval
 
at the 2023 AGM.
On 31 March
 
2022, we
 
commenced a new,
 
2022
 
share repurchase
 
program of up
 
to USD 6bn.
 
Shares acquired
 
under
this program totaled 233
 
.9m
 
as of 31 December 2022 for a total acquisition cost of USD
 
3,944m
 
(CHF 3,808m) and are
intended to be canceled by means
 
of a capital reduction, pending
 
approval by shareholders at a future AGM.
Looking ahead, we
 
intend to commence a new, 2023
 
repurchase program of up
 
to USD 6bn over two years
 
and expect
to execute
 
more than
 
USD 5bn
 
of share
 
repurchases under
 
both the
 
existing, 2022
 
repurchase
 
program
 
and
 
the new
program in 2023.
 
Treasury
 
shares
 
held
 
to
 
hedge
 
our
 
share
 
delivery
 
obligations
 
related
 
to
 
employee
 
share-based
 
compensation
 
awards
totaled 119m shares as
 
of 31 December 2022
 
(31 December 2021:
 
149m). Share delivery
 
obligations related to employee
share-based
 
compensation
 
awards
 
totaled 178m
 
shares
 
as of
 
31 December 202
 
2
 
(31 December 202
 
1:
 
175m)
 
and are
calculated on
 
the basis
 
of undistributed
 
notional share
 
awards, taking
 
applicable performance conditions
 
into account.
Treasury shares held are delivered to employees
 
at exercise
 
or vesting. As of
 
31 December 2022, up to 122m UBS
 
Group
AG
 
shares
 
(31 December
 
2021:
 
122m)
 
could
 
have
 
been
 
issued
 
out
 
of
 
conditional
 
capital
 
to
 
satisfy
 
share
 
delivery
obligations of any future employee share
 
option programs or similar awards.
 
The Investment
 
Bank also
 
holds a
 
limited number
 
of UBS Group
 
AG shares,
 
primarily in
 
its capacity
 
as a
 
market-maker
with regard to UBS
 
Group AG shares and related derivatives, and to hedge
 
certain issued structured debt instruments.
 
The
 
table
 
below
 
outlines
 
the
 
market
 
purchases
 
of
 
UBS Group
 
AG
 
shares
 
by
 
Group
 
Treasury.
 
It
 
does
 
not
 
include
 
the
activities of the Investment Bank.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Risk,
 
capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet
 
|
 
UBS
 
shares
 
162
 
Treasury
 
share purchases
Share repurchase programs
1
Other treasury shares purchased
2
Month of
purchase
3
Number of shares
Average price
in USD
Remaining volume of
2021 share repurchase
program in CHF m
at month-end
Remaining volume of
2021 share repurchase
program in USD m
at month-end
4
Remaining volume of
2022 share repurchase
program in USD m
at month-end
Number of shares
Average price in
USD
January 2022
1,706
1,843
February 2022
38,231,000
20.05
999
1,089
March 2022
51,928,000
17.68
190
5
205
5
5,952
April 2022
29,420,000
18.14
5,418
May 2022
31,670,000
17.65
4,859
June 2022
32,124,500
16.78
4,320
July 2022
32,152,000
15.83
3,811
August 2022
18,284,450
16.41
3,511
September 2022
14,114,500
15.23
3,296
12,510,000
16.52
October 2022
30,526,500
15.15
2,833
November 2022
23,769,000
17.70
2,413
December 2022
20,571,000
18.40
2,034
1 In February 2021,
 
UBS initiated a
 
share repurchase program
 
of up to CHF 4bn
 
and this program
 
was concluded
 
on 29 March 2022
 
.
 
UBS has an
 
active share repurchase
 
program to buy
 
back up to USD
 
6bn of its
own shares over the two-year period started in March 2022. The
 
share buybacks were transacted in Swiss francs
 
on a separate trading line on the SIX Swiss
 
Exchange.
 
2 This table excludes purchases
 
for the purpose
of hedging derivatives linked
 
to UBS Group AG shares and for
 
market-making in
 
UBS Group AG shares. The
 
table also excludes UBS Group
 
AG shares purchased
 
by post-employment benefit
 
funds for UBS employees,
which are managed
 
by a board
 
of UBS mana
 
gement and employee
 
representatives in accordance
 
with Swiss law.
 
UBS’s post
 
-employment benefit
 
funds purchased 1,243,164
 
UBS Group AG
 
shares during the
 
year
and held 14,213,559 UBS Group
 
AG shares as of
 
31 December 2022.
 
3 Based on the transaction
 
date of the respective
 
treasury share
 
purchases.
 
4 The remaining
 
volume of the 2021 share
 
repurchase program
in US dollars was calculated
 
based on the remaining volume
 
in Swiss francs and the
 
respective month-end closing
 
exchange rate.
 
5 The 2021
 
share repurchase program was
 
concluded on 29 March
 
2022.
 
Trading
 
volumes
For the year ended
1,000 shares
31.12.22
31.12.21
31.12.20
SIX Swiss Exchange total
 
2,433,051
2,514,259
5,095,908
SIX Swiss Exchange daily average
9,579
9,899
20,222
New York Stock
 
Exchange total
186,468
137,366
260,681
New York Stock
 
Exchange daily average
743
545
1,030
Source: Reuters
Listing of UBS Group AG shares
UBS Group AG
 
shares are
 
listed on
 
the SIX Swiss
 
Exchange (SIX).
 
They are also
 
listed on
 
the New
 
York
 
Stock Exchange
(the NYSE)
 
as global
 
registered
 
shares. As
 
such, they
 
can be
 
traded and
 
transferred across
 
applicable borders
 
,
 
without
the need for conversion, with identical shares
 
traded on different stock
 
exchanges in different currencies.
During 2022, the average daily trading volume of UBS Group AG shares was 9.6m shares on SIX and 0.7m shares on the
NYSE. SIX is
 
expected to remain
 
the main venue
 
for determining the
 
movement in our
 
share price,
 
because of
 
the high
volume traded on this exchange.
During the hours
 
in which both
 
SIX and the
 
NYSE are simultaneously
 
open for trading,
 
price differences between
 
these
exchanges are
 
likely to be
 
arbitraged away
 
by professional
 
market-makers.
 
Accordingly,
 
the share
 
price will typically
 
be
similar between
 
the two
 
exchanges when
 
considering the prevailing
 
US dollar /
 
Swiss franc exchange
 
rate. When SIX
 
is
closed
 
for
 
trading,
 
globally
 
traded
 
volumes
 
will
 
typically
 
be
 
lower.
 
However,
 
the
 
specialist
 
firm
 
making
 
a
 
market
 
in
UBS Group AG shares
 
on the NYSE
 
is required
 
to facilitate
 
sufficient liquidity and maintain
 
an orderly
 
market in
 
UBS Group
AG shares throughout
 
normal NYSE trading hours.
 
Ticker symbols UBS Group
 
AG
Security identification
 
codes
Trading exchange
SIX / NYSE
Bloomberg
Reuters
ISIN
CH0244767585
SIX Swiss Exchange
UBSG
UBSG SW
UBSG.S
Valoren
24 476 758
New York Stock
 
Exchange
UBS
UBS UN
UBS.N
CUSIP
CINS H42097 10 7
 
 
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
163
 
Corporate governance
 
and
compensation
Management report
 
 
 
Audited information
 
according to the Swiss
 
law and applicable
 
regulatory
requirements and
 
guidance
Disclosures
 
provided
 
are
 
in
 
line
 
with
 
the
 
requirements
 
of
 
the
 
Swiss
 
Code
 
of
 
Obligations
 
(tables
 
containing
 
such
information are marked as “Audited”
 
throughout this section), as well as other
 
applicable regulations and
 
guidance.
 
 
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
164
 
Corporate governance
 
 
 
Table of contents
165
166
167
171
173
189
196
196
198
 
 
 
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
165
 
Corporate governance
UBS Group AG is subject to, and complies with, all relevant Swiss legal
 
and regulatory requirements regarding
 
corporate
governance, including the SIX Swiss Exchange’s Directive
 
on Information relating to Corporate Governance (the
 
SIX Swiss
Exchange Corporate Governance
 
Directive) and the standards established in
 
the Swiss Code
 
of Best
 
Practice for
 
Corporate
Governance.
 
The revised
 
Swiss Code
 
of Obligations
 
entered into
 
force on
 
1 January 2023
 
.
 
The correspondingly
 
amended Articles
 
of
Association of
 
UBS Group
 
AG (the
 
AoA) will
 
be submitted
 
to the Annual
 
General
 
Meeting (the
 
AGM) on
 
5 April 2023
for
 
approval.
 
The
 
implementation
 
of
 
resulting
 
amendments
 
based
 
on
 
the
 
revised
 
Swiss
 
Code
 
of
 
Obligations
 
will
 
be
reflected in the Annual
 
Report 2023.
As a foreign company with shares listed on
 
the New York Stock Exchange (the NYSE), UBS
 
Group AG also complies with
all relevant corporate governance standards
 
applicable to foreign private issuers.
The Organization Regulations of
 
UBS Group AG, adopted by the
 
Board of Directors (the BoD) based on Art. 716b of the
Swiss Code of Obligations
 
and Art. 25 and 27 of the AoA,
 
constitute our primary corporate governance guidelines.
 
To the
 
extent practicable, the
 
governance structures
 
of UBS
 
Group AG and
 
UBS AG are aligned.
 
UBS AG complies
 
with
all relevant Swiss legal and regulatory corporate governance requirements. As a foreign private
 
issuer with debt securities
listed on the NYSE, UBS AG also complies with the relevant NYSE corporate governance standards.
 
The discussion in this
section refers to both UBS Group
 
AG and UBS AG, unless
 
specifically noted otherwise or unless the
 
information discussed
is
 
relevant
 
only
 
to
 
listed
 
companies
 
and
 
therefore
 
only
 
applicable
 
to
 
UBS Group
 
AG. This
 
approach
 
is
 
in
 
line
 
with
 
US
Securities and Exchange Commission
 
(SEC) regulations and
 
NYSE standards.
 
›
 
Refer to the Articles
 
of Association of
 
UBS Group AG and
 
of UBS AG, and
 
to the Organization
 
Regulations of
 
UBS Group AG,
available at
ubs.com/governance
and
ubs.com/ubs-ag-governance,
 
for more information
›
 
The SIX Swiss Exchange
 
Corporate Governance
 
Directive is available
 
at
 
ser-ag.com/content/dam/
serag/downloads/regulation/listing/directives/dcg-en.pdf,
 
the Swiss Code
 
of Best Practice
 
for Corporate Governance
 
at
economiesuisse.ch/en/publications/swiss-code-best-practice-corporate-governance
 
and the NYSE
 
rules at
nyseguide.srorules.com/listed-company-manual
Differences from corporate governance
 
standards relevant
 
to US-listed companies
The NYSE standards on corporate
 
governance require foreign private
 
issuers to disclose
 
any significant ways in which their
corporate governance
 
practices differ
 
from those that
 
have to be followed
 
by domestic companies.
 
The key differences
 
are
discussed below.
Responsibility of the Audit Committee
 
regarding independent
 
auditors
Our Audit
 
Committee is responsible
 
for the compensation,
 
retention and
 
oversight of independent
 
auditors. It assesses
the
 
performance
 
and
 
qualifications
 
of
 
external
 
auditors
 
and
 
submits
 
proposals
 
for
 
appointment,
 
reappointment
 
or
removal of independent auditors to the BoD. As
 
required by the Swiss Code of Obligations,
 
the BoD submits its
 
proposals
for a shareholder vote
 
at the AGM. Under NYSE standards audit committees are responsible for appointing
 
independent
auditors.
Discussion of risk assessment and
 
risk management policies by the Risk Committee
As per
 
the Organization Regulations of
 
UBS Group AG
 
and UBS AG, the Risk
 
Committee, instead of
 
the Audit
 
Committee,
as
 
per
 
NYSE
 
standards,
 
oversees
 
our
 
risk
 
principles
 
and
 
risk
 
capacity
 
on
 
behalf
 
of
 
the
 
BoD.
 
The
 
Risk
 
Committee
 
is
responsible for monitoring
 
our adherence to those
 
risk principles and monitoring whether business
 
divisions and control
units maintain appropriate systems of
 
risk management and control.
Supervision of the internal audit function
Although under NYSE standards
 
only audit committees supervise internal audit functions,
 
the Chairman of the BoD (the
Chairman) and the Audit
 
Committee share the supervisory responsibility
 
and authority with respect
 
to the internal audit
function.
Responsibility of the Compensation
 
Committee for performance evaluations of
 
senior management of UBS Group
 
AG
In line with
 
Swiss law,
 
our Compensation
 
Committee, together with the
 
BoD, proposes
 
for shareholder
 
approval at
 
the
AGM
 
the
 
maximum
 
aggregate
 
amount
 
of
 
compensation
 
for
 
the
 
BoD,
 
the
 
maximum
 
aggregate
 
amount
 
of
 
fixed
compensation for the Group Executive Board (the GEB) and
 
the aggregate amount of variable
 
compensation for the GEB.
The members of the Compensation
 
Committee are elected by the AGM. Under
 
NYSE standards it is the responsibility
 
of
compensation committees to evaluate
 
senior management’s performance and to determine
 
and approve, as a committee
or together with the other independent
 
directors, the compensation thereof.
Proxy statement reports of the Audit Committee
 
and the Compensation
 
Committee
NYSE standards require the aforementioned committees to submit their reports directly to shareholders.
 
However,
 
under
Swiss law
 
all reports to
 
shareholders, including those from
 
the aforementioned committees, are provided to
 
and approved
by the BoD, which has ultimate responsibility
 
to the shareholders.
 
 
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
166
 
Shareholder votes on equity
 
compensation plans
NYSE standards
 
require
 
shareholder
 
approval
 
for the
 
establishing
 
of and
 
material revisions
 
to all
 
equity
 
compensation
plans.
 
However,
 
as
 
per
 
Swiss
 
law,
 
the
 
BoD
 
approves
 
compensation
 
plans.
 
Shareholder
 
approval
 
is
 
only
 
mandatory
 
if
equity-based compensation
 
plans
 
require
 
an increase
 
in capital.
 
No
 
shareholder
 
approval
 
is required
 
if shares
 
for such
plans are purchased
 
in the market.
›
 
Refer to
 
in this
 
section for more information
 
about the BoD’s committees
›
 
Refer to
 
in this section
 
for more information
 
about UBS Group
 
AG’s capital
 
 
Group structure and shareholders
Operational Group structure
As
 
of
 
31 December
 
2022,
 
the
 
operational
 
structure
 
of
 
the
 
Group
 
is
 
composed
 
of
 
the
 
Global
 
Wealth
 
Management,
Personal & Corporate Banking,
 
Asset Management and Investment Bank business
 
divisions, as well
 
as Group Functions.
 
›
 
Refer to the
 
section of this
 
report for more information
 
about our business
 
divisions
 
and Group Functions
›
 
Refer to
 
and to
 
in the
 
section of this report
 
for more information
›
 
Refer to the
 
section of this
 
report for more information
Listed and non-listed companies belonging
 
to the Group
The Group includes
 
a number of consolidated entities, of
 
which only UBS Group
 
AG shares are listed.
UBS Group AG’s registered
 
office is at Bahnhofstrasse 45, CH
 
-8001 Zurich, Switzerland. UBS Group AG
 
shares are listed
on the SIX Swiss Exchange (ISIN:
 
CH0244767585) and on
 
the NYSE (CUSIP: H42097107).
›
 
Refer to
 
in the
 
section of this
 
report for information
 
about UBS
Group AG’s market capitalization
 
and shares held
 
by Group entities
›
 
Refer to
 
in the
 
section of this
 
report for
more information about
 
the significant
 
subsidiaries
 
of the Group
Significant shareholders
General rules
Under the Swiss Federal Act on Financial Market Infrastructures and Market Conduct in Securities
 
and Derivatives Trading
of 19 June 2015 (the FMIA), anyone directly, indirectly or acting in concert with third parties holding shares in a company
listed in Switzerland or holding derivative
 
rights related to shares in such
 
a company directly,
 
indirectly or in concert with
third parties must notify the company and the SIX Swiss Exchange (SIX) if the holding reaches, falls below or exceeds one
of the following percentage thresholds:
 
3, 5, 10, 15, 20, 25, 33
1
⁄
3
, 50 or 66
2
⁄
3
% of voting rights, regardless of whether
 
or
not such rights may be
 
exercised. Nominee companies that cannot autonomously decide how voting rights are
 
exercised
are not required to notify
 
the company and
 
SIX if they reach,
 
exceed or fall
 
below the aforementioned
 
thresholds.
Pursuant
 
to
 
the
 
Swiss
 
Code
 
of
 
Obligations,
 
we
 
disclose
 
in
 
“Note
 
24
 
Significant shareholders”
 
to
 
the
 
UBS
 
Group
 
AG
standalone financial statements the identity of any shareholder with a holding of more
 
than 5% of the total share capital
of UBS Group AG.
Shareholders subject to FMIA disclosure
 
notifications
According to the mandatory FMIA
 
disclosure notifications
 
filed with UBS Group AG
 
and SIX, as of 31 December 2022,
the following entities held more than
 
3% of
 
the total share capital of UBS
 
Group AG: BlackRock Inc.,
 
New York,
 
which
disclosed a holding of 5.23%
 
on 29 June 2022; Dodge
 
& Cox International Stock Fund, San Francisco, which
 
disclosed
a holding of 3.02% on 28
 
January 2022; Massachusetts Financial Services Company,
 
Boston, which disclosed a holding
of 3.01% on 25 June
 
2021; Artisan Partners Limited Partnership,
 
Milwaukee, which disclosed a holding
 
of 3.15% on
18 November 2020; and Norges
 
Bank, Oslo, which disclosed a holding
 
of 3.01% on 25
 
July 2019.
 
As
 
registration
 
in
 
the
 
UBS
 
share
 
register
 
is
 
optional,
 
the
 
aforementioned
 
shareholders
 
that
 
crossed
 
the
 
indicated
percentage
 
thresholds and
 
were required
 
to notify
 
their holding
 
to UBS
 
and SIX
 
do not
 
necessarily appear
 
in the
 
table
below, as such table only discloses
 
registered shareholders.
In
 
accordance
 
with
 
the
 
FMIA,
 
the
 
aforementioned
 
holdings
 
are
 
calculated
 
in
 
relation
 
to
 
the
 
total
 
share
 
capital
 
of
UBS Group AG reflected in the AoA
 
at the time of the respective disclosure notification.
 
Information
 
on
 
disclosures
 
under
 
the
 
FMIA
 
is
 
available
 
at
ser-ag.com/en/resources/notifications-market-
participants/significant-shareholders.html.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
167
 
Shareholders registered in
 
the UBS share register with 3% or more
 
of the share capital of UBS Group
 
AG
As a supplement to the mandatory disclosure
 
requirements according
 
to the SIX Swiss Exchange Corporate
 
Governance
Directive, we disclose in the
 
table below the
 
shareholders (acting in their
 
own name or in their capacity
 
as nominees for
other investors or
 
beneficial owners)
 
that were registered
 
in the UBS
 
share register
 
with 3%
 
or more
 
of the total
 
share
capital of UBS Group AG as
 
of 31 December 2022.
 
›
 
Refer to
 
in this section for
 
more information
 
about voting
 
rights, restrictions
 
and
representation
 
Audited |
 
Shareholders registered
 
in the UBS share
 
register with
 
3% or more of the
 
total share
 
capital
1
% of share capital
31.12.22
31.12.21
31.12.20
Chase Nominees Ltd., London
2
 
8.60
 
8.89
 
10.39
DTC (Cede & Co.), New York
2,3
 
7.12
 
5.78
 
4.99
Nortrust Nominees Ltd., London
2
 
4.33
 
4.80
 
5.15
1 As registration in
 
the UBS share register
 
is optional, shareholders
 
crossing the threshold
 
percentages requiring
 
SIX notification
 
under the FMIA do
 
not necessarily appear
 
in this table.
 
2 Nominee companies
 
and
securities clearing
 
organizations cannot
 
autonomously
 
decide how
 
voting
 
rights are
 
exercised and
 
are therefore
 
not obligated
 
to notify
 
UBS and SIX
 
if they
 
reach, exceed
 
or fall
 
below the
 
threshold percentages
requiring disclosure
 
notification under
 
the FMIA. Consequently,
 
they do
 
not appear in
 
the “Shareholders
 
subject to FMIA
 
disclosure notifications”
 
section above.
 
3 DTC (Cede
 
& Co.), New
 
York, “The
 
Depository
Trust Company,”
 
is a US securities clearing
 
organization.
Cross-shareholdings
 
UBS
 
Group
 
AG has
 
no
 
cross-shareholdings
 
where
 
reciprocal ownership
 
would
 
be in
 
excess of
 
5% of
 
capital or
 
voting
rights with any other company.
 
 
Share capital structure
Ordinary share capital
At year-end 2022,
 
UBS Group AG had 3,524,635,722 issued shares
 
with a nominal value of CHF 0.10 each, equating to
a share capital of CHF 352,463,572.20.
 
Under Swiss
 
company law, shareholders
 
must approve,
 
in a general
 
meeting of shareholders,
 
any increase or
 
reduction
in the ordinary share capital or the creation
 
of conditional or authorized share
 
capital.
 
In 2022, our shareholders were asked to
 
approve a reduction of share
 
capital by way
 
of canceling 177,787,273 registered
shares repurchased under
 
the 2021 share buyback program.
 
In 2022, our shareholders
 
were not asked to approve the creation of conditional
 
or authorized share capital.
No
 
shares
 
were
 
issued
 
out
 
of
 
existing
 
conditional
 
capital, as
 
there
 
were
 
no
 
employee
 
options
 
and
 
stock
 
appreciation
rights outstanding.
 
Following
 
revisions to
 
Swiss Corporate
 
Law
 
that are
 
effective
 
from 1
 
January 2023,
 
the BoD
 
will propose
 
at the
 
2023
AGM that the shareholders approve
 
the conversion of the share
 
capital currency of UBS
 
Group AG from the
 
Swiss franc
to the US dollar.
›
 
Refer to
 
in the
 
section of this report
 
for
information about the
 
conversion of
 
the share capital
 
currency
 
Distribution of UBS shares
 
As of 31 December 2022
Shareholders registered
Shares registered
Number of shares registered
Number
%
Number
% of shares issued
1–100
21 641
 
11.6
1 189 373
 
0.0
101–1,000
95 818
 
51.4
45 447 811
 
1.3
1,001–10,000
62 369
 
33.4
182 418 473
 
5.2
10,001–100,000
6 086
 
3.3
144 786 290
 
4.1
100,001–1,000,000
 
512
 
0.3
149 728 515
 
4.2
1,000,001–5,000,000
 
83
 
0.0
178 206 417
 
5.1
5,000,001–35,246,357 (1%)
 
24
 
0.0
253 068 282
 
7.2
1–2%
 
3
 
0.0
134 680 829
 
3.8
2–3%
 
0
 
0.0
 
0
 
0.0
3–4%
 
0
 
0.0
 
0
 
0.0
4–5%
 
1
 
0.0
152 567 310
 
4.3
Over 5%
 
2
1
 
0.0
553 962 520
 
15.7
Total shares registered
186 539
 
100.0
1 796 055 820
2
 
51.0
Shares not registered
3
1 728 579 902
 
49.0
Total
186 539
 
100.0
3 524 635 722
 
100.0
1 On 31 December 2022, Chase Nominees
 
Ltd., London, entered as a nominee,
 
was registered with 8.60%
 
of all UBS shares issued. However,
 
according to the provisions of UBS
 
Group AG, voting rights
 
of nominees
are limited to a maximum of 5% of all UBS shares issued.
 
The US securities clearing
 
organization DTC (Cede & Co.), New
 
York, was
 
registered with 7.12% of all UBS
 
shares issued and is not subject to this 5% voting
limit as a securities clearing
 
organization.
 
2 Of the total shares registered,
 
264,874,790 shares
 
did not carry voting rig
 
hts.
 
3 Shares not entered in
 
the UBS share register
 
as of 31 December 2022.
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
168
 
Conditional share capital
At year-end 2022,
 
the following conditional share
 
capital was available to UBS Group
 
AG’s BoD.
 
–
 
A maximum of
 
CHF 38,000,000
 
represented by
 
up to 380,000,000
 
fully paid registered
 
shares with
 
a nominal value
of CHF
 
0.10
 
each, to
 
be issued
 
through
 
the voluntary
 
or mandatory
 
exercise of
 
conversion
 
rights and
 
/ or
 
warrants
granted in
 
connection with
 
the issuance
 
of bonds or
 
similar financial instruments
 
on national
 
or international
 
capital
markets. This
 
conditional
 
capital allowance
 
was approved
 
at the
 
Extraordinary
 
General Meeting
 
(the EGM)
 
held
 
on
26 November 2014, having originally been approved at the AGM of UBS AG
 
on 14 April 2010. The BoD has not made
use of such allowance.
–
 
A
 
maximum
 
of
 
CHF 12,170,583
 
represented
 
by
 
121,705,830
 
fully
 
paid
 
registered
 
shares
 
with
 
a
 
nominal
 
value
 
of
CHF 0.10 each, to be issued upon exercise of employee
 
options and stock appreciation rights issued to employees and
members of the management and of the BoD of UBS Group AG
 
and its subsidiaries. This conditional capital allowance
was approved by the shareholders
 
at the same EGM in 2014
 
.
 
›
 
Refer to article 4a
 
of the AoA for more
 
information about
 
the terms
 
and conditions of
 
the issue of shares out
 
of existing
conditional capital.
 
The AoA are available
 
at
 
ubs.com/governance
›
 
Refer to the
 
section of this
 
report for more information
 
Conditional capital
 
of UBS Group AG
As of 31 December 2022
Maximum number of shares to
be issued
Year approved by
 
Extraor-
dinary General Meeting
% of shares issued
Employee equity participation plans
 
121,705,830
2014
 
3.45
Conversion rights / warrants granted
 
in connection with bonds
 
380,000,000
2014
 
10.78
Total
 
501,705,830
 
14.23
Authorized share capital
UBS Group AG had
 
no authorized capital available to issue on
 
31 December 2022.
Changes in capital
In
 
accordance
 
with
 
International
 
Financial
 
Reporting
 
Standards
 
(IFRS),
 
Group
 
equity
 
attributable
 
to
 
shareholders
 
was
USD 56.9bn as of 31 December 2022
 
(2021: USD 60.7bn; 2020: USD 59.4bn). The
 
equity of UBS Group
 
AG shareholders
was represented
 
by 3,524,635,722
 
issued shares
 
as of 31
 
December 2022
 
(31 December 2021:
 
3,702,422,995 shares;
31 December 2020: 3,859,055,395
 
shares).
 
›
 
Refer to
 
in the
 
section of
 
this report for more information
about changes in
 
shareholders’ equity
 
over the last
 
three years
Ownership
Ownership of UBS Group AG shares is widely
 
spread. The tables in this section provide information about the
 
distribution
of
 
UBS
 
Group
 
AG
 
shareholders
 
by
 
category
 
and
 
geographic
 
location.
 
This
 
information
 
relates
 
only
 
to
 
shareholders
registered in the UBS share
 
register and cannot be assumed to be representative of UBS
 
Group AG’s entire investor base
or the actual beneficial
 
ownership. Only shareholders registered in the share register as “shareholders with voting rights”
are entitled to exercise voting
 
rights.
›
 
Refer to
 
in this section
 
for more information
As of 31 December 2022,
 
1,531,181,030 UBS
 
Group AG shares
 
were registered in the share
 
register and carried voting
rights, 264,874,790
 
shares were
 
registered in
 
the share
 
register without
 
voting rights,
 
and 1,728,579,902
 
shares were
not registered in the UBS
 
share register. All shares were fully paid
 
up and eligible for dividends. There
 
are no preferential
rights for shareholders, and
 
no other classes of shares have been
 
issued by UBS Group AG.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
169
 
Shareholders, legal
 
entities and nominees:
 
type and geographical
 
distribution
Shareholders registered
As of 31 December 2022
Number
%
Individual shareholders
182 738
 
98.0
Legal entities
3 646
 
1.9
Nominees, fiduciaries
 
155
 
0.1
Total shares registered
186 539
100.0
Shares not registered
Total
186 539
 
100.0
Individual shareholders
Legal entities
Nominees
Total
Number
%
Number
%
Number
%
Number
%
Americas
1 710
 
0.9
 
93
 
0.1
 
78
 
0.0
1 881
 
1.0
of which: USA
1 235
 
0.7
 
52
 
0.0
 
75
 
0.0
1 362
 
0.7
Asia Pacific
5 008
 
2.7
 
93
 
0.0
 
9
 
0.0
5 110
 
2.7
Europe, Middle East
 
and Africa
12 068
 
6.5
 
243
 
0.1
 
40
 
0.0
12 351
 
6.6
of which: Germany
3 821
 
2.0
 
30
 
0.0
 
3
 
0.0
3 854
 
2.1
of which: UK
4 563
 
2.4
 
8
 
0.0
 
7
 
0.0
4 578
 
2.5
of which: rest of Europe
3 415
 
1.8
 
201
 
0.0
 
29
 
0.0
3 645
 
2.0
of which: Middle East and Africa
 
269
 
0.1
 
4
 
0.0
 
1
 
0.0
 
274
 
0.1
Switzerland
163 952
 
87.9
3 217
 
1.7
 
28
 
0.0
167 197
 
89.6
Total shares registered
Shares not registered
Total
182 738
 
98.0
3 646
 
1.9
 
155
 
0.1
186 539
 
100.0
 
At year-end
 
2022,
 
UBS owned
 
416,909,010 UBS
 
Group AG
 
registered
 
shares,
 
which corresponded
 
to 11.83%
 
of the
total share
 
capital of
 
UBS
 
Group
 
AG. At
 
the same
 
time, UBS
 
had
 
acquisition positions
 
relating to
 
440,347,367
 
voting
rights of
 
UBS Group AG and
 
disposal positions relating
 
to 182,025,794 such rights, corresponding to
 
12.49%
 
and 5.16%
of the total voting
 
rights of UBS Group
 
AG, respectively.
 
Of the disposal positions,
 
177,610,490 related
 
to voting rights
on
 
shares
 
deliverable
 
in
 
respect
 
of
 
employee
 
awards.
 
The
 
calculation
 
methodology
 
for
 
the
 
acquisition
 
and
 
disposal
positions
 
is
 
based
 
on
 
the
 
Ordinance
 
of
 
the
 
Swiss
 
Financial
 
Market
 
Supervisory
 
Authority
 
on
 
Financial
 
Market
Infrastructures
 
and
 
Market
 
Conduct
 
in
 
Securities
 
and
 
Derivatives Trading,
 
which
 
states that
 
all
 
future
 
potential
 
share
delivery obligations, irrespective of
 
the contingent nature of the
 
delivery,
 
must be considered.
Employee share ownership
Employee share ownership is encouraged and made
 
possible in a variety of ways. Our Equity Plus Plan is a voluntary plan
that provides eligible employees with
 
the opportunity to purchase
 
UBS Group AG shares
 
at market value and receive, at
no
 
additional
 
cost, one
 
notional
 
UBS Group
 
AG share
 
for every
 
three shares
 
purchased.
 
Additional
 
shares
 
vest after
 
a
maximum
 
of
 
three
 
years,
 
provided
 
the
 
employee
 
remains
 
employed
 
by
 
UBS
 
and
 
has
 
retained
 
the
 
purchased
 
shares
throughout
 
the
 
holding
 
period.
 
The
 
Equity Ownership
 
Plan
 
(the
 
EOP)
 
is
 
a
 
mandatory
 
deferral
 
plan
 
for
 
all
 
employees
(except
 
GEB
 
members)
with
 
regulatory
-
driven
 
deferral
 
requirements
 
or
 
total
 
compensation
 
greater
 
than
USD / CHF 300,000. EOP recipients receive a portion of their deferred performance
 
award in notional shares (or notional
funds for employees in Investment Areas within
 
Asset Management). GEB members receive the
 
equity-based Long-Term
Incentive Plan (the LTIP)
 
instead of the EOP.
 
Both the EOP and LTIP include
 
employment conditions and malus conditions
that
 
allow
 
the
 
firm
 
to
 
reduce
 
or
 
fully
 
forfeit
 
unvested
 
deferred
 
awards
 
under
 
certain
 
circumstances,
 
pursuant
 
to
performance
 
and
 
harmful
 
acts
 
provisions.
 
In
 
addition,
 
forfeiture
 
is
 
triggered
 
in
 
cases
 
where
 
employment
 
has
 
been
terminated for
 
cause.
 
Underlining
 
our emphasis
 
on
 
sustainable
 
performance and
 
risk
 
management, and
 
our focus
 
on
achieving growth ambitions, LTIP
 
awards will only vest
 
if predetermined performance
 
conditions are met.
On 31 December
 
2022,
 
UBS employees
 
held at least
 
7.9% of
 
UBS shares
 
outstanding
 
(including approximately
 
5.05%
in unvested deferred notional shares from our compensation programs).
 
These figures are based on known shareholding
information from
 
employee participation
 
plans, personal holdings
 
with UBS and
 
selected individual retirement
 
plans. At
the end of 2022, at least 25.5% of all employees held UBS shares through the firm’s employee share participation plans.
›
 
Refer to the
 
section of this
 
report for more information
Trading restrictions in UBS shares
UBS
 
employees
 
with
 
regular
 
access
 
to
 
unpublished
 
price-sensitive
 
information
 
about
 
the
 
firm
 
are
 
subject
 
to
 
specific
restrictions in respect to UBS
 
financial instruments, including, but not
 
limited to, pre-clearance requirements and
 
regular
blackout periods.
 
Such UBS employees
 
are not
 
permitted to trade
 
UBS financial instruments
 
in the period
 
starting from
the close of business in New
 
York on
 
the seventh business day
 
of the final month of
 
the financial quarter of UBS
 
Group
AG and ending on the day of
 
the publication of the quarterly financial results.
 
Shares and participation certificates
UBS
 
Group
 
AG has
 
a single
 
class of
 
shares,
 
which are
 
registered
 
shares
 
in the
 
form
 
of uncertificated
 
securities (in
 
the
sense
 
of
 
the
 
Swiss
 
Code
 
of
 
Obligations)
 
and
 
intermediary-held
 
securities
 
(in
 
the
 
sense
 
of
 
the
 
Swiss
 
Federal
 
Act
 
on
Intermediated Securities).
 
Each
 
registered
 
share
 
has a
 
nominal value
 
of CHF
 
0.10
 
and
 
carries one
 
vote, subject
 
to
 
the
restrictions set out under
 
“Transferability,
 
voting rights and nominee
 
registration” below.
We have no participation certificates outstanding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
170
 
Shareholders, legal
 
entities and nominees:
 
type and geographical
 
distribution (continued)
Shares registered
As of 31 December 2022
Number
%
Individual shareholders
384 263 314
 
10.9
Legal entities
490 864 772
 
13.9
Nominees, fiduciaries
920 927 734
 
26.1
Total shares registered
1 796 055 820
 
51.0
Shares not registered
1 728 579 902
 
49.0
Total
3 524 635 722
 
100.0
Individual shareholders
Legal entities
Nominees
Total
Number of shares
%
Number of shares
%
Number of shares
%
Number of shares
%
Americas
2 427 163
 
0.1
29 166 035
 
0.8
342 441 815
 
9.7
374 035 013
 
10.6
of which: USA
935 175
 
0.0
21 746 373
 
0.6
342 247 810
 
9.7
364 929 358
 
10.4
Asia Pacific
19 829 362
 
0.6
12 908 549
 
0.4
7 244 419
 
0.2
39 982 330
 
1.1
Europe, Middle East
 
and Africa
42 154 279
 
1.2
72 455 397
 
2.1
557 324 269
 
15.8
671 933 945
 
19.1
of which: Germany
11 365 680
 
0.3
1 841 712
 
0.1
11 597 965
 
0.4
24 805 357
 
0.7
of which: UK
19 125 762
 
0.5
280 984
 
0.0
517 282 579
 
14.7
536 689 325
 
15.2
of which: rest of Europe
10 608 646
 
0.3
31 497 076
 
0.9
28 310 742
 
0.8
70 416 464
 
2.0
of which: Middle East and Africa
1 054 191
 
0.0
38 835 625
 
1.1
132 983
 
0.0
40 022 799
 
1.1
Switzerland
319 852 510
 
9.1
376 334 791
 
10.7
13 917 231
 
0.4
710 104 532
 
20.1
Total shares registered
384 263 314
 
10.9
490 864 772
 
13.9
920 927 734
 
26.1
1 796 055 820
 
51.0
Shares
 
not registered
 
0
 
0
 
0
1 728 579 902
 
49.0
Total
384 263 314
 
10.9
490 864 772
 
13.9
920 927 734
 
26.1
3 524 635 722
 
100.0
 
Our shares are listed
 
on the NYSE as
 
global registered
 
shares. As such,
 
they can
 
be traded and
 
transferred across
 
applicable
borders, without the
 
need for conversion,
 
with identical
 
shares traded on different
 
stock exchanges in
 
different currencies.
›
 
Refer to
 
in the
 
section of this
 
report for more information
Distributions to shareholders
The decision to pay a dividend and the amount of
 
any dividend depend on a variety of factors,
 
including our profits, cash
flow generation and capital ratios.
 
At the
 
2023
 
AGM, the
 
BoD
 
is propos
 
ing to
 
shareholders
 
for approval
 
a dividend
 
of USD 0.55
 
per share
 
for the
 
2022
financial year. Shareholders
 
whose shares
 
are held through
 
SIX SIS AG will
 
receive dividends in
 
Swiss francs, based
 
on a
public exchange rate on the day prior to the ex-dividend date. Shareholders
 
holding shares through The Depository Trust
Company in New York
 
and Computershare will be paid
 
dividends in US dollars.
 
In compliance with Swiss tax law, 50% of the dividend will be paid out of retained earnings
 
and the balance will be paid
out
 
of
 
the
 
capital
 
contribution
 
reserve.
 
Dividends
 
paid
 
out
 
of
 
capital
 
contribution
 
reserves
 
are
 
not
 
subject
 
to
 
Swiss
withholding
 
tax. The portion
 
of the dividend
 
paid out
 
of retained
 
earnings will
 
be subject
 
to a 35%
 
Swiss withholding
tax. For US federal income tax purposes, we expect that the
 
dividend will be paid out of current or accumulated earnings
and profits.
Provided that the proposed dividend
 
distribution out of retained earnings and out
 
of the capital contribution reserve will
be approved at the AGM on 5
 
April 2023,
 
the payment of USD 0.55 per share will be made on 14
 
April 2023
 
to holders
of shares
 
on the record
 
date 13 April
 
2023.
 
The shares will
 
be traded
 
ex-dividend as
 
of 12 April 202
 
3
 
and, accordingly,
the last day on which the shares
 
may be traded with entitlement to receive
 
the dividend will be 11
 
April 2023.
 
In
 
February 202
 
2,
 
the
 
BoD
 
announced
 
a new
 
two-year share
 
buyback
 
program.
 
At
 
the
 
2022
 
AGM,
 
the
 
shareholders
authorized the BoD to buy
 
back shares for cancellation purposes in
 
an aggregate value of up
 
to USD 6bn
 
until the 2024
AGM. Any
 
shares bought
 
back under
 
the program are
 
intended to
 
be canceled by
 
way of capital
 
reduction, which
 
will
be subject
 
to shareholder
 
approval at
 
one or several subsequent
 
AGMs, and
 
the acquisition
 
and holding
 
of such
 
shares
are not
 
subject to
 
the 10%
 
threshold
 
for UBS
 
Group AG’s
 
own
 
shares within
 
the meaning
 
of Art.
 
659
 
para. 1
 
of the
Swiss
 
Code
 
of
 
Obligations.
 
The
 
2021
 
share
 
repurchase
 
program
 
was
 
concluded
 
on
 
29 March
 
2022
 
with
 
a
 
total
 
of
240,335,273 sha
 
res repurchased, at
 
an overall purchase price
 
of CHF 3.81bn.
 
A total of 177,787,273
 
shares purchased
up to 18 February 2022
 
were canceled in June 2022 upon
 
approval at the 2022 AGM of UBS
 
Group AG. The remaining
62,548,000 shares, repurchased
 
between 21 February 2022 and 29
 
March 2022, are expected to be canceled by means
of a capital reduction, to be
 
proposed for shareholder approval at the 202
 
3
 
AGM.
 
Looking ahead,
 
we intend to
 
commence a new,
 
2023 share
 
repurchase program of
 
up to
 
USD 6bn over two
 
years and
expect to execute
 
more than
 
USD 5bn of share
 
repurchases under both
 
the existing, 2022 repurchase
 
program and
 
the
new program in 2023.
›
 
Refer to
 
in the
 
section of this
 
report for more information
 
about
the share repurchase programs
 
 
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
171
 
Transferability, voting
 
rights and nominee registration
We do
 
not apply
 
any restrictions
 
or limitations
 
on
 
the transferability
 
of shares.
 
Voting
 
rights may be
 
exercised without
any
 
restrictions
 
by
 
shareholders
 
entered
 
into
 
the
 
share
 
register
 
if
 
they
 
expressly
 
render
 
a
 
declaration
 
of
 
beneficial
ownership according to
 
the provisions of the A
 
oA.
We have special provisions for the registration of nominees. Nominees are entered in the share register
 
with voting rights
up
 
to a
 
total of
 
5% of
 
all issued
 
UBS
 
Group
 
AG shares
 
if they
 
agree
 
to disclose,
 
upon
 
our request,
 
beneficial owners
holding 0.3% or
 
more of
 
all issued UBS
 
Group AG shares.
 
An exception to
 
the 5% voting limit
 
rule is in
 
place for securities
clearing organizations, such as
 
The Depository Trust Company in New
 
York.
 
›
 
Refer to
 
in this section
 
for more information
Convertible bonds and options
As
 
of
 
31 December
 
2022,
 
there
 
were
 
no
 
contingent
 
capital securities
 
or
 
convertible
 
bonds
 
outstanding
 
requiring
 
the
issuance of new shares.
›
 
Refer to the
 
section of this
 
report for more information
 
about our outstanding
capital instruments
As
 
of
 
31 December
 
2022,
 
there
 
were
 
no
 
employee
 
options
 
and
 
stock
 
appreciation
 
rights
 
outstanding.
 
Option-based
compensation plans are sourced by issuing new shares out of conditional capital.
 
As of 31 December 2022, 121,705,830
unissued UBS Group AG shares in
 
conditional share capital were available
 
for the issuance of new shares for this
 
purpose.
 
 
›
 
Refer to “
” in this section
 
for more information
›
 
Refer to
 
in the
 
section
 
of this report for
more information about
 
outstanding
 
options and stock
 
appreciation rights
 
 
Shareholders’ participation rights
We are committed to
 
shareholder participation in decision-making processes. Our
 
online voting platform
 
offers registered
shareholders
 
a convenient log
 
-in and online
 
voting process. Registered
 
shareholders are sent
 
personal invitations
 
to the
general meetings.
 
Together
 
with the invitation
 
materials, they
 
receive a
 
personal one
 
-time password
 
and a
 
QR code
 
to
easily log in to
 
the online voting
 
platform, where
 
they can enter their
 
voting instructions
 
or order an admission
 
card for
the general meeting.
 
Shareholders
 
who
 
choose
 
not
 
to
 
receive
 
the
 
comprehensive
 
invitation
 
materials
 
are
 
informed
 
of
 
upcoming
 
general
meetings
 
by
 
a
 
short
 
letter
 
containing
 
a
 
personal
 
one-time password,
 
a
 
QR
 
code for
 
online
 
voting
 
and
 
a
 
reference
 
to
ubs.com/agm
,
 
where all information for the upcoming meeting
 
is available.
General
 
meetings
 
offer
 
shareholders
 
the
 
opportunity
 
to
 
raise
 
questions
 
for
 
the
 
BoD,
 
GEB
 
and
 
internal
 
and
 
external
auditors. During the pandemic,
 
when the general meetings
 
2020–2022 had
 
to be held without the physical attendance
of shareholders, we also
 
offered all shareholders
 
the opportunity to contact
 
us with
 
questions, which were
 
answered in
writing or during the general meeting.
Voting rights, restrictions and representation
We place
 
no restrictions
 
on share
 
ownership and
 
voting rights.
 
However,
 
pursuant to
 
general principles
 
formulated by
the
 
BoD,
 
nominee
 
companies,
 
which
 
normally
 
represent
 
a
 
large
 
number
 
of
 
individual
 
shareholders
 
and
 
may hold
 
an
unlimited number
 
of shares,
 
have voting rights
 
limited to a
 
maximum of 5%
 
of all issued
 
UBS Group AG
 
shares. This is
to
 
avoid
 
large
 
shareholders
 
being
 
entered
 
in
 
UBS’s
 
share
 
register
 
via nominee
 
companies
 
so
 
as
 
to
 
exercise
 
influence
without
 
directly
 
registering
 
their
 
shares
 
with
 
UBS.
 
Securities
 
clearing
 
organizations,
 
such
 
as
 
The
 
Depository
 
Trust
Company in New York,
 
are not subject to this 5% voting
 
limit.
Shareholders
 
can exercise
 
voting rights
 
conferred
 
by shares
 
only if
 
they are
 
registered in
 
our share
 
register with
 
voting
rights. To
 
register, shareholders
 
must confirm that they
 
have acquired
 
UBS Group
 
AG shares in
 
their own name
 
and for
their own account. Nominee companies are required to sign
 
an agreement confirming their willingness to disclose, upon
our request, individual beneficial owners
 
holding more than 0.3%
 
of all issued UBS Group AG shares.
All shareholders registered with voting rights are entitled to participate in general meetings. If they do not wish to
 
attend
in person, they may issue instructions to support, reject
 
or abstain for each individual item on the meeting agenda, either
by
 
giving
 
instructions
 
to
 
an
 
independent
 
proxy
 
in
 
accordance
 
with
 
article
 
14
 
of
 
the
 
AoA
 
or
 
by
 
appointing
 
another
registered shareholder of their choice to vote on their
 
behalf. Alternatively, registered
 
shareholders may issue their voting
instructions
 
to the
 
independent
 
proxy electronically
 
through
 
our online
 
voting platform.
 
Nominee
 
companies normally
submit the proxy material to the beneficial
 
owners and forward
 
the collected votes to
 
the independent proxy.
›
 
Refer to article 14
 
of the AoA, available
 
at
ubs.com/governance
, for more information
 
about the issuing
 
of instructions to
independent voting
 
right representatives
 
 
 
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
172
 
Statutory quorums
Motions are decided at
 
a general meeting
 
by an absolute majority of
 
the votes cast, excluding
 
blank and invalid ballots.
For the
 
approval of certain
 
specific issues,
 
the Swiss
 
Code of Obligations requires
 
a positive vote
 
from a two-thirds majority
of the votes
 
represented at
 
the given general
 
meeting and
 
from a
 
majority of
 
the nominal
 
value of
 
shares represented
thereat. Such issues include creating shares
 
with privileged voting rights, introducing restrictions
 
on the transferability of
registered shares,
 
authorizing contingent
 
capital or a capital band
 
and restricting or
 
excluding shareholders’
 
preemptive
rights.
 
The AoA also require a
 
two-thirds majority of votes represented for approval
 
of any change to
 
their provisions regarding
the number of BoD members, any decision to remove one-quarter or more of the BoD members and any modification to
the provision establishing
 
this qualified quorum.
Votes and
 
elections are generally conducted electronically to ascertain
 
the exact number of votes cast. Voting
 
by a show
of hands is possible if a clear majority is predictable. Shareholders representing
 
at least 3% of the votes represented may
request that
 
a vote or
 
election be carried
 
out electronically or
 
by written ballot.
 
To
 
allow shareholders
 
to clearly express
their views
 
on
 
all individual
 
topics,
 
each
 
agenda
 
item is
 
separately put
 
to
 
a
 
vote
 
and
 
BoD
 
members are
 
elected on
 
a
person-by-person basis.
Convocation of general meetings
 
of shareholders
The AGM
 
must be held
 
within six
 
months of
 
the close
 
of the financial
 
year (i.e., 31
 
December). In 2023,
 
the AGM will
take place on 5 April.
Extraordinary
 
general
 
meetings
 
(EGMs)
 
may
 
be
 
convened
 
whenever
 
the
 
BoD
 
or
 
the
 
auditors
 
consider
 
it
 
necessary.
Shareholders individually
 
or jointly
 
representing
 
at least 10%
 
of the share
 
capital may
 
at any
 
time, including
 
during an
AGM, require, by way of a
 
written statement, that an EGM be convened
 
to address a specific issue they put
 
forward.
A
 
personal
 
invitation,
 
including
 
a
 
detailed
 
agenda,
 
is
 
made
 
available to
 
every
 
registered
 
shareholder
 
at
 
least 20
 
days
ahead of
 
each scheduled
 
general meeting.
 
The items on
 
the agenda
 
are also
 
published
 
in the Swiss
 
Official Gazette of
Commerce, as well as at
ubs.com/agm.
Placing of items on the agenda
Pursuant to our AoA,
 
shareholders individually or jointly representing
 
shares with an
 
aggregate minimum nominal
 
value
of
 
CHF 62,500
 
may
 
submit
 
proposals
 
for
 
matters
 
to
 
be
 
placed
 
on
 
the
 
agenda
 
for
 
consideration
 
at
 
the
 
next
 
general
meeting of shareholders.
At
 
the
 
beginning
 
of
 
January,
 
the
 
invitation
 
to
 
submit
 
such
 
proposals
 
is
 
published
 
in
 
the
 
Swiss
 
Official
 
Gazette
 
of
Commerce and
 
at
ubs.com/agm.
 
Requests for items
 
to be placed
 
on the agenda
 
must include the
 
actual motions to be
put forward, together with a short explanation. Such requests must be submitted to the BoD at least 50 days prior
 
to the
general meeting of shareholders,
 
including a statement from the depository
 
bank confirming the number of shares
 
held
by the
 
requesting
 
shareholder(s)
 
and
 
that these
 
shares
 
are
 
blocked
 
from
 
sale
 
until
 
the end
 
of the
 
general
 
meeting of
shareholders. The BoD
 
formulates opinions on
 
the proposals, which are published
 
together with the motions.
Registrations in the share register
The
 
share
 
register
 
of
 
UBS
 
Group
 
AG,
 
where
 
around
 
185,000
 
shareholders
 
are directly
 
registered,
 
is
 
an
 
internal,
 
non-
public register subject
 
to statutory
 
confidentiality, secrecy,
 
privacy and
 
data protection
 
regulations protecting
 
registered
shareholders.
 
In general,
 
third parties
 
and
 
shareholders
 
have no
 
inspection rights
 
with regard
 
to data
 
related to
 
other
shareholders. Disclosure of such data is permitted only in specific and limited instances. In line with the Swiss Federal Act
on
 
Data
 
Protection,
 
the
 
disclosure
 
of
 
personal
 
data
 
as
 
defined
 
thereunder
 
is
 
only
 
allowed
 
with
 
the
 
consent
 
of
 
the
registered shareholder
 
and in
 
cases where
 
there is an
 
overriding private or
 
public interest
 
or if explicitly
 
provided for
 
by
Swiss law.
 
The Swiss
 
Federal Act
 
on
 
Financial Market
 
Infrastructures
 
and
 
Market Conduct
 
in Securities
 
and
 
Derivatives
Trading
 
contains
 
specific
 
reporting
 
duties,
 
such
 
as
 
in
 
relation
 
to
 
significant
 
shareholders
 
(refer
 
to
 
“Significant
shareholders”
 
in
 
this
 
section
 
for
 
more
 
information).
 
Disclosure
 
may
 
also
 
be
 
required
 
or
 
requested
 
by
 
a
 
court
 
of
 
a
competent
 
jurisdiction,
 
by
 
any
 
regulatory
 
body
 
that
 
regulates
 
the
 
conduct
 
of
 
UBS
 
Group
 
AG
 
or
 
by
 
other
 
statutory
provisions.
The general rules for entry into our Swiss
 
share register with voting rights are described in article 5 of our AoA. The same
rules
 
apply
 
to
 
our
 
US
 
transfer agent
 
that
 
operates
 
the
 
US
 
share
 
register
 
for
 
all UBS
 
Group
 
AG
 
shares
 
in
 
a
 
custodian
account in
 
the US,
 
where
 
some 2
 
55,000
 
US shareholders
 
are indirectly
 
registered
 
via nominee
 
companies.
 
In order
 
to
determine the voting rights
 
of each shareholder,
 
our share register
 
generally closes two
 
business days prior to a general
meeting. Our
 
independent
 
proxy agent
 
processes
 
voting instructions
 
from shareholders
 
as long
 
as technically
 
possible,
generally also
 
until two
 
business days
 
before
 
a general
 
meeting. Such
 
technical closure
 
of our
 
share
 
register facilitates
the determination
 
of
 
the actual
 
voting rights
 
of
 
every shareholder
 
that
 
issued
 
a voting
 
instruction. Irrespective
 
of
 
this
technical closure,
 
shares
 
that are
 
registered
 
in our
 
share
 
register
 
are
 
never
 
immobilized
 
and
 
are freely
 
tradable at
 
any
time, irrespective of any issued
 
voting instructions.
›
 
Refer to article 5 of
 
our AoA, available
 
at
ubs.com/governance
, for more information
 
about the general
 
rules for entry
 
into our
Swiss share register
 
 
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
173
 
Board of Directors
 
The BoD of UBS Group
 
AG, led by the Chairman, consists of between
 
6 and 12 members, as per our
 
AoA.
 
The BoD decides
 
on the strategy of
 
the Group, upon
 
recommendation by
 
the Group Chief
 
Executive Officer (the Group
CEO), and
 
is responsible
 
for the
 
overall direction,
 
supervision
 
and
 
control of
 
the Group
 
and its
 
management. It
 
is also
responsible for supervising compliance with applicable laws,
 
rules and regulations.
 
The BoD exercises oversight over UBS
Group AG and
 
its subsidiaries,
 
and is
 
responsible for
 
establishing a clear
 
Group governance framework
 
to provide effective
steering and supervision of the Group, taking into account the material risks to which UBS Group AG and
 
its subsidiaries
are exposed. The BoD
 
has ultimate responsibility for the success
 
of the Group and
 
for delivering sustainable
 
shareholder
value within a framework
 
of prudent and effective
 
controls. It approves all financial
 
statements and appoints and removes
all GEB members.
 
The BoD of UBS AG, led by the Chairman, decides on the strategy of UBS AG
 
upon recommendation by the President of
its Executive
 
Board
 
and exercises
 
the ultimate
 
supervision
 
of management.
 
Its ultimate
 
responsibility for
 
the success
 
of
UBS AG is exercised subject to the parameters
 
set by the Group.
Members of the Board of Directors
At the AGM on 6 April 2022, Jeremy
 
Anderson, Claudia Böckstiegel, William C. Dudley, Patrick Firmenich, Fred Hu, Mark
Hughes,
 
Nathalie Rachou,
 
Julie G. Richardson,
 
Dieter Wemmer and
 
Jeanette Wong
 
were re-elected
 
as members
 
of the
BoD. The Chairman, Axel A.
 
Weber,
 
and Reto Francioni did not
 
stand for re-election;
 
the biographies of Mr.
 
Weber and
Mr. Francioni
 
can be found on
 
pages 194 and 197 of the
 
UBS Group AG Annual
 
Report 2021, available under “Annual
reporting”
 
at
ubs.com/investors
.
 
Colm
 
Kelleher
 
and
 
Lukas
 
Gähwiler
 
were
 
elected
 
for
 
their
 
first
 
terms,
 
as
 
the
 
new
Chairman and a new Board member,
 
respectively.
 
At that same AGM, Julie G. Richardson, Dieter Wemmer and Jeanette
Wong were
 
re-elected as
 
members of
 
the Compensation
 
Committee. ADB
 
Altorfer Duss
 
& Beilstein AG
 
was re-elected
as independent
 
proxy agent.
 
Following their
 
election, the BoD
 
appointed Lukas Gähwiler
 
as Vice Chairman
 
and Jeremy
Anderson as Senior
 
Independent Director of UBS Group
 
AG.
Article 31
 
of our
 
AoA
 
limits the
 
number
 
of mandates
 
that
 
members of
 
the BoD
 
may hold
 
outside
 
UBS
 
Group to
 
four
mandates in
 
listed
 
companies and
 
five additional
 
mandates in
 
non-listed
 
companies.
 
Mandates
 
in companies
 
that are
controlled by us or that
 
control us are not subject
 
to this limitation.
 
In addition, members of
 
the BoD may hold
 
no more
than 10
 
mandates at UBS’s
 
request and
 
10 mandates in
 
associations, charitable organizations,
 
foundations,
 
trusts, and
employee welfare
 
foundations.
 
As of
 
31 December 2022,
 
no
 
member of
 
the BoD
 
reached the
 
thresholds described
 
in
article 31 of our AoA.
 
The following biographies provide information about
 
the BoD members who were in office after the 2022 AGM and the
Group Company Secretary. In addition to
 
information on mandates, the
 
biographies include information on memberships
or other activities or functions, as required
 
by the SIX Swiss Exchange Corporate Governance
 
Directive.
No member of
 
the BoD currently carries
 
out or
 
has carried out
 
over the past three
 
years operational management
 
tasks
within the Group; therefore,
 
all members of the Board are non
 
-executive members.
All members of
 
UBS Group
 
AG’s BoD
 
are also members of
 
UBS AG’s
 
BoD, and
 
committee membership
 
is the same
 
for
both entities. The Senior Independent
 
Director function relates only to UBS Group
 
AG.
 
In 2022, UBS AG’s BoD had three permanent committees: the
 
Audit Committee, the Compensation Committee and
 
the
Risk Committee. In addition
 
to these, UBS Group
 
AG also had the Corporate
 
Culture and Responsibility Committee
 
and
the Governance and Nominating
 
Committee as permanent committees.
 
 
 
dev_UBS_AR_2022p32i0.jpg
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
174
 
 
 
Colm Kelleher
 
Chairman of the Board
 
of Directors and
 
non-executive member
 
of
the Board since 2022
–
 
Chairperson of the Corporate
 
Culture and Responsibility
 
Committee
since 2022
–
 
Chairperson of the
 
Governance and
 
Nominating Committee
 
since
2022
 
Nationality:
 
Irish |
Year of birth:
 
1957
 
Colm Kelleher was elected Chairman of UBS in April 2022. He served as
President
 
of
 
Morgan
 
Stanley
 
until
 
retiring
 
from
 
that
 
firm
 
in
 
2019,
overseeing
 
both
 
the
 
Institutional
 
Securities
 
Business
 
and
 
Wealth
Management. Before
 
that, he
 
was
 
Co-President and
 
then
 
President of
Morgan Stanley Institutional Securities. During the global financial crisis,
he held the position of CFO and Co-Head
 
Corporate Strategy
 
from 2007
to 2009. Mr.
 
Kelleher is a
 
well-respected leader in the
 
financial services
sector.
 
His
 
30-year
 
career
 
with
 
Morgan
 
Stanley
 
attests
 
to
 
his
 
solid
leadership experience in banking and
 
excellent relationships around the
world. He has
 
a deep understanding
 
of the global
 
banking landscape
 
and
broad banking
 
experience across
 
all
 
the geographic
 
regions and
 
major
business areas in which
 
UBS operates.
 
Professional experience
2016 – 2019
President, Morgan
 
Stanley, responsible for Institutional
Securities and
 
Wealth Management
2011 – 2016
CEO of Morgan
 
Stanley International,
 
Morgan Stanley
2013 – 2015
President, Institutional
 
Securities, Morgan
 
Stanley
2010 – 2012
Co-President, Institutional
 
Securities, Morgan
 
Stanley
2007 – 2009
CFO and Co-Head Corporate
 
Strategy, Morgan Stanley
2006 – 2007
Head Global Capital
 
Markets, Morgan
 
Stanley
2004 – 2006
Co-Head Fixed Income,
 
Europe, Morgan Stanley
1989 – 2004
Various roles, Morgan Stanley
Education
–
 
Master’s degree, modern
 
history, University of Oxford
–
 
Fellow of the Institute
 
of Chartered Accountants
 
in England and
Wales
 
Listed company
 
boards
–
 
Member of the Board
 
of Norfolk Southern
 
Corporation (chair
 
of the
risk and finance committee)
 
Other activities and
 
functions
–
 
Member of the Board
 
of Directors of the
 
Bretton Woods Committee
–
 
Member of the Board
 
of the Swiss Finance
 
Council
–
 
Member of the Board
 
of Americans for
 
Oxford
–
 
Member of the Oxford
 
Chancellor’s Court
 
of Benefactors
–
 
Member of the Advisory
 
Council of the British
 
Museum
–
 
Member of the International
 
Advisory Council
 
of the China
 
Securities
Regulatory Commission
–
 
Member of the European
 
Financial Services
 
Round Table
–
 
Member of the European
 
Banking Group
–
 
Member of the International
 
Monetary Conference
 
Key competencies
–
 
Banking (wealth
 
management,
 
asset management,
 
personal and
corporate banking)
 
and insurance
–
 
Investment banking,
 
capital markets
–
 
Finance, audit, accounting
–
 
Risk management,
 
compliance and
 
legal
 
Leadership experience
–
 
CEO, Chairman
 
 
 
dev_UBS_AR_2022p203i1.jpgdev_UBS_AR_2022p203i0.jpg
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
175
 
 
 
Lukas Gähwiler
 
Vice Chairman and
 
non-executive member
 
of the Board since
 
2022
 
Nationality:
 
Swiss |
Year of birth:
 
1965
 
Lukas Gähwiler brings
 
a wealth
 
of industry experience and
 
an in-depth
understanding of UBS to the Board. He served
 
as Chairman of the Board
of UBS
 
Switzerland AG for
 
five years
 
and was
 
a member
 
of the
 
Group
Executive
 
Board
 
of
 
UBS
 
and
 
President
 
UBS
 
Switzerland
 
from
 
2010
 
to
2016, responsible for the private clients, wealth management,
 
corporate
and
 
institutional
 
clients,
 
investment
 
banking,
 
and
 
asset
 
management
businesses
 
in
 
UBS’s
 
home
 
market.
 
Before
 
joining
 
UBS,
 
Mr.
 
Gähwiler
worked for Credit Suisse for
 
over twenty years, his last
 
role being Chief
Credit Officer,
 
Global Private and
 
Corporate Banking. In addition to
 
his
leadership
 
and
 
industry
 
experience
 
across
 
all
 
parts
 
of
 
the
 
banking
business, his strong connections
 
and network, particularly
 
in Switzerland,
are instrumental for
 
the firm.
 
Professional experience
2017 – 2022
Chairman of the Board
 
of Directors of UBS Switzerland
 
AG
2010 – 2016
Member of the Group
 
Executive Board, UBS
 
and President
UBS Switzerland
2003 – 2010
Chief Credit Officer, Global Private
 
and Corporate
Banking, Credit Suisse
2002 – 2003
Head Credit Risk Management,
 
Corporate Clients
Switzerland, Credit Suisse
1998 – 2001
Chief of Staff to CEO,
 
Private and Corporate
 
Clients,
Credit Suisse
1990 – 1998
Various senior front office roles in Corporate
 
Clients in
Switzerland and North
 
America, Credit
 
Suisse
1981 – 1986
Client Advisor Retail
 
and Wealth Management,
 
St.Galler
Kantonalbank
 
Education
–
 
Advanced Management
 
Program, Harvard Business
 
School
–
 
MBA program, International
 
Bankers School,
 
New York
–
 
Bachelor’s degree, business
 
administration, University
 
of Applied
Sciences, St. Gallen
 
Non-listed company
 
boards
–
 
Vice Chairman of the
 
Board of Directors of
 
Pilatus Aircraft Ltd
–
 
Member of the Board
 
of Directors of Ringier
 
AG
 
Other activities and
 
functions
–
 
Vice Chairman of the
 
Swiss Bankers Association
–
 
Chairman of the Employers
 
Association of Banks
 
in Switzerland
–
 
Member of the Board
 
of Directors of the
 
Swiss Employers Association
–
 
Member of the Board
 
of economiesuisse
–
 
Chairman of the Foundation
 
Board of the UBS Pension
 
Fund
–
 
Member of the Board
 
of the Swiss Finance
 
Council
–
 
Member of the Board
 
of Trustees of Avenir Suisse
 
Key competencies
–
 
Banking (wealth
 
management,
 
asset management,
 
personal and
corporate banking)
 
and insurance
–
 
Finance, audit, accounting
 
–
 
Risk management,
 
compliance and
 
legal
–
 
Human resources management,
 
including compensation
 
Leadership experience
–
 
CEO, Chairman
 
 
Jeremy Anderson
 
Senior Independent
 
Director since 2020
 
and non-executive
member of the Board
 
since 2018
–
 
Member of the Governance
 
and Nominating
 
Committee since
 
2019
–
 
Chairperson of the Audit
 
Committee since
 
2018
 
Nationality:
 
British |
Year of birth:
 
1958
 
Jeremy Anderson is a financial
 
services veteran, with
 
more than 30 years’
experience working
 
in the
 
banking and
 
insurance sector in
 
an advisory
capacity, covering a broad
 
range of topics, including strategy, audit and
risk management,
 
technology-enabled
 
transformation,
 
mergers,
 
and bank
restructuring. Before
 
retiring from KPMG
 
in 2017,
 
he was its
 
Chairman of
Global Financial
 
Services. Mr. Anderson
 
is also
 
an IT expert,
 
having started
out
 
as
 
a
 
software
 
developer in
 
the
 
early
 
1980s, before
 
working in
 
IT
consulting and
 
developing a
 
broad knowledge
 
of systems integration
 
and
IT outsourcing
 
services,
 
as well
 
as software
 
development.
 
He cemented
 
his
reputation as
 
a tech
 
specialist
 
by becoming
 
a founding
 
sponsor
 
of KPMG’s
Global Fintech Network
 
in 2014.
 
Professional experience
2010 – 2017
Chairman of Global
 
Financial Services,
 
KPMG International
2008 – 2011
Head of Clients and Markets
 
KPMG Europe,
 
KPMG
International
2006 – 2011
Head of Financial
 
Services KPMG
 
Europe, KPMG
International
2004 – 2006
Head of Financial
 
Services KPMG UK,
 
KPMG International
2002 – 2004
Member of the Group
 
Management
 
Board and Head of
UK operations, Atos
 
Origin SA
1985 – 2002
KPMG consulting UK,
 
KPMG
1980 – 1985
Software developer, Triad Computing Systems
 
Education
–
 
Bachelor’s degree,
 
economics, University
 
College London
 
Listed company
 
boards
–
 
Member of the Board
 
of Prudential plc
 
Other activities and
 
functions
–
 
Trustee of the UK’s Productivity Leadership
 
Group
–
 
Trustee of The Kingham Hill Trust
–
 
Trustee of St. Helen’s Bishopsgate
 
Key competencies
–
 
Banking (wealth
 
management,
 
asset management,
 
personal and
corporate banking)
 
and insurance
–
 
Finance, audit, accounting
–
 
Risk management,
 
compliance and
 
legal
–
 
Technology, cybersecurity
 
Leadership experience
–
 
Executive board leadership
 
 
 
dev_UBS_AR_2022p204i1.jpgdev_UBS_AR_2022p204i0.jpg
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
176
 
 
 
Claudia Böckstiegel
 
Non-executive member
 
of the Board since
 
2021
 
–
 
Member of the Corporate
 
Culture and Responsibility
 
Committee
 
since 2022
 
Nationality:
 
Swiss and German
 
|
Year of birth:
 
1964
 
Claudia
 
Böckstiegel
 
has
 
been
 
General
 
Counsel and
 
a
 
member
 
of
 
the
Enlarged
 
Executive
 
Committee of
 
Roche
 
Holding
 
AG
 
since
 
2020.
 
She
started
 
her
 
professional
 
career
 
as
 
an
 
attorney
 
in
 
private
 
practice
 
in
Germany,
 
then
 
joined
 
the
 
Swiss
 
pharmaceutical
 
company
 
Roche
 
in
Germany
 
in
 
2001
 
and
 
subsequently held
 
various
 
global
 
management
positions in
 
the legal
 
sector in
 
Switzerland.
 
Ms. Böckstiegel
 
brings a
 
wealth
of know-how in
 
a highly
 
regulated sector.
 
Her responsibilities at
 
Roche
Holding AG
 
include a
 
broad range
 
of additional topics,
 
such as
 
safety,
health and
 
environment, patents,
 
audit and
 
risk advisory, compliance,
 
and
sustainability.
 
Professional experience
2020 – date
General Counsel and
 
member of
 
the Enlarged Executive
Committee, Roche
 
Holding AG
2016 – 2020
Head of Legal Diagnostics,
 
F. Hoffmann-La Roche Ltd.,
Basel, Switzerland,
 
Roche Group
2010 – 2016
Head Legal Business,
 
Roche Diagnostics
 
International Ltd,
Rotkreuz, Switzerland,
 
Roche Group
2005 – 2010
Head Legal Business,
 
Roche Diagnostics
 
GmbH,
Mannheim, Germany, Roche
 
Group
2001 – 2005
Legal Counsel, Roche
 
Diagnostics GmbH,
 
Mannheim, Germany, Roche
 
Group
1995 – 2001
Attorney (Partner),
 
Philipp & Littig, Mannheim,
 
Germany
1992 – 1995
Attorney (Associate),
 
Dr. Hermann Büttner,
 
Karlsruhe, Germany
 
Education
–
 
Master’s degree, law, Universities
 
of Mannheim
 
and Heidelberg
–
 
Master of Laws (LL.M.),
 
Georgetown University, Washington,
 
DC
 
Other activities and
 
functions
–
 
None
 
Key competencies
–
 
Finance, audit, accounting
–
 
Risk management,
 
compliance and
 
legal
–
 
Regulatory authority, central
 
bank
–
 
ESG (environmental,
 
social and governance)
 
Leadership experience
–
 
Executive board leadership
 
 
William C. Dudley
 
Non-executive member
 
of the Board since
 
2019
–
 
Member of the Corporate
 
Culture and Responsibility
 
Committee
 
since 2019
–
 
Member of the Risk
 
Committee since
 
2019
 
Nationality:
 
American (US) |
Year of birth:
 
1953
 
William C.
 
Dudley served
 
as the President
 
and CEO of
 
the Federal
 
Reserve
Bank of New
 
York for nine
 
years. He
 
demonstrated
 
exceptional leadership
in monetary policy and as
 
a top regulator,
 
including during the years of
the global financial crisis. During that
 
period, his additional area of focus
included
 
cultural
 
behavior
 
and
 
social
 
and
 
governance
 
topics
 
in
 
the
financial
 
services industry.
 
He also
 
served as
 
the
 
Vice Chairman
 
and a
permanent member of the Federal
 
Open Market Committee. Mr. Dudley
brings a
 
wealth
 
of experience
 
in banking
 
and research
 
thanks to
 
his former
management positions at Goldman Sachs Group and
 
Morgan Guaranty
Trust.
 
Professional experience
2009 – 2018
President and CEO,
 
Federal Reserve Bank
 
of New York
2007 – 2009
Executive Vice President
 
and Head Markets
 
Group,
 
Federal Reserve Bank
 
of New York
2006
Senior advisor (part-time),
 
Goldman Sachs
 
Group
2002 – 2005
Partner and Director
 
US Economic Research
 
Group,
Goldman Sachs Group
1996 – 2002
Managing Director
 
and Director US Economic
 
Research
Group, Goldman Sachs
 
Group
1983 – 1996
Economist at Goldman
 
Sachs Group, Morgan
 
Guaranty
Trust Company, and Board of Governors of
 
the Federal
Reserve System
 
Education
–
 
Bachelor of Arts,
 
New College of Florida
–
 
Doctorate, economics,
 
University of California,
 
Berkeley
 
Non-listed company
 
boards
–
 
Member of the Board
 
of Treliant LLC
 
Other activities and
 
functions
–
 
Senior Advisor to
 
the Griswold Center
 
for Economic
 
Policy Studies,
Princeton University
–
 
Member of the Group
 
of Thirty
–
 
Member of the Council
 
on Foreign Relations
–
 
Chairman of the Bretton
 
Woods Committee Board
 
of Directors
–
 
Member of the Board
 
of the Council for
 
Economic Education
–
 
Opinion writer and consultant
 
to Bloomberg Economics,
 
Bloomberg
 
Key competencies
–
 
Investment banking,
 
capital markets
–
 
Risk management,
 
compliance and
 
legal
–
 
Regulatory authority, central
 
bank
–
 
ESG (environmental,
 
social and governance)
 
Leadership experience
–
 
CEO, Chairman
 
 
 
dev_UBS_AR_2022p205i1.jpgdev_UBS_AR_2022p205i0.jpg
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
177
 
 
 
Patrick Firmenich
 
Non-executive member
 
of the Board since
 
2021
–
 
Member of the Audit
 
Committee since
 
2021
–
 
Member of the Corporate
 
Culture and Responsibility
 
Committee
 
since 2021
 
Nationality:
 
Swiss |
Year of birth:
 
1962
 
Patrick
 
Firmenich
 
has
 
been
 
Chairman
 
of
 
the
 
Board
 
of
 
Firmenich
International
 
SA,
 
the
 
world’s
 
largest
 
privately
 
owned
 
fragrances
 
and
flavorings company,
 
since 2016,
 
after leading
 
the company
 
as CEO
 
during
a
 
12-year
 
tenure.
 
He
 
demonstrated
 
his
 
entrepreneurial
 
leadership
 
by
significantly
 
advancing
 
the
 
Firmenich
 
group’s
 
global
 
position
 
through
organic
 
and
 
in-organic
 
growth
 
and
 
succeeded
 
in
 
transforming
 
the
organization
 
to
 
continuously respond
 
to
 
client
 
needs
 
and
 
the
 
market
environment. He
 
developed an
 
ambitious sustainability strategy for
 
the
group
 
to
 
lead
 
the
 
industry
 
in
 
health,
 
safety
 
and
 
environmental
performance. Before
 
joining Firmenich, he
 
held several
 
positions in
 
the
legal
 
and
 
banking
 
sectors,
 
including
 
working
 
as
 
an
 
international
investment banking
 
analyst.
 
Professional experience
2014 – 2016
Vice Chairman of the
 
Board, Firmenich
 
International SA
2002 – 2014
CEO, Firmenich
 
SA, Geneva
2001 – 2002
Corporate Vice President,
 
Special Operations,
 
Firmenich SA, Geneva
1997 – 2001
Vice President Fine
 
Fragrance worldwide
 
and Président
Directeur Général,
 
Firmenich & Cie,
 
Paris, and
 
Firmenich Inc, New
 
York
1993
–
1997
Vice President Fine
 
Fragrance North
 
America,
 
Firmenich Inc, New
 
York
1990 – 1993
Account Manager, Firmenich
 
& Cie, Paris
1988 – 1989
Analyst, International
 
Investment Banking,
 
Credit Suisse
First Boston
1988
Production administrator, Firmenich
 
SA de CV, Mexico
1984 – 1986
Attorney, Business Law, Patry, Junet, Simon &
 
Le Fort,
Geneva
 
Education
–
 
Master’s degree, law, University
 
of Geneva, admitted
 
to the bar
 
in Geneva
–
 
MBA, INSEAD Fontainebleau
 
Non-listed company
 
boards
–
 
Chairman of Firmenich
 
International SA
 
–
 
Member of the Board
 
of Jacobs Holding
 
AG
 
Other activities and
 
functions
–
 
Member of the Board
 
of INSEAD and
 
INSEAD World Foundation
–
 
Member of the Advisory
 
Council of the Swiss
 
Board Institute
 
Key competencies
–
 
Finance, audit, accounting
–
 
Risk management,
 
compliance and
 
legal
–
 
Human resources management,
 
including compensation
–
 
ESG (environmental,
 
social and governance)
 
Leadership experience
–
 
CEO, Chairman
 
 
Fred Hu
 
Non-executive member
 
of the Board since
 
2018
–
 
Member of the Governance
 
and Nominating
 
Committee since
 
2020
 
Nationality:
 
Chinese |
Year of birth:
 
1963
 
Fred Hu has been the Chairman
 
and CEO of Primavera
 
Capital Group, an
Asia-based private investment
 
firm focused on emerging technology
 
and
innovative industries, since
 
founding it in
 
2010. Prior
 
to that, he
 
was a
partner and Chairman
 
for Greater China
 
at Goldman Sachs.
 
Mr. Hu has a
profound
 
understanding
 
of
 
China’s
 
economy
 
and
 
rapidly
 
developing
financial system, and a vast amount of experience
 
advising and investing
in leading firms
 
in the
 
tech, consumer and health-care
 
sectors in China
and
 
globally.
 
He
 
has
 
worked
 
at
 
the
 
IMF
 
and
 
advised
 
the
 
Chinese
government on economic
 
policy.
 
Professional experience
2010
–
date
Founder, Chairman and CEO,
 
Primavera Capital Group,
 
China
2008 – 2010
Partner and Chairman
 
of Greater China,
 
Goldman Sachs
2004 – 2008
Partner and Co-Head,
 
Investment Banking,
 
China,
Goldman Sachs
2003 – 2004
Managing Director
 
and Co-Head, Investment
 
Banking,
China, Goldman Sachs
2000 – 2003
Managing Director
 
and Chief Economist
 
and Strategist,
Greater China, Goldman
 
Sachs
1996 – date
Co-Director, the National Center
 
for Economic Research
1996 – date
Adjunct Professor, Economics,
 
Tsinghua University
 
Education
–
 
Master’s degree, engineering
 
science, Tsinghua University
–
 
Master’s degree and doctorate,
 
economics, Harvard
 
University
 
Listed company
 
boards
–
 
Non-executive Chairman
 
of the Board of Yum China
 
Holdings (chair
of the nomination
 
and governance
 
committee)
–
 
Member of the Board
 
of ICBC
 
Non-listed company
 
boards
–
 
Chairman of Primavera
 
Capital Ltd
 
Other activities and
 
functions
–
 
Trustee of the China Medical
 
Board
–
 
Governor of the
 
Chinese International
 
School in Hong Kong
 
SAR
–
 
Co-Chairman of the
 
Nature Conservancy
 
Asia Pacific Council
–
 
Member of the Board
 
of Trustees, the Institute
 
for Advanced Study
–
 
Director and member
 
of the Executive Committee
 
of China Venture
Capital and Private
 
Equity Association
 
Ltd.
 
Key competencies
–
 
Investment banking,
 
capital markets
–
 
Risk management,
 
compliance and
 
legal
–
 
Technology, cybersecurity
–
 
Regulatory authority, central
 
bank
 
Leadership experience
–
 
CEO, Chairman
 
 
 
 
dev_UBS_AR_2022p206i1.jpgdev_UBS_AR_2022p206i0.jpg
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
178
 
 
 
Mark Hughes
 
Non-executive member
 
of the Board since
 
2020
–
 
Chairperson of the
 
Risk Committee since
 
2020
–
 
Member of the Corporate
 
Culture and Responsibility
 
Committee
 
since 2020
 
Nationality:
 
Canadian, British
 
and American (US)
 
|
Year of birth:
 
1958
 
Mark Hughes is a highly experienced
 
professional in the financial
 
services
sector, having spent more
 
than 35 years
 
working for
 
RBC (the Royal Bank
of Canada)
 
in Canada, the
 
US and the
 
UK. In his
 
final role as Group
 
Chief
Risk Officer of RBC, he was responsible for the strategic management
 
of
risk on an enterprise-wide
 
basis and oversaw
 
all risk functions.
 
During his
career, Mr. Hughes has
 
also held
 
senior management
 
positions in
 
the front
office and
 
key operational
 
roles. Currently, he
 
is a
 
visiting lecturer
 
at Leeds
University and is chair of the Global Risk Institute, bringing
 
an enormous
amount of experience
 
as a risk specialist
 
to the Board of
 
Directors of UBS.
 
Professional experience
2014 – 2018
Group Chief Risk Officer
 
and member Group
 
Executive
Committee, RBC
2013
Deputy Chief Risk
 
Officer, RBC
2008 – 2013
COO, RBC Capital
 
Markets, RBC
2001 – 2008
Head of Global Credit,
 
RBC
1999 – 2001
Head of Debt Products,
 
RBC
1998 – 1999
Senior Vice President
 
and General Manager
 
USA, RBC
1997 – 1998
Senior Vice President Financial
 
Services, RBC
1982 – 1996
Various positions, RBC
 
Education
–
 
Bachelor of Laws (LL.B.),
 
University of Leeds
–
 
MBA, finance, University
 
of Manchester
 
Other activities and
 
functions
–
 
Chair of the Board of
 
Directors of the
 
Global Risk Institute
–
 
Visiting lecturer at the
 
University of Leeds
–
 
Senior advisor to
 
McKinsey & Company
 
Key competencies
–
 
Banking (wealth
 
management,
 
asset management,
 
personal and corporate
 
banking)
 
and insurance
–
 
Investment banking,
 
capital markets
–
 
Risk management,
 
compliance and
 
legal
–
 
Technology, cybersecurity
 
Leadership experience
–
 
Executive board leadership
 
 
Nathalie Rachou
 
Non-executive member
 
of the Board since
 
2020
–
 
Member of the Governance
 
and Nominating
 
Committee since
 
2022
–
 
Member of the Risk
 
Committee since
 
2020
 
Nationality:
 
French |
Year of birth:
 
1957
 
Nathalie Rachou is a seasoned expert in financial
 
services, having held a
number of banking positions, such
 
as CEO of Prime Brokerage and head
of a business
 
line in Capital
 
Markets at
 
Crédit Agricole
 
Indosuez in
 
the UK
and in France. In 1999, she founded a London-based
 
asset management
company that merged with a
 
French asset manager and continued as a
senior
 
adviser
 
until
 
2020.
 
Alongside
 
these
 
roles,
 
Ms.
 
Rachou
 
brings
extensive experience
 
from serving
 
as a board
 
member of
 
Société
 
Générale
for 12 years and
 
is currently
 
on the boards of
 
two other listed
 
companies,
including the pan-European
 
bourse, Euronext
 
N.V.
 
Professional experience
2015
–
2020
Senior Advisor, Clartan Associés
 
(formerly Rouvier Associés),
 
France
1999
–
2014
Founding partner
 
and CEO,
Topiary Finance Ltd., UK
1996
–
1999
Head of Global Foreign
 
Exchange and Currency
 
Options,
Crédit Agricole Indosuez
 
(formerly Banque
 
Indosuez), UK
1991 – 1996
Corporate Secretary
 
and Secretary to the
 
Board of Directors, Crédit Agricole
 
Indosuez, France
1986 – 1991
COO, Carr Futures, France
 
(owned by Banque
 
Indosuez),
Crédit Agricole Indosuez,
 
France
1983 – 1986
Head of Asset and Liability
 
Management & Market
 
Risks,
Crédit Agricole Indosuez,
 
France
1978 – 1982
Position in Forex Exchange
 
Sales, Crédit Agricole
 
Indosuez,
France and UK
 
Education
–
 
Master’s degree, management,
 
HEC Paris
–
 
MBA, INSEAD Fontainebleau
 
Listed company
 
boards
–
 
Member of the Board
 
of Euronext N.V.
 
(chair of the remuneration
 
committee)
–
 
Member of the Board
 
of Veolia Environnement
 
SA
 
(chair of the audit committee)
 
Non-listed company
 
boards
 
–
 
Member of the Board
 
of the African
 
Financial Institutions
 
Investment
Platform
 
 
Key competencies
–
 
Banking (wealth
 
management,
 
asset management,
 
personal and corporate
 
banking)
 
and insurance
–
 
Investment banking,
 
capital markets
–
 
Finance, audit, accounting
–
 
Risk management,
 
compliance and
 
legal
 
 
 
dev_UBS_AR_2022p207i1.jpgdev_UBS_AR_2022p207i0.jpg
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
179
 
 
 
Julie G. Richardson
 
Non-executive member
 
of the Board since
 
2017
–
 
Chairperson of the Compensation
 
Committee since
 
2019
–
 
Member of the Risk
 
Committee since
 
2017
 
Nationality:
 
American (US) |
Year of birth:
 
1963
 
Julie G. Richardson spent more than
 
25 years on Wall
 
Street as a senior
investment banker with a focus on telecom, media and technology. She
began her
 
career
 
at Merrill
 
Lynch,
 
before
 
moving to
 
JPMorgan Chase,
where
 
she
 
headed
 
the
 
telecommunications,
 
media
 
and
 
technology
investment banking group. Later, she moved into private equity, as head
of
 
the New
 
York
 
office
 
of
 
Providence Equity
 
Partners. Throughout
 
her
career,
 
Ms. Richardson has
 
spent significant
 
time with
 
both incumbent
and new
 
technology companies, including being
 
a board
 
member of a
digital knowledge
 
management company
 
and a leading
 
cloud monitoring
firm.
 
Professional experience
2012 – 2014
Senior advisor, Providence Equity
 
Partners, New York
2003
–
2012
Partner and Head of
 
the New York office,
 
Providence Equity Partners,
 
New York
1998
–
2003
Vice Chairman of the
 
Investment Banking
 
division of
JPMorgan Chase & Co.
 
and Head of
 
its Global
Telecommunications, Media and
 
Technology group
1986 – 1998
Various positions
 
at Merrill Lynch, final
 
position:
 
Managing Director Media
 
and Communications
Investment Banking
 
Education
–
 
Bachelor’s degree, business
 
administration, University
 
of
 
Wisconsin–Madison
 
Listed company
 
boards
–
 
Member of the Board
 
of Yext (chair of the audit committee)
–
 
Member of the Board
 
of Datadog (chair
 
of the audit committee)
 
Non-listed company
 
boards
 
–
 
Member of the Board
 
of Fivetran
–
 
Member of the Board
 
of Coalition,
 
Inc.
 
 
Key competencies
–
 
Investment banking,
 
capital markets
–
 
Risk management, compliance
 
and legal
–
 
Human resources management,
 
including compensation
–
 
Technology, cybersecurity
 
 
Dieter Wemmer
 
Non-executive member
 
of the Board since
 
2016
–
 
Member of the Audit
 
Committee since
 
2019
–
 
Member of the Compensation
 
Committee since
 
2018
 
Nationality:
 
Swiss
 
and German
 
|
Year of
 
birth:
 
1957
 
Dieter
 
Wemmer
 
began
 
his
 
highly
 
successful
 
career
 
in
 
the
 
insurance
 
sector
 
with
the
 
Zurich
 
Group
 
in
 
1986,
 
retiring
 
in
 
2017
 
as CFO
 
of Allianz.
 
As
 
a long-serving
CFO
 
of two
 
large
 
multi-national
 
companies
 
in the
 
financial
 
services
 
sector,
 
he
has deep experience across a
 
broad range of
 
highly relevant topics. Mr.
Wemmer brings
 
to the BoD
 
knowledge
 
covering accounting,
 
finance and
audit,
 
including
 
capital
 
markets,
 
investments
 
and
 
risk
 
management,
 
as well
 
as
asset
 
management.
 
His know-how
 
includes
 
hands-on
 
experience
 
in mergers
and acquisitions,
 
and management
 
of large organizations
 
with a focus on
strategy.
 
Professional experience
2013 –
 
2017
CFO, Allianz SE
2012 –
 
2013
Member of the Board
 
of Management,
 
responsible for the
insurance business
 
in France, Benelux,
 
Italy, Greece and
Turkey and for the “Global Property
 
& Casualty” Center
 
of
Competence, Allianz
 
SE
2007 –
 
2011
CFO, Zurich Insurance
 
Group
2010 –
 
2011
Regional Chairman
 
of Europe, Zurich Insurance
 
Group
2004 –
 
2007
CEO of the Europe
 
General Insurance business
 
and
member of Zurich’s
 
Group Executive Committee,
 
Zurich
Insurance Group
2003 –
 
2004
COO of Europe General
 
Insurance, Zurich Insurance
 
Group
1999 –
 
2003
Head of Mergers
 
and Acquisitions,
 
Zurich Insurance
 
Group
1997 –
 
1999
Head of Financial
 
Controlling, Zurich Insurance
 
Group
 
Education
–
 
Master’s degree and doctorate,
 
mathematics,
 
University of Cologne
 
Listed company
 
boards
–
 
Member of the Board
 
of Ørsted A/S
 
(chair of the audit
 
and risk committee)
 
Non-listed company
 
boards
–
 
Chairman of Marco Capital
 
Holdings Limited,
 
Malta and subsidiaries
 
Other activities and
 
functions
–
 
Member of the Berlin
 
Center of Corporate
 
Governance
 
Key competencies
–
 
Banking (wealth
 
management,
 
asset management,
 
personal and corporate
 
banking)
 
and insurance
–
 
Investment banking,
 
capital markets
–
 
Finance, audit, accounting
–
 
Risk management,
 
compliance and
 
legal
 
Leadership experience
–
 
Executive board leadership
 
 
 
dev_UBS_AR_2022p208i1.jpgdev_UBS_AR_2022p208i0.jpg
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
180
 
 
 
Jeanette Wong
 
Non-executive member
 
of the Board since
 
2019
–
 
Member of the Compensation
 
Committee since
 
2020
–
 
Member of the Audit
 
Committee since
 
2019
 
Nationality:
 
Singaporean |
Year of birth:
 
1960
 
Jeanette Wong
 
has
 
spent more
 
than 30
 
years working
 
in the
 
financial
sector in Singapore. She
 
retired from DBS Group in 2019,
 
where she was
Group Executive responsible
 
for the institutional
 
banking business,
 
a post
that
 
encompassed
 
corporate
 
banking,
 
global
 
transaction
 
services,
strategic advisory,
 
and mergers
 
and acquisitions. Prior
 
to that, she
 
held
the position of CFO
 
at DBS Bank. During a 16-year
 
career with JPMorgan
Chase, Ms.
 
Wong helped
 
build
 
up its
 
Asia
 
and emerging
 
markets
 
business.
She brings extensive experience from serving as a
 
member of the board
of directors of two high-value
 
listed companies.
 
Professional experience
2008 – 2019
Group Executive institutional
 
banking business,
 
DBS Bank, Singapore
2003 – 2008
CFO, DBS Bank, Singapore
2003
Chief Administration
 
Officer, DBS Bank, Singapore
1997 – 2002
Country Manager
 
Singapore, JPMorgan
 
Chase, Singapore
1986 – 1997
Various roles in Global Markets
 
and Emerging Markets
Sales and Trading business, Asia,
 
JPMorgan Chase,
Singapore
1984 – 1986
Manager, Private Banking, Citibank,
 
Singapore
1982 – 1984
Manager, Corporate Banking,
 
Paribas, Singapore
 
Education
–
 
Bachelor’s degree, business
 
administration, the
 
National University
 
of Singapore
–
 
MBA, University of
 
Chicago
 
Listed company
 
boards
–
 
Member of the Board
 
of Prudential plc
–
 
Member of the Board
 
of Singapore Airlines
 
Limited
 
Non-listed company
 
boards
–
 
Member of the Board
 
Risk Committee
 
of GIC Pte Ltd
–
 
Member of the Board
 
of Jurong Town Corporation
–
 
Member of the Board
 
of PSA International
 
Other activities and
 
functions
–
 
Chairman of the CareShield
 
Life Council
–
 
Member of the Securities
 
Industry Council
–
 
Member of the Board
 
of Trustees of the National
 
University
 
of Singapore
 
Key competencies
–
 
Banking (wealth
 
management,
 
asset management,
 
personal and corporate
 
banking) and insurance
–
 
Investment banking,
 
capital markets
–
 
Finance, audit, accounting
–
 
ESG (environmental,
 
social and governance)
 
Leadership experience
–
 
Executive board leadership
 
 
Markus Baumann
 
Group Company Secretary
 
since 2017
 
Nationality:
 
Swiss |
Year of birth:
1963
 
Markus Baumann joined UBS
 
in 1979 as
 
a banking apprentice
and has now been with the firm for more than 40 years.
 
Earlier
in his
 
career,
 
he worked in
 
Japan for
 
four years, as
 
Corporate
Planning Officer and
 
assistant to the
 
CEO. He then
 
worked as
COO EMEA
 
for
 
UBS Asset
 
Management and has
 
since held
 
a
broad range of
 
leadership roles
 
across the Group in
 
Switzerland,
the US and Japan, including COO of Group Internal Audit from
2006 to 2015.
 
Professional experience
2017 – date
Group Company Secretary
 
of UBS Group AG
 
and Company Secretary
 
of UBS AG
2015 – 2016
Chief of Staff to the Chairman
 
of the Board of
Directors, UBS
2006 – 2015
COO, Group Internal
 
Audit, UBS
2005 – 2006
Head Global Reporting
 
& Controlling,
 
Global Asset Management,
 
UBS
2002 – 2004
Head Management
 
Support CEO EMEA,
 
Global Asset Management,
 
UBS
1998 – 2002
COO EMEA, Global
 
Asset Management,
 
UBS
1979 – 1997
Various positions, Union
 
Bank of Switzerland
 
Education
–
 
Swiss Federal Diploma
 
as a Business Analyst
–
 
MBA, INSEAD Fontainebleau
 
 
 
 
Annual Report 2022 |
Corporate
 
governan
ce
 
and
 
compensation
 
|
 
Corporate
 
governance
 
181
 
Elections and terms of office
Shareholders
 
annually
 
elect
 
each
 
member
 
of
 
the
 
BoD
 
individually,
 
as
 
well
 
as
 
the
 
Chairman
 
and
 
the
 
members
 
of
 
the
Compensation Committee, based on
 
proposals from the BoD.
 
As set
 
out in
 
the Organization
 
Regulations,
 
BoD members
 
are normally
 
expected
 
to serve
 
for at
 
least three
 
years. BoD
members are limited to
 
serving for a maximum of 10
 
consecutive terms of office;
 
in exceptional
 
circumstances, the BoD
may extend that limit.
 
›
 
Refer to
 
in this section
 
for more information
Organizational principles and
 
structure
Following
 
each AGM,
 
the BoD
 
meets to
 
appoint one
 
or more
 
Vice Chairmen,
 
a Senior
 
Independent
 
Director,
 
the BoD
committee members (other than the Compensation
 
Committee members, who are elected by the shareholders)
 
and the
respective
 
committee
 
Chairpersons.
 
At
 
the
 
same
 
meeting,
 
the
 
BoD
 
appoints
 
the
 
Group
 
Company
 
Secretary,
 
who,
pursuant to the Organization Regulations,
 
acts as secretary to the BoD
 
and its committees.
Pursuant to the AoA and the Organization Regulations,
 
the BoD meets as often as business requires, but it must meet at
least six times a year. During
 
the height of the COVID-19 pandemic, BoD
 
meetings were mainly organized as video calls,
with few exceptions. Based on the experiences during the
 
pandemic, the BoD decided to adopt a split
 
approach for 2022
and going
 
forward. In 2022
 
,
 
half of the
 
meetings were
 
held in
 
person.
 
During 2022,
 
a total of
 
31
 
BoD meetings
 
were
held, 15
 
of which were attended by GEB
 
members. Average participation
 
in the BoD
 
meetings was 9
 
8%. In addition to
the
 
BoD
 
meetings
 
attended
 
by
 
GEB
 
members,
 
the
 
Group
 
CEO
 
regularly
 
attended
 
some
 
of
 
the
 
meetings
 
of
 
the
 
BoD
without the participation of other GEB members.
 
The meetings had an average duration of 95 minutes and covered both
UBS Group AG an
 
d
 
UBS AG. Additionally, six ad hoc
 
calls were held. The BoD
 
held a two-day strategy workshop,
 
which
included deep dives on each
 
business division and geographical region, and
 
focused on the execution
 
against the strategy
defined in 2021. A
 
separate one-day strategy deep dive was held
 
with a specific focus on
 
the Asia Pacific region.
 
At the BoD
 
meetings, each
 
committee Chairperson
 
provides the
 
BoD with
 
an update
 
on current
 
activities of
 
his or
 
her
committee and important committee issues.
 
In 2022
 
,
 
four UBS AG
 
BoD meetings
 
were held
 
with members of
 
the Executive
 
Board in
 
attendance. These
 
standalone
meetings are held regularly
 
to discuss and agree on
 
finance, risk, compliance, operational risk,
 
regulatory and other topics
related to UBS AG.
 
We also continued with the coordination and exchange of
 
information between UBS Group AG and its significant group
entities. Joint meetings between
 
the BoD of UBS Group AG and
 
the boards of directors of the significant group
 
entities,
as well as
 
between the
 
respective chairs of
 
the risk and
 
audit committees,
 
have been
 
held. As
 
in prior years, an
 
annual
workshop, attended by independent
 
members of the boards of the Group
 
and significant group entities, was held.
Performance assessment
Every third year, an external assessment
 
of the effectiveness of the BoD is conducted. In 2022, this review
 
concluded that
the UBS BoD
 
and committees operate effectively,
 
in line with
 
best practice, and
 
set a high standard
 
in comparison
 
with
leading international peers. The review also confirmed
 
that the BoD agenda covers all important and relevant topics
 
and
that
 
these
 
are
 
addressed
 
professionally
 
and
 
in great
 
depth.
 
It further
 
found
 
that
 
the BoD
 
members are
 
independent,
highly committed
 
and
 
of the
 
highest
 
integrity,
 
and
 
that the
 
Chairman
 
provides
 
effective leadership
 
and
 
direction. The
review emphasized that the cooperation
 
between the BoD and
 
the GEB is
 
based on mutual trust,
 
respect and constructive
dialogue. The mix of expertise in the
 
BoD is broad-based and the quality of BoD members is high. The BoD and GEB have
responded well to the economic environment, including successfully
 
managing the firm through the COVID-19 pandemic
and
 
other significant
 
challenges,
 
while maintaining
 
an appropriate
 
focus on
 
control
 
and
 
regulatory issues.
 
The review
highlighted
 
the successful CEO transition
 
and onboarding
 
,
 
and the well-planned
 
and professionally
 
executed Chairman
succession process. No significant weaknesses were identified
 
in the review;
 
maintaining a balanced agenda that
 
provides
sufficient room for each business
 
performance, strategic review and
 
growth initiatives
 
was the main area recommended
for further focus. In spring
 
2023, the performance assessment will be
 
conducted in-house
 
with a lengthy questionnaire.
 
BoD committees
The committees listed below assist the
 
BoD in fulfilling the
 
performance of its
 
responsibilities. These committees and their
charters are described in our
 
Organization Regulations, available at
ubs.com/governance.
 
The committees meet as often
as their business requires, but no less than four times
 
a year in the case of the
 
Audit Committee, the Risk Committee and
the Compensation
 
Committee, and
 
no
 
less than
 
twice
 
a
 
year in
 
the
 
case of
 
the Corporate
 
Culture
 
and
 
Responsibility
Committee (the
 
CCRC) and
 
the Governance and
 
Nominating Committee.
 
Topics
 
of common interest or
 
affecting
 
more
than one committee are discussed
 
at joint committee meetings.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Corporate
 
governan
ce
 
and
 
compensation
 
|
 
Corporate
 
governance
 
182
 
During 2022, a total of eight joint
 
committee meetings were held for UBS Group AG (five
 
joint committee meetings were
held
 
simultaneously
 
for
 
UBS
 
AG).
 
The Audit
 
Committee met
 
four
 
times with
 
the
 
Risk
 
Committee
 
and
 
twice with
 
the
CCRC.
 
The Risk Committee met once with the CCRC
 
and once with the Compensation
 
Committee.
 
 
Board of Directors
Members in 2022
Meeting attendance
without GEB
3
Meeting attendance
with GEB
Key responsibilities include:
Axel A. Weber,
 
Chairman
1
2/2
100%
2/2
100%
The Board has ultimate
 
responsibility for the success of the
 
Group and
for delivering sustainable shareholder
 
value within a framework of
prudent and effective
 
controls. It decides on the Group’s
 
strategy and
the necessary financial and human
 
resources upon recommendation
 
of
the Group CEO and
 
sets the Group’s values and standards to
 
ensure
that its obligations to shareholders
 
and
 
other stakeholders are met.
›
 
Refer to the Organization Regulations
 
of UBS Group AG,
available at
ubs.com/governance
, for more information
Colm Kelleher,
 
Chairman
2
 
14/14
100%
13/13
100%
Lukas Gähwiler
2
14/14
100%
13/13
100%
Jeremy Anderson
16/16
100%
15/15
100%
Claudia Böckstiegel
16/16
100%
15/15
100%
William C. Dudley
16/16
100%
15/15
100%
Patrick Firmenich
16/16
100%
15/15
100%
Reto Francioni
1
2/2
100%
2/2
100%
Fred Hu
14/16
88%
14/15
93%
Mark Hughes
16/16
100%
15/15
100%
Nathalie Rachou
16/16
100%
15/15
100%
Julie G. Richardson
15/16
94%
15/15
100%
Dieter Wemmer
15/16
94%
15/15
100%
Jeanette Wong
16/16
100%
15/15
100%
1
 
Axel A. Weber and Reto Francioni
 
did not stand for re-election at the 2022
 
AGM; indicated are their attended
 
and total meetings up to the 2022
 
AGM.
 
2
 
Colm Kelleher was elected as Chairman
 
and Lukas Gähwiler
to the Board at the 2022 AGM;
 
indicated are their attended
 
and total meetings
 
after their election.
 
3
 
Additionally, six calls took
 
place in 2022.
 
Audit Committee
Throughout
 
2022,
 
the Audit
 
Committee consisted
 
of four
 
independent
 
BoD members.
 
All Audit
 
Committee members
have accounting or related financial management expertise and, in compliance
 
with the rules established pursuant to the
2002
 
US
 
Sarbanes–Oxley Act,
 
at
 
least
 
one
 
member
 
qualifies
 
as
 
a
 
financial
 
expert.
 
The
 
NYSE
 
standards
 
on
 
corporate
governance and
 
Rule
 
10A-3
 
under the
 
US Securities
 
Exchange
 
Act set
 
more stringent
 
independence
 
requirements
 
for
members of
 
audit
 
committees
 
than
 
for
 
the
 
other
 
members of
 
the
 
BoD.
 
Throughout
 
2022,
 
all members
 
of
 
the
 
Audit
Committee, in addition to satisfying our
 
independence criteria, satisfied these requirements,
 
in that they did not receive,
directly or indirectly,
 
any consulting,
 
advisory or compensatory
 
fees from
 
any member
 
of the Group
 
other than
 
in their
capacity as a BoD member,
 
did not hold, directly or indirectly,
 
UBS Group AG shares
 
in excess of 5% of the outstanding
capital, and did not serve on
 
the audit committees of more than
 
two other public companies.
During 2022,
 
the Audit Committee
 
held 12
 
committee meetings, with
 
a participation
 
rate of 100%.
 
The meetings
 
had
an average duration of approximately 13
 
5
 
minutes and covered both
 
UBS Group AG and
 
UBS AG. Additional attendees
included the
 
Group CFO, the
 
Group Controller and
 
Chief Accounting Officer,
 
the Head Group
 
Internal Audit
 
(GIA),
 
and
the external
 
auditors. The
 
Chairman of
 
the BoD,
 
the Vice Chairman
 
and the
 
Group CEO
 
attended most
 
meetings. The
Chairperson and the
 
committee continued to maintain regular contact with
 
core supervisory authorities.
 
 
Audit Committee
Members
 
in 2022
Meeting attendance
 
Key responsibilities include:
Jeremy Anderson (Chairperson)
12/12
100%
The function of the Audit Committee
 
is to support the Board in fulfilling its
 
oversight duty relating
to financial reporting and
 
internal controls over financial reporting,
 
the effectiveness of the
external and internal audit functions, and the effectivene
 
ss of whistleblowing procedures.
Management is responsible
 
for the preparation, presentation and
 
integrity of the financial
statements, while the external auditors
 
are responsible for auditing
 
financial statements. The Audit
Committee’s responsibility
 
is one of oversight and review.
›
 
Refer to the Organization Regulations
 
of UBS Group AG,
 
available at
ubs.com/governance,
 
for more information
Patrick Firmenich
12/12
100%
 
Dieter Wemmer
12/12
100%
Jeanette Wong
12/12
100%
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Corporate
 
governan
ce
 
and
 
compensation
 
|
 
Corporate
 
governance
 
183
 
Compensation Committee
In 2022, the Compensation Committee consisted of four independent members before the AGM and three independent
members after the AGM. In
 
addition to the key
 
responsibilities indicated in the
 
same table, the Compensation Committee
reviews the compensation disclosures
 
included in this report.
During 2022,
 
the Compensation Committee
 
held eight
 
meetings, with
 
a participation rate of
 
100%. The meetings
 
had
an average duration of approximately 70 minutes and covered both UBS
 
Group AG and UBS AG. All meetings were held
in
 
the
 
presence
 
of
 
the
 
Chairman
 
and
 
the
 
Group
 
CEO
 
and
 
most
 
were
 
attended
 
by
 
external
 
advisors.
 
In
 
2022,
 
the
Chairperson met regularly with core
 
supervisory authorities.
 
›
 
Refer to
 
in the
 
section of this
 
report for more information
 
about the
Compensation Committee’s
 
decision-making
 
procedures
 
Compensation Committee
Members in 2022
Meeting attendance
2
 
Key responsibilities include:
Julie G. Richardson (Chairperson)
8/8
100%
The Compensation Committee is
 
responsible for:
(i)
 
supporting the Board in
 
its duties to set guidelines on compensation and benefits;
(ii)
 
approving the total
 
compensation for the Chairman and the non
 
-independent Board members;
(iii) proposing, upon proposal
 
of the Chairman, financial and non
 
-financial performance targets
and objectives for the Group CEO
 
for approval by the Board and
 
reviewing,
upon the proposal
of the Group CEO, the performance
 
framework for the other GEB memb
ers;
(iv) proposing, upon proposal
 
of the Chairman, the Group CEO’s
 
performance assessment for
approval by the Board,
 
as well as informing the Board of
 
the performance assessments of
all GEB members, including
 
the Group CEO;
(v)
proposing, upon proposal
of the Chairman, the total compensation
 
for the Group CEO for
approval by the Board;
 
and
(vi)
 
proposing, upon proposal
 
of the Group CEO, the individual
 
total compensation for the other
GEB members for approval
 
by the Board.
›
 
Refer to the Organization Regulations
 
of UBS Group AG,
 
available at
ubs.com/governance,
 
for more information
Reto Francioni
1
2/2
100%
Dieter Wemmer
8/8
100%
Jeanette Wong
8/8
100%
1
Reto Francioni did not stand
 
for re-election at the 2022
 
AGM; indicated are his attended
 
and total meetings
 
up to the 2022 AGM
 
2
Additionally, the Compensation
 
Committee held one ad
 
hoc call.
Corporate Culture and
 
Responsibility Committee
In 2022, the CCRC consisted of the Chairperson and four
 
independent BoD members. The Group CEO, the Group Chief
Risk Officer,
 
the President
 
Asset Management
 
and GEB
 
Lead for Sustainability
 
and Impact,
 
the Group
 
General Counsel
and
 
the Chief
 
Sustainability
 
Officer
 
are
 
permanent
 
guests
 
of the
 
CCRC.
 
During
 
2022,
 
six meetings
 
were held,
 
with a
participation rate of 100%. The
 
average duration of each of the meetings
 
was approximately 85 minutes.
 
Corporate Culture and Responsibility
 
Committee
Members in 2022
Meeting attendance
 
Key responsibilities include:
Axel A. Weber (Chairperson)
1
 
2/2
100%
The CCRC supports the Board
 
in its duties to safeguard and advance
 
the Group’s reputation for
responsible and sustainable
 
conduct. Its function is forward-looking
 
in that it monitors and reviews
societal trends and transformational
 
developments and assesses their potential
 
relevance for the
Group.
In undertaking this assessment,
 
it reviews stakeholder concerns and expectations pertaining
 
to the
societal performance of
 
UBS and to the development of its corporate
 
culture. The CCRC’s function
also encompasses the monitoring
 
of the current state and implementation of the programs
 
and
initiatives within the Group
 
pertaining to corporate culture and
 
corporate responsibility,
 
including
sustainability.
›
 
Refer to the Organization Regulations
 
of UBS Group AG,
 
available at
ubs.com/governance
, for more information
Colm Kelleher (Chairperson)
2
4/4
100%
Claudia Böckstiegel
2
4/4
100%
William C. Dudley
6/6
100%
Patrick Firmenich
6/6
100%
Mark Hughes
6/6
100%
Jeanette Wong
1
2/2
100%
1
Axel A. Weber did not stand for re-election and
 
Jeannette Wong stepped down from
 
this committee at the 2022
 
AGM; indicated are their attended
 
and total meetings up to
 
the 2022 AGM.
 
2
 
Colm Kelleher became
Chairman and Claudia Böckstiegel
 
member of this committee;
 
indicated are their attended
 
and total meetings after election.
 
Governance and Nominating
 
Committee
In
 
2022,
 
the
 
Governance and
 
Nominating
 
Committee
 
consisted
 
of,
 
in
 
addition
 
to
 
the
 
Chairperson,
 
five independent
members before the
 
AGM and
 
three independent members
 
after the AGM.
 
During
 
2022, six
 
meetings were
 
held, with
a participation
 
rate of 100%.
 
The average duration
 
of each of
 
the meetings was
 
approximately 60
 
minutes. The
 
Group
CEO attended meetings as appropriate
 
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Corporate
 
governan
ce
 
and
 
compensation
 
|
 
Corporate
 
governance
 
184
 
Governance and Nominating Committee
Members in 2022
Meeting attendance
3
Key responsibilities include:
Axel A. Weber (Chairperson)
1
2/2
100%
The function of the Governance and
 
Nominating Committee is to support the Board
 
in fulfilling its
duty to establish best practices
 
in corporate governance across the Group, including
 
conducting a
Board assessment, establishing
 
and maintaining a process for appointing new
 
Board and GEB
members, as well as for
 
the annual performance assessment of the Board.
›
 
Refer to the Organization Regulations
 
of UBS Group AG,
 
available at
ubs.com/governance
, for more information
Colm Kelleher (Chairperson)
2
4/4
100%
Jeremy Anderson
6/6
100%
William C. Dudley
1
2/2
100%
Fred Hu
6/6
100%
Nathalie Rachou
2
 
4/4
100%
Julie G. Richardson
1
2/2
100%
Dieter Wemmer
1
2/2
100%
1
Axel A. Weber did
 
not stand for re-election;
 
William Dudley,
 
Julie G. Richardson
 
and Dieter Wemmer
 
stepped down from
 
this committee at
 
the 2022 AGM;
 
indicated are their
 
attended and total
 
meetings up
 
to the
2022 AGM.
 
2
 
Colm Kelleher
 
became Chairman
 
and Nathalie
 
Rachou member
 
of this
 
committee; indicated
 
are their
 
attended
 
and total
 
meetings after
 
election.
 
3
Additionally, the
 
Governance
 
and Nominating
Committee held one ad hoc call.
Risk Committee
In 2022,
 
the Risk
 
Committee consisted
 
of six
 
independent
 
members before
 
the AGM
 
and
 
four independent
 
members
after the AGM.
 
During 2022,
 
the Risk Committee held
 
12 committee meetings,
 
with a participation
 
rate of 100%.
 
The
average duration
 
of each of
 
the meetings was
 
approximately 145
 
minutes, covering
 
both UBS
 
Group AG
 
and UBS AG.
The Chairman of the BoD,
 
the Vice Chairman, the Group CEO, the Group
 
CFO, the Group Chief Risk
 
Officer, the
 
Group
Chief Digital
 
and
 
Information Officer
 
,
 
the Group
 
Treasurer,
 
the Group
 
Chief Compliance
 
and
 
Governance Officer,
 
the
Group
 
General Counsel,
 
the Head
 
GIA, and
 
the external auditors
 
attended
 
the meetings.
 
In 2022,
 
the Chairperson
 
or
the full committee met with core supervisory
 
authorities.
 
Risk Committee
Members in 2022
Meeting attendance
Key responsibilities include:
Mark Hughes (Chairperson)
12/12
100%
The function of the Risk Committee
 
is to oversee and support the Board in fulfilling
 
its duty to set
and supervise an appropriate
 
risk management and control framework
 
in the areas of:
 
(i)
 
financial and non-financial risks;
(ii)
balance sheet, treasury and
 
c
apital management, including funding,
liquidity and equity attribution
.
›
 
Refer to the Organization Regulations
 
of UBS Group AG,
 
available at
ubs.com/governance
, for more information
William C. Dudley
12/12
100%
Reto Francioni
1
3/3
100%
Fred Hu
1
3/3
100%
Nathalie Rachou
12/12
100%
Julie G. Richardson
12/12
100%
1
Reto Francioni did not stand
 
for re-election and Fred
 
Hu stepped down from this
 
committee at the 2022
 
AGM; indicated are their attended
 
and total meetings
 
up to the 2022 AGM.
 
Ad hoc committees
 
The Special Committee and the Strategy
 
Committee are two ad hoc committees, which have a
 
standing composition and
hold meetings as and
 
when required.
 
Leading up to
 
the 2022 AGM,
 
the Special
 
Committee was chaired
 
by Jeremy
 
Anderson, with Claudia Böckstiegel,
 
Nathalie
Rachou, Julie G. Richardson and Axel A. Weber as its
 
members; after the AGM, Colm Kelleher and Lukas
 
Gähwiler joined
the Special Committee and Axel
 
A. Weber stepped down from the BoD. Its
 
primary purpose is to
 
oversee activities related
to
 
key
litigation
 
and
 
investigation
 
matters,
 
review
 
management’s
 
respective
 
proposals
 
and
provide
 
to
 
the
 
BoD
recommendations
 
for decisions.
 
In 2022,
 
the main
 
focus was
 
the French
 
cross-border matter.
 
The Group
 
CEO and
 
the
Group
 
General
 
Counsel
 
are
 
permanent
 
guests
 
of
 
the
 
Special
 
Committee.
 
During
 
2022,
 
two
 
meetings
 
of
 
the
 
Special
Committee were held, covering both
 
UBS Group AG and
 
UBS AG.
 
Leading up
 
to the 2022 AGM,
 
the Strategy Committee
 
was chaired
 
by Axel A.
 
Weber, with
 
William C. Dudley,
 
Fred Hu
and
 
Dieter Wemmer
 
as its
 
members; after
 
the AGM,
 
Colm Kelleher
 
replaced Axel
 
A. Weber
 
(who stepped
 
down from
the BoD) as the chair and Julie
 
G. Richardson also joined the Strategy Committee. The primary purpose of this committee
is to
 
support management and
 
the BoD with
 
regard to the
 
assessment of strategic
 
considerations and to prepare decisions
on behalf of
 
the BoD. During 2022,
 
four meetings of
 
the Strategy Committee were
 
held, covering
 
both UBS Group
 
AG
and UBS AG.
 
The Group
 
CEO and
 
other members
 
of the GEB
 
and management participated in
 
these meetings
 
as required.
 
 
 
 
Annual Report 2022 |
Corporate
 
governan
ce
 
and
 
compensation
 
|
 
Corporate
 
governance
 
185
 
Roles and responsibilities of the Chairman
 
of the Board of Directors
At the 2022
 
AGM, Axel A.
 
Weber stepped
 
down and Colm
 
Kelleher was elected
 
as the full-time
 
Chairman of
 
the BoD.
The Chairman coordinates tasks
 
within the BoD, calls BoD
 
meetings and sets their agendas.
 
He presides over all general
meetings of shareholders, chairs
 
the Governance and Nominating
 
Committee,
 
as well as the CCRC
 
,
 
and works with the
committee Chairpersons
 
to coordinate
 
the work
 
of all
 
BoD committees.
 
Together
 
with the
 
Group
 
CEO, the
 
Chairman
undertakes
 
responsibility
 
for
 
UBS’s
 
reputation,
 
and
 
is
 
responsible
 
for
 
effective
 
communication
 
with
 
shareholders
 
and
other stakeholders, including government officials, regulators
 
and public organizations.
 
This is in addition to establishing
and
 
maintaining close
 
working
 
relationships
 
with the
 
Group
 
CEO and
 
other GEB
 
members, and
 
providing
 
advice and
support when appropriate.
›
 
Refer to
 
in the
 
section of this
 
report for information
 
about our Pillars,
Principles and Behaviors
In 2022,
 
the respective
 
Chairman in
 
office met
 
regularly
 
with core
 
supervisory authorities
 
of all
 
major locations
 
where
UBS is active. Meetings with important supervisory
 
authorities were scheduled
 
on an ad hoc or needs
 
-driven basis.
Roles and responsibilities of the Vice
 
Chairmen and the Senior
 
Independent Director
 
 
The BoD
 
appoints one
 
or more
 
Vice Chairmen
 
and
 
a Senior
 
Independent Director.
 
If the
 
BoD appoints
 
more than
 
one
Vice Chairman, at least one of them must be independent. Both the Vice Chairman and the Senior Independent Director
support the Chairman with regard to his responsibilities and authorities and provide him with advice. In conjunction with
the Chairman and the Governance and
 
Nominating Committee, they facilitate good
 
Group-wide corporate governance,
as well as balanced leadership and
 
control within the Group,
 
the Board and the
 
committees.
Lukas
 
Gähwiler
 
was
 
appointed
 
as
 
Vice
 
Chairman
 
following
 
the
 
2022
 
AGM.
 
Jeremy
 
Anderson
 
has
 
been
 
the
 
Senior
Independent Director
 
since 2020.
 
The Vice Chairman is
 
required to
 
lead meetings of
 
the BoD in
 
the temporary absence
of
 
the
 
Chairman.
 
Together
 
with
 
the
 
Governance
 
and
 
Nominating
 
Committee,
 
either
 
one
 
of
 
them
 
is
 
tasked
 
with
 
the
ongoing
 
monitoring
 
and the
 
annual evaluation
 
of the
 
Chairman. The
 
Vice Chairman
 
also represents
 
UBS on
 
behalf of
the Chairman in meetings with internal or external stakeholders. In
 
particular, he represents UBS across a broad range of
associations and industry bodies
 
in Switzerland.
 
The
 
Senior
 
Independent
 
Director
 
enables
 
and
 
supports
 
communication
 
and
 
the
 
flow
 
of
 
information
 
among
 
the
independent
 
BoD members. At
 
least twice a
 
year, he
 
organizes and
 
leads a meeting
 
of the independent
 
BoD members
without the
 
participation of the
 
Chairman. In 2022 and
 
in early
 
2023, two independent
 
BoD meetings were
 
held, covering
both UBS Group AG
 
and UBS AG, with
 
an average participation rate of 85%
 
and an average duration
 
of approximately
105
 
minutes.
 
The
 
Senior
 
Independent
 
Director
 
also
 
relays
 
to
 
the
 
Chairman
 
any
 
issues
 
or
 
concerns
 
raised
 
by
 
the
independent BoD members and acts as a point of
 
contact for shareholders and stakeholders seeking
 
discussions with an
independent BoD member
.
 
Important business connections of independent
 
members of the Board of
 
Directors
As
 
a
 
global
 
financial services
 
provider
 
and
 
a
 
major Swiss
 
bank,
 
we
 
enter
 
into
 
business
 
relationships
 
with
 
many
 
large
companies,
 
including
 
some in
 
which our
 
BoD
 
members have
 
management
 
or independent
 
board
 
responsibilities.
 
The
Governance
 
and
 
Nominating
 
Committee
 
determines
 
in
 
each
 
instance
 
whether
 
the
 
nature
 
of
 
the
 
Group’s
 
business
relationship with such
 
a company might compromise our BoD
 
members’ capacity to express independent
 
judgment.
Our
 
Organization
 
Regulations
 
require
 
three-quarters
 
of
 
the
 
UBS
 
Group
 
AG
 
BoD
 
members
 
and
 
one-third
 
of
 
those
 
at
UBS AG
 
to be
 
independent.
 
For this
 
purpose,
 
independence is
 
determined in
 
accordance
 
with FINMA
 
Circular 2017/1
“Corporate governance –
 
banks” and the NYSE rules.
 
In 2022, our BoD met the standards
 
of the Organization Regulations
 
for the percentage of directors who
 
are considered
independent
 
under
 
the criteria
 
described
 
above.
 
Axel
 
Weber,
 
who
 
served
 
as
 
Chairman of
 
the
 
Board until
 
the
 
Annual
General Meeting
 
on 6
 
April 2022,
 
had
 
a full-time
 
contract with
 
UBS
 
Group AG
 
and was
 
not considered
 
independent.
Our
 
Vice
 
Chairman,
 
Lukas
 
Gähwiler,
 
previously
 
had
 
a
 
full-time
 
contract
 
with
 
UBS
 
Switzerland
 
AG
 
and,
 
therefore,
 
is
currently not considered independent according to
 
the regulatory independence rules. No
 
current BoD member has
 
either
an
 
employment
 
contract
 
or
 
a
 
significant
 
business
 
connection
 
to
 
UBS
 
or
 
any
 
of
 
its
 
subsidiaries.
 
Except
 
for
 
the
 
Vice
Chairman,
 
no
 
BoD
 
member
 
currently
 
carries
 
out,
 
or
 
has
 
carried
 
out
 
over
 
the
 
past
 
three
 
years,
 
any
 
operational
management tasks within the Group.
 
All relationships and transactions with UBS Group AG’s independent BoD members are conducted in the ordinary course
of business
 
and are
 
on
 
the same
 
terms as
 
those
 
prevailing at
 
the time
 
for comparable
 
transactions
 
with non
 
-affiliated
persons. All relationships
 
and transactions with BoD members’ associated
 
companies are conducted
 
at arm’s length.
›
 
Refer to
 
in the
 
section on of
 
this report for
 
more information
 
 
 
 
Annual Report 2022 |
Corporate
 
governan
ce
 
and
 
compensation
 
|
 
Corporate
 
governance
 
186
 
Checks and balances: Board of Directors
 
and Group Executive
 
Board
We operate
 
under
 
a strict
 
dual
 
board
 
structure,
 
as
 
mandated
 
by Swiss
 
banking
 
law.
 
The separation
 
of responsibilities
between the BoD and the GEB is clearly defined in the Organization Regulations.
 
The BoD decides on the strategy of the
Group, upon
 
recommendations by
 
the Group
 
CEO, and
 
exercises ultimate
 
supervision
 
over management; whereas
 
the
GEB, headed
 
by the Group
 
CEO, has executive management
 
responsibility.
 
The functions
 
of Chairman
 
and Group
 
CEO
are assigned
 
to two
 
different people,
 
leading to
 
a separation
 
of powers.
 
This structure establishes
 
checks and
 
balances
and
 
preserves
 
the
 
institutional
 
independence
 
of
 
the
 
BoD
 
from
 
the
 
executive
 
management
 
of
 
the
 
Group,
 
for
 
which
responsibility
 
is
 
delegated
 
to
 
the
 
GEB,
 
under
 
the
 
leadership
 
of
 
the
 
Group
 
CEO.
 
No
 
member
 
of
 
one
 
board
 
may
simultaneously be a member of the other.
Supervision
 
and
 
control
 
of
 
the
 
GEB
 
remain
 
with
 
the
 
BoD.
 
The
 
authorities
 
and
 
responsibilities
 
of
 
the
 
two
 
bodies
 
are
governed by the AoA and
 
the Organization Regulations.
Skills, expertise and training
 
of the Board of Directors
At
 
present,
 
the
 
BoD
 
is
 
well-diversified
 
and
 
composed
 
of
 
members
 
with
 
a
 
broad
 
spectrum
 
of
 
skills,
 
educational
backgrounds,
 
experience, and expertise from a range
 
of sectors that reflect the nature
 
and scope of the firm’s business.
The Governance
 
and
 
Nominating
 
Committee
 
maintains
 
a
 
competencies
 
and
 
experience
 
matrix to
 
identify gaps
 
in the
competencies considered
 
most relevant
 
to the BoD,
 
taking into
 
consideration the
 
firm’s business
 
exposure, risk
 
profile,
strategy and geographic reach.
 
In
 
recent
 
years,
 
the
 
composition
 
of
 
the
 
BoD
 
has
 
been
 
systematically
 
rebuilt
 
along
 
the
 
identified
 
requirements.
 
The
appointment
 
of a
 
new
 
Chairman and
 
Vice Chairman
 
in 2022
 
completed this
 
process.
 
As a
 
result, no
 
nominations
 
are
submitted for a
 
vote at the AGM
 
in 2023. Nevertheless, a
 
list of potential
 
candidates is
 
prepared and
 
updated regularly
by UBS Group AG.
We asked
 
our BoD
 
members to
 
select their
 
four key
 
competencies
 
from the
 
following
 
eight categories
 
and to
 
indicate
whether they have
 
ever been
 
a CEO or
 
chairperson of
 
a listed
 
company or a
 
member of
 
the executive
 
board of
 
such a
company:
Key competencies
–
 
banking (wealth management,
 
asset management, personal and
 
corporate banking) and insurance
–
 
investment banking, capital markets
 
–
 
finance, audit, accounting
 
–
 
risk management, compliance and legal
 
–
 
human resources management,
 
including compensation
–
 
technology, cybersecurity
–
 
regulatory authority, central bank
 
–
 
environmental, social and governance
 
(ESG)
Leadership experience
–
 
experience as a CEO or chairperson
–
 
executive board leadership experience (e.g.,
 
as CFO, chief risk officer or COO of a
 
listed company)
 
The
 
Governance
 
and
 
Nominating
 
Committee reviews
 
these
 
categories
 
and
 
ratings
 
annually
 
to
 
confirm that
 
the
 
BoD
continues to possess
 
the most relevant experience and competencies
 
to perform its duties.
With
 
regard
 
to
 
the
 
composition
 
of
 
the
 
BoD
 
after
 
the
 
2022
 
AGM,
 
the
 
members
 
thereof
 
identified
 
all
 
of
 
the
 
target
competencies as being
 
their key competencies.
 
Particularly strong levels
 
of experience and expertise
 
existed in these
 
areas:
–
 
financial services
 
–
 
risk management, compliance and legal
 
–
 
finance, audit, accounting
 
Furthermore,
 
10
 
of the
 
12
 
BoD members
 
have held
 
or currently
 
hold
 
chairperson,
 
CEO or
 
other executive
 
board-level
leadership positions.
Moreover,
 
education
 
remained an
 
important
 
priority for
 
our
 
BoD
 
members.
 
In
 
addition to
 
a comprehensive
 
induction
program for new BoD
 
members, continuous training and topical deep
 
dives are part of the BoD agenda.
 
›
 
Refer to
 
in the
 
section of this
 
report for information
 
about our risk
governance framework
 
 
dev_UBS_AR_2022p215i0.gif
 
Annual Report 2022 |
Corporate
 
governan
ce
 
and
 
compensation
 
|
 
Corporate
 
governance
 
187
 
 
Succession planning
 
Succession planning
 
is one of
 
the key responsibilities
 
of both
 
the BoD and
 
the GEB. Across
 
all divisions and
 
regions, an
inclusive talent
 
development and
 
succession planning
 
process
 
is in
 
place that
 
aims to
 
foster the
 
personal development
and Group-wide mobility
 
of our
 
employees. Although the recruiting
 
process for
 
BoD and GEB
 
members takes
 
into account
a broad spectrum of factors, such as skills, backgrounds,
 
experience and expertise, our approach
 
with regard to diversity
considerations
 
does not constitute a
 
diversity policy within
 
the meaning of the EU Directive
 
on Non
 
-Financial Reporting,
and Swiss law does
 
not require UBS to maintain such
 
a policy.
In 2022, the GEB launched several strategic initiatives with the close
 
involvement of the BoD and with the aim of further
strengthening
 
internal succession
 
planning
 
at UBS.
 
This included
 
the early
 
identification of
 
talents and
 
their systematic
development,
 
including
 
international
 
a
nd
 
cross
-
divisional
 
rotations.
 
The
 
succession
 
plans
 
for
 
the
 
GEB
 
and
 
the
management layers below it are managed under the lead of the Group CEO and are reviewed and approved
 
by the BoD.
For the BoD, the Chairman leads
 
a systematic succession planning
 
process as illustrated in the chart below.
Our strategy and
 
the business
 
environment constitute the
 
main drivers in
 
our succession
 
planning process
 
for new
 
BoD
members, as they
 
define the
 
key competencies
 
required on
 
the BoD.
 
Taking the diversity
 
and the
 
tenure of the
 
existing
BoD into account, the Governance and Nominating Committee
 
defines the recruiting profile for the
 
search. Both external
and
 
internal sources
 
contribute to
 
identifying suitable
 
candidates.
 
The Chairman
 
and the
 
members of
 
the Governance
and
 
Nominating
 
Committee
 
meet
 
with
 
potential
 
candidates
 
and,
 
with
 
the
 
support
 
of
 
the
 
full
 
BoD,
 
nominations
 
are
submitted to the AGM for
 
approval. New BoD members follow an in-depth onboarding process designed to enable them
to integrate efficiently and
 
become effective in their new
 
role. Due to this succession
 
planning process, the composition
of the BoD is in line with
 
the demanding requirements of a leading
 
global financial services firm.
 
The smooth and effective succession of both the CEO
 
and Chairman, as well as that
 
of new GEB members, demonstrates
the strength and success of
 
succession planning at UBS.
 
 
dev_UBS_AR_2022p216i0.jpg
 
Annual Report 2022 |
Corporate
 
governan
ce
 
and
 
compensation
 
|
 
Corporate
 
governance
 
188
 
 
Information and control instruments
 
with regard to the Group Executive
 
Board
The BoD is kept informed of
 
the GEB’s activities in various
 
ways, including regular meetings
 
between the Chairman, the
Group CEO and
 
GEB members. The
 
Group CEO and
 
other GEB members also
 
participate in BoD
 
meetings to update its
members on
 
all significant
 
issues.
 
The
 
BoD
 
receives regular
 
comprehensive
 
reports
 
covering financial,
 
capital, funding,
liquidity,
 
regulatory,
 
compliance
 
and
 
legal
 
developments,
 
as
 
well
 
as
 
performance
 
against
 
plan
 
and
 
forecasts
 
for
 
the
remainder of the year. For important developments,
 
BoD members are also updated by the GEB in between meetings. In
addition, the Chairman receives the
 
meeting material and minutes of the
 
GEB meetings.
BoD members may request from
 
other BoD
 
or GEB members any information
 
about matters concerning the
 
Group that
they require in order to fulfill
 
their duties. When these
 
requests are raised outside
 
BoD meetings, such
 
requests must go
through the Group
 
Company Secretary and be addressed to
 
the Chairman.
 
The BoD
 
is supported
 
in discharging
 
its governance
 
responsibilities by
 
GIA, which
 
independently assesses
 
whether risk
management, control and governance
 
processes are designed and operating
 
sustainably and effectively.
The Head GIA
 
reports directly to
 
the Chairman. In
 
addition, GIA has
 
a functional reporting
 
line to the
 
Audit Committee
in accordance
 
with
 
its responsibilities
 
as set
 
forth
 
in our
 
Organization
 
Regulations.
 
The Audit
 
Committee assesses
 
the
independence and performance of GIA and the
 
effectiveness of both the Head GIA and
 
GIA as an organization, approves
GIA’s annual audit plan
 
and objectives and monitors GIA’s
 
discharge of these objectives.
 
The committee
 
is also
 
in regular
 
contact with
 
the Head
 
GIA. GIA
 
issues quarterly
 
reports
 
that provide
 
an
 
overview
 
of
significant audit
 
results and
 
key issues,
 
as well
 
as themes
 
and trends
 
,
 
based on
 
results of
 
individual audit
 
s, continuous
risk assessment and
 
issue assurance.
 
The reports are
 
provided to the
 
Chairman, the members
 
of the Audit
 
and the Risk
Committees, the
 
GEB and other
 
stakeholders. The Head
 
GIA regularly updates
 
the Chairman and
 
the Audit Committee
on
 
GIA’s
 
activities,
 
processes,
 
audit
 
plan
 
execution,
 
resourcing
 
requirements
 
and
 
other important
 
developments.
 
GIA
issues an annual Activity
 
Report, which is provided to
 
the Chairman and the
 
Audit Committee to
 
support their assessment
of GIA’s effectiveness.
 
›
 
Refer to
 
in this section
 
for more information
›
 
Refer to
 
in the
 
section of this
 
report for information
 
about reporting to
the BoD
 
 
 
 
Annual Report 2022 |
Corporate
 
governan
ce
 
and
 
compensation
 
|
 
Corporate
 
governance
 
189
 
Group Executive Board
The BoD delegates the management of
 
the business to the Group
 
Executive Board (the GEB).
 
Responsibilities, authorities and
 
organizational principles of the
 
Group Executive Board
As of
 
31 December 2022
 
,
 
the GEB, under
 
the leadership of
 
the Group
 
CEO, consisted o
 
f
 
12 members. It has
 
executive
management responsibility for the steering of the Group
 
and its business, develops the strategies of the Group, business
divisions
 
and
 
Group
 
Functions,
 
and
 
implements
 
the
 
BoD-approved
 
strategies.
 
The
 
GEB
 
is
 
also
 
the
 
risk
 
council
 
of
 
the
Group, with
 
overall responsibility
 
for establishing
 
and supervising
 
the implementation
 
of risk
 
management and
 
control
principles, as well as for managing
 
the risk profile of the Group,
 
as determined by the BoD
 
and the Risk Committee.
 
In 2022, the GEB held
 
a total of 74 meetings for UBS
 
Group AG.
 
At UBS AG, management of the business is also delegated, and its Executive Board, under the leadership of its President,
has executive management responsibility for UBS AG and its business. All members of the
 
GEB are members of UBS AG’s
Executive Board,
 
with the exception
 
of Sabine Keller-Busse,
 
who serves as
 
President UBS Switzerland
 
AG. The
 
Executive
Board held 74 combined
 
meetings with the GEB and four standalone
 
meetings for UBS AG in 2022.
›
 
Refer to the Organization
 
Regulations of
 
UBS Group AG, available
 
at
ubs.com/governance
, for more information
 
about the
authorities of the
 
Group Executive Board
Changes to the Group Executive
 
Board
Effective 16 May 2022,
 
Kirt Gardner stepped down and
 
Sarah Youngwood
 
succeeded him as Group CFO, having
 
joined
the
 
GEB
 
on
 
1 March
 
2022.
 
Formerly,
 
she
 
was
 
CFO
 
of
 
JPMorgan
 
Chase’s
 
Consumer
 
&
 
Community
 
Banking
 
line
 
of
business.
Effective 3
 
October
 
2022,
 
Tom Naratil
 
stepped
 
down
 
as Co
 
-President
 
Global
 
Wealth
 
Management
 
and
 
President
 
UBS
Americas and Naureen
 
Hassan joined UBS
 
as a GEB member with
 
functions of President
 
UBS Americas and CEO of
 
UBS
Americas
 
Holding
 
LLC.
 
Ms.
 
Hassan
 
was
 
most
 
recently
 
First
 
Vice
 
President
 
and
 
Chief
 
Operating
 
Officer
 
of
 
the
 
Federal
Reserve Bank of New York, where she was responsible for technology,
 
operations, finance, risk and HR, and led the New
York Fed’s agile transformation.
 
Iqbal Khan became sole President
 
Global Wealth Management on
 
the same date.
On 8 November 2022, UBS
 
announced that Christian Bluhm will step
 
down from his role as Group
 
Chief Risk Officer on
30 April 2023. Damian
 
Vogel will join the
 
GEB on 1 May 2023
 
and will take over as
 
Group Chief Risk Officer.
 
Mr. Vogel
is currently Chief Risk Officer for UBS’s
 
Global Wealth Management business
 
division.
 
 
The biographies on the following
 
pages provide information about the GEB members in office as of
 
31 December 2022.
The biographies
 
of Kirt
 
Gardner and
 
Tom
 
Naratil
 
can be
 
found
 
on
 
pages
 
212
 
and 216
 
of the
 
UBS
 
Group
 
AG Annual
Report
 
2021,
 
available under
 
“Annual
 
reporting”
 
at
ubs.com/investors
.
 
In
 
addition
 
to
 
information
 
on
 
mandates,
 
the
biographies
 
include
 
memberships
 
and
 
other
 
activities
 
or
 
functions,
 
as
 
required
 
by
 
the
 
SIX
 
Swiss
 
Exchange
 
Corporate
Governance Directive.
In line
 
with Swiss
 
law, article 36
 
of our
 
AoA limits
 
the number
 
of mandates
 
that GEB
 
members may
 
hold
 
outside UBS
Group to one
 
mandate in
 
a listed company
 
and five additional mandates
 
in non-listed companies. Mandates
 
in companies
that are controlled by UBS or
 
that control UBS are not
 
subject to this limitation. In addition,
 
GEB members may not hold
more
 
than
 
10
 
mandates
 
at
 
one
 
time
 
at
 
the
 
request
 
of
 
the
 
company
 
and
 
more
 
than
 
eight
 
mandates
 
in
 
associations,
charitable organizations, foundations,
 
trusts and employee welfare
 
foundations. On 31
 
December 2022, no
 
member of
the GEB reached the aforementioned
 
thresholds.
Responsibilities and authorities
 
of the Asset and Liability
 
Committees
The Asset and Liability Committees
 
(the ALCOs) of UBS
 
Group AG and
 
UBS AG are sub
 
-committees of the GEB and the
Executive Board that are
 
responsible for managing
 
assets and liabilities in line with the strategy,
 
risk appetite, regulatory
commitments
 
and
 
the
 
interests
 
of
 
shareholders
 
and
 
other
 
stakeholders.
 
The
 
ALCO
 
of
 
UBS
 
Group
 
AG
 
proposes
 
the
framework for capital management, capital
 
allocation, and
 
liquidity and funding
 
risk, and proposes limits and indicators
for the
 
Group
 
to the BoD
 
for approval.
 
It oversees
 
the balance
 
sheet management
 
of the
 
Group, its
 
business divisions
and Group Functions.
 
In 2022, the ALCOs of UBS
 
Group AG and UBS AG held
 
10
 
meetings.
Management contracts
We
 
have
 
not
 
entered
 
into
 
management
 
contracts
 
with
 
any
 
companies
 
or
 
natural
 
persons
 
that
 
do
 
not
 
belong
 
to
 
the
Group.
 
 
 
dev_UBS_AR_2022p32i1.jpgdev_UBS_AR_2022p218i0.jpg
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Cor
porate
 
governance
 
190
 
 
 
Ralph Hamers
 
Group Chief Executive
 
Officer, member of the
 
GEB since 2020
 
 
Nationality:
 
Dutch |
Year of birth:
 
1966
 
Ralph Hamers has been Group
 
CEO of UBS Group
 
AG and President of
the Executive Board of UBS AG
 
since November 2020, after joining UBS
as
 
Group Executive
 
Board
 
member in
 
September 2020.
 
Mr.
 
Hamers is
committed
 
to ensuring
 
that our
 
firm is
 
positioned
 
to evolve
 
with
 
our clients
and the larger
 
world. He
 
has led
 
work to
 
transform our
 
firm for
 
the future,
with
 
our Group-wide
 
strategy and
 
newly
 
defined purpose
 
launched in
April 2021. Prior to joining UBS, Mr.
 
Hamers was CEO and Chairman of
the Executive Board of
 
ING Group, where he
 
spent over 30 years
 
of his
career. During his time
 
as CEO of ING,
 
he steered the
 
bank to profitability
after the financial
 
crisis and supported the firm’s
 
digital transformation.
Mr.
 
Hamers has played a
 
leading role in driving
 
efforts in areas
 
such as
digital disruption
 
and sustainability.
 
Professional experience
2020 – date
Group CEO,
 
UBS Group AG, and
President of the
Executive Board,
UBS AG
2013 – 2020
CEO and Chairman
 
of the Executive Board,
 
ING
Supervisory Board member
 
of NN Group (2014
 
– 2015);
Chairman Management
 
Board Banking (2013
 
– 2020) and
Chairman Management
 
Board Insurance (2013
 
– 2014)
2011 – 2013
CEO of ING Belgium
 
and Luxembourg,
 
ING
 
2010 – 2011
Head of Network
 
Management for Retail
 
Banking Direct &
International, ING
2007 – 2010
Global Head of the
 
Commercial Banking
 
network, ING
2005 – 2007
CEO of ING Bank Netherlands,
 
ING
2002 – 2005
General Manager of
 
the ING Bank branch
 
network, ING
 
Education
–
 
Master’s degree, business
 
econometrics and
 
operations
 
research,
Tilburg University,
 
Netherlands
 
Other activities and
 
functions
–
 
Member of the Board
 
of the Swiss-American
 
Chamber of
 
Commerce
–
 
Member of the Institut
 
International d’Etudes
 
Bancaires
–
 
Member of the IMD
 
Foundation Board
–
 
Member of the McKinsey
 
Advisory Council
–
 
Member of the World
 
Economic Forum
 
International Business
 
Council
–
 
Governor of the
 
Financial Services /
 
Banking Community
 
of the World
Economic Forum
–
 
Member of the International
 
Advisory Panel, Monetary
 
Authority
 
of Singapore
–
 
Member of the Board
 
of the Institute of
 
International Finance
 
 
Christian Bluhm
 
Group Chief Risk Officer, member
 
of the GEB since
 
2016
 
 
Nationality:
German |
Year of birth:
 
1969
 
Christian Bluhm has been
 
Group Chief Risk Officer
 
since 2016. He
 
held
several positions in academia before starting his banking career
 
in 1999
with Deutsche
 
Bank in
 
credit
 
risk management,
 
and subsequently
 
working
for Hypovereinsbank and Credit
 
Suisse in the
 
same area. Before
 
joining
UBS, he
 
used his expertise and
 
skills as Chief
 
Risk & Financial Officer
 
at
FMS Wertmanagement.
 
Mr. Bluhm is responsible for the development
 
of
the
 
Group’s
 
risk
 
management and
 
control
 
framework for
 
various risk
categories and implementation
 
of its independent
 
control frameworks.
 
Professional experience
2016 – date
Group Chief Risk Officer,
 
UBS Group AG,
 
and Chief Risk
Officer, UBS AG
2012 – 2015
Spokesman of the
 
Executive Board,
 
FMS Wertmanagement
2010 – 2015
Chief Risk & Financial
 
Officer, FMS Wertmanagement
2004 – 2009
Managing Director, Credit Risk Management
 
(Switzerland
and Private Banking
 
worldwide), Credit Suisse
2008 – 2009
Head Credit Risk Management
 
Analytics &
 
Instruments,
Credit Suisse
2004 – 2008
Head of Credit Portfolio
 
Management, Credit
 
Suisse
2001 – 2004
Head Structured Finance
 
Analytics, Group
 
Credit Portfolio
Management, Hypovereinsbank
 
Education
–
 
Master’s degree, mathematics
 
and informatics,
 
and doctorate,
mathematics, University
 
of Erlangen-Nuremberg,
 
Germany
 
Non-listed company
 
boards
–
 
Chairman of the Board
 
of Christian Bluhm
 
Photography AG
 
Other activities and
 
functions
–
 
Member of the Board
 
of UBS Switzerland
 
AG
–
 
Member of the Foundation
 
Board of the UBS
 
Pension Fund
–
 
Member of the Foundation
 
Board International
 
Financial Risk Institute
 
 
 
dev_UBS_AR_2022p219i1.jpgdev_UBS_AR_2022p219i0.jpg
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
191
 
 
 
Mike Dargan
 
Group Chief Digital
 
and Information
 
Officer,
 
member of the GEB
 
since 2021
 
Nationality:
 
British |
Year of birth:
 
1977
 
Mike Dargan was appointed Group Chief
 
Digital and Information
 
Officer
(CDIO) in May
 
2021 after leading
 
our Group Technology
 
function since
joining UBS
 
in 2016.
 
In addition
 
to his
 
CDIO remit, where
 
he oversees
global
 
functions such
 
as
 
technology and
 
corporate services,
 
he
 
is also
Group Executive Board
 
sponsor for our
 
firm’s digital assets
 
strategy and
 
a
co-sponsor of both our AI, Data and Analytics center of expertise (along
with Robert Karofsky) and our agile transformation.
 
Prior to joining UBS,
Mr. Dargan held
 
various senior
 
roles in
 
technology, corporate
 
strategy
 
and
investment banking
 
at Standard Chartered
 
Bank, Merrill Lynch
 
and Oliver
Wyman.
 
Professional experience
May 2021 – date
Group CDIO, UBS
 
Group AG, and CDIO,
 
UBS AG
Oct. 2021 – date
President of the Executive
 
Board,
 
UBS Business Solutions
 
AG
2016 – 2021
Head Group Technology, UBS
2015 – 2016
CIO for Corporate
 
and Institutional
 
Banking,
 
Standard Chartered Bank
2014 – 2015
Global Group Technology and Operations
 
Head for
Global Markets, Wealth
 
Management,
 
Private Banking
and Securities
 
Services, Group Technology and
Operations Engineering,
 
Standard Chartered
 
Bank
2013 – 2014
CIO for Financial Markets,
 
Standard Chartered Bank
2009 – 2013
Global Head of Strategy
 
and Corporate M&A,
 
Global
Markets, Standard Chartered
 
Bank
2005 – 2009
Head Corporate Strategy
 
& M&A, EMEA
 
and Pacific
Rim, Merrill Lynch
 
Education
–
 
Master’s degree, politics,
 
philosophy and
 
economics,
 
St. John’s College, University
 
of Oxford
 
Non-listed company
 
boards
–
 
Member of the Board
 
of Directors of Done
 
Next Holdings
 
AG
 
Other activities and
 
functions
–
 
Member of the Board
 
of UBS Business
 
Solutions AG
–
 
Member of the Board
 
of UBS Optimus
 
Foundation
–
 
Member of the Board
 
of Trustees of the Inter-Community
 
School Zurich
 
 
Suni Harford
 
President Asset Management,
 
member of the
 
GEB since 2019
 
 
Nationality:
 
American (US) |
Year of birth:
 
1962
 
Suni Harford was appointed President
 
Asset Management
 
in 2019 and is
the Chair
 
of UBS
 
Optimus Foundation.
 
Ms. Harford has
 
been the
 
UBS GEB
Lead for Sustainability and Impact since May 2021. She started her Wall
Street
 
career
 
at
 
Merrill
 
Lynch
 
&
 
Co.,
 
in
 
investment
 
banking,
 
before
embarking on
 
a
 
24-year career
 
at Citigroup
 
Inc., the
 
last nine
 
years of
which she
 
was
 
the Regional
 
Head of
 
Markets for
 
North America.
 
Ms.
Harford joined UBS in
 
2017, bringing with her a
 
broad experience from
across
 
the
 
industry,
 
including
 
in
 
research,
 
client
 
coverage
 
and
 
risk
management, and successfully led UBS
 
Asset Management’s integrated
investments capabilities,
 
driving performance
 
for its clients.
 
Professional experience
2019 – date
President Asset Management,
 
UBS Group AG
 
and UBS AG
2017 – 2019
Head of Investments,
 
Asset Management,
 
UBS
2008 – 2017
Regional Head of Markets
 
for North Americas,
 
Citigroup Inc.
2004 – 2008
Global Head of Fixed
 
Income Research,
 
Citigroup Inc.
 
Education
–
 
Bachelor’s degree, physics
 
and mathematics,
 
Denison University, Ohio
–
 
MBA, Tuck School of Business,
 
Dartmouth College,
 
New Hampshire
 
Other activities and
 
functions
–
 
Chairman of the Board
 
of Directors of UBS Asset
 
Management
 
AG
–
 
Chair of the Board of
 
UBS Optimus Foundation
–
 
Member of the Leadership
 
Council of the
 
Bob Woodruff Foundation
 
 
 
dev_UBS_AR_2022p220i1.jpgdev_UBS_AR_2022p220i0.jpg
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
192
 
 
 
Naureen Hassan
 
President UBS Americas,
 
member of the
 
GEB since October
 
2022
 
Nationality:
 
American (US) |
Year of birth:
1971
 
Naureen Hassan was appointed
 
President UBS Americas
 
and CEO of UBS
Americas Holding LLC
 
in October 2022. She joined UBS from the
 
Federal
Reserve Bank of New York, where she was COO and
 
First Vice President.
After starting
 
her career
 
at McKinsey
 
& Company,
 
Ms. Hassan
 
held various
business transformation, strategy, and
 
client experience leadership roles
at Charles
 
Schwab Corporation.
 
As Chief
 
Digital
 
Officer at
 
Morgan
 
Stanley
Wealth
 
Management, she
 
led the
 
digital strategy
 
and executed
 
digital
transformation of
 
the
 
wealth
 
management business
 
to
 
improve
 
client
experience and financial
 
advisor effectiveness and
 
efficiency.
 
Professional experience
Oct. 2022 – date
President UBS Americas,
 
UBS Group AG
 
and UBS AG
CEO, UBS Americas
 
Holding LLC
2021 – Sept. 2022
First Vice President and
 
COO, Federal
 
Reserve
 
Bank of New York
2016 – 2020
Chief Digital Officer, Wealth Management,
 
Morgan Stanley
2014 – 2016
Executive Vice President,
 
Investor Services
 
Segments &
Platforms, Charles
 
Schwab Corporation
2014
Senior Vice President,
 
Business Process
 
Transformation,
Charles Schwab Corporation
2012 – 2014
Senior Vice President,
 
Advisor Services
 
Client Experience
& Strategic Integration,
 
Charles Schwab
 
Corporation
2010 – 2012
COO and Board Director, Charles
 
Schwab Corporation
2003 – 2010
Various senior positions at
 
Charles Schwab
 
Corporation
 
Education
–
 
Bachelor’s degree,
 
economics, Princeton
 
University
–
 
Master’s degree, business
 
administration,
 
Stanford University
Graduate School
 
of Business
 
Other activities and
 
functions
–
 
Member of the Board
 
of UBS Americas Holding
 
LLC
–
 
Member of the Board
 
of the Securities Industry
 
and Financial Markets
Association
 
 
Robert Karofsky
 
President Investment
 
Bank, member of the
 
GEB since 2018
 
 
Nationality:
 
American (US) |
Year of birth:
1967
 
Robert Karofsky was
 
appointed Co-President of
 
the Investment Bank in
2018. He
 
became sole
 
President in
 
April 2021.
 
Before
 
joining UBS,
 
he
acquired
 
know-how
 
in
 
investment
 
banking
 
as
 
an
 
analyst
 
and
 
trader,
working
 
for
 
various
 
financial
 
institutions
 
such
 
as
 
Morgan
 
Stanley,
Deutsche Bank
 
and AllianceBernstein. He
 
then became
 
Global Head
 
of
Equities at UBS, responsible
 
for driving UBS’s growth
 
strategy for equities
globally. In October 2021, Mr.
 
Karofsky was appointed to the additional
role of UBS GEB sponsor to
 
co-lead the AI, Data and Analytics center of
expertise, along with Mike
 
Dargan.
 
Professional experience
Apr. 2021 – date
President Investment
 
Bank, UBS Group
 
AG and UBS AG
2018 – Mar. 2021
Co-President Investment
 
Bank, UBS
2015 – 2021
President UBS Securities
 
LLC, UBS
2014 – 2018
Global Head Equities,
 
UBS
2011 – 2014
Global Head of Equity
 
Trading, AllianceBernstein
2008 – 2010
Co-Head of Global
 
Equities, Deutsche
 
Bank
2005 – 2008
Head of North American
 
Equities, Deutsche
 
Bank
 
Education
–
 
Bachelor’s degree,
 
economics, Hobart
 
and William
 
Smith Colleges,
New York
–
 
MBA, finance and statistics,
 
University of Chicago’s
 
Booth School of
Business
 
Other activities and
 
functions
–
 
Member of the Board
 
of UBS Americas Holding
 
LLC
–
 
Member of the Board
 
of UBS Optimus
 
Foundation
–
 
Trustee of the UBS Americas Inc.
 
Political Action Committee
 
 
 
dev_UBS_AR_2022p221i1.jpgdev_UBS_AR_2022p221i0.jpg
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
193
 
 
 
Sabine Keller-Busse
 
President Personal
 
& Corporate Banking
 
and
 
President UBS Switzerland,
 
member of the
 
GEB since 2016
 
Nationality:
 
Swiss and German
 
|
Year of birth:
 
1965
 
Sabine
 
Keller-Busse
 
was
 
appointed
 
President
 
Personal
 
&
 
Corporate
Banking
 
and
 
President
 
UBS
 
Switzerland
 
in
 
2021,
 
heading the
 
leading
universal bank
 
in Switzerland.
 
In her
 
previous role
 
as Group
 
COO, she
oversaw
 
global
 
functions
 
such
 
as
 
technology,
 
operations,
 
human
resources and corporate
 
services. She
 
has been pivotal in
 
driving business
alignment, and digital and cultural transformation, while
 
also facilitating
business growth
 
as
 
President UBS
 
Europe, Middle
 
East and
 
Africa. Ms.
Keller-Busse also
 
brings in-depth
 
experience regarding financial
 
market
infrastructure, having served
 
on the Board of SIX
 
Group for nine years.
 
 
Professional experience
Feb. 2021 – date
President Personal &
 
Corporate Banking
 
and
 
President UBS Switzerland,
 
UBS Group AG
Feb. 2021 – date
President of the Executive
 
Board, UBS Switzerland
 
AG
2019 – 2021
President UBS Europe,
 
Middle East and Africa,
 
UBS
2018 – 2021
Group COO of UBS
 
and President of the
 
Executive
Board, UBS Business
 
Solutions AG
2016 – 2021
Member of the Executive
 
Board of UBS AG
 
2014 – 2017
Group Head Human
 
Resources, UBS
2010 – 2014
COO UBS Switzerland,
 
UBS
 
Education
–
 
Master’s degree, economic
 
sciences,
 
University of St. Gallen
–
 
Ph.D., economic sciences
 
(Dr. oec.), University of St.
 
Gallen
 
Listed company
 
boards
–
 
Member of the Board
 
of Zurich Insurance
 
Group
 
Other activities and
 
functions
–
 
Member of the Foundation
 
Council of the UBS
 
International Center
 
of Economics in
 
Society
–
 
Member of the Board
 
and Board Committee
 
of Zurich Chamber
 
of Commerce
–
 
Member of the Board
 
of the University
 
Hospital Zurich
 
Foundation
–
 
Member of the Board
 
of Trustees of the Swiss Entrepreneurs
Foundation
 
 
Iqbal Khan
 
President Global Wealth
 
Management and
 
President UBS Europe,
 
Middle East and
 
Africa,
 
member of the GEB
since 2019
 
Nationality:
 
Swiss |
Year of birth:
 
1976
 
Iqbal Khan has
 
been President
 
Global Wealth Management
 
since October
2022 and
 
President UBS
 
Europe, Middle East
 
and Africa
 
since February
2021.
 
From
 
2019
 
until
 
September 2022,
 
he
 
was
 
Co-President Global
Wealth Management. Mr. Khan
 
joined Ernst & Young
 
in 2001, holding
many leadership
 
positions
 
and becoming
 
the youngest-ever
 
partner
 
of the
firm’s Swiss
 
arm; when
 
leaving
 
Ernst &
 
Young, he
 
was lead
 
auditor of
 
UBS.
In 2013, he
 
moved to Credit
 
Suisse, holding
 
senior leadership
 
positions as
CFO Private Banking & Wealth Management and later CEO International
Wealth Management.
 
Professional experience
Oct. 2022 – date
President Global Wealth
 
Management,
 
UBS Group AG
and UBS AG
Feb. 2021 – date
President UBS Europe,
 
Middle East and Africa,
 
UBS
Group AG and UBS AG
2019 – Sept. 2022
Co-President Global
 
Wealth Management,
 
UBS
2015 – 2019
CEO International
 
Wealth Management,
 
Credit Suisse
2013 – 2015
CFO Private Banking &
 
Wealth Management,
 
Credit Suisse
2011 – 2013
Managing Partner Assurance
 
and Advisory
 
Services –
Financial Services,
 
Ernst & Young
2009 – 2011
Industry Lead Partner
 
Banking and Capital
 
Markets,
Switzerland and EMEA
 
Private Banking,
 
Ernst & Young
2001 – 2009
Various positions in Ernst
 
& Young
 
Education
–
 
Swiss Certified Public
 
Accountant
–
 
Advanced Master of
 
International Business
 
Law degree (LL.M.),
University of Zurich
 
Other activities and
 
functions
–
 
Member of the Supervisory
 
Board of UBS
 
Europe SE
–
 
Member of the Board
 
of UBS Optimus
 
Foundation
–
 
Member of the Board
 
of Room to Read
 
Switzerland
 
 
 
dev_UBS_AR_2022p222i1.jpgdev_UBS_AR_2022p222i0.jpg
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Corporate
 
governance
 
194
 
 
 
Edmund Koh
 
President UBS Asia
 
Pacific, member
 
of the GEB since
 
2019
 
 
Nationality:
 
Singaporean |
Year of birth:
 
1960
 
Edmund Koh
 
has
 
been President
 
UBS
 
Asia Pacific
 
since
 
2019. He
 
is a
financial sector
 
veteran,
 
with more
 
than 30
 
years in
 
senior
 
roles in
 
financial
services,
 
including as
 
Head Wealth
 
Management Asia
 
Pacific,
 
Country
Head Singapore
 
and Head
 
Wealth Management
 
South-East Asia
 
and Asia
Pacific Hub for UBS. Before working for DBS
 
Bank in Singapore, Mr. Koh
was CEO for
 
Prudential Assurance
 
and Alverdine
 
Pte Ltd, both companies
based in Singapore.
 
He joined UBS from
 
Taiwan-based Ta
 
Chong Bank,
where he served as
 
President and Director.
 
Professional experience
2019 – date
President UBS Asia Pacific,
 
UBS Group AG
 
and UBS AG
2016 – 2018
Head Wealth Management
 
Asia Pacific, UBS
2012 – 2018
Country Head Singapore,
 
UBS
2012 – 2015
Head Wealth Management
 
South-East Asia and
 
Asia Pacific Hub, UBS
2008 – 2012
President and Director, Ta Chong Bank, Taiwan
2001 – 2008
Managing Director and Regional Head,
 
Consumer Banking
Group, DBS Bank, Singapore
 
Education
–
 
Bachelor’s degree, psychology, University
 
of Toronto
 
Non-listed company
 
boards
–
 
Member of the Board
 
of Trustees of the Wealth Management
Institute, Singapore
–
 
Member of the Board
 
of Next50 Limited,
 
Singapore
–
 
Member of the Board
 
of Medico Suites
 
(S) Pte Ltd
–
 
Member of the Board
 
of Curbside Pte
 
Ltd
 
Other activities and
 
functions
–
 
Member of a sub-committee
 
of the Singapore Ministry
 
of Finance’s Committee
 
on the Future Economy
–
 
Member of the Financial
 
Centre Advisory
 
Panel of the Monetary
Authority of Singapore
–
 
Council member of
 
the Asian Bureau of
 
Finance and Economic
Research
–
 
Trustee of the Cultural Matching
 
Fund, Singapore
–
 
Member of University
 
of Toronto’s International Leadership
 
Council for Asia
 
 
Barbara Levi
 
Group General Counsel,
 
member of the GEB
 
since 2021
 
 
Nationality:
 
Italian |
Year of birth:
 
1971
 
Barbara Levi has
 
been Group General Counsel since November 2021. A
qualified attorney-at-law,
 
she has been
 
admitted to
 
the Supreme
 
Court of
the United
 
States, the New
 
York State bar
 
and the bar
 
of Milan, Italy, and
has worked in several law firms
 
in New York
 
and Milan. Ms. Levi began
her corporate career with Novartis Group in 2004 and
 
worked there for
16
 
years, holding
 
a number
 
of senior
 
legal roles
 
across Europe.
 
Before
joining UBS,
 
she served
 
as
 
Chief Legal Officer
 
& External
 
Affairs at
 
Rio
Tinto Group and, before
 
that, as General Counsel.
 
In both roles, she was
a member of that
 
company’s executive
 
committee.
 
Professional experience
Nov. 2021 – date
Group General Counsel,
 
UBS Group AG, and
 
General
Counsel, UBS AG
2021
Chief Legal Officer &
 
External Affairs,
 
Rio Tinto Group
2020 – 2021
Group General Counsel,
 
Rio Tinto
 
Group
2019
Group Legal Head,
 
M&A and Strategic
 
Transactions,
Novartis
2016
–
2019
Global General Counsel,
 
Sandoz International
 
GmbH,
Novartis
2014 – 2016
Global Legal Head,
 
Product Strategy &
Commercialization,
 
Novartis
2013 – 2014
Global Legal Head,
 
TechOps, Primary Care and
Established Medicines,
 
Novartis
2009 – 2013
Head of Legal & Compliance,
 
Region Asia-Pacific,
Middle East, and African
 
Countries, Region
 
Group
Emerging Markets, Novartis
 
Education
–
 
Law degree, University
 
of Milan
–
 
Master of Laws (LL.M.),
 
banking, corporate
 
and finance law, Fordham
University School of
 
Law, New York
 
Other activities and
 
functions
–
 
Member of the Employers’
 
Board of the Global
 
Institute for Women’s
Leadership, King’s
 
College London
–
 
Member of the Board
 
of Directors of the
 
European General Counsel
Association
–
 
Member of the Legal
 
Committee of
 
the Swiss-American Chamber
 
of
Commerce
 
 
 
dev_UBS_AR_2022p223i1.jpgdev_UBS_AR_2022p223i0.jpg
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Cor
porate
 
governance
 
195
 
 
 
Markus Ronner
 
Group Chief Compliance
 
and Governance
 
Officer,
 
member of the GEB
 
since 2018
 
Nationality:
 
Swiss |
Year of birth:
 
1965
 
Markus
 
Ronner
 
has
 
been
 
Group
 
Chief
 
Compliance
 
and
 
Governance
Officer since
 
2018.
 
He has
 
been with
 
UBS
 
for more than
 
40 years
 
and held
various positions across the
 
firm, including manager of
 
the Group-wide
too-big-to-fail program, COO Wealth Management & Swiss Bank,
 
Head
Products and Services of Wealth Management & Swiss Bank, COO Asset
Management, and Head Group Internal
 
Audit. In his current position, he
is responsible at the Group level for the control of all non-financial risks,
governmental
 
and
 
regulatory
 
affairs,
 
as
 
well
 
as
 
investigations
 
and
governance
 
matters.
 
Since
 
2022,
 
he
 
also
 
serves
 
as
 
Chairman
 
of
UBS Switzerland AG,
 
the leading Swiss
 
universal bank.
 
Professional experience
2018 – date
Group Chief Compliance
 
and Governance
 
Officer,
 
UBS
Group AG, and Chief Compliance
 
and Governance
 
Officer
UBS AG
2012 – 2018
Head Group Regulatory
 
and Governance,
 
UBS
2011
–
2013
Manager Group-wide
 
too-big-to-fail
 
program, UBS
2010 – 2011
COO Wealth Management
 
& Swiss Bank,
 
UBS
2009 – 2010
Head Products and
 
Services of Wealth Management
 
&
Swiss Bank, UBS
2007 – 2009
COO Asset Management,
 
UBS
2001 – 2007
Head Group Internal
 
Audit, UBS
 
 
Education
–
 
Swiss Banking Diploma
 
Other activities and
 
functions
–
 
Chairman of the Board
 
of Directors of UBS Switzerland
 
AG
 
 
 
Sarah Youngwood
 
Group Chief Financial
 
Officer, member of the
 
GEB since March
2022
 
Nationality:
 
American (US) and
 
French |
Year of birth:
 
1974
 
Sarah Youngwood became Group CFO
 
in May 2022. Before
 
joining UBS,
Ms. Youngwood was CFO for JPMorgan Chase Consumer
 
& Community
Banking, CFO for
 
Firmwide Technology and CFO
 
for Diversity & Inclusion.
She
 
set
 
up
 
the
 
data
 
and
 
reporting
 
infrastructure for
 
that
 
company’s
USD 30bn racial
 
equity commitments. Previously,
 
Ms. Youngwood
 
was
Head of Investor Relations
 
and worked in the Financial
 
Institutions Group
within JPMorgan’s investment bank in Paris, London and New York. She
brings in-depth
 
finance
 
expertise to
 
the table
 
and has
 
a strong
 
track
 
record
of
 
adding
 
long-term
 
value,
 
and
 
leading
 
agile
 
and
 
data-driven
transformations.
 
 
Professional experience
May 2022 – date
Group CFO, UBS Group
 
AG, and CFO,
 
UBS AG
2020 – 2022
CFO, Consumer &
 
Community Banking
 
and Diversity &
Inclusion, incl. Global
 
Technology, JPMorgan Chase
2016 – 2020
CFO, Consumer &
 
Community Banking,
 
JPMorgan Chase
2012 – 2016
Head of Investor Relations,
 
JPMorgan Chase
1997 – 2012
Investment Bank,
 
Financial Institutions
 
Group, JPMorgan
Chase, Paris, London
 
and New York,
 
including
Managing Director
 
– Head of Mortgage
 
Coverage
activities
 
 
Education
–
 
Master’s degree, Business
 
and Finance,
 
ESCP Business School,
 
Paris
 
Other activities and
 
functions
–
 
Member of the Board
 
of UBS Business
 
Solutions AG
–
 
Advisory Board Member
 
– Wall Street Women’s Alliance
 
 
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Cor
porate
 
governance
 
196
 
Change of control and defense measures
Our
 
Articles
 
of
 
Association
 
(the AoA)
 
do not
 
provide
 
any measures
 
for
 
delaying,
 
deferring
 
or
 
preventing
 
a change
 
of
control.
 
Duty to make an
 
offer
Pursuant
 
to the
 
Swiss Federal Act on Financial
 
Market Infrastructures
 
and Market Conduct
 
in Securities and Derivatives
Trading
 
of 19 June 2015
 
,
 
an investor
 
who
 
has acquired
 
(whether
 
directly,
 
indirectly
 
or
 
in concert
 
with
 
third
 
parties)
more
 
than 33
1
⁄
3
% of all
 
voting
 
rights
 
of a company
 
listed
 
in Switzerland,
 
whether
 
such
 
rights
 
are exercisable
 
or not,
is required
 
to submit
 
a takeover
 
offer
 
for all
 
listed
 
shares
 
outstanding.
 
We have
 
not elected
 
to change
 
or opt
 
out of
this
 
rule.
Clauses on change of control
Neither
 
the
 
terms
 
regulating
 
the
 
Board
 
members’
 
mandate
 
nor
 
any
 
employment
 
contracts
 
with
 
GEB
 
members
 
or
employees holding key functions within
 
the Group contain change
 
of control clauses.
All
 
employment
 
contracts
 
with
 
GEB
 
members
 
stipulate
 
a
 
notice
 
period
 
of
 
six months.
 
During
 
the notice
 
period,
 
GEB
members are
 
entitled to
 
their salaries
 
and
 
the continuation
 
of existing
 
employment benefits
 
and
 
may be
 
eligible to
 
be
considered for a discretionary performance
 
award based on their contribution
 
during their tenure.
In case
 
of a
 
change
 
of control,
 
we may,
 
at our
 
discretion,
 
accelerate the
 
vesting
 
of and
 
/ or
 
relax applicable
 
forfeiture
provisions of employees’ awards.
 
›
 
Refer to the
 
section of this
 
report for more information
 
 
Auditors
 
Audit is
 
an integral part
 
of corporate governance.
 
While safeguarding
 
their independence,
 
the external auditors
 
closely
coordinate
 
their
 
work
 
with
 
Group
 
Internal Audit
 
(GIA).
 
The
 
Audit
 
Committee
 
and,
 
ultimately,
 
the
 
BoD
 
supervise
 
the
effectiveness of audit work.
›
 
Refer to
 
in this section for
 
more information
 
about the Audit
 
Committee
External independent
 
auditors
The
 
2022
 
AGM
 
re-elected Ernst
 
&
 
Young
 
Ltd
 
(EY) as
 
auditors
 
for
 
the Group
 
for the
 
2022
 
financial year.
 
EY
 
assumes
virtually all
 
auditing functions
 
according
 
to laws,
 
regulatory requests
 
and the
 
AoA. Bob
 
Jacob is the
 
EY lead
 
partner in
charge of
 
the overall
 
coordination
 
of the
 
UBS
 
Group financial
 
and
 
regulatory audits
 
and
 
the co-signing
 
partner of
 
the
financial audit. In 2020, Maurice McCormick became
 
the lead audit partner for the financial statement
 
audit and has an
incumbency limit of five years. In 2021,
 
Hannes Smit became the Lead Auditor to the Swiss Financial Market Supervisory
Authority (FINMA) with an incumbency limit of seven years. Daniel
 
Martin has been the co-signing partner for the FINMA
audit since 2019, with
 
an incumbency limit of seven years.
 
During 2022, the Audit Committee held
 
12
 
meetings with the external auditors.
Review of UBS Group
 
AG and UBS AG audit engagement
 
EU rules require UBS
 
Europe SE to rotate its external auditors
 
in the 2024 financial year.
 
In connection with this required
change, and in consideration of
 
governance best practices,
 
the BoD
 
considered whether it
 
would propose to shareholders
a
 
rotation
 
of
 
the
 
Group
 
auditor
 
concurrent
 
with
 
the
 
change
 
at
 
UBS
 
Europe
 
SE.
 
Under
 
the
 
direction
 
of
 
the
 
Audit
Committee, UBS conducted a formal review of
 
the Group audit engagement including soliciting proposals from potential
auditors.
 
In early
 
2022,
 
based on
 
the results
 
of this
 
assessment, the
 
BoD
 
decided
 
to retain
 
EY as
 
the Group’s
 
external
auditors.
Audit effectiveness assessment
The Audit
 
Committee assesses the
 
performance, effectiveness
 
and independence
 
of the external auditors
 
on an
 
annual
basis. The assessment is generally
 
based on interviews with
 
senior management
 
and survey feedback
 
from stakeholders
across the Group. Assessment criteria include quality of service delivery, quality and competence of the audit team, value
added
 
as
 
part
 
of
 
the
 
audit,
 
insightfulness,
 
and
 
the
 
overall
 
relationship
 
with
 
EY.
 
Based
 
on
 
its
 
own
 
analysis
 
and
 
the
assessment results,
 
including feedback
 
received as
 
part of the
 
review of the
 
Group audit
 
engagement described
 
above,
the Audit Committee concluded
 
that EY’s audit has been effective.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Cor
porate
 
governance
 
197
 
Fees paid to external independent
 
auditors
UBS
 
Group AG
 
and its
 
subsidiaries
 
(including
 
UBS
 
AG) paid
 
the following
 
fees
 
(including
 
expenses)
 
to their
 
external
 
independent
auditors.
For the year ended
USD m
31.12.22
31.12.21
Audit
Global audit fees
 
49
 
53
Additional services classified as audit (services required
 
by law or statute, including work
 
of a non-recurring nature mandated by
 
regulators)
 
7
 
8
Total audit
1
 
56
 
61
Non-audit
Audit-related fees
 
11
 
9
of which: assurance and attestation services
 
6
 
4
of which: control and performance reports
 
5
 
5
of which: consultation concerning
 
financial accounting and reporting standards
 
0
 
0
Tax fees
 
2
 
1
All other fees
 
1
 
0
Total non-audit
1
 
14
 
10
1 Total audit and
 
non-audit fees amounted
 
to USD 70m for
 
UBS Group AG consolidated
 
as of 31 December
 
2022 (31 December
 
2021: USD 72m),
 
of which USD 46m related
 
to UBS AG
 
consolidated (31
 
December
2021: USD 43m).
 
Special auditors for potential capital increases
At the AGM on
 
8 April 2021, BDO AG was
 
reappointed as special auditors
 
for a three-year
 
term of office. Special auditors
provide audit opinions
 
in connection with potential capital increases
 
independently from other
 
auditors.
Services performed and fees
The Audit
 
Committee oversees all
 
services provided
 
to UBS
 
by the external auditors.
 
For services requiring
 
the approval
from
 
the
 
Audit
 
Committee,
 
a
 
preapproval
 
may
 
be
 
granted
 
either
 
for
 
a
 
specific
 
mandate
 
or
 
in
 
the
 
form of
 
a
 
blanket
preapproval authorizing
 
a limited and
 
well-defined type and
 
scope
 
of services. The
 
fees (including
 
expenses) paid
 
to EY
are set forth in the table above.
 
In addition, EY received USD 35.2m in 2022 (USD 34.1m in 2021) for services performed
on behalf of our investment funds,
 
many of which have independent
 
fund boards or trustees.
Audit
 
work includes
 
all services
 
necessary to
 
perform
 
the audit
 
for the
 
Group
 
in accordance
 
with applicable
 
laws
 
and
generally
 
accepted
 
auditing
 
standards,
 
as
 
well
 
as
 
other
 
assurance
 
services
 
that
 
conventionally
 
only
 
the
 
auditor
 
can
provide. These include statutory and
 
regulatory audits, attestation
 
services and the review of documents to
 
be filed with
regulatory
 
bodies.
 
The additional
 
services classified
 
as
 
audit
 
in
 
2022
 
included
 
several engagements
 
for
 
which
 
EY
 
was
mandated at the request of FINMA.
Audit-related
 
work
 
consists
 
of
 
assurance
 
and
 
related
 
services
 
traditionally
 
performed
 
by
 
auditors,
 
such
 
as
 
attestation
services related to financial reporting, internal control
 
reviews and performance standard reviews, as well as consultation
concerning financial accounting
 
and reporting standards.
Tax
 
work
 
involves
 
services
 
performed
 
by
 
professional
 
staff
 
in
 
EY’s
 
tax
 
division
 
and
 
includes
 
tax
 
compliance
 
and
 
tax
consultation with respect to our own
 
affairs.
“Other” services are permitted services,
 
which
 
include technical IT security control
 
reviews and assessments.
Group Internal Audit
GIA performs the internal auditing
 
role for the
 
Group. It is an independent
 
function that provides expertise
 
and insights
to confirm
 
controls
 
are
 
functioning
 
correctly and
 
highlight
 
where
 
UBS
 
needs
 
to better
 
manage
 
current
 
and
 
emerging
risks. In 2022, it operated with an
 
average headcount of 58
 
5
 
full-time equivalent employees.
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Cor
porate
 
governance
 
198
 
GIA supports the
 
BoD in discharging
 
its governance
 
responsibilities by
 
taking a dynamic
 
approach to audit, issue
 
assurance
and risk assessment, drawing
 
attention to key risks in order to
 
drive action to prevent unexpected loss
 
or damage to the
firm’s
 
reputation.
 
To
 
support
 
the
 
achievement
 
of
 
UBS’s
 
objectives,
 
GIA
 
independently,
 
objectively
 
and
 
systematically
assesses the:
(i)
 
soundness of the Group’s
 
risk and control culture;
 
(ii)
 
reliability and integrity of financial and
 
operational information, including whether
 
activities are properly,
 
accurately
and completely recorded,
 
and the quality of underlying da
 
ta and models; and
(iii)
 
design, operating effectiveness
 
and sustainability of:
–
 
processes to define strategy and risk appetite,
 
as well as the overall adherence to
 
the approved
 
strategy;
–
 
governance processes;
 
–
 
risk management, including whether
 
risks are appropriately identified and
 
managed;
 
–
 
internal controls, specifically whether they
 
are commensurate with the risks taken;
–
 
remediation activities; and
–
 
processes
 
to
 
comply
 
with
 
legal
 
and
 
regulatory
 
requirements,
 
internal
 
policies,
 
and
 
the
 
Group’s
 
constitutional
documents and contracts.
 
Audit reports that include significant issues are provided to
 
the Group CEO, relevant GEB members and other responsible
management. The
 
Chairman, the
 
Audit Committee
 
and the
 
Risk Committee
 
of the
 
BoD are
 
regularly informed
 
of such
issues.
 
In
 
addition,
 
GIA
 
provides
 
independent
 
assurance
 
on
 
the
 
effective and
 
sustainable
 
remediation
 
of
 
control
 
deficiencies
within its mandate,
 
taking a prudent
 
and conservative risk-based
 
approach and assessing
 
at the issue
 
level whether the
root cause and the potential exposure
 
for the firm have been holistically and
 
sustainably addressed.
 
GIA also cooperates
closely with risk control functions
 
and internal and external legal advisors
 
on investigations into major control issues.
To ensure
 
GIA’s independence
 
from management,
 
the Head
 
GIA reports
 
to the Chairman
 
of the BoD
 
and to
 
the Audit
Committee,
 
which
 
assesses
 
annually
 
whether
 
GIA
 
has
 
sufficient
 
resources
 
to
 
perform
 
its
 
function,
 
as
 
well
 
as
 
its
independence and performance. In the
 
Audit Committee’s assessment, GIA is sufficiently
 
resourced to fulfill its mandate
and complete
 
its auditing objectives.
 
GIA’s role, position,
 
responsibilities and accountability
 
are set out
 
in our
 
Organization
Regulations
 
and
 
the Charter
 
for GIA,
 
available at
ubs.com/governance.
The Charter
 
also applies
 
to UBS
 
AG’s internal
audit function.
 
GIA has
 
unrestricted
 
access to
 
all accounts,
 
books,
 
records, systems,
 
property and
 
personnel, and
 
must
be provided
 
with all
 
information
 
and
 
data that
 
it needs
 
to fulfill
 
its auditing
 
responsibilities.
 
GIA also
 
conducts
 
special
audits at the request of the
 
Audit Committee, or other BoD members,
 
committees or the Group CEO in
 
consultation with
the Audit Committee.
 
GIA enhances the efficiency of its work
 
through coordination
 
and close cooperation with the external auditors.
 
 
Information policy
 
We provide regular information
 
to our shareholders
 
and to the wider financial community.
Financial reports for UBS Group
 
AG are expected to be
 
published on the following dates:
First quarter 2023
25 April 2023
Second quarter 2023
25 July 2023
Third quarter 2023
24 October 2023
The annual general meetings
 
of the shareholders of UBS Group AG
 
will take place on the
 
following dates:
 
2023
5 April 2023
2024
11 April 2024
 
›
 
Refer to the corporate
 
calendar available
 
at
ubs.com/investors
 
for the dates of
 
the publication
 
of financial reports
 
and other key
dates, including the
 
dates of the publication
 
of UBS AG’s financial
 
reports
 
We meet with institutional investors worldwide throughout
 
the year and regularly hold results presentations, attend
 
and
present
 
at investor
 
conferences,
 
and,
 
from
 
time
 
to time,
 
host
 
investor
 
days. When
 
appropriate,
 
investor
 
meetings
 
are
hosted by senior
 
management and are
 
attended by members
 
of our Investor
 
Relations team. We use
 
various technologies,
such as webcasting, audio links
 
and cross-location videoconferencing,
 
to widen our audience and maintain contact with
shareholders globally.
 
 
 
 
Annual Report 2022 |
Corporate
 
governance
 
and
 
compensation
 
|
 
Cor
porate
 
governance
 
199
 
We make our publications available to all shareholders simultaneously
 
to provide them with equal access to our financial
information.
Our annual and
 
quarterly publications are
 
available in a
 
fully digital and
 
.pdf format at
ubs.com/investors
, under “Financial
information.” Starting with our Annual
 
Report 2022, we no longer provide printed copies of our Annual
 
Report and our
Compensation Report
 
in any language.
›
 
Refer to
ubs.com/investors
 
for a complete
 
set of published
 
reporting documents
 
and a selection
 
of senior management
 
industry
conference presentations
›
 
Refer to the
 
section of this report
 
for more information
›
 
Refer to
 
of this report
 
for more information
Financial disclosure principles
 
We
 
fully
 
support
 
transparency,
 
and
 
consistent
 
and
 
informative
 
disclosure.
 
We
 
aim
 
to
 
communicate
 
our
 
strategy
 
and
results in
 
a manner that
 
enables stakeholders to gain
 
a good understanding of
 
how our
 
Group operates, what our
 
growth
prospects
 
are, and the
 
risks that our businesses
 
and our strategy entail.
 
We assess feedback
 
from analysts and
 
investors
on a regular basis and, where appropriate, reflect this in our disclosures. To
 
continue achieving these goals, we apply the
following principles in our financial reporting
 
and disclosure:
–
 
transparency
 
that enhances the understanding
 
of economic drivers and builds trust and
 
credibility;
–
 
consistency
 
within each reporting
 
period and between
 
reporting periods;
–
 
simplicity
 
that allows readers to gain
 
a good understanding of
 
the performance of our businesses;
–
 
relevance,
by
 
focusing
 
not
 
only
 
on
 
what
 
is
 
required
 
by
 
regulation
 
or
 
statute
 
but
 
also
 
on
 
what
 
is
 
relevant
 
to
 
our
stakeholders; and
 
–
 
best practice
 
that leads to improved standards.
 
We regard the continuous
 
improvement of our disclosures
 
as an ongoing commitment.
Financial reporting policies
 
We
 
report
 
our
 
Group’s
 
results
 
for
 
each
 
financial
 
quarter,
 
including
 
a
 
breakdown
 
of
 
results
 
by
 
business
 
division
 
and
disclosures
 
or key
 
developments relating
 
to risk
 
management and
 
control,
 
capital, liquidity
 
and
 
funding management.
Each quarter,
 
we publish quarterly financial reports
 
for UBS Group AG,
 
on the same day as the earnings releases.
The
 
consolidated
 
financial
 
statements
 
of
 
UBS
 
Group
 
AG
 
and
 
UBS
 
AG
 
are
 
prepared
 
in
 
accordance
 
with
 
International
Financial Reporting Standards as
 
issued by the International Accounting
 
Standards Board.
 
›
 
Refer to
 
in the
 
section of this
 
report for
more information about
 
the basis of accounting
We are committed to maintaining
 
the transparency of our reported results and
 
to allowing analysts and investors
 
to make
meaningful comparisons
 
with prior periods.
 
If there
 
is a
 
major reorganization
 
of our
 
business divisions
 
or if
 
changes to
accounting standards or interpretations lead to a material change in the Group’s reported results, our results are restated
for previous
 
periods
 
as required
 
by applicable
 
accounting
 
standards.
 
These restatements
 
show
 
how
 
our results
 
would
have been reported on
 
the new basis and provide clear explanations of all relevant
 
changes.
US disclosure requirements
As a foreign private issuer,
 
we must file reports and
 
other information, including
 
certain financial reports, with the US
Securities and Exchange Commission
 
(the SEC) under the US
 
federal securities laws.
 
An evaluation
 
of the effectiveness
 
of our
 
disclosure controls
 
and procedures
 
(as defined in
 
Rule 13a–15e)
 
under the US
Securities Exchange Act of 1934
 
has been carried out, under the supervision of
 
management, including the Group CEO,
the Group
 
CFO and
 
the Group Controller
 
and Chief
 
Accounting Officer.
 
Based on
 
that evaluation, the
 
Group CEO
 
and
the
 
Group
 
CFO
 
concluded
 
that
 
our
 
disclosure
 
controls
 
and
 
procedures
 
were
 
effective as
 
of
 
31 December
 
2022.
 
No
significant
 
changes
 
have
 
been
 
made
 
to
 
our
 
internal
 
controls
 
or
 
to
 
other
 
factors
 
that
 
could
 
significantly
 
affect
 
these
controls subsequent
 
to the date of their evaluation.
›
 
Refer to the
 
section of this report
 
for more information
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
200
 
Compensation
 
 
 
Table of contents
201
204
206
207
214
222
229
232
 
 
 
 
 
 
 
dev_UBS_AR_2022p229i0.jpg
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
201
 
Compensation
Julie G. Richardson
Chairperson of the
Compensation Committee
of the Board of Directors
 
Dear Shareholders,
The
 
Board
 
of
 
Directors
 
(the
 
BoD)
 
and
 
I
 
wish to
 
thank
 
you
 
for
 
your
 
support
 
once
 
again
 
at
 
last year’s
 
Annual
 
General
Meeting (the AGM) and
 
for sharing your views on our compensation
 
practices over the past year.
 
Throughout 2022, the BoD Compensation Committee continued to oversee the compensation process, aiming to ensure
that reward reflects performance,
 
that risk-taking is appropriate
 
and that employees’
 
interests are aligned with
 
those of
our stakeholders. As
 
the Chairperson of
 
the Compensation Committee,
 
I am pleased to
 
present our Compensation Report
for 2022.
 
As part of our ongoing engagement with shareholders during 2022, we received positive
 
feedback on our compensation
framework.
 
We
 
believe
 
it
 
is
 
well
 
suited
 
to
 
support
 
our
 
ambitions
 
for
 
the
 
Group
 
and
 
provides
 
strong
 
alignment
 
with
shareholders.
 
Its robustness
 
supports pay-for-performance through
 
varying business cycles and
 
incentivizes both
 
annual
and longer-term performance.
 
In addition
 
to other
 
measures taken
 
in light of
 
the increasing competition
 
for talent, our
compensation framework further reinforces
 
the attractiveness of UBS
 
for key talent.
 
Supporting our clients and executing
 
in a challenging environment
The macroeconomic and
 
geopolitical environment has
 
become increasingly
 
complex. Our clients
 
remain focused on
 
key
issues,
 
such as potential persistently high inflation,
 
elevated energy prices, the war in
 
Ukraine and residual effects
 
of the
pandemic. The related impact has been far-reaching, affecting asset levels, market volatility, rates and investor sentiment
across the
 
globe. Our highly
 
accretive, capital-light
 
business model
 
and disciplined risk management
 
position us
 
well to
face the challenges of the current
 
macroeconomic environment.
Sustainable finance
 
is crucial
 
when it
 
comes to helping
 
our clients
 
achieve their
 
diverse sustainability objectives. Leveraging
the deep expertise of our experienced teams, we work hard to service
 
our clients’ diverse sustainable financing, investing
and/or advisory needs in the
 
best way possible. In
 
2022, we expanded our sustainable
 
investment offering with additional
alternative
 
and
 
tailored-investment
 
solutions
 
and
 
progressed
 
a
 
number
 
of
 
important
 
investment
 
product
 
initiatives
relevant to a broad spectrum of clients across
 
our business areas.
›
 
Refer to
 
“Financial
 
and operating
 
performance”
 
in our
 
Annual Report
 
2022 for
 
further
 
details
 
about our
 
Group and
 
business division
performance
 
 
How does UBS respond to the increasing
 
competition for talent?
–
 
We
 
continue
 
to
 
see
 
heightened
 
competition
 
for
 
talent.
 
These
 
pressures
 
come
 
from
 
our
 
competitors
 
but
 
also
organizations in other industries,
 
including technology,
 
consulting and new entrants, such
 
as fintech firms.
 
–
 
We continue to be successful in hiring the talent we need to grow our businesses
 
,
 
who are increasingly interested
in operating
 
digitally,
 
and they
 
value diverse experiences,
 
which requires
 
flexibility and
 
agility.
 
That’s one
 
reason
why we
 
support
 
hybrid working
 
arrangements where
 
possible
 
as these
 
benefit
 
current
 
employees and
 
improve
client service while attracting a wider range
 
of candidates and making us
 
a stronger,
 
more dynamic company.
–
 
Agility drives simplification;
 
we are committed
 
to making it even easier
 
for our clients to do
 
business with us and
for our employees
 
to work
 
at UBS.
 
As of
 
year-end 2022,
 
approximately 18,500
 
employees across
 
the firm
 
were
working in agile teams.
 
–
 
In 2022,
 
we further
 
expanded
 
our employee
 
health and
 
well-being
 
offering.
 
This included
 
a suite
 
of programs,
benefits and workplace resources,
 
along with a bespoke
 
eLearning curriculum, that aimed to help our
 
employees
manage
 
their
 
health,
 
foster
 
well
-
being
,
 
strengthen
their
 
resilience
 
and
support
the
 
sustainability
 
of
 
the
organization.
–
 
Ultimately,
 
we
 
strongly
 
reflect
 
pay-for-performance
 
in
 
our
 
compensation
 
decision-making,
 
and
 
additionally
consider carefully inflation
 
levels and our competitive market position.
›
 
Refer to
ubs.com/global/en/our-firm/our-employees
 
for more information
 
about our workforce
 
 
 
 
dev_UBS_AR_2022p230i0.gif
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
202
 
GEB hiring and succession planning
Succession planning
 
is a pivotal activity
 
for the Bo
 
D. We are convinced
 
that a Group Executive Board
 
(GEB) with diverse
backgrounds
 
and experiences is
 
critical to
 
our continued
 
success. We have
 
a successful
 
track record
 
of filling
 
GEB roles
with
 
highly
 
qualified,
 
diverse
 
candidates
 
from
 
within
 
the
 
Group
 
and,
 
in
 
selected cases,
 
from
 
the
 
outside.
 
In
 
order
 
to
attract external
 
top
 
talent,
 
market
 
practice
 
dictates
 
that
 
we
 
consider
 
replacing
 
the forfeited
 
compensation
 
from
 
their
prior employer.
 
In selected
 
situations and
 
with careful
 
consideration,
 
we replace
 
the lost
 
compensation of
 
senior hires.
Awards for
 
new GEB members
 
are subject to
 
independent review
 
to support the
 
like-for-like nature of the
 
replacement
and confirm that these awards do not represent sign-on payments (i.e., there are no “golden hellos”). In 2022, we made
two external GEB hires and in
 
this report we disclose their replacement awards
 
.
Financial performance
We delivered good
 
results in 2022
 
,
 
with USD 9.6bn profit before
 
tax and 17.0%
 
RoCET1 in a challenging environment,
achieving
 
our
 
Group
 
returns
 
and
 
efficiency
 
targets
 
on
 
a
 
reported
 
and
 
underlying
 
basis.
 
This
 
result
 
was
 
supported
 
by
strong momentum with our clients,
 
who turned to us for advice,
 
resulting in USD 60bn of net new fee-generating assets.
We also demonstrated continued
 
cost discipline despite
 
the backdrop of
 
rising inflation,
 
resulting in a cost-income
 
ratio
of 72.1%. We are well positioned to
 
continue executing our growth strategy and delivering strong capital returns, while
weathering the challenges of the current
 
macroeconomic environment. We enter 2023 in a position of strength and with
a CET1 capital ratio of 14.2%, enabling us to fund growth and deliver attractive and sustainable returns to shareholders.
Commitment
 
to return capital to shareholders
We remain
 
committed
 
to returning
 
excess capital
 
to our
 
shareholders.
 
We repurchased
 
USD 5.6bn
 
of shares
 
in 2022.
Looking ahead, we intend to continue repurchasing shares and accruing for
 
a progressive dividend. The BoD is proposing
a dividend
 
of USD 0.55 per
 
share for
 
2022 (which represents
 
an increase of
 
10% compared
 
with the previous
 
year) for
approval at the AGM in 2023.
 
 
2022 performance award pool
 
and salaries
The performance award pool
 
continues to reflect our strict pay-
 
for-performance philosophy,
 
our disciplined approach in
managing
 
compensation over
 
business
 
cycles and
 
our alignment
 
to shareholder
 
interests.
 
Reflecting
 
our overall
 
results
while also
 
considering
 
our underlying
 
results,
 
the 2022
 
performance award
 
pool
 
was
 
USD 3.3bn,
 
a decrease
 
of
 
10%
compared with 2021.
In addition, the pool
 
also reflects our achievements relative to non
 
-financial objectives, such
 
as our reconfirmed position
among the leading firms when
 
it comes to their approach to sustainability.
 
It also takes into account
 
risk considerations,
as
 
well
 
as
 
the
 
competitive
 
total shareholder
 
return
 
(TSR)
 
of
 
UBS
 
shares
 
versus
 
our
 
core
 
peers.
 
It also
 
considers
 
other
factors, such
 
as the
 
continuing competition
 
to attract
 
and retain
 
a talented
 
and diverse
 
workforce that
 
delivers on
 
our
purpose and strategy.
 
 
dev_UBS_AR_2022p231i0.jpg
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
203
 
While
 
the
 
2022
 
GEB
 
pool
 
percentage
 
change
 
appears
 
more
 
favorable
 
than
 
the
 
overall
 
Group
 
pool,
 
this
 
year’s
 
GEB
comparison is
 
impacted by
 
the significant
 
reduction made
 
in 2021
 
to reflect the loss
 
resulting from
 
the default of
 
a US
client in
 
our prime brokerage
 
business.
 
For 2022,
 
we consider
 
a GEB pool
 
before the
 
impact of the
 
2021
 
loss event to
support competitive
 
pay for competitive
 
performance and
 
not to
 
carry forward the
 
2021
 
impact over multiple
 
years. In
addition,
 
the 2022
 
GEB pool
 
reflects changes
 
in both
 
foreign
 
exchange
 
rates and
 
GEB composition.
 
Adjusted
 
for
 
the
direct impact of
 
the 2021
 
loss event on
 
specific GEB members,
 
the 2022
 
GEB pool is down
 
approximately 5% in
 
Swiss
franc terms or a decrease of 10% in US
 
dollar terms, which is aligned
 
with the Group pool development.
We take
 
note of
 
the
 
increased impact
 
of
 
inflationary pressures
 
on
 
the broad
 
-based employee
 
population.
 
At a
 
Group
level, we have carefully monitored and adjusted compensation levels
 
where appropriate to address increased competition
for talent
 
in
 
certain
 
markets. For
 
the GEB,
 
we continue
 
with
 
the same
 
salary
 
level
 
instituted
 
in 2011
 
and
 
propose
 
no
increase to our GEB fixed compensation
 
budget and salary levels for 2024.
 
Furthermore, we also propose no
 
increase to
the fee levels for the BoD
 
and no change to the
 
maximum aggregate amount for BoD
 
from the 2023 AGM
 
to the 2024
AGM.
Commitment to fair pay
 
and diversity, equity and inclusion
Pay equity and equal opportunity
 
are fundamental to achieving
 
our purpose. We
 
pay for performance, and we take pay
equity
 
seriously.
 
Since
 
2020,
 
we
 
have
 
been
 
certified under
 
the
 
EQUAL-SALARY
 
Foundation
 
standards
 
for our
 
human
resources practices
 
in Switzerland,
 
the US,
 
the UK,
 
the Hong
 
Kong SAR
 
and Singapore,
 
covering more
 
than two-thirds
of our global employee population.
 
Our processes are global and we
 
apply the same standards across
 
all our locations.
 
In
 
2022,
 
we
 
extended
 
our internal
 
fair pay
 
analysis
 
by
 
assessing
 
employees’
 
salaries
 
against
 
local living
 
wages,
 
using
benchmarks defined
 
by the Fair Wage
 
Network. We
 
are committed to
 
fair pay and
 
support all
 
employees being
 
paid at
least a living wage.
In
 
2020,
 
we
 
outlined
 
our
 
intention
 
to
 
increase
 
diversity,
 
especially
 
among
 
management,
 
and
 
we
 
have
 
made
 
steady
progress
 
toward achieving
 
our aspirations.
 
Women now
 
account for more
 
than 40%
 
of our
 
workforce, nearly
 
28% of
our Director-level and above
 
population, and 42% of our
 
GEB members.
The 2023 Annual General
 
Meeting
At the 2023 AGM on
 
5 April, we will seek your support on
 
the following compensation-related items:
–
 
the maximum aggregate amount of compensation
 
for the BoD for the period from the 2023 AGM to the 2024 AGM;
–
 
the maximum aggregate amount of
 
fixed compensation for the GEB
 
for 2024;
–
 
the aggregate amount of
 
variable compensation for the GEB for 2022;
 
and
 
–
 
shareholder endorsement in
 
an advisory vote for this Compensation Report.
 
On behalf
 
of the Compensation
 
Committee and
 
the BoD,
 
I thank you
 
again for
 
your feedback and
 
we respectfully
 
ask
for your continued support
 
at the upcoming AGM.
 
Julie G. Richardson
Chairperson of the Compensation
 
Committee of the
Board of Directors
 
 
 
 
 
 
dev_UBS_AR_2022p232i0.gif
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
204
 
2022 key compensation themes
The
 
feedback
 
we
 
seek
 
from
 
our
 
shareholders
 
about
 
compensation-related
 
topics
 
is
 
very
 
important
 
to
 
us,
 
as
 
we
 
are
committed
 
to
 
maintaining
 
a
 
strong
 
link
 
between
 
the
 
interests
 
of
 
our
 
employees
 
and
 
those
 
of
 
our
 
shareholders.
 
We
continued
 
en
gaging
 
with
 
shareholders
 
during
 
202
2
 
and
 
received
 
overall
positive
 
feedback
about
 
our
compensation framework.
 
The text
 
below summarizes key
 
compensation themes for
 
2022 and provides answers
 
to the
 
questions we most
 
frequently
receive from shareholders.
 
Summary of 2022
 
key compensation themes / responses to frequently
 
asked questions
 
 
 
What progress
 
has been
 
made on
 
resolving the
 
French cross
 
-border matter
 
and how is
 
this reflected
 
in GEB
compensation?
In December 2021,
 
UBS filed
 
an appeal
 
with the
 
French Supreme
 
Court regarding
 
the decision
 
of the Court
 
of Appeal
relating
 
to
 
the
 
French
 
cross-border
 
matter.
 
This
 
matter
 
remains
 
ongoing
 
and
 
was
 
considered
 
in
 
the
 
decision-making
process for our 2021 performance award
 
pool.
The use of the RoCET1 metric aims to ensure the cost of
 
litigation matters, including the French cross-border
 
matter, has
an ongoing and direct impact on the compensation awarded and realized by our most senior leaders, including
 
the GEB.
Additionally,
 
when
 
determining the
 
2019
 
performance award
 
pool,
 
the impact
 
of the
 
French cross
 
-border
 
matter was
considered in our decision making,
 
following the verdict of the Court of First Instance
 
in early 2019.
Furthermore,
 
up to CHF 7.9m,
 
or 30%, of the 2019 LTIP awards at grant for GEB members active in March 2017, as well
as the former Chairman of the BoD’s unvested share
 
award, remains undelivered and continues
 
to be at risk and directly
linked
 
to
 
the
 
final
 
resolution
 
of
 
the
 
French cross
 
-border
 
matter. In
 
addition,
 
a
 
malus clause
 
allows
 
the
 
Compensation
Committee
 
to
 
assess
 
any
 
new
 
information
 
that
 
becomes
 
available
 
in
 
the
 
future
 
and
 
to
 
retrospectively
 
reduce
 
any
undelivered 2019
 
LTIP award by up to the
 
full amount if such new
 
information would have
 
impacted our compensation
decision in 2019. This matter continues to be ongoing and, once resolved, the final outcome will be reflected in the final
amounts delivered to relevant current and
 
former employees.
 
 
 
How does UBS support diversity
 
and pay fairness?
Compensating employees fairly and
 
consistently is key to ensuring equal opportunities.
 
A strong commitment to pay for
performance and pay equity is embedded
 
in our compensation policies.
 
›
 
Refer to “Environmental,
 
Social and Governance
 
considerations”
 
in the “Compensation
 
philosophy and governance”
 
section of
this report for more information
 
about pay fairness
›
 
Refer to the “People
 
and culture make
 
the difference“ section
 
of our Sustainability
 
Report 2022,
 
available under “Annual
reporting” at
ubs.com/investors
, for more information
 
about diversity,
 
equity and inclusion
 
(DE&I)
 
 
 
 
dev_UBS_AR_2022p233i0.gif
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
205
 
How are environmental,
 
social and governance considerations factored into
 
the compensation process?
We maintain
 
our well
 
-established
 
process
 
that considers
 
environmental,
 
social
 
and
 
governance
 
(ESG) objectives
 
in the
compensation determination process in objective setting, performance award pool funding,
 
performance evaluation and
compensation decisions.
 
›
 
Refer to “Environmental,
 
Social and Governance
 
considerations”
 
in the “Compensation
 
philosophy and governance”
 
section of
this report for more information
 
How does UBS promote and
 
support the health and
 
well-being of employees?
Supporting employee health and
 
well-being remained a priority,
 
and we further expanded
 
our offering in 2022.
 
We are
committed
 
to
 
helping
 
employees
 
thrive
 
in
 
their
 
current
 
roles
 
and
 
deliver
 
sustainable
 
performance
 
over
 
time.
 
Regular
“pulse”
 
surveys
 
gauged
 
employees’
 
views
 
on
 
remote
 
work,
 
stress,
 
communication
 
and
 
other
 
aspects.
 
Resources
 
to
support
 
holistic
 
well-being
 
included
 
a
 
suite
 
of
 
programs,
 
benefits
 
and
 
workplace
 
resources,
 
along
 
with
 
a
 
bespoke
eLearning
 
curriculum,
 
that
 
aimed
 
to
 
help
 
our
 
employees
 
manage
 
their
 
health,
 
foster
 
well-being,
 
strengthen
 
their
resilience and support
 
the sustainability of the organization.
 
›
 
Refer to the “People
 
and culture make
 
the difference“ section
 
of our Sustainability
 
Report 2022,
 
available under “Annual
reporting” at
ubs.com/investors
, for more information
 
about DE&I
 
 
What is the achievement
 
level of the Long-Term
 
Incentive Plan granted in
 
2020 for 2019 performance?
 
The
 
deferred
 
portion
 
of
 
the
 
performance
 
award
 
granted
 
in
 
2020
 
(for
 
2019
 
performance)
 
to
 
members
 
of
 
the
 
Group
Executive Board (the GEB)
 
and selected senior management
 
was in part delivered
 
through
 
the Long-Term
 
Incentive Plan
(the LTIP)
 
award. The
 
three-year performance
 
period concluded
 
at the end
 
of 2022, with the
 
2019 LTIP
 
achieving 98%
of the maximum
 
opportunity (of
 
up to
 
100%).
 
We believe
 
alignment of
 
our senior
 
leadership
 
with our
 
shareholders is
important for long
 
-term success. Our
 
LTIP
 
is designed
 
to support alignment
 
of compensation
 
with the execution
 
of our
strategy,
 
financial performance and long
 
-term growth.
 
 
Performance achievement
 
for the 2019 LTIP awarded in 2020
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
206
 
Say-on-pay
 
Say-on-pay votes at
 
the AGM
In line
 
with the
 
revised Swiss Code
 
of Obligations (which
 
to a
 
large extent
 
integrates the Swiss Ordinance
 
against Excessive
Compensation
 
in Listed
 
Stock Corporations,
 
which was
 
enacted as
 
an interim
 
measure),
 
we seek
 
binding
 
shareholder
approval for
 
the aggregate
 
compensation
 
awarded to
 
the Group
 
Executive Board
 
(the GEB)
 
and the
 
Board of
 
Directors
(the BoD). Prospective approval of the
 
fixed compensation of the BoD and GEB
 
provides the firm and its
 
governing bodies
with the certainty
 
needed to
 
operate effectively.
 
Retrospective approval
 
of the GEB’s
 
variable compensation aligns
 
their
compensation with performance and
 
contribution.
The table
 
below
 
outlines
 
our
 
compensation
 
proposals,
 
including
 
supporting
 
rationales,
 
that we
 
plan
 
to submit
 
to
 
the
2023
 
AGM for binding votes, in
 
line with the revised Swiss
 
Code of Obligations and our
 
Articles of
 
Association (the AoA).
These
 
binding
 
votes
 
on
 
compensation
 
and
 
the
 
advisory vote
 
on
 
our
 
compensation
 
report
 
reflect
 
our
 
commitment
 
to
shareholders having their say on
 
pay.
›
 
Refer to “Provisions
 
of the Articles of
 
Association related
 
to compensation”
 
in the “Supplemental
 
information” section
 
of this
report for more information
 
Audited |
 
Approved fixed compensation
At the 2021 AGM, the shareholders approved a maximum
 
aggregate fixed compensation amount of CHF 33.0m for GEB
members for
 
the
 
2022
 
performance year.
 
This
 
budget
 
reflects
 
base
 
salaries,
 
role-based
 
allowances
 
in
 
response
 
to
 
EU
Capital
 
Requirements
 
Directive
 
V,
 
and
 
estimated
 
standard
 
contributions
 
to
 
retirement
 
benefit
 
plans,
as
 
well
 
as
other benefits.
Our
 
expenses
 
related
 
to
 
fixed
 
compensation
 
for
 
our continuing
 
GEB
 
members were
 
within
 
the budget;
 
however,
 
the
amount of fixed compensation,
 
including replacement awards,
 
related to the hiring of Sarah Youngwood as Group Chief
Financial
 
Officer
 
and
 
Naureen
 
Hassan
 
as
 
President
 
UBS
 
Americas,
 
required
 
the
 
use
 
of
 
the
 
supplemental
 
amount
 
as
authorized by article 46 para. 5 of our AoA. A total of CHF 0.1m (of which CHF 0.05m related to Sarah Youngwood
 
and
CHF 0.05m
 
related to Naureen
 
Hassan)
 
was used
 
to fund
 
the authorized
 
excess to
 
the approved
 
aggregate amount
 
of
fixed compensation.
p
 
›
 
Refer to “2022
 
total compensation
 
for the GEB members”
 
in the “Compensation
 
for GEB members”
 
section of this report
 
Compensation-related proposals for
 
binding and advisory
 
votes at the 2023
 
AGM
 
Item
Approved at the 2022
AGM
BoD proposals for the
2023 AGM
Rationale
GEB variable
compensation
Shareholders approved
CHF 79,750,000 for the
2021 financial year
1,2,3
 
(vote “for”: 86%)
The BoD proposes an
aggregate amount of
variable compensation of
CHF 81,100,000 for the
members of the GEB for
the 2022 financial year.
The proposed
 
pool reflects
 
the solid
 
performance
 
of the
 
GEB as
 
demonstrated
 
in
the
 
strength
 
of
 
our
 
share
 
price
 
and
 
the
 
good
 
performance
 
of
 
the
 
Group
 
in
 
a
challenging market
 
environment. For 2022,
 
we consider a
 
GEB pool excluding
 
the
impact
 
of
 
the
 
2021
 
loss
 
event
 
to
 
support
 
competitive
 
pay
 
for
 
competitive
performance
 
and
 
not
 
to
 
carry
 
forward
 
the
 
2021
 
impact
 
over
 
multiple
 
years.
Adjusted for the direct impact of the 2021 loss event on specific GEB members, the
2022
 
GEB pool
 
is down
 
approximately 5%
 
in Swiss
 
franc terms
 
or a
 
decrease of
10% in US dollar terms, which
 
is aligned with the Group pool development
 
.
GEB fixed
compensation
Shareholders approved
CHF 33,000,000 for the
2023 financial year
1,2,3
(vote “for”: 93%)
The BoD proposes a
maximum aggregate
amount of fixed
compensation of
CHF 33,000,000 for the
members of the GEB for
the 2024 financial year.
The proposed
 
amount is unchanged
 
from the previous
 
year,
 
reflecting consistency
in planning
 
over time
 
and unchanged
 
base salaries
 
for the
 
Group CEO
 
and other
GEB
 
members.
 
Besides
 
the
 
base
 
salaries,
 
it
 
also
 
includes
 
role-based
 
allowances,
estimated
 
standard
 
contributions
 
to
 
retirement
 
benefit
 
plans,
 
as
 
well
 
as
 
other
benefits. The
 
proposed amount
 
provides flexibility
 
in light of
 
potential changes
 
of
GEB
 
composition
 
or roles,
 
competitive
 
considerations
 
where
 
potential
 
additional
role-based allowances may
 
be required as well as other factors (e.g.,
 
changes in FX
rates or benefits).
BoD
compensation
Shareholders approved
CHF 13,000,000 for the
period from the 2022
AGM to the 2023 AGM
1,2,4
(vote “for”: 93%)
The BoD proposes a
maximum aggregate
amount of compensation
of CHF 13,000,000 for
 
the
members of the BoD for
the period from the 2023
AGM to the 2024 AGM.
The
 
proposed
 
amount
 
is
 
unchanged
 
compared
 
with
 
the
 
previous
 
period
 
and
includes
 
the
 
total
 
compensation
 
of
 
the
 
Chairman
 
and
 
the
 
newly
 
defined
 
Vice
Chairman
 
role.
 
The
 
compensation
 
for
 
the
 
Chairman
 
is approximately
 
8%
 
lower
compared with the previous Chairman. The fee for the
 
new full-time Vice Chairman
role was
 
absorbed within
 
the existing budget.
 
All BoD fees
 
remain unchanged
 
for
the period 2023 AGM to 2024 AGM.
Advisory vote
on the
Compensation
Report
Shareholders approved
 
the
UBS Group AG
Compensation Report
2021 in an advisory vote
(vote “for”: 86%)
The BoD proposes that
 
the
UBS Group AG
Compensation Report
2022 be ratified in an
advisory vote.
Our Total Reward Principles and compensation framework are fully aligned with our
purpose and support our strategic imperatives. This
 
aims to ensure that the
 
interests
of our employees are aligned
 
with those of our clients and other
 
stakeholders.
1
 
Local currencies are converted
 
into Swiss francs at
 
the 2022 performance
 
award currency exchange
 
rates.
 
2
 
Excludes the portion
 
related to the legally
 
required employer’s
 
social security contributions.
 
3
 
As stated
in “Group Executive Board” in the “Corporate
 
governance” section of our Annual
 
Report 2022, twelve GEB
 
members were in office
 
on 31 December 2022
 
and on 31 December 2021.
 
4
 
Twelve BoD members were
 
in
office on 31 December 2022
 
and on 31 December
 
2021.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
dev_UBS_AR_2022p235i0.gif
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
207
 
Compensation
 
philosophy
 
and governance
 
 
Our compensation philosophy
Total Reward Principles
Our Total Reward Principles provide a strong link to our strategic imperatives and encourage employees to live our
 
strong
and
 
inclusive culture
 
that is
 
grounded
 
in our
 
three keys
 
to success:
 
our Pillars,
 
Principles and
 
Behaviors.
 
These guiding
principles underpin our
 
approach to compensation
 
and define our compensation
 
framework. In 202
 
2, we reviewed our
Total
 
Reward
 
Principles and
 
compensation
 
framework to
 
confirm they
 
are fully
 
aligned
 
with our
 
purpose and
 
support
our strategic
 
imperatives.
 
This aims
 
to ensure
 
that the
 
interests of
 
our employees
 
are aligned
 
with those
 
of our
 
clients
and other stakeholders.
Therefore,
 
our
 
compensation
 
approach
 
supports
 
our
 
capital
 
strength
 
and
 
risk
 
management,
 
and
 
provides
 
for
simplification and efficiency. It encourages
 
employees to focus on client centricity, connectivity and
 
sustainable impact in
everything
 
we
 
do.
 
Moreover,
 
we
 
reward
 
behaviors
 
that
 
help
 
build
 
and
 
protect
 
the
 
firm’s
 
reputation,
 
specifically
Accountability
 
with
 
integrity,
 
Collaboration
 
and
 
Innovation.
 
Compensation
 
for
 
each
 
employee
 
is
 
based
 
on
 
individual,
team, business division and
 
Group performance, within the context of the markets
 
in which we operate.
 
Total Reward Principles
Our
 
Total
 
Reward
 
Principles
 
apply
 
to
 
all
 
employees
 
globally,
 
but
 
vary
 
in
 
certain
 
locations
 
according
 
to
 
local
 
legal
requirements,
 
regulations and
 
practices.
 
The table below provides
 
a summary of our Total
 
Reward Principles.
 
Support our purpose and strategy
Our compensation approach
 
supports the firm’s purpose and strategy,
 
fosters engagement among
employees and aligns their long
 
-term interests with those of clients and stakeholders.
Attract, retain and connect a diverse,
talented workforce
We embrace a culture of
 
diversity, equity and
 
inclusiveness. Pay at UBS is fair,
 
reflects equal treatment and
is competitive. In this way,
 
our investment in a connected workforce
 
supports the sustainability of the
organization.
Apply a pay-for-performance
 
approach to
promote development
 
and our ways of
working
The setting of clear objectives,
 
as well as a thorough evaluation
 
of what was achieved and how it was
achieved, combined with effective
 
communication, promotes
 
clarity, accountability
 
and establishes a
strong link between pay and
 
performance. This approach emphasizes
 
our Behaviors, which are
Accountability with integrity,
 
Collaboration and Innovation.
Reinforce sustainable growth
 
and support
long-term value creation
Compensation is appropriately
 
balanced between fixed and variable elements
 
and delivered over an
adequate period to support
 
our growth ambitions and sustainable
 
performance.
Support risk awareness and
 
appropriate
risk-taking
Our compensation structure encourages
 
employees to have a focus on
 
risk management and behave
consistently with the firm’s
 
risk framework and appetite, thereby anticipating
 
and managing risks
effectively to protect our
 
capital and reputation.
Our Total Reward approach
At
 
UBS,
 
we
 
apply a
 
holistic Total
 
Reward
 
approach,
 
generally
 
consisting
 
of
 
fixed compensation
 
(base
 
salary and
 
role-
based allowances, if applicable), performance awards,
 
pension contributions and benefits. Our Total
 
Reward approach is
structured to support
 
sustainable results and growth
 
ambitions.
For employees whose
 
total compensation
 
exceeds certain levels,
 
performance awards
 
are delivered
 
in a combination
 
of
cash, deferred contingent capital awards
 
and deferred share-based
 
awards.
A substantial portion of performance awards is deferred and vests over a five-year period (or
 
longer for certain regulated
employees).
 
This
 
deferral
 
approach
 
supports
 
alignment
 
of
 
employee
 
and
 
investor
 
interests,
 
our
 
capital
 
base
 
and
 
the
creation of sustainable shareholder
 
value.
›
 
Refer to “Compensation
 
elements for all
 
employees” in
 
the “Group compensation”
 
section of this
 
report for more information
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
208
 
Compensation governance
Board of Directors and Compensation Committee
The BoD is ultimately
 
responsible for approving the compensation strategy and principles proposed by the Compensation
Committee, which determines compensation
 
-related matters in line with
 
the principles set forth in the A
 
oA.
As determined in the AoA
 
and the firm’s
 
Organization Regulations, the Compensation Committee supports the BoD with
its
 
duties
 
to
 
set
 
guidelines
 
on
 
compensation
 
and
 
benefits,
 
to
 
oversee
 
implementation
 
thereof,
 
to
 
approve
 
certain
compensation
 
and
 
to
 
scrutinize
 
executive
 
performance.
 
The
 
Compensation
 
Committee consist
 
s
 
of
 
independent
 
BoD
members,
 
who are elected annually by shareholders
 
at the AGM, and is responsible for governance and oversight of our
compensation process
 
and practices. This
 
includes the
 
alignment between
 
pay and performance, and
 
ensuring that
 
the
compensation
 
framework supports
 
appropriate
 
risk awareness
 
and management,
 
as well
 
as appropriate
 
risk-taking.
 
In
2022,
 
to
 
additionally
 
support
 
the
 
connection
 
between
 
the
 
Compensation
 
Committee
 
and
 
the
 
Risk
 
Committee,
 
the
Compensation Committee Chairperson
 
was also a member of the Risk
 
Committee.
Annually, and on behalf of
 
the BoD, the Compensation
 
Committee:
–
 
reviews our Total Reward Principles;
–
 
approves key
 
features of the
 
compensation framework and
 
plans for
 
the non-independent
 
Board members and
 
GEB
members;
–
 
reviews performance
 
award
 
funding throughout
 
the year
 
and proposes,
 
upon proposal
 
of the
 
Group CEO,
 
the final
annual Group performance award pool
 
to the BoD for approval;
–
 
upon proposal of the Gro
 
up CEO, reviews the performance framework for
 
the other GEB members;
–
 
upon proposal
 
of the Group
 
CEO, proposes
 
the performance assessments
 
and the
 
individual total
 
compensation for
the other GEB members for approval
 
by the BoD;
–
 
upon proposal of the Chairman,
 
for the Group CEO, proposes the financial
 
and non-financial performance targets and
objectives,
 
the performance assessment and the
 
total compensation for approval
 
by the Board;
–
 
approves the total compensation for the
 
Chairman and the non
 
-independent Board
 
members;
–
 
upon
 
proposal
 
of
 
the
 
Chairman,
 
proposes
 
the
 
remuneration
 
/
 
fee
 
framework
 
for
 
independent
 
Board
 
members for
approval by the Board;
 
–
 
upon proposal of the Chairman and Group CEO, approves the remuneration / fee frameworks for external supervisory
board members of
 
Significant Group Entities and is
 
informed of remuneration /
 
fee frameworks for external
 
supervisory
board members of Significant Regional
 
Entities;
–
 
proposes to
 
the BoD for
 
approval the annual
 
compensation report
 
and approves other
 
material public
 
disclosures on
UBS compensation matters;
 
and
–
 
proposes
 
to the
 
BoD,
 
for approval
 
by the
 
AGM,
 
the maximum
 
aggregate
 
amounts
 
of BoD
 
compensation
 
and
 
GEB
fixed compensation and
 
the aggregate amount of variable compensation
 
for the GEB.
The Compensation
 
Committee is required
 
to meet
 
at least
 
four times
 
each year.
 
All meetings
 
in 2022
 
were held
 
in the
presence of
 
the Chairman
 
and the
 
Group CEO
 
and most
 
were attended
 
by external
 
advisors. Individuals,
 
including
 
the
Chairman
 
and
 
the
 
Group
 
CEO,
 
are
 
not
 
permitted
 
to
 
attend
 
a
 
meeting
 
or
 
participate
 
in
 
a
 
discussion
 
on
 
their
 
own
performance and compensation.
After
 
the
 
meetings,
 
the
 
Chairperson
 
of
 
the
 
Compensation
 
Committee
 
reports
 
to
 
the
 
BoD
 
on
 
the
 
Compensation
Committee’s activities
 
and discussions
 
and, if
 
necessary, submits
 
proposals
 
for approval by
 
the full BoD.
 
Compensation
Committee meeting minutes are also
 
sent to all members of the BoD.
On 3
 
1
 
December 2022,
 
the members
 
of the
 
Compensation
 
Committee were
 
Julie G.
 
Richardson
 
(Chairperson),
 
Dieter
Wemmer and Jeanette Wong.
›
 
Refer to “Board of
 
Directors” in the “Corporate
 
governance”
 
section of our
 
Annual Report 2022
 
for more information
External advisors
The Compensation Committee may retain external
 
advisors to
 
support it in fulfilling
 
its duties. In 2022, HCM International
Ltd.
 
(HCM)
 
provided
independent
 
advice
 
on
 
compensation
 
matters.
 
HCM
 
holds
 
no
 
other
 
mandates
 
with
 
UBS.
Additionally,
 
Willis Towers
 
Watson provided
 
the Compensation
 
Committee with
 
data
 
on market trends
 
and pay
 
levels.
Various subsidiaries of Willis Towers Watson provide similar information to UBS’s human resources department
 
in relation
to compensation for employees.
 
Willis Towers
 
Watson holds
 
no other compensation-related mandates with
 
UBS.
The Risk Committee’s
 
role in compensation
The Risk Committee,
 
a committee of the BoD,
 
works closely with the
 
Compensation Committee with the goal
 
of ensuring
that our compensation framework appropriately reflects risk awareness and management,
 
and supports appropriate risk-
taking.
 
It supervises and sets appropriate risk management and risk control principles and is regularly briefed on how risk
is factored into the
 
compensation process.
 
It also monitors
 
the involvement of Group
 
Risk Control and
 
Compliance and
Operational Risk in compensation and
 
reviews risk-related
 
aspects of the compensation
 
process.
›
 
Refer to
ubs.com/governance
 
for more information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
209
 
Compensation Committee
 
2022
 
/ 2023
 
key activities and timeline
April
July
Sept
Oct
Nov
Dec¹
Jan
Feb
Strategy, policy and governance
Total Reward Principles
l
Sustainability / ESG in the compensation process
l
l
l
Compensation disclosure and stakeholder communication
 
matters
l
l
l
AGM reward-related items
l
l
Compensation Committee governance
l
Annual compensation review
Accruals and full-year forecast of the performance award
 
pool funding
l
l
l
l
Performance targets and performance assessment
 
of the Group
 
CEO and GEB members
l
l
l
Group CEO and GEB members’ salaries and individual performance
 
awards
l
l
l
Update on market practice,
 
trends and peer group matters
l
l
l
l
Pay for performance, including governance
 
on certain higher-paid employees,
 
and
non-standard compensation arrangements
l
l
l
l
l
l
l
Board of Directors remuneration
l
Compensation framework
Compensation framework and deferred compensation
 
matters
l
l
l
l
Risk and regulatory
Risk management in the compensation approach and joint meeting
 
with
 
BoD Risk Committee
l
l
l
l
Regulatory activities impacting employees and engagement
 
with regulators
l
l
l
l
1
The Compensation Committee
 
held two meetings in December
 
2022.
 
 
 
Compensation governance
 
The table below provides
 
an overview of compensation governance
 
by specific role.
 
 
Recipients
Compensation recommendations
 
proposed by
Approved by
Chairman of the BoD and Vice
Chairman of the BoD
Compensation Committee
Compensation Committee
1
Other BoD members
Compensation Committee and Chairman
 
of the BoD
BoD
1
Group CEO
Compensation Committee and Chairman
 
of the BoD
BoD
1
Other GEB members
Compensation Committee and Group
 
CEO
BoD
1
Key Risk Takers
 
(KRTs)
 
/
 
senior employees
Respective GEB member and functional
 
management
team
Individual compensation
 
for KRTs and
 
senior employees:
Group CEO
 
1
 
Aggregate variable compensation and
 
maximum aggregate
 
amount of fixed compensation
 
for the GEB,
 
as well as maximum aggregate
 
remuneration for
 
the BoD,
 
are subject to shareholder
 
approval.
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
210
 
Environmental, Social and Governance
 
considerations
 
Environmental, social and governance
 
in the compensation determination
 
process
Environmental,
 
social
 
and
 
governance
 
(ESG)
 
objectives
 
are
 
considered
 
in
 
the
 
compensation
 
determination
 
process
 
in
objective setting,
 
performance award
 
pool funding, performance
 
evaluation and compensation
 
decisions.
ESG-related
 
objectives have
 
been
 
embedded
 
in our
 
Pillars and
 
Principles since
 
they were
 
established
 
in 2011.
 
In 2021,
we introduced explicit sustainability objectives
 
in the non-financial goal category
 
of the Group CEO and
 
GEB scorecards.
These sustainability objectives
 
are linked
 
to our
 
priorities,
 
and their
 
progress
 
is measured
 
via robust quantitative
 
metrics
and
 
qualitative criteria.
 
The table
 
below provides
 
an overview
 
of our
 
metrics and
 
progress
 
achieved in
 
2022,
 
including
climate-related goals under the priority “Planet.” Sustainability objectives are individually assessed for each GEB member,
and consequently directly impact
 
their performance assessments
 
and compensation decisions
 
.
In addition,
 
in the
 
performance award
 
pool
 
funding across
 
the Group,
 
ESG is
 
also reflected
 
through
 
an assessment
 
of
progress made against
 
targets linked to our
 
focus areas of Planet,
 
People (including progress
 
made against our diversity
ambitions)
 
and
 
Partnerships,
 
alongside
 
other
 
key
 
dimensions.
 
Therefore,
 
ESG
 
is
 
taken
 
into
 
consideration
 
when
 
the
Compensation Committee assesses not
 
only what results were achieved
 
but also how they were achieved.
For 2022,
 
we established robust and concrete targets, and
 
made good progress toward achieving them. We
 
continue to
increase our focus on this topic.
›
 
Refer to “GEB performance
 
assessments”
 
in the “Compensation
 
for GEB members”
 
section of this
 
report for more information
about the GEB performance
 
measurement
 
process
›
 
Refer to “Our focus
 
on sustainability
 
and climate,”
 
“Employees”
 
and “Society” in
 
the “How we create
 
value for our
 
stakeholders”
section of our
 
Annual Report 2022
 
for more information
›
 
Refer to
ubs.com/gri
 
for more information
 
about ESG-related
 
topics
Paying our people fairly
 
and equitably
Pay equity
 
and
 
equal opportunity
 
are fundamental
 
to achieving
 
our purpose.
 
To
 
connect for
 
a better
 
world,
 
providing
equal support to
 
all our
 
employees,
 
with their diverse
 
experiences, perspectives and backgrounds,
 
is critical
 
to our
 
success.
Factors such as gender,
 
race, ethnicity, part
 
-time status or a recent leave of absence
 
should not impact opportunities.
Fair and consistent pay
 
practices are designed to ensure that employees
 
are appropriately rewarded for their
 
contribution.
We
 
pay
 
for
 
performance,
 
and
 
we
 
take
 
pay
 
equity
 
seriously.
 
We’ve
 
embedded
 
clear
 
commitments
 
in
 
our
 
global
compensation policies
 
and practices,
 
and we
 
regularly conduct
 
internal reviews and
 
external audits as
 
quality checks.
 
If
we find
 
any gaps
 
not explained
 
by business
 
or by appropri
 
ate employee
 
factors such
 
as role,
 
responsibility, experience,
performance or location, we
 
look at the root causes and address
 
them.
Since 2020,
 
we have been
 
certified under the
 
EQUAL-SALARY Foundation
 
standards for
 
our human
 
resources practices
in Switzerland, the
 
US, the
 
UK, the Hong Kong SAR
 
and Singapore,
 
covering more
 
than two-thirds of
 
our global employee
population.
 
Our
 
global
 
human
 
resources
 
policies
 
and
 
standards,
 
including
 
reward,
 
performance
 
management
 
and
promotion,
 
from hiring
 
through retirement,
 
are reviewed annually
 
to further
 
improve our
 
approach and
 
processes. Our
processes are global and we
 
apply the same standards across
 
all our locations.
 
The firm also
 
successfully completed
 
an equal
 
pay analysis in
 
Switzerland in
 
2020,
 
as required
 
by the Swiss
 
Federal Act
on
 
Gender Equality.
 
The results
 
of the
 
analysis
 
confirmed
 
that we
 
are
 
fully compliant
 
with Swiss
 
equal
 
pay standards.
These holistic
 
certifications are
 
a testament
 
to our
 
well-established
 
equal opportunity
 
environment and
 
the strength
 
of
our human resources practices, including
 
performance and reward.
 
In
 
2022,
 
we
 
extended
 
our internal
 
fair pay
 
analysis
 
by
 
assessing
 
employees’
 
salaries
 
against
 
local living
 
wages,
 
using
benchmarks defined by the Fair Wage Network.
 
Excluding our US
 
Financial Advisor population
 
and their related support
population
 
(as
 
their
 
compensation
 
is
 
primarily
 
based
 
on
 
a
 
formulaic
 
approach),
 
our analysis
 
showed
 
that
 
employees’
salaries
 
were at or above the respective
 
benchmarks, and the few outliers
 
have all been
 
addressed. UBS is committed to
fair pay and supports all employees being
 
paid at least a living wage.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
dev_UBS_AR_2022p76i1.gifdev_UBS_AR_2022p76i0.gifdev_UBS_AR_2022p76i2.gif
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
211
 
Our aspirational goals and
 
progress
Our priorities
Our aspirational goals
Our progress in 2022
Planet, people,
partnerships
USD 400bn invested assets in sustainable
 
investments
by 2025.
Increased invested assets
 
in sustainable investments to
USD 268bn (compared
 
with USD 251bn in 2021).
Planet
Decarbonization targets for 2030
 
for financing of the
real estate, fossil fuels, power generation
 
and cement
sectors (from 2020 levels):
–
 
reduce emissions intensity of
 
UBS’s residential real
estate lending portfolio by 42%;
 
–
 
reduce emissions intensity of
 
UBS’s commercial real
estate lending portfolio by 44%;
 
–
 
reduce absolute financed emissions
 
associated with
UBS loans to fossil fuel compani
 
es by 71%;
–
 
reduce emissions intensity associated
 
with UBS
loans to power generation
 
companies by 49%; and
–
 
reduce emissions intensity associated
 
with UBS loans
to cement companies by 15%.
Calculated progress against
 
pathways for the real estate (commercial
 
and
residential), fossil fuel and
 
power generation sectors:
1
 
–
 
reduced emissions intensity of
 
UBS’s residential real estate lending
portfolio by 8% (end of 2021
 
vs 2020 baseline);
 
–
 
reduced
 
emissions intensity of UBS’s commercial
 
real estate lending
portfolio by 7% (end of
 
2021 vs 2020 baseline);
–
 
reduced absolute financed emissions associated
 
with UBS loans to fossil
fuel companies by 42% (end of 2021
 
vs 2020 baseline); and
–
 
reduced emissions intensity associated
 
with UBS loans to power
generation companies by 12%
 
(end of 2021 vs 2020 baseline).
Introduction of an additional decarbonization
 
target for the cement sector,
as well as an estimation of the overall
 
financed emissions.
Align 20% of AuM to be managed
 
in line with net zero
(Asset Management).
2
Achieve net-zero emissions
 
across discretionary client
portfolios by 2050 (Asset Management).
3
Initiated analysis of revisions
 
to fund documentation and investment
management agreements to
 
align with Asset Management’s net
 
-zero-
aligned frameworks.
 
Achieve net-zero energy emissions
 
resulting from our
own operations (scopes 1 and
 
2) by 2025; cut energy
consumption by 15% by 2025
 
(compared with 2020).
Reduced net greenhouse gas
 
(GHG) footprint for scope 1 and 2 emissions
by 13% and energy consumption
 
by 8% (compared with 2021); continued
implementation of the replacement
 
of fossil fuel heating systems and
investing in credible
 
carbon removal projects; achieved 99%
 
renewable
electricity coverage despite
 
challenging market conditions.
Offset historical emissions back
 
to the year 2000 by
sourcing carbon offsets
 
(by year-end 2021) and by
offsetting credit delivery
 
and full retirement in
 
registry
(by year-end 2025).
Continued to follow up on
 
credit delivery and retirement
 
of sourced
portfolio.
Engage with key vendors on
 
aiming for net zero by
2035.
Identified “GHG key vendors” (vendors
 
that collectively account for >50%
of our estimated vendor GHG emissions)
 
and invited the vendors that
accounted for 67% of our annual
 
vendor spend (including all GHG key
vendors) to disclose their environmental
 
performance through CDP’s
Supply Chain Program,
 
with 66% of the invited vendors completing their
disclosures in the CDP platform.
People
30% global female representation
 
at Director level and
above by 2025.
Increased to 27.8% (2021:
 
26.7%) female representation at
 
Director level
and above.
26% of US roles at Director
 
level and above held by
employees from ethnic minorities
 
by 2025.
Increased to 20.4% (2021:
 
20.1%) ethnic minority representation
 
at
Director level and above in
 
the US.
 
26% of UK roles at
 
Director level and above held by
employees from ethnic minorities
 
by 2025.
Increased to 23.0% (2021:
 
21.3%) ethnic minority representation
 
at
Director level and above in
 
the UK.
Raise USD 1bn in donations to
 
our client philanthropy
foundations and funds and reach
 
25 million
beneficiaries
 
by 2025 (cumulative for 2021–2025).
Achieved a UBS Optimus Foundation
 
network donation volume of
USD 274m in 2022, totaling
 
USD 436m since 2021 (both figures
 
include
UBS matching contributions).
Reached 5.9 million beneficiaries.
Support 1.5 million young people
 
and adults to learn
and develop skills through
 
our community impact
activities (2022–2025)
 
.
Reached 370,916 beneficiaries
 
through strategic community impact
activities.
4
Partnerships
Establish UBS as a leading
 
facilitator of discussion,
debate and idea generation.
Co-organized, with the Institute
 
of International Finance, the first
Wolfsberg Forum for Sustainable
 
Finance.
Joined a consortium that is
 
pioneering methods of assessing and
maximizing the GHG reduction
 
potential of energy storage.
Co-founded Carbonplace, a technology
 
platform for the voluntary carbon
market that has the goal of
 
creating a streamlined and transparent market
for our clients.
Drive standards, research
 
and development, and
product development.
Co-led the Taskforce
 
on Nature-related Financial Disclosures’
 
financial-
sector-specific working group.
Collaboration with two Swiss companies
 
that are pioneering innovative
carbon removal technologies.
Joined the Partnership
 
for Carbon Accounting Financials (PCAF).
1
Refer to the “Environment”
 
section of our Sustainability
 
Report 2022, available
 
under “Annual
 
reporting” at
 
ubs.com/investors,
 
for further information.
 
The inherent
 
one-year time
 
lag between the as
 
-of date of our
lending exposure and the
 
as-of date of emissions
 
can be explained
 
by two factors: corporates
 
disclose their emissions in
 
annual reporting
 
only a few mont
 
hs after the end of a f
 
inancial year; and specialized
 
third-party
data providers
 
take up
 
to nine
 
months to collect
 
disclosed data
 
and make
 
it available
 
to data
 
users. Consequently,
 
the baseli
 
nes for
 
our net-zero ambitions
 
are based
 
on year-end
 
2020 lending
 
exposure and
 
2019
emissions data. Our 2021 emissions actuals are based on year-end 2021 lending exposure and 2020 emissions data.
 
2
 
The 20% alignment goal amounted to USD 235bn at the time of Asset Management’s commitment
 
in 2021. By
 
2030, the weighted
 
average carbon
 
intensity of
 
funds is to
 
be 50% below
 
the carbon intensity
 
of the respective
 
2019 benchmark.
 
3
 
The near-
 
and medium-term
 
plans for the
 
achievement
 
of this goal
include our Asset Management
 
business division only.
 
4
 
Our Community Impact program
 
has a strategic focus
 
on education and the development
 
of skills.
 
Cautionary note:
 
We have
 
developed methodologies
 
that we use
 
to set
 
our climate
 
-related targets
 
and identify
 
climate-related
 
risks and which
 
underly the
 
metrics that
 
are disclosed
 
in this
 
report. Standard
 
setting
organizations and regulators continue to provide new or revised
 
guidance and standards, as well
 
as new or enhanced regulatory requirements for climate
 
disclosures. Our disclosed metrics are based
 
upon data available
to us, including
 
estimates and approximations
 
where actual or
 
specific data is not
 
available. We
 
intend to update
 
our disclosures to
 
comply with new
 
guidance and regulatory
 
requirements as they
 
become applicable
to UBS. Such updates may
 
result in revisions to
 
our disclosed metrics, our
 
methodologies and related disclosures,
 
which may be
 
substantial, as well as changes
 
to the metrics we disclose.
›
 
Refer to our Sustainability
 
Report 2022, available
 
under “Annual reporting“
 
at
ubs.com/investor
s, for more information
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
212
 
Build a diverse, equitable
 
and inclusive workplace
Our diversity, equity and inclusion (DE&I)
 
strategy and initiatives focus
 
on a wide range
 
of characteristics including gender,
gender
 
identity, sexual
 
orientation,
 
ethnic diversity,
 
disabilities,
 
age,
 
and
 
veteran status,
 
along
 
the entire
 
employee life
cycle. Our businesses aim to
 
hire individuals with strong potential along with
 
diverse skills, backgrounds and perspectives.
We invest
 
in the
 
development of
 
all employees
 
and give
 
them the
 
visibility and
 
opportunities to
 
realize their
 
potential,
and implement Group
 
-wide divisional and
 
regional initiatives that
 
support their
 
career growth.
 
These efforts collectively
support the progress
 
towards achieving our DE&I aspirational goals.
 
For example, our partnerships
 
with the Investments
and
 
Wealth
 
Institute
 
(the
 
IWI)
 
and
 
Kaplan
 
Financial
 
Education
 
in
 
the
 
US
 
provide
 
scholarships
 
for
 
diverse
 
Wealth
Management professionals
 
at UBS to pursue
 
industry certifications in
 
investment management,
 
private wealth advisory,
retirement management and financial planning
 
.
 
Our leaders and employee networks are
 
essential in our work to build a
sense of belonging and to
 
advance our goals.
We
 
have an ongoing
 
focus on the importance of inclusive
 
leadership skills, ensuring
 
equity in our policies and practices,
and
 
increasing
 
the
 
representation
 
of
 
women
 
and
 
ethnic
 
minority
 
employees.
 
We
 
take
 
a
 
multi-faceted
 
approach
 
that
considers recruitment, development and belonging perspectives. For example, we
 
support flexible working arrangements
that benefit current employees and help us attract
 
a more diverse pool of applicants. We also assess executive candidates
for inclusive leadership competencies.
In
 
2020,
 
we
 
outlined
 
our
 
intention
 
to
 
increase
 
our
 
female
 
and
 
ethnic
 
minority
 
representation,
 
especially
 
among
management, and we have made
 
steady progress toward
 
achieving those aspirations. Women now
 
account for 41% of
our workforce and 27.8%
 
of our Director-level and above population.
 
At the same time,
 
42% of our GEB members
 
are
female. Due to variations
 
in legal requirements
 
and historical progress,
 
we continue to take a
 
country-specific approach
to increasing our
 
representation of ethnic
 
minorities,
 
and we have
 
published aspirations for
 
the US
 
and the UK,
 
specifically.
In 2022, we increased the ethnic minority representation at Director level and above
 
to 20.4% (in the US) and 23.0% (in
the UK).
 
Progress against these aspirations is considered in the
 
determination of the annual performance
 
award pool and included
in the sustainability objectives under
 
“Strategic & Growth” for the GEB,
 
as outlined in the table above.
 
›
 
Refer to the “People
 
and culture make
 
the difference“ section
 
of our Sustainability
 
Report 2022,
 
available under
 
“Annual
reporting” at
ubs.com/investors
, for more information
 
about DE&I
 
 
Performance award pool
 
funding
Our
 
compensation
philosophy
focuses
 
on
 
balancing
performance
 
with
appropriate
 
risk
-
taking
,
retaining
 
talented
employees
 
and
 
shareholder
 
returns.
 
Our
 
overall
 
performance
 
award
 
pool
 
funding
 
percentage
 
decreases
 
as
 
financial
performance increases.
 
In years of
 
strong financial
 
performance,
 
this prevents
 
excessive compensation
 
and results
 
in an
increased proportion of profit before performance awards
 
being available for distribution to shareholders or growing the
Group’s capital. In years where performance declines,
 
the performance award pool will generally decrease; however,
 
the
funding percentage may increase.
Our
 
performance
 
award
 
pool
 
funding
 
framework
 
is
 
based
 
on
 
Group
 
and
 
business
 
division
 
performance,
 
including
achievements against defined performance measures.
 
In assessing performance, we also consider industry peers, market
competitiveness of
 
our results
 
and
 
pay position,
 
as well
 
as progress
 
against our
 
strategic objectives,
 
including
 
returns,
risk
-
weighted
 
assets
 
and
 
cost
 
efficiency
.
The
 
Risk
 
and
 
Compliance
 
functions
 
support
 
our
 
holistic
reflection
 
and
consideration
 
of the
 
financial
 
and
 
non-financial
 
impact (including
 
reputation)
 
of risk
 
matters. We
 
further consider
 
the
firm’s risk profile
 
and culture,
 
the extent
 
to which
 
operational risks
 
and audit
 
issues have
 
been identified
 
and resolved,
and the success of risk reduction initiatives
 
including significant events.
 
The funding for Group Functions is linked
 
to overall Group performance and reflects headcount,
 
workforce location and
demographics.
 
For
 
each
 
functional
area,
 
quantitative
 
and
 
qualitative
assessments
 
evaluate
 
service
 
quality,
 
risk
management and financial achievements.
 
Our decisions
 
regarding
 
the performance award
 
pool also
 
balance consideration
 
of financial
 
performance with
 
a range
of
 
factors,
 
including
 
DE&I
 
and
 
other
 
ESG
 
metrics,
 
the
 
impact
 
of
 
litigation,
 
regulatory
 
costs,
 
the
 
effect
 
of
 
changes
 
in
financial accounting standards,
 
capital returns and relative total shareholder
 
return.
Before making its final proposal
 
to the BoD, the Compensation Committee considers the CEO’s
 
proposals and can apply
a positive or negative adjustment to the performance
 
award pool.
 
›
 
Refer to “2022
 
Group performance
 
outcomes” in
 
the “Group compensation”
 
section of this
 
report
›
 
Refer to the “Group
 
performance” section
 
of our Annual
 
Report 2022 for more
 
information
 
about our results
 
dev_UBS_AR_2022p241i0.gif
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
213
 
 
 
 
 
 
dev_UBS_AR_2022p242i0.gif
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
214
 
Compensation for GEB members
GEB compensation framework
In
 
2022,
 
we
 
made
 
no
 
changes
 
to
 
our
 
GEB
 
compensation
 
framework.
 
The
 
chart
 
below
 
illustrates
 
the
 
compensation
elements, pay
 
mix and
 
key features
 
for GEB
 
members. Of
 
the annual
 
performance award,
 
20%
 
is paid
 
in the
 
form of
cash and
 
80% is deferred over
 
a period
 
of five years,
1
 
with 50%
 
of the annual
 
performance awards
 
granted under
 
the
Long-Term
 
Incentive Plan (the LTIP
 
)
 
and 30% under
 
the Deferred Contingent Capital Plan (the
 
DCCP).
›
 
Refer to “Our deferred
 
compensation plans”
 
in the “Group compensation”
 
section of this
 
report for more information
 
 
›
 
Refer to the “Group
 
Compensation”
 
section of this
 
report for more information
›
 
Refer to “Regulated
 
staff”
 
in the “Supplemental
 
information” section
 
of this report for
 
more information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
215
 
Pay-for-performance safeguards for GEB members
Performance
 
award caps
–
 
Cap on the total GEB performance
 
award pool (2.5% of profit
 
before tax)
1
 
–
 
Caps on individual performance awards
 
(for the Group CEO capped at
 
five times the fixed compensation and at seven times
 
for
 
the other
GEB members)
–
 
Cap of 20% of performance award
 
in cash
Delivery and
 
deferral
–
 
80% of performance awards are
 
at risk of forfeiture
–
 
Long-term deferral over
 
five years (or longer for certain regulated GEB members)
–
 
Alignment with shareholders
 
(through the LTIP) and bondholders (through the
 
DCCP)
–
 
Final payout of equity-based
 
LTIP award (50% of performance award) subject
 
to absolute and relative performance conditions (three-year
performance period)
Contract
terms
–
 
No severance terms
–
 
Notice period between
 
six and twelve months
Other
safeguards
–
 
Share ownership requirements
–
 
No hedging allowed
1
 
The Compensation Committee
 
may consider adjustments
 
to profit for items that are
 
not reflective of underlying
 
performance.
GEB share ownership requirements
To
 
align the interests of GEB
 
members with those of our
 
shareholders and
 
to demonstrate personal commitment
 
to the
firm, we require the Group CEO
 
and the other GEB members to hold a substantial number of UBS shares. GEB members
must reach their minimum shareholding
 
requirements within five years from
 
their appointment and retain it throughout
their tenure.
 
The total number
 
of UBS shares
 
held by a GEB
 
member consists of
 
any vested or unvested
 
shares
 
and any
privately held
 
shares.
 
At the
 
end of
 
2022,
 
all GEB
 
members met
 
their share
 
ownership
 
requirements,
 
except for
 
those
appointed within the last three
 
years,
 
who still have time to build
 
up and meet the required
 
share ownership.
As
 
of
 
31 December
 
2022,
 
our
 
GEB
 
members
 
held
 
shares
 
with
 
an
 
aggregate
 
value
 
of
 
approximately
 
USD 154m,
demonstrating their commitment to
 
our strategy and alignment with
 
shareholders.
 
Share ownership requirements
Group CEO
min. 1,000,000 shares
Must be built up within five years
 
from their appointment and retained throughout
their tenure
Other GEB members
min. 500,000 shares
GEB base salary and role
 
-based allowance
Each GEB member
 
receives a
 
fixed base
 
salary, which is
 
reviewed annually
 
by the Compensation
 
Committee. The
 
2022
annual
 
base
 
salary for
 
the
 
Group
 
CEO
 
role
 
was
 
CHF 2.5m
 
and
 
has
 
remained
 
unchanged
 
since
 
2011.
 
The
 
other
 
GEB
members each received a base salary of CHF
 
1.5m
 
(or local currency equivalent), also
 
unchanged since 2011.
Over the course of 2022, one GEB member
 
held a UK Senior Management Function (SMF)
 
role for one of our UK entities.
In addition to base salary,
 
a role-based allowance was part of
 
the fixed compensation.
At
 
the
 
AGM,
 
shareholders
 
are
 
asked
 
to
 
approve
 
the
 
maximum
 
aggregate
 
amount
 
of
 
fixed
 
compensation
 
for
 
GEB
members for the following financial
 
year.
 
›
 
Refer to the “Supplemental
 
information” section
 
of this report for
 
more information
 
about Material
 
Risk Takers (MRTs)
 
and SMFs
›
 
Refer to the “Say-on-pay”
 
section of this
 
report for more information
 
about
 
the AGM vote
 
on fixed compensation
 
for the GEB
Caps on the GEB performance award
 
pool
The size of the
 
GEB performance award pool may
 
not exceed 2.5% of
 
the Group’s profit before tax.
 
This limits the overall
GEB compensation based on
 
the firm’s profitability.
For 2022,
 
the Group’s profit before tax was USD 9.6bn and the total GEB performance award pool was CHF
 
81.1m. The
GEB performance award pool
 
was 0.9% of Group profit before tax, well below
 
the 2.5% cap.
In
 
line
 
with
 
the
 
individual
 
compensation
 
caps
 
on
 
the
 
proportion
 
of
 
fixed
 
pay
 
to
 
variable
 
pay
 
for
 
all
 
GEB
 
members
(introduced
 
in
 
2013),
 
the
 
Group
 
CEO’s
 
granted
 
performance
 
award
 
is
 
capped
 
at
 
five
 
times
 
his
 
fixed
 
compensation.
Granted performance
 
awards of
 
other GEB members are
 
capped at
 
seven times their fixed
 
compensation (or
 
two times
for GEB
 
members who
 
are also
 
MRTs).
 
For
 
2022,
 
performance awards
 
granted
 
to
 
GEB members
 
and
 
the
 
Group
 
CEO
were,
 
on
 
average,
 
3.5
 
times their
 
fixed compensation
 
(in
 
Swiss
 
franc terms,
 
excluding
 
one-time
 
replacement
 
awards,
benefits and contributions to retirement plans).
›
 
Refer to “Performance
 
award pool funding”
 
in the “Compensation
 
philosophy and governance”
 
section of this report for
 
more
information
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
216
 
GEB employment contracts
GEB members’ employment
 
contracts do not include severance
 
terms or supplementary
 
pension plan contributions
 
and
are
 
subject
 
to
 
a
 
notice
 
period
 
of
 
between
 
six
 
and
 
twelve
 
months.
 
A
 
GEB
 
member
 
leaving
 
UBS
 
before
 
the
 
end
 
of
 
a
performance year
 
may be
 
considered
 
for a
 
performance award.
 
Such awards
 
are subject
 
to approval
 
by the
 
BoD,
 
and
ultimately by the shareholders
 
at the AGM.
Benchmarking for GEB members
When
 
recommending
 
performance
 
awards
 
for
 
the
 
Group
 
CEO
 
and
 
the
 
other
 
GEB
 
members,
 
the
 
Compensation
Committee
 
reviews
 
the
 
respective
 
total
 
compensation
 
for
 
each
 
role
 
against
 
a
 
financial industry
 
peer
 
group.
 
The
 
peer
group
 
is selected based
 
on comparability of their
 
size, business
 
mix, geographic
 
presence and
 
the extent to
 
which they
compete with
 
us for
 
talent. The
 
Compensation
 
Committee considers
 
our peers’
 
strategies, practices
 
and
 
pay levels,
 
as
well
 
as
 
their
 
regulatory
 
environment;
 
it
 
also
 
periodically
 
reviews
 
other
 
firms’
 
pay
 
levels
 
or
 
practices,
 
including
 
both
financial and non-financial sector peers,
 
as applicable. The total compensation for a
 
GEB member’s specific role considers
the compensation
 
paid
 
by our
 
peers for
 
a
 
comparable
 
role and
 
performance within
 
the context
 
of our
 
organizational
profile. The Compensation
 
Committee periodically reviews and
 
approves the peer group
 
composition.
The table below presents the composition of our peer group as approved by the Compensation
 
Committee for the 2022
performance year.
 
Bank of America
Goldman Sachs
Barclays
HSBC
BlackRock
JPMorgan Chase
BNP Paribas
Julius Baer
Citigroup
Morgan Stanley
Credit Suisse
Standard Chartered
Deutsche Bank
State Street
 
 
 
 
dev_UBS_AR_2022p245i0.gif
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
217
 
GEB performance assessments
We
 
assess
 
each
 
GEB
 
member’s
 
performance
 
against
 
a
 
set
 
of
 
Group
 
financial
 
targets,
 
non-financial
 
objectives
 
and
Behaviors. Under the non-financial objectives,
 
we maintained the categories introduced
 
in 2021: Core Job (which covers
job-specific, risk and people objectives)
 
and Strategic & Growth (which covers strategy,
 
digital, and environmental, social
and governance
 
(ESG) objectives). Th
 
is approach
 
fosters an even
 
greater focus
 
on GEB
 
priorities and the
 
success of the
Group overall
 
among all
 
GEB members, and
 
strengthens the
 
understanding and
 
importance of interdependence
 
within
and
 
across the
 
GEB. At
 
the same
 
time, it
 
creates stronger
 
individual accountability,
 
and
 
further increases
 
the focus
 
on
core activities.
The Compensation Committee exercises its judgment with respect to the performance achieved relative to the prior year,
our
 
strategic
 
plan
 
and
 
our
 
competitors,
 
and
 
considers
 
the
 
Group
 
CEO’s
 
proposals.
 
The
 
Compensation
 
Committee’s
proposals are subject to approval
 
by the BoD.
The
 
Compensation
 
Committee, and
 
then
 
the
 
full
 
BoD,
 
follows
 
a
 
similar
 
process
 
for
 
the
 
Group
 
CEO,
 
except
 
that
 
the
proposal comes from the Chairman
 
of the BoD.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
218
 
Overview of performance
 
assessment measures
We
 
apply
 
a
 
range
 
of
 
quantitative
 
measures
 
to
 
assess
 
GEB
 
member
 
performance
 
against
 
financial
 
and
 
non-financial
objectives
 
while
 
Behaviors
 
are
 
assessed
 
qualitatively.
 
The
 
table
 
below
 
provides
 
a
 
summary
 
of
 
the
 
main
 
metrics
 
and
measures used for 202
 
2.
Financial measures
(60%)
–
 
Reported Group profit
 
before tax
–
 
Reported Group cost / income
 
ratio
–
 
Reported Return on CET1 capital
Non-
financial
measures
(30%)
Strategic &
Growth
Strategy
–
 
Progress on
 
Group-wide transformation initiatives
–
 
Delivery on division-
 
/ function-specific strategic programs and initiatives
Digital
–
 
Progress on digital
 
transformation initiatives
–
 
Delivery of digital offering and user
 
experience for clients
ESG
–
 
Refer to the ”Our aspirational
 
goals and progress”
 
table in the ”Environmental, Social and Governance
considerations”
 
section of this report
Core Job
 
Job-specific
–
 
Business-specific criteria,
 
such as net new investable asset targets and client
 
engagement-level objectives
–
 
Operating income growth
 
targets for specific client segments and total cost goals
–
 
Post-stress CET1 objectives and
 
capital ratio guidance
–
 
Execution progress
 
regarding key client and internal initiatives;
 
e.g., cross-divisional collaboration
initiatives, efficiency and
 
cost-saving initiatives
Risk
–
 
Operating within risk appetite
 
constraints
–
 
Progress to delivering on
 
risk reduction initiatives
People
–
 
Employee listening / sentiment
 
results and feedback
–
 
Progress toward meet
 
ing 2025 ambitions
 
for female representation and
 
for ethnic minority
representation in
 
the US and the UK at Director and above levels
 
(as per ESG disclosure)
–
 
People development, mobility,
 
turnover and succession plan metrics
Behaviors
(10%)
Accountability with integrity
Qualitative assessment
against expected
Behaviors:
–
 
Responsible for what they
 
say and do
–
 
Takes
 
ownership and makes things happen
–
 
Steps up and acts when something
 
is not right
Collaboration
–
 
Trusts others
 
and helps them to be successful
–
 
Delivers One UBS, together with
 
their colleagues
–
 
Fosters a diverse, inclusive and equitable
 
work environment
Innovation
–
 
Challenges perspectives and looks at
 
every opportunity to improve
–
 
Actively seeks and provides
 
feedback
–
 
Learns from every success and failure
 
Performance assessment categories
The table below presents
 
the three performance categories for the assessment of the
 
performance against non-financial
objectives
 
related
 
to
 
Core
 
Job,
 
Strategic
 
&
 
Growth
 
and
 
Behaviors.
 
The
 
achievement
 
score
 
represents
 
the
 
maximum
percentage, and the Compens
 
ation Committee may apply downward adjustments.
 
Non-financial measures
Needs focus
Good contribution
Excellent contribution
Achievement score: up
 
to 33%
Achievement score: up
 
to 66%
Achievement score: up
 
to 100%
Behaviors
Needs focus
Expected behavior
Exemplary behavior
Achievement score: up
 
to 33%
Achievement score: up
 
to 66%
Achievement score: up
 
to 100%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
219
 
2022 performance for the Group CEO
The
 
performance
 
award
 
for
 
the
 
Group
 
CEO
 
is
 
based
 
on
 
the
 
achievement
 
of
 
financial
 
performance
 
targets
 
and
 
non-
financial objectives related to Core
 
Job, Strategic & Growth and Behaviors,
 
as described earlier in this section.
These objectives were set to reflect the strategic
 
priorities determined by the Chairman
 
and the BoD.
›
 
Refer to “GEB compensation
 
framework”
 
in this section
 
of this report for more
 
information
Performance assessment for the Group
 
CEO
The
 
BoD
 
recognized
 
that
 
Ralph
 
Hamers
 
successfully led
 
UBS
 
through
 
a
 
challenging
 
year and
 
delivered
 
good
 
financial
results
 
despite
 
significant
 
headwinds
 
due
 
to
 
geopolitical
 
and
 
macroeconomic
 
developments.
 
In
 
this
 
environment,
 
he
focused the firm on maintaining client momentum and the disciplined
 
execution of our strategy across regions to deliver
the benefits of our geographic diversification. Furthermore, the resulting
 
growth enabled us to achieve a performance in
line
 
with
 
our
 
2022
 
targets.
 
In
 
addition,
 
our
 
strong
 
capital
 
position
 
enabled
 
us
 
to
 
return
 
USD 7.3bn
 
of
 
capital
 
to
shareholders for the 2022
 
financial year.
Furthermore, Mr. Hamers effectively
 
led the Group through
 
the challenging and volatile risk environment and
 
continued
to promote
 
an effective
 
risk culture
 
throughout
 
the o
 
rganization. He
 
also kept
 
the firm
 
focused
 
on
 
risk reduction
 
and
operating within our risk appetite.
Additionally,
 
the BoD
 
acknowledged
 
that Mr.
 
Hamers continued
 
to be
 
a strong
 
ambassador for
 
the drive
 
to make
 
our
organization
 
more digital.
 
He continued
 
to increase
 
the Group’s
 
focus on
 
technology as
 
a differentiator
 
for our
 
clients
and employees,
 
achieving important progress
 
on our technology
 
initiatives and agile
 
transformation that
 
benefit clients
and employees.
Mr. Hamers successfully
 
continued to
 
focus the Group
 
on delivering on
 
its diversity, equity and
 
inclusion (DE&I)
 
strategy
and initiatives. Important
 
progress was made
 
in our diversity and
 
ethnicity ambitions
 
and it remains a key
 
area of focus.
He also
 
successfullly managed Group Executive
 
Board (GEB) transitions that
 
rejuvenated
 
the GEB
 
and increased the
 
female
ratio on the GEB to 42%.
Mr.
 
Hamers
 
continued
 
to
 
demonstrate
 
strong
 
leadership
 
and
 
focus
 
on
 
delivering
 
the
 
Group’s
 
sustainability
 
strategy,
including the commitment to net zero. He continued to focus
 
the organization to deliver on the ambitions in the
 
key ESG
focus
 
areas
 
including
 
a
 
reduction
 
of
 
11%
 
in
 
scope
 
1
 
and
 
2
 
emissions
 
year
 
on
 
year,
 
partnering
 
with
 
two
 
pioneering
companies
 
on
 
CO
2
 
removal,
 
supporting
 
clients
 
with
 
USD 268bn
 
invested
 
assets
 
in
 
sustainability-focused
 
and
 
impact
investments. As a result, UBS
 
retained its position amongst
 
the leaders in the field
 
,
 
as evidenced by the ratings
 
from the
most important independent
 
sustainability rating agencies.
The table below illustrates the assessment
 
criteria used to evaluate the
 
achievements of Mr. Hamers in
 
2022.
Financial performance
Weight
Performance measures
2022
targets
2022
 
results
Achieve-
ment
2
Weighted
assess-
ment
2022
 
commentary
20%
Reported Group PBT
USD 9.8bn
USD 9.6bn
97.6%
19.5%
–
 
Profit before
 
tax (PBT) increased to USD 9.6 bn,
slightly below target but up from
 
2021 and the
highest annual result since 2006,
 
reflecting good
profitability in a challenging
 
market.
 
20%
Reported Group C/I ratio
70 to 73%
1
72.1%
100%
3
20.0%
–
 
The cost / income (C/I) ratio
 
was 72.1%, in line with
the 2022 performance target range and
 
an
improvement of 1.5 percentage
 
points compared
with 2021. This demonstrates
 
good cost discipline in
an inflationary environment.
20%
Reported RoCET1
15 to 18%
1
17.0%
100%
20.0%
–
 
Delivered strong
 
capital returns with a return on CET1
capital (RoCET1) of 17.0%, in
 
line with the 2022
performance target range
 
.
1
 
The return on CET1 capital and cost
 
/ income ratio performance targets reflect externally communicated target ranges. The determination of the
 
achievement is based on specific target levels defined
within the indicated target ranges.
 
2
 
Achievement score capped at
 
100%.
 
3
 
For the assessment of the cost /
 
income ratio, each 1% difference between
 
actual and target affects the
 
score by 10%.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
220
 
Performance assessment for the Group
 
CEO (continued)
 
Non-financial performance and
 
Behaviors
Weight
Performance
measures
Achieve-
ment
Weighted
 
assess-
ment
2022
 
commentary
30%
Good
contribution
(66%)
20%
–
 
The evaluation of each non
 
-financial objective considers
quantitative metrics
 
that are
assessed against internal targets /
 
plan.
Core Job
(Job specific,
Risk, People)
Core Job
–
 
Good client momentum in a
 
challenging market environment and maintained
 
strong focus
on managing our costs
–
 
Active capital management to
 
protect our business, enable growth and
 
deliver attractive
returns including executing USD
 
5.6bn in share buybacks
–
 
Operated within risk appetite constraints
–
 
Improved
employee listening / sentiment
 
results across key categories
–
 
Successfully managed effective
 
leadership transitions in GEB
–
 
Continued focus on people diversity
 
,
 
with the
ratio of female leaders increased to 28%
,
on track to meet the 2025 target;
 
stayed on track toward the 2025 ambition
 
for ratios of
UK (23%) and US (20%)
 
employees from
 
ethnic minorities
 
Strategic &
Growth
(Strategy,
 
Digital,
ESG)
Strategic & Growth
–
 
Embedded our purpose into
 
the organization and executed
 
on the strategic imperatives,
including executing across
 
regions and delivering benefits of geographic
 
diversification.
–
 
Focused the Group
 
to deliver
simplification
initiatives,
 
making it easier for our businesses
to deliver for our clients.
–
 
Progressed our technology
 
initiatives and agile transformation
with new launches of
key products such as
 
Key4 in Switzerland, Circle One, and
 
WE.UBS in China and
approximately 18,500 employees
 
operating in an
agile
 
work environment
 
–
 
See
ESG
 
metrics and progress in separate
 
table in this report
10%
Behaviors
(Accountability
with integrity,
Collaboration,
Innovation)
Expected
behavior
(66%)
7%
The assessment of the Behavior
 
objectives is
qualitative
 
and has resulted in the following
summary assessment:
–
 
Mr. Hamers
 
continued to be a
role model
in accountability and empowerment in the
organization. He remained
 
the most important ambassador of
collaboration
 
to deliver the
whole firm to our clients.
–
 
Mr. Hamers
exemplifies innovation
 
in UBS. He continued the successful digitalization
through new ways of working and
continuously promoted innovative thinking
 
and
simplification.
Total
 
weighted assessment
(maximum 100%)
86.5%
 
In
 
addition
 
to
 
the
 
overall
 
2022
 
Group
 
performance
 
and
 
Mr.
 
Hamers’s
 
achievements
 
outlined
 
above,
 
the
 
BoD
 
also
considered other
 
factors, such as
 
the Group’s good
 
profitability, UBS’s performance
 
in context
 
of the underlying
 
results
and
 
the
 
strong
 
relative
 
share
 
price
 
performance.
 
For
 
context,
 
as
 
outlined
 
in
 
our
 
compensation
 
report
 
last
 
year,
Mr. Hamers’s
 
2021
 
performance award
 
was additionally
 
impacted by
 
the significant
 
risk event
 
related to
 
a loss
 
from a
US-based client of
 
our prime brokerage
 
business. The
 
2022 proposal
 
considers a year-on-year change
 
that reflects pay-
for-performance and does not carry forward the 2021
 
impact over multiple years.
The
 
BoD
 
approved
 
the
 
proposal
 
by
 
the
 
Compensation
 
Committee
 
to
 
grant
 
Mr.
 
Hamers
 
a
 
performance
 
award
 
of
CHF 9.7m,
 
resulting
 
in
 
a
 
total
 
compensation
 
for
 
2022
 
of
 
CHF 12.2m
 
(excluding
 
benefits
 
and
 
contributions
 
to
 
his
retirement benefit plan).
Aligned with the
 
GEB compensation framework,
 
the Group CEO’s
 
performance award will
 
be delivered
 
20% (CHF 1.94m)
in cash and the
 
remaining 80%
 
(CHF 7.76m) subject to deferral
 
and forfeiture provisions, as well
 
as meeting performance
conditions over the next five years.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
221
 
2022 total compensation
 
for the GEB members
The 2022
 
GEB performance award
 
pool is
 
CHF 81.1m,
 
which is an
 
increase of 2%
 
in Swiss franc terms
 
and a
 
decrease
of 3% in US dollar terms. Adjusted for the direct impact of the 2021
 
loss event on specific GEB members, the 2022
 
GEB
pool is down
 
approximately 5% in Swiss franc terms or a
 
decrease of 10%
 
in US dollar terms, which
 
is aligned with the
Group pool development. This pool also considers
 
the impact of
 
changes in GEB composition and
 
foreign exchange rates.
This outcome reflects the solid performance of the GEB as demonstrated by the
 
strength of our share price and the good
performance
 
of
 
the
 
Group
 
in
 
a
 
challenging
 
market
 
environment,
 
achieving
 
our
 
returns
 
and
 
efficiency
 
targets
 
on
 
a
reported basis,
 
while also considering our underlying
 
reported results.
At the 2023 AGM, shareholders will vote
 
on the aggregate 2022 total variable compensation for the GEB
 
in Swiss francs.
The tables below provide
 
the awarded compensation
 
for the Group CEO
 
and the GEB members in Swiss
 
francs and, for
reference,
 
the
 
total
 
amounts
 
in
 
US
 
dollars
 
for
 
comparability
 
with
 
financial
 
performance.
 
The
 
individual
 
variable
performance awards for each GEB member
 
will only be confirmed upon
 
shareholder approval at the AGM.
›
 
Refer to “Deferred
 
compensation” in
 
the “Supplemental
 
information” section
 
of this report for
 
more information about
 
the
vesting of outstanding
 
awards for GEB
 
members
›
 
Refer to “Provisions
 
of the Articles of
 
Association related
 
to compensation”
 
in the “Supplemental
 
Information” section
 
of this
report for more information
 
Audited |
 
Total
 
compensation for
 
GEB members
CHF,
 
except where indicated
USD (for reference)
1
For the
year
Base salary
Contribution
to retirement
benefit plans
Benefits
2
Total fixed
compensa-
tion
Cash
3
Performance
award
under LTIP
4
Performance
award
under
DCCP
5
Total
variable
compensa-
tion
Total fixed
and vari-
able com-
pensation
6
Total fixed
compensa-
tion
Total
variable
compensa-
tion
Total fixed
and vari-
able com-
pensation
6
Group CEO Ralph Hamers (Highest
 
Paid Executive excluding replacement
 
awards)
11
2022
2,500,000
242,239
198,378
2,940,617
1,940,000
4,850,000
2,910,000
9,700,000
12,640,617
3,050,684
10,063,071
13,113,755
2021
2,500,000
246,415
251,856
2,998,271
1,700,000
4,250,000
2,550,000
8,500,000
11,498,271
Aggregate of all GEB
 
members (excluding replacement awards)
7,8,9,10,11,12
2022
23,318,410
1,796,872
693,473
25,808,756
16,220,000
40,550,000
24,330,000
81,100,000
106,908,756
26,774,777
84,135,571
110,910,348
2021
24,853,521
2,064,009
1,179,512
28,097,041
15,950,000
39,875,000
23,925,000
79,750,000
107,847,041
1 Swiss franc
 
amounts
 
have been translated
 
into US
 
dollars for
 
reference at
 
the 2022 performance
 
award currency
 
exchange rate
 
of CHF /
 
USD 1.037430.
 
2 All benefits
 
are valued
 
at market
 
price.
 
3 For GEB
members who are also
 
MRTs or S
 
MFs, the cash
 
portion includes blocked
 
shares.
 
4 LTIP
 
awards for performance
 
year 2022 were
 
awarded at a
 
value of 71.45%
 
of maximum
 
which reflects
 
our best estimate
 
of the
fair value of the
 
award. The
 
maximum number
 
of shares is determined
 
by dividing the
 
awarded amount
 
by the estimated
 
fair value of
 
the award at
 
grant, divided
 
by CHF 20.092 or
 
USD 21.790, the average
 
closing
price of UBS shares over the last ten
 
trading days leading up to and
 
including the award
 
date in February.
 
5 The amounts reflect
 
the amount of the notional additional
 
tier 1 (AT1) capital instrument
 
excluding future
notional interest.
 
6 Excludes the portion
 
related to the legally
 
required employer’s
 
social security contributions
 
for 2022
 
and 2021, which
 
are estimated at grant
 
at CHF 4,675,424
 
and CHF 4,997,243,
 
respectively,
of which CHF 841,402
 
and CHF 763,059,
 
respectively, are
 
for the highest
 
-paid GEB member (excluding
 
replacement awards).
 
The legally required
 
employees’ social security
 
contributions are included
 
in the amounts
shown in the table above, as
 
appropriate.
 
7 As stated in “Group Executive
 
Board” in the “Corporate governance”
 
section of our Annual
 
Report 2022, twelve
 
GEB members were in office on 31 December
 
2022 and
31 December 2021.
 
8 Includes compensation paid under employment contracts
 
during notice periods for GEB members who stepped
 
down during the respective years.
 
9 Includes compensation for
 
newly appointed
GEB members for their
 
time in office
 
as GEB members during
 
the respective
 
years.
 
10 Base
 
salary may include
 
role-based allowances
 
in line
 
with market
 
practice in response
 
to regulatory
 
requirements.
 
11 The
2022 total compensation
 
of Sarah Youngwood,
 
Group CFO,
 
including both
 
the one-time
 
replacement awards
 
of her compensation
 
forfeited upon
 
joining UBS
 
as well as
 
her compensation for
 
the 2022 performance
year, amounts to a total of CHF 13,475,863
 
(which makes her the highest
 
paid executive including replacement
 
awards).
 
12 For 2022, the one-time
 
replacement awards
 
of CHF 7,206,683 for Sarah Youngwood
 
and
CHF 65,229 for Naureen
 
Hassan are not included
 
in the above table;
 
including these,
 
the 2022 total
 
aggregate compensation
 
of all GEB members
 
is CHF 114,180,668.
 
For 2021, the
 
one-time replacement
 
award of
CHF 7,081,474 for Barbara Levi
 
is not
 
included in the above
 
table; including this, the
 
2021 total aggregate
 
compensation of all GEB
 
members is CHF 114,928,515.
p
 
 
Total realized compensation for the
 
Group CEO
The realized compensation
 
for the Group CEO
 
reflects the total amount
 
paid out
 
in the year. It includes
 
the base salary,
cash performance award payments,
 
and all deferred performance
 
awards vested in the
 
year. As such, realized pay is
 
the
natural culmination of awards
 
granted and approved by
 
shareholders in previous years.
To illustrate
 
the effect of
 
our long
 
-term deferral approach,
 
which has
 
been in place
 
since 2012,
 
we disclose
 
the annual
realized compensation of Mr.
 
Hamers, including a comparison with his
 
total awarded compensation.
 
Total
 
realized compensation
 
vs awarded
 
compensation for
 
Ralph A.J.G Hamers
CHF
Realized
Awarded
For the year
Base salary
Cash award
2
Performance
award under
equity plans
2
Performance
award under
DCCP
2
Total realized
fixed and variable
 
compensation
Total awarded
fixed and variable
compensation
3,4
2022
 
2,500,000
 
1,700,000
 
0
 
0
 
4,200,000
 
12,200,000
2021
 
2,500,000
 
600,000
 
0
 
0
 
3,100,000
 
11,000,000
2020
1
 
833,333
 
0
 
0
 
0
 
833,333
 
3,833,333
1 Includes compensation for 4 months as Ralph
 
A.J.G. Hamers joined
 
UBS on 1 September 2020.
 
2 Excludes dividend / interest
 
payments.
 
3 Excludes contributions to retirement
 
benefit plans and benefits.
 
Includes
social security contributions
 
paid by Ralph
 
A.J.G.
 
Hamers but
 
excludes the
 
portion related
 
to the
 
legally required
 
social security
 
contributions paid
 
by UBS.
 
4 Excludes
 
the one-time
 
replacement award
 
granted in
2020.
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
222
 
Group compensation
Compensation elements for all employees
All elements
 
of
 
pay are
 
considered
 
when
 
making our
 
compensation
 
decisions.
 
We
 
regularly
 
review
 
our principles
 
and
compensation framework
 
in order
 
to remain competitive
 
and aligned
 
with stakeholders. In
 
2022, we made
 
no material
changes
 
to
 
our
 
overall
 
framework.
 
We
 
will
 
continue
 
to
 
review
 
our
 
approach
 
to
 
salaries
 
and
 
performance
 
awards,
considering market developments, our
 
performance and our commitment to deliver
 
sustainable returns to shareholders.
Base salary and role-based
 
allowance
Employees’ fixed compensation
 
(e.g., base salary)
 
reflects their
 
level of skill, role
 
and experience,
 
as well as local
 
market
practice. Base
 
salaries are
 
usually paid
 
monthly or
 
fortnightly,
 
in line
 
with local
 
market practice.
 
We offer
 
competitive
base salaries that reflect location,
 
function and role. Salary increases generally
 
consider promotions, skill set, performance
and overall responsibility.
In addition to base salary,
 
and as part of fixed
 
compensation, some employees
 
may receive a role
 
-based allowance. This
allowance
 
is
 
a
 
shift
 
in
 
the
 
compensation
 
mix
 
between
 
fixed
 
and
 
variable
 
compensation,
 
not
 
an
 
increase
 
in
 
total
compensation. It
 
reflects the
 
market value
 
of a
 
specific role
 
and is
 
fixed, non
 
-forfeitable compensation.
 
Unlike salary,
 
a
role-based allowance is
 
paid only if
 
the employee is
 
in a
 
specific role. Similar to
 
previous years, 2022
 
role-based allowances
consisted of a cash portion and,
 
where applicable, a blocked UBS share
 
award.
Pensions and benefits
We
 
provide
 
a
 
range
 
of
 
benefit
 
plans,
 
such
 
as
 
retirement
 
benefits
 
and
 
health
 
insurance,
 
aiming
 
to
 
provide
 
financial
protection
 
in case
 
of significant
 
life events,
 
and
 
support our
 
employees’ well-being
 
and
 
diverse needs.
 
Retirement and
other benefits are set in the
 
context of local market practice and
 
regularly reviewed for
 
competitiveness.
 
Pension
 
plan
 
rules
 
in
 
any
 
one
 
location
 
are
 
generally
 
the
 
same
 
for
 
all
 
employees,
 
including
 
GEB
 
members
 
and
 
other
management. There are no
 
enhanced or supplementary pension
 
contributions for the GEB.
 
Performance award
Most of our employees are eligible
 
for an annual performance award.
 
The level of this award, where applicable, generally
depends
 
on
 
the
 
firm’s
 
overall
 
performance,
 
the
 
employee’s
 
business
 
division,
 
team
 
and
 
individual
 
performance,
 
and
behavior,
 
reflecting
 
their
 
overall
 
contribution
 
to
 
the
 
firm’s
 
results.
 
These
 
awards
 
are
 
in
 
line
 
with
 
applicable
 
local
employment conditions and
 
at the discretion of the firm.
In
 
addition
 
to
 
the
 
firm’s
 
Pillars
 
and
 
Principles,
 
Behaviors
 
related
 
to
 
Accountability
 
with
 
integrity,
 
Collaboration
 
and
Innovation
 
are part
 
of the
 
performance
 
management
 
approach.
 
Therefore,
 
when
 
assessing performance,
 
we
 
consider
not only what was achieved but
 
also how it was achieved.
Our deferred compensation plans
Underlining
 
our emphasis
 
on
 
sustainable
 
performance
 
and
 
risk management
 
,
 
and
 
our
 
focus on
 
achieving our
 
growth
ambitions,
 
we deliver
 
part of
 
our employees’
 
annual variable
 
compensation
 
through deferred
 
compensation plans
 
.
 
We
believe that
 
our approach,
 
with a
 
single incentive
 
decision and
 
a mandatory
 
deferral,
 
is transparent
 
and well
 
suited to
implementing
 
our
 
compensation
 
philosophy
 
and
 
delivering
 
sustainable
 
performance.
 
This
 
aligns
 
the
 
interests
 
of
 
our
employees and shareholders
 
and appropriately links compensation
 
to longer-term sustainable
 
performance.
 
Our
mandatory
deferral
 
approach
 
applie
s
to
 
all
 
employees
 
with
 
regulatory
-
driven
 
deferral
 
requirements
 
or
 
total
compensation
 
greater
 
than
 
USD
 
/ CHF
 
300,000.
 
Certain
 
regulated
 
employees,
 
such as
 
Senior Management
 
Functions
(SMFs) and Material Risk Takers
 
(MRTs),
 
are subject to additional requirements (e.g., more stringent deferral requirements
and additional blocking
 
periods). In addition, SMFs
 
and MRTs receive
 
50% of their cash
 
portion in the
 
form of
 
immediately
vested shares, which are blocked
 
for 12 months after grant.
 
The deferred
 
amount increases
 
at higher
 
marginal rates
 
in line
 
with the
 
value of the
 
performance award.
 
The effective
deferral rate therefore depends
 
on the amount of the performance award and
 
the amount of total compensation.
We believe
 
our deferral
 
regime
 
has one
 
of
 
the longest
 
vesting
 
periods
 
in the
 
industry.
 
The weighted
 
average
 
deferral
period
 
for non
 
-regulated employees
 
is 4.4
 
years for
 
GEB members
 
and
 
is 3.5
 
years for employees
 
outside
 
of the
 
GEB.
Additionally, from
 
time to
 
time,
 
we may
 
utilize alternative
 
deferred compensation
 
arrangements to
 
remain competitive
in specific business areas.
 
 
 
dev_UBS_AR_2022p251i0.gif
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
223
 
To further promote sustainable performance, all of our deferred compensation plans include employment conditions and
malus conditions. These enable
 
the firm to reduce or fully forfeit unvested deferred awards
 
under certain circumstances,
pursuant to performance and harmful acts provisions.
 
In addition, forfeiture is triggered in
 
cases where employment has
been terminated for cause.
Our
 
share
 
delivery
 
obligations
 
related
 
to
 
notional
 
share
 
awards
 
are
 
satisfied
 
by
 
delivering
 
treasury
 
shares,
 
which
 
are
purchased in the market, to employees at
 
vesting.
›
 
Refer to “Note 27
 
Employee benefits:
 
variable compensation”
 
in the “Consolidated
 
financial statements”
 
section of our
 
Annual
Report 2022 for more
 
information
›
 
Refer to the “Supplemental
 
information” section
 
of this report
 
for more information
 
about MRTs and SMFs
 
 
 
Long-Term Incentive Plan
The Long-Term
 
Incentive Plan
 
(the LTIP
 
)
 
granted
 
for 2022
 
performance is a
 
mandatory deferral
 
plan for
 
GEB members.
For the 2022
 
performance year,
 
we awarded
 
LTIP
 
to 14 GEB
 
members in office
 
during
 
2022,
 
at a fair value
 
of 71.45%
of the
 
maximum. The value
 
was calculated by
 
an independent third party
 
using a well-established valuation methodology.
 
The performance metrics
 
of the share
 
-based LTIP awards
 
are average return
 
on CET1 capital (RoCET1)
 
and relative total
shareholder return
 
(rTSR) over a
 
three-year performance
 
period starting
 
on 1
 
January in the year
 
of grant.
 
Performance
outcomes and actual payout levels will be
 
disclosed at the end of the performance
 
period.
The three
 
-year average
 
RoCET1
 
performance metric
 
reflects
 
our strategic
 
return
 
ambitions and
 
considers our
 
financial
targets, as well as our cost of capital as outlined
 
below:
–
 
the required RoCET1 performance for a maximum payout is set at 18%, which represents the upper end of our target
range, without encouraging
 
excessive risk-taking;
–
 
the
 
required
 
performance
 
threshold
 
for
 
the
 
minimum
 
payout
 
is
 
8%
,
 
t
he
 
mid
-
point
 
of
 
the
 
payout
 
thresholds
appropriately reflects our cost of equity
 
;
 
and
–
 
the
 
linear
 
payout
 
design
 
between
 
threshold
 
and
 
maximum level
 
supports
 
our
 
growth
 
ambitions
 
and
 
our
 
focus
 
on
delivering sustainable performance without
 
encouraging excessive risk-taking.
 
The
 
rTSR
 
performance
 
metric
 
over
 
the
 
three-year
 
period
 
further
 
aligns
 
the
 
interests
 
of
 
employees
 
with
 
those
 
of
shareholders:
–
 
the metric compares the total sharehol
 
der return (the TSR)
 
of UBS with the TSR of an index consisting of listed Global
Systemically Important Banks (G-SIBs)
 
as determined by the Financial Stability Board
 
(excluding UBS Group);
–
 
the G-SIBs are
 
independently defined
 
and reflect companies with
 
a comparable
 
risk profile
 
and impact on
 
the global
economy;
–
 
the index, which includes publicly traded G-
 
SIBs, is equally weighted, calculated
 
in Swiss francs and maintained by an
independent index provider,
 
so as to ensure independence
 
of the TSR calculation; and
–
 
the payout
 
interval of ±25
 
percentage points
 
versus the index
 
performance demonstrates
 
our ambition
 
of delivering
attractive
 
relative
 
returns
 
to
 
shareholders.
 
The
 
linear
 
payout
 
and
 
the
 
threshold
 
level
 
set
 
below
 
index
 
performance
further support sustainability of results and
 
appropriate risk-taking.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
224
 
Global Systemically Important Banks
 
(G-SIBs) that are listed companies
1
Agricultural Bank of China
Goldman Sachs
Santander
Bank of America
Groupe Crédit Agricole
Société Générale
Bank of China
HSBC
Standard Chartered
Bank of New York
 
Mellon
ING
State Street
Barclays
ICBC
Sumitomo Mitsui FG
BNP Paribas
JPMorgan Chase
Toronto
 
-Dominion
China Construction Bank
Mitsubishi UFJ FG
UniCredit
Citigroup
Mizuho FG
Wells Fargo
Credit Suisse
Morgan Stanley
Deutsche Bank
Royal Bank of Canada
1
 
As of November 2022.
 
Excludes UBS Group.
Dividend equivalents (granted where
 
applicable regulation permits)
 
are subject to the
 
same terms as the underlying
 
LTIP
award.
LTIP award
 
s
 
reflect the
 
long-term focus
 
of our
 
compensation
 
framework. The
 
final number
 
of shares
 
as determined
 
at
the end
 
of the
 
three-year performance
 
period
 
will vest
 
in three
 
equal
 
installments in
 
each of
 
the three
 
years following
the performance period for GEB members (i.e., years 3, 4
 
and 5 after grant), although longer deferral periods may apply
for regulated employees).
LTIP payout illustration
–
 
The final number of notional
shares vesting will vary based
 
on
the achievement versus the
performance metrics.
–
 
Linear payout between threshold
and maximum performance.
–
 
Achievement levels are a
percentage of the maximum
opportunity of the LTIP
 
and
cannot exceed 100%.
–
 
Full forfeiture for performance
below the predefined
 
threshold
levels.
–
 
UK Senior Management Function
holders (SMFs) and UK Material
Risk Takers
 
(UK MRTs)
 
are subject
to an additional non-financial
metric based on a conduct
assessment with a potential
downward adjustment of
 
up to
100% of the entire award.
Performance metric:
 
average RoCET1 (50% of award)
Below threshold (<8%)
Threshold (8%) up to
maximum (<18%)
Maximum and above (>18%)
Full forfeiture
(payout 0%)
Partial vest
(payout between 33% and <100%)
Full vest
(payout 100%)
Performance metric:
 
rTSR vs G-SIBs index (50% of award)
Below threshold (<–25 ppts)
Threshold (–25 ppts) up to
 
maximum (+25 ppts)
Maximum and above (>
 
+25 ppts)
Full forfeiture
(payout 0%)
Partial vest
(payout between 33% and <100%)
Full vest
(payout 100%)
Performance achievement
 
of the 2019 LTIP granted in 2020
The 2019 LTIP was granted
 
in 2020 (for 2019 performance) at a fair value of 62.25%
 
of a maximum of 100%. The final
performance
 
achieved
 
is
 
98%
 
of
 
a
 
maximum
 
of
 
100%.
 
This
 
achievement
 
reflects
 
the
 
outcome
 
of
 
the
 
two
 
equally
weighted performance metrics, RoCET1 and rTSR,
 
both measured over
 
the three-year performance period from
 
1 January
2020
 
to 31 December 2022.
 
The achievement level
 
of this 2019
 
LTIP award (granted
 
in 2020)
 
applies to 8
 
current GEB
members and 102 other
 
plan participants.
We achieved
 
a three-year average
 
RoCET1
 
performance of
 
17.3% against
 
the performance
 
range of
 
6% to
 
18%, and
an
 
rTSR
 
outperformance
 
of
 
+50.9 percentage
 
points
 
versus
 
the
 
index
 
of
 
listed
 
Global
 
Systemically
 
Important
 
Banks
(G-SIBs). No
 
adjustments, pandemic-related
 
or otherwise,
 
were made
 
in the assessment of
 
the performance conditions.
For
 
context,
 
at
 
the
 
time
 
when
 
the
 
LTIP
 
was
 
introduced,
 
our
 
communicated
 
ambition
 
for
 
RoCET1
 
was
 
12–15%.
 
This
ambition level has since been updated
 
and was raised to 15–18%, as
 
communicated in February 2022.
 
For GEB members, the first of the three equal installments of the 2019 LTIP vested on 1 March 2023 and the second and
third installments will vest in March 2024
 
and 2025;
 
while for selected senior management, the 2019 LTIP cliff vested on
1 March 2023
 
(later dates may apply for
 
regulated employees). For
 
context,
 
and as outlined
 
in our 2019
 
Compensation
Report, up to CHF 7.3
 
m, or 30%, of the 2019 LTIP awards at grant for GEB members
 
active in March 2017 continue
 
s
 
to
be at risk
 
and directly linked
 
to the final
 
resolution of the
 
French cross-border
 
matter. In
 
addition, a malus clause
 
allows
the
 
Compensation
 
Committee
 
to
 
assess
 
any
 
new
 
information
 
that
 
becomes
 
available
 
in
 
the
 
future
 
in
 
relation
 
to
 
the
matter and
 
for the affected
 
GEB members, and
 
to retrospectively reduce
 
any undelivered
 
2019 LTIP
 
award by up
 
to the
full amount if
 
any new
 
information would have
 
impacted our compensation
 
decision in 2019.
 
This matter continues
 
to
be ongoing and, once resolved, the final outcome will be reflected in the
 
final amounts delivered to relevant current and
former employees.
 
 
 
 
dev_UBS_AR_2022p233i0.gif
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
225
 
Performance achievement
 
for the 2019 LTIP awarded in 2020
 
 
Equity Ownership Plan
 
/ Fund Ownership Plan
The Equity Ownership Plan (the
 
EOP) is the deferred compensation plan
 
for employees outside of
 
the GEB that are subject
to deferral requirements.
 
For the 2022
 
performance year,
 
we granted EOP awards to
 
4,458 employees.
 
Delivering sustainable results
 
is a key
 
objective for UBS.
 
Our EOP
 
creates a
 
direct link with shareholder
 
returns as a
 
notional
equity award
 
and has
 
no upward
 
leverage.
 
This approach
 
promotes growth
 
and sustainable
 
performance.
 
EOP awards
generally vest over three years.
 
In place of EOP, employees in investment areas
 
within Asset Management receive some
 
or all of their EOP in the form of
notional funds (the Fund Ownership Plan
 
(the FOP), previously named AM EOP) to align their compensation more closely
with industry standards. This
 
plan is generally delivered in cash and
 
vests over three years.
›
 
Refer to “Vesting of outstanding
 
awards granted
 
in prior years subject
 
to performance metrics
 
and thresholds” in
 
the
“Supplemental
 
information” section
 
of this report
 
for more information
Deferred Contingent Capital
 
Plan
The
 
Deferred
 
Contingent
 
Capital Plan
 
(the
 
DCCP)
 
is
 
a key
 
component
 
of
 
our
 
compensation
 
framework and
 
supports
alignment of the interests of our
 
senior employees with those of our
 
stakeholders.
All employees subject to deferral requirements
 
receive DCCP awards.
 
For the 2022 performance year, we granted
 
DCCP
awards to 4,326 employees.
The DCCP is consistent with many
 
of the features of the loss-absorbing bonds that we issue to investors
 
and may be paid
at vesting
 
in cash or,
 
at the discretion
 
of the firm,
 
as a perpetual,
 
marketable additional
 
tier 1 (AT1)
 
capital instrument.
Employees can elect to have their DCCP
 
awards denominated in
 
Swiss francs or US dollars.
DCCP awards vest in full after five years (longer deferral periods
 
may apply for regulated employees). DCCP
 
awards bear
notional
 
interest
 
paid
 
annually
 
(except
 
as
 
limited
 
by
 
regulation
 
for
 
MRTs),
 
subject
 
to
 
review
 
and
 
confirmation
 
by
 
the
Compensation
 
Committee. The
 
notional
 
interest rate
 
for grants
 
in 2023
 
was 4.85%
 
for awards
 
denominated
 
in Swiss
francs and 7.80
 
%
 
for awards denominated
 
in US dollars.
 
These interest rates are
 
based on the
 
current market rates
 
for
similar AT1 capital instruments issued by UBS
 
Group.
Awards
 
are forfeited
 
if a
 
viability event
 
occurs
 
(i.e.,
 
if FINMA
 
notifies
 
the firm
 
that
 
the DCCP
 
awards
 
must be
 
written
down
 
to
 
mitigate
 
the
 
risk
 
of
 
an
 
insolvency,
 
bankruptcy
 
or
 
failure
 
of
 
UBS)
 
or
 
if
 
the
 
firm
 
receives
 
a
 
commitment
 
of
extraordinary support
 
from the
 
public sector
 
that is
 
necessary to
 
prevent such
 
an event.
 
DCCP awards
 
are also
 
written
down for GEB members
 
if the Group’s CET1 capital
 
ratio falls below 10% and for
 
all other employees
 
if it falls below 7%.
In addition, GEB members forfeit 20% of DCCP
 
awards for each loss-making year during
 
the vesting period. This means
100% of
 
the award
 
is subject
 
to risk
 
of forfeiture.
 
The forfeiture
 
features of
 
DCCP create
 
a strong
 
alignment with
 
our
debt holders and
 
support the sustainability of the firm.
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
226
 
Over the last
 
five years,
 
USD 2.0bn
 
of DCCP awards
 
have been
 
issued, contributing to
 
the Group’s
 
total loss-absorbing
capacity (TLAC). Therefore, DCCP awards not only support competitive pay but
 
also provide a loss absorption buffer that
protects the
 
firm’s capital
 
position. The
 
following table
 
illustrates the
 
contribution of
 
the DCCP
 
to our
 
AT1
 
capital and
the effect on our TLAC ratio.
›
 
Refer to the “Supplemental
 
information” section
 
of this report for
 
more information
 
about performance
 
award and personnel-
related expenses
›
 
Refer to the “Supplemental
 
information” section
 
of this report
 
for more information
 
about longer
 
vesting and clawback
 
periods
for MRTs and SMFs
 
Contribution of the
 
Deferred Contingent
 
Capital Plan to our loss
 
-absorbing capacity
1
USD m, except where indicated
31.12.22
31.12.21
Deferred Contingent Capital
 
Plan (DCCP), eligible as high-trigger loss-absorbing
 
additional tier 1 capital
1,794
1,730
DCCP contribution to the total loss-absorbing capacity ratio
 
(%)
0.6
0.6
1 Refer to “Bondholder information”
 
at ubs.com/investors
 
for more information
 
about the capital instruments
 
of UBS Group AG a
 
nd UBS AG both on a
 
consolidated and a standalone
 
basis.
 
Other variable compensation components
To
 
support hiring and retention,
 
particularly at senior levels, we may offer
 
other compensation components
 
,
 
such as:
–
 
retention payments to key employees to induce
 
them to stay, particularly during critical periods for the
 
firm, such as a
sale or wind-down
 
of a business;
–
 
on
 
a limited
 
basis,
 
guarantees
 
that
 
may be
 
required
 
to attract
 
individuals with
 
certain
 
skills and
 
experience
 
– these
awards are fixed incentives subject to our
 
standard deferral rules and
 
limited to the first full year of employment;
–
 
awards
 
granted
 
to employees
 
hired
 
late in
 
the year
 
to replace
 
performance awards
 
that they
 
would
 
have earned
 
at
their previous employer, but have foregone by joining UBS – these awards are generally structured with the same level
of deferral as for employees at a similar level
 
at UBS; and
–
 
in exceptional cases, sign-on awards
 
may be offered to
 
candidates to increase the chances
 
of them accepting our offer.
These other variable compensation
 
components are subject to a
 
comprehensive governance
 
process, which may involve
the Compensation Committee, depending
 
on the amount or type of such payments.
Employees outside
 
of the GEB
 
that are made
 
redundant
 
may receive severance
 
payments.
 
Our severance terms
 
comply
with the applicable local laws (legally obligated severance). In certain locations,
 
we may provide severance packages that
are negotiated
 
with our
 
local social partners
 
and may go
 
beyond the
 
applicable minimum legal
 
requirements (standard
severance).
 
Such
 
payments
 
are
 
governed
 
by
 
location-specific
 
severance
 
policies.
 
In
 
addition,
 
we
 
may make
 
severance
payments that exceed legally obligated or standard severance payments where
 
we believe these are aligned with market
practice
 
and
 
appropriate
 
under
 
the
 
circumstances
 
(supplemental
 
severance).
 
GEB
 
members
 
do
 
not
 
receive
 
severance
payments.
Replacement awards and forfeitures
In line with
 
industry practice, our
 
compensation framework and
 
plans include
 
provisions generally
 
requiring reduction
 
/
forfeiture of a terminated employee’s unvested or deferred awards. In particular,
 
these provisions apply if the terminated
employee joins another financial services organization and / or violates restrictive covenants, such as solicitation of clients
or employees.
 
Conversely, to attract
 
external top talent,
 
market practice dictates that
 
we consider replacing their
 
forfeited compensation
from their
 
prior employer.
 
In select situations
 
and based
 
on careful
 
consideration,
 
we replace
 
the lost
 
compensation
 
of
senior hires.
 
The replacement awards
 
are subject to UBS’s
 
harmful acts provisions.
 
Their value is subject
 
to independent
review as part of the “Report of the
 
statutory auditor on the compensation
 
report”
 
to support the like-for-like nature of
the replacement and to confirm
 
that these awards do not represent sign-on
 
payments (i.e., there are no
 
“golden hellos”).
Based on a thorough
 
review of available
 
documentation, we aim to mirror
 
the type, conditions and
 
timing of the
 
forfeited
compensation,
 
based
 
on
 
actual
 
facts
 
and
 
circumstances.
 
Replacement
 
awards
 
can
 
include
 
cash
 
payments
 
and
 
/
 
or
deferred awards,
 
including EOP share
 
awards and DCCP
 
awards. Where payments
 
are made in
 
cash, there
 
is typically a
clawback period if
 
the employee leaves
 
UBS voluntarily within
 
12 months
 
of the start
 
of employment. The
 
replacement
awards do not
 
exceed the commercial or
 
fair value of the
 
compensation actually forfeited
 
by the individual
 
and, in case
of GEB
 
members, are
 
disclosed
 
transparently.
 
The total
 
2022
 
forfeitures of
 
USD 188m
 
of previously
 
awarded
 
deferred
compensation offset the 2022
 
total sign-on payments, replacement payments
 
and guarantees of USD 153
 
m.
In March
 
2022,
 
Sarah Youngwood
 
joined
 
the GEB
 
and succeeded
 
Kirt Gardner
 
as Group
 
CFO effective
 
16 May
 
2022.
Before joining UBS, Ms. Youngwood
 
was CFO for JPMorgan Chase Consumer & Community
 
Banking, CFO for Firmwide
Technology
 
and
 
CFO
 
for
 
Diversity &
 
Inclusion.
 
In
 
October 2022,
 
Naureen
 
Hassan
 
joined
 
the
 
GEB
 
and
 
succeeded Tom
Naratil in his role as President UBS Americas. She joined UBS from the Federal Reserve Bank of
 
New York, where she was
COO and First Vice President.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
227
 
Consistent
 
with
 
the
 
terms
 
of
 
the
 
compensation
 
forfeited
 
at
 
her
 
previous
 
employer,
 
Sarah
 
Youngwood
 
received
replacement awards
 
with a total
 
value of
 
CHF 7,206,683
 
,
 
consisting of an
 
EOP share award
 
representing
 
291,584 UBS
shares
 
(denominated
 
in
 
Swiss
 
francs),
 
and
 
replacement
 
of
 
cash
 
items.
 
The
 
deferred
 
portion
 
of
 
the
 
award
 
will vest
 
in
various installments between
 
2023 and 2026.
 
Similarly, Naureen Hassan received replacement
 
awards with a total value
of CHF 65,229,
 
consisting
 
of a deferred cash award (vesting in 2023) and replacement
 
of cash items. These replacement
awards reflect the different compensation
 
structures of the industries and
 
organizations we recruit from.
 
Sign-on payments, replacement
 
payments, guarantees
 
and severance
 
payments
Total 2022
of which: non-deferred
cash
of which: deferred
compensation
awards
Total 2021
Number of beneficiaries
USD m, except where indicated
2022
2021
Total sign-on payments
1
 
0
 
0
 
0
 
0
 
1
 
0
of which: Key Risk Takers
2
 
0
 
0
 
0
 
0
 
0
 
0
Total replacement payments
3
 
110
 
28
 
82
 
119
 
452
 
463
of which: Key Risk Takers
2
 
32
 
10
 
22
 
43
 
19
 
13
Total guarantees
4
 
43
 
22
 
21
 
17
 
49
 
40
of which: Key Risk Takers
2
 
26
 
12
 
15
 
2
 
9
 
1
Total severance
 
payments
1,5
 
233
 
233
 
0
 
160
 
1,745
 
1,477
of which: Key Risk Takers
2
 
1
 
1
 
0
 
3
 
8
 
10
1 GEB members are
 
not eligible for sign
 
-on or severance
 
payments. Sign-
 
on awards exclude
 
one-time payments for
 
junior associate
 
hires into the Investment
 
Bank. Including these,
 
the 2022 and 2021
 
total sign-on
payments are USD 1m for
 
each respective year.
 
All one-time
 
payments for junior
 
associate hires
 
are subject to a 12
 
-month clawback condition.
 
Prior period information
 
has been adjusted to
 
exclude awards
 
granted
to employees
 
hired late in
 
the year.
 
2 Expenses
 
for Key
 
Risk Takers
 
are full-year
 
amounts for
 
individuals in
 
office on 31
 
December 2022.
 
Key Risk
 
Takers
 
as defined
 
by UBS, including
 
all employees
 
with a total
compensation exceeding USD
 
/ CHF 2.5m (Highly Paid
 
Employees).
 
3 Includes replacement
 
payments for two GEB
 
members in 2022
 
and for one GEB
 
member in 2021. Includes
 
awards granted
 
to employees hired
late in the year
 
to replace performance
 
awards that
 
they would
 
have earned at their
 
previous employers,
 
but have foregone
 
by joining UBS.
 
Prior period information
 
has been adjusted
 
to include awards
 
granted to
employees hired late in the year.
 
4 No GEB member received
 
a guarantee in 2022
 
or 2021.
 
5 Includes legally obligated
 
and standard severance
 
payments,
 
as well as payments in lieu
 
of notice.
 
Forfeitures
1
Total 2022
Total 2021
USD m, except where indicated
Total forfeitures
 
188
 
258
of which: former GEB members
 
3
 
23
of which: Key Risk Takers
2
 
12
 
8
1 For notional
 
share awards,
 
forfeitures
 
are calculated
 
as units forfeited
 
during the
 
year,
 
valued at
 
the share
 
price on
 
31 December
 
2022 (USD
 
18.67)
 
for 2022. The
 
2021 data
 
is valued
 
using the
 
share price
 
on
31 December 2021
 
(USD 17.87).
 
For LTIP
 
the forfeited
 
units reflect
 
the fair value
 
awarded at
 
grant. For
 
the notional
 
funds awarded
 
to Asset Managem
 
ent employees
 
under the EOP,
 
this represents
 
the forfeiture
credits recognized in 2022
 
and 2021. For
 
the DCCP,
 
the fair value
 
at grant of the
 
forfeited awards
 
during the year is
 
reflected. Numbers
 
presented may
 
differ from the effect
 
on the income statement
 
in accordance
with IFRS.
 
2 Key Risk
 
Takers as
 
defined by UBS, including
 
all employees with
 
a total compensation exceeding
 
USD / CHF 2.5m (Highly
 
Paid Employees)
 
and excluding former
 
GEB members
 
who forfeited awards in
2022 or 2021.
Employee share ownership
According
 
to
 
available
 
records
 
on
 
employee
 
shareholdings,
 
including
 
unvested
 
deferred
 
compensation,
 
as
 
of
31 December
 
2022,
 
employees
 
held
 
at
 
least
 
USD 4.6bn
 
of
 
UBS
 
shares
 
(of
 
which
 
approximately
 
USD 2.9bn
 
were
unvested), representing
 
approximately 7%
 
of our total shares issued
 
.
The Equity Plus Plan is our
 
employee share purchase
 
program. It allows
 
employees at Executive
 
Director level and
 
below
to voluntarily
 
invest up
 
to 30%
 
of their
 
base salary
 
and
 
/ or
 
regular commission
 
payments
 
to purchase
 
UBS
 
shares.
 
In
addition
 
(where
 
offered),
 
eligible
 
employees
 
can
 
invest
 
up
 
to
 
35%
 
of
 
their
 
performance
 
award
 
under
 
the
 
program.
Participation in
 
the program
 
is capped
 
at USD
 
/ CHF
 
20,000
 
annually.
 
Eligible employees
 
may purchase
 
UBS
 
shares
 
at
market price and
 
receive one additiona
 
l
 
share for
 
every three shares
 
purchased through
 
the program. Additional
 
shares
vest after a
 
maximum of three
 
years, provided
 
the employee remains employed
 
by UBS and
 
has retained the purchased
shares throughout the
 
holding period.
›
 
Refer to “Note 27
 
Employee benefits:
 
variable compensation”
 
in the “Consolidated
 
financial statements”
 
section of our
 
Annual
Report 2022
 
for more information
Compensation for US financial advisors in
 
Global Wealth Management
In line with market practice for US wealth management businesses,
 
the compensation for US financial advisors in Global
Wealth Management
 
consists of cash
 
compensation and
 
deferred compensation
 
awards, determined
 
using a
 
formulaic
approach based
 
on production.
The monthly
 
cash compensation
 
is determined
 
using
 
an
 
overall percentage
 
rate for
 
each financial
 
advisor.
 
It reflects
 
a
percentage
 
of
 
the
 
compensable
 
production
 
that
 
each
 
financial
 
advisor
 
generates
 
during
 
that
 
month.
 
Compensable
production is generally based
 
on transaction revenue
 
and investment advisory fees
 
and may reflect further
 
adjustments.
The
 
percentage
 
rate
 
generally
 
varies
 
based
 
on
 
the
 
level
 
of
 
the
 
production
 
and
 
firm
 
tenure,
 
supporting
 
growth
 
and
alignment with the investment strategy
 
and goals of our
 
clients.
Financial
 
advisors
 
may
 
also
 
be
 
granted
 
annual
 
deferred
 
compensation.
 
These
 
amounts
 
generally
 
vest
 
over
 
a
 
six-year
period.
 
The annual
 
deferred compensation
 
amount
 
reflects their
 
overall percentage
 
rate and
 
production,
 
as previously
outlined.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
228
 
Cash compensation
 
and deferred compensation
 
awards may
 
be reduced
 
for,
 
among other things,
 
errors, negligence or
carelessness, or failure to comply with the
 
firm’s rules, standards, practices and / or policies, and /
 
or applicable laws and
regulations.
Financial advisors
 
may also
 
participate
 
in
 
additional
 
programs
 
to
 
support
 
promoting
 
and
 
developing
 
their business
 
or
supporting the transition of
 
client relationships where
 
appropriate.
 
 
2022 Group performance outcomes
Performance awards granted
 
for the 2022
 
performance year
 
The “Variable
 
compensation” table
 
below shows
 
the amount
 
of variable
 
compensation
 
awarded to
 
employees for
 
the
2022
 
performance year, together with
 
the number
 
of beneficiaries for
 
each type
 
of award granted. In
 
the case
 
of deferred
awards,
 
the
 
final
 
amount
 
paid
 
to
 
an
 
employee
 
depends
 
on
 
performance
 
conditions
 
and
 
consideration
 
of
 
relevant
forfeiture provisions.
 
The deferred
 
share
 
award
 
amount
 
is based
 
on
 
the market
 
value
 
of these
 
awards
 
on
 
the date
 
of
grant.
 
Variable compensation
Expenses recognized
in the IFRS income
statement
Expenses deferred to
future periods
3
Accounting
adjustments
3,4
Total
Number of beneficiaries
6
USD m, except
 
where indicated
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Non-deferred cash
 
2,276
 
2,383
 
0
 
0
 
(18)
 
0
 
2,259
 
2,383
 
59,570
 
57,783
Deferred compensation awards
 
364
 
405
 
605
 
797
 
58
 
65
 
1,026
 
1,267
 
4,349
 
4,202
of which: Equity Ownership Plan
 
202
 
183
 
310
 
393
 
55
 
46
 
568
 
623
 
4,042
 
3,807
of which: Deferred Contingent Capital Plan
 
129
 
140
 
245
 
299
 
0
 
0
 
375
 
438
 
4,206
 
4,170
of which: Long-Term Incentive
 
Plan
 
11
 
54
 
30
 
50
 
3
 
18
 
43
 
122
 
14
 
117
of which: Fund Ownership Plan
 
21
 
29
 
20
 
56
 
0
 
0
 
41
 
84
 
295
 
374
Variable compensation –
 
performance award pool
 
2,640
 
2,788
 
605
 
797
 
40
 
65
 
3,285
 
3,650
 
59,590
 
57,793
Variable compensation –
 
financial advisors
1
 
3,799
 
4,175
 
1,290
 
1,097
 
0
 
0
 
5,089
 
5,272
 
6,245
 
6,218
Variable compensation –
 
other
2
 
169
 
191
 
237
 
215
 
(146)
5
 
(121)
5
 
260
 
285
Total variable compensation
 
6,608
 
7,155
 
2,131
 
2,109
 
(106)
 
(56)
 
8,634
 
9,207
1 Financial
 
advisor
 
compensation
 
consists
 
of cash
 
and
 
deferred compensation
 
awards and
 
is based
 
on compensable
 
revenues and
 
firm tenure
 
using a
 
formulaic
 
approach. It
 
also includes
 
expenses
 
related to
compensation commitment
 
s
 
with financial
 
advisors entered
 
into at
 
the time of
 
recruitment that
 
are subject to
 
vesting requirements.
 
2 Consists
 
of replacement
 
payments, forfeiture
 
credits, severance
 
payments,
retention plan payments and
 
interest expense related
 
to the Deferred
 
Contingent Capital Plan.
 
3 Estimates as of 31
 
December 2022 and 2021.
 
Actual amounts to
 
be expensed in future
 
periods may vary; e.g.,
 
due
to forfeiture of awards.
 
4 Represents estimated
 
post-vesting transfer
 
restriction and
 
permanent forfeiture discounts,
 
as well as currency
 
translation adjustments.
 
5 Included in expenses
 
deferred to future
 
periods
is an amount of USD 146m
 
(2021: USD 121m)
 
in interest expense
 
related to the Deferred
 
Contingent Capital
 
Plan. As the amount
 
recognized as performance
 
award represents the
 
present value of the
 
award at the
date it is granted to the employee,
 
this amount is excluded.
 
6 Excludes awards that
 
are part of other variable
 
compensation.
2022
 
performance award pool and expenses
The performance award pool,
 
which includes performance-based variable awards
 
for 2022, was USD 3.3bn, reflecting
 
a
decrease
 
of
 
10%
 
compared
 
with
 
2021.
 
Performance
 
award
 
expenses
 
for
 
2022
 
remained
 
at
 
USD 3.2bn,
 
reflecting
decreased
 
performance
 
award
 
expenses
 
accrued
 
in
 
the
 
performance
 
year,
 
offset
 
by
 
increased
 
performance
 
award
expenses
 
related to
 
prior performance
 
years. The
 
“Performance award
 
pool
 
and
 
expenses” table
 
below
 
compares the
performance award pool
 
with performance award expenses.
 
Performance award
 
pool and expenses
USD m, except where indicated
2022
2021
% change
Performance award pool
1
 
3,285
 
3,650
 
(10)
of which: expenses deferred to future periods and accounting
 
adjustments
2,3
 
645
 
862
 
(25)
Performance award expenses accrued
 
in the performance year
 
2,640
 
2,788
 
(5)
Performance award expenses related to
 
prior performance years
 
566
 
402
 
41
Total performance
 
award expenses recognized for the year
4
 
3,205
 
3,190
 
0
1 Excluding
 
employer-paid
 
taxes and
 
social security.
 
2 Estimate
 
as of
 
the end
 
of the
 
performance year.
 
Actual amounts
 
expensed in
 
future periods
 
may vary,
 
e.g.,
 
due to forfeiture
 
of awards.
 
3 Accounting
adjustments represent estimated
 
post-vesting transfer
 
restriction and permanent
 
forfeiture discounts,
 
as well as currency
 
translation adjustments.
 
4 Refer to “Note 27 Employee
 
benefits: variable compensation”
 
in
the “Consolidated financial statements”
 
section of our Annual Report
 
2022 for more information.
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
229
 
Compensation for the Board of Directors
Chairman of the BoD
Colm
 
Kelleher
 
was
 
elected
 
Chairman
 
of
 
the
 
BoD
 
at
 
the
 
2022
 
AGM
 
on
 
6 April
 
2022.
 
Under
 
his
 
leadership,
 
the
 
BoD
determines, among
 
other things,
 
the strategy for
 
the Group
 
,
 
based on
 
recommendations by
 
the Group
 
CEO, exercises
ultimate supervision over management
 
and appoints all GEB members.
The Chairman
 
leads all general
 
meetings and BoD
 
meetings and
 
works with the
 
committee Chairpersons to
 
coordinate
the work of all BoD committees.
 
Together with the Group CEO, the Chairman is responsible for effective communication
with
 
shareholders
 
and
 
stakeholders,
 
including
 
clients,
 
government
 
officials,
 
regulators
 
and
 
public
 
organizations.
 
The
Chairman works closely with
 
the Group CEO and
 
other GEB members,
 
providing advice and support
 
when appropriate,
and
 
continues
 
to
 
strengthen
 
and
 
promote
 
our
 
culture
 
through
 
the
 
three
 
keys
 
to
 
success:
 
our
 
Pillars,
 
Principles
 
and
Behaviors.
As
 
an independent director, the Chairman’s total compensation
 
for the period from AGM to AGM consists of a fixed fee
without
 
any variable
 
component,
 
which is
 
delivered 50%
 
in cash
 
and
 
50%
 
in shares
 
(blocked
 
for four
 
years).
 
For
 
the
current period,
 
from the 2022
 
AGM to the 2023
 
AGM, his fixed fee was CHF 4.7m
 
and consisted of a cash payment
 
of
CHF 2.35m and a share component of CHF 2.35m,
 
consisting of 116,961 UBS shares at
 
CHF 20.092 per share. The share
component
 
aligns
 
the
 
Chairman’s
 
pay
 
with
 
the
 
Group’s
 
long-term
 
performance.
 
The
 
Chairman
 
does
 
not
 
receive
performance awards,
 
severance payments
 
or pension
 
contributions
 
in addition
 
to his
 
fixed fee, bu
 
t,
 
given the
 
full-time
nature of his role, he
 
is eligible for employee conditions on UBS products
 
and services.
›
 
Refer to “Board of
 
Directors” in the “Corporate
 
governance”
 
section of our
 
Annual Report 2022
 
for more information
 
about the
responsibilities of the
 
Chairman
Vice Chairman of the BoD
Lukas Gähwiler was elected as a member of the BoD at the 2022 AGM on 6 April
 
2022 and thereafter appointed as Vice
Chairman.
 
In this newly defined full-time
 
role, he leads the BoD in the
 
absence of the
 
Chairman. Together with the Senior
Independent
 
Director,
 
he also
 
supports
 
the Chairman
 
in all
 
aspects
 
of
 
corporate governance
 
and
 
oversight
 
across the
Group.
 
In particular,
 
he represents UBS
 
across a broad range of associations
 
and industry bodies in Switzerland.
 
The Vice Chairman’s
 
total compensation
 
for the period
 
from AGM to
 
AGM consists
 
of a fixed
 
fee without any
 
variable
component,
 
which is delivered 50% in cash and 50% in shares (
 
blocked for four years). For the current period,
 
from the
2022 AGM to the 2023 AGM, his fixed fee was CHF 1.5m, excluding
 
benefits and pension fund contributions. The fixed
fee consisted of a cash payment
 
of CHF 0.75m
 
and a share component
 
of CHF 0.75m, consisting of
 
37,328 UBS
 
shares
at CHF 20.092 per
 
share. The fee for the
 
new full-time Vice Chairman was absorbed within the existing budget and does
not result in an increase of
 
the proposed maximum aggregate amount
 
for BoD compensation.
As a
 
non-independent director,
 
Mr. Gähwiler is
 
entitled to pension
 
fund contributions.
 
Including these,
 
his total reward
for his service as Vice Chairman for the
 
current period was CHF 1,879,0
 
10.
The Vice
 
Chairman is
 
not eligible
 
for performance
 
awards, severance
 
terms or
 
supplementary
 
contributions to
 
pension
plans.
 
The pension
 
contributions
 
and
 
benefits for
 
the Vice
 
Chairman,
 
in his
 
capacity
 
as non
 
-independent
 
director, are
consistent with all UBS
 
employees and aligned with local
 
market practice.
›
 
Refer to “Board of
 
Directors” in the “Corporate
 
governance”
 
section of our
 
Annual Report 2022
 
for more information
 
about the
responsibilities of the
 
Vice Chairman
 
 
 
dev_UBS_AR_2022p258i0.gif
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
230
 
Other BoD members
BoD
 
members,
 
except
 
the
 
Chairman
 
and
 
Vice
 
Chairman,
 
receive
 
fixed
 
fees
 
for
 
their
 
services
 
on
 
the
 
BoD
 
and
 
its
committees. BoD
 
members do
 
not receive performance
 
awards, severance
 
payments,
 
benefits or pension
 
contributions
(the benefit eligibility of the Chairman
 
and that of the Vice Chairman
 
are described above).
BoD members must use a
 
minimum of 50% of their
 
fees to purchase UBS
 
shares, which are blocked for four
 
years, and
they may elect to use up to 100% of
 
their fees to purchase blocked UBS
 
shares. As outlined above,
 
the fixed fees of the
Chairman and Vice
 
Chairman are delivered 50%
 
in cash
 
and 50% in
 
shares,
 
which are blocked
 
for four years.
 
The number
of shares
 
is calculated based
 
on the
 
average closing price
 
of the 10
 
trading days
 
leading
 
up to and
 
including the grant
date.
At
 
each
 
AGM,
 
shareholders
 
are
 
invited
 
to
 
approve
 
the
 
aggregate
 
amount
 
of
 
BoD
 
remuneration,
 
including
 
the
compensation for
 
the Chairman
 
and Vice Chairman,
 
which applies until
 
the next AGM.
 
The chart and
 
the tables below
provide details on the fee structure for the
 
BoD members.
 
 
Approval governance for BoD compensation
The
 
Chairperson
 
of
 
the
 
Compensation
 
Committee
 
proposes
 
and
 
the
 
Compensation
 
Committee
 
approves
 
the
compensation of
 
the Chairman and
 
that of the Vice
 
Chairman annually
 
for the upcoming AGM
 
-to-AGM period,
 
taking
into consideration fee or compensation
 
levels for comparable roles
 
based on our
 
core financial industry peers and
 
other
relevant leading Swiss companies included
 
in the Swiss Market Index.
The fee
 
structure for
 
the other
 
BoD members is
 
reviewed annually
 
based on the
 
Chairman’s proposal to
 
the Compensation
Committee, which in turn submits a proposal to the BoD for approval. In our regular review of the BoD fee structure, we
concluded that our overall approach
 
for BoD member compensation remains
 
appropriate and thus
 
unchanged.
›
 
Refer to “Compensation
 
Governance”
 
in the “Compensation
 
philosophy and
 
governance”
 
section of this
 
report for more
information about the
 
remuneration responsibilities
 
of the BoD and
 
Compensation
 
Committee
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
231
 
Audited |
 
Remuneration details and
 
additional information
 
for BoD members
Period 2022 AGM
 
to 2023 AGM
CHF,
 
except where indicated
Name, function
1
Audit Committee
Compensation
Committee
Corporate Culture and
Responsibility Committee
Governance and
Nominating Committee
Risk Committee
Base fee
Committee
fee(s)
Additional
payments
2
Benefits
3
Total
4
Share
percentage
5
Number of
shares
6,7
Colm Kelleher,
 
Chairman
8
C
C
 
4,700,000
 
86,494
 
4,786,494
 
50
 
116,961
Lukas Gähwiler, Vice
 
Chairman
8
 
1,500,000
 
379,010
 
1,879,010
 
50
 
37,328
Jeremy Anderson, Senior
Independent Director
C
M
 
300,000
 
400,000
 
150,000
 
850,000
 
50
 
21,152
Claudia Böckstiegel, member
M
 
300,000
 
50,000
 
350,000
 
50
 
8,709
William C. Dudley, member
M
M
 
300,000
 
250,000
 
550,000
 
50
 
13,687
Patrick Firmenich, member
M
M
 
300,000
 
250,000
 
550,000
 
100
 
26,130
Fred Hu, member
M
 
300,000
 
100,000
 
400,000
 
100
 
14,722
Mark Hughes, member
M
C
 
300,000
 
400,000
 
700,000
 
50
 
17,419
Nathalie Rachou, member
M
M
 
300,000
 
300,000
 
600,000
 
50
 
14,931
Julie G. Richardson, member
C
M
 
300,000
 
400,000
 
700,000
 
50
 
17,419
Dieter Wemmer, member
M
M
 
300,000
 
300,000
 
600,000
 
50
 
14,931
Jeanette Wong, member
M
M
 
300,000
 
300,000
 
600,000
 
100
 
22,127
Aggregate of all BoD members 2022/2023
12,565,504
Aggregate of all BoD members 2022/2023 in USD
 
(for reference)
9
13,035,831
Period 2021 AGM
 
to 2022 AGM
CHF,
 
except where indicated
Name, function
1
Audit Committee
Compensation
Committee
Corporate Culture and
Responsibility Committee
Governance and
Nominating Committee
Risk Committee
Base fee
Committee
fee(s)
Additional
payments
10
Benefits
Total
4
Share
percentage
5
Number of
shares
6,7
Axel A. Weber, Chairman
11
C
C
 
4,900,000
 
324,913
 
5,224,913
 
29
 
72,939
Jeremy Anderson,
Vice Chairman and Senior
Independent Director
C
M
 
300,000
 
400,000
 
150,000
 
850,000
 
50
 
22,142
Claudia Böckstiegel, member
 
300,000
 
0
 
300,000
 
50
 
7,814
William C. Dudley, member
M
M
M
 
300,000
 
350,000
 
650,000
 
50
 
16,932
Patrick Firmenich, member
 
300,000
 
250,000
 
550,000
 
100
 
27,275
Reto Francioni,
 
member
M
M
 
300,000
 
300,000
 
600,000
 
50
 
15,629
Fred Hu, member
M
M
 
300,000
 
300,000
 
600,000
 
100
 
23,062
Mark Hughes, member
M
C
 
300,000
 
400,000
 
700,000
 
50
 
18,234
Nathalie Rachou, member
M
 
300,000
 
200,000
 
500,000
 
50
 
13,024
Julie G. Richardson, member
C
M
M
 
300,000
 
500,000
 
800,000
 
50
 
20,839
Dieter Wemmer, member
M
M
M
 
300,000
 
400,000
 
700,000
 
50
 
18,234
Jeanette Wong, member
M
M
M
 
300,000
 
350,000
 
650,000
 
100
 
24,988
Aggregate of all BoD members 2021/2022
 
12,124,913
Legend: C = Chairperson of the respective Committee,
 
M = Member of the respective Committee
1 Twelve BoD
 
members were in
 
office on 31 December
 
2022. At the
 
2022 AGM, Colm
 
Kelleher and Lukas
 
Gähwiler were
 
newly elected and
 
Reto Francioni
 
and Axel A. Weber
 
did not stand
 
for re-election.
 
Twelve
BoD members were
 
in office on 31
 
December 2021.
 
2 These
 
payments are associated
 
with the Senior
 
Independent Director
 
role.
 
3 For the
 
period from the
 
2022 AGM
 
to the 2023 AGM,
 
benefits amount is
 
an
estimate. For the Vice
 
Chairman, the benefits include
 
the portion related to
 
UBS’s contribution to
 
the statutory pension scheme.
 
4 Excludes UBS’s
 
portion related to the legally
 
required social security contributions,
which for the period from
 
the 2022 AGM to
 
the 2023 AGM (including
 
the Chairman and
 
Vice Chairman) is
 
estimated at grant
 
at CHF
 
731,329 and which for
 
the period from
 
the 2021 AGM to
 
the 2022 AGM was
estimated at grant at CHF 719,763.
 
The legally required
 
social security contributions
 
paid by the independent BoD
 
members are included in the amounts
 
shown in this table, as appropriate.
 
5 Except for the former
Chairman (see footnote
 
11), fees are
 
paid 50%
 
in cash
 
and 50% in
 
blocked UBS
 
shares.
 
6 For
 
2022, UBS
 
shares were valued
 
at CHF 20.092
 
(average closing
 
price of
 
UBS shares over
 
the last 10
 
trading days
leading up to and
 
including the
 
grant date).
 
For 2021, UBS
 
shares were valued
 
at CHF 19.194 (average
 
closing price of
 
UBS shares
 
over the last 10
 
trading days leading
 
up to and including
 
the grant
 
date). These
shares are blocked
 
for four years.
 
7 Number
 
of shares is reduced
 
in case of the
 
100% election to
 
deduct legally required
 
contributions.
 
All remuneration
 
payments are,
 
where applicable,
 
subject to social
 
security
contributions and / or withholding
 
tax.
 
8 The Chairman
 
and the Vice Chairman
 
do not receive committee
 
fees in addition to
 
their annual fixed fee.
 
9 Swiss franc amounts
 
have been translated
 
into US dollars for
reference at
 
the 2022 performance
 
award currency
 
exchange rate
 
of CHF
 
/ USD 1.03743.
 
10 This
 
payment is
 
associated with
 
the Senior
 
Independent Director
 
function and
 
the Vice
 
Chairman role.
 
11 In
 
his
function as non-independent BoD member
 
for the AGM period 2021/2022,
 
the former Chairman received a base salary
 
of CHF 3,500,000 and an annual share
 
award of CHF 1,400,000. This
 
remuneration is included
above in the Base fee column.
p
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
232
 
Supplemental information
Fixed and variable compensation for
 
GEB members
 
Fixed and variable compensation
 
for GEB members
1,2,3
Total for 2022
Not deferred
Deferred
4
Total for 2021
CHF m, except where indicated
Amount
%
Amount
%
Amount
%
Amount
Total compensation
Amount
5
 
104
 
100
 
39
 
38
 
65
 
63
 
105
Number of beneficiaries
 
15
 
0
 
15
Fixed compensation
5,6
 
23
 
22
 
23
 
100
 
0
 
0
 
25
Cash-based
 
21
 
20
 
21
 
0
 
22
Equity-based
 
2
 
2
 
2
 
0
 
3
Variable compensation
 
81
 
78
 
16
 
20
 
65
 
80
 
80
Cash
7
 
16
 
15
 
16
 
0
 
16
Long-Term Incentive Plan (LTIP)
8
 
41
 
39
 
0
 
41
 
40
Deferred Contingent Capital Plan (DCCP)
8
 
24
 
23
 
0
 
24
 
24
1 The figures include
 
all GEB members in
 
office during the respective
 
years.
 
2 Includes compensation
 
paid under the employment
 
contract during the
 
notice period for GEB
 
members who stepped
 
down during the
respective years.
 
3 Includes
 
compensation for
 
newly appointed
 
GEB members
 
for their time
 
in office
 
as a GEB member
 
during the
 
respective years.
 
4 Based on the
 
specific
 
plan vesting and reflecting
 
the total
award value at
 
grant, which
 
may differ from the expense
 
recognized in the
 
income statement
 
in accordance with IFRS.
 
5 Excludes
 
benefits and employer’s
 
contributions to
 
retirement benefit plans.
 
Includes social
security contributions paid
 
by GEB members
 
but excludes the portion
 
related to the legally
 
required social security
 
contributions
 
paid by UBS.
 
For 2022, Sarah
 
Youngwood
 
received a one-time
 
replacement award
 
of
CHF 7m and Naureen Hassan
 
received a one-time replacement
 
award of CHF 0.07m.
 
The replacement
 
awards are not included
 
in the above table; including
 
these, the 2022
 
total aggregate compensation
 
of all GEB
members is CHF 112m.
 
For 2021, Barbara
 
Levi received a
 
one-time replacement
 
award of CHF 7m. This
 
replacement award
 
is not included in
 
the above table; including
 
this, the 2021
 
total aggregate compensation
of all GEB members is CHF 112m.
 
6 Includes base salary and role
 
-based allowances, rounded
 
to the nearest million.
 
7 Includes allocation of
 
vested but blocked shares,
 
in line with the remuneration
 
section of the
UK Prudential Regulation
 
Authority Rulebook.
 
8 For the GEB
 
members who are also MRTs
 
or SMFs, the awards
 
do not include dividend
 
and interest payments.
 
Accordingly, the
 
amounts reflect for
 
the LTIP
 
the fair
value of the non-dividend
 
-bearing awards and for the
 
DCCP the fair value
 
of the granted non
 
-interest-bearing awards.
 
 
Regulated staff
Key Risk Takers
Key
 
Risk
 
Takers
 
(KRTs)
 
are
 
defined
 
as
 
those
 
employees
 
that,
 
by
 
the
 
nature
 
of
 
their
 
roles,
 
have
 
been
 
determined
 
to
materially set,
 
commit or control
 
significant
 
amounts of
 
the firm’s resources
 
and /
 
or exert significant
 
influence over
 
its
risk profile. This includes employees
 
working
 
in front-office roles, logistics and control functions. Identifying KRTs globally
is part of
 
our risk control
 
framework and
 
an important element
 
in ensuring
 
we incentivize only
 
appropriate risk
 
-taking.
For 2022, in addition to GEB members, 699 employees were
 
classified as KRTs throughout
 
UBS Group globally, including
all employees
 
with a
 
total compensation
 
exceeding
 
USD /
 
CHF 2.5m
 
(Highly Paid
 
Employees), who
 
may not
 
have been
identified as KRTs
 
during the performance year.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
233
 
In line
 
with regulatory
 
requirements,
 
the performance
 
of employees
 
identified
 
as KRTs
 
during
 
the performance
 
year is
evaluated by the control functions.
 
In addition, KRTs’ performance awards
 
are subject to a mandatory deferral
 
rate of at
least 50%,
 
regardless
 
of
 
whether
 
the
 
deferral threshold
 
has
 
been
 
met (excluding
 
KRTs
 
with
 
de
 
minimis performance
awards
 
below
 
a predetermined
 
threshold
 
where
 
standard deferral
 
rates apply).
 
A KRT’s
 
deferred compensation
 
award
will only vest if the Group performance
 
conditions are met. Consistent
 
with all other employees, the deferred
 
portion of
a KRT’s compensation is also subject
 
to forfeiture or reduction if the KRT
 
commits harmful acts.
 
Fixed and variable compensation
 
for Key Risk Takers
1
Total for 2022
Not deferred
Deferred
2
Total for 2021
USD m, except where indicated
Amount
%
Amount
%
Amount
%
Amount
Total compensation
Amount
 
1,292
 
100
 
790
 
61
 
502
 
39
 
1,561
Number of beneficiaries
 
699
 
699
Fixed compensation
3,4
 
438
 
34
 
438
 
100
 
0
 
0
 
477
Cash-based
 
435
 
34
 
435
 
474
Equity-based
 
3
 
0
 
3
 
3
Variable compensation
 
855
 
66
 
353
 
41
 
502
 
59
 
1,084
Cash
5
 
353
 
27
 
353
 
418
Long-Term Incentive Plan (LTIP)
 
/ Equity Ownership
Plan (EOP) / Fund Ownership Plan (FOP)
6
 
306
 
24
 
306
 
423
Deferred Contingent Capital Plan (DCCP)
6
 
196
 
15
 
196
 
243
1 Includes employees with a total compensation
 
exceeding USD / CHF 2.5m (Highly
 
Paid Employees), excludes
 
payments made to individuals related to their
 
time as GEB member.
 
2 Based on the specific
 
plan vesting
and reflecting the total
 
value at grant,
 
which may
 
differ from the expense
 
recognized in the income
 
statement in accordance
 
with IFRS.
 
3 Excludes benefits
 
and employer’s
 
contributions to retirement
 
benefits plan.
Includes social security contributions
 
paid by KRTs
 
but excludes the legally
 
required social
 
security contributions paid
 
by UBS.
 
4 Includes base salary
 
and role-based allowances.
 
5 Includes allocation
 
of vested but
blocked shares,
 
in line with regulatory
 
requirements where applicable.
 
6 KRTs who
 
are also MRTs
 
do not receive dividend
 
and interest payments.
 
Accordingly, the
 
amounts for the EOP
 
/ LTIP
 
reflect the fair value
 
of
the non-dividend-bearing awards
 
and for the DCCP the fair
 
value of the granted
 
non-interest-bearing awards.
Deferred compensation of the GEB and
 
KRTs
The
 
table
 
below
 
shows
 
the
 
current
 
economic
 
value
 
of
 
unvested
 
outstanding
 
deferred
 
variable
 
compensation
 
awards
subject to ex post adjustments. For
 
share-based plans,
 
the economic value is determined based on the closing share price
on
 
31 December
 
2022.
 
For
 
notional
 
funds,
 
it is
 
determined
 
using
 
the
 
latest available
 
market price
 
for
 
the
 
underlying
funds at year-end 2022,
 
and for deferred cash plans,
 
it is determined based on the outstanding amount of cash owed to
award recipients.
 
Deferred compensation
 
of the GEB and KRTs
1,2,3
USD m, except where indicated
Relating to awards
for 2022
4
Relating to
awards for prior
years
5
Total
of which: exposed to
ex-post explicit and /
 
or implicit adjustments
Total deferred
compensation
year-end 2021
Total amount of
deferred compensation
paid out in 2022
6
GEB
Deferred Contingent Capital Plan
 
25
 
86
 
111
 
100%
 
98
 
21
Equity Ownership Plan (including notional funds)
 
45
 
45
 
100%
 
78
 
27
Long-Term Incentive Plan
 
42
 
118
 
160
 
100%
 
119
KRTs
Deferred Contingent Capital Plan
 
196
 
907
 
1,104
 
100%
 
1,183
 
159
Equity Ownership Plan (including notional funds)
 
306
 
905
 
1,210
 
100%
 
1,414
 
355
Long-Term Incentive Plan
 
184
 
184
 
100%
 
235
Total GEB and KRTs
 
569
 
2,245
 
2,814
 
3,127
 
562
1 Based
 
on the
 
specific
 
plan vesting
 
and reflecting
 
the economic
 
value of
 
the outstanding
 
awards,
 
which
 
may differ
 
from the
 
expense
 
recognized
 
in the
 
income statement
 
in accordance
 
with IFRS.
 
Year-to-year
reconciliations would
 
also need to
 
consider the
 
impacts of
 
additional items
 
including off
 
-cycle awards,
 
FX movements,
 
population changes,
 
and dividend
 
equivalent reinvestments.
 
2 Refer to
 
“Note 27 Employee
benefits: variable
 
compensation” in
 
the “Consolidated
 
financial statements”
 
section of the
 
Annual Report
 
2022 for more
 
information.
 
3 GEB
 
members and
 
KRTs who
 
are also
 
MRTs do
 
not receive
 
dividend and
interest payments.
 
Accordingly,
 
the amounts
 
for the
 
EOP /
 
LTIP
 
reflect the
 
fair value
 
of the
 
non-dividend-bearing
 
awards and
 
for the
 
DCCP the
 
fair value
 
of the
 
granted non-interest
 
-bearing
 
awards.
 
4 Where
applicable, amounts are translated
 
into US dollars at
 
the performance award
 
currency exchange rate.
 
LTIP values
 
reflect the f
 
air value awarded at
 
grant.
 
5 Takes
 
into account the ex post
 
implicit adjustments,
 
given
the share
 
price movements
 
since grant.
 
Where applicable,
 
amounts are
 
translated from
 
award currency
 
into US
 
dollars using
 
FX rates
 
as of
 
31 December
 
2022. LTIP
 
values reflect
 
the fair
 
value awarded
 
at grant.
 
6 Valued at distribution
 
price and FX rate for all awards
 
distributed in 2022.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
234
 
The table below shows the
 
value of actual
 
ex post explicit
 
and implicit adjustments to outstanding deferred compensation
in the 2022
 
financial year for GEB members and KRTs.
Ex post adjustments
 
occur
 
after an
 
award has
 
been granted.
 
Explicit adjustments
 
occur when
 
we adjust
 
compensation
by forfeiting deferred awards.
 
Implicit adjustments are unrelated to
 
any action taken by the firm and occur as a result
 
of
price movements that affect
 
the value of an award.
The total
 
value
 
of ex
 
post
 
explicit adjustments
 
made to
 
UBS
 
share
 
awards
 
in 202
 
2,
 
based
 
on
 
the approximately
 
5.8m
shares forfeited during 202
 
2,
 
is a reduction of USD 110m.
 
GEB and KRTs
 
ex post explicit
 
and implicit adjustments
 
to deferred
 
compensation
 
Ex post explicit adjustments
to unvested awards
1
Ex post implicit adjustments
to unvested awards
2
USD m
31.12.22
31.12.21
31.12.22
31.12.21
GEB
Deferred Contingent Capital Plan
 
0
 
0
 
0
 
0
Equity Ownership Plan (including notional funds,
 
if applicable)
 
0
 
0
 
9
 
17
Long-Term Incentive Plan
 
0
 
0
 
25
 
21
KRTs
Deferred Contingent Capital Plan
 
(8)
 
(14)
 
0
 
0
Equity Ownership Plan (including notional funds)
 
 
(4)
 
(16)
 
129
 
250
Long-Term Incentive Plan
 
(1)
 
38
 
47
Total GEB and KRTs
 
(12)
 
(31)
 
201
 
335
1 For notional
 
share awards,
 
ex post explicit
 
adjustments are calculated
 
as units forfeited
 
during the year,
 
valued at the
 
share price on 31
 
December 2022
 
(USD 18.67) for
 
2022 (which may
 
differ from the expense
recognized in the income statement in
 
accordance with IFRS). The
 
2021 data is valued
 
using the share price on 31 December
 
2021 (USD 17.87).
 
For LTIP,
 
the forfeited units reflect the fair value
 
awarded at grant. For
the notional funds awarded to employees
 
in investment areas within
 
Asset Management
 
under the FOP,
 
this represents the forfeiture
 
credits recognized
 
in 2022 and 2021. For the
 
DCCP,
 
the fair value at
 
grant of the
forfeited awards during the year is reflected.
 
2 Ex post implicit adjustments for
 
UBS shares are calculated based
 
on the difference between
 
the weighted average gra
 
nt date fair value and the share price
 
at year-end.
The amount for
 
notional funds is calculated
 
using the mark-
 
to-market change
 
during 2022 and 2021.
 
For the GEB
 
member who was
 
appointed to the GEB
 
during 2022, awards
 
have been fully
 
reflected in the
 
GEB
entries.
Material Risk Takers
For relevant EU-
 
or UK-regulated entities, we identify
 
individuals who are deemed to be
 
Material Risk Takers (MRTs)
 
based
on local regulatory requirements, including the respective EU Commission Delegated Regulation, the fifth iteration of the
EU Capital Requirements
 
Directive (CRD
 
V) and equivalent UK
 
requirements, as
 
applicable. This group
 
consists of senior
management, risk takers,
 
selected staff
 
in control
 
or support
 
functions and
 
certain highly compensated
 
employees. For
2022,
 
UBS identified 616 MRTs
 
in relation to its relevant EU or UK
 
entities.
Variable
 
compensation
 
awarded
 
to
 
MRTs
 
is
 
subject
 
to
 
additional
 
deferral
 
and
 
other
 
requirements.
 
These
 
include
 
a
maximum
 
variable
 
to
 
fixed
 
compensation
 
ratio
 
of
 
200%
 
based
 
on
 
approval
 
through
 
relevant
 
shareholder
 
votes,
 
a
minimum deferral
 
rate of
 
40% or
 
60% (depending
 
on role /
 
variable compensation
 
level) on performance
 
awards and
delivery of at least
 
50% of any upfront performance award in UBS shares that
 
are vested but blocked for
 
12 months after
grant.
Deferred awards
 
granted to
 
MRTs under
 
UBS’s deferred
 
compensation plans
 
for their
 
performance in
 
2022
 
are subject
to 6-
 
or 12-month blocking periods
 
post vesting and do not pay out
 
dividends or interest during the deferral period.
For up to seven years after
 
grant, performance awards
 
granted to MRTs are subject
 
to clawback provisions, which
 
allow
the
 
firm
 
to
 
claim
 
repayment
 
of
 
both
 
the
 
upfront
 
and
 
the
 
vested
 
deferred
 
element
 
of
 
any
 
performance
 
award
 
if
 
an
individual is found to have contributed substantially
 
to significant financial losses for
 
the Group or corporate structure in
scope, a material downward
 
restatement of disclosed results, or engaged
 
in misconduct and / or failed to take expected
actions that contributed to significant reputational
 
harm.
LTIP awards granted
 
to UK MRTs and SMFs
 
are subject to
 
an additional non
 
-financial conduct-related
 
metric as required
by UK regulation.
UK Senior Managers and Certification
 
Regime
The
 
Senior
 
Managers
 
and
 
Certification
 
Regime
 
(the
 
SMCR)
 
of
 
the
 
UK
 
Prudential
 
Regulation
 
Authority
 
and
 
Financial
Conduct Authority requires
 
that individuals with
 
specified responsibilities,
 
performing
 
certain significant functions
 
and /
or those in certain other identified categories
 
be designated as SMFs.
Subject to de minimis
 
and other compensation-related considerations, variable compensation awards made
 
to SMFs must
comply with specific requirements, including longer
 
deferral, blocking and clawback
 
periods. The deferral
 
period for SMFs
is seven years, with the deferred performance awards vesting no faster than pro rata from years 3 to
 
7,
 
except those that
have total compensation below GBP 500,000 and variable
 
incentive accounting for less than 33% of
 
total compensation,
for whom a five-year deferral period (instead of a
 
seven-year
 
period)
 
applies. Such awards are also subject to a
 
12-month
blocking
 
period
 
post
 
vesting.
 
The
 
clawback
 
policy
 
for
 
SMFs
 
permits
 
clawback
 
for
 
up
 
to
 
10
 
years
 
from
 
the
 
date
 
of
performance award
 
grants (applicable
 
if an
 
individual is
 
subject to
 
an investigation
 
at the
 
end
 
of the
 
initial seven-year
clawback
 
period).
 
All
 
SMFs
 
are
 
also
 
MRTs
 
and,
 
as
 
such,
 
subject
 
to
 
the
 
same
 
prohibitions
 
on
 
dividend
 
and
 
interest
payments.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
235
 
Control functions and Group Internal
 
Audit
Our
 
control
 
functions
 
must
 
be
 
independent
 
in
 
order
 
to
 
monitor
 
risk
 
effectively.
 
Therefore,
 
their
 
compensation
 
is
determined separately from
 
the revenue areas
 
that they oversee, supervise or
 
monitor.
 
Their performance award
 
pool is
based not on
 
the performance of these
 
businesses, but on
 
the performance of
 
the Group as
 
a whole. We also
 
consider
other
 
factors,
 
such
 
as
 
how
 
effectively
 
the
 
function
 
has
 
performed
 
and
 
our
 
market
 
position.
 
Decisions
 
on
 
individual
compensation
 
for the
 
senior managers
 
of the
 
control
 
functions are
 
made by
 
the
 
function heads
 
and
 
approved
 
by the
Group CEO. Decisions on
 
individual compensation for the members of Group Internal Audit (GIA) are
 
made by the Head
GIA
 
and
 
approved
 
by
 
the
 
Chairman. Following
 
a
 
proposal
 
by
 
the
 
Chairman,
 
total compensation
 
for
 
the
 
Head
 
GIA
 
is
approved by the Compensation
 
Committee.
 
 
2022 Group personnel expenses
The
 
number
 
of
 
personnel
 
employed
 
as
 
of
 
31 December
 
2022
 
increased
 
by
 
1,212
 
to
 
72,597
 
(full-time
 
equivalents)
compared with 31 December 2021.
The
 
table
 
below
 
shows
 
our
 
total
 
personnel
 
expenses
 
for
 
2022,
 
including
 
salaries,
 
pension
 
expenses,
 
social
 
security
contributions,
 
variable
 
compensation
 
and
 
other
 
personnel
 
costs.
 
Variable
 
compensation
 
includes
 
cash
 
performance
awards paid in 2023
 
for the 2022 performance
 
year,
 
amortization of unvested deferred awards granted in previous years
and the cost of deferred awards granted to
 
employees that are eligible for retirement in the context of the compensation
framework at the date of grant.
The performance award
 
pool reflects the
 
value of performance
 
awards granted
 
relating to
 
the 2022
 
performance year,
including
 
awards
 
that are
 
paid
 
out immediately
 
and
 
those
 
that are
 
deferred.
 
To
 
determine
 
our variable
 
compensation
expenses,
 
the
 
following
 
adjustments
 
are
 
required
 
in
 
order
 
to
 
reconcile
 
the
 
performance
 
award
 
pool
 
to
 
the
 
expenses
recognized in the Group’s
 
financial statements prepared
 
in accordance with IFRS:
–
 
a reduction
 
for expenses
 
deferred to
 
future periods
 
(amortization of
 
unvested
 
awards granted
 
in 2023
 
for the 2022
performance year) and accounting
 
adjustments;
 
and
 
–
 
an addition for the 2022
 
amortization of unvested deferred awards
 
granted in prior years.
As a
 
large part of
 
compensation consists
 
of deferred
 
awards, the
 
amortization of
 
unvested deferred
 
awards granted
 
in
prior years forms a significant part
 
of the IFRS expenses in both
 
2022 and 2023.
›
 
Refer to “Note 6
 
Personnel expenses”
 
and “Note 27
 
Employee benefits:
 
variable compensation”
 
in the “Consolidated
 
financial
statements” section
 
of our Annual
 
Report 2022 for
 
more information
 
Personnel expenses
Expenses recognized in the IFRS income
 
statement
USD m
Related to the
performance year 2022
Related to prior
performance years
 
Total expenses
recognized in
2022
Total expenses
recognized in
2021
Total expenses
recognized in
2020
Salaries
1
 
7,045
 
0
 
7,045
 
7,339
 
7,023
Non-deferred cash
 
2,276
 
(16)
 
2,260
 
2,373
 
2,141
Deferred compensation awards
 
364
 
581
 
945
 
817
 
1,068
of which: Equity Ownership Plan
 
202
 
235
 
437
 
363
 
463
of which: Deferred Contingent Capital Plan
 
129
 
219
 
349
 
297
 
463
of which: Long-Term Incentive
 
Plan
 
11
 
32
 
43
 
73
 
54
of which: Fund Ownership Plan
 
21
 
95
 
116
 
84
 
88
Variable compensation –
 
performance awards
 
2,640
 
566
 
3,205
 
3,190
 
3,209
Variable compensation –
 
financial advisors
2
 
3,799
 
709
 
4,508
 
4,860
 
4,091
Variable compensation –
 
other
3
 
169
 
71
 
241
 
229
 
220
Total variable compensation
4
 
6,608
 
1,346
 
7,954
 
8,280
 
7,520
Contractors
 
323
 
0
 
323
 
381
 
375
Social security
 
903
 
40
 
944
 
978
 
899
Pension and other
 
post-employment benefit plans
5
 
794
 
0
 
794
 
833
 
845
Other personnel expenses
 
598
 
23
 
621
 
576
 
561
Total personnel expenses
 
16,271
 
1,410
 
17,680
 
18,387
 
17,224
1 Includes role-based allowances.
 
2 Financial advisor
 
compensation consists
 
of cash and
 
deferred compensation awards
 
and is based on compensable
 
revenues and firm
 
tenure using a formulaic
 
approach. It also
includes expenses
 
related to compensation
 
commitments with
 
financial advisors
 
entered into
 
at the time
 
of recruitment
 
that are
 
subject to
 
vesting requirements.
 
3 Consists
 
of replacement
 
payments, forfeiture
credits, severance
 
payments, retention
 
plan payments
 
and interest expense
 
related to the
 
Deferred Contingent
 
Capital Plan.
 
4 Refer to
 
“Note 27
 
Employee benefits: variable
 
compensation” in
 
the “Consolidated
financial statements”
 
section of our Annual Report
 
2022 for more information.
 
5 Refer to “Note 26
 
Post-employment
 
benefit plans” in the “Consolidated
 
financial statements”
 
section of our Annual Report
 
2022
for more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
236
 
Deferred compensation
Vesting of outstanding awards granted
 
in prior years subject to performance
 
metrics and thresholds
The tables
 
below
 
show the
 
extent to
 
which the
 
performance metrics
 
and
 
thresholds
 
for awards
 
granted
 
in prior
 
years
have been met and the related vesting
 
in 2023.
 
Long-Term
 
Incentive Plan (LTIP)
 
2019 (performance period 2020–2022)
Performance metrics
Performance achievement
1
Vesting
Return on common equity tier 1 capital
(RoCET1) and relative Total
 
Shareholder
Return (rTSR)
The overall achievement level
 
is 98% of the maximum
opportunity (of up to 100%)
 
,
 
based on outcomes for
rTSR (weighted 50%) and RoCET1
 
(weighted 50%).
-
 
For GEB, the first installment will
 
vest in 2023 and the
remaining tranches
 
will vest in 2024 and 2025
accordingly.
 
For context, and as outlined in our 2019
Compensation Report, up
 
to CHF 7.3m, or 30%, of
the 2019 LTIP
 
awards at grant for GEB members
 
active
in March 2017 continues to
 
be at risk and directly
linked to the final resolution
 
of the French cross-
border matter.
 
-
 
For other select senior management,
 
the full award
will vest in 2023.
1
As disclosed in our Compensation
 
Report 2019,
 
LTIP awards
 
for the 2019
 
performance year
 
were awarded
 
at a value
 
of 62.25% of
 
maximum, which
 
reflected our best estimate
 
of the fair value
 
of the award.
 
The
maximum number of shares was
 
determined by dividing the awarded
 
amount by the fair value
 
of the award at the date of grant,
 
divided by CHF 12.919 or USD 13.141,
 
the average closing
 
price of UBS shares over the
last ten trading days leading
 
up to and including the grant
 
date.
›
 
Refer to “Performance
 
achievement of the
 
2019 LTIP granted in 2020” in
 
the “Group compensation”
 
section of this report
 
for more
information
 
 
The
 
below
 
EOP
 
and
 
DCCP
 
thresholds
 
have
 
been
 
set
 
to
 
support
 
the
 
sustainability
 
of
 
the
 
organization
 
and
 
represent
minimum performance levels to retain
 
the awards.
 
Equity Ownership Plan
 
(EOP) 2017
 
/ 2018,
 
EOP 2018 / 2019,
 
EOP 2019 / 2020 and EOP 2020 / 20
 
21
Thresholds
Threshold achievement
1
Vesting
Return on common equity tier 1 capital
(RoCET1) and divisional return on
attributed equity
The Group and divisional thresholds
 
have been
satisfied.
The following installments vest in
 
full:
-
 
for EOP 2017 / 2018,
 
the third and final installment
for GEB members;
-
 
for EOP 2018 / 2019,
 
the second installment for the
GEB members;
 
-
 
for EOP 2019 / 2020,
 
the second installment for all
other employees covered under
 
the plan; and
-
 
for EOP 2020 / 2021,
 
the first installment for all other
employees covered under
 
the plan.
 
Deferred Contingent Capital
 
Plan (DCCP) 2017 / 2018
Thresholds
Threshold achievement
1
Vesting
Common equity tier 1 (CET1)
 
capital
ratio, viability event and, additionally
 
for
GEB, Group profit
 
before tax
The thresholds have been satisfied.
-
 
DCCP 2017 / 2018 vests in full.
1
 
Performance may be adjusted for
 
disclosed items generally
 
not representative of
 
underlying business performance
 
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
237
 
Audited |
 
Share ownership /
 
entitlements of GEB
 
members
1
Name, function
on
31 December
Number of
unvested
shares / at
risk
2
Number of
vested shares
Total number
of shares
Potentially
conferred
voting
rights in %
Ralph A.J.G. Hamers,
 
Group Chief Executive Officer
2022
 
349,441
 
5,238
 
354,679
 
0.023
2021
 
122,453
 
2,673
 
125,126
 
0.008
Christian Bluhm, Group Chief Risk Officer
2022
 
707,979
 
0
 
707,979
 
0.046
2021
 
654,579
 
226
 
654,805
 
0.041
Mike Dargan, Group Chief Digital and Information
 
Officer
2022
 
386,141
 
17,955
 
404,096
 
0.026
2021
 
240,343
 
82,743
 
323,086
 
0.020
Kirt Gardner, former Group
 
Chief Financial Officer
2022
-
-
-
-
2021
 
780,640
 
236,421
 
1,017,061
 
0.063
Suni Harford, President Asset Management
 
2022
 
1,028,210
 
44,202
 
1,072,412
 
0.070
2021
 
636,122
 
22,199
 
658,321
 
0.041
Naureen Hassan, President UBS Americas
2022
 
0
 
0
 
0
 
0.000
2021
-
-
-
-
Robert Karofsky, President
 
Investment Bank
2022
 
1,037,028
 
364,914
 
1,401,942
 
0.092
2021
 
851,520
 
357,064
 
1,208,584
 
0.075
Sabine Keller-Busse, President
 
Personal & Corporate Banking and
 
President UBS Switzerland
 
2022
 
973,150
 
566,106
 
1,539,256
 
0.101
2021
 
798,457
 
421,491
 
1,219,948
 
0.076
Iqbal Khan, President Global Wealth Management
 
and President EMEA
2022
 
960,301
 
0
 
960,301
 
0.063
2021
 
898,111
 
113,715
 
1,011,826
 
0.063
Edmund Koh, President Asia Pacific
2022
 
724,865
 
579,937
 
1,304,802
 
0.085
2021
 
501,322
 
493,977
 
995,299
 
0.062
Barbara Levi, Group General Counsel
2022
 
407,195
 
45,818
 
453,013
 
0.030
2021
 
430,732
 
0
 
430,732
 
0.027
Tom Naratil, former Co-President
 
Global Wealth Management and President UBS
 
Americas
2022
-
-
-
-
2021
 
1,374,044
 
950,682
 
2,324,726
 
0.145
Markus Ronner,
 
Group Chief Compliance and Governance Officer
2022
 
586,283
 
0
 
586,283
 
0.038
2021
 
418,452
 
57,856
 
476,308
 
0.030
Sarah Youngwood,
 
Group Chief Financial Officer
2022
 
299,729
 
0
 
299,729
 
0.020
2021
-
-
-
-
Total
2022
 
7,460,322
 
1,624,170
 
9,084,492
 
0.593
2021
 
7,706,776
 
2,739,047
 
10,445,823
 
0.650
1 Includes all vested and unvested shares of GEB members, including those held by related parties.
 
No options were held in 2022 and 2021 by any GEB member or any of its related parties. Refer to “Note 27 Employee
benefits: variable compensation”
 
in the “Consolidated
 
financial statements”
 
section of our
 
Annual Report 2022
 
for more information.
 
2 Includes
 
shares granted under
 
variable compensation
 
plans with forfeiture
provisions. For the 2019/20
 
LTIP award, the values reflect
 
the final value. For all other LTIP
 
awards, the values reflect
 
the fair value awarded at grant. The actual
 
number of shares vesting in the future will be calculated
under the terms of the plans.
 
Refer to the “Group compensation”
 
section of this report for
 
more information about
 
the plans.
p
 
Audited |
 
Total
 
of all vested and
 
unvested shares
 
of GEB members
1,2
Total
of which: vested
of which: vesting
2023
2024
2025
2026
2027
2028
Shares on 31 December 2022
 
9,084,492
 
1,624,170
 
1,572,210
 
1,952,123
 
2,020,881
 
1,281,201
 
599,733
 
34,174
2022
2023
2024
2025
2026
2027
Shares on 31 December 2021
 
10,445,823
 
2,739,047
 
1,463,440
 
1,688,568
 
2,112,516
 
1,488,544
 
877,856
 
75,852
1 Includes shares held by related
 
parties.
 
2 Includes shares granted under
 
variable compensation
 
plans with forfeiture provisions.
 
The actual number
 
of shares vesting in the future will
 
be calculated under the terms
of the plans. Refer to the “Group
 
compensation” section
 
of this report for more information.
p
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
238
 
 
Audited |
 
Number of shares
 
of BoD members
1
Name, function
on 31 December
Number of shares held
Voting rights in %
Colm Kelleher,
 
Chairman
2
2022
 
339,084
 
0.022
2021
-
Lukas Gähwiler, Vice
 
Chairman
2, 3
2022
 
283,907
 
0.019
2021
-
Axel A. Weber, former
 
Chairman
2
2022
-
2021
 
1,148,369
 
0.071
Jeremy Anderson, Senior Independent
 
Director
2022
 
119,660
 
0.008
2021
 
97,518
 
0.006
Claudia Böckstiegel, member
2022
 
7,814
 
0.001
2021
 
0
 
0.000
William C. Dudley, member
2022
 
66,646
 
0.004
2021
 
49,714
 
0.003
Patrick Firmenich, member
2022
 
27,275
 
0.002
2021
 
0
 
0.000
Reto Francioni,
 
member
2
2022
-
2021
 
139,609
 
0.009
Fred Hu, member
2022
 
97,543
 
0.006
2021
 
74,481
 
0.005
Mark Hughes, member
2022
 
48,497
 
0.003
2021
 
30,263
 
0.002
Nathalie Rachou, member
2022
 
31,126
 
0.002
2021
 
18,102
 
0.001
Julie G. Richardson, member
2022
 
138,204
 
0.009
2021
 
117,365
 
0.007
Dieter Wemmer, member
2022
 
132,320
 
0.009
2021
 
114,086
 
0.007
Jeanette Wong, member
2022
 
93,440
 
0.006
2021
 
68,452
 
0.004
Total
2022
 
1,385,516
 
0.090
2021
 
1,857,959
 
0.116
1 Includes blocked
 
and unblocked
 
shares held by BoD
 
members, including those
 
held by related parties.
 
No options were
 
granted in 2022
 
and 2021.
 
2 At the 2022 AGM,
 
Lukas Gähwiler
 
and Colm Kelleher
 
were
newly elected and Reto Francioni and Axel A. Weber did not stand for re-election.
 
3 Includes 203,246 unvested shares granted under variable
 
compensation plans with forfeiture provisions as
 
part of Lukas Gähwiler’s
compensation for his executive
 
roles previously held at UBS.
p
 
Audited |
 
Total
 
of all blocked and
 
unblocked shares
 
of BoD members
1
Total
of which:
unblocked
of which: blocked until
2023
2024
2025
2026
Shares on 31 December 2022
 
1,385,516
2
 
472,981
 
207,155
 
250,165
 
262,671
 
192,544
2022
2023
2024
2025
Shares on 31 December 2021
 
1,857,959
 
701,594
 
178,603
 
305,947
 
329,875
 
341,940
1 Includes shares held
 
by related parties.
 
2 Includes 203,246
 
unvested shares granted
 
under variable compensation
 
plans with forfeiture
 
provisions as part
 
of Lukas Gähwiler’s
 
compensation for
 
his executive roles
previously held at UBS.
p
 
Audited |
Loans granted to GEB members
1
 
Pursuant to
 
article 38 of
 
the Articles
 
of Association
 
(the AoA)
 
of UBS
 
Group AG,
 
GEB members
 
may be granted
 
loans.
Such
 
loans
 
are
 
made
 
in
 
the
 
ordinary
 
course
 
of
 
business
 
on
 
substantially
 
the
 
same
 
terms
 
as
 
those
 
granted
 
to
 
other
employees,
 
including
 
interest
 
rates
 
and
 
collateral,
 
and
 
neither
 
involve
 
more
 
than
 
the
 
normal
 
risk of
 
collectability
 
nor
contain any other unfavorable features
 
for the firm. The total
 
amount of such loans
 
must not exceed CHF
 
20m per GEB
member.
 
CHF,
 
except where indicated
2
USD
(for reference)
Name, function
on 31 December
Loans
3
Loans
3
Christian Bluhm, Group Chief Risk Officer (highest loan
 
in 2022)
2022
 
6,927,000
 
7,494,391
Christian Bluhm, Group Chief Risk Officer (highest loan
 
in 2021)
2021
 
7,059,000
Aggregate of all GEB members
4
2022
 
30,752,035
 
33,270,934
2021
 
29,635,590
1 No loans have
 
been granted
 
to related parties
 
of the GEB
 
members at conditions
 
not customary
 
in the market.
 
2 Swiss franc
 
and US dollar
 
amounts disclosed
 
represent local
 
currency amounts
 
translated at
 
the
relevant year-end closing exchange
 
rate.
 
3 All loans granted
 
are secured loans.
 
4 No unused uncommitted credit
 
facilities in 2022 and 202
 
1.
p
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
239
 
Audited |
Loans granted to BoD members
1
Pursuant to article 33 of the
 
AoA of UBS Group AG, loans to independent BoD members are made
 
in the ordinary course
of business at general market conditions. The Vice Chairman, given the full-time nature of his role, may
 
be granted loans
in the ordinary course of business on substantially the same
 
terms as those granted to employees, including interest rates
and collateral.
 
Such loans
 
neither involve
 
more than
 
the normal
 
risk of
 
collectability
 
nor contain
 
any other unfavorable
features for the firm. The total amount
 
of such loans must not
 
exceed CHF 20m per BoD member.
 
CHF,
 
except where indicated
2
USD
(for reference)
on 31 December
Loans
3,4
Loans
3,4
Aggregate of all BoD members
2022
 
0
 
0
2021
 
1,500,000
1 No loans have
 
been granted to
 
related parties
 
of the BoD members
 
at conditions
 
not customary in the
 
market.
 
2 Swiss franc
 
and US dollar
 
amounts disclosed
 
represent local
 
currency amounts
 
translated at the
relevant year-end closing exchange
 
rate.
 
3 All loans granted
 
are secured loans.
 
4 No loans in 2022 and CHF
 
1,500,000 for Reto
 
Francioni in 2021.
p
 
Audited |
 
Compensation paid to
 
former BoD and
 
GEB members
1
CHF,
 
except where indicated
2
USD
(for reference)
For the year
Compensation
Benefits
Total
Total
Former BoD members
2022
 
0
 
0
 
0
 
0
2021
 
0
 
0
 
0
Aggregate of all former GEB members
3
2022
 
0
 
89,657
 
89,657
 
97,001
2021
 
0
 
187,876
 
187,876
Aggregate of all former BoD and GEB members
2022
 
0
 
89,657
 
89,657
 
97,001
2021
 
0
 
187,876
 
187,876
1 Compensation or remuneration that is related to the former members’
 
activity on the BoD or GEB or that is not at market conditions.
 
2 Swiss franc and US dollar amounts disclosed represent local currency
 
amounts
translated at the relevant year
 
-end closing exchange
 
rate.
 
3 Includes benefit payments in
 
2022 and 2021 to
 
two former GEB members.
 
 
 
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
240
 
Provisions of the Articles of Association
 
related to compensation
Swiss
 
say-on-pay
 
provisions
 
give
 
shareholders
 
of
 
companies
 
listed
 
in
 
Switzerland significant
 
influence
 
over
 
board
 
and
management compensation. At UBS, this is achieved by means of
 
an annual binding say-on-pay vote in accordance with
the following provisions
 
of the AoA.
Say on pay
 
In line with article 43 of the AoA,
 
the General Meeting approves proposals
 
from the BoD in relation
 
to:
a) the maximum aggregate amount
 
of compensation of the BoD
 
for the period until the next AGM;
b) the maximum aggregate amount
 
of fixed compensation of the GEB
 
for the following financial year; and
c) the aggregate amoun
 
t
 
of variable compensation of the GEB
 
for the preceding financial year.
The
 
BoD
 
may submit
 
for
 
approval
 
by
 
the
 
General
 
Meeting
 
deviating
 
or
 
additional
 
proposals
 
relating
 
to
 
the
 
same
 
or
different periods. If the General Meeting does not
 
approve a proposal from the BoD, the BoD will determine, taking into
account all relevant factors, the
 
respective (maximum) aggregate
 
amount or (maximum) partial amounts
 
and submit the
amount(s) so determined for approval by the
 
General Meeting. UBS Group
 
AG or companies controlled by it may pay or
grant compensation prior to approval
 
by the General Meeting, subject to subsequent
 
approval.
Principles of compensation
In line with
 
articles 45
 
and 46
 
of the AoA,
 
compensation of
 
the members
 
of the
 
BoD includes
 
base remuneration
 
and
may
 
include
 
other
 
compensation
 
elements
 
and
 
benefits.
 
Compensation
 
of
 
the
 
members
 
of
 
the
 
BoD
 
is
 
intended
 
to
recognize the responsibility and governance
 
nature of their role, to attract and retain qualified individuals, and
 
to ensure
alignment with shareholders’
 
interests.
 
Compensation
 
of
 
the
 
members
 
of
 
the
 
GEB
 
includes
 
fixed
 
and
 
variable
 
compensation
 
elements.
 
Fixed
 
compensation
includes the
 
base salary
 
and
 
may include
 
other compensation
 
elements and
 
benefits. Variable
 
compensation
 
elements
are governed by financial
 
and non-financial performance measures that take into
 
account the performance of UBS Group
AG
 
and
 
/ or
 
parts
 
thereof,
 
targets in
 
relation
 
to the
 
market, other
 
companies
 
or comparable
 
benchmarks,
 
short-
 
and
long-term
 
strategic
 
objectives,
 
and
 
/
 
or
 
individual
 
targets.
 
The
 
BoD
 
or,
 
where
 
delegated
 
to
 
it,
 
the
 
Compensation
Committee, determines the
 
respective performance
 
measures, the
 
overall and individual
 
performance targets, and
 
their
achievement.
 
The
 
BoD
 
or,
 
where
 
delegated
 
to
 
it,
 
the
 
Compensation
 
Committee,
 
aims
 
to
 
ensure
 
alignment
 
with
sustainable
 
performance
 
and
 
appropriate
 
risk-taking
 
through
 
adequate
 
deferrals,
 
forfeiture
 
conditions,
 
caps
 
on
compensation,
 
harmful
 
acts provisions
 
and
 
similar
 
means with
 
regard
 
to parts
 
of or
 
all of
 
the
 
compensation.
 
Parts of
variable compensation are subject to a multi
 
-year vesting period.
Additional amount for GEB members appointed
 
after the vote on the aggregate amount
 
of compensation by the AGM
In line
 
with article
 
46 of the
 
AoA of UBS
 
Group AG, if
 
the maximum aggregate
 
amount of compensation already
 
approved
by the
 
General Meeting
 
is not
 
sufficient
 
to also
 
cover the
 
compensation
 
of a
 
person
 
that becomes
 
a member
 
of or
 
is
being promoted within the
 
GEB after
 
the General Meeting
 
has approved the
 
compensation, UBS Group AG,
 
or companies
controlled by it, is authorized to pay or grant each such GEB member a supplementary amount during the compensation
period(s) already approved. The
 
aggregate pool for
 
such supplementary amounts per compensation period
 
cannot exceed
40% of the average of total annual
 
compensation paid or granted
 
to the GEB during the previous
 
three years.
›
 
Refer to
ubs.com/governance
for more information
 
 
 
 
dev_UBS_AR_2022p269i0.gif
 
Advisory vote
|
 
Corporate
 
governance
 
and
 
compensation
 
|
 
Compensation
 
241
 
 
 
 
Annual Report 2022 |
Financial
 
statements
 
|
 
Consolidated
 
financial
 
statements
 
242
 
Financial statements
Consolidated financial statements
Table of contents
244
245
246
251
251
251
252
253
254
256
258
260
260
1
277
2
280
280
3
280
4
281
5
281
6
281
7
282
8
 
 
 
285
285
9
289
10
291
11
291
12
293
13
294
14
294
15
295
16
295
17
302
18
303
303
19
314
20
328
21
330
22
332
23
335
24
337
25
340
26
347
27
350
28
354
29
355
30
356
31
357
32
358
33
 
 
 
 
Annual Report 2022 |
Financial
 
statements
 
|
 
Consolidated
 
financial
 
statements
 
243
 
361
362
363
364
365
366
371
371
 
and share information
371
372
373
374
376
377
379
379
1
396
2
399
399
3
399
4
400
5
400
6
400
7
401
8
 
404
404
9
408
10
410
11
410
12
412
13
413
14
413
15
414
16
414
17
421
18
422
422
19
433
20
447
21
449
22
451
23
454
24
456
25
459
467
27
471
28
475
29
476
30
478
31
479
32
479
33
482
34
 
 
Annual Report 2022 |
Financial
 
statements
 
|
 
Consolidated
 
financial
 
statements
 
244
 
Management’s report on internal control
 
over financial reporting
Management’s responsibility for internal
 
control over financial reporting
The
 
Board
 
of
 
Directors
 
and
 
management
 
of
 
UBS
 
Group
 
AG
 
(UBS)
 
are
 
responsible
 
for
 
establishing
 
and
 
maintaining
adequate internal control
 
over financial
 
reporting.
 
UBS’s internal control
 
over financial
 
reporting is
 
designed to
 
provide
reasonable
 
assurance regarding
 
the preparation
 
and
 
fair presentation
 
of published
 
financial statements
 
in accordance
with International Financial Reporting Standards (IFRS), as issued by the International
 
Accounting Standards Board (IASB).
UBS’s internal control over financial reporting
 
includes those policies and
 
procedures that:
–
 
pertain
 
to
 
the
 
maintenance
 
of
 
records
 
that,
 
in
 
reasonable
 
detail,
 
accurately
 
and
 
fairly
 
reflect
 
transactions
 
and
dispositions of assets;
–
 
provide reasonable
 
assurance that transactions
 
are recorded
 
as necessary to permit
 
preparation and
 
fair presentation
of financial statements,
 
and that
 
receipts and
 
expenditures of
 
the company are
 
being made
 
only in
 
accordance with
authorizations of UBS management; and
–
 
provide reasonable assurance
 
regarding prevention or timely detection
 
of unauthorized acquisition,
 
use or disposition
of the company’s assets that could
 
have a material effect on the financial statements.
Because
 
of
 
its inherent
 
limitations, internal
 
control
 
over
 
financial reporting
 
may not
 
prevent
 
or
 
detect misstatements.
Also,
 
projections
 
of any
 
evaluation of
 
effectiveness to
 
future periods
 
are subject
 
to
 
the risk
 
that controls
 
may become
inadequate
 
because
 
of
 
changes
 
in
 
conditions,
 
or
 
that
 
the
 
degree
 
of
 
compliance
 
with
 
the
 
policies
 
or
 
procedures
 
may
deteriorate.
Management’s assessment of internal control
 
over financial reporting as
 
of 31 December 2022
UBS
 
management has
 
assessed
 
the effectiveness
 
of UBS’s
 
internal control
 
over
 
financial reporting
 
as of
 
31
 
December
2022 based on the criteria
 
set forth by the Committee
 
of Sponsoring Organizations of the Treadway Commission (COSO)
in Internal Control – Integrated
 
Framework (2013 Framework). Based
 
on this assessment, management believes
 
that, as
of 31 December 2022, UBS’s
 
internal control over financial reporting
 
was effective.
The effectiveness of UBS’s internal
 
control over financial reporting as of 31
 
December 2022 has been audited by
 
Ernst &
Young
 
Ltd,
 
UBS’s
 
independent
 
registered
 
public
 
accounting
 
firm,
 
as
 
stated
 
in
 
their
 
which
 
expresses
 
an
 
unqualified
opinion on the effectiveness of UBS’s
 
internal control over financial reporting
 
as of 31 December 2022.
 
 
 
dev_UBS_AR_2022p273i0.gif
 
Annual Report 2022 |
Financial
 
statements
 
|
 
Consolidated
 
financial
 
statements
 
245
 
 
 
dev_UBS_AR_2022p274i0.gif
 
Annual Report 2022 |
Financial
 
statements
 
|
 
Consolidated
 
financial
 
statements
 
246
 
 
 
dev_UBS_AR_2022p275i0.gif
 
Annual Report 2022 |
Financial
 
statements
 
|
 
Consolidated
 
financial
 
statements
 
247
 
 
dev_UBS_AR_2022p276i0.gif
 
Annual Report 2022 |
Financial
 
statements
 
|
 
Consolidated
 
financial
 
statements
 
248
 
 
dev_UBS_AR_2022p277i0.gif
 
Annual Report 2022 |
Financial
 
statements
 
|
 
Consolidated
 
financial
 
statements
 
249
 
 
dev_UBS_AR_2022p278i0.gif
 
Annual Report 2022 |
Financial
 
statements
 
|
 
Consolidated
 
financial
 
statements
 
250
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
251
 
 
UBS Group AG consolidated financial statements
Primary financial statements and share information
Audited |
Income statement
For the year ended
USD m
Note
31.12.22
31.12.21
31.12.20
Interest income from financial instruments measured
 
at amortized cost and fair value through
other comprehensive income
 
3
 
11,782
8,533
8,810
Interest expense from financial instruments measured
 
at amortized cost
 
3
 
(6,564)
(3,259)
(4,247)
Net interest income from financial instruments measured
 
at fair value through profit or
 
loss and other
 
3
 
1,403
1,431
1,299
Net interest income
 
3
 
6,621
6,705
5,862
Other net income from financial instruments measured
 
at fair value through profit or
 
loss
 
3
 
7,517
5,850
6,960
Fee and commission income
 
4
 
20,789
24,372
20,961
Fee and commission expense
 
4
 
(1,823)
(1,985)
(1,775)
Net fee and commission income
 
4
 
18,966
22,387
19,186
Other income
 
5
 
1,459
452
1,076
Total revenues
34,563
35,393
33,084
Credit loss expense / (release)
19
29
(148)
694
Personnel expenses
 
6
 
17,680
18,387
17,224
General and administrative expenses
 
7
 
5,189
5,553
4,885
Depreciation, amortization and impairment of non
 
-financial assets
11, 12
2,061
2,118
2,126
Operating expenses
24,930
26,058
24,235
Operating profit / (loss) before
 
tax
9,604
9,484
8,155
Tax expense / (benefit)
 
 
8
 
1,942
1,998
1,583
Net profit / (loss)
7,661
7,486
6,572
Net profit / (loss) attributable to non-controlling
 
interests
32
29
15
Net profit / (loss) attributable to shareholders
7,630
7,457
6,557
Earnings per share (USD)
Basic
2.34
2.14
1.83
Diluted
2.25
2.06
1.77
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
252
 
 
Statement of comprehensive
 
income
For the year ended
USD m
Note
31.12.22
31.12.21
31.12.20
Comprehensive income attributable
 
to shareholders
Net profit / (loss)
7,630
7,457
6,557
Other comprehensive income that
 
may be reclassified to the income statement
Foreign currency translation
Foreign currency translation movements related
 
to net assets of foreign operations,
 
before tax
(894)
(1,076)
2,103
Effective portion of changes in fair value of hedging
 
instruments designated as net investment hedges,
 
before tax
337
498
(936)
Foreign currency translation differences on foreign
 
operations reclassified to the
 
income statement
32
(2)
(7)
Effective portion of changes in fair value of hedging
 
instruments designated as net investment hedges reclassified
 
to
the income statement
(4)
10
2
Income tax relating to foreign currency
 
translations, including the effect of net investment
 
hedges
4
35
(67)
Subtotal foreign currency translation, net
 
of tax
(525)
(535)
1,095
Financial assets measured at
 
fair value through other comprehensive
 
income
Net unrealized gains / (losses), before tax
(440)
(203)
223
Net realized (gains) / losses reclassified to the income
 
statement from equity
1
(9)
(40)
Reclassification of financial assets to Other financial assets
 
measured at amortized cost
1
449
Income tax relating to net unrealized gains / (losses)
(3)
55
(48)
Subtotal financial assets measured at fair value through
 
other comprehensive income, net of tax
6
(157)
136
Cash flow hedges of interest rate
 
risk
25
Effective portion of changes in fair value of derivative
 
instruments designated as cash flow hedges,
 
before tax
(5,758)
(992)
2,012
Net (gains) / losses reclassified to the income statement
 
from equity
(159)
(1,073)
(770)
Income tax relating to cash flow hedges
1,124
390
(231)
Subtotal cash flow hedges, net of tax
(4,793)
2
(1,675)
1,011
Cost of hedging
25
Cost of hedging, before tax
45
(32)
(13)
Income tax relating to cost of hedging
 
0
6
0
Subtotal cost of hedging, net of tax
45
(26)
(13)
Total other comprehensive
 
income that may be reclassified to
 
the income statement, net of tax
(5,267)
(2,393)
2,230
Other comprehensive income that will not
 
be reclassified to the income statement
Defined benefit plans
26
Gains / (losses) on defined benefit plans, before
 
tax
(73)
2
(327)
Income tax relating to defined benefit plans
63
(7)
109
Subtotal defined benefit plans, net of tax
(10)
(5)
(218)
Own credit on financial liabilities designated
 
at fair value
20
Gains / (losses) from own credit on financial liabilities designated
 
at fair value, before tax
867
46
(293)
Income tax relating to own credit on
 
financial liabilities designated at fair value
(71)
0
0
Subtotal own credit on financial liabilities designated
 
at fair value, net of tax
796
46
(293)
Total other comprehensive
 
income that will not be reclassified to the
 
income statement, net of tax
786
42
(511)
Total other comprehensive
 
income
(4,481)
(2,351)
1,719
Total comprehensive
 
income attributable to shareholders
3,149
5,106
8,276
Comprehensive income attributable
 
to non-controlling interests
Net profit / (loss)
32
29
15
Total other comprehensive
 
income that will not be reclassified to the
 
income statement, net of tax
(14)
(16)
21
Total comprehensive
 
income attributable to non-controlling interests
18
13
36
Total
 
comprehensive income
 
Net profit / (loss)
7,661
7,486
6,572
Other comprehensive income
 
(4,494)
(2,367)
1,740
of which: other comprehensive income that may be reclassified to
 
the income statement
(5,267)
(2,393)
2,230
of which: other comprehensive income that will not be
 
reclassified to the income statement
772
26
(490)
Total comprehensive
 
income
 
3,167
5,119
8,312
1 Effective 1 April 2022, a portfolio of assets
 
previously classified as Financial assets
 
measured at fair value through
 
other comprehensive income was
 
reclassified to Other financial
 
assets measured at amortized cost.
Refer to Note 1b for more information.
 
2 Mainly reflects net unrealized
 
losses on US dollar
 
hedging derivatives resulting
 
from significant increases in
 
the relevant US
 
dollar long-term interest rates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
253
 
 
 
Balance sheet
USD m
Note
31.12.22
31.12.21
Assets
Cash and balances at central banks
169,445
192,817
Loans and advances to banks
 
9
 
14,792
15,480
Receivables from securities financing transactions
 
measured at amortized cost
9, 21
67,814
75,012
Cash collateral receivables on derivative
 
instruments
9, 21
35,032
30,514
Loans and advances to customers
 
9
 
387,220
397,761
Other financial assets measured at amortized cost
9, 13a
53,264
26,209
Total financial assets
 
measured at amortized cost
727,568
737,794
Financial assets at fair value held for trading
20
107,866
130,821
of which: assets pledged as collateral that may be
 
sold or repledged by counterparties
36,742
43,397
Derivative financial instruments
10, 20, 21
150,108
118,142
Brokerage receivables
20
17,576
21,839
Financial assets at fair value not held for trading
20
59,796
60,080
Total financial assets
 
measured at fair value through profit or
 
loss
335,347
330,882
Financial assets measured at
 
fair value through other comprehensive
 
income
19, 20
2,239
8,844
Investments in associates
28b
1,101
1,243
Property, equipment
 
and software
11
12,288
12,888
Goodwill and intangible assets
12
6,267
6,378
Deferred tax assets
 
8
 
9,389
8,876
Other non-financial assets
13b
10,166
10,277
Total assets
1,104,364
1,117,182
Liabilities
Amounts due to banks
 
11,596
13,101
Payables from securities financing
 
transactions measured at amortized cost
21
4,202
5,533
Cash collateral payables on derivative instruments
21
36,436
31,798
Customer deposits
14
525,051
542,007
Debt issued measured at amortized cost
16
114,621
139,155
Other financial liabilities measured at amortized cost
18a
9,575
9,001
Total financial liabilities measured
 
at amortized cost
701,481
740,595
Financial liabilities at fair value held for trading
20
29,515
31,688
Derivative financial instruments
10, 20, 21
154,906
121,309
Brokerage payables designated at
 
fair value
20
45,085
44,045
Debt issued designated at fair value
15, 20
73,638
73,799
Other financial liabilities designated at fair value
18b, 20
30,237
30,074
Total financial liabilities measured
 
at fair value through profit or
 
loss
333,381
300,916
Provisions
17a
3,243
3,518
Other non-financial liabilities
18c
9,040
11,151
Total liabilities
1,047,146
1,056,180
Equity
Share capital
304
322
Share premium
13,546
15,928
Treasury shares
(6,874)
(4,675)
Retained earnings
50,004
43,851
Other comprehensive income recognized
 
directly in equity, net of tax
(103)
5,236
Equity attributable to shareholders
56,876
60,662
Equity attributable to non-controlling
 
interests
342
340
Total equity
57,218
61,002
Total liabilities and
 
equity
1,104,364
1,117,182
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
254
 
 
Statement of changes
 
in equity
USD m
Share
capital
Share
 
premium
Treasury
shares
Retained
earnings
Balance as of 31 December 2019
338
18,064
(3,326)
34,122
Acquisition of treasury shares
(1,584)
2
Delivery of treasury shares under share-based compensation plans
(628)
719
Other disposal of treasury shares
(11)
123
2
Share-based compensation expensed in the income statement
691
Tax (expense) / benefit
18
Dividends
(1,304)
3
(1,304)
3
Translation effects recognized
 
directly in retained earnings
(49)
Share of changes in retained earnings of associates and joint ventures
(40)
New consolidations / (deconsolidations) and other
 
increases / (decreases)
4
(76)
Total comprehensive income for the year
6,046
of which: net profit / (loss)
6,557
of which: OCI, net of tax
(511)
Balance as of 31 December 2020
338
16,753
(4,068)
38,776
Acquisition of treasury shares
(3,521)
2
Delivery of treasury shares under share-based compensation plans
(675)
789
Other disposal of treasury shares
7
81
2
Cancellation of treasury shares related to the 2018–2021
 
share repurchase program
(16)
(236)
2,044
(1,792)
Share-based compensation expensed in the income statement
643
Tax (expense) / benefit
(88)
Dividends
(651)
3
(651)
3
Equity classified as obligation to purchase own
 
shares
(7)
Translation effects recognized
 
directly in retained earnings
18
Share of changes in retained earnings of associates and joint ventures
1
New consolidations / (deconsolidations) and other
 
increases / (decreases)
5
182
Total comprehensive income for the year
7,499
of which: net profit / (loss)
7,457
of which: OCI, net of tax
42
Balance as of 31 December 2021
322
15,928
(4,675)
43,851
Acquisition of treasury shares
(6,262)
2
Delivery of treasury shares under share-based compensation plans
(763)
879
Other disposal of treasury shares
(1)
164
2
Cancellation of treasury shares related to the 2021 share repurchase
 
program
6
(18)
(1,502)
3,022
(1,502)
Share-based compensation expensed in the income statement
716
Tax (expense) / benefit
13
Dividends
(834)
3
(834)
3
Equity classified as obligation to purchase own
 
shares
(15)
Translation effects recognized
 
directly in retained earnings
69
Share of changes in retained earnings of associates and joint ventures
0
New consolidations / (deconsolidations) and other
 
increases / (decreases)
4
3
Total comprehensive income for the year
8,415
of which: net profit / (loss)
7,630
of which: OCI, net of tax
786
Balance as of 31 December 2022
304
13,546
(6,874)
50,004
1 Excludes other comprehensive
 
income related to defined
 
benefit plans and own
 
credit, which is recorded
 
directly in Retained earnings.
 
2 Includes treasury
 
shares acquired and disposed
 
of by the Investment
 
Bank
in its capacity as a market-maker with regard
 
to UBS Group AG shares and related derivatives,
 
and to hedge certain issued structured
 
debt instruments. These
 
acquisitions and disposals are reported based
 
on the sum
of the net monthly movements.
 
3 Reflects the payment of an ordinary cash dividend
 
of USD
0.50
 
(2021: USD
0.37
, 2020: USD
0.73
) per dividend-bearing share.
 
From 2020 onward, Swiss tax
 
law effective 1 January
2020 requires that Switzerland-domiciled
 
companies with shares listed on a stock exchange pay no more than
50
% of dividends from capital contribution reserves,
 
with the remainder required to be paid from retained
earnings.
 
4 Mainly
 
relates to the
 
establishment
 
of a
 
banking partnership
 
with Banco
 
do Brasil.
 
In 2020,
 
UBS issued
 
a
49.99
% stake
 
in UBS Brasil
 
Serviços in
 
exchange for
 
exclusive access
 
to Banco
 
do Brasil’s
corporate clients.
 
Upon completion of the
 
transaction in
 
2020, equity attributable
 
to non-controlling
 
interests increased by
 
USD
115
m, with no material
 
effect on equity attributable
 
to shareholders.
 
5 Includes the
effects
 
related to
 
the launch
 
of UBS’s
 
operational
 
partnership entity
 
with Sumitomo
 
Mitsui Trust
 
Holdings,
 
Inc. in
 
2021.
 
6 Reflects
 
the cancellation
 
of
177,787,273
 
shares purchased
 
under UBS’s
 
2021
 
share
repurchase program from its inception in 2021
 
until 18 February 2022,
 
as approved by shareholders at the 2022
 
Annual General Meeting.
 
For shares repurchased from 2020
 
onward, Swiss tax law effective
 
1 January
2020 requires Switzerland-domiciled
 
companies with shares listed
 
on a Swiss stock exchange to reduce capital contribution
 
reserves by at least
50
% of the total capital reduction
 
amount exceeding the nominal
 
value
upon cancellation of the shares.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
255
 
 
Other comprehensive
 
income recognized
 
directly in equity,
 
net of tax
1
of which:
 
foreign currency
 
translation
of which:
 
financial assets at
fair value through OCI
of which:
 
cash flow
 
hedges
Total equity
attributable to
 
shareholders
Non-controlling
 
interests
Total equity
5,303
4,028
14
1,260
54,501
174
54,675
(1,584)
(1,584)
90
90
112
112
691
691
18
18
(2,607)
(6)
(2,613)
49
0
49
0
0
(40)
(40)
65
65
(12)
115
103
2,230
1,095
136
1,011
8,276
36
8,312
6,557
15
6,572
2,230
1,095
136
1,011
1,719
21
1,740
7,647
5,188
151
2,321
59,445
319
59,765
(3,521)
(3,521)
114
114
88
88
0
0
643
643
(88)
(88)
(1,301)
(4)
(1,305)
(7)
(7)
(18)
0
(18)
0
0
1
1
182
12
193
(2,393)
(535)
(157)
(1,675)
5,106
13
5,119
7,457
29
7,486
(2,393)
(535)
(157)
(1,675)
(2,351)
(16)
(2,367)
5,236
4,653
(7)
628
60,662
340
61,002
(6,262)
(6,262)
115
115
163
163
0
0
716
716
13
13
(1,668)
(9)
(1,677)
(15)
(15)
(69)
0
(69)
0
0
0
0
(3)
(3)
4
(7)
(3)
(5,267)
(525)
6
(4,793)
3,149
18
3,167
7,630
32
7,661
(5,267)
(525)
6
(4,793)
(4,481)
(14)
(4,494)
(103)
4,128
(4)
(4,234)
56,876
342
57,218
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
256
 
 
Share information and earnings per
 
share
Ordinary share capital
As of 31 December 2022,
 
UBS Group AG had
3,524,635,722
 
issued shares (31 December 2021:
3,702,422,995
 
shares)
with a nominal
 
value of CHF
0.10
 
each, leading
 
to a share
 
capital of CHF
352,463,572.20
. Shares
 
issued decreased
 
by
177,787,273
 
shares
 
and
 
share
 
capital decreased
 
by
 
USD
18
m
 
in
 
2022,
 
as
 
the
 
shares
 
acquired
 
under
 
the
 
2021
 
share
repurchase program
 
from its
 
inception in
 
2021
 
until 18 February 2022
 
were canceled
 
by means of
 
a capital reduction,
as approved by shareholders
 
at the 2022
 
Annual General Meeting (the AGM).
Following revisions to Swiss Corporate
 
Law that are effective
 
from 1 January 2023,
 
the Board
 
of Directors (the BoD) will
propose at the 2023
 
AGM that the shareholders approve
 
the conversion of the share capital
 
currency of UBS Group
 
AG
from the Swiss franc
 
to the US
 
dollar. This would align
 
the share capital
 
currency with the financial
 
statement presentation
currency of
 
UBS Group
 
AG. If the
 
change is
 
approved,
 
the share
 
capital of UBS
 
Group AG
 
will be slightly
 
reduced to
 
a
nominal value per share of USD
0.10
 
(from CHF
0.10
 
currently), with the amount of
 
the reduction allocated to the capital
contribution
 
reserve
 
(presented
 
as
Share
 
premium
 
in
 
the
 
consolidated
 
financial
 
statements).
 
Total
 
equity
 
reported
 
for
UBS Group AG consolidated
 
will not change.
Conditional share capital
As of 31 December 202
 
2,
 
the following conditional share capital was available
 
to UBS Group
 
AG’s BoD.
 
–
 
A maximum of
 
CHF
38,000,000
 
represented by
 
up to
380,000,000
 
fully paid registered
 
shares with
 
a nominal value
of CHF
0.10
 
each, to
 
be issued
 
through
 
the voluntary
 
or mandatory
 
exercise of
 
conversion
 
rights and
 
/ or
 
warrants
granted in
 
connection with
 
the issuance
 
of bonds or
 
similar financial instruments
 
on national
 
or international
 
capital
markets. This
 
conditional
 
capital allowance
 
was approved
 
at the
 
Extraordinary
 
General Meeting
 
(the EGM)
 
held
 
on
26 November 2014, having originally been
 
approved at the AGM of UBS AG
 
on 14 April 2010. The BoD has not made
use of such allowance.
–
 
A
 
maximum
 
of
 
CHF
12,170,583
 
represented
 
by
121,705,830
 
fully
 
paid
 
registered
 
shares
 
with
 
a
 
nominal
 
value
 
of
CHF
0.10
 
each, to be issued upon exercise
 
of employee options and stock appreciation rights issued to employees
 
and
members of the management and of the
 
BoD of UBS Group AG and its subsidiaries. This conditional capital allowance
was approved by the shareholders
 
at the same EGM in 2014.
Authorized share capital
UBS Group AG had
 
no authorized capital available to issue on
 
31 December 2022.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
257
 
Share repurchase programs
In February
 
2021,
 
UBS
 
initiated a
 
share
 
repurchase
 
program
 
of up
 
to CHF
4
bn. Under
 
this program,
 
UBS
 
repurchased
88
m shares in 2022 for a total acquisition
 
cost of USD
1,637
m (CHF
1,516
m).
The 2021 program was concluded on 29 March 2022 and the
177,787,273
 
shares repurchased under this program from
its inception in 2021
 
until 18 February 2022
 
for a total acquisition cost of
 
USD
3,022
m (CHF
2,775
m) were canceled by
means
 
of
 
a
 
capital
 
reduction,
 
as
 
approved
 
by
 
shareholders
 
at
 
the
 
2022
 
AGM.
 
UBS
 
intends
 
to
 
cancel
 
the
 
remaining
62,548,000
 
shares purchased under the 2021 program,
 
subject to shareholder approval at the 2023
 
AGM.
In March 2022, UBS commenced a new two-year share repurchase program of up
 
to USD
6
bn. Under this program, UBS
repurchased
234
m shares in 2022
 
for a total acquisition
 
cost of USD
3,944
m (CHF
3,808
m). UBS also
 
intends to cancel
the shares
 
purchased under
 
the 2022
 
program by means
 
of a
 
capital reduction,
 
pending approval
 
by shareholders
 
at a
future AGM.
 
As of or for the year ended
31.12.22
31.12.21
31.12.20
Shares outstanding
Shares issued
Balance at the beginning of the year
3,702,422,995
3,859,055,395
3,859,055,395
Shares canceled
(177,787,273)
1
(156,632,400)
2
Balance at the end of the year
3,524,635,722
3,702,422,995
3,859,055,395
Treasury shares
Balance at the beginning of the year
302,815,328
307,477,002
243,021,296
Acquisitions
359,378,093
214,270,175
128,372,257
Disposals
(67,497,138)
(62,299,449)
(63,916,551)
Cancellation of second trading line treasury shares
(177,787,273)
1
(156,632,400)
2
Balance at the end of the year
416,909,010
302,815,328
307,477,002
Shares outstanding
3,107,726,712
3,399,607,667
3,551,578,393
Basic and diluted earnings (USD m)
Net profit / (loss) attributable to shareholders for basic
 
EPS
7,630
7,457
6,557
Less: (profit) / loss on own equity derivative contracts
0
0
(1)
Net profit / (loss) attributable to shareholders for diluted
 
EPS
7,630
7,457
6,556
Weighted average shares
 
outstanding
Weighted average shares outstanding for basic
 
EPS
3
3,260,938,561
3,482,963,682
3,583,176,189
Effect of dilutive potential shares resulting from notional employee
 
shares, in-the-money options and
 
warrants
outstanding
4
136,531,654
144,277,693
123,852,137
Weighted average shares outstanding for diluted
 
EPS
3,397,470,215
3,627,241,375
3,707,028,326
Earnings per share (USD)
Basic
2.34
2.14
1.83
Diluted
 
2.25
2.06
1.77
Potentially dilutive instruments
5
Employee share-based compensation awards
4,182,799
5,886,945
2,536,789
Other equity derivative contracts
1,690,247
6,553,051
11,414,728
Total
5,873,046
12,439,996
13,951,517
1 Reflects the cancellation of shares purchased under
 
UBS’s 2021 share repurchase
 
program as approved by shareholders at the 2022
 
Annual General Meeting (AGM).
 
2 Reflects the cancellation of shares purchased
under UBS’s 2018
 
–2021 share repurchase
 
program as approved
 
by shareholders at
 
the 2021 AGM.
 
3 The weighted
 
average shares
 
outstanding for basic
 
EPS are calculated
 
by taking the
 
number of
 
shares at the
beginning of the
 
period, adjusted
 
by the number
 
of shares acquired
 
or issued during
 
the period,
 
multiplied by a
 
time-weighted
 
factor for the
 
period outstanding.
 
As a result,
 
balances are affected
 
by the timing
 
of
acquisitions and issuances
 
during the period.
 
4 The weighted
 
average number
 
of shares for
 
notional employee
 
awards with pe
 
rformance conditions
 
reflects
 
all potentially dilutive
 
shares that are expected
 
to vest
under the terms of the awards.
 
5 Reflects potential shares that
 
could dilute basic
 
earnings per share in the future,
 
but were not dilutive for
 
the periods presented.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
258
 
 
Statement of cash flows
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Cash flow from / (used in)
 
operating activities
Net profit / (loss)
7,661
7,486
6,572
Non-cash items included in net
 
profit and other adjustments:
Depreciation, amortization and impairment of non
 
-financial assets
2,061
2,118
2,126
Credit loss expense / (release)
29
(148)
694
Share of net profits of associates and joint ventures and impairment
 
related to associates
(32)
(105)
(84)
Deferred tax expense / (benefit)
494
434
352
Net loss / (gain) from investing activities
(1,470)
(230)
(698)
Net loss / (gain) from financing activities
(16,587)
100
3,246
Other net adjustments
5,844
3,802
(8,076)
Net change in operating
 
assets and liabilities:
Loans and advances to banks and amounts due
 
to banks
(1,088)
2,148
3,586
Securities financing transactions measured at amortized
 
cost
4,443
(2,316)
9,588
Cash collateral on derivative instruments
76
(3,312)
(3,487)
Loans and advances to customers and customer
 
deposits
(5,163)
2,365
18,149
Financial assets and liabilities at fair value held
 
for trading and derivative financial instruments
8,006
(10,516)
11,259
Brokerage receivables and payables
6,019
8,115
(5,199)
Financial assets at fair value not held for trading
 
and other financial assets and liabilities
5,678
19,609
320
Provisions and other non-financial assets and liabilities
257
3,010
(387)
Income taxes paid, net of refunds
(1,582)
(1,134)
(1,002)
Net cash flow from / (used in) operating
 
activities
14,647
31,425
36,958
Cash flow from / (used in)
 
investing activities
Purchase of subsidiaries, associates and intangible assets
(3)
(1)
(46)
Disposal of subsidiaries, associates and intangible
 
assets
1,730
1
593
674
Purchase of property,
 
equipment and software
(1,643)
(1,841)
(1,854)
Disposal of property, equipment
 
and software
161
295
366
Purchase of financial assets measured at fair value through
 
other comprehensive income
(4,783)
(5,802)
(6,290)
Disposal and redemption of financial assets measured at
 
fair value through other comprehensive
 
income
4,084
5,052
4,530
Net (purchase) / redemption of debt securities measured at amortized
 
cost
(11,993)
(415)
(4,166)
Net cash flow from / (used in)
 
investing activities
(12,447)
(2,119)
(6,785)
Table
 
continues below.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
259
 
 
Statement of cash flows
 
(continued)
Table
 
continued from above.
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Cash flow from / (used in)
 
financing activities
Net short-term debt issued / (repaid)
(12,249)
(3,093)
23,845
Net movements in treasury shares and own
 
equity derivative activity
(6,006)
(3,341)
(1,387)
Distributions paid on UBS shares
(1,668)
(1,301)
(2,607)
Issuance of debt designated at fair value and long
 
-term debt measured at amortized cost
79,115
98,272
80,255
Repayment of debt designated at fair value and
 
long-term debt measured at amortized cost
(67,670)
(79,909)
(87,098)
Net cash flows from other financing activities
(617)
(282)
(575)
Net cash flow from / (used in)
 
financing activities
(9,094)
10,345
12,432
Total
 
cash flow
Cash and cash equivalents at the beginning
 
of the year
207,875
173,531
119,873
Net cash flow from / (used in) operating, investing
 
and financing activities
(6,895)
39,651
42,605
Effects of exchange rate differences on cash and
 
cash equivalents
(5,659)
(5,307)
11,052
Cash and cash equivalents at the end
 
of the year
2
195,321
207,875
173,531
of which: cash and balances at central banks
3
169,363
192,706
158,088
of which: loans and advances to banks
13,450
13,942
14,028
of which: money market paper
4
12,508
1,227
1,415
Additional information
Net cash flow from / (used in) operating activities
 
includes:
Interest received in cash
15,718
11,163
11,915
Interest paid in cash
8,198
4,707
6,320
Dividends on equity investments, investment
 
funds and associates received in cash
5
1,907
2,531
1,901
1 Includes cash proceeds
 
from the sales
 
of: UBS’s shareholding
 
in Mitsubishi Corp.
 
-UBS Realty Inc.;
 
UBS’s wholly
 
owned subsidiary UBS
 
Swiss Financial
 
Advisers AG; UBS’s
 
US alternative investments
 
administration
business; and UBS’s domestic
 
wealth management business in Spain.
 
Refer to Note 29 for more information.
 
Also includes dividends received
 
from associates.
 
2 USD
4,253
m, USD
3,408
m and USD
3,828
m of cash
and cash equivalents
 
(mainly reflected
 
in Loans and
 
advances to
 
banks) were
 
restricted as
 
of 31 December
 
2022, 31
 
December 2021
 
and 31 December
 
2020, respectively.
 
Refer to
 
Note 22 for
 
more information.
 
3 Includes only balances with
 
an original maturity of
 
three months or less.
 
4 Money market
 
paper is included in
 
the balance sheet
 
under Financial assets
 
at fair value held
 
for trading (31 December
 
2022: USD
2
m;
31 December 2021: USD
20
m; 31 December 2020: USD
117
m), Financial assets measured at fair value through
 
other comprehensive income (31
 
December 2022: USD
0
m; 31 December 2021: USD
0
m; 31 December
2020: USD
178
m), Financial assets
 
at fair
 
value not
 
held for trading
 
(31 December
 
2022: USD
6,048
m; 31 December
 
2021: USD
1,066
m; 31 December
 
2020: USD
536
m), and Other
 
financial assets
 
measured at
amortized cost (31
 
December 2022:
 
USD
6,459
m; 31 December
 
2021: USD
141
m; 31 December
 
2020: USD
584
m).
 
5 Includes
 
dividends received
 
from associates
 
reported within
 
Net cash
 
flow from /
 
(used in)
investing activities.
 
 
Changes in liabilities
 
arising from financing
 
activities
USD m
Debt issued
measured at
amortized cost
of which:
short-term
1
of which:
long-term
2
Debt issued
designated at fair
value
Over-the-
counter debt
instruments
3
Total
Balance as of 1 January 2021
139,232
46,666
92,566
61,243
2,060
202,535
Cash flows
5,070
(3,093)
8,163
10,076
124
15,270
Non-cash changes
(5,148)
(475)
(4,673)
2,480
(56)
(2,724)
of which: foreign currency translation
(3,175)
(475)
(2,700)
(1,617)
(65)
(4,857)
of which: fair value changes
4,097
9
4,106
of which: hedge accounting
 
and other effects
(1,972)
(1,972)
(1,972)
Balance as of 31 December 2021
139,155
43,098
96,057
73,799
2,128
215,082
Cash flows
(14,333)
(12,249)
(2,084)
13,782
(253)
(804)
Non-cash changes
(10,201)
(1,173)
(9,028)
(13,944)
(190)
(24,335)
of which: foreign currency translation
(3,526)
(1,173)
(2,353)
(1,394)
(115)
(5,035)
of which: fair value changes
(12,550)
(75)
(12,625)
of which: hedge accounting
 
and other effects
(6,675)
(6,675)
(6,675)
Balance as of 31 December 2022
114,621
29,676
84,945
73,638
1,684
189,943
1 Debt with an original contractual maturity
 
of less than one year.
 
2 Debt with an original maturity greater than
 
or equal to one year. The
 
classification of debt issued into
 
short-term and long-term does not consider
any early redemption features.
 
3 Included in balance
 
sheet line Other financial liabilities
 
designated at fair value.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
261
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
 
a) Material accounting policies
This Note
 
describes the material
 
accounting
 
policies applied
 
in the preparation
 
of the consolidated
 
financial statements
(the Financial Statements) of UBS
 
Group AG and
 
its subsidiaries (UBS or the Group).
 
On 23 February 2023,
 
the Financial
Statements were authorized
 
for issue by the Board
 
of Directors (the BoD).
 
Basis of accounting
The Financial
 
Statements have
 
been
 
prepared
 
in accordance
 
with International
 
Financial Reporting
 
Standards
 
(IFRS), as
issued by the International Accounting Standards
 
Board (the IASB),
 
and are presented in US
 
dollars (USD).
Disclosures marked as audited in
 
the “Risk, capital, liquidity and funding,
 
and balance sheet” section of this report
 
form
an integral part of the Financial Statements. These disclosures relate to requirements under
 
IFRS 7,
Financial Instruments:
Disclosures,
 
and IAS 1,
Presentation of Financial Statements,
and are not repeated
 
in this section.
 
The
 
accounting
 
policies
 
described
 
in
 
this
 
Note
 
have
 
been
 
applied
 
consistently
 
in
 
all
 
years presented
 
unless
 
otherwise
stated in Note 1b.
 
 
Critical accounting estimates and judgments
Preparation of these
 
Financial
 
Statements under
 
IFRS requires
 
management to
 
apply judgment
 
and make
 
estimates
 
and assumptions that
 
affect reported
 
amounts
of assets, liabilities, income and expenses,
 
and disclosure of contingent assets and liabilities,
 
and may involve significant uncertainty
 
at the time they are made.
Such estimates
 
and assumptions
 
are based
 
on the
 
best available
 
information. UBS
 
regularly reassesses
 
such estimates
 
and assumptions,
 
which encompass
 
historical
experience, expectations of
 
the future
 
and other
 
pertinent factors, to
 
determine their
 
continuing relevance based
 
on current
 
conditions, updating them
 
as
necessary. Changes
 
in those
 
estimates
 
and assumptions
 
may have
 
a significant
 
effect on
 
the Financial
 
Statements.
 
Furthermore, actual
 
results
 
may differ
 
significantly
from UBS’s estimates,
 
which could
 
result in significant
 
losses to the Group,
 
beyond what was
 
anticipated or provided
 
for.
 
The
 
following
 
areas
 
contain
 
estimation
 
uncertainty
 
or require
 
critical
 
judgment and
 
have
 
a significant
 
effect
 
on amounts
 
recognized
 
in
 
the Financial
Statements:
 
–
 
expected credit loss measurement
 
(refer to item 2g in this Note and
 
to Note 19);
–
 
fair value measurement (
 
refer to item 2f in this Note and
 
to Note 20);
–
 
income taxes (refer to item
 
6 in this Note and to Note 8);
–
 
provisions and contingent liabilities
 
(refer to item 9 in this Note and to Note
 
17);
–
 
post-employment benefit plans
 
(refer to item 5 in this Note and to Note 2
 
6);
–
 
goodwill (refer
 
to item 8 in this Note and to Note 12); and
–
 
consolidation of structured
 
entities (refer to item 1 in this
 
Note and to Note 28).
 
1) Consolidation
The Financial
 
Statements include
 
the financial
 
statements of
 
the parent
 
company (UBS
 
Group AG)
 
and its
 
subsidiaries,
presented as
 
a single economic
 
entity;
 
intercompany transactions
 
and balances have
 
been eliminated. UBS
 
consolidates
all entities that
 
it controls,
 
including
 
structured entities
 
(SEs), which
 
is the case
 
when it
 
has:
 
(i) power over
 
the relevant
activities of
 
the entity;
 
(ii) exposure
 
to an
 
entity‘s variable
 
returns; and
 
(iii) the ability
 
to use
 
its power
 
to affect
 
its own
returns.
Consideration is given to all facts
 
and circumstances to determine whether the Group has power over another entity,
 
i.e.,
the current ability to direct the relevant activities
 
of an entity when decisions
 
about those activities need to be
 
made.
 
Subsidiaries,
 
including
 
SEs,
 
are consolidated
 
from
 
the date
 
when
 
control
 
is gained
 
and
 
deconsolidated
 
from
 
the
 
date
when control ceases. Control,
 
or the lack thereof, is reassessed if facts and circumstances
 
indicate that there is a change
to one or more elements req
 
uired to establish that control is present.
Business
 
combinations
 
are accounted
 
for using
 
the acquisition
 
method.
 
The amount
 
of any
 
non-controlling
 
interest is
measured at the non-controlling
 
interest’s proportionate share
 
of the acquiree’s identifiable net assets.
 
›
 
Refer to Note 28
 
for more information
 
Critical accounting estimates and judgments
Each individual
 
entity is assessed
 
for consolidation in line
 
with the aforementioned
 
consolidation principles. The
 
assessment of
 
control can be
 
complex and
requires the use of significant judgment
 
,
 
in particular in determining whether UBS has power over the entity.
 
As the nature and extent of UBS’s involvement
is unique
 
for each
 
entity,
 
there is
 
no uniform
 
consolidation outcome
 
by entity.
 
Certain entities
 
within a
 
class may
 
be consolidated
 
while others
 
may not.
When carrying out the consolidation assessment, judgment
 
is exercised considering all the
 
relevant facts and circumstances, including the nature
 
and activities
of the investee, as well as the substance
 
of voting and similar rights.
 
›
 
Refer to Note 28
 
for more information
2)
 
Financial instruments
a. Recognition
UBS
 
recognizes financial
 
instruments
 
when
 
it becomes
 
a party
 
to contractual
 
provisions
 
of an
 
instrument. UBS
 
applies
settlement date accounting to
 
all standard purchases
 
and sales of non-derivative financial
 
instruments.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
262
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
In transactions where UBS acts as
 
a transferee, to the
 
extent the financial asset
 
transfer does not qualify for derecognition
by the transferor, UBS does
 
not recognize
 
the transferred instrument as its asset.
UBS also acts in a
 
fiduciary capacity, which results
 
in it holding or placing assets on
 
behalf of individuals, trusts, retirement
benefit plans
 
and other
 
institutions. Unless
 
these items
 
meet the
 
definition of
 
an asset
 
and
 
the recognition
 
criteria are
satisfied,
 
they
 
are
 
not
 
recognized
 
on
 
UBS’s
 
balance
 
sheet
 
and
 
the
 
related
 
income
 
is
 
excluded
 
from
 
the
 
Financial
Statements.
 
Client cash balances associated with derivatives
 
clearing and execution services are not
 
recognized on the balance
 
sheet
if,
 
through
 
contractual
 
agreement,
 
regulation
 
or
 
practice,
 
UBS
 
neither
 
obtains
 
benefits
 
from
 
nor
 
controls
 
such
 
cash
balances.
b. Classification, measurement and
 
presentation
Financial assets
 
Where the contractual
 
terms of a
 
debt instrument
 
result in cash
 
flows that are
 
solely payments of principal
 
and interest
(SPPI) on
 
the principal amount
 
outstanding,
 
the debt
 
instrument is
 
classified as measured
 
at amortized
 
cost if it
 
is held
within a business model that has an objective of holding financial assets to collect contractual cash
 
flows, or at fair value
through other
 
comprehensive income
 
(FVOCI) if it
 
is held
 
within a business
 
model with the
 
objective being achieved
 
by
both collecting contractual cash flows
 
and selling financial assets.
 
All other
 
financial assets
 
are measured
 
at fair
 
value
 
through
 
profit or
 
loss (
 
FVTPL), including
 
those
 
held
 
for trading
 
or
those
 
managed
 
on
 
a
 
fair value
 
basis,
 
except
 
for
 
derivatives
 
designated
 
in
 
a
 
hedge
 
relationship,
 
in
 
which
 
case
 
hedge
accounting requirements apply (refer to item
 
2j in this Note for more information).
 
Business model assessment and
 
contractual cash flow characteristics
 
UBS
 
determines
 
the
 
nature
 
of
 
a
 
business
 
model
 
by
 
considering
 
the
 
way
 
financial
 
assets
 
are
 
managed
 
to
 
achieve
 
a
particular business objective.
 
In assessing whether contractual cash flows are
 
SPPI, the Group considers whether the contractual terms of the financial
asset
 
contain
 
a
 
term
 
that
 
could
 
change
 
the
 
timing
 
or
 
amount
 
of
 
contractual
 
cash
 
flows
 
arising
 
over
 
the
 
life
 
of
 
the
instrument. This assessment includes
 
contractual cash flows that
 
may vary due to environmental,
 
social and governance
(ESG) triggers.
Financial liabilities
 
Financial liabilities measured at amortized
 
cost
 
Debt issued measured at amortized cost includes
 
contingent capital instruments contain
 
ing contractual provisions under
which the
 
principal amounts
 
would
 
be written
 
down
 
or converted
 
into equity
 
upon either
 
a specified
 
common
 
equity
tier 1 (CET1)
 
ratio breach or a determination
 
by the Swiss Financial Market Supervisory
 
Authority (FINMA) that a viability
event has
 
occurred.
 
Such contractual
 
provisions
 
are not
 
derivatives,
 
as the
 
underlying
 
is deemed
 
to be
 
a non
 
-financial
variable specific to a party to the contract.
 
If a debt were to be written down or converted into equity in
 
a future period, it would be partially or fully derecognized,
with
 
the
 
difference
 
between
 
its
 
carrying
 
amount
 
and
 
the
 
fair
 
value
 
of
 
any
 
equity
 
issued
 
recognized
 
in
 
the
 
income
statement.
 
A gain or loss is recognized
 
in
Other income
 
when debt issued
 
is subsequently repurchased
 
for market-making or
 
other
activities. A subsequent
 
sale of own bonds in the market is treated as a reissuance
 
of debt.
Financial liabilities measured at fair value
 
through profit or loss
 
UBS designates certain issued debt instruments as financial liabilities at fair
 
value through profit or
 
loss, on the basis that
such financial
 
instruments include
 
non-closely-related
 
embedded derivatives
 
that significantly
 
impact the
 
cash flows
 
of
the
 
instrument
 
and
 
/
 
or
 
are
 
managed
 
on
 
a
 
fair value
 
basis
 
(refer
 
to
 
the
 
table
 
below
 
for
 
more
 
information).
 
Financial
instruments
 
including
 
embedded
 
derivatives
 
arise
 
predominantly
 
from
 
the
 
issuance
 
of
 
certain
 
structured
 
debt
instruments.
 
Measurement and presentation
 
After initial recognition, UBS classifies, measures and presents its financial assets and liabilities in accordance with
 
IFRS 9,
as described in the table below.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
263
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
 
Classification, measurement
 
and presentation of financial assets
 
Financial assets classification
Significant items included
Measurement and
 
presentation
Measured at
 
amortized cost
This classification includes:
–
 
cash and balances at central banks;
–
 
loans and advances to banks;
–
 
receivables from
 
securities financing transactions;
–
 
cash collateral receivables
 
on derivative
instruments;
–
 
residential and
 
commercial mortgages;
–
 
corporate loans;
–
 
secured loans, including Lombard
 
loans, and
unsecured loans;
–
 
loans to financial advisors; and
–
 
debt securities held as high
 
-quality liquid assets
(HQLA).
 
Measured at amortized
 
cost using the effective interest
method less allowances
 
for expected credit losses (ECL)
(refer to items 2d and 2g in
 
this Note for more information).
The following items are recognized
 
in the income
statement:
–
 
interest income, which is
 
accounted for in accordance
with item 2d in this Note;
–
 
ECL and reversals;
 
and
–
 
foreign exchange (FX)
 
translation gains and losses.
When a financial asset at amortized
 
cost is derecognized,
the gain or loss is recognized
 
in the income statement.
For amounts arising from
 
settlement of certain derivatives,
see below in this table.
 
Measured at
FVOCI
 
Debt
instruments
measured at
FVOCI
This classification primarily includes
 
debt securities
and certain asset-backed securities
 
held as HQLA.
Measured at fair value
 
,
 
with unrealized gains and losses
reported in
Other comprehensive income,
net of applicable
income taxes, until such investments
 
are derecognized.
Upon derecognition, any accumulated
 
balances in
Other
comprehensive income
are reclassified to the income
statement and reported
 
within
Other income.
The following items, which are
 
determined on the same
basis as for financial assets measured
 
at amortized cost, are
recognized in the income
 
statement:
–
 
interest income, which is
 
accounted for in accordance
with item 2d in this Note;
–
 
ECL and reversals; and
–
 
FX translation gains and losses.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
264
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
 
Classification, measurement
 
and presentation of financial assets
 
Financial assets classification
Significant items included
Measurement and
 
presentation
Measured at
FVTPL
Held for
 
trading
Financial assets held for
 
trading include:
–
 
all derivatives with a positive
 
replacement value, except
those that are designated
 
and effective hedging
instruments; and
–
 
other financial assets acquired
 
principally for the
purpose of selling or repurchasing
 
in the near term, or
that are part of a
 
portfolio of identified financial
instruments that are managed
 
together and for which
there is evidence of a recent
 
actual pattern of short-
term profit taking. Included
 
in this category are debt
instruments (including those
 
in the form of securities,
money market paper,
 
and traded corporate and bank
loans) and equity instruments.
 
Measured at fair value
 
,
 
with changes recognized in the
income statement.
Derivative assets (including
 
derivatives that are designated
and effective hedging instruments)
 
are generally
presented as
Derivative financial instruments
, except those
exchange-traded derivatives (ETD)
 
and over-the-counter
(OTC)-cleared derivatives that are
 
legally settled on a daily
basis or economically net
 
settled on a daily basis, which
are presented within
Cash collateral receivables on
derivative instruments.
Changes in fair value, initial transaction
 
costs, dividends
and gains and losses arising
 
on disposal or redemption are
recognized in
Other net income from financial
instruments measured at fair value
 
through profit or loss,
except interest income on instruments
 
other than
derivatives (refer to item 2d
 
in this Note), interest on
derivatives designated as hedging
 
instruments in hedges
of interest rate risk and
 
forward points on certain short-
and long-duration FX contracts acting
 
as economic
hedges, which are reported
 
in
Net interest income.
 
Changes in the fair
 
value of derivatives that are
designated and effective
 
hedging instruments are
presented either in the income
 
statement or
Other
comprehensive income
, depending on the type of hedge
relationship (refer
 
to item 2j
 
in this Note for more
information).
Mandatorily
measured at
FVTPL – Other
This classification includes financial asset
 
s
 
mandatorily
measured at FVTPL that are
 
not held for trading, as
follows:
 
–
 
certain structured loans, certain
 
commercial loans, and
receivables from
 
securities financing transactions that
are managed on a fair
 
value basis;
 
–
 
loans managed on a fair
 
value basis,
 
including those
hedged with credit derivatives
 
;
–
 
certain debt securities held as HQLA and
 
managed on a
fair value basis;
 
–
 
certain investment fund holdings
 
and assets held to
hedge delivery obligations related
 
to cash-settled
employee compensation plans;
 
–
 
brokerage receivables,
 
for which contractual cash flows
do not meet the SPPI criterion
 
because the aggregate
balance is accounted for as a
 
single unit of account,
with interest being calculated
 
on the individual
components;
–
 
auction rate securities, for
 
which contractual cash flows
do not meet the SPPI criterion
 
because interest may be
reset at rates that contain leverage
 
;
–
 
equity
 
instruments;
 
and
–
 
assets held under unit-linked investment
 
contracts.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
265
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
 
Classification, measurement
 
and presentation of financial liabilities
 
Financial liabilities classification
Significant items included
Measurement and
 
presentation
Measured at amortized cost
This classification includes:
–
 
demand and time deposits;
 
–
 
retail savings / deposits;
–
 
sweep deposits;
–
 
payables
 
from securities financing transactions
 
;
 
–
 
non-structured debt
 
issued;
 
–
 
subordinated debt;
 
–
 
commercial paper and
 
certificates of deposit; and
–
 
cash collateral payables on derivative
 
instruments.
Measured at amortized
 
cost using the effective interest
method.
When a financial liability at amortized
 
cost is
derecognized, the gain
 
or loss is recognized in the income
statement.
 
Interest Income generated
 
from client deposits
derecognized pursuant
 
to certain deposit sweep programs
is presented within
Net interest income from financial
instruments measured at fair value
 
through profit or loss
and other
.
Measured at
FVTPL
Held for trading
Financial liabilities held for trading include:
–
 
all derivatives with a negative replacement
 
value
(including certain loan commitments)
 
,
 
except those
that are designated and
 
effective hedging
instruments; and
–
 
obligations to deliver financial
 
instruments, such as
debt and equity instruments,
 
that UBS has sold to
third parties but does not
 
own (short positions).
Measurement and presentation
 
of financial liabilities
classified at FVTPL follow the
 
same principles as for
financial assets classified at FVTPL, except
 
that the amount
of change in the fair value o
 
f
 
a financial liability
designated at FVTPL that is
 
attributable to changes in
UBS’s own credit
 
risk is presented in
Other comprehensive
income
 
directly within
Retained earnings
and is never
reclassified to the income
 
statement.
Derivative liabilities (including derivatives
 
that are
designated and effective
 
hedging instruments) are
generally presented as
Derivative financial instruments,
except those exchange
 
-traded and OTC-cleared
derivatives that are legally settled
 
on a daily basis or
economically net settled on a daily
 
basis, which are
presented within
Cash collateral payables on derivative
instruments.
Designated at
FVTPL
UBS designates
 
at FVTPL the following financial
liabilities:
–
 
issued hybrid debt instruments
 
that primarily include
equity-linked, credit
 
-linked and rates-linked bonds or
notes;
–
 
issued debt instruments managed
 
on a fair value
basis;
–
 
certain payables from
 
securities financing
transactions;
–
 
amounts due under unit
 
-linked investment contracts,
the cash flows of which are
 
linked to financial assets
measured at FVTPL and eliminate
 
an accounting
mismatch;
 
and
–
 
brokerage payables, which arise
 
in conjunction with
brokerage receivables
 
and are measured at FVTPL to
achieve measurement consistency.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
266
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
c. Loan commitments and financial guarantees
Loan
 
commitments
 
are
 
arrangements
 
to
 
provide
 
credit
 
under
 
defined
 
terms
 
and
 
conditions.
 
Irrevocable
 
loan
commitments
 
are
 
classified
 
as:
 
(i) derivative
 
loan
 
commitments
 
measured
 
at
 
fair
 
value
 
through
 
profit
 
or
 
loss;
 
(ii) loan
commitments
 
designated
 
at
 
fair
 
value
 
through
 
profit
 
or
 
loss;
 
or
 
(iii) loan
 
commitments
 
not
 
measured
 
at
 
fair
 
value.
Financial guarantee contracts are
 
contracts that require
 
UBS to make specified
 
payments to reimburse
 
the holder for an
incurred loss
 
because a
 
specified debtor
 
fails to
 
make payments
 
when due
 
in accordance
 
with the terms
 
of a specified
debt instrument.
d.
 
Interest income and expense
Interest
 
income
 
and
 
expense
 
are
 
recognized
 
in
 
the
 
income
 
statement
 
based
 
on
 
the
 
effective
 
interest
 
method.
 
When
calculating the effective interest rate (the EIR) for financial instruments (other than credit-impaired financial
 
instruments),
UBS estimates future cash flows considering
 
all contractual terms of the instrument, but not
 
expected credit losses, with
the EIR applied to the gross
 
carrying amount of the financial asset or the amortized
 
cost of a financial liability.
 
However,
when
 
a financial
 
asset becomes
 
credit-impaired
 
after initial
 
recognition,
 
interest income
 
is determined
 
by applying
 
the
EIR
 
to
 
the
 
amortized cost
 
of
 
the
 
instrument,
 
which
 
represents
 
the
 
gross
 
carrying amount
 
adjusted
 
for
 
any
 
credit
 
loss
allowance.
 
Upfront fees, including
 
fees on loan commitments not measured at fair value where a loan
 
is expected to be issued, and
direct costs are
 
included
 
within the
 
initial measurement
 
of a
 
financial instrument
 
measured
 
at amortized cost
 
or FVOCI
and recognized over the expected life of
 
the instrument as part of its EIR.
Fees related
 
to loan
 
commitments where
 
no loan
 
is expected
 
to be
 
issued, as
 
well as
 
loan syndication
 
fees where
 
UBS
does not
 
retain a portion of
 
the syndicated loan
 
or where UBS does
 
retain a portion of
 
the syndicated loan
 
at the same
effective
 
yield
 
for
 
comparable
 
risk
 
as
 
other
 
participants,
 
are
 
included
 
in
Net
 
fee
 
and
 
commission
 
income
and
 
either
recognized over the life of the commitment
 
or when syndication occurs.
 
›
 
Refer to item 3 in
 
this Note for more
 
information
Interest
 
income
 
on
 
financial
 
assets,
 
excluding
 
derivatives,
 
is
 
included
 
in
 
interest
 
income
 
when
 
positive
 
and
 
in
 
interest
expense
 
when
 
negative.
 
Similarly,
 
interest
 
expense
 
on
 
financial
 
liabilities,
 
excluding
 
derivatives,
 
is
 
included
 
in
 
interest
expense, except when interest rates are
 
negative, in which case it is included
 
in interest income.
 
›
 
Refer to item 2b in
 
this Note and
 
Note 3 for more information
e. Derecognition
 
Financial assets
UBS derecognizes a transferred financial asset, or a portion of a financial asset, if the
 
purchaser has received substantially
all the risks and rewards of the asset or a significant part of the risks and rewards combined with a practical ability to sell
or pledge the asset.
 
Where
 
financial
 
assets
 
have
 
been
 
pledged
 
as
 
collateral
 
or
 
in
 
similar
 
arrangements,
 
they
 
are
 
considered
 
to
 
have
 
been
transferred
 
if the
 
counterparty has
 
received
 
the contractual
 
rights
 
to
 
the cash
 
flows
 
of the
 
pledged
 
assets, as
 
may be
evidenced
 
by,
 
for
 
example,
 
the
 
counterparty’s
 
right
 
to
 
sell
 
or
 
repledge
 
the assets.
 
In
 
transfers where
 
control
 
over
 
the
financial asset is retained,
 
UBS continues to recognize
 
the asset to the
 
extent of its continuing
 
involvement, determined
by the extent to which it is exposed
 
to changes in the value of
 
the transferred asset following
 
the transfer.
 
›
 
Refer to Note 22
 
for more information
 
Financial liabilities
UBS
 
derecognizes
 
a
 
financial
 
liability
 
when
 
it
 
is
 
extinguished,
 
i.e.,
 
when
 
the
 
obligation
 
specified
 
in
 
the
 
contract
 
is
discharged,
 
canceled or expires. When an existing financial liability is exchanged
 
for a new one from the same lender on
substantially
 
different
 
terms,
 
or
 
the
 
terms
 
of
 
an
 
existing
 
liability
 
are
 
substantially
 
modified,
 
the
 
original
 
liability
 
is
derecognized
 
and
 
a
 
new
 
liability
 
recognized
 
with
 
any
 
difference
 
in
 
the
 
respective
 
carrying
 
amounts
 
recorded
 
in
 
the
income statement.
 
Certain OTC derivative
 
contracts and most exchange-traded futures and option
 
contracts cleared through central
 
clearing
counterparties and exchanges are considered
 
to be settled on a daily basis,
 
as the payment or receipt of variation margin
on a daily basis represents
 
legal or economic settlement, which results in derecognition
 
of the associated derivatives.
›
 
Refer to Note 21
 
for more information
 
f.
 
Fair value of financial instruments
UBS accounts for a significant portion
 
of its assets and liabilities at
 
fair value. Fair value
 
is the price on the measurement
date that would be received for the
 
sale of an asset or
 
paid to transfer a liability
 
in an orderly transaction between market
participants in the principal market, or in
 
the most advantageous
 
market in the absence of a principal market.
 
›
 
Refer to Note 20
 
for more information
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
267
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
Critical accounting estimates and judgments
The use
 
of valuation techniques,
 
modeling assumptions
 
and estimates of
 
unobservable market
 
inputs in the
 
fair valuation of
 
financial instruments
 
requires
significant
 
judgment
 
and
 
could
 
affect
 
the
 
amount
 
of
 
gain
 
or
 
loss
 
recorded
 
for
 
a
 
particular
 
position.
 
Valuation
 
techniques
 
that
 
rely
 
more
 
heavily
 
on
unobservable
 
inputs
 
and
 
sophisticated
 
models
 
inherently
 
require
 
a
 
higher
 
level of
 
judgment
 
and
 
may
 
require
 
adjustment
 
to reflect
 
factors
 
that
 
market
participants would consider
 
in estimating fair value, such as close
 
-out costs, which are presented in Note 2
 
0d.
 
UBS‘s
 
governance framework over fair value measurement is described in Note 20b,
 
and UBS provides a sensitivity analysis of the
 
estimated effects arising
from changing significant
 
unobservable inputs in Level 3
 
financial instruments to reasonably possible
 
alternative assumptions in Note 20f.
 
›
 
Refer to Note 20
 
for more information
g.
 
Allowances and provisions for expected credit losses
ECL are
 
recognized
 
for financial
 
assets measured
 
at amortized
 
cost, financial
 
assets
 
measured
 
at FVOCI,
 
fee and
 
lease
receivables,
 
financial
 
guarantees,
 
and
 
loan
 
commitments
 
not
 
measured
 
at
 
fair
 
value.
 
ECL
 
are
 
also
 
recognized
 
on
 
the
undrawn portion
 
of committed unconditionally
 
revocable credit
 
lines, which
 
include UBS’s
 
credit card limits
 
and master
credit facilities, as UBS is exposed to credit risk because the borrower
 
has the ability to draw down funds before UBS can
take credit risk mitigation actions.
Recognition of expected credit losses
 
ECL are recognized on
 
the following basis.
–
 
Stage 1 instruments: Maximum 12-month ECL are recognized from initial
 
recognition, reflecting the portion of lifetime
cash shortfalls that would
 
result if a default occurs in
 
the 12 months after the
 
reporting date, weighted
 
by the risk of
a default occurring.
 
–
 
Stage 2 instruments: Lifetime ECL are recognized if
 
a significant increase in credit risk (an SICR) is
 
observed subsequent
to
 
the
 
instrument’s
 
initial
 
recognition,
 
reflecting
 
lifetime
 
cash
 
shortfalls
 
that
 
would
 
result
 
from
 
all
 
possible
 
default
events over
 
the expected
 
life of a
 
financial instrument,
 
weighted by
 
the risk of
 
a default
 
occurring. When
 
an SICR
 
is
no longer observed, the instrument will
 
move back to stage 1.
–
 
Stage 3
 
instruments: Lifetime
 
ECL are
 
always recognized
 
for credit-impaired
 
financial instruments,
 
as determined
 
by
the occurrence
 
of one
 
or more
 
loss events,
 
by estimating
 
expected cash
 
flows based
 
on a
 
chosen
 
recovery strategy.
Credit-impaired exposures
 
may include
 
positions for
 
which no
 
allowance has
 
been recognized,
 
for example because
they are expected to be fully recoverable through
 
collateral held.
–
 
Changes in lifetime ECL since initial recognition
 
are also recognized for assets that are
 
purchased or originated
 
credit-
impaired (POCI).
 
POCI financial instruments
 
include those
 
that are
 
purchased at
 
a deep discount
 
or newly originated
with a defaulted counterparty;
 
they remain a separate category until
 
derecognition.
 
All or part of
 
a financial
 
asset is written
 
off if it
 
is deemed uncollectible
 
or forgiven. Write-offs reduce the
 
principal amount
of a claim
 
and are charged against related allowances for
 
credit losses. Recoveries,
 
in part or in full,
 
of amounts previously
written off are generally credited to
Credit loss expense / (release)
.
 
ECL are recognized in the income statement in
Credit loss expense / (release)
. A corresponding ECL allowance is reported
as a decrease
 
in the carrying
 
amount of
 
financial assets measured
 
at amortized
 
cost on
 
the balance sheet.
 
For financial
assets that
 
are
 
measured
 
at FVOCI,
 
the carrying
 
amount
 
is not
 
reduced,
 
but an
 
accumulated amount
 
is recognized
 
in
Other comprehensive
 
income
. For
 
off-balance sheet
 
financial instruments
 
and
 
other credit
 
lines, provisions
 
for ECL
 
are
presented in
Provisions.
Default and credit impairment
UBS
 
applies
 
a
 
single definition
 
of
 
default
 
for
 
credit
 
risk
 
management
 
purposes,
 
regulatory
 
reporting
 
and
 
ECL,
 
with
 
a
counterparty classified as defaulted based
 
on quantitative and qualitative criteria.
 
›
 
Refer to “Credit policies
 
for distressed assets”
 
in the “Risk
 
management and
 
control”
 
section of this
 
report for more information
Measurement of expected credit losses
IFRS 9 ECL
 
reflect an unbiased,
 
probability-weighted estimate
 
based on
 
loss expectations resulting
 
from default events.
The method
 
used to
 
calculate ECL
 
applies the
 
following
 
principal factors:
 
probability of
 
default (PD),
 
loss given
 
default
(LGD) and
 
exposure at
 
default (EAD).
 
Parameters are
 
generally
 
determined on
 
an individual
 
financial asset
 
level. Based
on the
 
materiality of the portfolio,
 
for credit card
 
exposures and
 
personal account overdrafts
 
in Switzerland,
 
a portfolio
approach is applied that derives
 
an average PD and LGD
 
for the entire portfolio. PDs
 
and LGDs used in
 
the ECL calculation
are point-in-time
 
(PIT)-based for
 
key portfolios
 
and consider
 
both current
 
conditions and
 
expected cyclical changes.
 
For
material portfolios, PDs and LGDs are
 
determined for different scenarios, whereas EAD projections are treated as
 
scenario
independent.
For the purpose
 
of determining the
 
ECL-relevant parameters,
 
UBS leverages its
 
Basel III advanced
 
internal ratings-based
(A-IRB) models that are also
 
used in determining expected loss
 
(EL) and risk-weighted assets under the
 
Basel III framework
and
 
Pillar 2
 
stress
 
loss
 
models.
 
Adjustments
 
have
 
been
 
made
 
to
 
these
 
models
 
and
 
IFRS
 
9-related
 
models
 
have
 
been
developed that consider the complexity, structure
 
and risk profile of relevant portfolios
 
and take account of the fact that
PDs and LGDs used in
 
the ECL calculation
 
are PIT-based,
 
as opposed to the corresponding Basel III through-the-cycle
 
(TTC)
parameters. All models
 
that are relevant
 
for measuring expected
 
credit losses
 
are subject to
 
UBS’s model
 
validation and
oversight processes.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
268
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
Probability of default:
PD represents
 
the probability of a default
 
over a specified time
 
period. A 12
 
-month PD represents
the probability of default determined
 
for the next 12 months and a lifetime PD represents
 
the probability of default over
the remaining lifetime
 
of the instrument. PIT
 
PDs are derived
 
from TTC PDs and
 
scenario forecasts. The modeling is
 
region,
industry and
 
client segment
 
specific and
 
considers both
 
macroeconomic scenario
 
dependencies
 
and client-idiosyncratic
information.
Exposure at default:
EAD represents an estimate of the exposure to credit
 
risk at the time of
 
a potential default occurring,
considering expected repayments, interest payments
 
and accruals, discounted
 
at the EIR. Future drawdowns on
 
facilities
are considered
 
through a
 
credit conversion factor
 
(a
 
CCF) that is
 
reflective of historical
 
drawdown
 
and default
 
patterns
and the characteristics of the respective portfolios.
Loss given default:
LGD represents an estimate
 
of the loss at the time of a potential
 
default occurring, taking
 
into account
expected
 
future
 
cash
 
flows
 
from
 
collateral
 
and
 
other
 
credit
 
enhancements,
 
or
 
expected
 
payouts
 
from
 
bankruptcy
proceedings for unsecured
 
claims and, where applicable,
 
time to realization
 
of collateral and the
 
seniority of claims.
 
LGD is
commonly expressed
 
as a percentage of
 
EAD.
Estimation of expected credit losses
Number of scenarios and estimation
 
of scenario weights
Determination of
 
probability-weighted ECL
 
requires evaluating
 
a range of diverse
 
and relevant future
 
economic conditions,
especially with a view
 
to modeling the
 
non-linear effect of assumptions
 
about macroeconomic
 
factors on the
 
estimate.
 
To
 
accommodate
 
this
 
requirement,
 
UBS
 
uses
 
different
 
economic
 
scenarios
 
in
 
the
 
ECL
 
calculation.
 
Each
 
scenario
 
is
represented
 
by a
 
specific scenario
 
narrative,
 
which
 
is
 
relevant
 
considering
 
the exposure
 
of key
 
portfolios
 
to
 
economic
risks, and for which
 
a set of
 
consistent macroeconomic variables is determined. The
 
estimation of the appropriate weights
for
 
these
 
scenarios
 
is
 
predominantly
 
judgment-based.
 
The
 
assessment
 
is
 
based
 
on
 
a
 
holistic review
 
of
 
the
 
prevailing
economic or
 
political
 
conditions,
 
which may
 
exhibit
 
different levels
 
of uncertainty.
 
It
 
takes
 
into account
 
the impact
 
of
changes in the nature
 
and severity of the underlying scenario narratives
 
and the projected economic variables.
 
The determined
 
weights constitute
 
the probabilities that
 
the respective
 
set of macroeconomic
 
conditions will
 
occur and
not that the chosen particular narratives with
 
the related macroeconomic variables
 
will materialize.
Macroeconomic and other factors
The range
 
of macroeconomic,
 
market and
 
other factors
 
that is
 
modeled as
 
part of
 
the scenario
 
determination
 
is wide,
and historical information
 
is used to
 
support the identification
 
of the key
 
factors. As the
 
forecast horizon increases,
 
the
availability of
 
information
 
decreases,
 
requiring
 
an increase
 
in judgment.
 
For
 
cycle-sensitive PD
 
and
 
LGD
 
determination
purposes, UBS projects the relevant economic factors for a period of three
 
years before reverting, over a specified period,
to cycle-neutral PD and LGD for longer
 
-term projections.
 
Factors relevant
 
for ECL
 
calculation
 
vary by
 
type of
 
exposure.
 
Regional and
 
client-segment
 
characteristics
 
are generally
taken into account, with specific focus
 
on Switzerland and the US,
 
considering UBS’s key ECL-relevant portfolios.
For UBS, the following forward-looking macroeconomic variables represent the most relevant factors for ECL calculation:
 
–
 
GDP growth rates, given their significant
 
effect on borrowers’
 
performance;
 
–
 
unemployment rates, given their significant effect
 
on private clients’ ability to meet
 
contractual obligations;
 
–
 
house price indices, given their significant
 
effect on mortgage collateral
 
valuations;
 
–
 
interest rates, given their significant effect on
 
counterparties’ abilities to service
 
debt;
 
–
 
consumer price
 
indices,
 
given their
 
overall relevance
 
for companies’
 
performance,
 
private
 
clients’ purchasing
 
power
and economic stability; and
–
 
equity indices, given that they are an
 
important factor in our corporate rating
 
tools.
 
Scenario generation, review process and
 
governance
A team of
 
economists, which
 
is part
 
of Group
 
Risk Control,
 
develop the
 
forward-looking
 
macroeconomic assumptions
with involvement from a broad
 
range of experts.
The
 
scenarios,
 
their weight
 
and
 
the
 
key macroeconomic
 
and
 
other
 
factors
 
are
 
subject
 
to
 
a
 
critical
 
assessment
 
by
 
the
IFRS 9 Scenario
 
Sounding
 
Sessions
 
and
 
ECL Management
 
Forum, which
 
include senior
 
management
 
from
 
Group
 
Risk
and Group
 
Finance. Important aspects
 
for the
 
review include
 
whether there
 
may be
 
particular credit
 
risk concerns
 
that
may not be
 
capable of being
 
addressed systematically and
 
require post-model
 
adjustments for stage
 
allocation and
 
ECL
allowance.
 
The
 
Group
 
Model
 
Governance
 
Committee
 
(the
 
GMGC),
 
as
 
the
 
highest
 
authority
 
under
 
UBS’s
 
model
 
governance
framework, ratifies the decisions
 
taken by the ECL Management Forum.
 
›
 
Refer to Note 19
 
for more information
ECL measurement period
 
The period
 
for which lifetime
 
ECL are
 
determined is
 
based on
 
the maximum
 
contractual period
 
that UBS
 
is exposed
 
to
credit
 
risk,
 
taking
 
into
 
account
 
contractual
 
extension,
 
termination
 
and
 
prepayment
 
options.
 
For
 
irrevocable
 
loan
commitments
 
and
 
financial guarantee
 
contracts, the
 
measurement
 
period
 
represents
 
the maximum
 
contractual
 
period
for which UBS has an
 
obligation to extend credit.
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
269
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
Additionally, some financial instruments include both
 
an on-demand loan and a revocable undrawn commitment, where
the
 
contractual cancel
 
lation
 
right
 
does
 
not
 
limit UBS’s
 
exposure
 
to credit
 
risk to
 
the contractual
 
notice
 
period,
 
as
 
the
client has
 
the ability
 
to draw
 
down funds
 
before UBS
 
can take
 
risk-mitigating
 
actions. In
 
such cases
 
UBS
 
is required
 
to
estimate the period
 
over which it
 
is exposed
 
to credit risk.
 
This applies
 
to UBS’s
 
credit card limits,
 
which do
 
not have
 
a
defined contractual maturity date, are
 
callable on demand and where the drawn and
 
undrawn components are managed
as one exposure.
 
The exposure arising from UBS’s
 
credit card limits is not significant
 
and is managed at a portfolio
 
level,
with credit actions triggered when balances are past due. An ECL measurement
 
period of seven years is applied for
 
credit
card limits, capped at 12 months
 
for stage 1 balances, as a proxy for the period
 
that UBS is exposed
 
to credit risk.
Customary master credit
 
agreements in the
 
Swiss corporate market
 
also include
 
on-demand loans and revocable
 
undrawn
commitments.
 
For
 
smaller
 
commercial
 
facilities,
 
a
 
risk-based
 
monitoring
 
(RbM)
 
approach
 
is
 
in
 
place
 
that
 
highlights
negative
 
trends
 
as
 
risk
 
events,
 
at
 
an
 
individual
 
facility
 
level,
 
based
 
on
 
a
 
combination
 
of
 
continuously
 
updated
 
risk
indicators. The risk events
 
trigger additional credit reviews
 
by a risk officer,
 
enabling informed credit decisions to
 
be taken.
Larger corporate facilities are not subject to RbM,
 
but are reviewed at least annually through
 
a formal credit review. UBS
has assessed these credit risk management
 
practices and considers
 
both the RbM approach and
 
formal credit reviews as
substantive
 
credit
 
reviews
 
resulting
 
in
 
a
 
re-origination
 
of
 
the
 
given
 
facility.
 
Following
 
this,
 
a
 
12-month
 
measurement
period from
 
the reporting date
 
is used
 
for both types
 
of facilities as an
 
appropriate proxy
 
of the period
 
over which UBS
is exposed
 
to credit risk, with
 
12 months also used
 
as a look-back
 
period for assessing
 
SICR, always from
 
the respective
reporting date.
Significant increase in credit risk
 
Financial
 
instruments
 
subject
 
to ECL
 
are monitored
 
on an
 
ongoing
 
basis.
 
To
 
determine
 
whether
 
the recognition
 
of a
maximum
 
12-month
 
ECL
 
continues
 
to
 
be
 
appropriate,
 
an
 
assessment
 
is
 
made
 
as
 
to whether
 
an SICR
 
has
 
occurred
since initial
 
recognition
 
of the
 
financial instrument
 
,
 
applying
 
both quantit
 
ative and
 
qualitative
 
factors.
 
Primarily, UBS
 
assesses changes
 
in an
 
instrument’s risk
 
of default
 
on
 
a quantitative
 
basis by
 
comparing the
 
annualized
forward-looking and
 
scenario-weighted lifetime PD of an instrument determined
 
at two different dates:
 
–
 
at the reporting date; and
 
–
 
at inception of the instrument.
If, based
 
on UBS’s quantitative
 
modeling, an
 
increase exceeds a
 
set threshold,
 
an SICR is
 
deemed to have
 
occurred and
the instrument is transferred to stage 2
 
with lifetime ECL recognized.
The threshold
 
applied varies depending
 
on the
 
original credit
 
quality of
 
the borrower,
 
with a higher
 
SICR threshold
 
set
for those
 
instruments with
 
a low
 
PD at
 
inception. The
 
SICR assessment
 
based on
 
PD changes
 
is made
 
at an
 
individual
financial asset
 
level. A
 
high-level overview
 
of the
 
SICR
 
trigger, which
 
is a
 
multiple of
 
the annualized
 
remaining
 
lifetime
PIT
 
PD
 
expressed
 
in
 
rating downgrades
 
,
 
is provided
 
in the
 
“SICR
 
thresholds”
 
table below.
 
The
 
actual SICR
 
thresholds
applied are defined on
 
a more granular level by interpolating between
 
the values shown in
 
the table.
SICR thresholds
–
 
Internal rating at origination
 
of the instrument
–
 
Rating downgrades /
SICR trigger
0–3
3
4–8
2
9–13
1
›
 
Refer to the “Risk
 
management and
 
control” section of
 
this report for more
 
details about
 
UBS’s internal grading
 
system
Irrespective of
 
the SICR
 
assessment based
 
on
 
default probabilities,
 
credit risk
 
is generally
 
deemed to
 
have significantly
increased
 
for
 
an
 
instrument
 
if
 
the
 
contractual
 
payments
 
are
 
more
 
than
 
30
 
days
 
past
 
due.
 
For
 
certain
 
less
 
material
portfolios, specifically the Swiss
 
credit card portfolio,
 
the 30-day past due criterion
 
is used as the
 
primary indicator of an
SICR. Where instruments are transferred to stage 2 due to
 
the 30-day past due criterion, a
 
minimum period of six
 
months
is applied before a transfer
 
back to stage 1 can be triggered. For
 
instruments in Personal & Corporate Banking and Global
Wealth Management
 
Region Switzerland
 
that are between
 
90 and 180 days
 
past due but
 
have not been
 
reclassified to
stage 3, a one-year period is applied
 
before a transfer back to stage 1 can be
 
triggered.
Additionally,
 
based
 
on
 
individual
 
counterparty-specific
 
indicators,
 
external
 
market
 
indicators
 
of
 
credit
 
risk
 
or
 
general
economic conditions, counterparties may be
 
moved to a watch list, which is used as a secondary qualitative indicator for
an
 
SICR.
 
Exception
 
management
 
is
 
further
 
applied,
 
allowing
 
for
 
individual
 
and
 
collective
 
adjustments
 
on
 
exposures
sharing the same credit risk character
 
istics to take account of specific situations
 
that are not otherwise fully reflected.
 
In general, the overall SICR determination process does not apply to Lombard loans, securities financing transactions and
certain
 
other
 
asset-based
 
lending
 
transactions,
 
because
 
of
 
the
 
risk
 
management
 
practices
 
adopted,
 
including
 
daily
monitoring
 
processes
 
with strict
 
margining.
 
If margin
 
calls are
 
not satisfied,
 
a position
 
is closed
 
out and
 
classified as
 
a
stage 3 position. In exceptional cases, an individual adjustment
 
and a transfer into stage 2 may be made to take account
of specific facts.
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
270
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
Credit risk
 
officers are
 
responsible
 
for the
 
identification
 
of an
 
SICR,
 
which for
 
accounting
 
purposes is
 
in some
 
respects
different
 
from
 
internal
 
credit
 
risk
 
management
 
processes
.
 
This
 
difference
 
mainly
arises
because
 
ECL
 
accounting
requirements are instrument-specific, such that a borrower can have multiple
 
exposures allocated to different stages, and
maturing loans in stage 2
 
will migrate to stage 1 upon renewal irrespective of the actual
 
credit risk at that time. Under a
risk-based
 
approach,
 
a
 
holistic
 
counterparty
 
credit
 
assessment
 
and
 
the
 
absolute
 
level
 
of
 
risk
 
at
 
any
 
given
 
date
 
will
determine what risk-mitigating actions
 
may be warranted.
›
 
Refer to the “Risk
 
management and
 
control” section of
 
this report for more
 
information
 
Critical accounting estimates and judgments
The calculation of ECL requires management to apply significant
 
judgment and make estimates and assumptions that can result in significant changes to the
timing and amount of ECL recognized.
 
Determination of a significant
 
increase in credit risk
 
IFRS
 
9 does
 
not include
 
a definition
 
of what
 
constitutes an
 
SICR,
 
with UBS’s
 
assessment
 
considering
 
qualitative and
 
quantitative
 
criteria. An
 
IFRS 9 ECL
Management Forum has
 
been established to review and challenge the SICR
 
results.
Scenarios, scenario weights and macroeconomic
 
variables
 
ECL reflect
 
an unbiased and probability-weighted amount, which UBS determines by evaluating a range of possible outcomes. Management selects forward-
looking
 
scenarios
 
that
 
include
 
relevant
 
macroeconomic
 
variables
 
and
 
management’s
 
assumptions
 
around
 
future
 
economic
 
conditions.
 
IFRS
 
9
 
Scenario
Sounding Sessions,
 
in addition to
 
the IFRS 9 ECL Management
 
Forum, are in place
 
to derive,
 
review and challenge
 
the scenario selection
 
and weights, and
to determine whether any additional
 
post-model adjustments are
 
required that may significantly affect ECL.
 
ECL measurement period
Lifetime ECL are generally determined based upon the contractual maturity of the transaction, which significantly affects ECL.
 
For credit card limits and Swiss
callable master credit facilities, judgment
 
is required,
 
as UBS must determine the period over which it is exposed
 
to credit risk. A seven-year period is applied
for credit card limits, capped
 
at 12 months for stage 1 positions, and
 
a 12-month period applied for master credit
 
facilities.
 
Modeling and post-model adjustments
A number of
 
complex models have been
 
developed or modified
 
to calculate ECL,
 
with additional post
 
-model adjustments required
 
which may significantly
affect ECL. The models are governed
 
by UBS’s model validation controls and approved
 
by the GMGC. The post-model adjustm
 
ents are approved by the ECL
Management Forum and endorsed
 
by the GMGC.
A sensitivity analysis covering
 
key macroeconomic variables, scenario
 
weights and SICR trigger points on ECL measurement
 
is provided in Note 19f.
 
›
 
Refer to Note 19
 
for more information
h. Restructured and
 
modified financial assets
When payment default
 
is expected,
 
or where
 
default has
 
already occurred,
 
UBS may grant
 
concessions to borrowers
 
in
financial difficulties
 
that it
 
would
 
not consider
 
in the
 
normal course
 
of its
 
business,
 
such
 
as preferential
 
interest
 
rates,
extension of maturity,
 
modifying the schedule of repayments,
 
debt / equity swap, subordination,
 
etc.
 
›
 
Refer to the “Risk
 
management and
 
control” section of
 
this report for more
 
information
Modifications result in an alteration of future contractual cash flows
 
and can occur within UBS’s
 
normal risk tolerance or
as part
 
of a
 
credit
 
restructuring
 
where
 
a counterparty
 
is in
 
financial difficulties.
 
The restructuring
 
or modification
 
of a
financial asset
 
could
 
lead
 
to
 
a
 
substantial
 
change
 
in
 
the terms
 
and
 
conditions,
 
resulting
 
in
 
the
 
original
 
financial asset
being
 
derecognized
 
and
 
a
 
new
 
financial
 
asset
 
being
 
recognized.
 
Where
 
the
 
modification
 
does
 
not
 
result
 
in
 
a
derecognition, any difference between the modified contractual
 
cash flows discounted at the original EIR and
 
the existing
gross carrying amount of the given financial
 
asset is recognized in the income statement
 
as a modification gain or loss.
 
i. Offsetting
UBS
 
presents
 
financial assets
 
and liabilities
 
on
 
its balance
 
sheet net
 
if (i) it has
 
a legally enforceable
 
right to
 
set off
 
the
recognized
 
amounts
 
and
 
(ii) it
 
intends
 
either
 
to
 
settle
 
on
 
a
 
net
 
basis
 
or
 
to
 
realize
 
the
 
asset
 
and
 
settle
 
the
 
liability
simultaneously.
 
Netted
 
positions
 
include,
 
for
 
example,
 
certain
 
derivatives
 
and
 
repurchase
 
and
 
reverse
 
repurchase
transactions with various counterparties,
 
exchanges and
 
clearing houses.
In
 
assessing
 
whether
 
UBS
 
intends
 
to
 
either
 
settle
 
on
 
a
 
net
 
basis,
 
or
 
to
 
realize
 
the
 
asset
 
and
 
settle
 
the
 
liability
simultaneously, emphasis
 
is placed on
 
the effectiveness of
 
operational settlement mechanics
 
in eliminating substantially
all credit and liquidity exposure between
 
the counterparties. This condition precludes offsetting
 
on the balance sheet
 
for
substantial
 
amounts
 
of
 
UBS’s
 
financial assets
 
and
 
liabilities,
 
even
 
though
 
they
 
may
 
be
 
subject
 
to
 
enforceable
 
netting
arrangements. Repurchase
 
arrangements and
 
securities financing transactions
 
are presented
 
net only to
 
the extent that
the settlement
 
mechanism eliminates,
 
or results
 
in insignificant,
 
credit and
 
liquidity
 
risk, and
 
processes
 
the receivables
and payables in a single
 
settlement process or cycle.
›
 
Refer to Note 21
 
for more information
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
271
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
j
. Hedge accounting
The
 
Group
 
applies
 
hedge
 
accounting
 
requirements
 
of
 
IFRS 9
 
where
 
the
 
criteria
 
for
 
documentation
 
and
 
hedge
effectiveness
 
are
 
met. If
 
a hedge
 
relationship
 
no
 
longer
 
meets the
 
criteria for
 
hedge
 
accounting,
 
hedge
 
accounting
 
is
discontinued. Voluntary
 
discontinuation of hedge
 
accounting is not permitted under IFRS 9.
Fair value hedges of interest rate risk
 
related to debt instruments and
 
loan assets
The
 
fair value
 
change
 
of
 
the
 
hedged
 
item attributable
 
to
 
a
 
hedged
 
risk is
 
reflected
 
as
 
an
 
adjustment
 
to
 
the
 
carrying
amount
 
of
 
the
 
hedged
 
item and
 
recognized
 
in
 
the
 
income
 
statement
 
along
 
with
 
the
 
change
 
in
 
the
 
fair value
 
of
 
the
hedging instrument.
Fair value hedges of FX risk related to
 
debt instruments
The fair value change of the
 
hedged item attributable to the
 
hedged risk is reflected
 
in the measurement of the hedged
item and
 
recognized
 
in the
 
income statement
 
along
 
with the
 
change
 
in the
 
fair value
 
of the
 
hedging instrument.
 
The
foreign currency basis spread of cross-currency swaps designated as hedging derivatives is excluded from
 
the designation
and
 
accounted
 
for
 
as a
 
cost of
 
hedging
 
with
 
amounts
 
deferred
 
in
Other comprehensive
 
income
 
within
Equity
.
 
These
amounts are released to the
 
income statement over the term
 
of
 
the hedged item.
Discontinuation of fair value hedges
Discontinuations for reasons other
 
than derecognition of the
 
hedged item result in
 
an adjustment to the
 
carrying amount,
which
 
is
 
amortized
 
to
 
the
 
income
 
statement
 
over
 
the
 
remaining
 
life
 
of
 
the
 
hedged
 
item
 
using
 
the
 
effective
 
interest
method. If the hedged item is derecognized,
 
the unamortized fair value adjustment or deferred
 
cost of hedging amount
is recognized immediately in the income
 
statement as part of any derecognition
 
gain or loss.
Cash flow hedges of
 
forecast transactions
Fair value gains or losses associated
 
with the effective portion of derivatives designated as cash flow
 
hedges for cash flow
repricing
 
risk are
 
recognized
 
initially in
Other comprehensive
 
income
within
Equity
 
and
 
reclassified to
Interest income
from financial
 
instruments measured
 
at amortized
 
cost and
 
fair value
 
through other
 
comprehensive income
 
or
Interest
expense
 
from financial
 
instruments
 
measured
 
at
 
amortized
 
cost
 
in
 
the
 
periods
 
when
 
the
 
hedged
 
forecast
 
cash
 
flows
affect profit
 
or loss,
 
including
 
discontinued
 
hedges for which
 
forecast
 
cash flows are
 
expected to
 
occur.
 
If the
 
forecast
transactions
 
are
 
no
 
longer
 
expected
 
to
 
occur,
 
the
 
deferred
 
gains
 
or
 
losses
 
are
 
immediately reclassified
 
to
 
the
 
income
statement.
Hedges of net investments in foreign
 
operations
Gains or losses
 
on the
 
hedging
 
instrument relating
 
to the effective
 
portion of
 
a hedge
 
are recognized
 
directly in
Other
comprehensive income
 
within
Equity,
while any gains
 
or losses
 
relating to the
 
ineffective and
 
/ or undesignated
 
portion
(for example,
 
the interest element
 
of a forward contract)
 
are recognized in the income
 
statement. Upon disposal or
 
partial
disposal of
 
the foreign operation,
 
the cumulative value of
 
any such
 
gains or losses
 
recognized in
Equity
 
associated with
the entity
 
is reclassified to
Other income
.
Interest Rate Benchmark Reform
 
UBS continues
 
hedge accounting during
 
the period of uncertainty before existing
 
interest rate benchmarks
 
are replaced
with alternative risk-free
 
interest rates.
 
During this
 
period, UBS
 
assumes that the
 
current benchmark rates
 
will continue
to exist, such that forecast
 
transactions are considered
 
highly probable and
 
hedge relationships
 
remain, with little
 
or no
consequential impact on the
 
financial statements. Upon
 
replacement of existing
 
interest rate benchmark
 
s
 
by alternative
risk-free interest rates, UBS
 
applies the requirements
 
of
Amendments to IFRS 9,
 
IAS 39, IFRS 7, IFRS 4
 
and IFRS 16 (Interest
Rate Benchmark Reform – Phase 2),
where applicable
.
 
›
 
Refer to Note 25
 
for more information
3)
 
Fee and commission income and
 
expenses
UBS
 
earns fee
 
income from
 
the diverse
 
range
 
of services
 
it provides
 
to its
 
clients. Fee
 
income can
 
be divided
 
into two
broad
 
categories:
 
fees
 
earned
 
from
 
services
 
that
 
are
 
provided
 
over
 
a
 
certain
 
period
 
of
 
time, such
 
as
 
management
 
of
clients’
 
assets,
 
custody
 
services
 
and
 
certain
 
advisory
 
services;
 
and
 
fees
 
earned
 
from
 
point-in-time
 
services,
 
such
 
as
underwriting
 
fees,
 
deal-contingent
 
merger
 
and
 
acquisitions
 
fees,
 
and
 
brokerage
 
fees
 
(e.g.,
 
securities
 
and
 
derivatives
execution and clearing). UBS recognizes
 
fees earned from PIT services when it has fully provided the
 
service to the client.
Where the contract requires services to be provided over time, income is recognized
 
on a systematic basis over the life of
the agreement.
Consideration
 
received is
 
allocated
 
to
 
the
 
separately identifiable
 
performance
 
obligations
 
in
 
a
 
contract. Owing
 
to
 
the
nature of UBS’s business,
 
contracts that include multiple performance
 
obligations are typically those
 
that are considered
to include
 
a series of
 
similar performance
 
obligations fulfilled
 
over time
 
with the same
 
pattern of
 
transfer to the
 
client,
e.g.,
 
management
 
of
 
client
 
assets
 
and
 
custodial
 
services.
 
As
 
a
 
consequence,
 
UBS
 
is
 
not
 
required
 
to
 
apply
 
significant
judgment in allocating the consideration
 
received across the various
 
performance obligations.
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
272
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
PIT services
 
are generally
 
for a
 
fixed price
 
or dependent
 
on deal
 
size, e.g.,
 
a fixed number
 
of basis
 
points of
 
trade size,
where the amount of revenue is known when the performance obligation is met. Fixed
 
-over-time fees are recognized on
a straight-line
 
basis over the
 
performance period. Custodial and asset
 
management fees can
 
be variable
 
through reference
to
 
the
 
size
 
of
 
the
 
customer
 
portfolio.
 
However,
 
they
 
are
 
generally
 
billed
 
on
 
a
 
monthly
 
or
 
quarterly
 
basis
 
once
 
the
customer’s
 
portfolio
 
size
 
is
 
known
 
or
 
known
 
with
 
near
 
certainty
 
and
 
therefore
 
also
 
recognized
 
ratably
 
over
 
the
performance period.
 
UBS does not
 
recognize performance fees
 
related to management
 
of clients’ assets
 
or fees related
to contingencies beyond UBS’s
 
control until such uncertainties are resolved.
 
UBS’s
 
fees
 
are
 
generally
 
earned
 
from
 
short-term
 
contracts.
 
As
 
a
 
result,
 
UBS’s
 
contracts
 
do
 
not
 
include
 
a
 
financing
component
 
or result
 
in the
 
recognition of
 
significant receivables
 
or prepayment
 
assets. Furthermore,
 
due
 
to the
 
short-
term nature of such contracts,
 
UBS has not capitalized
 
any material costs to obtain
 
or fulfill a contract
 
or generated any
significant contract assets or liabilities.
UBS presents expenses primarily in line with their nature in the
 
income statement, differentiating between
 
expenses that
are directly
 
attributable to the satisfaction
 
of specific performance obligations associated with
 
the generation of
 
revenues,
which
 
are
 
generally
 
presented
 
within
Total
 
revenues
 
as
Fee
 
and
 
commission
 
expense
,
 
and
 
those
 
that
 
are
 
related
 
to
personnel, general and administrative
 
expenses, which are
 
presented within
Operating expenses
. For
 
derivatives execution
and clearing services (where
 
UBS acts as an agent),
 
UBS only records its specific
 
fees in the income statement,
 
with fees
payable to other parties not recognized
 
as an expense but instead directly offset against the associated income collected
from the given client.
›
 
Refer to Note 4 for
 
more information,
 
including the disaggregation
 
of revenues
4) Share-based and other deferred
 
compensation plans
UBS
 
recognizes expenses
 
for deferred
 
compensation
 
awards
 
over
 
the period
 
that the
 
employee is
 
required
 
to provide
service to
 
become entitled
 
to the
 
award.
 
Where the
 
service period
 
is shortened,
 
for example in
 
the case
 
of employees
affected by restructuring programs or mutually agreed termination provisions, recognition
 
of such expense is accelerated
to the
 
termination date.
 
Where no
 
future service
 
is required,
 
such as
 
for employees
 
who are
 
eligible for
 
retirement or
who
 
have
 
met
 
certain
 
age
 
and
 
length-of-service
 
criteria,
 
the
 
services
 
are
 
presumed
 
to
 
have
 
been
 
received
 
and
compensation expense
 
is recognized
 
over the performance
 
year or,
 
in the case
 
of off-cycle
 
awards, immediately
 
on the
grant date.
Share-based compensation plans
Share-based compensation
 
expense is
 
measured by
 
reference to the
 
fair value of
 
the equity instruments
 
on the
 
date of
grant, taking
 
into account
 
the terms
 
and
 
conditions
 
inherent
 
in the
 
award,
 
including, where
 
relevant, dividend
 
rights,
transfer restrictions in effect
 
beyond
 
the vesting date, market conditions, and
 
non-vesting conditions.
 
For equity-settled awards,
 
fair value is not
 
remeasured unless
 
the terms of
 
the award are modified
 
such that there
 
is an
incremental
 
increase
 
in
 
value.
 
Expenses
 
are
 
recognized,
 
on
 
a
 
per-tranche
 
basis,
 
over
 
the
 
service
 
period
 
based
 
on
 
an
estimate of
 
the number
 
of instruments
 
expected
 
to vest
 
and
 
are adjusted
 
to reflect
 
the actual
 
outcomes
 
of service
 
or
performance conditions.
 
For equity-settled
 
awards,
 
forfeiture events
 
resulting
 
from a
 
breach
 
of a
 
non-vesting condition
 
(i.e., one
 
that does
 
not
relate to a service or performance condition)
 
do not result in any
 
adjustment to the share-based compensation
 
expense.
For
 
cash-settled
 
share-based
 
awards,
 
fair value
 
is
 
remeasured
 
at
 
each
 
reporting
 
date,
 
so
 
that
 
the
 
cumulative expense
recognized equals the cash distributed.
 
Other deferred compensation plans
Compensation
 
expense
 
for
 
other
 
deferred
 
compensation
 
plans
 
is
 
recognized
 
on
 
a
 
per-tranche
 
or
 
straight-line
 
basis,
depending
 
on
 
the nature
 
of the
 
plan. The
 
amount recognized
 
is measured
 
based on
 
the present
 
value of
 
the amount
expected to be paid under the plan and is remeasured at
 
each reporting date, so that the cumulative expense recognized
equals the cash or the fair value of
 
respective financial instruments distributed.
›
 
Refer to Note 27
 
for more information
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
273
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
5)
 
Post-employment benefit plans
Defined benefit plans
Defined benefit plans specify an amount of benefit that an employee will receive, which usually depends on one or more
factors,
 
such as
 
age, years
 
of service and
 
compensation.
 
The defined
 
benefit liability
 
recognized in
 
the balance sheet
 
is
the present value of the
 
defined
 
benefit obligation,
 
measured using the projected
 
unit credit method,
 
less the fair value
of
 
the
 
plan’s
 
assets
 
at
 
the balance
 
sheet
 
date,
 
with
 
changes
 
resulting
 
from
 
remeasurements
 
recorded
 
immediately
 
in
Other comprehensive income
. If the fair value of the plan’s
 
assets is higher than the present value of the defined
 
benefit
obligation, the recognition
 
of the resulting net asset
 
is limited to the present
 
value of economic benefits available
 
in the
form of
 
refunds from
 
the plan
 
or reductions
 
in future
 
contributions
 
to the plan.
 
Calculation o
 
f
 
the net
 
defined benefit
obligation or
 
asset takes
 
into account
 
the specific
 
features of
 
each plan,
 
including risk
 
sharing between
 
employee and
employer, and
 
is calculated periodically by independent
 
qualified actuaries.
 
Critical accounting estimates and judgments
The net defined benefit liability or asset at the balance sheet date and the related personnel expense depend on the expected future benefits to be provided,
determined
 
using
 
a
 
number
 
of
 
economic
 
and
 
demographic
 
assumptions.
 
A
 
range
 
of
 
assumptions
 
could
 
be
 
applied,
 
and
 
different
 
assumptions
 
could
significantly alter
 
the defined benefit
 
liability or
 
asset and
 
pension expense
 
recognized. The
 
most significant
 
assumptions include
 
life expectancy,
 
discount
rate,
 
expected salary
 
increases,
 
pension
 
increases
 
and interest
 
credits on
 
retirement
 
savings account
 
balances. Sensitivity
 
analysis for
 
reasonable possible
movements in each significant assumption
 
for UBS‘s post-employment obligations is
 
provided in Note 26.
›
 
Refer to Note 26
 
for more information
Defined contribution plans
A
 
defined
 
contribution
 
plan
 
pays
 
fixed
 
contributions
 
into
 
a
 
separate
 
entity
 
from
 
which
 
post-employment
 
and
 
other
benefits are paid. UBS has
 
no legal or constructive obligation to pay further
 
amounts if the plan
 
does not hold sufficient
assets to pay employees
 
the benefits relating to employee
 
service in the current
 
and prior periods. Compensation expense
is recognized
 
when the
 
employees have rendered
 
services in exchange
 
for contributions.
 
This is generally in
 
the year of
contribution. Prepaid
 
contributions are
 
recognized
 
as an
 
asset to the
 
extent that a
 
cash refund
 
or a reduction
 
in future
payments is available.
6)
 
Income taxes
UBS is subject to the income
 
tax laws of Switzerland
 
and those of the non
 
-Swiss jurisdictions in which UBS has
 
business
operations.
The Group’s provision for income taxes is composed
 
of current and deferred taxes. Current income taxes represent taxes
to be paid or refunded
 
for the current period or previous
 
periods.
 
Deferred tax
 
assets (DTAs) and
 
deferred tax liabilities
 
(DTLs) are recognized for
 
temporary differences between
 
the carrying
amounts
 
and
 
tax bases
 
of
 
assets
 
and
 
liabilities
 
that will
 
result
 
in deductible
 
or
 
taxable amounts
 
,
 
respectively
 
in
 
future
periods.
 
DTAs may also arise from
 
other sources, including
 
unused tax losses and
 
unused tax credits. DTAs and
 
DTLs are
measured
 
using
 
the applicable
 
tax
 
rates and
 
laws
 
that have
 
been
 
enacted or
 
substantively enacted
 
by
 
the end
 
of the
reporting period and
 
that will be in effect when such differences
 
are expected to reverse.
DTAs are
 
recognized only to
 
the extent it is
 
probable
 
that sufficient taxable profits
 
will be
 
available against which
 
these
differences can
 
be used
 
.
 
When an
 
entity or
 
tax group
 
has a
 
history of
 
recent
 
losses,
 
DTAs
 
are only
 
recognized
 
to the
extent there are sufficient
 
taxable temporary differences or there is
 
convincing other evidence
 
that sufficient taxable profit
will be available against which the
 
unused tax losses can be
 
utilized.
Deferred and current tax assets
 
and liabilities are offset when:
 
(i) they arise in the
 
same tax reporting group;
 
(ii) they relate
to the same
 
tax authority;
 
(iii) the legal
 
right to offset
 
exists;
 
and (iv) with
 
respect to
 
current taxes
 
they are
 
intended to
be settled net or realized simultaneously.
Current and deferred taxes are recognized
 
as income tax benefit or expense in the income statement, except
 
for current
and deferred taxes recognized in relation
 
to: (i) the acquisition of a subsidiary
 
(for which such amounts
 
would affect the
amount
 
of goodwill
 
arising from
 
the acquisition);
 
(ii) gains
 
and losses
 
on
 
the sale
 
of treasury
 
shares
 
(for which
 
the tax
effects
 
are
 
recognized
 
directly
 
in
Equity
);
 
(iii) unrealized
 
gains
 
or
 
losses
 
on
 
financial
 
instruments
 
that
 
are
 
classified
 
at
FVOCI; (iv) changes in fair value of
 
derivative instruments designated as cash flow hedges; (v) remeasurements of defined
benefit plans;
 
or (vi) certain
 
foreign currency
 
translations of
 
foreign operations.
 
Amounts relating
 
to points
 
(iii) through
(vi) above are recognized in
Other comprehensive income
 
within
Equity
.
UBS
 
reflects
 
the
 
potential
 
effect
 
of
 
uncertain
 
tax
 
positions
 
for
 
which
 
acceptance
 
by
 
the
 
relevant
 
tax
 
authority
 
is
 
not
considered probable by adjusting current or deferred
 
taxes, as applicable,
 
using either the most likely
 
amount or expected
value methods,
 
depending on
 
which method
 
is deemed
 
a better predictor
 
of the
 
basis on
 
which, and
 
extent to which,
the uncertainty will be resolved.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
274
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
Critical accounting estimates and
 
judgments
Tax
 
laws are complex, and
 
judgment and interpretations
 
about the application of
 
such laws are required
 
when accounting for income
 
taxes. UBS considers
the
 
performance
 
of its
 
businesses and
 
the accuracy
 
of historical
 
forecasts and
 
other factors
 
when evaluating
 
the recoverability
 
of its
 
DTAs,
 
including
 
the
remaining tax
 
loss carry-forward
 
period, and its assessment
 
of expected
 
future taxable profits
 
in the forecast
 
period used
 
for recognizing
 
DTAs. Estimating
future profitability and
 
business plan forecasts is inherently
 
subjective and is particularly sensitive to future
 
economic, market and other conditions.
 
Forecasts are
 
reviewed
 
annually,
 
but adjustments
 
may be
 
made at
 
other times,
 
if required.
 
If recent
 
losses have
 
been incurred,
 
convincing evidence
 
is
required
 
to prove
 
there is
 
sufficient future
 
profitability given
 
that the
 
value of
 
UBS’s DTAs
 
may be
 
affected, with effects
 
primarily recognized
 
through the
income statement.
In addition, judgment
 
is required to assess the expected value of uncertain tax positions and the related probabilities, including interpretation
 
of tax laws,
the resolution of any income tax-related
 
appeals and litigation.
 
›
 
Refer to Note 8 for
 
more information
 
7)
 
Property, equipment and software
Property,
 
equipment and
 
software
 
is measured
 
at
 
cost less
 
accumulated dep
 
reciation
 
and impairment
 
losses. Software
development costs are capitalized
 
only when the costs
 
can be measured reliably
 
and it is probable that
 
future economic
benefits
 
will
 
arise.
 
Depreciation
 
of
 
property,
 
equipment
 
and
 
software
 
begins
 
when
 
they
 
are
 
available
 
for
 
use
 
and
 
is
calculated on a straight line basis over an
 
asset’s estimated useful life.
 
Property,
 
equipment
 
and
 
software
 
are
 
generally
 
tested
 
for
 
impairment
 
at
 
the
 
appropriate
 
cash-generating
 
unit
 
level,
alongside goodwill and intangible assets as described in item 8 in this
 
Note. An impairment charge is recognized for such
assets
 
if
 
the
 
recoverable
 
amount
 
is
 
below
 
its
 
carrying
 
amount.
 
The
 
recoverable
 
amounts
 
of
 
such
 
assets,
 
other
 
than
property that has
 
a market price, are
 
generally determined
 
using a
 
replacement cost approach
 
that reflects the amount
that would be currently required by a market participant to replace the service capacity
 
of the asset. If such assets are no
longer used, they are tested individually for impairment.
›
 
Refer to Note 11
 
for more information
8) Goodwill
Goodwill
 
represents
 
the
 
excess of
 
the
 
consideration over
 
the
 
fair
 
value
 
of
 
identifiable assets,
 
liabilities and
 
contingent
liabilities acquired that arises in a
 
business combination.
 
Goodwill is not amortized, but is assessed for
 
impairment at the
end
 
of
 
each
 
reporting
 
period,
 
or
 
when
 
indicators
 
of
 
impairment
 
exist.
 
UBS
 
tests
 
goodwill
 
for
 
impairment
 
annually,
irrespective of whether
 
there is any indication
 
of impairment.
 
An impairment charge is recognized in the income
 
statement if the carrying
 
amount exceeds the recoverable amount
 
of a
cash-generating
 
unit.
 
 
Critical accounting estimates and judgments
UBS‘s methodology
 
for goodwill
 
impairment testing
 
is based
 
on a
 
model that
 
is most
 
sensitive to
 
the following
 
key assumptions
 
:
 
(i) forecasts of
 
earnings
available to shareholders
 
in years one to three; (ii) changes in
 
the discount rates; and (iii) changes in
 
the long-term growth rate.
 
Earnings available to shareholders
 
are estimated on
 
the basis of forecast
 
results, which are part
 
of the business plan approved
 
by the BoD. The discount
rates
 
and growth
 
rates are
 
determined using
 
external information,
 
and also
 
considering inputs
 
from both
 
internal and
 
external analysts
 
and the
 
view of
management.
 
The key assumptions
 
used to determine
 
the recoverable amounts
 
of each cash-generating
 
unit are tested
 
for sensitivity by applying
 
reasonably possible
changes to those assumptions.
 
›
 
Refer to Notes 2 and
 
12 for more information
 
9)
 
Provisions and contingent liabilities
Provisions are liabilities
 
of uncertain timing or
 
amount, and are
 
generally recognized
 
in accordance with
 
IAS 37,
Provisions,
Contingent
 
Liabilities and
 
Contingent
 
Assets
, when:
 
(i) UBS has
 
a present
 
obligation as
 
a result
 
of a
 
past event;
 
(ii) it is
probable that an outflow of resources
 
will be required to settle the obligation;
 
and (iii) a reliable estimate of the amount
of the obligation can be
 
made.
 
The majority of UBS’s provisions relate to litigation,
 
regulatory and similar matters, restructuring, and
 
employee benefits.
Restructuring provisions
 
are generally
 
recognized
 
as a
 
consequence
 
of management
 
agreeing to
 
materially change
 
the
scope of
 
the business
 
or the manner
 
in which
 
it is conducted,
 
including changes
 
in management
 
structures. Provisions
for employee benefits relate
 
mainly to service anniversaries
 
and sabbatical leave,
 
and are
 
recognized in accordance
 
with
measurement principles
 
set out
 
in item 4
 
in this Note.
 
In addition,
 
UBS presents
 
expected credit loss
 
allowances within
Provisions
 
if they relate to a loan commitment,
 
financial guarantee contract or
 
a revolving revocable credit line.
IAS 37 provisions are measured
 
considering the best
 
estimate
 
of the consideration
 
required to settle
 
the present obligation
at the balance sheet date.
 
When conditions required to recognize a provision
 
are not met, a contingent liability is disclosed, unless the likelihood of
an outflow
 
of resources
 
is remote.
 
Contingent liabilities
 
are also
 
disclosed
 
for possible
 
obligations
 
that arise
 
from past
events, the existence of which will
 
be confirmed only by uncertain future
 
events not wholly within the
 
control of UBS.
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
275
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
 
Critical accounting estimates and judgments
Recognition of provisions
 
often involves significant
 
judgment in assessing
 
the existence of
 
an obligation that
 
results from
 
past events and in
 
estimating the
probability,
 
timing and
 
amount of any
 
outflows of
 
resources.
 
This is particularly
 
the case
 
for litigation,
 
regulatory and
 
similar matters,
 
which, due
 
to their
nature, are
 
subject to many uncertainties,
 
making their outcome
 
difficult to predict.
 
The amount
 
of any
 
provision recognized
 
is sensitive
 
to the assumptions
 
used and
 
there could
 
be a wide
 
range of possible
 
outcomes for
 
any particular
matter.
Management regularly reviews
 
all the available information
 
regarding such matters,
 
including legal advice, to assess whether
 
the recognition criteria
 
for
provisions have been satisfied and
 
to determine the timing and amount of any potential
 
outflows.
›
 
Refer to Note 17
 
for more information
10)
 
Foreign currency translation
Transactions
 
denominated in a foreign
 
currency are translated into the
 
functional currency of the reporting
 
entity at the
spot
 
exchange rate
 
on
 
the date
 
of
 
the transaction.
 
At the
 
balance
 
sheet date,
 
all monetary
 
assets,
 
including
 
those
 
at
FVOCI,
 
and
 
monetary liabilities
 
denominated
 
in
 
foreign
 
currency are
 
translated
 
into
 
the
 
functional
 
currency using
 
the
closing exchange rate. Translation
 
differences are
 
reported in
Other net income
 
from financial instruments
 
measured at
fair value through profit or loss
.
Non-monetary items measured
 
at historical cost are translated at the exchange
 
rate on the date of the
 
transaction.
 
Upon consolidation,
 
assets and liabilities
 
of foreign
 
operations are
 
translated
 
into US dollars,
 
UBS’s presentation
 
currency,
 
at
the closing exchange rate
 
on the balance sheet date,
 
and income and expense
 
items and other comprehensive
 
income are
translated at the average
 
rate for the period.
 
The resulting foreign
 
currency translation
 
differences are recognized
 
in
Equity
 
and reclassified
 
to the income
 
statement when
 
UBS disposes
 
of, partially
 
or in its
 
entirety, the
 
foreign
 
operation and
 
UBS no
longer controls the
 
foreign operation.
Share
 
capital issued,
 
share premium and treasury
 
shares held are translated
 
at the historic average
 
rate, with the
 
difference
between the historic average
 
rate and the
 
spot rate realized upon
 
repayment of share
 
capital or disposal
 
of treasury shares
reported as
Share premium.
 
Cumulative
 
amounts
 
recognized in
Other
 
comprehensive
 
income
 
in respect
 
of cash
 
flow hedges
and financial assets measured
 
at FVOCI are translated
 
at the closing exchange rate as
 
of the balance sheet dates, with
 
any
translation effects
 
adjusted through
Retained earnings
.
›
 
Refer to Note 32
 
for more information
11)
 
Equity, treasury shares and contracts on UBS
 
Group AG shares
Proceeds from
 
the issuance
 
of shares
 
are recognized
 
in
Share capital
 
for the nominal
 
value, with the
 
balance presented
in
Share premium
.
UBS Group AG shares held
 
(treasury shares)
UBS Group
 
AG shares held
 
by the Group
 
,
 
including those
 
purchased as
 
part of market-making
 
activities, are
 
presented
in
Equity
 
as
Treasury
 
shares
 
at their
 
acquisition
 
cost and
 
are deducted
 
from
Equity
 
until they
 
are canceled
 
or reissued.
The difference between
 
the proceeds from sales of
 
treasury shares and
 
their weighted average cost (net of tax,
 
if any) is
reported as
Share premium
.
Contracts on UBS Group AG
 
shares
Contracts involving
 
UBS Group
 
AG shares
 
that require
 
net cash
 
settlement, or
 
provide
 
the counterparty
 
or UBS
 
with a
settlement option that includes a choice of
 
settling net in cash, are classified
 
as derivatives held for trading.
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
276
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
 
b) Changes in accounting policies, comparability
 
and other adjustments
 
Changes to the presentation
 
of the financial statements
During 2022,
 
UBS made several
 
changes to
 
simplify the presentation
 
of the income
 
statement alongside
 
other primary
financial statements and disclosure notes, and to
 
align them with management information. In
 
particular,
Total operating
income
 
has been renamed
Total revenues
 
and excludes
Credit loss expense / (release)
, which is now separately presented
below
Total revenues
.
Reclassification of a portfolio from
Financial assets measured at fair value
 
through other comprehensive income
 
to
Other financial assets measured at amortized
 
cost
Effective from 1 April 2022, UBS has reclassified a
 
portfolio of financial assets from
Financial assets measured at fair value
through other comprehensive income
 
with a fair value of USD
6.9
bn (the Portfolio) to
Other financial assets measured at
amortized cost
, in line with the principles in IFRS 9,
Financial Instruments
, which require a reclassification
 
when an entity
changes its business model
 
for managing financial assets.
The Portfolio’s cumulative fair value losses of USD
449
m pre-tax and USD
333
m post-tax, previously recognized in
Other
comprehensive
 
income
,
 
have
 
been
 
removed
 
from
 
equity
 
and
 
adjusted
 
against
 
the
 
value
 
of
 
the
 
assets
 
on
 
the
reclassification date, so
 
that the Portfolio is
 
measured as if the
 
assets had always been
 
classified at amortized cost,
 
with
a value of USD
7.4
bn as on 1 April 2022. The reclassification had
 
no effect on the income statement.
 
The reclassified Portfolio is made up of high-quality liquid assets, primarily US government treasuries and US government
agency mortgage-backed securities, held
 
and separately managed by
 
UBS Bank USA (BUSA).
The accounting
 
reclassification has
 
arisen as a
 
direct result
 
of the transformation
 
of UBS’s
 
Global Wealth Management
Americas
 
business,
 
which
 
has
 
significantly
 
impacted
 
BUSA.
 
This
 
includes
 
initiatives
 
approved
 
by
 
the
 
Group
 
Executive
Board to significantly grow
 
and extend the business,
 
as disclosed on
 
1 February 2022 during
 
UBS’s fourth quarter 2021
earnings presentation.
 
Over the two
 
years preceding
 
the reclassification
 
date,
 
BUSA’s deposit
 
base grew
 
by more than
100% generating substantial cash
 
balances, with a number
 
of new products being
 
launched, including new deposit
 
types
that are longer in duration,
 
additional lending and a broader
 
range of customer segments targeted.
Following the commencement of these activities
 
and the announcement
 
made in the first quarter of 2022,
 
the Portfolio
is no longer held in a business model to collect the contractual cash flows and sell the assets, but is instead solely held to
collect the contractual
 
cash flows
 
until the assets
 
mature, requiring
 
a reclassification
 
of the Portfolio
 
in line
 
with IFRS
 
9
with effect from 1 April 2022.
The fair
 
value of
 
the Portfolio
 
as on
 
31 December 2022
 
was USD
5.8
bn. A
 
pre-tax fair
 
value
 
loss of
 
USD
981
m would
have been recognized in
Other comprehensive income
 
during 2022
 
if the Portfolio had not been
 
reclassified.
›
 
Refer to the Statement
 
of changes in equity
 
and Note 20
 
for more information
 
about the effects
 
from the reclassification
 
of the
Portfolio
Accounting for obligations
 
to safeguard crypto-assets an entity h
 
olds for platform users (SAB
 
121)
In
 
March
 
2022,
 
the
 
US
 
Security
 
and
 
Exchange
 
Commission
 
(the
 
SEC)
 
issued
 
Staff
 
Accounting
 
Bulletin
 
(SAB)
 
121,
“Accounting
 
for obligations
 
to safeguard
 
crypto-assets an
 
entity holds
 
for platform
 
users.” SAB
 
121
 
adds interpretive
guidance
 
requiring
 
SEC
 
registrants,
 
including
 
foreign
 
private
 
issuers
 
that
 
apply
 
IFRS,
 
to
 
recognize
 
a
 
liability
 
on
 
their
balance sheets
 
to reflect the obligation to safeguard any digital asset that is issued or transferred using distributed ledger
or blockchain
 
technology and
 
held for
 
their platform users,
 
along with
 
a corresponding asset.
 
The guidance
 
is effective
for UBS
 
for annual
 
reporting from
 
2022 onwards.
 
Amounts that would
 
be recognized
 
as liabilities, with
 
corresponding
assets, under this guidance
 
are not material to UBS.
 
c)
 
International Financial Reporting
 
Standards and Interpretations
 
to be adopted in
 
2023
 
and later and other
changes
IFRS 17,
 
Insurance Contracts
In May 2017,
 
the IASB issued
 
IFRS 17,
Insurance Contracts
, which
 
sets out
 
the accounting requirements
 
for contractual
rights and obligations that arise from insurance contracts issued
 
and reinsurance contracts held. IFRS 17 is effective from
1 January
 
2023.
 
Adoption
 
on
 
1 January
 
2023
 
will have
 
no
 
effect on
 
the
 
Group’s
 
financial statements
 
.
 
UBS
 
does
 
not
provide insurance services in any
 
market.
Other amendments to IFRS
The IASB
 
has issued
 
a number
 
of minor
 
amendments to
 
IFRS,
 
effective from
 
1 January
 
2023
 
and
 
in later
 
years. These
amendments are not expected to
 
have a significant effect on
 
the Group when
 
they are adopted.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
277
 
 
Note 2a
 
Segment reporting
UBS’s businesses
 
are organized globally into
 
four business divisions:
 
Global Wealth Management,
 
Personal & Corporate
Banking, Asset Management and the Investment Bank. All four business divisions are supported by Group
 
Functions and
qualify as reportable segments for
 
the purpose of segment
 
reporting. Together
 
with Group Functions, the
 
four business
divisions reflect the management structure
 
of the Group
 
.
–
 
Global Wealth
 
Management
 
provides
 
financial services,
 
advice and
 
solutions to
 
private wealth
 
clients.
 
Its offering
ranges from
 
investment management
 
to estate planning
 
and corporate finance
 
advice, in
 
addition to
 
specific wealth
management and banking
 
products and services.
 
–
 
Personal
 
&
 
Corporate
 
Banking
 
serves
 
its
 
private,
 
corporate,
 
and
 
institutional
 
clients’
 
needs,
 
from
 
banking
 
to
retirement, financing,
 
investments and
 
strategic transactions
 
,
 
in Switzerland,
 
through its
 
branch network
 
and digital
channels.
–
 
Asset Management
 
is a global,
 
large-scale and diversified
 
asset manager. It
 
offers investment
 
capabilities and styles
across
 
all
 
major
 
traditional
 
and
 
alternative
 
asset
 
classes,
 
as
 
well
 
as
 
advisory
 
support
 
to
 
institutions,
 
wholesale
intermediaries and wealth management
 
clients.
 
–
 
The
Investment Bank
 
provides a range of services
 
to institutional, corporate and wealth management clients globally,
to
 
help
 
them
 
raise
 
capital,
 
grow
 
their
 
businesses,
 
invest
 
and
 
manage
 
risks.
 
Its
 
offering
 
includes
 
research,
 
advisory
services, facilitating clients raising
 
debt and equity from the public
 
and private markets
 
and capital markets,
 
cash and
derivatives trading across equities and
 
fixed income,
 
and financing.
 
–
 
Group
 
Functions
 
is
 
made
 
up
 
of
 
the
 
following
 
major
 
areas:
 
Group
 
Services
 
(which
 
consists
 
of
 
Chief
 
Digital
 
and
Information
 
Office,
 
Communications
 
&
 
Branding,
 
Compliance,
 
Finance,
 
Group
 
Sustainability
 
and
 
Impact,
 
Human
Resources,
 
Group
 
Legal,
 
Regulatory
 
&
 
Governance,
 
and
 
Risk
 
Control),
 
Group
 
Treasury
 
and
 
Non-core
 
and
 
Legacy
Portfolio.
 
Financial
 
information
 
about
 
the
 
four
 
business
 
divisions
 
and
 
Group
 
Functions
 
is
 
presented
 
separately
 
in
 
internal
management reports to the Group
 
Executive Board (the GEB),
 
which is considered the “chief operating decision maker”
pursuant to IFRS 8,
Operating Segments
.
UBS’s
 
internal
 
accounting
 
policies,
 
which
 
include
 
management
 
accounting
 
policies
 
and
 
service
 
level
 
agreements,
determine
 
the
 
revenues
 
and
 
expenses
 
directly
 
attributable
 
to
 
each
 
reportable
 
segment.
 
Transactions
 
between
 
the
reportable segments are carried out
 
at internally agreed rates and are reflected in
 
the operating results of the reportable
segments.
 
Revenue-sharing
 
agreements
 
are
 
used
 
to
 
allocate
 
external
 
client
 
revenues
 
to
 
reportable
 
segments
 
where
several
 
reportable
 
segments
 
are
 
involved
 
in
 
the
 
value
 
creation
 
chain.
 
Total
 
intersegment
 
revenues
 
for
 
the
 
Group
 
are
immaterial, as the majority of
 
the revenues are allocated across
 
the segments by means
 
of revenue-sharing agreements.
Interest
 
income
 
earned
 
from
 
managing
 
UBS’s
 
consolidated
 
equity
 
is
 
allocated
 
to
 
the
 
reportable
 
segments
 
based
 
on
average attributed equity and currency composition. Assets and liabilities of the reportable segments are funded through
and invested with Group
 
Functions, and the net interest margin is reflected in
 
the results of each
 
reportable segment.
Segment
 
assets
 
are
 
based
 
on
 
a
 
third-party
 
view
 
and
 
do
 
not
 
include
 
intercompany
 
balances.
 
This
 
view
 
is
 
in
 
line
 
with
internal
 
reporting
 
to
 
the
 
GEB.
 
If one
 
operating
 
segment
 
is
 
involved
 
in
 
an
 
external
 
transaction
 
together
 
with
 
another
operating segment
 
or Group Functions,
 
additional criteria are considered
 
to determine the
 
segment that will
 
report the
associated
 
assets.
 
This
 
will
 
include
 
a
 
consideration
 
of
 
which
 
segment’s
 
business
 
needs
 
are
 
being
 
addressed
 
by
 
the
transaction
 
and
 
which
 
segment
 
is
 
providing
 
the
 
funding
 
and
 
/
 
or
 
resources.
 
Allocation
 
of
 
liabilities
 
follows
 
the
 
same
principles.
Non-current
 
assets disclosed
 
for segment
 
reporting
 
purposes
 
represent
 
assets that
 
are expected
 
to be
 
recovered
 
more
than
 
12
 
months
 
after
 
the
 
reporting
 
date,
 
excluding
 
financial
 
instruments,
 
deferred
 
tax
 
assets
 
and
 
post-employment
benefits.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
278
 
 
Note 2a
 
Segment reporting (continued)
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Group
Functions
UBS
For the year ended 31 December
 
2022
Net interest income
5,273
2,191
(19)
(242)
(584)
6,621
Non-interest income
13,694
2,111
2,980
1
8,958
199
27,942
Total revenues
18,967
4,302
2,961
8,717
(385)
34,563
Credit loss expense / (release)
0
39
0
(12)
3
29
Operating expenses
13,989
2,452
1,564
6,832
92
24,930
Operating profit / (loss) before
 
tax
4,977
1,812
1,397
1,897
(480)
9,604
Tax expense / (benefit)
1,942
Net profit / (loss)
7,661
Additional information
Total assets
388,530
235,226
17,348
391,320
71,940
1,104,364
Additions to non-current assets
42
13
1
34
1,970
2,060
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Group
Functions
UBS
For the year ended 31 December
 
2021
Net interest income
4,244
2,120
(15)
481
(127)
6,705
Non-interest income
15,175
2,143
2,632
8,972
(233)
28,689
Total revenues
19,419
4,263
2,617
9,454
(359)
35,393
Credit loss expense / (release)
(29)
(86)
1
(34)
0
(148)
Operating expenses
14,665
2,618
1,586
6,858
330
26,058
Operating profit / (loss) before
 
tax
4,783
1,731
1,030
2,630
(689)
9,484
Tax expense / (benefit)
1,998
Net profit / (loss)
7,486
Additional information
Total assets
2
395,235
225,370
25,639
346,431
124,507
1,117,182
Additions to non-current assets
56
16
1
30
1,989
2,091
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Group
Functions
UBS
For the year ended 31 December
 
2020
Net interest income
4,027
2,049
(17)
284
(481)
5,862
Non-interest income
3
13,107
1,858
2,993
9,235
30
27,222
Total revenues
17,134
3,908
2,975
9,519
(452)
33,084
Credit loss expense / (release)
88
257
2
305
42
694
Operating expenses
13,026
2,392
1,519
6,732
567
24,235
Operating profit / (loss) before
 
tax
4,019
1,259
1,455
2,482
(1,060)
8,155
Tax expense / (benefit)
1,583
Net profit / (loss)
6,572
Additional information
Total assets
367,714
231,657
28,589
369,683
128,122
1,125,765
Additions to non-current assets
5
12
385
150
2,294
2,847
1 Includes an USD
848
m gain in Asset
 
Management related
 
to the sale
 
of UBS’s
 
shareholding in
 
Mitsubishi Corp.-UBS
 
Realty Inc.
 
2 During 2022,
 
UBS refined
 
the methodology applied
 
to allocate
 
balance sheet
resources from Group Functions
 
to the business divisions,
 
with prospective effect. If the
 
new methodology had been
 
applied as of 31 December
 
2021, balance sheet assets allocated
 
to business divisions would
 
have
been USD
26
bn higher, of which USD
14
bn related to the Investment Bank.
 
3 Includes a USD
631
m net gain on the sale of a majority stake in Fondcenter AG (now Clearstream
 
Fund Centre AG), of which USD
571
m
was recognized in Asset
 
Management and USD
60
m was recognized in Global
 
Wealth Management.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
279
 
 
Note 2b
 
Segment
 
reporting by geographic location
The operating
 
regions shown
 
in the
 
table below
 
correspond
 
to the
 
regional
 
management structure
 
of the
 
Group. The
allocation of total revenues
 
to these regions reflects, and
 
is consistent with, the basis
 
on which the business
 
is managed
and its
 
performance is
 
evaluated. These
 
allocations
 
involve assumptions
 
and judgments
 
that management
 
considers to
be reasonable, and
 
may be refined to reflect
 
changes in estimates
 
or management
 
structure. The
 
main principles of the
allocation methodology are
 
that client revenues are
 
attributed to the
 
domicile of the
 
given client and
 
trading and portfolio
management revenues
 
are attributed
 
to the
 
country where
 
the
 
risk is
 
managed.
 
This revenue
 
attribution
 
is
 
consistent
with the mandate of the regional Presidents. Certain revenues,
 
such as those related to Non-core and Legacy Portfolio in
Group Functions, are
 
managed at a Group level. These revenues
 
are included in the
Global
 
line.
The geographic analysis of non-current
 
assets is based on
 
the location of
 
the entity
 
in which the given assets
 
are recorded.
 
For the year ended 31 December
 
2022
Total revenues
1
Total non-current assets
USD bn
Share %
USD bn
Share %
 
Americas
2
13.8
40
8.9
46
Asia Pacific
5.6
16
1.5
8
Europe, Middle East and Africa (excluding
 
Switzerland)
7.0
20
2.9
15
Switzerland
7.7
22
6.3
32
Global
0.5
1
0.0
0
Total
34.6
100
19.7
100
For the year ended 31 December
 
2021
Total revenues
1
Total non-current assets
USD bn
Share %
USD bn
Share %
 
Americas
2
14.5
41
9.0
44
Asia Pacific
6.5
18
1.5
7
Europe, Middle East and Africa (excluding
 
Switzerland)
7.0
20
2.9
14
Switzerland
7.8
22
7.1
35
Global
(0.3)
(1)
0.0
0
Total
35.4
100
20.5
100
For the year ended 31 December
 
2020
Total revenues
1
Total non-current assets
USD bn
Share %
USD bn
Share %
 
Americas
2
13.2
40
9.0
42
Asia Pacific
6.1
18
1.5
7
Europe, Middle East and Africa (excluding
 
Switzerland)
6.5
20
3.0
14
Switzerland
7.1
22
7.6
36
Global
0.1
0
0.0
0
Total
33.1
100
21.1
100
1 During 2022, UBS changed
 
the presentation
 
of its Income statement. Total
 
operating income was
 
renamed Total
 
revenues and excludes Credit
 
loss expense
 
/ (release). Note 2b,
 
including prior-period
 
information,
has been updated to reflect
 
the new presentation structure,
 
with the disclosure
 
of Total revenues
 
instead of Total operating
 
income. Refer to
 
Note 1b for more information.
 
2 Predominantly related
 
to the USA.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
280
 
Income statement notes
Note 3
 
Net interest
 
income and other net
 
income from financial
 
instruments measured
 
at fair value through
profit or loss
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Net interest income from financial instruments measured
 
at fair value through profit or
 
loss and other
1,403
1,431
1,299
Other net income from financial instruments measured
 
at fair value through profit or
 
loss
7,517
5,850
6,960
of which: net gains / (losses) from financial liabilities designated
 
at fair value
1
17,037
(6,582)
1,509
Total net income from
 
financial instruments measured at fair value
 
through profit or loss and other
8,920
7,281
8,259
Net interest income
Interest income from loans and deposits
2
9,612
6,488
6,690
Interest income from securities financing transactions
 
measured at amortized cost
3
1,378
513
862
Interest income from other financial instruments measured
 
at amortized cost
545
284
335
Interest income from debt instruments measured at fair
 
value through other comprehensive
 
income
74
115
101
Interest income from derivative instruments designated as
 
cash flow hedges
 
173
1,133
822
Total interest income
 
from financial instruments measured at
 
amortized cost and fair value through
 
other comprehensive income
11,782
8,533
8,810
Interest expense on loans and deposits
4
2,579
523
1,031
Interest expense on securities financing transactions
 
measured at amortized cost
5
1,089
1,102
870
Interest expense on debt issued
2,803
1,533
2,237
Interest expense on lease liabilities
92
102
110
Total interest expense
 
from financial instruments measured at
 
amortized cost
6,564
3,259
4,247
Total net interest income
 
from financial instruments measured at amortized
 
cost and fair value through
 
other comprehensive income
5,218
5,274
4,563
Total net interest income
 
from financial instruments measured at
 
fair value through profit or loss and other
1,403
1,431
1,299
Total net interest income
6,621
6,705
5,862
1 Excludes fair value changes of hedges related to financial
 
liabilities designated at fair value and foreign
 
currency translation effects
 
arising from translating foreign currency
 
transactions into the respective functional
currency, both of which are reported within Other
 
net income from financial instruments measured at fair value
 
through profit or loss. 2022
 
included net gains of USD
4,112
m (net losses of USD
2,068
m and USD
72
m
in 2021 and 2020,
 
respectively), driven
 
by financial liabilities
 
related to unit-linked
 
investment contracts,
 
which are
 
designated at fair
 
value through
 
profit or loss.
 
This was
 
offset by net
 
losses of USD
4,112
m (net
gains of USD
2,068
m and
 
USD
72
m in 2021
 
and 2020, respectively),
 
related to financial
 
assets for unit-linked
 
investment contracts
 
that are
 
mandatorily
 
measured at fair
 
value through
 
profit or loss
 
not held for
trading.
 
2 Consists of interest income
 
from cash and balances at central
 
banks, loans and advances
 
to banks and customers,
 
and cash collateral receivables
 
on derivative instruments,
 
as well as negative interest on
amounts due to banks, customer deposits, and cash collateral payables on derivative instruments.
 
3 Includes negative interest, including fees, on payables from
 
securities financing transactions measured at amortized
cost.
 
4 Consists of interest
 
expense on amounts
 
due to banks,
 
cash collateral
 
payables on
 
derivative instruments,
 
and customer
 
deposits, as well
 
as negative interest
 
on cash and balances
 
at central banks,
 
loans
and advances to banks,
 
and cash collateral receivables
 
on derivative instruments.
 
5 Includes negative interest,
 
including fees,
 
on receivables from
 
securities financing transactions
 
measured at amortized cost.
 
 
 
Note 4
 
Net fee and commission income
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Underwriting fees
579
1,463
1,085
M&A and corporate finance fees
804
1,102
736
Brokerage fees
3,484
4,382
4,132
Investment fund fees
4,942
5,790
5,289
Portfolio management and related services
9,059
9,762
8,009
Other
1,920
1,874
1,710
Total fee and commission
 
income
1
20,789
24,372
20,961
of which: recurring
14,229
15,410
13,009
of which: transaction-based
6,492
8,692
7,491
of which: performance-based
68
269
461
Fee and commission expense
1,823
1,985
1,775
Net fee and commission income
18,966
22,387
19,186
1 For the
 
year ended 31
 
December 2022,
 
reflects third-party
 
fee and commission
 
income of
 
USD
12,990
m for Global
 
Wealth Management,
 
USD
1,654
m for Personal
 
& Corporate
 
Banking, USD
2,840
m for Asset
Management, USD
3,296
m for the Investment Bank and
 
USD
10
m for Group Functions (for
 
the year ended 31 December
 
2021: USD
14,545
m for Global
 
Wealth Management, USD
1,644
m for Personal & Corporate
Banking, USD
3,337
m for
 
Asset Management,
 
USD
4,814
m for
 
the Investment
 
Bank and
 
USD
33
m for
 
Group Functions;
 
for the
 
year
 
ended 31
 
December 2020:
 
USD
12,475
m for
 
Global
 
Wealth Management,
USD
1,426
m for Personal & Corporate
 
Banking, USD
3,129
m for Asset Management, USD
3,882
m for the Investment Bank and
 
USD
49
m for Group Functions).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
281
 
 
Note 5
 
Other income
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Associates, joint ventures and
 
subsidiaries
Net gains / (losses) from acquisitions and disposals of subsidiaries
1
148
(11)
635
2
Net gains / (losses) from disposals of investments in associates
 
and joint ventures
844
3
41
0
Share of net profits of associates and joint ventures
32
105
84
Total
1,024
135
719
Net gains / (losses) from disposals of financial assets measured
 
at fair value through other
 
comprehensive income
(1)
9
40
Income from properties
4
20
23
26
Net gains / (losses) from properties held for sale
24
100
5
76
6
Other
391
7
185
8
216
9
Total other income
1,459
452
1,076
1 Includes foreign exchange
 
gains / (losses) reclassified from
 
other comprehensive income
 
related to the disposal
 
or closure of foreign
 
operations. Refer
 
to Note 29 for more information
 
about UBS’s acquisitions
 
and
disposals of subsidiaries and
 
businesses.
 
2 Includes a USD
631
m net gain on the sale
 
of a majority stake in Fondcenter
 
AG (now Clearstream
 
Fund Centre AG).
 
3 Includes an USD
848
m gain related to the sale of
UBS’s shareholding in
 
Mitsubishi Corp.-UBS Realty
 
Inc. Refer to Note 28b for
 
more information.
 
4 Includes rent received from third
 
parties.
 
5 Mainly relates to the sale
 
of a property in Basel.
 
6 Includes net gains
of USD
140
m arising from
 
sale-and-leaseback
 
transactions,
 
primarily related to
 
a property
 
in Geneva,
 
partly offset
 
by remeasurement
 
losses relating
 
to properties that
 
were reclassified
 
as held for
 
sale.
 
7 Mainly
relates to a portion
 
of the total USD
133
m gain on the sale
 
of UBS’s domestic
 
wealth management
 
business in Spain of
 
USD
111
m (with the remaining
 
amount disclosed within Net
 
gains / (losses) from
 
acquisitions
and disposals
 
of subsidiaries), income
 
of USD
111
m related to
 
a legacy litigation
 
settlement and
 
a legacy
 
bankruptcy claim,
 
as well
 
as gains
 
of USD
98
m related to
 
the repurchase
 
of UBS’s
 
own debt instruments
(compared with losses
 
of USD
60
m in 2021).
 
8 Includes a
 
gain of
 
USD
100
m from the
 
sale of UBS’s
 
domestic wealth
 
management business
 
in Austria.
 
9 Includes
 
a USD
215
m gain on the
 
sale of intellectual
property rights associated with the
 
Bloomberg Commodity Index
 
family.
 
 
 
Note 6
 
Personnel expenses
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Salaries
1
7,045
7,339
7,023
Variable compensation
2
7,954
8,280
7,520
of which: performance awards
3,205
3,190
3,209
3
of which: financial advisors
4
4,508
4,860
4,091
of which: other
241
229
220
Contractors
323
381
375
Social security
944
978
899
3
Post-employment benefit plans
5
794
833
845
of which: defined benefit plans
437
470
502
of which: defined contribution plans
357
363
343
Other personnel expenses
621
576
561
3
Total personnel expenses
17,680
18,387
17,224
1 Includes role-based allowances.
 
2 Refer to Note 27 for
 
more information.
 
3 During 2020,
 
UBS modified the conditions
 
for continued vesting
 
of certain outstanding deferred
 
compensation awards
 
for qualifying
employees, resulting
 
in an
 
expense of approximately
 
USD
280
m, of which
 
USD
240
m is disclosed
 
within Variable
 
compensation
 
– performance
 
awards,
 
USD
20
m within Social
 
security and
 
USD
20
m within Other
personnel expenses.
 
4 Consists of
 
cash and
 
deferred compensation
 
awards and is
 
based on compensable
 
revenues and firm
 
tenure using a
 
formulaic
 
approach. It also
 
includes expenses
 
related to compensation
commitments with financial
 
advisors entered into
 
at the time
 
of recruitment that
 
are subject to
 
vesting requirements.
 
5 Refer to Note
 
26 for more information.
 
Includes curtailment
 
gains of USD
20
m for the year
ended 31 December 2022 (for the year ended 31 December 2021: USD
80
m; for the year ended 31 December 2020: USD
0
m), which represent a reduction in the defined benefit
 
obligation related to the Swiss pension
plan resulting from a decrease
 
in headcount following restructuring
 
activities.
 
 
 
Note 7
 
General and administrative expenses
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Outsourcing costs
896
893
951
Technology costs
1,146
1,055
949
Consulting, legal and audit fees
592
540
646
Real estate and logistics costs
605
634
671
Market data services
419
417
413
Marketing and communication
265
242
217
Travel and entertainment
172
72
84
Litigation, regulatory and similar matters
1
348
911
197
Other
746
788
757
Total general and administrative
 
expenses
5,189
5,553
4,885
1 Reflects the net increase in
 
provisions for litigation, regulatory
 
and similar matters recognized
 
in the income statement.
 
Refer to Note 17 for
 
more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
282
 
 
Note 8
 
Income taxes
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Tax
 
expense / (benefit)
Swiss
Current
730
680
482
Deferred
(15)
34
116
Total Swiss
715
714
598
Non-Swiss
Current
718
884
749
Deferred
509
400
236
Total non-Swiss
1,227
1,284
985
Total income tax expense
 
/ (benefit) recognized in the income statement
1,942
1,998
1,583
Income tax recognized in the income
 
statement
The Swiss current tax expenses related
 
to taxable profits of UBS Switzerland
 
AG and other Swiss entities.
The
 
non-Swiss
 
current
 
tax
 
expenses
 
related
 
to
 
taxable
 
profits
 
of
 
non-Swiss
 
subsidiaries
 
and
 
branches.
 
The
 
non-Swiss
deferred tax
 
expenses
 
include expenses
 
of USD
678
m that
 
primarily related
 
to the
 
amortization
 
of deferred
 
tax assets
(DTAs)
 
previously
 
recognized
 
in
 
relation
 
to
 
tax
 
losses
 
carried
 
forward
 
and
 
deductible
 
temporary
 
differences
 
of
 
UBS
Americas
 
Inc.,
 
which
 
were
 
partly offset
 
by
 
a
 
benefit
 
of
 
USD
169
m
 
in respect
 
of
 
net upward
 
revaluations
 
of
 
DTAs
 
for
certain entities, primarily in connection
 
with our business planning
 
process.
 
The effective tax rate for the year of
20.2
% is lower than our projected
 
rate for the year of
24
%, primarily as a result of
the aforementioned deferred tax benefit of USD
169
m in respect of
 
net upward revaluations of DTAs and because no tax
expenses were recognized in
 
respect of pre-tax gains from dispositions
 
of UBS subsidiaries in 2022.
›
 
Refer to Note 29
 
for more information
 
about disposals
 
of subsidiaries
 
 
 
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Operating profit / (loss) before tax
9,604
9,484
8,155
of which: Swiss
4,425
3,334
3,403
of which: non-Swiss
5,178
6,150
4,752
Income taxes at Swiss tax rate of
18
% for 2022,
18.5
% for 2021 and
19.5
% for 2020
1,729
1,755
1,590
Increase / (decrease) resulting from:
Non-Swiss tax rates differing from Swiss tax rate
284
234
110
Tax effects of losses not recognized
74
124
144
Previously unrecognized tax losses now utilized
(217)
(179)
(212)
Non-taxable and lower-taxed income
(335)
(278)
(394)
Non-deductible expenses and additional taxable income
429
510
385
Adjustments related to prior years, current
 
tax
(41)
(40)
(67)
Adjustments related to prior years, deferred
 
tax
13
(10)
12
Change in deferred tax recognition
(217)
(342)
(381)
Adjustments to deferred tax balances arising from changes in
 
tax rates
0
(5)
234
Other items
222
231
161
Income tax expense / (benefit)
1,942
1,998
1,583
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
283
 
 
Note 8
 
Income taxes (continued)
The components of operating profit
 
before tax, and the
 
differences between income tax
 
expense reflected in the financial
statements and the amounts
 
calculated at the Swiss tax rate, are provided
 
in the table above
 
and explained below.
 
Component
Description
Non-Swiss tax rates
differing from the
Swiss tax rate
To
 
the extent that Group profits
 
or losses arise outside Switzerland, the applicable
 
local tax rate may differ from
 
the Swiss
tax rate. This item reflects,
 
for such profits, an adjustment from
 
the tax expense that would arise at the Swiss tax rate
 
to
the tax expense that would arise at
 
the applicable local tax rate. Similarly,
 
it reflects, for such losses, an adjustment from
the tax benefit that would arise
 
at the Swiss tax rate to the tax benefit that would arise
 
at the applicable local tax rate.
Tax
 
effects of losses
not recognized
This item relates to tax losses
 
of entities arising in the year that are not
 
recognized as DTAs and
 
where no tax benefit arises
in relation to those losses. Therefore,
 
the tax benefit calculated by applying the local tax
 
rate to those losses as described
above is reversed.
Previously
unrecognized tax
 
losses
now utilized
This item relates to taxable
 
profits of the year that are offset by tax
 
losses of previous years for which no
 
DTAs were
previously recorded.
 
Consequently, no current
 
tax or deferred tax expense arises in
 
relation to those taxable profits and
the tax expense calculated by applying
 
the local tax rate on those profits is reversed.
Non-taxable and lower-
taxed income
This item relates to tax deductions
 
for the year in respect of permanent differences.
 
These include deductions in respect
 
of
profits that are either not
 
taxable or are taxable at a lower rate of
 
tax than the local tax rate. They also include deductions
made for tax purposes, which are
 
not reflected in the accounts.
Non-deductible
expenses and
additional taxable
income
This item relates to additional
 
taxable income for the year in respect
 
of permanent differences. These include
 
income that
is recognized for tax purposes
 
by an entity but is not included in its profit
 
that is reported in the financial statements,
 
as
well as expenses for the year that are
 
non-deductible (e.g., client entertainment
 
costs are not deductible in certain
locations).
Adjustments related to
prior years,
 
current tax
This item relates to adjustments
 
to current tax expense for prior years
 
(e.g., if the tax payable for a year is agreed with the
tax authorities in an amount
 
that differs from the amount previously
 
reflected in the financial statements).
Adjustments related to
prior years,
 
deferred
tax
This item relates to adjustments
 
to deferred tax positions recognized
 
in prior years (e.g., if a tax loss for a
 
year is fully
recognized and
 
the amount of the tax loss agreed with the tax
 
authorities is expected to differ
 
from the amount previously
recognized as DTAs
 
in the accounts).
Change in deferred tax
recognition
This item relates to changes
 
in DTAs, including
 
changes in DTAs previously
 
recognized resulting from reassessments
 
of
expected future taxable profits.
 
It also includes changes in temporary differences
 
in the year, for
 
which deferred tax is not
recognized.
Adjustments to
deferred tax balances
arising from changes in
tax rates
This item relates to remeasurements
 
of DTAs and
 
liabilities recognized due to changes in
 
tax rates. These have the effect
of changing the future tax
 
saving that is expected from tax
 
losses or deductible tax differences and
 
therefore the amount
of DTAs recognized
 
or, alternatively,
 
changing the tax cost of additional
 
taxable income from taxable temporary
differences and
 
therefore the deferred tax liability.
Other items
Other items include other differences
 
between profits or losses at the local tax
 
rate and the actual local tax expense or
benefit, including movements
 
in provisions for uncertain positions in
 
relation to the current year and
 
other items.
 
Income tax recognized directly in equity
A net tax benefit of USD
1,116
m was recognized in
Other comprehensive income
 
(2021: net benefit
 
of USD
479
m) and
a net tax benefit of USD
13
m was recognized in
Share premium
(2021: net expense of
 
USD
88
m).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
284
 
 
Note 8
 
Income taxes (continued)
Deferred tax assets and liabilities
The Group has
 
gross DTAs,
 
valuation allowances and recognized
 
DTAs
 
related to tax
 
loss carry-forwards and
 
deductible
temporary differences, as well as deferred tax liabilities in respect of taxable temporary differences, as shown in the table
below.
 
The valuation
 
allowances reflect
 
DTAs
 
that were
 
not recognized
 
because, as
 
of the last
 
remeasurement
 
period,
management
 
did
 
not
 
consider it
 
probable
 
that
 
there
 
would
 
be sufficient
 
future
 
taxable
 
profits
 
available to
 
utilize
 
the
related tax loss carry-forwards
 
and deductible temporary differences
 
.
The recognition of DTAs
 
is supported by
 
forecasts of taxable profits
 
for the entities
 
concerned. In
 
addition, tax planning
opportunities are available that would result in additional future taxable
 
income and these would be utilized, if
 
necessary.
Deferred tax liabilities
 
are recognized
 
in respect of
 
investments in subsidiaries,
 
branches
 
and associates, and
 
interests in
joint arrangements,
 
except to the
 
extent that the
 
Group can control
 
the timing of the
 
reversal of the
 
associated taxable
temporary difference and it is probable
 
that such will not reverse in the foreseeable
 
future. However, as of 31 December
2022, this exception was not
 
considered to apply to any
 
taxable temporary differences.
 
USD m
31.12.22
31.12.21
Deferred tax assets
1
Gross
Valuation
allowance
Recognized
Gross
Valuation
allowance
Recognized
Tax loss carry-forwards
12,708
(8,720)
3,988
13,636
(9,193)
4,443
Temporary differences
5,814
(414)
5,400
5,133
(700)
4,433
of which: related to real estate costs capitalized for US tax
purposes
2,485
0
2,485
2,272
0
2,272
of which: related to compensation and benefits
1,194
(175)
1,018
1,222
(209)
1,013
of which: related to cash flow hedges
947
0
947
3
0
3
of which: other
1,188
(238)
950
1,636
(491)
1,145
Total deferred tax
 
assets
18,522
(9,134)
9,389
2
18,769
(9,893)
8,876
2
of which: related to the US
8,294
8,521
of which: related to other locations
1,095
355
Deferred tax liabilities
Cash flow hedges
0
118
Other
236
183
Total deferred tax liabilities
236
300
1 After offset of DTLs, as applicable.
 
2 As of 31 December 2022, the
 
Group recognized DTAs
 
of USD
471
m (31 December 2021: USD
77
m) in respect of entities that incurred
 
losses in either the current or preceding
year.
 
In general, US federal tax losses incurred
 
prior to 31 December 2017
 
can be carried forward
 
for 20 years. US federal tax
losses incurred after that date
 
can be carried forward indefinitely, although the utilization of such losses is limited
 
to 80%
of the
 
entity’s future
 
year taxable
 
profits. UK
 
tax losses
 
can also
 
be carried
 
forward indefinitely;
 
they can
 
shelter up
 
to
either 25%
 
or 50% of future
 
year taxable profits,
 
depending on when
 
the tax losses arose.
 
The amounts of
 
US tax loss
carry-forwards that
 
are included
 
in the table
 
below are
 
based on
 
their amount
 
for federal tax
 
purposes rather
 
than for
state and local tax purposes.
 
Unrecognized tax loss carry-forwards
USD m
31.12.22
31.12.21
Within 1 year
231
141
From 2 to 5 years
2,184
1,026
From 6 to 10 years
11,106
13,283
From 11 to 20 years
1,610
2,093
No expiry
16,960
18,147
Total
32,091
34,690
of which: related to the US
1
13,350
14,870
of which: related to the UK
14,332
14,909
of which: related to other locations
4,409
4,911
1 Related to UBS AG’s
 
US branch.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
285
 
Balance sheet notes
Note 9
 
Financial assets at amortized
 
cost and other positions in scope of expected
 
credit loss measurement
The tables
 
below
 
provide
 
information about
 
financial instruments
 
and
 
certain credit
 
lines that
 
are subject
 
to expected
credit loss
 
(ECL) requirements
 
.
 
UBS’s ECL
 
disclosure
 
segments,
 
or “ECL
 
segments”
 
are aggregated
 
portfolios based
 
on
shared
 
risk characteristics
 
and
 
on
 
the same
 
or similar
 
rating
 
methods
 
applied.
 
The key
 
segments are
 
presented
 
in the
table below.
›
 
Refer to Note 19
 
for more information
 
about expected
 
credit loss measurement
 
Segment
Segment description
Description of credit risk sensitivity
Business division
 
Private clients with
mortgages
Lending to private clients secured
 
by
owner-occupied real estate
 
and
personal account overdrafts
 
of those
clients
Sensitive to the interest rate
 
environment,
unemployment levels, real estate
 
collateral
values and other regional
 
aspects
 
–
 
Personal & Corporate Banking
–
 
Global Wealth Management
Real estate financing
Rental or income-producing
 
real estate
financing to private and corporate
clients secured by real
 
estate
Sensitive to unemployment
 
levels, the
interest rate environment,
 
real estate
collateral values and other regional
aspects
 
–
 
Personal & Corporate Banking
–
 
Global Wealth Management
–
 
Investment Bank
Large corporate clients
Lending to large corporate and multi-
national clients
Sensitive to GDP developments,
unemployment levels, seasonalit
 
y,
business cycles and collateral
 
values
(diverse collateral,
 
including real estate
and other collateral types)
–
 
Personal & Corporate Banking
–
 
Investment Bank
SME clients
Lending to small and medium
 
-sized
corporate clients
Sensitive to GDP developments,
unemployment levels, the interest
 
rate
environment and,
 
to some extent,
seasonality,
 
business cycles and collateral
values (diverse collateral,
 
including real
estate and other collateral types)
–
 
Personal & Corporate Banking
Lombard
Loans secured by pledges
 
of marketable
securities, guarantees and
 
other forms
of collateral (including concentration
 
in
hedge funds, private equity and unlisted
equities), as well as unsecured
 
recourse
lending
Sensitive to equity and debt market
 
s
 
(e.g.,
changes in collateral values)
–
 
Global Wealth Management
Credit cards
Credit card solutions in
 
Switzerland and
the US
Sensitive to unemployment levels
–
 
Personal & Corporate Banking
–
 
Global Wealth Management
Commodity trade
finance
Working capital financing of
 
commodity
traders, generally extended on a
 
self-
liquidating transactional basis
Sensitive primarily to
 
the strength of
individual transaction structures
 
and
collateral values (price volatility
 
of
commodities),
 
as the primary source for
debt service is directly linked
 
to the
shipments financed
–
 
Personal & Corporate Banking
Financial intermediaries
and hedge funds
Lending to financial institutions
 
and
pension funds, including exposures
 
to
broker-dealers and clearing houses
Sensitive to GDP development, the
interest rate environment, price
 
and
volatility risks in financial markets,
 
and
regulatory and political
 
risk
–
 
Personal & Corporate Banking
–
 
Investment Bank
›
 
Refer to Note 19f
 
for more details
 
regarding sensitivity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
286
 
 
Note 9
 
Financial assets at amortized
 
cost and other positions in scope of expected
 
credit loss measurement
(continued)
The tables
 
below
 
provide
 
ECL exposure
 
and ECL
 
allowance and
 
provision
 
information
 
about financial
 
instruments and
certain non-financial instruments that are
 
subject to ECLs.
 
USD m
31.12.22
Carrying amount
1
ECL allowances
Financial instruments measured at
 
amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
169,445
169,402
44
0
(12)
0
(12)
0
Loans and advances to banks
14,792
14,792
1
0
(6)
(5)
(1)
0
Receivables from securities financing transactions
 
measured at amortized cost
67,814
67,814
0
0
(2)
(2)
0
0
Cash collateral receivables on derivative
 
instruments
35,032
35,032
0
0
0
0
0
0
Loans and advances to customers
387,220
370,095
15,587
1,538
(783)
(129)
(180)
(474)
of which: Private clients with mortgages
156,930
147,651
8,579
699
(161)
(27)
(107)
(28)
of which: Real estate financing
46,470
43,112
3,349
9
(41)
(17)
(23)
0
of which: Large corporate clients
12,226
10,733
1,189
303
(130)
(24)
(14)
(92)
of which: SME clients
13,903
12,211
1,342
351
(251)
(26)
(22)
(203)
of which: Lombard
132,287
132,196
0
91
(26)
(9)
0
(17)
of which: Credit cards
1,834
1,420
382
31
(36)
(7)
(10)
(19)
of which: Commodity trade finance
3,272
3,261
0
11
(96)
(6)
0
(90)
Other financial assets measured at amortized cost
53,264
52,704
413
147
(86)
(17)
(6)
(63)
of which: Loans to financial advisors
2,611
2,357
128
126
(59)
(7)
(2)
(51)
Total financial assets
 
measured at amortized cost
727,568
709,839
16,044
1,685
(889)
(154)
(199)
(537)
Financial assets measured at
 
fair value through other comprehensive
 
income
2,239
2,239
0
0
0
0
0
0
Total on-balance
 
sheet financial assets within the scope of
 
ECL requirements
729,807
712,078
16,044
1,685
(889)
(154)
(199)
(537)
Total exposure
ECL provisions
Off-balance sheet (within the scope
 
of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Guarantees
22,167
19,805
2,254
108
(48)
(13)
(9)
(26)
of which: Large corporate clients
3,663
2,883
721
58
(26)
(2)
(3)
(21)
of which: SME clients
1,337
1,124
164
49
(5)
(1)
(1)
(3)
of which: Financial intermediaries and hedge funds
 
11,833
10,513
1,320
0
(12)
(8)
(4)
0
of which: Lombard
2,376
2,376
0
1
(1)
0
0
(1)
of which: Commodity trade finance
2,121
2,121
0
0
(1)
(1)
0
0
Irrevocable loan commitments
39,996
37,531
2,341
124
(111)
(59)
(52)
0
of which: Large corporate clients
23,611
21,488
2,024
99
(93)
(49)
(45)
0
Forward starting reverse repurchase
 
and securities borrowing agreements
3,801
3,801
0
0
0
0
0
0
Committed unconditionally revocable credit lines
41,390
39,521
1,833
36
(40)
(32)
(8)
0
of which: Real estate financing
8,711
8,528
183
0
(6)
(6)
0
0
of which: Large corporate clients
4,578
4,304
268
5
(4)
(1)
(2)
0
of which: SME clients
4,723
4,442
256
26
(19)
(16)
(3)
0
of which: Lombard
7,855
7,854
0
1
0
0
0
0
of which: Credit cards
9,390
8,900
487
3
(7)
(5)
(2)
0
of which: Commodity trade finance
327
327
0
0
0
0
0
0
Irrevocable committed prolongation of existing loans
4,696
4,600
94
2
(2)
(2)
0
0
Total off-balance sheet
 
financial instruments and credit lines
112,050
105,258
6,522
270
(201)
(106)
(69)
(26)
Total allowances and
 
provisions
(1,091)
(259)
(267)
(564)
1 The carrying amount
 
of financial assets measured
 
at amortized cost represents
 
the total gross exposure
 
net of the respective ECL
 
allowances.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
287
 
 
Note 9
 
Financial assets at amortized
 
cost and other positions in scope of expected
 
credit loss measurement
(continued)
USD m
31.12.21
Carrying amount
1
ECL allowances
Financial instruments measured at
 
amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
192,817
192,817
0
0
0
0
0
0
Loans and advances to banks
15,480
15,453
26
1
(8)
(7)
(1)
0
Receivables from securities financing transactions
 
measured at amortized cost
75,012
75,012
0
0
(2)
(2)
0
0
Cash collateral receivables on derivative
 
instruments
30,514
30,514
0
0
0
0
0
0
Loans and advances to customers
397,761
380,564
15,620
1,577
(850)
(126)
(152)
(572)
of which: Private clients with mortgages
152,479
143,505
8,262
711
(132)
(28)
(71)
(33)
of which: Real estate financing
43,945
40,463
3,472
9
(60)
(19)
(40)
0
of which: Large corporate clients
13,990
12,643
1,037
310
(170)
(22)
(16)
(133)
of which: SME clients
14,004
12,076
1,492
436
(259)
(19)
(15)
(225)
of which: Lombard
149,283
149,255
0
27
(33)
(6)
0
(28)
of which: Credit cards
1,716
1,345
342
29
(36)
(10)
(9)
(17)
of which: Commodity trade finance
3,813
3,799
7
7
(114)
(6)
0
(108)
Other financial assets measured at amortized cost
26,209
25,718
302
189
(109)
(27)
(7)
(76)
of which: Loans to financial advisors
2,453
2,184
106
163
(86)
(19)
(3)
(63)
Total financial assets
 
measured at amortized cost
737,794
720,079
15,948
1,767
(969)
(161)
(160)
(647)
Financial assets measured at
 
fair value through other comprehensive
 
income
8,844
8,844
0
0
0
0
0
0
Total on-balance
 
sheet financial assets within the scope of
 
ECL requirements
746,638
728,923
15,948
1,767
(969)
(161)
(160)
(647)
Total exposure
ECL provisions
Off-balance sheet (within the scope
 
of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Guarantees
20,972
19,695
1,127
150
(41)
(18)
(8)
(15)
of which: Large corporate clients
3,464
2,567
793
104
(6)
(3)
(3)
0
of which: SME clients
1,353
1,143
164
46
(8)
(1)
(1)
(7)
of which: Financial intermediaries and hedge funds
 
9,575
9,491
84
0
(17)
(13)
(4)
0
of which: Lombard
2,454
2,454
0
0
(1)
0
0
(1)
of which: Commodity trade finance
3,137
3,137
0
0
(1)
(1)
0
0
Irrevocable loan commitments
39,478
37,097
2,335
46
(114)
(72)
(42)
0
of which: Large corporate clients
23,922
21,811
2,102
9
(100)
(66)
(34)
0
Forward starting reverse repurchase
 
and securities borrowing agreements
1,444
1,444
0
0
0
0
0
0
Committed unconditionally revocable credit lines
40,778
38,207
2,508
63
(38)
(28)
(10)
0
of which: Real estate financing
7,328
7,046
281
0
(5)
(4)
(1)
0
of which: Large corporate clients
5,358
4,599
736
23
(7)
(4)
(3)
0
of which: SME clients
5,160
4,736
389
35
(15)
(11)
(3)
0
of which: Lombard
8,670
8,670
0
0
0
0
0
0
of which: Credit cards
9,466
9,000
462
4
(6)
(5)
(2)
0
of which: Commodity trade finance
117
117
0
0
0
0
0
0
Irrevocable committed prolongation of existing loans
5,611
5,527
36
48
(3)
(3)
0
0
Total off-balance sheet
 
financial instruments and credit lines
108,284
101,971
6,006
307
(196)
(121)
(60)
(15)
Total allowances and
 
provisions
(1,165)
(282)
(220)
(662)
1 The carrying amount
 
of financial assets measured
 
at amortized cost represents
 
the total gross exposure
 
net of the respective ECL
 
allowances.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
288
 
 
Note 9
 
Financial assets at amortized
 
cost and other positions in scope of expected
 
credit loss measurement
(continued)
Coverage ratios are
 
calculated for the
 
core loan
 
portfolio by taking
 
ECL allowances
 
and provisions
 
divided by
 
the gross
carrying amount
 
of the
 
exposures.
 
Core loan
 
exposure is
 
defined as
 
the sum
 
of
Loans and
 
advances to
 
customers
 
and
Loans to financial advisors
.
 
These ratios are influenced by the following
 
key factors:
 
–
 
Lombard loans are generally secured with marketable securities in
 
portfolios that are, as a rule, highly diversified,
 
with
strict lending policies that are intended
 
to ensure that credit risk is minimal
 
under most circumstances;
 
–
 
mortgage loans
 
to private
 
clients and real
 
estate financing
 
are controlled
 
by conservative
 
eligibility criteria,
 
including
low loan-to-value ratios
 
and strong debt service capabilit
 
ies;
–
 
the amount of unsecured
 
retail lending (including credit cards) is insignificant;
 
–
 
lending in Switzerland includes government
 
-backed COVID-19 loans;
–
 
contractual
 
maturities
 
in
 
the
 
loan
 
portfolio, which
 
are
 
a
 
factor in
 
the
 
calculation of
 
ECLs,
 
are generally
 
short,
 
with
Lombard
 
lending
 
typically having
 
average
 
contractual
 
maturities
 
of 12
 
months
 
or less,
 
real estate
 
lending
 
generally
between
 
two and
 
three years
 
in Switzerland
 
,
 
with long
 
dated maturities
 
in the
 
US,
 
and
 
corporate lending
 
between
one and two years with related loan
 
commitments up to four
 
years; and
 
–
 
write-offs of
 
ECL allowances against
 
the gross loan
 
balances when all
 
or part of
 
a financial
 
asset is deemed
 
uncollectible
or forgiven, reduces the coverage ratios.
 
The total
 
combined
 
on-
 
and
 
off-balance sheet
 
coverage ratio
 
was at
21
 
basis points
 
as of
 
31 December 2022,
1
 
basis
point lower than on 31 December 2021. The combined stage 1 and 2 ratio of
10
 
basis points was unchanged compared
with 31 December 2021;
 
the stage 3 ratio was 22%,
2
 
percentage points lower than
 
as of 31 December 2021.
 
 
 
31.12.22
Gross carrying amount (USD
 
m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
157,091
147,678
8,686
727
10
2
123
9
381
Real estate financing
46,511
43,129
3,372
9
9
4
70
9
232
Total real estate lending
203,602
190,807
12,059
736
10
2
108
9
379
Large corporate clients
12,356
10,757
1,204
395
105
22
120
32
2,325
SME clients
14,154
12,237
1,364
553
177
22
161
36
3,664
Total corporate lending
26,510
22,994
2,567
949
144
22
142
34
3,106
Lombard
132,313
132,205
0
108
2
1
0
1
1,580
Credit cards
1,869
1,427
393
50
190
46
256
91
3,779
Commodity trade finance
3,367
3,266
0
101
285
18
0
18
8,901
Other loans and advances to customers
20,342
19,525
748
68
21
7
38
8
3,769
Loans to financial advisors
2,670
2,364
130
176
221
28
124
33
2,870
Total other lending
160,561
158,787
1,270
503
16
3
114
4
4,016
Total
1
390,672
372,588
15,896
2,188
22
4
114
8
2,398
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
6,535
6,296
236
3
5
4
18
4
1,183
Real estate financing
10,054
9,779
275
0
6
7
0
6
0
Total real estate lending
16,589
16,075
511
3
6
6
2
6
1,288
Large corporate clients
32,126
28,950
3,013
163
38
18
165
32
1,263
SME clients
7,122
6,525
499
98
47
30
214
43
304
Total corporate lending
39,247
35,475
3,513
260
40
20
172
34
903
Lombard
12,919
12,918
0
1
2
1
0
1
0
Credit cards
9,390
8,900
487
3
7
5
36
7
0
Commodity trade finance
2,459
2,459
0
0
3
3
0
3
0
Financial intermediaries and hedge funds
15,841
14,177
1,664
0
9
7
25
9
0
Other off-balance sheet commitments
11,803
11,454
346
3
11
8
68
9
0
Total other lending
52,412
49,907
2,498
7
7
5
33
6
0
Total
2
108,249
101,457
6,522
270
19
10
106
16
980
Total on-
 
and off-balance sheet
3
498,921
474,045
22,418
2,458
21
5
112
10
2,242
1 Includes Loans and advances
 
to customers and Loans to
 
financial advisors which
 
are presented on the
 
balance sheet line Other
 
assets measured at amortized
 
cost.
 
2 Excludes Forward
 
starting reverse repurchase
and securities borrowing agreements.
 
3
Includes on-balance-sheet
 
exposure, gross and
 
off-balance-sheet exposure
 
(notional) and the related
 
ECL coverage ratio.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
289
 
 
Note 9
 
Financial assets at amortized
 
cost and other positions in scope of expected
 
credit loss measurement
(continued)
31.12.21
Gross carrying amount (USD
 
m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
152,610
143,533
8,333
744
9
2
85
6
446
Real estate financing
44,004
40,483
3,512
10
14
5
114
14
231
Total real estate lending
196,615
184,016
11,845
754
10
3
94
8
443
Large corporate clients
14,161
12,665
1,053
443
120
18
148
28
2,997
SME clients
14,263
12,095
1,507
661
182
16
103
25
3,402
Total corporate lending
28,424
24,760
2,560
1,104
151
17
121
26
3,240
Lombard
149,316
149,261
0
55
2
0
0
0
5,026
Credit cards
1,752
1,355
351
46
204
72
255
109
3,735
Commodity trade finance
3,927
3,805
7
115
290
15
3
15
9,388
Other loans and advances to customers
18,578
17,493
1,010
75
25
9
15
10
3,730
Loans to financial advisors
2,539
2,203
109
226
338
88
303
99
2,791
Total other lending
176,111
174,117
1,477
517
18
3
93
4
4,718
Total
1
401,150
382,893
15,882
2,374
23
4
98
8
2,673
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
9,123
8,798
276
49
3
3
9
3
15
Real estate financing
8,766
8,481
285
0
9
7
88
9
0
Total real estate lending
17,889
17,278
562
49
6
5
49
6
15
Large corporate clients
32,748
28,981
3,630
136
34
25
110
35
1
SME clients
8,077
7,276
688
114
38
19
151
30
585
Total corporate lending
40,826
36,258
4,318
250
35
24
117
34
266
Lombard
14,438
14,438
0
0
1
0
0
0
0
Credit cards
9,466
9,000
462
4
7
5
34
7
0
Commodity trade finance
3,262
3,262
0
0
4
4
0
4
0
Financial intermediaries and hedge funds
12,153
11,784
369
0
15
12
120
15
0
Other off-balance sheet commitments
8,806
8,507
296
4
15
6
30
7
0
Total other lending
48,126
46,991
1,127
8
9
5
61
7
0
Total
2
106,840
100,527
6,006
307
18
12
100
17
486
Total on-
 
and off-balance sheet
3
507,990
483,420
21,888
2,681
22
6
99
10
2,423
1 Includes Loans
 
and advances to
 
customers and Loans
 
to financial
 
advisors which are
 
presented on the
 
balance sheet line
 
Other assets measured
 
at amortized
 
cost.
 
2 Excludes Forward
 
starting reverse
 
repurchase
and securities borrowing agreements.
 
3 Includes on-balance-sheet
 
exposure, gross and
 
off-balance-sheet exposure
 
(notional) and the related
 
ECL coverage ratio.
 
 
 
Note 10
 
Derivative instruments
Overview
Over-the-counter (OTC) derivative contracts are
 
usually traded under
 
a standardized International Swaps and
 
Derivatives
Association (ISDA)
 
master agreement or
 
other recognized
 
local industry-standard
 
master agreements between
 
UBS and
its counterparties. Terms are negotiat
 
ed directly with counterparties and the contracts have industry-standard settlement
mechanisms prescribed by ISDA or similar
 
industry-standard solutions. Other OTC derivatives are cleared through clearing
houses, in particular interest rate swaps with LCH, where a settled-to-market method has been generally adopted, under
which
 
cash
 
collateral
 
exchanged
 
on
 
a
 
daily
 
basis
 
is
 
considered
 
to
 
legally
 
settle
 
the
 
market
 
value
 
of
 
the
 
derivatives.
Regulators
 
in
 
various
 
jurisdictions
 
have
 
introduced
 
rules
 
requiring
 
the
 
payment
 
and
 
collection
 
of
 
initial
 
and
 
variation
margins on certain OTC derivative contracts,
 
which may have a bearing on
 
price and other relevant terms
 
.
Exchange-traded derivatives (ETD) are
 
standardized in terms of their amounts
 
and settlement dates, and are
 
bought and
sold
 
on
 
regulated
 
exchanges.
 
Exchanges
 
offer
 
the
 
benefits
 
of
 
pricing
 
transparency,
 
standardized
 
daily
 
settlement
 
of
changes in value and,
 
consequently, reduced credit risk.
Most
 
of
 
the
 
Group’s
 
derivative
 
transactions
 
relate
 
to
 
sales
 
and
 
market-making
 
activity.
 
Sales
 
activities
 
include
 
the
structuring and marketing of derivative products to customers to enable
 
them to take, transfer, modify or reduce current
or expected
 
risks. Market-
 
making aims
 
to directly
 
support
 
the facilitation
 
and
 
execution
 
of client
 
activity,
 
and
 
involves
quoting
 
bid
 
and
 
offer
 
prices to
 
other
 
market
 
participants
 
with
 
the
 
aim
 
of
 
generating
 
revenues
 
based
 
on
 
spread
 
and
volume. The Group also
 
uses various derivative instruments for hedging
 
purposes.
›
 
Refer to Notes 15
 
and 20
 
for more information
 
about derivative
 
instruments
›
 
Refer to Note 25
 
for more information
 
about derivatives
 
designated in
 
hedge accounting
 
relationships
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
290
 
 
Note 10
 
Derivative instruments (continued)
Risks of derivative
 
instruments
The
 
derivative
 
financial
 
assets
 
shown
 
on
 
the
 
balance
 
sheet
 
can
 
be
 
an
 
important
 
component
 
of
 
the
 
Group’s
 
credit
exposure; however, the positive replacement values related to
 
a respective counterparty are rarely an adequate reflection
of the
 
Group’s credit
 
exposure in
 
its derivatives
 
business
 
with that
 
counterparty. This
 
is generally
 
the case
 
because,
 
on
the one hand, replacement values can increase over time (potential future exposure), while, on the other hand,
 
exposure
may be mitigated
 
by entering
 
into master
 
netting agreements
 
and bilateral
 
collateral
 
arrangements. Both
 
the exposure
measures used
 
internally by
 
the Group
 
to control
 
credit risk and
 
the capital requirements
 
imposed by
 
regulators reflect
these additional factors.
›
 
Refer to Note 21
 
for more information
 
about derivative
 
financial assets
 
and liabilities
 
after consideration
 
of netting potential
permitted under
 
enforceable netting
 
arrangements
›
 
Refer to the “Risk
 
management and
 
control” section of
 
this report for more information
 
about the risks
 
arising from derivative
instruments
 
Derivative instruments
 
31.12.22
31.12.21
USD bn
Derivative
financial
assets
Notional
amounts
related to
derivative
financial
assets
2,3
Derivative
financial
liabilities
Notional
amounts
related to
derivative
financial
liabilities
2,3
Other
notional
amounts
2,4
Derivative
financial
assets
Notional
amounts
related to
derivative
financial
assets
2,3
Derivative
financial
liabilities
Notional
amounts
related to
derivative
financial
liabilities
2,3
Other
notional
amounts
2,4
Interest rate contracts
39.8
1,057.4
37.5
1,022.9
11,255.4
33.2
991.2
28.7
943.1
8,675.1
of which: forwards (OTC)
1
0.2
37.7
0.0
34.6
792.7
0.1
29.4
0.2
28.6
443.6
of which: swaps (OTC)
25.2
326.1
19.8
281.0
9,728.6
26.4
394.3
19.2
344.1
7,549.4
of which: options (OTC)
14.2
687.5
17.5
705.0
6.6
545.2
9.2
553.6
of which: futures (ETD)
606.3
525.0
of which: options (ETD)
0.0
6.1
0.0
2.2
127.7
0.0
22.4
0.0
16.8
157.1
Credit derivative contracts
1.0
36.8
1.2
37.1
1.4
44.7
1.8
46.3
of which: credit default swaps (OTC)
0.9
34.2
1.0
36.8
1.3
39.4
1.6
44.1
of which: total return swaps (OTC)
0.1
0.9
0.2
0.3
0.1
1.3
0.2
1.7
Foreign exchange contracts
85.5
3,087.1
88.5
2,992.7
40.1
53.3
3,030.8
54.1
2,938.8
1.2
of which: forwards (OTC)
26.5
853.4
28.6
910.2
23.8
1,008.9
23.8
1,043.2
of which: swaps (OTC)
49.6
1,679.3
50.4
1,553.7
38.4
24.3
1,606.3
24.9
1,480.3
of which: options (OTC)
9.3
551.6
9.2
521.6
5.2
412.6
5.3
408.6
Equity contracts
22.2
384.5
26.1
501.3
63.4
28.2
456.9
34.9
603.9
80.1
of which: swaps (OTC)
5.3
95.5
6.6
122.0
4.7
105.7
9.3
154.8
of which: options (OTC)
2.8
51.6
4.4
89.0
4.6
61.4
6.5
102.3
of which: futures (ETD)
52.2
71.2
of which: options (ETD)
9.0
237.0
8.1
289.7
11.2
10.2
289.6
9.8
346.3
8.8
of which: client-cleared transactions (ETD)
5.1
7.0
8.6
9.4
Commodity contracts
1.4
68.1
1.4
64.2
17.6
1.6
57.8
1.6
56.4
14.7
of which: swaps (OTC)
0.5
19.3
0.7
19.3
0.5
19.9
0.8
25.4
of which: options (OTC)
0.4
15.8
0.3
13.3
0.4
14.0
0.2
10.4
of which: futures (ETD)
16.4
13.9
of which: forwards
 
(ETD)
0.0
24.5
0.0
23.2
0.0
18.1
0.0
15.2
of which: client-cleared transactions (ETD)
0.2
0.3
0.6
0.4
Loan commitments
 
measured at FVTPL (OTC)
0.0
0.9
0.0
3.7
0.0
0.8
0.0
8.2
Unsettled purchases of non-derivative
financial instruments
5
0.1
12.1
0.1
9.4
0.1
13.3
0.2
10.6
Unsettled sales of non-derivative
 
financial
instruments
5
0.1
13.0
0.0
10.7
0.2
18.2
0.1
9.4
Total derivative instruments,
 
based on IFRS netting
6
150.1
4,659.9
154.9
4,641.9
11,376.5
118.1
4,613.8
121.3
4,616.6
8,771.1
1 Includes certain forward starting repurchase and reverse
 
repurchase agreements that are classified as
 
measured at fair value through profit or loss and are recognized within
 
derivative instruments.
 
2 In cases where
derivative financial
 
instruments
 
are presented
 
on a net
 
basis on
 
the balance
 
sheet, the
 
respective
 
notional amounts
 
of the netted
 
derivative financial
 
instruments
 
are still
 
presented on
 
a gross
 
basis.
 
3 Notional
amounts of client-cleared
 
ETD and OTC
 
transactions through
 
central clearing
 
counterparties are
 
not disclosed, as they
 
have significantly
 
different risk profile.
 
4 Other notional
 
amounts relate to
 
derivatives that
 
are
cleared through either a central
 
counterparty or an exchange.
 
The fair value
 
of these derivatives is presented
 
on the balance sheet
 
net of the corresponding
 
cash margin under Cash
 
collateral receivables
 
on derivative
instruments and Cash
 
collateral payables
 
on derivative
 
instruments and
 
was not
 
material for
 
any of the
 
periods presented.
 
5 Changes in
 
the fair
 
value of
 
purchased and
 
sold non-derivative
 
financial instruments
between trade date and settlement
 
date are recognized as derivative
 
financial instruments.
 
6 Derivative financial
 
assets and liabilities are presented
 
net on the balance sheet if UBS
 
has the unconditional and legally
enforceable right to offset the rec
 
ognized amounts, both in
 
the normal course of business and
 
in the event of default, bankruptcy
 
or insolvency of the entity
 
and all of the counterparties,
 
and intends either to settle
 
on
a net basis or to realize the asset
 
and settle the liability simultaneously.
 
Refer to Note 21 for
 
more information on netting
 
arrangements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
291
 
 
Note 10
 
Derivative instruments (continued)
On
 
a
 
notional
 
amount
 
basis,
 
approximately
46
%
 
of
 
OTC
 
interest
 
rate
 
contracts
 
held
 
as
 
of
 
31 December
 
2022
(31 December 2021:
40
%) mature within
 
one year,
32
% (31 December 2021:
36
%) within one
 
to five years and
22
%
31 December 2021:
25
%) after five years.
 
Notional amounts of interest rate contracts cleared
 
through either a central counterparty or an exchange
 
that are legally
settled or economically
 
net settled
 
on a
 
daily basis are
 
presented under
Other notional amounts
 
in the table
 
above and
are categorized into maturity buckets
 
on the basis of contractual
 
maturities of the cleared underlying
 
derivative contracts.
Other notional
 
amounts
 
related to
 
interest rate
 
contracts increased
 
by USD
2.6
trn compared
 
with 31 December
 
2021,
mainly
 
reflecting
 
higher
 
business
 
volumes
 
driven
 
by
 
elevated
 
interest
 
rate
 
volatility
 
and
 
inflation,
 
partly
 
offset
 
by
compression activity.
 
 
 
Note 11
 
Property, equipment and software
 
At historical cost less accumulated depreciation
USD m
Owned
properties and
equipment
1
Leased
properties and
equipment
2
Software
Projects in
progress
2022
3
2021
3
Historical cost
Balance at the beginning of the year
13,048
4,174
8,642
1,250
27,113
26,238
Additions
162
412
300
1,182
2,057
2,090
Disposals / write-offs
4
(333)
(62)
(106)
0
(501)
(751)
Reclassifications
(1,073)
0
1,151
(1,301)
(1,223)
(18)
Foreign currency translation
(217)
(65)
(42)
5
(319)
(445)
Balance at the end of the year
11,587
4,459
9,944
1,136
27,127
27,113
Accumulated depreciation
Balance at the beginning of the year
8,072
1,346
4,807
14,225
13,129
Depreciation
577
451
1,005
2,033
2,078
Impairment
5
3
0
0
3
10
Disposals / write-offs
4
(332)
(59)
(106)
(497)
(737)
Reclassifications
(761)
(1)
0
(761)
(12)
Foreign currency translation
(135)
(24)
(6)
(164)
(243)
Balance at the end of the year
7,425
1,714
5,699
14,839
14,225
Net book value
 
Net book value at the beginning of the year
4,976
2,828
3,835
1,250
12,888
13,109
Net book value at the end of the
 
year
4,162
2,746
4,245
1,136
6
12,288
12,888
1 Includes leasehold
 
improvements and
 
IT hardware.
 
2 Represents
 
right-of-use assets
 
recognized by
 
UBS as lessee.
 
UBS predominantly
 
enters into
 
lease contracts,
 
or contracts
 
that include
 
lease components,
 
in
relation to real estate, including offices,
 
retail branches and sales offices. The
 
total cash outflow for leases during 2022 was
 
USD
614
m (2021: USD
657
m). Interest expense on lease liabilities is included within Interest
expense from financial
 
instruments measured
 
at amortized
 
cost and Lease
 
liabilities are
 
included within Other
 
financial liabi
 
lities measured at
 
amortized cost.
 
Refer to Notes
 
3 and 18a,
 
respectively.
 
There were
 
no
material gains or losses arising
 
from sale-and-leaseback
 
transactions in 2022
 
and in 2021.
 
3 The total reclassification
 
amount for the respective
 
periods represents
 
net reclassifications to
 
Properties and other
 
non-
current assets held for
 
sale.
 
4 Includes write-offs
 
of fully depreciated assets.
 
5 Impairment charges recorded
 
in 2022 generally relate
 
to assets that are no longer
 
used,
 
for which the recoverable
 
amount based on
a value in use approach was
 
determined to be zero.
 
6 Consists of USD
939
m related to software
 
and USD
197
m related to Owned properties
 
and equipment.
 
 
 
Note 12
 
Goodwill and intangible assets
Introduction
UBS performs an impairment test on
 
its goodwill assets on an
 
annual basis or when indicators of impairment exist.
 
UBS considers Asset Management
 
,
 
as it is reported in Note 2a,
 
as a separate cash-generating unit (a
 
CGU),
 
as that is the
level at which the performance
 
of investment (and the related goodwill) is reviewed and assessed by management.
 
Given
that a
 
significant
 
amount
 
of goodwill
 
in Global
 
Wealth
 
Management
 
relates
 
to the
 
PaineWebber
 
acquisition
 
in 2000,
which mainly affected the Americas portion of
 
the business, this goodwill remains separately monitored by
 
the Americas,
despite the
 
formation
 
of Global
 
Wealth Management
 
in 2018.
 
Therefore,
 
goodwill for
 
Global Wealth
 
Management
 
is
separately considered for
 
impairment at the level
 
of two CGUs:
 
Americas; and
 
Switzerland and
 
International (consisting
of EMEA, Asia Pacific and Global).
The impairment
 
test is
 
performed
 
for each
 
CGU to
 
which goodwill
 
is allocated
 
by comparing
 
the recoverable
 
amount
with the carrying amount of the respective
 
CGU. UBS determines the recoverable
 
amount
 
of the respective CGUs based
on their value in use. An
 
impairment charge is recognized if the carrying
 
amount exceeds the recoverable amount.
As
 
of
 
31 December
 
2022,
 
total goodwill
 
recognized
 
on
 
the
 
balance
 
sheet
 
was
 
USD
6.0
bn,
 
of
 
which
 
USD
3.7
bn
 
was
carried by the
 
Global Wealth
 
Management Americas
 
CGU, USD
1.2
bn was
 
carried by the
 
Global Wealth
 
Management
Switzerland and International CGU, and USD
1.2
bn was carried by Asset Management. Based on the impairment testing
methodology
 
described below,
 
UBS
 
concluded that
 
the goodwill
 
balances as
 
of 31
 
December 202
 
2
 
allocated to
 
these
CGUs were not impaired.
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
292
 
 
Note 12
 
Goodwill and intangible assets (continued)
Methodology for goodwill impairment
 
testing
The recoverable
 
amounts
 
are determined
 
using
 
a discounted
 
cash flow
 
model, which
 
has been
 
adapted to
 
use inputs
that consider features
 
of the banking business
 
and its regulatory environment.
 
The recoverable
 
amount of a CGU
 
is the
sum of the
 
discounted
 
earnings attributable
 
to shareholders
 
from the
 
first three
 
forecast
 
years and
 
the terminal
 
value,
adjusted for the effect of the capital
 
assumed to be needed over the next three years and to support growth beyond that
period. The
 
terminal value,
 
which covers
 
all periods
 
beyond the
 
third year,
 
is calculated
 
on the
 
basis of
 
the forecast
 
of
the third-year profit, the
 
discount rate and the long
 
-term growth rate, as well as the
 
implied perpetual capital growth.
The carrying amount for
 
each CGU is determined
 
by reference to the
 
Group’s equity
 
attribution framework. Within
 
this
framework,
 
which
 
is
 
described
 
in
 
the
 
“Capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet”
 
section
 
of
 
this
 
report,
 
UBS
attributes equity to the businesses on the
 
basis of their
 
risk-weighted assets and leverage ratio denominator (both metrics
include resource allocations from Group Functions to the business divisions), their goodwill and their intangible assets, as
well as
 
attributed equity
 
related to
 
certain common
 
equity tier 1
 
deduction
 
items. The
 
framework is
 
primarily used
 
for
the purpose of measuring the performance of the businesses
 
and includes certain management assumptions. Attributed
equity
is
equal
 
to
 
the
 
capital
 
a
 
CGU
 
requires
 
to
 
conduct
 
its
 
business
 
and
 
is
 
currently
 
considered
 
a
 
reasonable
approximation
 
of the
 
carrying amount
 
of the
 
CGUs.
 
The attributed
 
equity methodology
 
is also
 
applied in
 
the business
planning process, the inputs
 
from which are used in calculating the recoverable amounts
 
of the respective CGU.
›
 
Refer to the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section of this
 
report for more information
 
about the equity
attribution framework
Assumptions
Valuation
 
parameters used
 
within the Group’s
 
impairment test model are
 
linked to
 
external market information,
 
where
applicable. The
 
model used
 
to determine
 
the recoverable
 
amount
 
is most
 
sensitive to
 
changes in
 
the forecast
 
earnings
available to shareholders in years one to
 
three, to changes in the discount rates and to changes
 
in the long-term growth
rate. The applied
 
long-term growth
 
rate is based
 
on long-term economic
 
growth rates
 
for different regions
 
worldwide.
Earnings
 
available to
 
shareholders
 
are
 
estimated
 
on
 
the
 
basis
 
of
 
forecast
 
results,
 
which
 
are
 
part
 
of
 
the
 
business
 
plan
approved by the Board
 
of Directors.
The
 
discount
 
rates
 
are
 
determined
 
by
 
applying
 
a
 
capital
 
asset
 
pricing
 
model-based
 
approach,
 
as
 
well
 
as
 
considering
quantitative and qualitative inputs from both internal and external analysts and
 
the view of management. They also take
into account
 
regional differences
 
in risk-free
 
rates at the
 
level of
 
the individual
 
CGUs. In
 
line with discount
 
rates, long-
term growth rates are determined at the regional
 
level based on nominal
 
GDP growth rate forecasts.
Key
 
assumptions
 
used
 
to
 
determine
 
the
 
recoverable
 
amounts
 
of
 
each
 
CGU
 
are
 
tested
 
for
 
sensitivity
 
by
 
applying
 
a
reasonably possible
 
change
 
to those
 
assumptions.
 
Forecast earnings
 
available
 
to shareholders
 
were
 
changed by
20
%,
the
 
discount
 
rates
 
were
 
changed
 
by
1.5
 
percentage
 
points
,
 
and
 
the
 
long
-
term
 
growth
 
rates
 
were
 
changed
 
by
0.75
 
percentage
 
points.
 
Under
 
all
 
scenarios,
 
reasonably
 
possible
 
changes
 
in
 
key
 
assumptions
 
did
 
not
 
result
 
in
 
an
impairment
 
of
 
goodwill
 
or
 
intangible
 
assets
 
reported
 
by
 
Global
 
Wealth
 
Management
 
Americas,
 
Global
 
Wealth
Management Switzerland
 
and International,
 
and Asset Management.
If the estimated earnings and other assumptions in future
 
periods deviate from the current
 
outlook, the value of goodwill
attributable to
 
Global Wealth
 
Management
 
Americas, Global
 
Wealth Management
 
Switzerland and
 
International,
 
and
Asset Management may become impaired in the future, giving rise to
 
losses in the income statement. Recognition of any
impairment
 
of
 
goodwill
 
would
 
reduce
 
International
 
Financial R
 
eporting
 
Standards
 
equity
 
and
 
net
 
profit.
 
It would
 
not
affect cash flows and, as goodwill is required to be deducted from capital
 
under the Basel III capital framework, no effect
would be expected on
 
the Group’s capital ratios.
 
Discount and growth rates
Discount rates
Growth rates
In %
31.12.22
31.12.21
31.12.22
31.12.21
Global Wealth Management Americas
10.5
9.5
3.8
4.0
Global Wealth Management Switzerland and International
9.4
8.5
3.6
3.1
Asset Management
9.5
8.5
3.4
2.9
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
293
 
 
Note 12
 
Goodwill and intangible assets (continued)
USD m
Goodwill
Intangible
assets
1
2022
2021
Historical cost
Balance at the beginning of the year
6,126
1,612
7,739
7,865
Additions
0
0
0
1
Disposals
2
(22)
0
(22)
(3)
Write-offs
0
0
0
(41)
Foreign currency translation
(61)
(14)
(76)
(83)
Balance at the end of the year
6,043
1,598
7,641
7,739
Accumulated amortization and
 
impairment
Balance at the beginning of the year
1,360
1,360
1,385
Amortization
26
26
31
Impairment / (reversal of impairment)
(1)
(1)
(1)
Write-offs
0
0
(41)
Foreign currency translation
(11)
(11)
(13)
Balance at the end of the year
1,374
1,374
1,360
Net book value at the end of the
 
year
6,043
224
6,267
6,378
of which: Global Wealth Management Americas
3,709
31
3,740
3,760
of which: Global Wealth Management Switzerland
 
and International
1,166
59
1,225
1,276
of which: Asset Management
1,167
0
1,167
1,202
of which: Investment Bank
0
135
135
139
1 Intangible
 
assets mainly
 
include customer
 
relationships,
 
contractual
 
rights
 
and the
 
fully amortized
 
branch
 
network intangible
 
asset recognized
 
in connection
 
with
 
the acquisition
 
of PaineWebber
 
Group,
 
Inc.
 
2 Reflects the derecognition
 
of goodwill allocated to
 
businesses that have been
 
disposed of, in accordance
 
with IAS 36 requirements.
 
The table below presents
 
estimated aggregated amortization
 
expenses for intangible
 
assets.
 
USD m
Intangible assets
Estimated aggregated amortization
 
expenses for:
2023
26
2024
24
2025
23
2026
23
2027
22
Thereafter
104
Not amortized due to indefinite useful life
2
Total
224
 
 
 
Note 13
 
Other assets
 
 
a) Other financial assets measured
 
at amortized cost
USD m
31.12.22
31.12.21
Debt securities
44,594
18,858
Loans to financial advisors
2,611
2,453
Fee-
 
and commission-related receivables
1,812
1,972
Finance lease receivables
1,315
1,356
Settlement and clearing accounts
 
1,175
455
Accrued interest income
1,259
520
Other
499
594
Total other financial assets
 
measured at amortized cost
53,264
26,209
 
Debt
 
securities
 
increased
 
by
 
USD
25.7
bn
 
compared
 
with
 
31
 
December
 
2021,
 
largely
 
reflecting
 
shifts
 
from
 
cash
 
into
securities within UBS’s high
 
-quality liquid asset portfolio as spreads
 
widened. In addition,
 
a portfolio of assets previously
classified
 
as
 
Financial
 
assets
 
measured
 
at
 
fair
 
value
 
through
 
other
 
comprehensive
 
income
 
was
 
reclassified
 
to
 
Other
financial assets measured at amortized
 
cost in 2022.
 
›
 
Refer to Note 1b for
 
more information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
294
 
 
Note 13
 
Other assets (continued)
 
b) Other non-financial assets
USD m
31.12.22
31.12.21
Precious metals and other physical commodities
4,471
5,258
Deposits and collateral provided in connection
 
with litigation, regulatory and similar matters
1
2,205
1,526
Prepaid expenses
1,076
1,108
VAT,
 
withholding tax and other tax receivables
1,468
638
Properties and other non
 
-current assets held for sale
369
32
Assets of disposal group held for sale
2
1,093
Other
 
578
621
Total other non-financial
 
assets
10,166
10,277
1 Refer to Note 17 for more information.
 
2 Refer to Note 29 for
 
more information.
 
 
 
Note 14
 
Customer deposits
USD m
31.12.22
31.12.21
Demand deposits
180,822
246,417
Retail savings / deposits
149,310
133,354
Sweep deposits
69,223
113,870
Time deposits
1
125,696
48,365
Total customer deposits
525,051
542,007
1 Includes customer deposits
 
in UBS AG Jersey Branch
 
placed by UBS Switzerland
 
AG on behalf of its clients.
 
Increases in interest rates during
 
the year resulted in significant shifts
 
from demand deposits to
 
time deposits.
 
 
 
Note 15
 
Debt issued designated at fair
 
value
USD m
31.12.22
31.12.21
Issued debt instruments
Equity-linked
1
41,901
47,059
Rates-linked
16,276
16,369
Credit-linked
2,170
1,723
Fixed-rate
6,538
2,868
Commodity-linked
4,294
2,911
Other
2,459
2,868
of which: debt that contributes to total loss-absorbing
 
capacity
1,959
2,136
Total debt issued designated
 
at fair value
73,638
73,799
of which: issued by UBS AG with original maturity greater
 
than one year
2
57,750
57,967
1 Includes investment fund unit-linked instruments
 
issued.
 
2 Based on original contractual
 
maturity without considering any early
 
redemption features. As of 31 December 2022,
100
% of the balance was unsecured
(31 December 2021:
100
%).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
295
 
 
Note 16
 
Debt issued measured at amortized
 
cost
USD m
31.12.22
31.12.21
Short-term debt
1
29,676
43,098
Senior unsecured debt that
 
contributes to total loss-absorbing capacity (TLAC)
42,073
38,984
Senior unsecured debt other than
 
TLAC
17,892
27,590
of which: issued by UBS AG with original maturity greater
 
than one year
17,892
23,307
Covered bonds
0
1,389
Subordinated debt
16,017
18,640
of which: eligible as high-trigger loss-absorbing additional
 
tier 1 capital instruments
9,882
11,052
of which: eligible as low-trigger loss-absorbing additional
 
tier 1 capital instruments
1,189
2,425
of which: eligible as low-trigger loss-absorbing tier 2 capital
 
instruments
2,422
2,596
of which: eligible as non-Basel III-compliant tier 2 capital
 
instruments
536
547
Debt issued through the Swiss central mortgage
 
institutions
8,962
9,454
Long-term debt
2
84,945
96,057
Total debt issued
 
measured at amortized cost
3
114,621
139,155
1 Debt with an
 
original contractual maturity
 
of less than one
 
year, includes
 
mainly certificates of
 
deposit and commercial
 
paper.
 
2 Debt with an
 
original contractual
 
maturity greater
 
than or equal to
 
one year.
 
The
classification of
 
debt issued
 
into short
 
-term and
 
long-term does
 
not consider
 
any early
 
redemption
 
features.
 
3 Net
 
of bifurcated
 
embedded
 
derivatives,
 
the fair
 
value of
 
which was
 
not material
 
for the
 
periods
presented.
 
The Group
 
uses interest rate and
 
foreign exchange
 
derivatives to manage
 
the risks inherent
 
in certain debt
 
instruments
held at amortized
 
cost. In some
 
cases, the Group
 
applies hedge
 
accounting for
 
interest rate risk
 
as discussed
 
in item 2
 
j
in Note 1a
 
and Note 25. As a result of applying hedge accounting, the life-to-date adjustment to the carrying amount of
debt issued
 
was a
 
decrease of
 
USD
6.1
bn as
 
of 31
 
December 2022
 
and an
 
increase
 
of USD
0.5
bn as
 
of 31
 
December
2021,
 
reflecting changes in fair value due to
 
interest rate movements.
Subordinated debt
 
consists of unsecured
 
debt obligations
 
that are contractually subordinated
 
in right of
 
payment to all
other
 
present
 
and
 
future
 
non-subordinated
 
obligations
 
of
 
the
 
respective issuing
 
entity.
 
All
 
of
 
the
 
subordinated
 
debt
instruments outstanding as of
 
31 December 2022 pay a fixed rate of interest.
›
 
Refer to Note 23
 
for maturity information
 
 
 
Note 17
 
Provisions and contingent liabilities
 
a) Provisions
The table below presents
 
an overview of total provisions.
 
USD m
31.12.22
31.12.21
Provisions other than provisions for expected credit
 
losses
3,042
3,322
Provisions for expected credit losses
1
201
196
Total provisions
3,243
3,518
1 Refer to Note 9 for more information
 
about ECL provisions recognized
 
for off-balance sheet financial
 
instruments and credit lines.
 
 
The following table presents
 
additional information for provisions
 
other than provisions for expected credit
 
losses.
 
USD m
Litigation,
regulatory and
similar matters
1
Restructuring
Other
3
Total 2022
Balance at the beginning of the
 
year
2,798
172
352
3,322
Increase in provisions recognized in the income statement
406
231
53
690
Release of provisions recognized in the income statement
(58)
(25)
(36)
(118)
Provisions used in conformity with designated purpose
(470)
(243)
(32)
(745)
Capitalized reinstatement costs
0
0
1
1
Foreign currency translation / unwind
 
of discount
(91)
(5)
(12)
(108)
Balance at the end of the year
 
2,586
130
2
326
3,042
1 Consists of provisions for losses resulting
 
from legal, liability
 
and compliance risks.
 
2 Consists of personnel-related
 
restructuring provisions
 
of USD
102
m as of 31 December 2022 (31
 
December 2021: USD
125
m)
and provisions for onerous contracts
 
of USD
28
m as of 31 December 2022
 
(31 December 2021: USD
47
m).
 
3 Mainly includes provisions
 
related to real
 
estate, employee benefits and
 
operational risks.
 
Restructuring
 
provisions
 
relate
 
to
 
personnel-related
 
provisions
 
and
 
onerous
 
contracts.
 
Personnel-related
 
restructuring
provisions are
 
generally used
 
within a short
 
period of
 
time. The
 
level of
 
personnel-related
 
provisions
 
can change
 
when
natural
 
staff
 
attrition
 
reduces
 
the
 
number
 
of
 
people
 
affected by
 
a
 
restructuring
 
event,
 
and
 
therefore
 
results
 
in
 
lower
estimated costs. Onerous contracts
 
for property are
 
recognized when UBS is
 
committed to pay
 
for non-lease components,
such as
 
utilities, service
 
charges, taxes
 
and
 
maintenance,
 
when
 
a property
 
is
 
vacated
 
or not
 
fully recovered
 
from sub-
tenants.
 
Information about
 
provisions and
 
contingent liabilities in
 
respect of litigation,
 
regulatory and
 
similar matters,
 
as a class,
is included in Note 17b.
 
There are no material contingent liabilities associated
 
with the other classes of provisions.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
296
 
 
Note 17
 
Provisions and contingent liabilities (continued)
 
b) Litigation, regulatory and
 
similar matters
The Group operates in a legal and
 
regulatory environment that exposes it
 
to significant litigation and
 
similar risks arising
from disputes and regulatory proceedings.
 
As a result, UBS (which for purposes of this Note may refer to UBS Group
 
AG
and/or
 
one
 
or
 
more
 
of
 
its
 
subsidiaries,
 
as
 
applicable)
 
is
 
involved
 
in
 
various
 
disputes
 
and
 
legal
 
proceedings,
 
including
litigation, arbitration, and
 
regulatory and criminal investigations.
Such
 
matters
 
are
 
subject
 
to
 
many
 
uncertainties,
 
and
 
the
 
outcome
 
and
 
the
 
timing
 
of
 
resolution
 
are
 
often
 
difficult
 
to
predict, particularly in the earlier stages of a case. There
 
are also situations where the Group may enter into a settlement
agreement.
 
This
 
may
 
occur
 
in
 
order
 
to
 
avoid
 
the
 
expense,
 
management
 
distraction
 
or
 
reputational
 
implications
 
of
continuing
 
to
 
contest
 
liability,
 
even
 
for
 
those
 
matters
 
for
 
which
 
the
 
Group
 
believes
 
it
 
should
 
be
 
exonerated.
 
The
uncertainties inherent
 
in all such
 
matters affect the amount
 
and timing
 
of any potential outflows
 
for both
 
matters with
respect to which
 
provisions have been
 
established and other
 
contingent liabilities. The
 
Group makes provisions
 
for such
matters brought against
 
it when, in the opinion of management after seeking legal advice, it is more likely than not
 
that
the
 
Group
 
has
 
a
 
present
 
legal
 
or
 
constructive
 
obligation
 
as
 
a
 
result
 
of
 
past
 
events,
 
it is
 
probable
 
that
 
an
 
outflow
 
of
resources
 
will be
 
required,
 
and
 
the
 
amount
 
can
 
be
 
reliably
 
estimated.
 
Where
 
these
 
factors
 
are
 
otherwise
 
satisfied,
 
a
provision may be established for claims that have
 
not yet been asserted against the Group, but are nevertheless expected
to be, based
 
on the Group’s
 
experience with similar asserted
 
claims. If any
 
of those conditions
 
is not met, such
 
matters
result
 
in
 
contingent
 
liabilities. If
 
the
 
amount
 
of
 
an obligation
 
cannot be
 
reliably estimated,
 
a
 
liability exists
 
that
 
is
 
not
recognized
 
even
 
if
 
an
 
outflow
 
of
 
resources
 
is
 
probable.
 
Accordingly,
 
no
 
provision
 
is
 
established
 
even
 
if
 
the
 
potential
outflow of resources with respect to such
 
matters could be significant.
 
Developments relating to a matter that
 
occur after
the relevant reporting
 
period, but
 
prior to the
 
issuance of financial statements,
 
which affect
 
management’s assessment
of the provision for such matter
 
(because, for example,
 
the developments provide
 
evidence of conditions that existed
 
at
the end of the reporting period), are adjusting events after the reporting
 
period under IAS 10 and must be recognized in
the financial statements for the reporting
 
period.
Specific
 
litigation,
 
regulatory
 
and
 
other
 
matters
 
are
 
described
 
below,
 
including
 
all
 
such
 
matters
 
that
 
management
considers to
 
be material and
 
others that
 
management believes to
 
be of
 
significance due to
 
potential financial, reputational
and
 
other
 
effects. The
 
amount
 
of damages
 
claimed, the
 
size of
 
a
 
transaction
 
or
 
other information
 
is
 
provided
 
where
available and appropriate in order
 
to assist users in considering the
 
magnitude of potential exposures.
In the case of certain matters below,
 
we state that we have established
 
a provision, and
 
for the other matters, we make
no such
 
statement. When we
 
make this
 
statement and
 
we expect disclosure
 
of the
 
amount of
 
a provision
 
to prejudice
seriously our position with other
 
parties in the matter because it would reveal what UBS
 
believes to be the probable and
reliably estimable
 
outflow, we
 
do not
 
disclose that
 
amount. In
 
some cases
 
we are
 
subject to
 
confidentiality obligations
that preclude
 
such disclosure.
 
With respect
 
to the
 
matters
 
for which
 
we
 
do
 
not state
 
whether we
 
have
 
established
 
a
provision, either: (a) we have
 
not established a
 
provision, in which case the
 
matter is treated
 
as a contingent liability
 
under
the applicable accounting standard;
 
or (b) we have established a provision
 
but expect disclosure of that fact to prejudice
seriously our
 
position with
 
other parties
 
in the matter
 
because it would
 
reveal the
 
fact that UBS
 
believes an
 
outflow of
resources to be probable
 
and reliably estimable.
With respect to certain litigation, regulatory and similar matters for which we have
 
established provisions, we are able to
estimate the expected
 
timing of
 
outflows. However,
 
the aggregate amount
 
of the expected outflows
 
for those
 
matters
for which
 
we are
 
able to
 
estimate expected
 
timing
 
is immaterial
 
relative to
 
our current
 
and
 
expected levels
 
of liquidity
over the relevant time periods.
The aggregate amount provisioned
 
for litigation, regulatory and similar matters as a class is disclosed
 
in the “Provisions”
table in Note 17a above. It
 
is not practicable to provide an aggregate estimate of
 
liability for our litigation, regulatory and
similar matters as a class of contingent liabilities. Doing so would require UBS to provide speculative legal assessments
 
as
to claims
 
and
 
proceedings
 
that involve
 
unique fact
 
patterns or
 
novel legal
 
theories, that have
 
not yet
 
been initiated
 
or
are at early stages of adjudication, or as to which
 
alleged damages have not been quantified by the claimants. Although
UBS
 
therefore cannot
 
provide
 
a numerical estimate
 
of the
 
future losses
 
that could
 
arise from
 
litigation,
 
regulatory and
similar
 
matters,
 
UBS
 
believes
 
that
 
the
 
aggregate
 
amount
 
of
 
possible
 
future
 
losses
 
from
 
this
 
class
 
that
 
are
 
more
 
than
remote substantially exceeds the level of
 
current provisions.
 
Litigation, regulatory
 
and similar matters
 
may also result
 
in non-monetary penalties
 
and consequences.
 
A guilty plea to,
or conviction
 
of, a
 
crime could
 
have material
 
consequences
 
for UBS.
 
Resolution of
 
regulatory proceedings
 
may require
UBS to obtain waivers of regulatory disqualifications
 
to maintain certain operations, may entitle regulatory authorities
 
to
limit,
 
suspend
 
or
 
terminate
 
licenses
 
and
 
regulatory
 
authorizations,
 
and
 
may
 
permit
 
financial
 
market
 
utilities
 
to
 
limit,
suspend or terminate UBS’s
 
participation in such utilities. Failure
 
to obtain such waivers,
 
or any limitation, suspension
 
or
termination of licenses, authorizations
 
or participations, could have material
 
consequences for UBS.
The risk of loss associated with
 
litigation, regulatory and similar
 
matters is a component
 
of operational risk for
 
purposes
of determining capital requirements. Information
 
concerning our capital requirements and
 
the calculation of operational
risk for this purpose is included
 
in the “Capital, liquidity and
 
funding, and balance sheet” section
 
of this report.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
297
 
 
Note 17
 
Provisions and contingent liabilities (continued)
Provisions for litigation, regulatory
 
and similar matters by business division
 
and in Group Functions
1
USD m
Global Wealth
 
Manage-
ment
Personal &
Corporate
Banking
 
Asset
 
Manage-
ment
Investment
 
Bank
Group
Functions
Total 2022
Balance at the beginning of the
 
year
1,338
181
8
310
962
2,798
Increase in provisions recognized in the income statement
268
2
1
129
6
406
Release of provisions recognized in the income statement
(23)
(15)
0
(8)
(12)
(58)
Provisions used in conformity with designated purpose
(331)
0
0
(115)
(23)
(470)
Reclassifications
0
0
0
4
(4)
0
Foreign currency translation / unwind
 
of discount
(70)
(9)
0
(11)
0
(91)
Balance at the end of the year
1,182
159
8
308
928
2,586
1 Provisions, if
 
any, for
 
the matters
 
described in items
 
3 and 4
 
of this Note
 
are recorded in
 
Global Wealth
 
Management, and
 
provisions,
 
if any, for
 
the matters
 
described in item 2
 
are recorded in
 
Group Functions.
Provisions, if any,
 
for the matters described
 
in items 1 and 6
 
of this Note are allocated
 
between Global Wealth
 
Management and Personal
 
& Corporate Banking,
 
provisions, if any,
 
for the matters described
 
in item 5
are allocated between the Investment
 
Bank and Group Functions,
 
and provisions, if
 
any, for the
 
matters described in item 7 are
 
allocated between Global
 
Wealth Management and
 
the Investment Bank.
 
1. Inquiries regarding cross
 
-border wealth management businesses
 
Tax and regulatory authorities in a number of countries have
 
made inquiries, served requests for information or examined
employees located in
 
their respective jurisdictions
 
relating to
 
the cross-border
 
wealth management services
 
provided by
UBS and other financial institutions.
 
Since 2013, UBS (France) S.A., UBS AG and certain former employees have been under investigation in France in relation
to UBS’s cross-border business with French clients. In connection with this investigation, the investigating judges ordered
UBS AG to provide bail
 
(“caution”) of EUR
1.1
bn.
 
On 20 February 2019, the court of
 
first instance returned a
 
verdict finding UBS AG
 
guilty of unlawful
 
solicitation of clients
on French
 
territory and
 
aggravated laundering
 
of the proceeds
 
of tax fraud,
 
and UBS
 
(France) S.A.
 
guilty of
 
aiding and
abetting
 
unlawful
 
solicitation
 
and
 
of
 
laundering
 
the
 
proceeds
 
of
 
tax
 
fraud.
 
The
 
court
 
imposed
 
fines
 
aggregating
EUR
3.7
bn on UBS AG and UBS
 
(France) S.A. and awarded EUR
800
m of civil damages to the French state. A
 
trial in the
French Court of Appeal took
 
place in March 2021. On 13
 
December 2021, the Court of Appeal
 
found UBS AG guilty of
unlawful solicitation and aggravated laundering of the proceeds of tax
 
fraud. The court ordered a fine of EUR
3.75
m, the
confiscation of EUR
1
bn, and awarded civil damages to the
 
French state of EUR
800
m. UBS AG has filed an appeal
 
with
the French Supreme Court to preserve its rights. The notice of appeal enables UBS AG to thoroughly assess the verdict of
the Court
 
of Appeal and
 
to determine next
 
steps in the
 
best interest of
 
its stakeholders. The fine
 
and confiscation imposed
by the
 
Court of
 
Appeal
 
are suspended
 
during the
 
appeal.
 
The civil
 
damages
 
award
 
has been
 
paid
 
to the
 
French state
(EUR
99
m of which was deducted from the bail), subject
 
to the result of UBS’s appeal.
Our
 
balance
 
sheet
 
at
 
31 December
 
2022
 
reflected provisions
 
with
 
respect
 
to
 
this
 
matter
 
in
 
an
 
amount
 
of
 
EUR
1.1
bn
(USD
1.2
bn). The
 
wide range
 
of possible
 
outcomes in
 
this case
 
contributes to
 
a high
 
degree of
 
estimation uncertainty
and the provision reflects our best
 
estimate of possible financial implications, although actual penalties and civil damages
could exceed (or may be less than) the provision
 
amount.
Our balance
 
sheet at 31 December 2022 reflected
 
provisions with respect
 
to matters described
 
in this item
 
1 in
 
an amount
that UBS believes to be appropriate
 
under the applicable accounting
 
standard. As in the case of other matters for which
we have
 
established
 
provisions, the
 
future outflow
 
of resources
 
in respect
 
of such
 
matters cannot
 
be determined
 
with
certainty based
 
on
 
currently available
 
information
 
and
 
accordingly may
 
ultimately prove
 
to be
 
substantially greater
 
(or
may be less) than the provision
 
that we have recognized.
2. Claims related to sales of residential
 
mortgage-backed securities and
 
mortgages
From 2002 through 2007,
 
prior to
 
the crisis
 
in the
 
US residential loan
 
market, UBS was
 
a substantial
 
issuer and underwriter
of US residential mortgage-backed
 
securities (RMBS) and
 
was a purchaser and
 
seller of US residential mortgages.
 
In November 2018, the DOJ filed
 
a civil complaint in the
 
District Court for the Eastern District
 
of New York. The complaint
seeks unspecified civil monetary penalties
 
under the Financial Institutions Reform, Recovery
 
and Enforcement Act of 1989
related to UBS’s
 
issuance, underwriting
 
and sale of 40
 
RMBS transactions in
 
2006 and 2007.
 
UBS moved to
 
dismiss the
civil complaint in February 2019.
 
In December 2019, the district court denied
 
UBS’s motion to dismiss.
 
Our
 
balance
 
sheet
 
at
 
31 December
 
2022
 
reflected a
 
provision
 
with
 
respect
 
to
 
matters
 
described
 
in
 
this
 
item
 
2
 
in
 
an
amount that
 
UBS believes
 
to be
 
appropriate under
 
the applicable accounting
 
standard. As
 
in the case
 
of other matters
for which we have established provisions, the future outflow of resources in respect of this matter cannot be determined
with certainty based
 
on currently available
 
information and
 
accordingly may ultimately
 
prove to
 
be substantially greater
(or may be less) than the provision
 
that we have recognized.
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
298
 
 
Note 17
 
Provisions and contingent liabilities (continued)
3. Madoff
In relation to the Bernard L. Madoff
 
Investment Securities LLC (BMIS) investment fraud,
 
UBS AG, UBS (Luxembourg) S.A.
(now UBS Europe SE, Luxembourg branch) and certain other UBS subsidiaries have been subject to inquiries by a
 
number
of regulators,
 
including the
 
Swiss Financial Market
 
Supervisory Authority
 
(FINMA) and
 
the Luxembourg
 
Commission de
Surveillance du
 
Secteur Financier.
 
Those
 
inquiries concerned
 
two third
 
-party funds
 
established under
 
Luxembourg law,
substantially all assets of
 
which were with BMIS,
 
as well as certain
 
funds established
 
in offshore jurisdictions
 
with either
direct or indirect
 
exposure to
 
BMIS. These
 
funds faced
 
severe losses,
 
and the
 
Luxembourg
 
funds are in
 
liquidation. The
documentation
 
establishing
 
both
 
funds
 
identifies
 
UBS
 
entities
 
in
 
various
 
roles,
 
including
 
custodian,
 
administrator,
manager,
 
distributor and promoter,
 
and indicates that UBS employees
 
serve as board members.
In 2009
 
and 2010, the
 
liquidators of the
 
two Luxembourg funds
 
filed claims against
 
UBS entities, non
 
-UBS entities and
certain
 
individuals,
 
including
 
current
 
and
 
former UBS
 
employees,
 
seeking
 
amounts
 
totaling
 
approximately
 
EUR
2.1
bn,
which includes amounts that the funds
 
may be held liable to pay the trustee for the
 
liquidation of BMIS
 
(BMIS Trustee).
A large number of alleged beneficiaries have filed claims against UBS entities (and non
 
-UBS entities) for purported losses
relating to the Madoff fraud. The majority of these cases have been filed in Luxembourg, where decisions that the claims
in
 
eight
 
test
 
cases
 
were
 
inadmissible
 
have
 
been
 
affirmed
 
by
 
the
 
Luxembourg
 
Court
 
of
 
Appeal,
 
and
 
the
 
Luxembourg
Supreme Court has dismissed
 
a further appeal in one of the
 
test cases.
In the US, the BMIS Trustee filed claims
 
against UBS entities, among others, in relation to the two Luxembourg funds and
one of the offshore
 
funds. The total amount claimed against
 
all defendants in these
 
actions was not less than USD
2
bn.
In 2014,
 
the US
 
Supreme
 
Court rejected
 
the BMIS
 
Trustee’s
 
motion for
 
leave to
 
appeal
 
decisions
 
dismissing
 
all claims
except
 
those
 
for
 
the
 
recovery
 
of
 
approximately
 
USD
125
m
 
of
 
payments
 
alleged
 
to
 
be
 
fraudulent
 
conveyances
 
and
preference payments.
 
In 2016,
 
the bankruptcy court
 
dismissed these
 
claims against
 
the UBS
 
entities. In February
 
2019,
the
 
Court
 
of
 
Appeals
 
reversed
 
the
 
dismissal
 
of
 
the
 
BMIS
 
Trustee’s
 
remaining
 
claims,
 
and
 
the
 
US
 
Supreme
 
Court
subsequently
 
denied
 
a petition
 
seeking
 
review of
 
the Court
 
of Appeals’
 
decision.
 
The case
 
has been
 
remanded
 
to the
Bankruptcy Court for further proceedings.
4. Puerto Rico
Declines since 2013
 
in the market
 
prices of Puerto
 
Rico municipal
 
bonds
 
and of closed-end
 
funds (funds)
 
that are sole-
managed and co-managed by UBS
 
Trust Company of
 
Puerto Rico and distributed by UBS Financial Services Incorporated
of Puerto Rico (UBS
 
PR) led to multiple
 
regulatory inquiries, which
 
in 2014 and
 
2015, led to settlements
 
with the Office
of
 
the
 
Commissioner
 
of
 
Financial Institutions
 
for
 
the
 
Commonwealth
 
of
 
Puerto
 
Rico,
 
the
 
US Securities
 
and
 
Exchange
Commission (SEC) and
 
the Financial Industry Regulatory Authority.
Since then,
 
UBS
 
clients in
 
Puerto Rico
 
who own
 
the funds
 
or Puerto
 
Rico municipal
 
bonds
 
and/or who
 
used
 
their UBS
account
 
assets
 
as
 
collateral
 
for
 
UBS
 
non-purpose
 
loans
 
filed
 
customer
 
complaints
 
and
 
arbitration
 
demands
 
seeking
aggregate
 
damages
 
of
 
USD
3.42
bn,
 
of
 
which
 
USD
3.37
bn
 
have
 
been
 
resolved
 
through
 
settlements,
 
arbitration
 
or
withdrawal of claims. Allegations
 
include fraud, misrepresentation and
 
unsuitability of the funds and of the loans.
A shareholder derivative action was filed in 2014
 
against various UBS entities and current and certain former directors of
the funds,
 
alleging hundreds of
 
millions of US
 
dollars in
 
losses in
 
the funds. In 2021,
 
the parties reached
 
an agreement
to settle this matter for USD
15
m, subject to court approval.
 
In 2011, a purported derivative action was filed on
 
behalf of the Employee Retirement System of
 
the Commonwealth of
Puerto Rico (System) against over
 
40 defendants, including UBS PR,
 
which was named
 
in connection with its underwriting
and
 
consulting
 
services.
 
Plaintiffs
 
alleged
 
that
 
defendants
 
violated
 
their
 
purported
 
fiduciary
 
duties
 
and
 
contractual
obligations in
 
connection with
 
the issuance
 
and underwriting
 
of USD
3
bn of
 
bonds by the
 
System in 2008
 
and sought
damages of over USD
800
m. In 2016, the
 
court granted the System’s request to
 
join the action as a plaintiff. In
 
2022, a
federal district
 
court enjoined
 
the plaintiffs
 
from proceeding
 
with the action
 
on the
 
grounds it
 
impermissibly conflicted
with Puerto Rico’s approved
 
Plan of Adjustment.
Beginning
 
in
 
2015,
 
certain agencies
 
and
 
public corporations
 
of
 
the
 
Commonwealth
 
of
 
Puerto
 
Rico
 
(Commonwealth)
defaulted on certain interest
 
payments on Puerto Rico
 
bonds. In 2016,
 
US federal legislation created an
 
oversight board
with power to oversee Puerto
 
Rico’s finances and to restructure
 
its debt. The oversight
 
board has imposed
 
a stay on the
exercise
 
of
 
certain
 
creditors’
 
rights.
 
In
 
2017,
 
the
 
oversight
 
board
 
placed
 
certain
 
of
 
the
 
bonds
 
into
 
a
 
bankruptcy-like
proceeding under the supervision
 
of a Federal District Judge.
 
In May 2019,
 
the oversight board
 
filed complaints in
 
Puerto Rico
 
federal district court
 
bringing claims against
 
financial,
legal and accounting firms that had participated in Puerto
 
Rico municipal bond offerings, including UBS, seeking a return
of
 
underwriting
 
and
 
swap
 
fees
 
paid
 
in
 
connection
 
with
 
those
 
offerings.
 
UBS
 
estimates that
 
it received
 
approximately
USD
125
m in fees in the relevant offerings.
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
299
 
 
Note 17
 
Provisions and contingent liabilities (continued)
In
 
August
 
2019,
 
and
 
February and
 
November
 
2020,
 
four
 
US
 
insurance
 
companies
 
that
 
insured
 
issues
 
of
 
Puerto
 
Rico
municipal bonds
 
sued UBS
 
and several other
 
underwriters of
 
Puerto Rico
 
municipal
 
bonds
 
in three
 
separate cases.
 
The
actions collectively seek recovery
 
of an aggregate of USD
955
m in damages from the defendants.
 
The plaintiffs in these
cases claim that defendants failed to reasonably
 
investigate financial statements
 
in the offering materials for the insured
Puerto
 
Rico
 
bonds
 
issued
 
between
 
2002
 
and
 
2007,
 
which plaintiffs
 
argue
 
they
 
relied
 
upon
 
in
 
agreeing
 
to
 
insure
 
the
bonds notwithstanding
 
that they had no contractual relationship
 
with the underwriters. Defendants’
 
motions to dismiss
have been granted in all three
 
cases; those decisions are being
 
appealed by the plaintiffs.
Our balance sheet at 31 December 2022
 
reflected provisions with respect to matters described in
 
this item 4 in amounts
that UBS believes to be appropriate
 
under the applicable accounting
 
standard. As in the case of other matters
 
for which
we have
 
established
 
provisions, the
 
future outflow
 
of resources
 
in respect
 
of such
 
matters cannot
 
be determined
 
with
certainty based
 
on
 
currently available
 
information
 
and
 
accordingly may
 
ultimately prove
 
to be
 
substantially greater
 
(or
may be less) than the provisions
 
that we have recognized.
5. Foreign exchange, LIBOR
 
and benchmark rates, and other trading practices
Foreign
 
exchange-related
 
regulatory
 
matters:
 
Beginning
 
in
 
2013,
 
numerous
 
authorities
 
commenced
 
investigations
concerning
 
possible
 
manipulation
 
of
 
foreign
 
exchange
 
markets
 
and
 
precious
 
metals
 
prices.
 
As
 
a
 
result
 
of
 
these
investigations,
 
UBS
 
entered
 
into
 
resolutions
 
with
 
Swiss,
 
US
 
and
 
United
 
Kingdom
 
regulators
 
and
 
the
 
European
Commission.
 
UBS
 
was
 
granted
 
conditional
 
immunity by
 
the
 
Antitrust
 
Division
 
of
 
the
 
DOJ
 
and
 
by
 
authorities
 
in
 
other
jurisdictions
 
in connection
 
with potential
 
competition
 
law violations
 
relating
 
to foreign
 
exchange and
 
precious
 
metals
businesses.
Foreign exchange-related civil litigation:
 
Putative class actions have been filed
 
since 2013 in
 
US federal courts and in
 
other
jurisdictions
 
against
 
UBS
 
and
 
other
 
banks
 
on
 
behalf
 
of
 
putative
 
classes
 
of
 
persons
 
who
 
engaged
 
in
 
foreign
 
currency
transactions with any of the defendant banks. UBS has resolved US
 
federal court class actions
 
relating to foreign currency
transactions
 
with the
 
defendant
 
banks and
 
persons
 
who transacted
 
in foreign
 
exchange futures
 
contracts and
 
options
on
 
such futures
 
under
 
a settlement
 
agreement
 
that
 
provides
 
for
 
UBS
 
to pay
 
an aggregate
 
of
 
USD
141
m
 
and
 
provide
cooperation to
 
the settlement classes.
 
Certain class
 
members have
 
excluded themselves
 
from that settlement
 
and have
filed individual
 
actions
 
in US
 
and
 
English
 
courts against
 
UBS
 
and
 
other banks,
 
alleging
 
violations of
 
US and
 
European
competition
 
laws and
 
unjust
 
enrichment. UBS
 
and
 
the other
 
banks have
 
reached
 
an agreement
 
in principle
 
to resolve
those individual matters.
In 2015,
 
a putative class action
 
was filed
 
in federal
 
court against UBS
 
and numerous
 
other banks
 
on behalf
 
of persons
and businesses
 
in the US
 
who directly purchased
 
foreign currency from
 
the defendants
 
and alleged
 
co-conspirators for
their own end use. In March 2017, the court granted UBS’s (and the other banks’) motions to dismiss the complaint. The
plaintiffs
 
filed
 
an
 
amended
 
complaint
 
in
 
August
 
2017.
 
In
 
March
 
2018,
 
the
 
court
 
denied
 
the
 
defendants’
 
motions
 
to
dismiss the amended complaint. In March
 
2022, the court denied
 
plaintiffs’ motion for class certification.
LIBOR
 
and
 
other
 
benchmark-related
 
regulatory
 
matters:
 
Numerous
 
government
 
agencies
 
conducted
 
investigations
regarding potential improper attempts by UBS, among others, to manipulate LIBOR
 
and other benchmark rates at certain
times.
 
UBS
 
reached
 
settlements
 
or
 
otherwise
 
concluded
 
investigations
 
relating
 
to
 
benchmark
 
interest
 
rates
 
with
 
the
investigating
 
authorities.
 
UBS
 
was
 
granted
 
conditional
 
leniency
 
or
 
conditional
 
immunity
 
from
 
authorities
 
in
 
certain
jurisdictions, including
 
the Antitrust Division of
 
the DOJ and
 
the Swiss Competition Commission
 
(WEKO), in connection
with
 
potential
 
antitrust
 
or
 
competition
 
law
 
violations
 
related
 
to
 
certain
 
rates.
 
However,
 
UBS
 
has
 
not
 
reached
 
a
 
final
settlement with WEKO, as the Secretariat of
 
WEKO has asserted that UBS
 
does not qualify for full immunity.
LIBOR and
 
other benchmark-related
 
civil litigation:
 
A number
 
of putative class
 
actions and
 
other actions are
 
pending in
the federal
 
courts in
 
New York
 
against UBS
 
and numerous
 
other banks
 
on behalf
 
of parties
 
who
 
transacted in
 
certain
interest rate benchmark-based derivatives. Also pending in the
 
US and in
 
other jurisdictions are a number
 
of other actions
asserting losses
 
related to various
 
products whose
 
interest rates were
 
linked to
 
LIBOR and
 
other benchmarks, including
adjustable
 
rate
 
mortgages,
 
preferred
 
and
 
debt
 
securities,
 
bonds
 
pledged
 
as
 
collateral,
 
loans,
 
depository
 
accounts,
investments
 
and
 
other
 
interest-bearing
 
instruments.
 
The
 
complaints
 
allege
 
manipulation,
 
through
 
various
 
means,
 
of
certain benchmark interest
 
rates, including USD LIBOR, Euroyen TIBOR,
 
Yen LIBOR, EURIBOR, CHF LIBOR, GBP
 
LIBOR, SGD
SIBOR
 
and
 
SOR
 
and
 
Australian
 
BBSW,
 
and
 
seek
 
unspecified
 
compensatory
 
and
 
other
 
damages
 
under
 
varying
 
legal
theories.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
300
 
 
Note 17
 
Provisions and contingent liabilities (continued)
USD LIBOR class and individual actions in the
 
US:
In 2013 and 2015,
 
the district court
 
in the USD LIBOR actions dismissed,
in whole
 
or in
 
part, certain
 
plaintiffs’ antitrust
 
claims, federal
 
racketeering
 
claims, CEA
 
claims, and
 
state common
 
law
claims,
 
and
 
again
 
dismissed
 
the
 
antitrust claims
 
in
 
2016
 
following
 
an
 
appeal.
 
In
 
December 2021,
 
the
 
Second
 
Circuit
affirmed
 
the
 
district
 
court’s
 
dismissal
 
in
 
part
 
and
 
reversed
 
in
 
part
 
and
 
remanded
 
to
 
the
 
district
 
court
 
for
 
further
proceedings. The Second
 
Circuit, among other
 
things, held that
 
there was
 
personal jurisdiction over
 
UBS and other
 
foreign
defendants
 
based
 
on
 
allegations that
 
at least
 
one
 
alleged co
 
-conspirator
 
undertook
 
an overt
 
act in
 
the United
 
States.
Separately,
 
in 2018,
 
the Second
 
Circuit reversed
 
in part
 
the district
 
court’s 2015
 
decision dismissing
 
certain individual
plaintiffs’ claims
 
and certain
 
of these
 
actions are
 
now proceeding.
 
In 2018,
 
the district
 
court denied
 
plaintiffs’
 
motions
for class certification in the USD
 
class actions for claims pending
 
against UBS, and plaintiffs sought permission
 
to appeal
that ruling to the
 
Second Circuit. In July
 
2018, the Second Circuit
 
denied the petition
 
to appeal of the
 
class of USD lenders
and in November 2018 denied
 
the petition of the USD exchange class. In January 2019,
 
a putative class action was filed
in
 
the
 
District
 
Court
 
for
 
the
 
Southern
 
District
 
of
 
New
 
York
 
against
 
UBS
 
and
 
numerous
 
other
 
banks
 
on
 
behalf
 
of
 
US
residents who, since
 
1 February 2014, directly
 
transacted with
 
a defendant bank
 
in USD LIBOR instruments.
 
The complaint
asserts antitrust claims.
 
The defendants moved to
 
dismiss the complaint in
 
August 2019. In March
 
2020 the court
 
granted
defendants’
 
motion to
 
dismiss the
 
complaint
 
in its
 
entirety. Plaintiffs
 
have appealed
 
the dismissal.
 
In March
 
2022,
 
the
Second
 
Circuit dismissed
 
the appeal
 
because appellants,
 
who
 
had been
 
substituted in
 
to replace
 
the original
 
plaintiffs
who had withdrawn, lacked standing
 
to pursue the appeal.
 
In August 2020, an
 
individual action was filed
 
in the Northern
District of
 
California against
 
UBS
 
and
 
numerous
 
other
 
banks
 
alleging that
 
the defendants
 
conspired
 
to fix the
 
interest
rate used
 
as
 
the
 
basis
 
for
 
loans
 
to
 
consumers by
 
jointly setting
 
the
 
USD LIBOR
 
rate
 
and
 
monopolized
 
the
 
market for
LIBOR-based
 
consumer
 
loans
 
and
 
credit
 
cards.
 
Defendants
 
moved
 
to
 
dismiss
 
the
 
complaint
 
in
 
September
 
2021.
 
In
September 2022, the court
 
granted defendants’ motion
 
to dismiss the complaint
 
in its entirety, while
 
allowing plaintiffs
the opportunity
 
to file an
 
amended
 
complaint. Plaintiffs
 
filed an
 
amended complaint
 
in October
 
2022,
 
and defendants
have moved to dismiss the amended
 
complaint in November 2022
 
.
Other benchmark class actions in the
 
US:
 
Yen
 
LIBOR
 
/
 
Euroyen
 
TIBOR
 
–
In 2014,
 
2015
 
and
 
2017,
 
the court
 
in
 
one
 
of
 
the
 
Yen
 
LIBOR
 
/
 
Euroyen
 
TIBOR
 
lawsuits
dismissed
 
certain
 
of
 
the
 
plaintiffs’
 
claims,
 
including
 
the
 
plaintiffs’
 
federal antitrust
 
and
 
racketeering
 
claims. In
 
August
2020,
 
the court granted
 
defendants’ motion
 
for judgment
 
on the pleadings
 
and dismissed the
 
lone remaining
 
claim in
the action as
 
impermissibly extraterritorial. In October
 
2022, the appeals court
 
affirmed the dismissal
 
on multiple grounds.
In 2017,
 
the court
 
dismissed the
 
other Yen
 
LIBOR
 
/ Euroyen
 
TIBOR action
 
in its
 
entirety
 
on
 
standing
 
grounds.
 
In April
2020, the
 
appeals court reversed
 
the dismissal and
 
in August
 
2020 plaintiffs in
 
that action filed
 
an amended
 
complaint
focused
 
on
 
Yen
 
LIBOR.
 
The
 
court
 
granted
 
in
 
part
 
and
 
denied
 
in
 
part
 
defendants’
 
motion
 
to
 
dismiss
 
the
 
amended
complaint in
 
September 2021.
 
In August
 
2022, the
 
court granted
 
UBS’s motion
 
for reconsideration
 
and dismissed
 
the
case against UBS.
 
CHF LIBOR
 
– In 2017, the court
 
dismissed the CHF LIBOR action on standing grounds
 
and failure to state
 
a claim. Plaintiffs
filed an amended complaint, and the court granted a
 
renewed motion to dismiss in September 2019. Plaintiffs appealed.
In September 2021, the Second Circuit granted
 
the parties’ joint motion to vacate the dismissal and remand the case for
further proceedings. Plaintiffs filed a third amended complaint in
 
November 2022 and defendants have moved to dismiss
the amended complaint in January 2023
 
.
EURIBOR
 
– In 2017, the court in the EURIBOR
 
lawsuit dismissed the case as to UBS and certain other foreign
 
defendants
for lack of personal jurisdiction. Plaintiffs
 
have appealed.
 
SIBOR / SOR
 
– In October 2018, the court
 
in the SIBOR / SOR action
 
dismissed all but one of plaintiffs’
 
claims against UBS.
Plaintiffs
 
filed
 
an
 
amended
 
complaint,
 
and
 
the
 
court
 
granted
 
a
 
renewed
 
motion
 
to
 
dismiss
 
in
 
July
 
2019.
 
Plaintiffs
appealed.
 
In March
 
2021,
 
the Second
 
Circuit reversed
 
the dismissal.
 
Plaintiffs
 
filed
 
an amended
 
complaint in
 
October
2021, which defendants moved to dismiss in November 2021. In March 2022, plaintiffs reached a settlement in principle
with the remaining defendants,
 
including UBS. The court g
 
ranted final approval of the settlement in November
 
2022.
 
BBSW
 
– In
 
November 2018,
 
the court
 
dismissed the
 
BBSW lawsuit
 
as to
 
UBS
 
and certain other
 
foreign
 
defendants for
lack of personal jurisdiction. Plaintiffs filed an amended complaint
 
in April 2019, which UBS and other defendants moved
to dismiss in
 
May 2019.
 
In February 2020,
 
the court granted
 
in part and
 
denied in part defendants’
 
motions to
 
dismiss
the
 
amended
 
complaint.
 
In
 
August
 
2020,
 
UBS
 
and
 
other
 
BBSW
 
defendants
 
joined
 
a
 
motion
 
for
 
judgment
 
on
 
the
pleadings, which
 
the court denied
 
in May
 
2021.
 
In February 2022,
 
plaintiffs reached
 
a settlement
 
in principle
 
with the
remaining defendants, including
 
UBS. The court granted final approval of
 
the settlement in November 2022.
GBP LIBOR
 
– The court dismissed the GBP LIBOR
 
action in August 2019.
 
Plaintiffs have appealed.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
301
 
 
Note 17
 
Provisions and contingent liabilities (continued)
Government bonds
: Putative class actions
 
have been
 
filed since 2015
 
in US federal courts
 
against UBS
 
and other banks
on behalf
 
of persons
 
who participated
 
in markets
 
for US
 
Treasury securities
 
since 2007.
 
A consolidated
 
complaint was
filed in 2017 in the US District Court for the Southern
 
District of New York alleging that the banks
 
colluded with respect
to, and
 
manipulated
 
prices of,
 
US Treasury
 
securities sold
 
at auction
 
and in
 
the secondary
 
market and
 
asserting claims
under
 
the
 
antitrust laws
 
and
 
for unjust
 
enrichment. Defendants’
 
motions
 
to dismiss
 
the
 
consolidated
 
complaint
 
were
granted
 
in
 
March
 
2021.
 
Plaintiffs filed
 
an
 
amended
 
complaint,
 
which
 
defendants
 
moved
 
to
 
dismiss
 
in
 
June
 
2021.
 
In
March
 
2022,
 
the
 
court granted
 
defendants’
 
motion
 
to
 
dismiss
 
that
 
complaint.
 
Plaintiffs
 
have
 
appealed
 
the
 
dismissal.
Similar class actions have been
 
filed concerning European government
 
bonds and other government bonds.
In May 2021, the European Commission
 
issued a decision finding that UBS
 
and six other
 
banks breached European Union
antitrust rules in 2007–2011
 
relating to European government
 
bonds. The European
 
Commission fined UBS EUR
172
m.
UBS is appealing the
 
amount of the fine.
With respect
 
to additional
 
matters and
 
jurisdictions not
 
encompassed by
 
the settlements and
 
orders referred
 
to above,
our balance
 
sheet at
 
31 December
 
2022
 
reflected a provision
 
in an
 
amount that
 
UBS believes
 
to be
 
appropriate under
the applicable accounting standard.
 
As in the case of other matters for which we have
 
established provisions, the
 
future
outflow
 
of
 
resources
 
in
 
respect
 
of
 
such
 
matters
 
cannot
 
be
 
determined
 
with
 
certainty
 
based
 
on
 
currently
 
available
information and accordingly may
 
ultimately prove to be
 
substantially greater (or may
 
be less) than the provision
 
that we
have recognized.
6. Swiss retrocessions
The Federal Supreme Court
 
of Switzerland ruled
 
in 2012, in
 
a test case against UBS, that distribution
 
fees paid to a firm
for distributing third-party and intra-group investment funds and structured products
 
must be disclosed and surrendered
to clients who have entered
 
into a discretionary
 
mandate agreement with
 
the firm, absent
 
a valid waiver.
 
FINMA issued
a supervisory note
 
to all Swiss
 
banks in response
 
to the Supreme
 
Court decision. UBS
 
has met the
 
FINMA requirements
and has notified all potentially affected
 
clients.
The Supreme Court decision
 
has resulted, and continues to result, in a number of
 
client requests for UBS to disclose and
potentially
 
surrender
 
retrocessions.
 
Client
 
requests
 
are
 
assessed
 
on
 
a
 
case-by-case
 
basis.
 
Considerations
 
taken
 
into
account when assessing
 
these cases include, among other things, the
 
existence of a discretionary mandate and whether
or not the client documentation
 
contained a valid waiver with respect
 
to distribution fees.
Our
 
balance
 
sheet
 
at
 
31 December
 
2022
 
reflected a
 
provision
 
with
 
respect
 
to
 
matters
 
described
 
in
 
this
 
item
 
6
 
in
 
an
amount that UBS believes
 
to be appropriate under the
 
applicable accounting standard. The
 
ultimate exposure will depend
on client requests and the resolution thereof, factors
 
that are difficult to predict
 
and assess. Hence, as in the case of other
matters for which
 
we have established
 
provisions, the
 
future outflow of
 
resources in respect
 
of such
 
matters cannot be
determined
 
with
 
certainty
 
based
 
on
 
currently
 
available
 
information
 
and
 
accordingly
 
may
 
ultimately
 
prove
 
to
 
be
substantially greater (or may be less) than
 
the provision that we have recognized.
7. Communications recordkeeping
The SEC
 
and CFTC
 
conducted investigations
 
of UBS
 
and other
 
financial institutions
 
regarding
 
compliance with
 
records
preservation
 
requirements
 
relating
 
to
 
business
 
communications
 
sent
 
over
 
unapproved
 
electronic
 
messaging
 
channels.
UBS
 
cooperated
 
with
 
the
 
investigations,
 
and,
 
in
 
September
 
2022,
 
UBS
 
agreed
 
to
 
pay
 
civil
 
monetary
 
penalties
 
of
USD
125
m to the SEC and USD
75
m to the CFTC to resolve these matters.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
302
 
 
Note 18
 
Other liabilities
 
a) Other financial liabilities
 
measured at amortized cost
USD m
31.12.22
31.12.21
Other accrued expenses
1,760
1,876
Accrued interest expenses
1,949
1,094
Settlement and clearing accounts
1,075
1,304
Lease liabilities
3,334
3,558
Other
1,457
1,167
Total other financial liabilities
 
measured at amortized cost
9,575
9,001
 
b) Other financial liabilities
 
designated at fair value
USD m
31.12.22
31.12.21
Financial liabilities related to unit-linked investment
 
contracts
13,221
21,466
Securities financing transactions
15,333
6,377
Over-the-counter debt instruments and other
1,684
2,231
Total other financial liabilities designated
 
at fair value
30,237
30,074
 
c) Other non-financial liabilities
 
USD m
31.12.22
31.12.21
Compensation related liabilities
6,822
7,257
 
of which: Deferred Contingent Capital Plan
1,614
1,628
 
of which: financial advisor compensation plans
1,463
1,512
 
of which: other compensation plans
2,680
2,846
 
of which: net defined benefit liability
469
633
 
of which: other compensation-related liabilities
1
596
638
Current tax liabilities
1,071
1,398
Deferred tax liabilities
236
300
VAT,
 
withholding tax and other tax payables
592
590
Deferred income
235
240
Liabilities of disposal group held for sale
2
1,298
Other
84
68
Total other non-financial
 
liabilities
9,040
11,151
1 Includes liabilities for payroll
 
taxes and untaken
 
vacation.
 
2 Refer to Note 29 for
 
more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
303
 
Additional information
Note 19
 
Expected credit loss measurement
 
 
a) Expected credit losses in the period
Total
 
net credit loss expenses
 
were USD
29
m in 2022, reflecting
 
net credit loss expenses
 
of USD
29
m related to stage 1
and 2 positions and USD
0
m net credit loss expenses related to credit-impaired
 
(stage 3) positions.
Stage 1
 
and
 
2
 
expected
 
credit
 
loss
 
(ECL)
 
expenses
 
of
 
USD
29
m
 
include
 
USD
123
m
 
expenses
 
related
 
to
 
scenario
 
and
parameter updates
 
and USD
13
m related to
 
other book quality and
 
size changes, partly offset
 
by USD
77
m post-model
adjustment (PMA) releases and
 
USD
30
m releases related to model changes. Lending to corporate clients not secured
 
by
mortgages contributed USD
21
m, mainly driven by scenario effects related to the
 
downward revision of GDP and
 
higher
interest rate
 
assumptions
 
in the
 
newly
 
introduced
stagflationary
 
geopolitical
 
crisis
 
scenario
 
(SGC).
 
Lending
 
secured
 
by
mortgages
 
contributed
 
USD
 
16
m
 
in
 
expenses
,
 
mainly
 
driven
 
by
 
scenario
 
effects
 
related
 
to
 
higher
 
interest
 
rate
assumptions,
 
especially from the SGC, and adverse house price assumptions
 
from both applied downside scenarios.
 
This
was partly offset by releases from other lending
 
of USD
9
m.
›
 
Refer to Note 19b
 
for more information
 
regarding changes
 
to ECL models,
 
scenarios, scenario
 
weights and the
 
post-model
adjustment and to
 
Note 19c
 
for more information
 
regarding the development
 
of ECL allowances
 
and provisions
Stage 3 net expenses of USD
0
m were recognized across
 
a number of
 
defaulted positions, with net expenses of
 
USD
12
m
in Personal
 
and Corporate
 
Banking
 
and USD
5
m in
 
Global Wealth
 
Management,
 
offset by
 
releases of
 
USD
18
m in
 
the
Investment Bank, including a USD
28
m release for a single airline-related counterparty, mainly due to improved cashflow
assumptions, and USD
10
m net expenses across a number of defaulted positions.
 
 
Credit loss expense
 
/ (release)
USD m
Global
 
Wealth
 
Management
Personal &
 
Corporate
 
Banking
Asset
Management
Investment
 
Bank
Group
 
Functions
Total
For the year ended
 
31.12.22
Stages 1 and 2
(5)
27
0
6
1
29
Stage 3
5
12
0
(18)
2
0
Total credit loss expense /
 
(release)
0
39
0
(12)
3
29
For the year ended
 
31.12.21
Stages 1 and 2
(28)
(62)
0
(34)
0
(123)
Stage 3
(1)
(24)
1
0
0
(25)
Total credit loss expense /
 
(release)
(29)
(86)
1
(34)
0
(148)
For the year ended
 
31.12.20
Stages 1 and 2
48
129
0
88
0
266
Stage 3
40
128
2
217
42
429
Total credit loss expense /
 
(release)
88
257
2
305
42
694
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
304
 
 
Note 19
 
Expected credit loss measurement (continued)
 
b) Changes to ECL models,
 
scenarios, scenario
 
weights and key inputs
 
Refer
 
to
 
Note 1a for
 
information about
 
the
 
principles governing
 
expected
 
credit
 
loss (ECL)
 
models, scenarios,
 
scenario
weights and key inputs
 
applied.
 
Governance
Comprehensive cross-functional
 
and cross-divisional
 
governance processes
 
are in
 
place and
 
are used to
 
discuss and
 
approve
scenario updates and
 
weights, to
 
assess whether significant increases
 
in credit
 
risk resulted in
 
stage transfers, to
 
review
model outputs and to reach
 
conclusions regarding
 
post-model adjustments.
 
Model changes
During 2022, the model review and enhancement process led to adjustments
 
of the probability of default (PD), loss given
default (LGD), and
 
credit conversion factor
 
(CCF) models, resulting
 
in a USD
30
m decrease in
 
ECL allowances.
 
This includes
a
 
decrease of
 
USD
19
m
 
in Global
 
Wealth Management
 
affecting loans
 
to
 
financial advisors and
 
specialized US
 
lending
portfolios and
 
an USD
11
m decrease
 
in Personal
 
& Corporate
 
Banking
 
related to
 
lending to
large corporate clients
 
and
financial intermediaries
 
& hedge funds
.
 
Scenario and key input
 
updates
During 2022, the scenarios
 
and related macroeconomic factors were updated
 
from those applied
 
at the end of
 
2021 by
considering the
 
prevailing economic
 
and
 
political conditions
 
and
 
uncertainty. The review
 
focused
 
on events
 
that
 
significantly
changed the
 
economic
 
outlook during
 
the year:
 
the Russia–Ukraine
 
war, with the subsequent
 
effect on
 
energy markets,
 
the
inflation outlook and economic growth in Europe, and rising global interest rates due to central banks’ adoption of more
restrictive monetary
 
policies.
Baseline scenario
: the
 
projections
 
of the
 
baseline scenario,
 
which are
 
aligned to
 
the economic
 
and market
 
assumptions
 
used
for UBS’s
 
business
 
planning
 
purposes,
 
are broadly
 
in line
 
with external
 
data, such
 
as that
 
from Bloomberg
 
Consensus,
 
Oxford
Economics and the International
 
Monetary Fund
 
World Economic Outlook.
 
The expectation for 2023 is
 
that global growth
stalls under
 
the weight
 
of monetary
 
policy
 
tightening,
 
and continued
 
pressure
 
on real
 
purchasing
 
power
 
due to
 
high inflation
– further fueled
 
in Europe
 
by the energy
 
crisis and
 
a lack of
 
labor supply
 
– even though
 
unemployment rates
 
are forecast to
be higher than
 
in 2022 and
 
an energy crisis
 
in Europe
 
seems likely to
 
be averted.
 
Interest
 
rates are
 
expected to
 
remain high,
given the persistence of inflationary
 
trends, leading to a less
 
optimistic outlook for global
 
house prices, which is cushioned
in Switzerland by continued
 
strong demand.
 
Global crisis scenario:
The first hypothetical
 
downside scenario, the global crisis
 
scenario, is aligned with the Group’s
 
2022
binding stress scenario and was
 
updated in 2022
 
to reflect expected risks, resulting in
 
minimal changes. It assumes that,
while the
 
global economy
 
has returned to
 
pre-pandemic levels
 
and the immediate
 
risks
 
from COVID-19
 
have decreased,
 
the
associated disruptions
 
and
 
the
 
consequences of
 
the unprecedented
 
monetary and
 
fiscal stimulus
 
measures will
 
remain
critical. Concerns regarding
 
the sustainability
 
of public debt, following the marked deterioration
 
of fiscal positions, lead to
a loss
 
of confidence and
 
market turbulence, while protectionism results in
 
a decrease
 
in global
 
trade. Governments and
central banks have limited scope
 
to support the economies,
 
and interest rate levels remain moderate. As a
 
consequence,
China
 
suffers a
 
hard landing
 
which,
 
combined with
 
political, solvency and
 
liquidity concerns,
 
affects emerging
 
markets
significantly. A
 
spillover
 
effect
 
leads
 
to
 
a
 
contraction of
 
the
 
Eurozone,
 
Swiss
 
and
 
US
 
economies,
 
as
 
global
 
demand
 
is
significantly affected.
 
Given the
 
severity of the
 
macroeconomic
 
impact, unemployment
 
rates rise to
 
historical highs
 
and real
estate sectors contract
 
sharply.
Stagflationary
 
geopolitical
 
crisis
 
scenario:
The
 
second
 
downside
 
scenario
 
was
 
changed
 
during
 
2022.
 
In
 
light
 
of
 
the
developments caused by Russia’s invasion of Ukraine, the
mild global interest rate steepening scenario
 
was replaced by a
severe global
 
interest rate
 
steepening scenario
 
in the
 
first quarter of
 
2022, as
 
the beginning of
 
the Russia–Ukraine war
increased fears of
 
higher inflation and a corresponding
 
reaction by monetary
 
authorities. In
 
the second quarter of the
 
year,
the progression
 
of the war
 
and the enforcement
 
of sanctions
 
regimes led
 
to a redesign
 
of the scenario.
 
The resulting
severe
Russia–Ukraine conflict scenario
 
has similar dynamics as the severe global interest rate
 
steepening scenario, but addressed
specifically the prospect
 
of rising
 
energy costs, especially
 
in Europe, with
 
the consequences
 
of lower
 
growth and higher
inflation rates.
 
In the
 
fourth quarter of
 
2022, UBS
 
developed a new
stagflationary geopolitical
 
crisis scenario
 
(SGC)
 
and
included this new scenario in the ECL
 
calculation for year-end
 
2022 in lieu of
 
the
severe Russia–Ukraine conflict scenario
.
While
 
the SGC scenario addresses similar risks as the
severe Russia–Ukraine conflict
 
scenario
, it also covers additional and
broader risks and
 
therefore assumes
 
more severe
 
shocks. Geopolitical
 
tensions cause
 
an escalation
 
of security concerns
 
and
undermine globalization. The
 
ensuing economic regionalization leads
 
to a
 
surge in
 
global commodity prices
 
and further
disruptions of
 
supply chains
 
and raises
 
the specter
 
of prolonged
 
stagflation.
 
The severe
 
interest
 
rate and
 
adverse
 
house price
assumptions in
 
the SGC scenario
 
had a substantive
 
impact on model-based
 
ECL allowances
 
for loans
 
secured by
 
mortgages
in Switzerland and
 
the US. These
 
effects were
 
partly offset
 
by PMA releases
 
related to loans
 
secured by mortgages.
 
Refer to
the section below
 
on “Scenario weights
 
and post-model adjustments”
 
for more details.
Asset price
 
inflation scenario:
The upside
 
scenario is
 
based on
 
positive developments,
 
such as
 
an easing
 
of
 
geopolitical
tensions across the
 
globe and
 
a rebound
 
in Chinese economic
 
growth. A
 
combination of
 
lower energy and
 
commodity
prices,
 
effective monetary
 
policies
 
and
 
easing
 
supply
 
chain
 
disruptions helps
 
reduce
 
inflation.
 
Improved
 
consumer and
business sentiment lead to an economic rebound with central banks able to normalize interest rates; asset prices increase
significantly.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
305
 
 
Note 19
 
Expected credit loss measurement (continued)
The table below details the key assumptions
 
for the four scenarios applied
 
as of 31 December 2022.
Scenario weights and post
 
-model adjustments
Due
 
to the
 
less positive
 
outlook
 
compared
 
with the
 
assessment on
 
31 December
 
2021, the
 
scenario weights
 
changed
during 2022. The upside scenario was allocated
 
a
0
% probability, and the previous
5
% weight was added to the
baseline
scenario
, now
 
set at
60
%. Following
 
the introduction
 
of the
 
SGC, which
 
was deemed
 
to have
 
a higher
 
probability of
occurring than
 
the
global crisis
 
scenario
, the weights
 
were rebalanced.
 
The SGC
 
has a
 
weight of
25
% (compared
 
with
10
% for the
mild global
 
interest rate steepening
 
scenario
 
used as
 
of 31 December
 
2021) and
 
the weight
 
of the
global
crisis scenario
 
was reduced to
15
% (from
30
% as of 31 December
 
2021). The weights are also shown in the
 
table below.
The
 
scenarios
 
and
 
weight
 
allocation
 
were
 
established
 
in
 
line
 
with
 
the
 
general
 
market
 
sentiment
 
that
 
the
 
short-term
outlook
 
is subdued
 
and a
 
recession in
 
major markets
 
is a
 
strong
 
probability. The
 
downside
 
risks in
 
relation to
 
inflation
and monetary policy,
 
as well as
 
the availability and
 
price of energy,
 
mainly in Europe,
 
are better reflected
 
in our
 
models
compared with the uncertain developments
 
caused by COVID-19 in recent
 
years.
 
However, unquantifiable risks continue
 
to be relevant, as the
 
pandemic has not
 
been overcome and the world
 
may face
new disruptions.
 
Furthermore, the geopolitical
 
situation worsened
 
during 2022,
 
and the impact on
 
the world
 
economy
from escalations with unforeseeable
 
consequences could be severe. In the near term, this
 
uncertainty relates primarily to
the development
 
of the
 
Russia–Ukraine
 
war. Models,
 
which are
 
based on
 
supportable statistical
 
information
 
from past
experiences regarding interdependencies of
 
macroeconomic factors and their
 
implications for credit
 
risk portfolios, cannot
comprehensively reflect
 
such extraordinary
 
events, such
 
as a
 
pandemic or
 
a fundamental
 
change
 
in the
 
world political
order. Rather than
 
creating multiple additional scenarios
 
to attempt gauging these
 
risks and applying
 
model parameters
that lack supportable information and
 
cannot be robustly validated, management
 
continued to
 
also apply PMAs.
 
These PMA took into account that more of the downside risks were modeled in 2022, particularly for lending
 
secured by
mortgages.
 
The
 
PMA
 
amounted
 
to
 
USD
131
m
 
as
 
of
 
31 December
 
2022
 
(31 December
 
2021:
 
USD
224
m).
 
These
remaining PMA
 
for uncertainties
 
on potentially
 
unmodeled risk
 
almost entirely
 
relate
 
to corporate
 
lending portfolios
 
in
Personal & Corporate Banking
 
and the Investment Bank.
 
Economic scenarios and weights applied
Assigned weights in %
ECL scenario
31.12.22
31.12.21
Asset price inflation
0.0
5.0
Baseline
60.0
55.0
Mild global interest rate steepening
 
0.0
10.0
Stagflationary geopolitical crisis
25.0
0.0
Global crisis
 
15.0
30.0
 
Scenario assumptions
One year
 
Three years cumulative
 
31.12.22
Asset price
inflation
Baseline
Stagflationary
geopolitical
crisis
 
Global
crisis
 
Asset price
inflation
Baseline
Stagflationary
geopolitical
crisis
 
Global
crisis
 
Real GDP growth (% change)
United States
4.0
(0.3)
(4.8)
(6.4)
9.1
3.2
(4.4)
(1.8)
Eurozone
3.0
0.6
(5.6)
(8.5)
6.2
2.5
(5.7)
(8.3)
Switzerland
3.0
0.7
(4.8)
(6.7)
6.6
3.5
(4.9)
(3.7)
Consumer price index (% change)
 
United States
2.5
2.6
10.0
(0.5)
8.1
6.5
15.8
1.2
Eurozone
2.3
5.0
9.6
(0.7)
7.4
9.6
14.8
(0.7)
Switzerland
2.1
1.6
5.8
(1.8)
6.2
3.9
10.7
(1.6)
Unemployment rate (end-of
 
-period level, %)
United States
3.0
3.9
9.2
10.0
3.0
5.3
11.8
9.4
Eurozone
6.0
7.0
10.9
11.9
6.0
7.1
12.2
13.0
Switzerland
1.7
2.3
4.3
4.4
1.5
2.6
5.1
4.9
Fixed income: 10-year government
 
bonds (change in yields, basis points)
USD
25.0
(5.6)
235.0
(326.0)
70.0
(13.2)
205.0
(291.1)
EUR
20.0
47.8
250.0
(270.6)
57.5
44.7
220.0
(246.5)
CHF
25.0
45.7
220.0
(209.7)
62.5
57.0
205.0
(159.6)
Equity indices (% change)
S&P 500
20.0
7.4
(51.5)
(50.0)
51.7
22.8
(45.6)
(27.9)
EuroStoxx 50
17.0
17.2
(51.6)
(50.0)
42.9
29.2
(47.2)
(39.3)
SPI
14.0
5.6
(51.6)
(46.0)
37.9
19.3
(47.2)
(32.9)
Swiss real estate (% change)
Single-Family Homes
 
6.6
1.1
(16.7)
(19.9)
14.0
2.3
(32.9)
(23.9)
Other real estate (% change)
United States (S&P / Case–Shiller)
7.8
(4.5)
(12.8)
(19.3)
19.1
(0.6)
(35.8)
(32.7)
Eurozone (House Price Index)
7.0
(2.7)
(8.4)
(8.9)
15.4
2.0
(14.7)
(17.5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
306
 
 
Note 19
 
Expected credit loss measurement (continued)
Scenario assumptions
One year
 
Three years cumulative
 
31.12.21
Asset price
inflation
Baseline
Mild global
interest rate
steepening
 
Global crisis
 
Asset price
inflation
Baseline
Mild global
interest rate
steepening
 
Global crisis
 
Real GDP growth (% change)
United States
9.1
4.4
(0.1)
(5.9)
17.8
10.1
1.8
(3.8)
Eurozone
9.4
3.9
(0.1)
(8.7)
17.3
7.5
0.9
(10.3)
Switzerland
5.5
2.4
(0.9)
(6.6)
13.1
5.8
(0.1)
(5.7)
Consumer price index (% change)
United States
3.1
2.2
5.7
(1.2)
9.5
6.3
13.0
0.4
Eurozone
2.3
1.4
4.2
(1.3)
8.0
4.8
10.4
(1.7)
Switzerland
1.8
0.3
3.5
(1.8)
6.1
1.7
9.0
(1.6)
Unemployment rate (end-of
 
-period level, %)
United States
3.0
3.9
6.1
10.9
3.0
3.5
7.2
10.8
Eurozone
6.2
7.4
8.7
12.9
6.0
7.2
9.1
15.1
Switzerland
2.3
2.5
3.4
5.2
1.6
2.3
4.2
5.9
Fixed income: 10-year government
 
bonds (change in yields, basis points)
USD
50.0
16.5
259.2
(50.0)
170.0
41.2
329.2
(15.0)
EUR
40.0
11.1
283.8
(35.0)
140.0
34.9
349.3
(25.0)
CHF
50.0
12.1
245.5
(70.0)
150.0
34.4
307.3
(35.0)
Equity indices (% change)
S&P 500
12.0
14.1
(27.0)
(50.2)
35.5
24.7
(21.8)
(40.1)
EuroStoxx 50
16.0
12.3
(23.4)
(57.6)
41.6
20.7
(19.9)
(50.4)
SPI
14.0
12.1
(22.9)
(53.6)
37.9
19.1
(19.6)
(44.2)
Swiss real estate (% change)
Single-Family Homes
 
5.1
4.4
(4.3)
(17.0)
15.5
7.4
(8.8)
(30.0)
Other real estate (% change)
United States (S&P / Case–Shiller)
10.0
3.5
(2.3)
(9.5)
21.7
7.1
(8.7)
(26.3)
Eurozone (House Price Index)
8.4
5.1
(4.0)
(5.4)
17.8
9.6
(7.6)
(10.8)
 
c) Development of ECL allowances
 
and provisions
 
The ECL allowances and provisions
 
recognized in the period
 
are impacted by a variety of factors,
 
such as:
–
 
the effect of selecting and
 
updating forward-looking scenarios
 
and the respective weights;
–
 
origination of new instruments during
 
the period;
 
–
 
the effect
 
of passage of
 
time (lower residual
 
lifetime PD and the
 
effect of discount
 
unwind) as the
 
ECL on an
 
instrument
for the remaining lifetime decreases (all other
 
factors remaining the same);
–
 
derecognition of instruments in the
 
period;
–
 
change in individual asset quality of instruments;
–
 
movements from
 
a
 
maximum
 
12-month
 
ECL
 
to
 
the
 
recognition
 
of
 
lifetime ECL
 
(and
 
vice versa)
 
following
 
transfers
between stages 1 and 2;
 
–
 
movements from stages 1 and 2 to stage 3 (credit-impaired status) when default has become certain and PD increases
to 100% (or vice versa);
–
 
changes in models or updates
 
to model parameters;
–
 
write-off; and
–
 
foreign exchange translations for assets denominated
 
in foreign currencies.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
307
 
 
Note 19
 
Expected credit loss measurement (continued)
 
The
 
table
 
below
 
explains
 
the
 
changes
 
in
 
the
 
ECL
 
allowances
 
and
 
provisions
 
for
 
on-
 
and
 
off-balance
 
sheet
 
financial
instruments and credit
 
lines in scope of ECL
 
requirements
 
between the beginning
 
and the end of the
 
period due
 
to the
factors listed above.
 
Development of ECL allowances
 
and provisions
USD m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2021
(1,165)
(282)
(220)
(662)
Net movement from new and derecognized
 
transactions
1
(7)
(21)
16
(2)
of which: Private clients with mortgages
(6)
(6)
0
0
of which: Real estate financing
(3)
(5)
2
0
of which: Large corporate clients
8
(1)
11
(2)
of which: SME clients
(1)
(1)
0
0
of which: Other
(6)
(8)
3
0
 
of which: Financial intermediaries and hedge
 
funds
0
(2)
2
0
 
of which: Loans to financial advisors
0
0
0
0
Remeasurements with stage transfers
2
(65)
20
(39)
(46)
of which: Private clients with mortgages
(10)
3
(12)
0
of which: Real estate financing
7
(1)
8
0
of which: Large corporate clients
(33)
16
(28)
(21)
of which: SME clients
(23)
2
(2)
(22)
of which: Other
(6)
1
(4)
(3)
 
of which: Financial intermediaries and hedge
 
funds
0
0
0
0
 
of which: Loans to financial advisors
1
2
(1)
0
Remeasurements without
 
stage transfers
3
13
(8)
(27)
48
of which: Private clients with mortgages
(12)
5
(18)
1
of which: Real estate financing
13
3
10
0
of which: Large corporate clients
32
(11)
2
41
of which: SME clients
(6)
(10)
(9)
14
of which: Other
(15)
5
(12)
(8)
 
of which: Sovereigns
(8)
0
(8)
0
 
of which: Loans to financial advisors
(3)
3
(1)
(6)
Model changes
4
30
29
1
0
Movements with profit or loss impact
5
(29)
20
(49)
0
Movements without profit or loss impact
 
(write-off,
 
FX and other)
6
104
3
1
99
Balance as of 31 December 2022
(1,091)
(259)
(267)
(564)
1 Represents
 
the increase
 
and decrease
 
in allowances
 
and provisions
 
resulting from
 
financial instruments
 
(including guarantee
 
s
 
and facilities)
 
that were
 
newly originated,
 
purchased or
 
renewed and
 
from the
 
final
derecognition of loans or facilities on their maturity date or earlier.
 
2 Represents the remeasurement between 12
 
-month and lifetime ECL due to stage transfers.
 
3 Represents the change in allowances and provisions
related to
 
changes
 
in model
 
inputs
 
or assumptions,
 
including
 
changes
 
in forward
 
-looking
 
macroeconomic
 
conditions,
 
changes
 
in the
 
exposure
 
profile,
 
PD and
 
LGD
 
changes,
 
and
 
unwinding
 
of the
 
time
 
value.
 
4 Represents the change in the allowances
 
and provisions related to changes
 
in models and methodologies.
 
5 Includes ECL movements
 
from new and derecognized transactions,
 
remeasurement changes,
 
model and
methodology changes.
 
6 Represents
 
the decrease
 
in allowances
 
and provisions
 
resulting from
 
write-offs of
 
the ECL
 
allowance
 
against the
 
gross carrying
 
amount when
 
all or
 
part of
 
a financial
 
asset is
 
deemed
uncollectible or forgiven and
 
movements in foreign exchange
 
rates.
 
Movements with profit
 
or loss
 
impact:
Stages 1
 
and 2 ECL
 
allowances and provisions increased
 
on a net
 
basis by
 
USD
29
m:
 
–
 
Net movement
 
from new
 
and derecognized
 
transactions
 
includes USD
21
m stage 1
 
expenses and
 
USD
16
m stage 2
releases: Stage 1 expenses are primarily driven by new loans secured by real estate. The residual
 
effect is spread across
lending segments. Stage 2
 
releases are largely driven by redemption of
 
corporate loans in the
 
Investment Bank.
–
 
Remeasurements with
 
stage transfers
 
include USD
20
m releases
 
in stage
 
1 and
 
USD
39
m expenses
 
in stage
 
2.
 
This
mainly includes
 
the transfer of
 
a few
 
large corporate
 
lending
 
transactions in
 
the Investment
 
Bank
 
from stage
 
1 to
 
2
(i.e., releases in
 
stage 1
 
and related but
 
generally higher
 
expenses in stage
 
2), driven by
 
rating downgrades and scenario
effects.
–
 
Remeasurements
 
without
 
stage
 
transfers
 
include
 
stage
 
1
 
expenses
 
of
 
USD
8
m
 
and stage
 
2 expenses
 
of
 
USD
27
m.
These expenses of
 
USD
35
m relate
 
to large and
 
SME corporate lending
 
(USD
28
m), substantially
 
due to scenario
 
effects,
and to a single sovereign
 
counterparty (USD
8
m).
 
–
 
Model changes: refer to Note
 
19b for more information.
Movements without profit or loss impact:
Stage 3 allowances decreased by USD
99
m almost entirely due to write-offs of
USD
95
m.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
308
 
 
Note 19
 
Expected credit loss measurement (continued)
 
Development of ECL allowances
 
and provisions
USD m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2020
(1,468)
(306)
(333)
(829)
Net movement from new and derecognized
 
transactions
1
(59)
(72)
13
0
of which: Private clients with mortgages
(7)
(10)
3
0
of which: Real estate financing
(7)
(11)
4
0
of which: Large corporate clients
(13)
(21)
7
0
of which: SME clients
(8)
(8)
0
0
of which: Other
(24)
(23)
(2)
0
 
of which: Financial intermediaries and hedge
 
funds
(21)
(18)
(4)
0
 
of which: Loans to financial advisors
0
(1)
1
0
Remeasurements with stage transfers
2
(40)
8
0
(49)
of which: Private clients with mortgages
(9)
4
(13)
0
of which: Real estate financing
(3)
1
(4)
0
of which: Large corporate clients
2
(2)
12
(8)
of which: SME clients
(27)
5
4
(36)
of which: Other
(3)
0
2
(4)
 
of which: Financial intermediaries and hedge
 
funds
2
(1)
3
0
 
of which: Loans to financial advisors
0
1
(1)
0
Remeasurements without
 
stage transfers
3
203
55
74
74
of which: Private clients with mortgages
33
8
26
(1)
of which: Real estate financing
30
13
13
3
of which: Large corporate clients
44
5
21
17
of which: SME clients
53
(1)
1
53
of which: Other
44
29
14
2
 
of which: Financial intermediaries and hedge
 
funds
27
15
12
0
 
of which: Loans to financial advisors
6
8
1
(3)
Model changes
4
45
29
16
0
Movements with profit or loss impact
5
148
19
104
25
Movements without profit or loss impact
 
(write-off, FX
 
and other)
6
154
5
9
141
Balance as of 31 December 2021
(1,165)
(282)
(220)
(662)
1 Represents
 
the increase
 
and decrease
 
in allowances
 
and provisions
 
resulting from
 
financial instruments
 
(including guarantee
 
s
 
and facilities)
 
that were
 
newly originated,
 
purchased or
 
renewed and
 
from the
 
final
derecognition of loans or facilities on their maturity date or earlier.
 
2 Represents the remeasurement between 12
 
-month and lifetime ECL due to stage transfers.
 
3 Represents the change in allowances and provisions
related to
 
changes
 
in model
 
inputs
 
or assumptions,
 
including
 
changes
 
in forward
 
-looking
 
macroeconomic
 
conditions,
 
changes
 
in the
 
exposure
 
profile,
 
PD and
 
LGD
 
changes,
 
and
 
unwinding
 
of the
 
time
 
value.
 
4 Represents the change in the allowances
 
and provisions related to changes
 
in models and methodologies.
 
5 Includes ECL movements
 
from new and derecognized
 
transactions, remeasurement
 
changes, model and
methodology changes.
 
6 Represents
 
the decrease
 
in allowa
 
nces and
 
provisions resulting
 
from write
 
-offs of
 
the ECL
 
allowance
 
against the
 
gross carrying
 
amount when
 
all or
 
part of
 
a financial
 
asset is
 
deemed
uncollectible or forgiven and
 
movements in foreign exchange
 
rates.
 
As explained
 
in Note 1a,
 
the assessment
 
of a significant
 
increase
 
in credit
 
risk (SICR)
 
considers a
 
number
 
of qualitative
and
 
quantitative factors
 
to determine
 
whether a
 
stage transfer
 
between
 
stage 1
 
and stage 2
 
is required,
 
although the
primary assessment considers changes in PD based
 
on rating analyses and economic
 
outlook. Additionally,
 
UBS takes into
consideration counterparties
 
that have
 
moved to
 
a credit
 
watch list
 
and those
 
with payments
 
that are
 
at least
 
30 days
past due.
 
ECL stage 2 (“significant deterioration
 
in credit risk”) allowances / provisions
 
as of 31 December 2022 – classification by trigger
USD m
Stage 2
of which:
PD layer
of which:
watch list
of which:
≥30 days
 
past due
On-
 
and off-balance sheet
 
(267)
(196)
(21)
(50)
of which: Private clients with mortgages
(107)
(83)
0
(25)
of which: Real estate financing
(23)
(18)
0
(5)
of which: Large corporate clients
(65)
(51)
(13)
0
of which: SME clients
(37)
(22)
(7)
(7)
of which: Financial intermediaries and hedge funds
(17)
(17)
0
0
of which: Loans to financial advisors
(2)
0
0
(2)
of which: Credit cards
(12)
0
0
(12)
of which: Other
(5)
(5)
0
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
309
 
 
Note 19
 
Expected credit loss measurement (continued)
 
d) Maximum exposure to credit risk
The
 
tables
 
below
 
provide
 
the
 
Group’s
 
maximum
 
exposure
 
to
 
credit
 
risk
 
for
 
financial
 
instruments
 
subject
 
to
 
ECL
requirements
 
and
 
the
 
respective
 
collateral
 
and
 
other
 
credit
 
enhancements
 
mitigating
 
credit
 
risk
 
for
 
these
 
classes
 
of
financial instruments.
 
The maximum exposure
 
to credit risk
 
includes the
 
carrying amounts
 
of financial instruments
 
recognized on
 
the balance
sheet subject to credit risk
 
and the notional amounts for off-balance sheet arrangements. Where information is available,
collateral is presented
 
at fair value. For other collateral,
 
such as real estate,
 
a reasonable alternative
 
value is used. Credit
enhancements,
 
such
 
as
 
credit
 
derivative
 
contracts
 
and
 
guarantees,
 
are
 
included
 
at
 
their
 
notional
 
amounts.
 
Both
 
are
capped
 
at the
 
maximum exposure
 
to credit
 
risk for
 
which they
 
serve as
 
security. The
 
“Risk
 
management and
 
control”
section of this
 
report describes
 
management’s view
 
of credit
 
risk and
 
the related exposures,
 
which can differ
 
in certain
respects from the requirements of International
 
Financial Reporting Standards
 
(IFRS).
 
Maximum exposure to credit
 
risk
 
31.12.22
Collateral
1,2
Credit enhancements
1
Exposure to
credit risk
after collateral
and credit
enhancements
USD bn
Maximum
exposure to
credit risk
Cash
collateral
received
Collateralized
by equity
 
and debt
instruments
 
Secured by
real estate
Other
collateral
3
Netting
Credit
derivative
contracts
Guarantees
 
Financial assets measured at
 
amortized cost on the balance sheet
Cash and balances at central banks
169.4
169.4
Loans and advances to banks
4
14.8
0.0
0.1
14.7
Receivables from securities financing transactions
measured at amortized cost
67.8
0.0
64.5
2.4
0.9
Cash collateral receivables on derivative
 
instruments
5,6
35.0
22.9
12.1
Loans and advances to customers
387.2
33.6
115.9
197.8
19.6
3.0
17.3
Other financial assets measured at amortized cost
53.3
0.1
0.5
0.0
1.3
51.3
Total financial assets
 
measured at amortized cost
727.6
33.7
181.0
197.9
23.4
22.9
0.0
3.0
265.8
Financial assets measured at
 
fair value
 
through other comprehensive income – debt
2.2
2.2
Total maximum exposure to
 
credit risk
 
reflected on the balance sheet within
 
the scope of ECL
729.8
33.7
181.0
197.9
23.4
22.9
0.0
3.0
268.0
Guarantees
7
22.1
1.2
9.3
0.1
2.0
1.8
7.7
Loan commitments
7
39.9
0.2
3.1
1.3
6.5
0.1
1.0
27.8
Forward starting transactions,
 
reverse repurchase
and securities borrowing agreements
3.8
3.8
0.0
Committed unconditionally revocable credit lines
41.4
0.2
8.2
6.0
6.2
0.5
20.2
Total maximum exposure to
 
credit risk not
 
reflected on the balance sheet within
 
the scope of ECL
107.2
1.6
24.4
7.5
14.7
0.0
0.1
3.3
55.7
31.12.21
Collateral
1,2
Credit enhancements
1
Exposure to
credit risk
after collateral
and credit
enhancements
USD bn
Maximum
exposure to
credit risk
Cash
collateral
received
Collateralized
by equity
 
and debt
instruments
 
Secured by
real estate
Other
collateral
3
Netting
Credit
derivative
contracts
Guarantees
 
Financial assets measured at
 
amortized cost on the balance sheet
Cash and balances at central banks
192.8
192.8
Loans and advances to banks
4
15.5
0.1
0.1
15.3
Receivables from securities financing transactions
measured at amortized cost
75.0
0.0
68.0
6.9
0.0
Cash collateral receivables on derivative
 
instruments
5,6
30.5
18.4
12.1
Loans and advances to customers
397.8
37.5
128.7
191.3
20.2
4.0
16.2
Other financial assets measured at amortized cost
26.2
0.2
0.1
0.0
1.3
24.6
Total financial assets
 
measured at amortized cost
737.8
37.7
196.9
191.3
28.4
18.4
0.0
4.0
261.0
Financial assets measured at
 
fair value
 
through other comprehensive income – debt
8.8
8.8
Total maximum exposure to
 
credit risk
 
reflected on the balance sheet within
 
the scope of ECL
746.6
37.7
196.9
191.3
28.4
18.4
0.0
4.0
269.8
Guarantees
7
20.9
1.3
6.5
0.2
2.5
2.3
8.1
Loan commitments
7
39.4
0.5
4.0
2.4
7.3
0.3
1.7
23.1
Forward starting transactions,
 
reverse repurchase
and securities borrowing agreements
1.4
1.4
0.0
Committed unconditionally revocable credit lines
40.7
0.3
9.0
6.2
3.9
0.5
20.9
Total maximum exposure to
 
credit risk not
 
reflected on the balance sheet within
 
the scope of ECL
102.5
2.2
20.9
8.7
13.7
0.0
0.3
4.5
52.1
1 Of which: USD
1,372
m for 31 December 2022 (31 December 2021: USD
1,443
m) relates to total credit-impaired financial assets measured
 
at amortized cost and USD
113
m for 31 December 2022 (31 December
 
2021:
USD
130
m) to total off-balance sheet financial instruments and credit lines for credit-impaired positions.
 
2 Collateral arrangements generally incorporate
 
a range of collateral, including cash, equity and debt instruments,
real estate and other collateral. UBS
 
applies a risk-based approach
 
that generally
 
prioritizes collateral according
 
to its liquidity profile.
 
3 Includes but is not limited to
 
life insurance contracts,
 
inventory,
 
mortgage loans,
gold and other commodities.
 
4 Loans and advances
 
to banks include amounts held with
 
third-party banks on
 
behalf of clients. The
 
credit risk associated with these
 
balances may be borne by those clients.
 
5 Included
within Cash collateral
 
receivables on derivative
 
instruments are
 
margin balances
 
due from exchanges
 
or clearing houses.
 
Some
 
of these margin
 
balances reflect
 
amounts transferred on
 
behalf of clients
 
who retain the
associated credit
 
risk.
 
6 The
 
amount shown
 
in the
 
“Netting” column
 
represents the
 
netting potential
 
not recognized
 
on the
 
balance sheet.
 
Refer to
 
Note 21
 
for more
 
information.
 
7 The
 
amount
 
shown in
 
the
“Guarantees” column includes
 
sub-participations.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
310
 
 
Note 19
 
Expected credit loss measurement (continued)
 
e) Financial assets subject to credit risk
 
by rating category
The table below
 
shows the
 
credit quality and
 
the maximum exposure
 
to credit risk
 
based
 
on the Group’s
 
internal credit
rating system and year-end stage classification. Under IFRS 9, the credit risk rating reflects the Group’s assessment of the
probability of default of individual counterparties,
 
prior to substitutions. The amounts presented are gross
 
of impairment
allowances.
›
 
Refer to the “Risk
 
management and
 
control” section of
 
this report for more
 
details regarding the
 
Group’s internal grading system
 
Financial assets subject to credit risk by
 
rating category
USD m
31.12.22
Rating category
1
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial assets measured at amortized
 
cost
Cash and balances at central banks
168,525
877
0
0
56
0
169,457
(12)
169,445
of which: stage 1
168,525
877
0
0
0
0
169,402
0
169,402
of which: stage 2
0
0
0
0
56
0
56
(12)
44
Loans and advances to banks
862
12,257
860
440
379
0
14,798
(6)
14,792
of which: stage 1
862
12,257
860
440
378
0
14,797
(5)
14,792
of which: stage 2
0
0
0
0
1
0
1
(1)
1
of which: stage 3
0
0
0
0
0
0
0
0
0
Receivables from securities
 
financing transactions measured at
amortized cost
27,158
15,860
8,870
15,207
721
0
67,816
(2)
67,814
of which: stage 1
27,158
15,860
8,870
15,207
721
0
67,816
(2)
67,814
Cash collateral receivables on
 
derivative instruments
10,613
12,977
7,138
4,157
147
0
35,033
0
35,032
of which: stage 1
10,613
12,977
7,138
4,157
147
0
35,033
0
35,032
Loans and advances to customers
6,491
214,473
68,356
74,732
21,939
2,012
388,003
(783)
387,220
of which: stage 1
6,491
212,980
66,114
68,034
16,605
0
370,224
(129)
370,095
of which: stage 2
0
1,493
2,242
6,698
5,334
0
15,767
(180)
15,587
of which: stage 3
0
0
0
0
0
2,012
2,012
(474)
1,538
Other financial assets measured at
 
amortized cost
29,011
16,632
447
6,600
450
210
53,350
(86)
53,264
of which: stage 1
29,011
16,630
427
6,317
336
0
52,721
(17)
52,704
of which: stage 2
0
2
20
283
114
0
419
(6)
413
of which: stage 3
0
0
0
0
0
210
210
(63)
147
Total financial assets
 
measured at amortized cost
242,660
273,076
85,671
101,136
23,693
2,222
728,457
(889)
727,568
On-balance sheet financial instruments
Financial assets measured at FVOCI
 
– debt instruments
1,307
840
0
92
0
0
2,239
0
2,239
Total on-balance
 
sheet financial instruments
243,966
273,916
85,671
101,228
23,693
2,222
730,696
(889)
729,807
Off-balance sheet positions subject to expected
 
credit loss by rating category
USD m
31.12.22
Rating category
1
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total off-
balance sheet
exposure
(maximum
exposure to
credit risk)
ECL provisions
Off-balance sheet financial instruments
Guarantees
 
7,252
5,961
4,772
3,049
1,025
108
22,167
(48)
of which: stage 1
7,252
5,917
3,812
2,229
596
0
19,805
(13)
of which: stage 2
0
44
960
821
429
0
2,254
(9)
of which: stage 3
0
0
0
0
0
108
108
(26)
Irrevocable loan commitments
1,770
14,912
6,986
10,097
6,107
124
39,996
(111)
of which: stage 1
1,770
14,789
6,818
9,625
4,529
0
37,531
(59)
of which: stage 2
0
123
168
472
1,578
0
2,341
(52)
of which: stage 3
0
0
0
0
0
124
124
0
Forward starting reverse repurchase
 
and securities borrowing agreements
2,781
2
11
1,007
0
0
3,801
0
Total off-balance sheet
 
financial instruments
11,803
20,874
11,769
14,153
7,132
233
65,964
(159)
Credit lines
Committed unconditionally revocable
 
credit lines
2,288
15,918
9,247
10,162
3,739
36
41,390
(40)
of which: stage 1
2,288
15,213
8,960
9,631
3,429
0
39,521
(32)
of which: stage 2
0
705
287
531
310
0
1,833
(8)
of which: stage 3
0
0
0
0
0
36
36
0
Irrevocable committed prolongation
 
of existing loans
7
1,939
1,489
868
392
2
4,696
(2)
of which: stage 1
7
1,938
1,411
864
380
0
4,600
(2)
of which: stage 2
0
1
78
4
11
0
94
0
of which: stage 3
0
0
0
0
0
2
2
0
Total credit lines
2,295
17,857
10,736
11,030
4,131
37
46,086
(42)
1 Refer to the “Internal UBS rating
 
scale and mapping of external
 
ratings” table in the “Risk
 
management and control”
 
section of this report for
 
more information on rating
 
categories.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
311
 
 
Note 19
 
Expected credit loss measurement (continued)
Financial assets subject to credit risk by
 
rating category
USD m
31.12.21
Rating category
1
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial assets measured at amortized
 
cost
Cash and balances at central banks
191,015
1,802
0
0
0
0
192,817
0
192,817
of which: stage 1
191,015
1,802
0
0
0
0
192,817
0
192,817
Loans and advances to banks
407
12,623
1,171
795
490
1
15,488
(8)
15,480
of which: stage 1
407
12,623
1,146
795
488
0
15,460
(7)
15,453
of which: stage 2
0
0
24
0
2
0
27
(1)
26
of which: stage 3
0
0
0
0
0
1
1
0
1
Receivables from securities
 
financing transactions
measured at amortized cost
34,386
11,267
10,483
17,440
1,439
0
75,014
(2)
75,012
of which: stage 1
34,386
11,267
10,483
17,440
1,439
0
75,014
(2)
75,012
Cash collateral receivables on
 
derivative instruments
7,466
13,476
5,878
3,647
47
0
30,514
0
30,514
of which: stage 1
7,466
13,476
5,878
3,647
47
0
30,514
0
30,514
Loans and advances to customers
5,295
232,233
67,620
69,892
21,423
2,148
398,611
(850)
397,761
of which: stage 1
5,295
231,153
65,084
62,796
16,362
0
380,690
(126)
380,564
of which: stage 2
0
1,080
2,536
7,096
5,061
0
15,773
(152)
15,620
of which: stage 3
0
0
0
0
0
2,148
2,148
(572)
1,577
Other financial assets measured at
 
amortized cost
12,564
6,702
321
6,072
394
264
26,318
(109)
26,209
of which: stage 1
12,564
6,693
307
5,863
317
0
25,745
(27)
25,718
of which: stage 2
0
10
13
209
77
0
309
(7)
302
of which: stage 3
0
0
0
0
0
264
264
(76)
189
Total financial assets
 
measured at amortized cost
251,133
278,103
85,472
97,846
23,793
2,414
738,762
(969)
737,794
On-balance sheet financial instruments
Financial assets measured at FVOCI
 
– debt instruments
3,996
4,771
0
77
0
0
8,844
0
8,844
Total on-balance
 
sheet financial instruments
255,130
282,874
85,472
97,923
23,793
2,414
747,606
(969)
746,638
Off-balance sheet positions subject to expected
 
credit loss by rating category
USD m
31.12.21
Rating category
1
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total off-
balance sheet
exposure
(maximum
exposure to
credit risk)
ECL provisions
Off-balance sheet financial instruments
Guarantees
 
4,457
7,064
4,535
3,757
1,009
150
20,972
(41)
of which: stage 1
4,457
7,037
4,375
3,075
752
0
19,695
(18)
of which: stage 2
0
27
160
682
258
0
1,127
(8)
of which: stage 3
0
0
0
0
0
150
150
(15)
Irrevocable loan commitments
2,797
14,183
7,651
8,298
6,502
46
39,478
(114)
of which: stage 1
2,797
13,917
7,416
7,127
5,840
0
37,097
(72)
of which: stage 2
0
266
235
1,171
663
0
2,335
(42)
of which: stage 3
0
0
0
0
0
46
46
0
Forward starting reverse repurchase
 
and securities borrowing agreements
0
0
55
1,389
0
0
1,444
0
Total off-balance sheet
 
financial instruments
7,254
21,247
12,241
13,444
7,512
196
61,894
(155)
Credit lines
Committed unconditionally revocable
 
credit lines
2,636
15,594
8,627
9,752
4,107
63
40,778
(38)
of which: stage 1
2,636
15,250
8,304
8,346
3,671
0
38,207
(28)
of which: stage 2
0
344
323
1,406
436
0
2,508
(10)
of which: stage 3
0
0
0
0
0
63
63
0
Irrevocable committed prolongation
 
of existing loans
17
2,438
1,422
1,084
602
48
5,611
(3)
of which: stage 1
17
2,438
1,422
1,082
568
0
5,527
(3)
of which: stage 2
0
0
0
1
34
0
36
0
of which: stage 3
0
0
0
0
0
48
48
0
Total credit lines
2,653
18,032
10,049
10,836
4,709
111
46,390
(41)
1 Refer to the “Internal UBS rating
 
scale and mapping of external
 
ratings” table in the “Risk
 
management and control”
 
section of this report for more
 
information on rating categories.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
312
 
 
Note 19
 
Expected credit loss measurement (continued)
 
f) Sensitivity information
As outlined in Note
 
1a, ECL estimates involve significant uncertainties at the
 
time they are made.
ECL models
The models
 
applied
 
to determine
 
point
 
-in-time
 
PD and LGD
 
rely on
 
market and statistical
 
data, which
 
has been
 
found
to
 
correlate
 
well
 
with
 
historically
 
observed
 
defaults
 
in
 
sufficiently
 
homogeneous
 
segments.
 
The
 
risk
 
sensitivities
 
for
each of the
 
ECL reporting
 
segments
 
to such
 
factors are
 
summarized
 
in Note 9.
Sustainability and climate risk
 
Sustainability and climate risk (SCR) may negatively affect clients
 
or portfolios due to direct or indirect transition costs, or
exposure to physical risks in locations
 
likely to be impacted by climate change.
 
Such effects could lead to
 
a deterioration
in credit worthiness, which in turn would
 
have an impact on ECLs.
 
While some indicators
 
that are more
 
influenced by
 
climate change (e.g.,
 
energy prices) are
 
factored into the
 
current PD
models where they have demonstrated statistical
 
relevance, UBS currently does not use a
 
specific SCR scenario in
 
addition
to the four
 
general economic
 
scenarios
 
applied to
 
derive the
 
weighted-average
 
ECL. The
 
rationale for
 
the approach
 
at
this point in time is the significance of model risks and
 
challenges in calibration and
 
probability weight assessment given
the paucity of data.
Instead,
 
UBS
 
focuses
 
on
 
the
 
process
 
of
 
vetting
 
clients
 
and
 
business
 
transactions
 
and
 
takes
 
individual
 
actions,
 
where
transition risk is deemed
 
to be a significant
 
driver of a
 
counterparty’s credit worthiness.
 
This review process may
 
lead to
a downward revision
 
of the counterparty’s credit rating,
 
or the adoption of risk mitigating
 
actions, and hence affect the
individual contribution to ECLs.
At the portfolio
 
level, UBS
 
has started
 
to use
 
stress loss
 
assumptions to
 
assess the
 
extent to
 
which SCR
 
may affect
 
the
quality of the
 
loans extended
 
to small and
 
medium-sized entities and
 
large corporate clients.
 
Initial tests were
 
based on
a set of assumptions presented
 
by external parties (such as the Bank of
 
England). Such analysis undertaken
 
during 2022
concluded that the counterparties
 
are not expected to be
 
significantly impacted
 
by physical or transition
 
risks, mainly as
there are no material risk concentrations in high-risk sectors. The
 
analysis of the corporate loan book has also shown that
any potential significant impacts from transition costs or
 
physical risks would materialize over a
 
time horizon that exceeds
in most cases the
 
contractual lifetime of the
 
underlying assets. Based on current information
 
on regulatory developments,
this would
 
also apply
 
to the portfolio
 
of private
 
clients’ mortgages
 
and real
 
estate financing,
 
given the long
 
lead times
for investments in upgrading
 
the housing stock.
As a
 
result of
 
the aforementioned
 
factors, it
 
was assessed
 
that the
 
magnitude of
 
any impact
 
of SCR
 
on the
 
weighted-
average ECL would not be material as of 31 December 2022. Therefore, no specific post-model adjustment
 
was made in
this regard.
›
 
Refer to “Sustainability
 
and climate risk”
 
in the “Risk management
 
and control” section
 
of this report
 
›
 
Refer to “Our focus
 
on sustainability
 
and climate”
 
in the “Our strategy, business
 
model and environment”
 
section of this
 
report
›
 
Refer to “UBS AG consolidated
 
supplemental disclosures
 
required under SEC regulations”
 
for the maturity
 
profile of UBS core loan
book
 
Forward-looking scenarios
Depending
 
on
 
the scenario
 
selection and
 
related macroeconomic
 
assumptions
 
for the
 
risk factors,
 
the components
 
of
the
 
relevant
 
weighted-average
 
ECL
 
change.
 
This
 
is
 
particularly
 
relevant
 
for
 
interest
 
rates,
 
which
 
can
 
move
 
in
 
both
directions under
 
a given growth
 
assumption,
 
e.g., low
 
growth with
 
high interest
 
rates in
 
a stagflation
 
scenario, versus
low growth
 
and falling interest
 
rates in a
 
recession. Management
 
generally looks
 
for scenario narratives that reflect
 
the
key risk drivers of a given credit
 
portfolio.
As forecasting
 
models are complex,
 
due to the
 
combination of
 
multiple factors, simple what-if
 
analyses involving a
 
change
of individual
 
parameters do not
 
necessarily provide realistic information
 
on the
 
exposure of segments
 
to changes
 
in the
macroeconomy.
 
Portfolio-specific
 
analyses
 
based
 
on
 
their key
 
risk
 
factors
 
would
 
also
 
not
 
be
 
meaningful,
 
as
 
potential
compensatory effects in other segments
 
would be ignored.
 
The table below indicates some sensitivities
 
to ECLs, if a key
macroeconomic
 
variable
 
for
 
the
 
forecasting
 
period
 
is
 
amended
 
across
 
all
 
scenarios
 
with
 
all
 
other
 
factors
 
remaining
unchanged.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
313
 
 
Note 19
 
Expected credit loss measurement (continued)
 
Potential effect on stage
 
1 and stage 2 positions from changing key
 
parameters as of 31 December 2022
 
USD m
100% Baseline
100%
Stagflationary
geopolitical crisis
 
100% Global crisis
 
Weighted average
 
Change in key parameters
Fixed income: Government bonds
 
(absolute change)
–0.50%
(3)
(106)
(2)
(14)
+0.50%
4
124
2
17
+1.00%
8
264
10
37
Unemployment rate (absolute change)
–1.00%
(4)
(138)
(24)
(23)
–0.50%
(2)
(78)
(13)
(12)
+0.50%
3
84
16
15
+1.00%
5
179
32
31
Real GDP growth (relative change)
–2.00%
7
13
18
11
–1.00%
3
7
9
5
+1.00%
(3)
(7)
(9)
(5)
+2.00%
(5)
(13)
(18)
(10)
House Price Index (relative change)
–5.00%
15
196
88
56
–2.50%
7
92
40
25
+2.50%
(4)
(83)
(35)
(19)
+5.00%
(7)
(157)
(65)
(36)
Equity (S&P500, EuroStoxx, SMI)
 
(relative change)
–10.00%
4
7
6
5
–5.00%
2
3
3
2
+5.00%
(2)
(4)
(3)
(2)
+10.00%
(4)
(8)
(7)
(5)
Sensitivities
 
can
 
be
 
more
 
meaningfully
 
assessed
 
in
 
the
 
context
 
of
 
coherent
 
scenarios
 
with
 
consistently
 
developed
macroeconomic
 
factors.
 
The
 
table
 
above
 
outlines
 
favorable
 
and
 
unfavorable
 
effects,
 
based
 
on
 
reasonably
 
possible
alternative changes to
 
the economic conditions
 
for stage 1 and
 
stage 2 positions. The
 
ECL impact
 
is calculated for
 
material
portfolios and disclosed for each
 
scenario.
 
The forecasting horizon is limited to three years, with a model
 
-based mean reversion of PD and LGD assumed thereafter.
Changes to these timelines may have
 
an effect on ECLs: depending
 
on the cycle, a longer or shorter forecasting horizon
will lead to different annualized lifetime PD and average LGD estimations. This is currently not deemed to be material for
UBS,
 
as a large proportion
 
of loans,
 
including mortgages
 
in Switzerland, have
 
maturities that are
 
within the
 
forecasting
horizon.
Scenario weights and stage allocation
 
Potential effect
 
on stage 1 and stage
 
2 positions from
 
changing scenario
 
weights or moving to
 
an ECL lifetime
 
calculation
 
as of 31 December
 
2022
Actual ECL
allowances and
provisions,
including staging
(as per Note 9)
 
Pro forma ECL allowances and provisions,
 
including staging
 
and assuming application of 100% scenario weighting
 
Pro forma ECL
allowances and
provisions,
assuming all
positions being
subject to lifetime
ECL
 
Scenarios
Weighted average
100% Baseline
100% Asset price
inflation
100%
Stagflationary
geopolitical crisis
 
100% Global crisis
 
Weighted average
USD m, except where indicated
Segmentation
Private clients with mortgages
(136)
(25)
(13)
(523)
(184)
(473)
Real estate financing
(43)
(26)
(22)
(176)
(30)
(126)
Large corporate clients
(136)
(97)
(84)
(199)
(174)
(235)
SME clients
(86)
(67)
(66)
(162)
(97)
(153)
Other segments
(125)
(114)
(111)
(145)
(153)
(281)
Total
(526)
(329)
(295)
(1,204)
(638)
(1,267)
Scenario weights
ECL is sensitive to changing scenario weights,
 
in particular if narratives and parameters are
 
selected that are not close to
the baseline scenario, highlighting
 
the non-linearity of credit losses.
As
 
shown
 
in the
 
table
 
above,
 
the
 
ECLs
 
for stage 1
 
and
 
stage 2
 
positions
 
would
 
have been
 
USD
329
m (31
 
December
2021:
 
USD
387
m)
 
instead of
 
USD
526
m
 
(31 December
 
2021:
 
USD
503
m)
 
if ECLs
 
had
 
been
 
determined
 
solely
 
on
 
the
baseline scenario
. The weighted-average ECL
 
therefore amounted
 
to
160
% (31 December 2021:
130
%) of the baseline
value. The effects of weighting
 
each of the four scenarios 100%
 
are shown in the table above.
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
314
 
 
Note 19
 
Expected credit loss measurement (continued)
 
Stage allocation and SICR
The determination
 
of what
 
constitutes an
 
SICR is
 
based on
 
management judgment,
 
as explained
 
in Note 1a.
 
Changing
the SICR trigger will have a direct effect on ECLs, as more or fewer positions would be subject to lifetime ECLs under any
scenario.
 
The
 
relevance of
 
the
 
SICR trigger
 
on
 
overall ECL
 
is
 
demonstrated
 
in
 
the table
 
above with
 
the
 
indication that
 
the
 
ECL
allowances and provisions
 
for stage 1 and stage 2 positions
 
would have been USD
1,267
m, if all non-impaired positions
across the
 
portfolio had been
 
measured for
 
lifetime ECLs irrespective of
 
their actual SICR
 
status. This
 
amount compares
with actual stage 1 and 2
 
allowances and provisions of USD
526
m as of 31 December 2022.
Maturity profile
The maturity
 
profile is
 
an important
 
driver in
 
ECLs, in
 
particular for
 
transactions
 
in stage
 
2.
 
A transfer
 
of a
 
transaction
into stage
 
2 may
 
therefore have a
 
significant effect on ECLs.
 
The current maturity
 
profile of most
 
lending books is relatively
short.
 
Lending
 
to large
 
corporate clients
 
is generally
 
between
 
one
 
and two
 
years, with
 
related loan
 
commitments up
 
to four
years. Real estate lending is generally between
 
two and three years in Switzerland, with long
 
dated maturities in the US.
Lombard-lending
 
contracts
 
typically
 
have
 
average
 
contractual
 
maturities
 
of
 
12
 
months
 
or
 
less,
 
and
 
include
 
callable
features.
A
 
significant
 
portion
 
of
 
our
 
lending
 
to
 
SMEs
 
and
 
Real
 
estate
 
financings
 
is
 
documented
 
under
 
multi-purpose
 
credit
agreements,
 
which allow
 
for various
 
forms of
 
utilization
 
but are
 
unconditionally cancelable
 
by UBS
 
at any
 
time: a)
 
for
drawings under such agreements with a fixed maturity, the respective term is
 
applied for ECL calculations, or a maximum
of 12 months in stage
 
1; b) for unused
 
credit lines and all drawings
 
that have no fixed
 
maturity (e.g., current
 
accounts),
UBS generally applies a 12-month maturity from the reporting
 
date, given the credit review policies, which require either
continuous monitoring of key indicators and behavioral patterns
 
for smaller positions or an annual formal review for any
other limit. The ECLs for these products
 
are sensitive to shortening
 
or extending the maturity assumption.
 
 
Note 20
 
Fair value measurement
 
a) Valuation principles
All financial and
 
non-financial assets
 
and liabilities measured
 
or disclosed
 
at fair value
 
are categorized
 
into one of
 
three
fair value hierarchy
 
levels in
 
accordance with
 
International F
 
inancial Reporting
 
Standards (IFRS).
 
The fair value
 
hierarchy
is based
 
on
 
the transparency
 
of inputs
 
to the
 
valuation
 
of an
 
asset or
 
liability as
 
of
 
the measurement
 
date.
 
In certain
cases,
 
the
 
inputs
 
used
 
to
 
measure
 
fair value
 
may
 
fall
 
within
 
different
 
levels
 
of
 
the
 
fair value
 
hierarchy.
 
For
 
disclosure
purposes,
 
the level
 
in the
 
hierarchy
 
within
 
which an
 
instrument is
 
classified in
 
its entirety
 
is based
 
on
 
the lowest
 
level
input that is significant to the position’s
 
fair value measurement:
–
 
Level 1 – quoted prices (unadjusted)
 
in active markets for identical assets and liabilities;
–
 
Level 2 – valuation techniques for which
 
all significant inputs are, or a
 
re based on, observable market data; or
–
 
Level 3 – valuation techniques for which
 
significant inputs are not
 
based on observable market data.
Fair values are determined
 
using quoted prices in active
 
markets for identical assets
 
or liabilities, where available.
 
Where
the
 
market
 
for
 
a
 
financial
 
instrument
 
or
 
non-financial
 
asset
 
or
 
liability
 
is
 
not
 
active,
 
fair
 
value
 
is
 
established
 
using
 
a
valuation
 
technique,
 
including
 
pricing
 
models.
 
Valuation
 
adjustments
 
may
 
be
 
made
 
to
 
allow
 
for
 
additional
 
factors,
including model, liquidity, credit
 
and funding
 
risks, which are not explicitly
 
captured within the valuation
 
technique, but
which would
 
nevertheless be considered
 
by market participants
 
when establishing
 
a price. The
 
limitations inherent
 
in a
particular valuation
 
technique are
 
considered in
 
the determination of
 
the classification
 
of an asset
 
or liability within
 
the
fair value hierarchy. Generally, the unit of account for a financial instrument is the individual instrument, and
 
UBS applies
valuation
 
adjustments
 
at
 
an
 
individual
 
instrument
 
level,
 
consistent
 
with
 
that
 
unit
 
of
 
account.
 
However,
 
if
 
certain
conditions
 
are
 
met, UBS
 
may estimate
 
the
 
fair
 
value
 
of
 
a
 
portfolio
 
of
 
financial assets
 
and
 
liabilities
 
with
 
substantially
similar and offsetting risk exposures
 
on the basis of the
 
net open risks.
›
 
Refer to Note 20d
 
for more information
 
 
b) Valuation governance
UBS’s
 
fair
 
value
 
measurement
 
and
 
model
 
governance
 
framework
 
includes
 
numerous
 
controls
 
and
 
other
 
procedural
safeguards
 
that are
 
intended
 
to maximize the
 
quality of
 
fair value
 
measurements
 
reported
 
in the
 
financial statements.
New products
 
and valuation techniques
 
must be reviewed
 
and approved
 
by key stakeholders
 
from the risk
 
and finance
control functions. Responsibility
 
for the ongoing
 
measurement of financial
 
and non
 
-financial instruments at fair value
 
is
with the business divisions.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
315
 
 
Note 20
 
Fair value measurement (continued)
 
Fair
 
value
 
estimates
 
are
 
validated
 
by
 
the
 
risk
 
and
 
finance
 
control
 
functions,
 
which
 
are
 
independent
 
of
 
the
 
business
divisions. Independent price verification is performed
 
by Finance through benchmarking
 
the business divisions’ fair value
estimates
 
with
 
observable
 
market
 
prices
 
and
 
other
 
independent
 
sources.
 
A
 
governance
 
framework
 
and
 
associated
controls are
 
in place
 
in order
 
to monitor
 
the quality
 
of third
 
-party pricing
 
sources
 
where
 
used.
 
For instruments
 
where
valuation models are used
 
to determine fair value,
 
independent valuation and
 
model control groups
 
within Finance and
Risk Control evaluate UBS’s models on
 
a regular basis, including valuation
 
and model input parameters, as
 
well as pricing.
As a
 
result of the
 
valuation controls
 
employed, valuation
 
adjustments may be
 
made to the
 
business divisions’
 
estimates
of fair value to align with independent
 
market data and the relevant accounting
 
standard.
›
 
Refer to Note 20d
 
for more information
 
 
c) Fair value hierarchy
The table
 
below provides the
 
fair value hierarchy classification
 
of financial
 
and non-financial assets and
 
liabilities measured
at
 
fair
 
value.
 
The
 
narrative
 
that
 
follows
 
describes
 
valuation
 
techniques
 
used
 
in
 
measuring
 
their fair
 
value
 
of
 
different
product types
 
(including
 
significant valuation
 
inputs and
 
assumptions used),
 
and the factors
 
considered in
 
determining
their classification within the fair
 
value hierarchy.
During 2022, 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
31.12.22
31.12.21
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
96,241
10,138
1,488
107,866
113,697
14,825
2,299
130,821
of which: Equity instruments
83,074
789
126
83,988
97,958
1,090
149
99,197
of which: Government bills / bonds
5,496
950
18
6,464
7,135
1,351
10
8,496
of which: Investment fund units
6,673
596
61
7,330
7,843
1,364
21
9,229
of which: Corporate and municipal bonds
976
6,363
541
7,880
708
7,604
556
8,868
of which: Loans
0
1,179
628
1,807
0
3,099
1,443
4,542
of which: Asset-backed securities
22
261
114
397
53
317
120
489
Derivative financial instruments
769
147,875
1,464
150,108
522
116,479
1,140
118,142
of which: Foreign exchange
575
84,881
2
85,458
255
53,043
7
53,305
of which: Interest rate
0
39,345
460
39,805
0
32,747
494
33,241
of which: Equity / index
1
21,542
653
22,195
0
27,861
384
28,245
of which: Credit
0
719
318
1,038
0
1,179
236
1,414
of which: Commodities
0
1,334
30
1,365
0
1,590
16
1,606
Brokerage receivables
0
17,576
0
17,576
0
21,839
0
21,839
Financial assets at fair value not held for trading
26,572
29,498
3,725
59,796
27,278
28,622
4,180
60,080
of which: Financial assets for unit-linked investment
 
contracts
13,071
1
0
13,072
21,110
187
6
21,303
of which: Corporate and municipal bonds
35
14,101
230
14,366
123
13,937
306
14,366
of which: Government bills / bonds
13,103
3,638
0
16,741
5,624
3,236
0
8,860
of which: Loans
0
3,602
736
4,337
0
4,982
892
5,874
of which: Securities financing transactions
0
7,590
114
7,704
0
5,704
100
5,804
of which: Auction rate securities
0
0
1,326
1,326
0
0
1,585
1,585
of which: Investment fund units
307
566
190
1,063
338
574
117
1,028
of which: Equity instruments
57
0
792
849
83
2
681
765
Financial assets measured at
 
fair value through other comprehensive
 
income on a recurring basis
Financial assets measured at fair value through
 
other comprehensive income
57
2,182
0
2,239
2,704
6,140
0
8,844
of which: Asset-backed securities
2
0
0
0
0
0
4,849
0
4,849
of which: Government bills / bonds
2
0
26
0
26
2,658
27
0
2,686
of which: Corporate and municipal bonds
57
2,156
0
2,213
45
1,265
0
1,310
Non-financial assets measured at
 
fair value on a recurring basis
Precious metals and other physical commodities
4,471
0
0
4,471
5,258
0
0
5,258
Non-financial assets measured at
 
fair value on a non-recurring
 
basis
Other non-financial assets
3
0
0
110
110
0
0
26
26
Total assets measured
 
at fair value
128,110
207,269
6,788
342,166
149,459
187,905
7,645
345,010
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
316
 
 
Note 20
 
Fair value measurement (continued)
Determination of fair values
 
from quoted market prices or valuation techniques
 
(continued)
1
31.12.22
31.12.21
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
23,578
5,823
114
29,515
25,413
6,170
105
31,688
of which: Equity instruments
16,521
352
78
16,951
18,328
513
83
18,924
of which: Corporate and municipal bonds
36
4,643
27
4,707
30
4,219
17
4,266
of which: Government bills / bonds
5,880
706
1
6,587
5,883
826
0
6,709
of which: Investment fund units
1,141
84
3
1,229
1,172
555
6
1,733
Derivative financial instruments
640
152,582
1,684
154,906
509
118,558
2,242
121,309
of which: Foreign exchange
 
587
87,897
24
88,508
258
53,800
21
54,078
of which: Interest rate
 
0
37,429
116
37,545
0
28,398
278
28,675
of which: Equity / index
 
0
24,963
1,184
26,148
0
33,438
1,511
34,949
of which: Credit
0
920
279
1,199
0
1,412
341
1,753
of which: Commodities
0
1,309
52
1,361
0
1,503
63
1,566
Financial liabilities designated at
 
fair value on a recurring basis
Brokerage payables designated at
 
fair value
0
45,085
0
45,085
0
44,045
0
44,045
Debt issued designated at fair value
0
63,111
10,527
73,638
0
59,606
14,194
73,799
Other financial liabilities designated at fair value
0
29,547
691
30,237
0
29,258
816
30,074
of which: Financial liabilities related to unit-linked
 
investment contracts
0
13,221
0
13,221
0
21,466
0
21,466
of which: Securities financing transactions
0
15,333
0
15,333
0
6,375
2
6,377
of which: Over-the-counter
 
debt instruments and other
0
993
691
1,684
0
1,417
814
2,231
Total liabilities measured
 
at fair value
24,219
296,148
13,015
333,381
25,922
257,637
17,357
300,916
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 Effective 1 April 2022, a portfolio of
 
assets previously classified as Financial
 
assets measured at fair value
 
through other
 
comprehensive income was
 
reclassified to Other financial
 
assets measured at amortized cost.
Refer to Note 1 for more information.
 
3 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.
 
Valuation techniques
 
UBS uses widely recognized valuation techniques for determining
 
the fair value of
 
financial and non-financial instruments
that are
 
not actively
 
traded and
 
quoted.
 
The most frequently
 
applied
 
valuation techniques
 
include discounted
 
value of
expected cash flows, relative value
 
and option pricing methodologies.
Discounted
 
value
 
of
 
expected
 
cash
 
flows
 
is
 
a
 
valuation
 
technique
 
that
 
measures
 
fair
 
value
 
using
 
estimated
 
expected
future cash
 
flows from assets or
 
liabilities and then
 
discounts these cash
 
flows using a discount
 
rate or discount
 
margin
that
 
reflects
 
the
 
credit
 
and
 
/ or
 
funding spreads
 
required
 
by
 
the market
 
for
 
instruments
 
with
 
similar
 
risk and
 
liquidity
profiles to
 
produce
 
a present
 
value.
 
When using
 
such valuation
 
techniques,
 
expected
 
future cash
 
flows
 
are estimated
using an
 
observed or
 
implied market price
 
for the
 
future cash
 
flows or by
 
using industry
 
-standard
 
cash flow projection
models.
 
The
 
discount
 
factors
 
within
 
the
 
calculation
 
are
 
generated
 
using
 
industry-standard
 
yield
 
curve
 
modeling
techniques and models.
Relative value
 
models measure
 
fair value
 
based on the
 
market prices
 
of equivalent
 
or comparable
 
assets or
 
liabilities,
 
making
adjustments for differences
 
between the characteristics
 
of the observed instrument
 
and the instrument
 
being valued.
Option
 
pricing
 
models
 
incorporate
 
assumptions
 
regarding
 
the
 
behavior
 
of
 
future
 
price
 
movements
 
of
 
an
 
underlying
referenced
 
asset
 
or
 
assets
 
to
 
generate
 
a
 
probability-weighted
 
future
 
expected
 
payoff
 
for
 
the
 
option.
 
The
 
resulting
probability-weighted expected
 
payoff is
 
then discounted
 
using discount
 
factors generated
 
from industry
 
-standard yield
curve modeling
 
techniques
 
and
 
models. The
 
option pricing
 
model may
 
be implemented
 
using a
 
closed-form analytical
formula or other mathematical techniques
 
(e.g., binomial
 
tree or Monte Carlo simulation).
Where available, valuation techniques use market-observable assumptions and inputs. If such
 
data is not available,
 
inputs
may be derived
 
by reference
 
to similar assets
 
in active
 
markets, from recent
 
prices for
 
comparable transactions
 
or from
other observable market data. In such
 
cases, the inputs selected
 
are based on historical
 
experience and practice for
 
similar
or analogous instruments,
 
derivation of input
 
levels based
 
on similar
 
products with observable
 
price levels, and knowledge
of current market conditions and
 
valuation approaches.
For
 
more
 
complex
 
instruments,
 
fair
 
values
 
may
 
be
 
estimated
 
using
 
a
 
combination
 
of
 
observed
 
transaction
 
prices,
consensus pricing services and relevant
 
quotes. Consideration is given to the nature of the
 
quotes (e.g., indicative or firm)
and the
 
relationship of recently
 
evidenced market activity
 
to the prices
 
provided by
 
consensus pricing services. UBS
 
also
uses internally developed models, which are typically
 
based on valuation methods and techniques recognized as standard
within the
 
industry. Assumptions
 
and inputs used in
 
valuation techniques include
 
benchmark interest rate
 
curves, credit
and
 
funding
 
spreads used
 
in estimating
 
discount
 
rates,
 
bond
 
and
 
equity prices,
 
equity
 
index
 
prices,
 
foreign
 
exchange
rates, levels of market volatility and correlation. Refer to Note 20e for more information. The discount curves used by the
Group incorporate the funding
 
and credit characteristics of the instruments to which
 
they are applied.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
317
 
 
Note 20
 
Fair value measurement (continued)
Financial instruments
 
excluding derivatives:
 
valuation and classification
 
in the fair value
 
hierarchy
Product
Valuation and
 
classification in the fair value hierarchy
Government bills
and bonds
Valuation
–
 
Generally valued using prices
 
obtained directly from the market.
–
 
Instruments not
 
priced directly using
 
active-market data are
 
valued using discounted
 
cash flow valuation
techniques that incorporate market
 
data for similar government instruments.
 
Fair value
hierarchy
–
 
Generally traded in
 
active markets with prices that
 
can be obtained directly from these
 
markets, resulting
in classification as Level 1,
 
while the remaining positions are classified as Level
 
2 and Level 3.
Corporate and
municipal bonds
Valuation
–
 
Generally
 
valued
 
using
 
prices
 
obtained
 
directly
 
from
 
the
 
market
 
for
 
the
 
security,
 
or
 
similar
 
securities,
adjusted for seniority, maturity
 
and liquidity.
–
 
When
 
prices are
 
not available,
 
instruments are
 
valued using
 
discounted
 
cash flow
 
valuation techniques
incorporating the credit spread of
 
the issuer or similar issuers.
–
 
For
 
convertible
 
bonds
 
without directly
 
comparable
 
prices,
 
issuances
 
may
 
be priced
 
using
 
a convertible
bond model.
Fair value
hierarchy
–
 
Generally classified as Level 1
 
or Level 2,
 
depending on the depth of trading activity behind
 
price sources.
–
 
Level 3 instruments have no suitable
 
pricing information available.
Traded
 
loans and
loans measured at
fair value
Valuation
–
 
Valued directly using market prices
 
that reflect recent transactions
 
or quoted dealer prices, where
 
available.
–
 
Where
 
no market
 
price
 
data is
 
available, loans
 
are valued
 
by relative
 
value benchmarking
 
using pricing
derived from debt instruments in
 
comparable entities or different products in the same
 
entity, or by using
a credit
 
default swap valuation
 
technique, which
 
requires inputs
 
for credit
 
spreads, credit
 
recovery rates
and
 
interest rates.
 
Recently originated
 
commercial
 
real estate
 
loans are
 
measured
 
using a
 
securitization
approach based on rating age
 
ncy guidelines.
Fair value
hierarchy
–
 
Instruments with suitably deep
 
and liquid pricing information are classified as
 
Level 2.
–
 
Positions requiring the use of valuation techniques, or for which the price sources have insufficient trading
depth, are classified as Level 3.
Investment fund
units
Valuation
–
 
Predominantly exchange
 
-traded, with readily available quoted prices in liquid
 
markets.
–
 
Where market prices are not available,
 
fair value may be measured using net asset values (NAVs)
 
.
Fair value
hierarchy
–
 
Listed
 
units
 
are
 
classified
 
as Level
 
1, provided
 
there
 
is sufficient
 
trading
 
activity to
 
justify
 
active-market
classification, while other positions are
 
classified as Level 2.
–
 
Positions for which NAVs are not available
 
are classified as Level 3.
Asset-backed
securities (ABS)
Valuation
–
 
For liquid securities, the valuation process will use trade and price data, updated for movements in market
levels between the
 
time of trading and
 
the time of valuation. Less liquid
 
instruments are measured using
discounted expected cash flows incorporating
 
price data for
 
instruments or indices with
 
similar risk profiles.
Fair value
hierarchy
–
 
Residential
 
mortgage
-
backed
 
securities
,
c
ommercial
 
mortgage
-
backed
 
securities
 
and
 
other
 
ABS
 
are
generally classified as Level 2. However, if significant inputs are unobservable, or if market or fundamental
data is not available, they are
 
classified as Level 3.
Auction rate
securities (ARS)
Valuation
–
 
ARS
 
are
 
valued
 
utilizing
 
a
 
discounted
 
cash
 
flow
 
methodology.
 
The
 
model
 
captures
 
interest
 
rate
 
risk
emanating from the
 
note coupon, credit risk
 
attributable to the underlying
 
closed-end fund
 
investments,
liquidity risk as a function of
 
the level of trading volume in these
 
positions, and extension risk
 
,
 
as ARS are
perpetual instruments that require
 
an assumption regarding their maturity
 
or issuer redemption date.
 
Fair value
hierarchy
–
 
Granular and liquid
 
pricing information is generally
 
not available for ARS.
 
As a result, these
 
securities are
classified as Level 3.
Equity instruments
Valuation
–
 
Listed equity instruments are
 
generally valued using prices obtained directly from
 
the market.
–
 
Unlisted equity
 
holdings, including
 
private equity
 
positions, are
 
initially marked
 
at their
 
transaction price
and are
 
revalued when
 
reliable evidence
 
of price
 
movement becomes
 
available or
 
when the
 
position
 
is
deemed to be impaired.
 
Fair value
hierarchy
–
 
The majority
 
of equity
 
securities are
 
actively
 
traded on
 
public stock
 
exchanges where
 
quoted prices
 
are
readily and regularly available, resulting
 
in Level 1 classification.
–
 
Equity securities less actively traded
 
will be classified as Level 2 and illiquid
 
positions as Level 3.
Financial assets for
unit-linked
investment
contracts
Valuation
–
 
The majority of assets are listed on
 
exchanges and fair values are determined using quoted
 
prices.
Fair value
hierarchy
–
 
Most assets are classified as
 
Level 1 if actively traded, or Level 2 if trading is not active.
–
 
Instruments for which prices are
 
not readily available are classified as
 
Level 3.
Securities
financing
transactions
Valuation
–
 
These instruments are
 
valued using discounted expected
 
cash flow techniques. The
 
discount rate applied
is based on funding curves that
 
are relevant to the collateral eligibility terms.
Fair value
hierarchy
–
 
Collateral
 
funding curves for
 
these instruments
 
are generally observable
 
and, as
 
a result,
 
these positions
are classified as Level 2.
–
 
Where the collateral terms
 
are non-standard, the funding curve
 
may be considered unobservable
 
and these
positions are classified as Level 3.
Brokerage
receivables and
payables
Valuation
–
 
Fair value is determined based on
 
the value of the underlying balances.
Fair value
hierarchy
–
 
Due to their on-demand nature,
 
these receivables and payables are deemed as Level
 
2.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
318
 
 
Note 20
 
Fair value measurement (continued)
Product
Valuation and
 
classification in the fair value hierarchy
Financial liabilities
related to unit-
linked investment
contracts
Valuation
–
 
The
 
fair values
 
of investment
 
contract liabilities
 
are determined
 
by reference
 
to the
 
fair
 
value of
 
the
corresponding assets.
Fair value
hierarchy
–
 
The
 
liabilities
 
themselves
 
are
 
not actively
 
traded,
 
but
 
are
 
mainly
 
referenced
 
to
 
instruments
 
that
 
are
actively traded and are therefore classified
 
as Level 2.
Precious metals and
other physical
commodities
Valuation
–
 
Physical assets are valued using the
 
spot rate observed in the relevant market
 
.
Fair value
hierarchy
–
 
Generally traded in active markets
 
with prices that can
 
be obtained directly from
 
these markets, resulting
in classification as Level 1.
Debt issued
designated at fair
value
Valuation
–
 
The risk management
 
and the valuation
 
approaches for
 
these instruments are
 
closely aligned with
 
the
equivalent
 
derivatives
 
business
 
and
 
the
 
underlying
 
risk,
 
and
 
the
 
valuation
 
techniques
 
used
 
for
 
this
component are the same a
 
s
 
the relevant valuation techniques described below.
Fair value
hierarchy
–
 
The observability is closely aligned with
 
the equivalent derivatives business and the underlying
 
risk.
 
Derivative instruments: valuation
 
and classification in the fair
 
value hierarchy
The curves used for discounting
 
expected cash flows in
 
the valuation of collateralized
 
derivatives reflect the funding terms
associated with the relevant collateral arrangement for the instrument being valued. These collateral arrangements differ
across
 
counterparties
 
with
 
respect
 
to
 
the
 
eligible
 
currency
and
 
interest
 
terms
 
of
 
the
 
collateral.
 
The
 
majority
 
of
collateralized derivatives are
 
measured using a discount
 
curve based on funding
 
rates derived from overnight interest
 
in
the cheapest eligible currency for the
 
respective counterparty
 
collateral agreement.
Uncollateralized and
 
partially collateralized
 
derivatives are
 
discounted
 
using the
 
alternative reference
 
rate (the
 
ARR) (or
equivalent)
 
curve for
 
the
 
currency of
 
the
 
instrument.
 
As
 
described
 
in
 
Note
 
20d,
 
the fair
 
value
 
of
 
uncollateralized
 
and
partially
 
collateralized derivatives
 
is
 
then adjusted
 
by
 
credit
 
valuation
 
adjustments
 
(CVAs),
 
debit valuation
 
adjustments
(DVAs)
 
and
 
funding valuation
 
adjustments (
 
FVAs),
 
as applicable,
 
to reflect
 
an estimation
 
of the
 
effect of
 
counterparty
credit risk, UBS’s own credit risk, and
 
funding costs and benefits.
›
 
Refer to Note 10
 
for more information
 
about derivative
 
instruments
 
Derivative product
Valuation and
 
classification in the fair value hierarchy
Interest rate
contracts
Valuation
–
 
Interest rate swap contracts are valued by estimating future interest cash flows and discounting those cash
flows using
 
a rate
 
that reflects
 
the appropriate
 
funding rate
 
for the
 
position
 
being
 
measured. The
 
yield
curves used
 
to estimate
 
future index levels
 
and discount
 
rates are generated
 
using market-standard
 
yield
curve models using interest rates associated
 
with current market activity. The key
 
inputs to the models are
interest rate
 
swap rates, forward
 
rate agreement
 
rates, short-term interest
 
rate futures prices, basis
 
swap
spreads and inflation swap rates.
–
 
Interest rate
 
option contracts
 
are valued
 
using various
 
market-standard option
 
models, using
 
inputs that
include interest rate yield curves,
 
inflation curves, volatilities and correlations.
–
 
When the maturity of an interest rate swap or option contract
 
exceeds the term for which standard market
quotes are observable for a significant input parameter, the contracts are valued by extrapolation
 
from the
last observable point using
 
standard assumptions or by reference to
 
another observable comparable input
parameter to represent a
 
suitable proxy for that portion of the term.
Fair value
hierarchy
–
 
The majority of interest rate swaps are classified as Level 2,
 
as the standard market contracts that form the
inputs for yield curve models are
 
generally traded in active and observable
 
markets.
–
 
Options are generally treated as Level 2,
 
as the calibration process enables
 
the model output to
 
be validated
to active-market levels. Models calibrated
 
in this way are
 
then used to
 
revalue the portfolio of
 
both standard
options and more exotic products.
–
 
Interest
 
rate swap
 
or option
 
contracts are
 
classified as
 
Level 3 when
 
the terms
 
exceed standard
 
market-
observable quotes.
–
 
Exotic options for which appropriate volatility or correlation input levels cannot be implied from observable
market data are classified as Level
 
3.
Credit derivative
contracts
Valuation
–
 
Credit
 
derivative
 
contracts
 
are
 
valued
 
using
 
industry-standard
 
models
 
based
 
primarily
 
on market
 
credit
spreads, upfront
 
pricing points and
 
implied recovery rates.
 
Where a derivative
 
credit spread is not directly
available, it may be derived from
 
the price of the reference cash bond.
 
–
 
Asset-backed
 
credit derivatives
 
are valued
 
using a
 
valuation
 
technique similar
 
to that
 
of the
 
underlying
security with an adjustment to reflect
 
the funding differences between
 
cash and synthetic form.
Fair value
hierarchy
–
 
Single-entity
 
and
 
portfolio
 
credit
 
derivative
 
contracts
 
are
 
classified
 
as
 
Level 2
 
when
 
credit
 
spreads
 
and
recovery rates are determined from actively
 
traded observable market data. Where the
 
underlying reference
name(s) are
 
not actively traded
 
and the
 
correlation cannot
 
be directly mapped
 
to actively traded
 
tranche
instruments, these contracts are
 
classified as Level 3.
 
–
 
Asset-backed
 
credit
 
derivatives
 
follow
 
the
 
characteristics
 
of
 
the
 
underlying
 
security
 
and
 
are
 
therefore
distributed across Level 2 and
 
Level 3.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
319
 
 
Note 20
 
Fair value measurement (continued)
Derivative product
Valuation and
 
classification in the fair value hierarchy
Foreign exchange
contracts
Valuation
–
 
Open spot foreign exchange
 
(FX) contracts are valued using the FX spot rate observed
 
in the market.
–
 
Forward FX contracts are
 
valued using the FX spot rate
 
adjusted for forward pricing points
 
observed from
standard market-based
 
sources.
–
 
Over-the-counter
 
(OTC)
 
FX option
 
contracts are
 
valued
 
using market-standard
 
option valuation
 
models.
The models
 
used for shorter-dated
 
options (i.e.,
 
maturities of five
 
years or less)
 
tend to be
 
different than
those used for longer-dated options because the models
 
needed for longer-dated OTC FX
 
contracts require
additional consideration of
 
interest rate and FX rate interdependency.
–
 
The valuation for multi-dimensional FX options uses a multi-local volatility model, which is
 
calibrated to the
observed FX volatilities for all relevant
 
FX pairs.
Fair value
hierarchy
–
 
The
 
markets
 
for
 
FX
 
spot
 
and
 
FX
 
forward
 
pricing
 
points
 
are
 
both
 
actively
 
traded
 
and
 
observable
 
and
therefore such FX contracts are generally
 
classified as Level 2.
 
–
 
A significant
 
proportion of
 
OTC FX option
 
contracts are
 
classified as Level
 
2 as inputs
 
are derived
 
mostly
from standard market
 
contracts traded in active and observable markets.
–
 
OTC FX option contracts
 
classified as Level 3 include
 
multi-dimensional FX options and long-dated FX
 
exotic
option contracts where
 
there is no active market from which to derive
 
volatility or correlation inputs.
Equity / index
contracts
Valuation
–
 
Equity
 
forward contracts
 
have a
 
single stock
 
or index
 
underlying and
 
are
 
valued using
 
market-standard
models. The key
 
inputs to the
 
models are stock
 
prices, estimated dividend
 
rates and equity
 
funding rates
(which are implied from prices of forward contracts observed in the market). Estimated cash
 
flows are then
discounted using
 
market-standard discounted cash
 
flow models using a
 
rate that reflects the
 
appropriate
funding rate for that portion of
 
the portfolio. When no market
 
data is available for the
 
instrument maturity,
they are
 
valued
 
by extrapolation
 
of available
 
data, use
 
of historical
 
dividend data,
 
or use
 
of data
 
for a
related equity.
 
–
 
Equity option contracts are valued using market-standard
 
models that estimate the equity forward level as
described
 
for
 
equity
 
forward
 
contracts
 
and
 
incorporate
 
inputs
 
for
 
stock
 
volatility
 
and
 
for
 
correlation
between
 
stocks
 
within
 
a
 
basket.
 
The
 
probability-weighted
 
expected
 
option
 
payoff
 
generated
 
is
 
then
discounted
 
using
 
market-standard
 
discounted
 
cash
 
flow
 
models
 
applying
 
a
 
rate
 
that
 
reflects
 
the
appropriate funding rate for that portion of the portfolio. When volatility, forward or correlation inputs are
not
 
available,
 
they
 
are
 
valued
 
using
 
extrapolation
 
of
 
available
 
data,
 
historical
 
dividend,
 
correlation
 
or
volatility data, or the equivalent
 
data for a related equity.
Fair value
hierarchy
–
 
As inputs
 
are derived
 
mostly from standard
 
market contracts traded
 
in active
 
and observable
 
markets, a
significant proportion of equity forward
 
contracts are classified as Level 2.
 
–
 
Equity option
 
positions for
 
which inputs are
 
derived from standard
 
market contracts traded
 
in active and
observable markets are also classified as Level 2.
 
Level 3 positions are those for which volatility, forward or
correlation inputs are not ob
 
servable.
Commodity
contracts
Valuation
–
 
Commodity
 
forward
 
and
 
swap
 
contracts are
 
measured
 
using
 
market-standard
 
models
 
that use
 
market
forward levels on standard
 
instruments.
 
–
 
Commodity
 
option
 
contracts
 
are
 
measured
 
using
 
market-standard
 
option
 
models
 
that
 
estimate
 
the
commodity forward
 
level as
 
described
 
for commodity
 
forward and
 
swap contracts,
 
incorporating
 
inputs
for the volatility of the underlying index or commodity. For commodity options
 
on baskets of commodities
or
 
bespoke
 
commodity
 
indices,
 
the
 
valuation
 
technique
 
also
 
incorporates
 
inputs
 
for
 
the
 
correlation
between different commodities or
 
commodity indices.
Fair value
hierarchy
–
 
Individual
 
commodity
 
contracts
 
are
 
typically
 
classified
 
as
 
Level 2,
 
because
 
active
 
forward
 
and
 
volatility
market data is available.
 
d) Valuation adjustments and other items
The output of
 
a valuation
 
technique is always
 
an estimate of
 
a fair value
 
that cannot be
 
measured with complete
 
certainty.
As a result, valuations are adjusted
 
where appropriate and when such factors
 
would be considered by market participants
in estimating fair value, to reflect close-out costs, credit exposure,
 
model-driven valuation uncertainty,
 
funding costs and
benefits, trading restrictions and
 
other factors.
 
Deferred day-1 profit or loss reserves
For new transactions
 
where the
 
valuation technique
 
used to
 
measure fair
 
value requires
 
significant
 
inputs that
 
are not
based on observable market data, the financial instrument is
 
initially recognized
 
at the transaction price. The transaction
price may differ from the fair
 
value obtained using a
 
valuation technique, where
 
any such difference is deferred and
 
not
initially recognized in the income statement.
 
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 pricing
 
of equivalent
 
products or
 
the underlying
 
parameters becomes
 
observable or
 
when
the transaction is closed out.
The table below summarizes the changes
 
in deferred day-1 profit or loss
 
reserves during the
 
respective period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
320
 
 
Note 20
 
Fair value measurement (continued)
 
Deferred day-1 profit
 
or loss reserves
USD m
2022
2021
2020
Reserve balance at the beginning of the
 
year
418
269
146
Profit / (loss) deferred on new transactions
299
459
362
(Profit) / loss recognized in the income statement
(295)
(308)
(238)
Foreign currency translation
0
(2)
0
Reserve balance at the end of the year
422
418
269
Own credit
 
Own
 
credit
 
risk
 
is
 
reflected
 
in
 
the
 
valuation
 
of
 
UBS’s
 
fair
 
value
 
option
 
liabilities
 
where
 
this
 
component
 
is
 
considered
relevant for valuation purposes
 
by UBS’s counterparties and other market participants.
Changes
 
in the
 
fair value
 
of financial
 
liabilities designated
 
at fair
 
value through
 
profit or
 
loss related
 
to own
 
credit are
recognized
 
in
Other
 
comprehensive
 
income
 
directly
 
within
Retained
 
earnings,
 
with
 
no
 
reclassification
 
to
 
the
 
income
statement
 
in
 
future
 
periods.
 
This
 
presentation
 
does
 
not
 
create
 
or
 
increase
 
an
 
accounting
 
mismatch
 
in
 
the
 
income
statement, as the Group does
 
not hedge changes in own
 
credit.
Own credit is estimated using own credit adjustment (OCA) curves, which incorporate observable market data, including
market-observed secondary prices for UBS’s
 
debt and debt curves of
 
peers. In the table
 
below, the change in unrealized
own
 
credit consists
 
of changes
 
in fair
 
value that
 
are attributable
 
to the
 
change
 
in UBS’s
 
credit spreads,
 
as well
 
as the
effect of changes
 
in fair values
 
attributable to
 
factors other than
 
credit spreads,
 
such as redemptions,
 
effects from time
decay and
 
changes
 
in interest
 
and
 
other market
 
rates.
 
Realized
 
own
 
credit is
 
recognized
 
when
 
an instrument
 
with an
associated
 
unrealized
 
OCA
 
is
 
repurchased
 
prior
 
to
 
the
 
contractual
 
maturity
 
date.
 
Life-to-date
 
amounts
 
reflect
 
the
cumulative unrealized change
 
since initial recognition.
›
 
Refer to Note 15
 
for more information
 
about debt issued
 
designated at fair
 
value
 
Own credit adjustments on financial
 
liabilities designated at fair value
Included in Other comprehensive income
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Recognized during the period:
Realized gain / (loss)
 
1
(14)
2
Unrealized gain / (loss)
 
866
60
(295)
Total gain / (loss), before
 
tax
867
46
(293)
USD m
31.12.22
31.12.21
31.12.20
Recognized on the balance sheet
 
as of the end of the period:
Unrealized life-to-date gain / (loss)
 
556
(315)
(381)
of which: debt issued designated at fair value
453
(347)
(418)
of which: other financial liabilities designated at
 
fair value
103
32
36
Credit valuation adjustments
In
 
order
 
to
 
measure
 
the
 
fair
 
value
 
of
 
OTC
 
derivative
 
instruments,
 
including
 
funded
 
derivative
 
instruments
 
that
 
are
classified as
Financial assets at
 
fair value not
 
held for trading,
 
CVAs are needed to
 
reflect the credit risk
 
of the counterparty
inherent
 
in
 
these
 
instruments.
 
This
 
amount
 
represents
 
the
 
estimated
 
fair
 
value
 
of
 
protection
 
required
 
to
 
hedge
 
the
counterparty credit risk of such
 
instruments. A CVA
 
is determined for each counterparty,
 
considering all exposures
 
with
that counterparty,
 
and is dependent
 
on the expected future value
 
of exposures, default
 
probabilities and recovery
 
rates,
applicable collateral or netting arrangements,
 
break clauses, funding
 
spreads, and other contractual factors.
 
Funding valuation adjustments
FVAs
 
reflect
 
the
 
costs
 
and
 
benefits
 
of
 
funding
 
associated
 
with
 
uncollateralized
 
and
 
partially
 
collateralized
 
derivative
receivables and
 
payables and are
 
calculated as the
 
valuation effect from
 
moving the
 
discounting of
 
the uncollateralized
derivative cash flows from the ARR
 
to OCA using the CVA
 
framework, including the probability of
 
counterparty default.
An FVA is also
 
applied to collateralized derivative assets in
 
cases where the collateral
 
cannot be sold or repledged.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
321
 
 
Note 20
 
Fair value measurement (continued)
Debit valuation adjustments
A DVA is estimated to incorporate own credit in the valuation of derivatives where an
 
FVA is not already recognized. The
DVA calculation
 
is effectively consistent
 
with the CVA
 
framework, being determined
 
for each counterparty,
 
considering
all exposures
 
with that
 
counterparty
 
and
 
taking into
 
account
 
collateral
 
netting
 
agreements,
 
expected
 
future
 
mark-to-
market movements and UBS’s
 
credit default spreads.
Other valuation adjustments
Instruments that are measured as part
 
of a portfolio
 
of combined long and short
 
positions are valued at mid-market
 
levels
to ensure consistent
 
valuation of the
 
long-
 
and short-component
 
risks. A liquidity valuation
 
adjustment is then made
 
to
the overall
 
net long
 
or short
 
exposure
 
to move
 
the fair
 
value to
 
bid or
 
offer as
 
appropriate, reflecting
 
current levels
 
of
market liquidity.
 
The bid
 
–offer
 
spreads
 
used
 
in the
 
calculation of
 
this valuation
 
adjustment
 
are
 
obtained
 
from
 
market
transactions and other relevant sources
 
and are updated
 
periodically.
Uncertainties
 
associated
 
with
 
the
 
use
 
of model
 
-based
 
valuations
 
are
 
incorporated
 
into the
 
measurement
 
of
 
fair value
through the use of model
 
reserves. These reserves reflect
 
the amounts that the Group
 
estimates should be deducted from
valuations produced
 
directly by models
 
to incorporate uncertainties
 
in the relevant
 
modeling assumptions,
 
in the model
and market inputs
 
used, or in the
 
calibration of the
 
model output to
 
adjust for known
 
model deficiencies. In
 
arriving at
these estimates,
 
the Group
 
considers a
 
range of
 
market practices,
 
including
 
how it
 
believes market
 
participants would
assess these uncertainties. Model reserves are reassessed periodically
 
in light of data from market
 
transactions, consensus
pricing services and other relevant sources.
 
Balance sheet valuation adjustments
 
on financial instruments
As of
USD m
31.12.22
31.12.21
Credit valuation adjustments
1
(33)
(44)
Funding valuation adjustments
(50)
(49)
Debit valuation adjustments
4
2
Other valuation adjustments
(839)
(913)
of which: liquidity
(311)
(341)
of which: model uncertainty
(529)
(571)
1 Amounts do not include reserves
 
against defaulted counterparties.
 
Other items
In the first half of 2021,
 
UBS incurred a loss of
 
USD
861
m as a result of closing out a
 
significant portfolio of swaps with
a US-based
 
client of
 
its prime
 
brokerage
 
business and
 
the unwinding
 
of related
 
hedges,
 
following the
 
client’s default.
This loss is presented within
Other net income from financial instruments measured
 
at fair value through
 
profit or loss
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
322
 
 
Note 20
 
Fair value measurement (continued)
 
e)
 
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,
 
the inputs
 
used in
 
a given
 
valuation technique
 
that are
 
considered
 
significant as
 
of 31
 
December 2022
 
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 ranges
 
will therefore vary from period to period
 
and parameter to parameter based
 
on characteristics of
the instruments held at each balance sheet date. Furthermore, the ranges of unobservable inputs may differ across other
financial institutions, reflecting the diversity
 
of the products in each firm’s inventory.
 
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)
31.12.22
31.12.21
USD bn
31.12.22
31.12.21
31.12.22
31.12.21
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
0.8
0.9
0.0
0.0
Relative value to
market comparable
Bond price equivalent
14
112
85
16
143
98
points
Discounted expected
cash flows
Discount margin
412
412
434
434
basis
points
Traded loans, loans
measured at fair value,
loan commitments and
guarantees
1.7
2.8
0.0
0.0
Relative value to
market comparable
Loan price equivalent
30
100
97
0
101
99
points
Discounted expected
cash flows
Credit spread
200
200
200
175
800
436
basis
points
Market comparable
and securitization
model
Credit spread
145
1,350
322
28
1,544
241
basis
points
Auction rate securities
1.3
1.6
Discounted expected
cash flows
Credit spread
115
196
144
115
197
153
basis
points
Investment fund units
3
0.3
0.1
0.0
0.0
Relative value to
market comparable
Net asset value
Equity instruments
3
0.9
0.8
0.1
0.1
Relative value to
market comparable
Price
Debt issued designated at
fair value
4
10.5
14.2
Other financial liabilities
designated at fair value
0.7
0.8
Discounted expected
cash flows
Funding spread
23
175
24
175
basis
points
Derivative financial instruments
Interest rate
0.5
0.5
0.1
0.3
Option model
Volatility of interest
rates
75
143
65
81
basis
points
Credit
0.3
0.2
0.3
0.3
Discounted expected
cash flows
Credit spreads
 
9
565
1
583
basis
points
Bond price equivalent
3
277
2
136
points
Equity / index
0.7
0.4
1.2
1.5
Option model
Equity dividend yields
0
20
0
11
%
Volatility of equity
stocks, equity and
other indices
4
120
4
98
%
Equity-to-FX
correlation
(29)
84
(29)
76
%
Equity-to-equity
correlation
(25)
100
(25)
100
%
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 Other
 
financial
liabilities designated
 
at fair
 
value and
 
Derivative financial
 
instruments,
 
as this would
 
not be meaningful.
 
3 The
 
range of
 
inputs is
 
not disclosed,
 
as there
 
is a
 
dispersion of
 
values
 
given the
 
diverse nature
 
of the
investments.
 
4 Debt issued designated at fair value
 
primarily consists of UBS
 
structured notes, which include
 
variable maturity notes with
 
various equity and foreign
 
exchange underlying risks,
 
rates-linked
 
and credit-
linked notes, all of which
 
have embedded derivative
 
parameters that are considered
 
to be unobservable. The
 
equivalent derivative instrument
 
parameters are presented in the respective
 
derivative financial instruments
lines in this table.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
323
 
 
Note 20
 
Fair value measurement (continued)
Significant unobservable inputs in Level
 
3 positions
This section discusses
 
the significant
 
unobservable inputs
 
used in
 
the valuation
 
of Level 3
 
instruments and
 
assesses the
potential effect that
 
a change in
 
each unobservable input
 
in isolation
 
may have
 
on a fair
 
value measurement. Relationships
between observable and unobservable
 
inputs have not been
 
included in the summary below.
 
Input
Description
Bond price
equivalent
–
 
Where
 
market prices are
 
not available
 
for a bond,
 
fair value is
 
measured by
 
comparison with
 
observable pricing data
 
from
similar instruments.
 
Factors considered
 
when selecting
 
comparable instruments include
 
credit quality, maturity
 
and industry
of the issuer.
 
Fair value may be
 
measured either by
 
a direct price
 
comparison or by conversion
 
of an instrument price
 
into a
yield (either as an outright yield
 
or as a spread to the relevant benchmark rate
 
).
 
–
 
For corporate
 
and municipal
 
bonds, the
 
range represents the
 
range of prices
 
from reference issuances
 
used in
 
determining
fair value. Bonds priced at 0 are distressed to the point that
 
no recovery is expected, while prices significantly in excess of 100
or
 
par
 
relate
 
to inflation
 
-linked
 
or structured
 
issuances
 
that
 
pay a
 
coupon in
 
excess
 
of
 
the
 
market benchmark
 
as of
 
the
measurement date.
–
 
For credit derivatives, the bond
 
price range represents the range of prices used
 
for reference instruments, which are typically
converted to an equivalent
 
yield or credit spread as
 
part of the valuation process.
Loan price
equivalent
–
 
Where market
 
prices are not
 
available for a
 
traded loan, fair
 
value is measured
 
by comparison with
 
observable pricing
 
data
for
 
similar
 
instruments.
 
Factors
 
considered
 
when
 
selecting
 
comparable
 
instruments
 
include
 
industry
 
segment,
 
collateral
quality, maturity and issuer-specific covenants.
 
Fair value may
 
be measured either by
 
a direct price
 
comparison or by
 
conversion
of an
 
instrument price
 
into a
 
yield. The
 
range represents
 
the range
 
of prices
 
derived
 
from reference
 
issuances of
 
a similar
credit quality
 
used to measure
 
fair value for
 
loans classified as
 
Level 3. Loans priced
 
at 0 are distressed
 
to the point
 
that no
recovery is expected, while a
 
current price of 100 represents a loan that is expected
 
to be repaid in full.
Credit spread
–
 
Valuation models for many credit
 
derivatives require an input
 
for the credit spread, which is
 
a reflection of the
 
credit quality
of
 
the
 
associated
 
referenced
 
underlying. The
 
credit
 
spread
 
of a
 
particular
 
security is
 
quoted
 
in
 
relation
 
to
 
the yield
 
on a
benchmark security or
 
reference rate, typically either US Treasury or
 
ARR, and is generally expressed
 
in terms of basis points.
An increase / (decrease) in credit spread will increase / (decrease) the
 
value of credit protection offered by credit default swaps
and other
 
credit derivative products.
 
The income statement
 
effect from such
 
changes depends
 
on the nature
 
and direction
of the positions held. Credit spreads
 
may be negative where the
 
asset is more creditworthy than
 
the benchmark against which
the spread is calculated.
 
A wider credit spread
 
represents decreasing creditworthiness.
 
The range represents
 
a diverse set of
underlyings,
 
with the
 
lower end
 
of the
 
range representing
 
credits of
 
the highest
 
quality
 
and
 
the upper
 
end of
 
the
 
range
representing greater levels of
 
credit risk.
Discount margin
–
 
The discount margin
 
(DM) spread represents the discount
 
rates applied to present
 
value cash flows of an asset to reflect
 
the
market return required for uncertainty in the estimated cash flows. DM
 
spreads are a rate or rates applied on top
 
of a floating
index (e.g.,
 
Secured Overnight
 
Financing Rate
 
(SOFR)) to discount
 
expected cash
 
flows. Generally, a
 
decrease / (increase)
 
in
the DM in isolation would result in
 
a higher / (lower) fair value.
–
 
The
 
high end
 
of the
 
range relates
 
to securities
 
that
 
are priced
 
low within
 
the
 
market
 
relative
 
to the
 
expected cash
 
flow
schedule. This indicates that
 
the market is pricing an increased risk of credit loss into
 
the security that is greater than what is
being
 
captured by the
 
expected cash
 
flow generation
 
process. The
 
low ends of
 
the ranges
 
are typical
 
of funding rates
 
on
better-quality instruments.
Funding spread
–
 
Structured financing transactions are valued using synthetic funding curves that best represent
 
the assets that are pledged as
collateral for
 
the transactions.
 
They are not representative
 
of where
 
UBS can fund itself
 
on an unsecured
 
basis, but
 
provide
an
 
estimate of
 
where UBS
 
can source
 
and
 
deploy secured
 
funding with
 
counterparties for
 
a given
 
type of
 
collateral. The
funding spreads are expressed in terms of basis points, and if funding spreads widen, this increases the effect of discounting.
 
–
 
A small proportion
 
of structured debt instruments and
 
non-structured fixed-rate
 
bonds within financial
 
liabilities designated
at fair value had an exposure to
 
funding spreads that was longer in duration
 
than the actively traded market.
Volatility
–
 
Volatility measures the variability of future prices for
 
a particular instrument and is generally expressed as
 
a percentage, where
a higher number reflects a more volatile
 
instrument, for which future price movements are
 
more likely to occur. Volatility is a
key input
 
into option
 
models, where
 
it is used
 
to derive
 
a probability-based
 
distribution of
 
future prices for
 
the underlying
instrument.
 
The
 
effect
 
of
 
volatility
 
on
 
individual
 
positions
 
within
 
the
 
portfolio
 
is
 
driven
 
primarily
 
by
 
whether
 
the
 
option
contract is a long
 
or short position. In
 
most cases, the fair value
 
of an option increases
 
as a result of an
 
increase in
 
volatility
and is
 
reduced by
 
a decrease
 
in volatility.
 
Generally, volatility
 
used in
 
the measurement
 
of fair value
 
is derived
 
from active-
market option
 
prices (referred to
 
as implied
 
volatility). A key
 
feature of
 
implied volatility is
 
the volatility “smile”
 
or “skew,”
which represents the effect of
 
pricing options of different option strikes at different
 
implied volatility levels.
–
 
Volatilities of low interest rates tend to be much higher than volatilities of high interest rates. In addition,
 
different currencies
may have significantly different
 
implied volatilities.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
324
 
 
Note 20
 
Fair value measurement (continued)
Input
Description
Correlation
–
 
Correlation measures the interrelationship between the movements of two variables. It is expressed as a percentage between
 
–100%
 
and
 
+100%,
 
where
 
+100%
 
represents
 
perfectly
 
correlated
 
variables
 
(meaning
 
a
 
movement
 
of
 
one
 
variable
 
is
associated with a
 
movement of the
 
other variable in the
 
same direction) and –100%
 
implies that the
 
variables are inversely
correlated
 
(meaning
 
a
 
movement
 
of
 
one
 
variable
 
is
 
associated
 
with
 
a
 
movement
 
of
 
the
 
other
 
variable
 
in
 
the
 
opposite
direction). The effect of correlation on the measurement of fair value depends on the specific terms of
 
the instruments being
valued, reflecting the range of
 
different payoff features within such instruments.
–
 
Equity-to-FX correlation is important
 
for equity options based on a currency other
 
than the currency of the underlying stock.
Equity-to-equity correlation is particularly important for
 
complex options that incorporate, in some manner, different equities
in the projected payoff.
Equity dividend
yields
–
 
The derivation
 
of a forward
 
price for an
 
individual stock or
 
index is important
 
for measuring
 
fair value for
 
forward or
 
swap
contracts and for measuring fair value using option pricing
 
models. The relationship between the current stock price and the
forward price is based on a combination of expected
 
future dividend levels and payment timings, and, to a lesser extent, the
relevant funding rates applicable to the stock
 
in question. Dividend yields are
 
generally expressed as an
 
annualized percentage
of the
 
share price, with
 
the lowest limit
 
of 0% representing
 
a stock that
 
is not expected
 
to pay any
 
dividend. The
 
dividend
yield and
 
timing represent
 
the most significant
 
parameter in
 
determining fair
 
value for
 
instruments that
 
are sensitive
 
to an
equity forward price.
 
f) 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
 
favorable
 
and
 
unfavorable
 
alternative
 
assumptions
 
would
change fair value significantly, and the estimated effect thereof. The table below does not represent the estimated effect
of stress
 
scenarios.
 
Interdependencies
 
between
 
Level 1,
 
2 and
 
3 parameters
 
have
 
not
 
been
 
incorporated in
 
the table.
Furthermore, direct
 
interrelationships
 
between the
 
Level 3 parameters
 
discussed below
 
are not
 
a significant element
 
of
the valuation uncertainty.
Sensitivity data is estimated
 
using a number of
 
techniques, including the
 
estimation of
 
price dispersion among
 
different
market participants,
 
variation in
 
modeling approaches
 
and reasonably possible
 
changes to assumptions
 
used within the
fair value measurement
 
process. The
 
sensitivity ranges
 
are not
 
always symmetrical
 
around
 
the fair values,
 
as the inputs
used in valuations are not
 
always precisely in the middle of the favorable and
 
unfavorable range.
Sensitivity data
 
is determined
 
at a product
 
or parameter level
 
and then
 
aggregated assuming
 
no diversification
 
benefit.
Diversification would
 
incorporate estimated
 
correlations
 
across different
 
sensitivity results
 
and,
 
as such,
 
would result
 
in
an
 
overall
 
sensitivity
 
that
 
would
 
be
 
less
 
than
 
the
 
sum
 
of
 
the
 
individual
 
component
 
sensitivities.
 
However,
 
the
 
Group
believes that the diversification benefit is not
 
significant to this analysis.
 
 
Sensitivity of fair value measurements
 
to changes in unobservable input
 
assumptions
1
31.12.22
31.12.21
USD m
Favorable
 
changes
Unfavorable
 
changes
Favorable
 
changes
Unfavorable
 
changes
Traded loans, loans
 
measured at fair value, loan
 
commitments and guarantees
19
(12)
19
(13)
Securities financing transactions
33
(37)
41
(53)
Auction rate securities
46
2
(46)
2
66
(66)
Asset-backed securities
27
(27)
20
(20)
Equity instruments
183
(161)
173
(146)
Interest rate derivatives, net
18
2
(12)
2
29
(19)
Credit derivatives, net
3
(4)
5
(8)
Foreign exchange derivatives,
 
net
10
(5)
19
(11)
Equity / index derivatives, net
361
(330)
368
(335)
Other
39
2
(62)
2
50
(73)
Total
738
(696)
790
(744)
1 Sensitivity
 
of issued and over-the
 
-counter debt instruments
 
is reported with
 
the equivalent
 
derivative or securities
 
financing instrument.
 
2 Includes refinements
 
applied in estimating
 
valuation uncertainty
 
across
various parameters.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
325
 
 
Note 20
 
Fair value measurement (continued)
 
g) Level 3 instruments: movements
 
during the period
The table below
 
presents additional
 
information about
 
material movements in
 
Level 3
 
assets and
 
liabilities measured at
fair value on a recurring basis,
 
excluding any related hedging
 
activity.
Assets and
 
liabilities transferred
 
into or
 
out of
 
Level 3 are presented
 
as if those
 
assets or
 
liabilities had
 
been transferred
at the beginning of
 
the year.
 
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 twelve months ended
 
31 December 2022
2
Financial assets at fair value held
 
for
trading
2.3
(0.3)
(0.3)
0.3
(1.8)
0.5
0.0
0.7
(0.3)
(0.0)
1.5
of which: Investment fund units
0.0
(0.0)
(0.0)
0.0
(0.0)
0.0
0.0
0.1
(0.0)
(0.0)
0.1
of which: Corporate and municipal
bonds
0.6
(0.0)
(0.0)
0.3
(0.6)
0.0
0.0
0.4
(0.0)
(0.0)
0.5
of which: Loans
1.4
(0.1)
(0.1)
0.0
(1.1)
0.5
0.0
0.0
(0.2)
0.0
0.6
Derivative financial instruments –
assets
1.1
0.6
0.3
0.0
0.0
0.4
(0.7)
0.1
(0.0)
(0.0)
1.5
of which: Interest rate
0.5
0.3
0.3
0.0
0.0
0.0
(0.2)
0.0
(0.1)
(0.0)
0.5
of which: Equity / index
0.4
0.2
0.1
0.0
0.0
0.4
(0.3)
0.1
(0.0)
(0.0)
0.7
of which: Credit
0.2
0.1
(0.1)
0.0
0.0
0.0
(0.2)
0.0
0.1
0.0
0.3
Financial assets at fair value not
 
held
for trading
4.2
0.1
0.1
0.7
(1.2)
0.1
(0.0)
0.2
(0.3)
(0.0)
3.7
of which: Loans
0.9
(0.0)
(0.0)
0.4
(0.4)
0.1
0.0
0.1
(0.3)
(0.0)
0.7
of which: Auction rate securities
1.6
0.1
0.0
0.0
(0.3)
0.0
0.0
0.0
0.0
0.0
1.3
of which: Equity instruments
0.7
0.0
0.0
0.1
(0.1)
0.0
0.0
0.1
0.0
(0.0)
0.8
Derivative financial instruments –
liabilities
2.2
(0.8)
(0.4)
0.0
0.0
1.1
(0.9)
0.3
(0.2)
(0.1)
1.7
of which: Interest rate
0.3
(0.3)
(0.0)
0.0
0.0
0.1
(0.0)
0.0
(0.0)
(0.0)
0.1
of which: Equity / index
1.5
(0.4)
(0.3)
0.0
0.0
0.8
(0.7)
0.1
(0.2)
(0.0)
1.2
of which: Credit
0.3
(0.1)
(0.0)
0.0
0.0
0.1
(0.1)
0.1
(0.0)
(0.0)
0.3
Debt issued designated at fair value
3
14.2
(2.2)
(1.8)
0.0
0.0
4.7
(3.1)
0.7
(3.4)
(0.3)
10.5
Other financial liabilities designated at
fair value
0.8
(0.1)
(0.1)
0.0
0.0
0.0
(0.1)
0.0
(0.0)
(0.0)
0.7
 
For the twelve months ended
 
31 December 2021
Financial assets at fair value held
 
for
trading
2.3
(0.0)
(0.1)
0.3
(1.6)
1.2
0.0
0.3
(0.3)
(0.0)
2.3
of which: Investment fund units
0.0
(0.0)
(0.0)
0.0
(0.0)
0.0
0.0
0.0
(0.0)
(0.0)
0.0
of which: Corporate and municipal
bonds
0.8
0.0
(0.0)
0.2
(0.4)
0.0
0.0
0.0
(0.1)
(0.0)
0.6
of which: Loans
1.1
0.0
(0.0)
0.0
(0.8)
1.2
0.0
0.0
(0.2)
0.0
1.4
Derivative financial instruments –
assets
1.8
(0.2)
(0.1)
0.0
0.0
0.5
(0.7)
0.1
(0.3)
(0.0)
1.1
of which: Interest rate
0.5
0.1
0.1
0.0
0.0
0.1
(0.2)
0.0
(0.1)
(0.0)
0.5
of which: Equity / index
0.9
(0.1)
(0.1)
0.0
0.0
0.3
(0.4)
0.0
(0.2)
(0.0)
0.4
of which: Credit
0.3
(0.1)
(0.1)
0.0
0.0
0.0
(0.1)
0.0
(0.0)
0.0
0.2
Financial assets at fair value not
 
held
for trading
3.9
0.1
0.1
1.0
(0.6)
0.0
0.0
0.1
(0.3)
(0.0)
4.2
of which: Loans
0.9
(0.0)
0.0
0.6
(0.3)
0.0
0.0
0.0
(0.3)
(0.0)
0.9
of which: Auction rate securities
1.5
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.6
of which: Equity instruments
0.5
0.1
0.1
0.1
(0.1)
0.0
0.0
0.0
(0.0)
(0.0)
0.7
Derivative financial instruments –
liabilities
3.5
0.2
(0.0)
0.0
0.0
0.9
(1.8)
0.0
(0.5)
(0.0)
2.2
of which: Interest rate
0.5
(0.1)
(0.1)
0.0
0.0
0.0
(0.1)
0.0
(0.0)
(0.0)
0.3
of which: Equity / index
2.3
0.3
0.1
0.0
0.0
0.8
(1.5)
0.0
(0.4)
(0.0)
1.5
of which: Credit
0.5
(0.1)
(0.1)
0.0
0.0
0.0
(0.0)
0.0
(0.1)
(0.0)
0.3
Debt issued designated at fair value
11.0
0.7
0.6
0.0
0.0
8.0
(4.2)
0.2
(1.2)
(0.2)
14.2
Other financial liabilities designated at
fair value
0.7
0.0
0.0
0.0
0.0
0.4
(0.2)
0.0
(0.0)
(0.0)
0.8
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.
 
2 Total
 
Level 3
 
assets as
 
of 31 December
 
2022
 
were USD
6.8
bn
(31 December 2021:
 
USD
7.6
bn). Total Level
 
3 liabilities
 
as of 31 December
 
2022 were
 
USD
13.0
bn (31 December
 
2021: USD
17.4
bn).
 
3 Of the
 
USD
2.2
bn in net gains
 
/ losses
 
that is included
 
in comprehensive
income, USD
1.7
bn is recognized
 
in the Income
 
statement and
 
USD
0.5
bn is recognized
 
in the Statement
 
of comprehensive
 
income in
 
Gains / (losses)
 
from own credit
 
on financial liabilities
 
designated at fair
 
value,
before tax.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
326
 
 
Note 20
 
Fair value measurement (continued)
 
h) Maximum exposure to credit risk
 
for financial instruments measured
 
at fair value
The tables
 
below provide
 
the Group’s
 
maximum exposure
 
to credit risk
 
for financial
 
instruments measured
 
at fair value
and
 
the
 
respective
 
collateral
 
and
 
other
 
credit
 
enhancements
 
mitigating
 
credit
 
risk
 
for
 
these
 
classes
 
of
 
financial
instruments.
 
The maximum exposure
 
to credit risk
 
includes the
 
carrying amounts
 
of financial instruments
 
recognized on
 
the balance
sheet subject to credit risk
 
and the notional amounts for off-balance sheet arrangements. Where information is available,
collateral is presented at fair
 
value. For other collateral,
 
such as real estate,
 
a reasonable alternative
 
value is used. Credit
enhancements,
 
such
 
as
 
credit
 
derivative
 
contracts
 
and
 
guarantees,
 
are
 
included
 
at
 
their
 
notional
 
amounts.
 
Both
 
are
capped
 
at the
 
maximum exposure
 
to credit
 
risk for
 
which they
 
serve as
 
security. The
 
“Risk
 
management and
 
control”
section of this
 
report describes
 
management’s view
 
of credit
 
risk and
 
the related exposures,
 
which can differ
 
in certain
respects from the requirements of IFRS.
 
Maximum exposure to credit
 
risk
 
31.12.22
Maximum
exposure to
credit risk
Collateral
Credit enhancements
Exposure to
credit risk
after collateral
and credit
enhancements
USD bn
Cash
collateral
received
Collateralized
by equity and
debt
instruments
Secured by
real estate
Other
 
collateral
Netting
Credit
derivative
contracts
Guarantees
 
Financial assets measured at
 
fair value on the balance
 
sheet
1
Financial assets at fair value
 
held for trading – debt instruments
2,3
16.5
 
16.5
Derivative financial instruments
4
150.1
5.9
133.5
10.7
Brokerage receivables
17.6
17.3
0.3
Financial assets at fair value not
 
held for trading – debt instruments
5
44.8
11.4
33.4
Total financial assets
 
measured at fair value
229.0
0.0
34.6
0.0
0.0
133.5
0.0
0.0
61.0
Guarantees
6
0.2
0.2
0.0
31.12.21
Maximum
exposure to
credit risk
Collateral
Credit enhancements
Exposure to
credit risk
after collateral
and credit
enhancements
USD bn
Cash
collateral
received
Collateralized
by equity and
debt
instruments
Secured by
real estate
Other
 
collateral
Netting
Credit
derivative
contracts
Guarantees
 
Financial assets measured at
 
fair value on the balance
 
sheet
1
Financial assets at fair value
 
held for trading – debt instruments
2,3
22.4
 
22.4
Derivative financial instruments
4
118.1
4.2
103.2
10.7
Brokerage receivables
21.8
21.6
0.2
Financial assets at fair value not
 
held for trading – debt instruments
5
37.0
11.2
25.7
Total financial assets
 
measured at fair value
199.4
0.0
37.1
0.0
0.0
103.2
0.0
0.0
59.1
Guarantees
6
0.2
0.2
0.0
1 The maximum exposure
 
to loss is generally
 
equal to the carrying amount
 
and subject to change
 
over time with market
 
movements.
 
2 These positions
 
are generally managed under the
 
market risk framework.
 
For
the purpose of this
 
disclosure, collateral
 
and credit enhancements
 
were not considered.
 
3 Does not include
 
investment fund
 
units.
 
4 The
 
amount shown in the
 
“Netting” column
 
represents the
 
netting potential
not recognized on the balance
 
sheet. Refer to Note
 
21 for more information.
 
5 Financial assets
 
at fair value not
 
held for trading collateralized
 
by securities consisted
 
of structured loans and reverse
 
repurchase and
securities borrowing agreements.
 
6 The amount
 
shown in the “Guarantees”
 
column largely relates to
 
sub-participations.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
327
 
 
Note 20
 
Fair value measurement (continued)
 
i) Financial instruments not measured
 
at fair value
The table below provides
 
the estimated fair values of financial instruments
 
not measured
 
at fair value.
 
Financial instruments not measured
 
at fair value
31.12.22
31.12.21
Carrying
amount
Fair value
Carrying
amount
Fair value
USD bn
Total
Carrying
amount
approximates
fair value
1
Level
 
1
Level 2
Level 3
Total
Total
Carrying
amount
approximates
fair value
1
Level 1
Level 2
Level 3
Total
Assets
Cash and balances at central banks
169.4
169.4
0.1
0.0
0.0
169.4
192.8
192.7
0.1
0.0
0.0
192.8
Loans and advances to banks
14.8
14.0
0.0
0.7
0.0
14.8
15.5
14.8
0.0
0.7
0.0
15.5
Receivables from securities financing
transactions measured at amortized cost
67.8
64.3
0.0
1.8
1.7
67.8
75.0
71.6
0.0
1.3
2.1
75.0
Cash collateral receivables on derivative
instruments
35.0
35.0
0.0
0.0
0.0
35.0
30.5
30.5
0.0
0.0
0.0
30.5
Loans and advances to customers
387.2
134.3
0.0
45.9
194.7
374.9
397.8
163.1
0.0
43.8
190.1
396.9
Other financial assets measured at amortized
cost
2
53.3
12.9
10.3
25.1
2.5
50.8
26.2
4.1
9.3
10.7
2.4
26.5
Liabilities
Amounts due to banks
11.6
8.9
0.0
2.7
0.0
11.6
13.1
9.1
0.0
4.0
0.0
13.1
Payables from securities financing
transactions measured at amortized cost
4.2
3.5
0.0
0.7
0.0
4.2
5.5
4.1
0.0
1.5
0.0
5.5
Cash collateral payables on derivative
instruments
36.4
36.4
0.0
0.0
0.0
36.4
31.8
31.8
0.0
0.0
0.0
31.8
Customer deposits
525.1
491.3
0.0
33.6
0.0
524.8
542.0
535.4
0.0
6.6
0.0
542.0
Debt issued measured at amortized cost
114.6
15.4
0.0
98.1
0.0
113.5
139.2
15.8
0.0
125.3
0.0
141.1
Other financial liabilities measured at
amortized cost
3
6.2
6.2
0.0
0.0
0.0
6.2
5.4
5.4
0.0
0.0
0.0
5.4
1 Includes certain financial instruments
 
where the carrying amount
 
is a reasonable approximation
 
of the fair value
 
due to the instruments’
 
short-term nature (instruments
 
that are receivable
 
or payable on demand,
 
or
with a remaining maturity (excluding the effects
 
of callable features) of three months or less).
 
2 Effective 1 April 2022, a portfolio of assets
 
previously classified as Financial assets measured at
 
fair value through other
comprehensive income was
 
reclassified to Other financial
 
assets measured at amortized
 
cost. Refer to Note 1 for information.
 
3 Excludes lease liabilities.
 
The fair values
 
included
 
in the table
 
above have
 
been calculated for
 
disclosure purposes
 
only.
 
The valuation
 
techniques
and assumptions described
 
below relate only
 
to the fair value of UBS’s
 
financial instruments
 
not measured at fair
 
value.
Other institutions
 
may use
 
different
 
methods
 
and
 
assumptions
 
for their
 
fair value
 
estimations,
 
and
 
therefore such
 
fair
value disclosures cannot necessarily be compared from one financial institution to another.
 
The following principles were
applied when determining
 
fair value estimates for financial instruments not
 
measured at fair value:
–
 
For financial
 
instruments
 
with
 
remaining
 
maturities
 
greater
 
than three
 
months,
 
the
 
fair value
 
was determined
 
from
quoted market prices, if available.
–
 
Where quoted market prices were not
 
available, the fair values
 
were estimated by discounting
 
contractual cash flows
using
 
current
 
market interest
 
rates or
 
appropriate
 
yield curves
 
for
 
instruments
 
with
 
similar credit
 
risk and
 
maturity.
These estimates generally include adjustments
 
for counterparty credit risk or UBS’s
 
own credit.
–
 
For short-term financial instruments
 
with remaining maturities
 
of three months or
 
less, the carrying amount,
 
which is
net of credit loss allowances, is generally
 
considered a reasonable
 
estimate of fair value.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
328
 
 
Note 21
 
Offsetting financial assets and financial
 
liabilities
UBS enters into netting
 
agreements with
 
counterparties to manage
 
the credit risks
 
associated primarily
 
with repurchase
and
 
reverse
 
repurchase
 
transactions,
 
securities
 
borrowing
 
and
 
lending,
 
over-the-counter
 
derivatives,
 
and
 
exchange-
traded
 
derivatives.
 
These
 
netting
 
agreements
 
and
 
similar
 
arrangements
 
generally
 
enable
 
the
 
counterparties
 
to
 
set
 
off
liabilities against available assets received
 
in the ordinary course
 
of business and
 
/ or in the event that the counterparties
to the transaction are unable
 
to fulfill their contractual obligations.
 
The tables
 
below provide
 
a summary of financial
 
assets and
 
financial liabilities
 
subject to
 
offsetting, enforceable
 
master
netting
 
arrangements
 
and
 
similar
 
agreements,
 
as
 
well
 
as
 
financial
 
collateral
 
received
 
or
 
pledged
 
to
 
mitigate
 
credit
exposures for these financial instruments
 
.
 
The
 
Group
 
engages
 
in
 
a
 
variety of
 
counterparty
 
credit
 
risk
 
mitigation
 
strategies
 
in
 
addition
 
to
 
netting
 
and
 
collateral
arrangements. Therefore,
 
the net amounts presented
 
in the tables below
 
do not purport
 
to represent their actual
 
credit
risk exposure.
 
 
Financial assets subject to offsetting, enforceable
 
master netting arrangements and
 
similar agreements
Assets subject to netting
 
arrangements
 
Netting recognized on the balance sheet
Netting potential not recognized on
the balance sheet
3
Assets not
subject to netting
arrangements
4
Total assets
As of 31.12.22, USD bn
Gross assets
before netting
Netting with
 
gross liabilities
2
Net assets
recognized
on the
balance
 
sheet
Financial
liabilities
Collateral
received
Assets after
consideration
of
netting
potential
Assets
recognized
on the
balance
 
sheet
Total assets
after
consideration
of netting
 
potential
Total assets
recognized
 
on the
 
balance
sheet
Receivables from securities financing
transactions measured at amortized cost
60.8
(11.1)
49.6
(3.0)
(46.4)
0.3
18.2
18.5
67.8
Derivative financial instruments
 
147.4
(2.5)
144.9
(110.9)
(28.5)
5.5
5.2
10.7
150.1
Cash collateral receivables on
 
derivative instruments
1
33.5
0.0
33.5
(20.9)
(1.9)
10.6
1.5
12.1
35.0
Financial assets at fair value
 
not held for trading
85.6
(76.8)
8.7
(1.5)
(7.3)
0.0
51.0
51.0
59.8
of which: reverse
 
repurchase agreements
84.4
(76.8)
7.6
(1.5)
(6.1)
0.0
0.1
0.1
7.7
Total assets
327.2
(90.4)
236.8
(136.3)
(84.1)
16.4
76.0
92.3
312.8
As of 31.12.21, USD bn
Receivables from securities financing
transactions measured at amortized cost
67.7
(13.8)
53.9
(2.9)
(51.0)
0.0
21.1
21.1
75.0
Derivative financial instruments
 
116.0
(3.6)
112.4
(88.9)
(18.5)
5.0
5.7
10.7
118.1
Cash collateral receivables on
 
derivative instruments
1
29.4
0.0
29.4
(15.2)
(3.3)
11.0
1.1
12.1
30.5
Financial assets at fair value
 
not held for trading
93.1
(87.6)
5.5
(1.1)
(4.4)
0.0
54.6
54.6
60.1
of which: reverse
 
repurchase agreements
93.1
(87.6)
5.5
(1.1)
(4.4)
0.0
0.3
0.3
5.8
Total assets
306.2
(105.0)
201.2
(108.1)
(77.2)
15.9
82.6
98.5
283.7
1 The net
 
amount of
 
Cash collateral
 
receivables
 
on derivative
 
instruments recognized
 
on the balance
 
sheet includes
 
certain OTC
 
derivatives that
 
are net
 
settled on a
 
daily basis either
 
legally or in
 
substance under
IAS 32 principles and
 
exchange-traded
 
derivatives that
 
are economically
 
settled on a daily
 
basis.
 
2 The logic
 
of the table
 
results in amounts
 
presented in
 
the “Netting with
 
gross liabilities”
 
column corresponding
directly to the amounts
 
presented in the “Netting
 
with gross assets” column
 
in the liabilities table
 
presented below.
 
Netting in this column
 
for reverse repurchase
 
agreements presented
 
within the lines “Receivables
from securities financing
 
transactions
 
measured at amortized
 
cost” and
 
“Financial assets
 
at fair value
 
not held for
 
trading”
 
taken together
 
corresponds
 
to the amounts
 
presented for
 
repurchase agreements
 
in the
“Payables from securities financing transactions
 
measured at amortized cost” and “Other financial
 
liabilities designated at fair value” lines in
 
the liabilities table presented below.
 
3 For the purpose of this disclosure,
the amounts of financial instruments
 
and cash collateral presented
 
have been capped so as not to exceed
 
the net amount of fin
 
ancial assets presented on the balance
 
sheet; i.e., over-collateralization,
 
where it exists,
is not reflected in the table.
 
4 Includes assets not subject
 
to enforceable netting
 
arrangements and other
 
out-of-scope items.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
329
 
 
Note 21
 
Offsetting financial assets and financial
 
liabilities (continued)
 
Financial liabilities subject to offsetting,
 
enforceable master netting
 
arrangements and similar agreements
Liabilities subject to netting
 
arrangements
 
Netting recognized on the balance sheet
Netting potential not recognized
 
on the balance sheet
3
Liabilities not
subject
 
to netting
 
arrangements
4
Total liabilities
As of 31.12.22, USD bn
Gross
liabilities
before
netting
Netting with
 
gross assets
2
Net
 
liabilities
recognized
on the
balance
sheet
Financial
assets
Collateral
pledged
Liabilities
after
consideration
 
of netting
potential
Liabilities
recognized
on the
balance
 
sheet
Total
 
liabilities
 
after
consideration
of netting
potential
Total
 
liabilities
recognized
on the
balance
 
sheet
Payables from securities financing
transactions measured at amortized cost
14.1
(11.1)
3.0
(1.3)
(1.8)
0.0
1.2
1.2
4.2
Derivative financial instruments
 
150.3
(2.5)
147.8
(110.9)
(26.2)
10.7
7.1
17.8
154.9
Cash collateral payables on
 
derivative instruments
1
34.9
0.0
34.9
(20.0)
(1.9)
13.0
1.6
14.5
36.4
Other financial liabilities
 
designated at fair value
92.5
(76.9)
15.6
(3.2)
(12.4)
0.0
14.6
14.6
30.2
of which: repurchase agreements
92.1
(76.9)
15.3
(3.2)
(12.1)
0.0
0.1
0.1
15.3
Total liabilities
291.7
(90.4)
201.3
(135.3)
(42.3)
23.7
24.5
48.1
225.8
As of 31.12.21, USD bn
Payables from securities financing
transactions measured at amortized cost
16.9
(12.8)
4.1
(1.8)
(2.3)
0.0
1.4
1.4
5.5
Derivative financial instruments
 
118.4
(3.6)
114.9
(88.9)
(18.1)
7.9
6.4
14.3
121.3
Cash collateral payables on
 
derivative instruments
1
30.4
0.0
30.4
(13.1)
(3.3)
14.0
1.4
15.4
31.8
Other financial liabilities
 
designated at fair value
94.8
(88.6)
6.2
(2.2)
(3.8)
0.2
23.9
24.1
30.1
of which: repurchase agreements
94.6
(88.6)
6.0
(2.2)
(3.8)
0.0
0.4
0.4
6.4
Total liabilities
260.6
(105.0)
155.6
(106.0)
(27.5)
22.1
33.1
55.2
188.7
1 The net amount of Cash collateral
 
payables on derivative instruments
 
recognized on the balance sheet
 
includes certain OTC
 
derivatives that are net settled
 
on a daily basis either legally or in substance
 
under IAS 32
principles and exchange-traded derivativ
 
es that are economically settled on a daily basis.
 
2 The logic of the table results in amounts presented in the “Netting with gross
 
assets” column corresponding to the amounts
presented in the “Netting with gross liabilities” column in the assets table presented above. Netting in this column for
 
repurchase agreements presented within the lines “Payables from
 
securities financing transactions
measured at amortized
 
cost” and
 
“Other financial
 
liabilities designated
 
at fair
 
value” taken
 
together corresponds
 
to the
 
amounts presented
 
for reverse
 
repurchase agreements
 
in the “Receivables
 
from securities
financing transactions
 
measured at amortized cost”
 
and “Financial assets
 
at fair value
 
not held for trading”
 
lines in the
 
assets table presented
 
above.
 
3 For the purpose
 
of this disclosure,
 
the amounts of financial
instruments and cash collateral
 
presented have been capped
 
so as not to exceed the
 
net amount of financial liabilities
 
presented on the balance
 
sheet; i.e., over-collateralization,
 
where it exists, is
 
not reflected in the
table.
 
4 Includes liabilities
 
not subject to enforceable netting
 
arrangements and
 
other out-of-scope items.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
330
 
 
Note 22
 
Restricted and transferred financial
 
assets
This Note
 
provides
 
information about
 
restricted financial
 
assets (Note
 
22a),
 
transfers of
 
financial assets
 
(Note
 
22b
 
and
22c) and financial assets that are
 
received as collateral with the right
 
to resell or repledge
 
these assets (Note 22d).
 
a) Restricted financial assets
Restricted
 
financial assets
 
consist
 
of
 
assets
 
pledged
 
as collateral
 
against
 
an
 
existing
 
liability or
 
contingent
 
liability and
other assets that are otherwise explicitly
 
restricted such that they cannot
 
be used to secure funding.
 
Financial
 
assets
 
are
 
mainly
 
pledged
 
as
 
collateral
 
in
 
securities
 
lending
 
transactions,
 
in
 
repurchase
 
transactions,
 
against
loans from Swiss mortgage institutions and
 
in connection with the
 
issuance of covered bonds. The
 
Group generally enters
into repurchase and securities lending
 
arrangements under standard market agreements. For securities lending,
 
the cash
received as
 
collateral may
 
be more
 
or less
 
than the
 
fair value
 
of the
 
securities loaned,
 
depending on
 
the nature
 
of the
transaction.
 
For repurchase agreements, the fair
 
value of the
 
collateral sold under an
 
agreement to repurchase is
 
generally
in excess
 
of
 
the cash
 
borrowed.
 
Pledged
 
mortgage loans
 
serve as
 
collateral
 
for existing
 
liabilities against
 
Swiss
 
central
mortgage institutions
 
and for
 
existing covered
 
bond
 
issuances of
 
USD
8,962
m as of
 
31 December
 
2022
 
(31 December
2021: USD
10,843
m).
Other restricted financial assets
 
include assets protected under client
 
asset segregation rules, assets held
 
under unit-linked
investment contracts to back related liabilities to the policy holders and
 
assets held in certain jurisdictions to comply with
explicit minimum local asset maintenance requirements. The carrying amount of
 
the liabilities associated with these
 
other
restricted financial
 
assets
 
is generally
 
equal
 
to the
 
carrying
 
amount
 
of the
 
assets, with
 
the exception
 
of assets
 
held
 
to
comply with local asset maintenance requirements,
 
for which the associated liabilities
 
are greater.
 
 
Restricted financial assets
 
USD m
31.12.22
31.12.21
Restricted
financial assets
of which: assets
pledged as
collateral that
may be sold or
repledged by
counterparties
Restricted
financial assets
of which: assets
pledged as
collateral that
may be sold or
repledged by
counterparties
Financial assets pledged as collateral
Financial assets at fair value held for trading
57,377
36,742
63,725
43,397
Loans and advances to customers
1
15,195
18,160
Financial assets at fair value not held for trading
1,509
1,220
961
961
Debt securities classified as Other financial assets measured
 
at amortized cost
3,432
2,685
2,234
1,870
Total financial assets pledged
 
as collateral
77,513
85,079
Other restricted financial assets
Loans and advances to banks
3,689
3,408
Financial assets at fair value held for trading
162
392
Cash collateral receivables on derivative
 
instruments
5,155
4,747
Loans and advances to customers
1,127
1,237
Financial assets at fair value not held for trading
14,478
22,765
Financial assets measured at fair value through
 
other comprehensive income
1,842
894
Other
859
97
Total other restricted
 
financial assets
 
27,312
33,540
Total financial assets pledged
 
and other restricted financial assets
2
104,825
118,619
1 Mainly related to mortgage
 
loans that serve
 
as collateral for existing
 
liabilities toward
 
Swiss central mortgage
 
institutions and for existing
 
covered bond issuances.
 
Of these pledged
 
mortgage loans,
 
approximately
USD
3.1
bn as
 
of 31 December
 
2022 (31
 
December 2021:
 
approximately
 
USD
2.7
bn) could
 
be withdrawn
 
or used for
 
future liabilities
 
or covered bond
 
issuances without
 
breaching existing
 
collateral requirements.
 
2 Does not include assets placed
 
with central banks related
 
to undrawn credit lines
 
and for payment, clearing
 
and settlement purposes
 
(31 December 2022:
 
USD
5.9
bn; 31 December 2021:
 
USD
4.4
bn).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
331
 
 
Note 22
 
Restricted and transferred financial
 
assets (continued)
In addition to restrictions on financial
 
assets, UBS Group AG and its subsidiaries are, in certain cases,
 
subject to regulatory
requirements
 
that
 
affect
 
the
 
transfer
 
of
 
dividends
 
and
 
capital
 
within
 
the
 
Group,
 
as
 
well
 
as
 
intercompany
 
lending.
Supervisory authorities
 
also may
 
require entities
 
to measure
 
capital and
 
leverage ratios
 
on a
 
stressed basis,
 
such as
 
the
Federal
 
Reserve
 
Board’s
 
Comprehensive
 
Capital
 
Analysis
 
and
 
Review
 
(CCAR)
 
process,
 
which
 
may
 
limit
 
the
 
relevant
subsidiaries’ ability to make distributions
 
of capital based on the results
 
of those tests.
Supervisory
 
authorities
 
generally
 
have
 
discretion
 
to
 
impose
 
higher
 
requirements
 
or
 
to
 
otherwise
 
limit
 
the
 
activities
 
of
subsidiaries.
 
Non-regulated subsidiaries
 
are generally not subject to such
 
requirements and transfer
 
restrictions. However,
 
restrictions
can
 
also
 
be
 
the
 
result
 
of
 
different
 
legal,
 
regulatory,
 
contractual,
 
entity-
 
or
 
country-specific
 
arrangements
 
and
 
/
 
or
requirements.
›
 
Refer to the “Financial
 
and regulatory key figures
 
for our significant
 
regulated subsidiaries
 
and sub-groups” section
 
of this report
for financial information
 
about significant
 
regulated subsidiaries
 
of the Group
 
b) Transferred financial assets that are
 
not derecognized in their
 
entirety
The
 
table
 
below
 
presents
 
information
 
for
 
financial
 
assets
 
that
 
have
 
been
 
transferred
 
but
 
are
 
subject
 
to
 
continued
recognition in full, as well as recognized
 
liabilities associated with those transferred
 
assets.
 
Transferred
 
financial assets subject to continued recognition
 
in full
 
USD m
31.12.22
31.12.21
Carrying amount
of transferred
assets
Carrying amount of
 
associated liabilities
 
recognized
 
on balance sheet
Carrying amount
of transferred
assets
Carrying amount of
 
associated liabilities
 
recognized
 
on balance sheet
Financial assets at fair value held for trading that
 
may be sold or repledged by counterparties
36,742
16,470
43,397
17,687
relating to securities lending and repurchase agreements in exchange
 
for cash received
16,756
16,470
17,970
17,687
relating to securities lending agreements in exchange for
 
securities received
18,908
24,146
relating to other financial asset transfers
1,078
1,281
Financial assets at fair value not held for trading
 
that may be sold or repledged
 
by
counterparties
1,220
1,050
961
898
Debt securities classified as Other financial assets measured
 
at amortized cost that may be
sold or repledged by counterparties
2,685
2,302
1,870
1,725
Total financial assets transferred
40,647
19,822
46,227
20,311
 
 
Transactions
 
in which
 
financial assets
 
are transferred,
 
but continue
 
to be
 
recognized
 
in their entirety
 
on UBS’s
 
balance
sheet include
 
securities lending
 
and
 
repurchase
 
agreements,
 
as well
 
as other
 
financial asset
 
transfers. Repurchase
 
and
securities lending arrangements
 
are, for the
 
most part,
 
conducted under standard market
 
agreements and are undertaken
with counterparties subject to UBS’s
 
normal credit risk control processes.
 
›
 
Refer to Note 1a
 
item 2e for more information
 
about repurchase and securities
 
lending agreements
As of 31 December 2022,
 
approximately
45
% of the transferred financial assets were
 
assets held for trading transferred
in
 
exchange
 
for
 
cash,
 
in
 
which
 
case
 
the
 
associated
 
recognized
liability
 
represents
 
the
 
amount
 
to
 
be
 
repaid
 
to
counterparties. For securities lending and repurchase agreements, a haircut of
 
between
0
% and
15
% is generally
 
applied
to the transferred
 
assets, which
 
results in
 
associated liabilities
 
having
 
a carrying
 
amount
 
below the
 
carrying amount
 
of
the transferred
 
assets. The
 
counterparties to
 
the associated
 
liabilities presented
 
in the
 
table above have
 
full recourse
 
to
UBS.
In securities lending
 
arrangements entered
 
into in
 
exchange for
 
the receipt
 
of other
 
securities as
 
collateral, neither
 
the
securities received nor
 
the obligation to return
 
them are recognized
 
on UBS’s balance sheet,
 
as the risks and rewards
 
of
ownership are
 
not transferred to
 
UBS. In
 
cases where
 
such financial assets
 
received are
 
subsequently sold
 
or repledged
in another transaction, this is not considered
 
to be a transfer of financial assets.
Other financial asset transfers primarily include securities transferred to collateralize derivative transactions, for which the
carrying amount of
 
associated liabilities is
 
not provided in
 
the table
 
above,
 
because those replacement
 
values are
 
managed
on
 
a portfolio
 
basis across
 
counterparties and
 
product types,
 
and therefore
 
there is
 
no direct
 
relationship
 
between
 
the
specific collateral pledged and
 
the associated liability.
Transferred financial assets that are not
 
subject to derecognition
 
in full but remain on the balance
 
sheet to the extent of
the Group’s continuing involvement were
 
not material as of 31 December
 
2022 and as of 31
 
December 2021.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
332
 
 
Note 22
 
Restricted and transferred financial
 
assets (continued)
 
c) Transferred financial assets that
 
are derecognized in their entirety
 
with continuing involvement
Continuing involvement
 
in a transferred
 
and fully derecognized
 
financial asset may result
 
from contractual provisions
 
in
the particular transfer
 
agreement or
 
from a separate
 
agreement, with
 
the counterparty
 
or a
 
third party,
 
entered into
 
in
connection with the transfer.
 
The fair value and carrying amount of UBS’s
 
continuing involvement from transferred positions
 
as of 31 December 2022
and 31 December 2021 was not material. Life-to-date losses
 
reported in prior periods primarily relate
 
to legacy positions
in securitization vehicles that have been
 
fully marked down, with no
 
remaining exposure to loss.
 
d) Off-balance sheet assets received
The table below presents assets received from third parties
 
that can be sold or repledged and that are not recognized on
the balance sheet, but that are held
 
as collateral, including
 
amounts that have been sold or repledged.
 
Off-balance sheet assets received
USD m
31.12.22
31.12.21
Fair value of assets received that can
 
be sold or repledged
434,023
497,828
received as collateral under reverse repurchase,
 
securities borrowing
 
and lending arrangements, derivative and
 
other transactions
 
1
418,847
483,426
received in unsecured borrowings
15,175
14,402
Thereof sold or repledged
 
2
331,805
367,440
in connection with financing activities
288,752
319,176
to satisfy commitments under short sale transactions
29,515
31,688
in connection with derivative and other
 
transactions
 
1
13,538
16,575
1 Includes securities received as
 
initial margin from its clients
 
that UBS is required to remit
 
to central counterparties,
 
brokers and deposit
 
banks through its exchange
 
-traded derivative
 
clearing and execution
 
services.
 
2 Does not include off-balance
 
sheet securities (31 December
 
2022: USD
9.9
bn; 31 December 2021:
 
USD
12.7
bn) placed with central
 
banks related to undrawn
 
credit lines and for
 
payment, clearing and
 
settlement
purposes for which there are no associated
 
liabilities or contingent liabilities.
 
 
 
Note 23
 
Maturity analysis of assets and liabilities
 
a) Maturity analysis of carrying
 
amounts of assets and liabilities
The table
 
below
 
provides
 
an analysis
 
of carrying
 
amounts
 
of balance
 
sheet assets
 
and
 
liabilities, as
 
well as
 
off-balance
sheet
 
exposures
 
by
 
residual
 
contractual
 
maturity
 
as
 
of
 
the
 
reporting
 
date.
 
The
 
residual
 
contractual maturity
 
of
 
assets
includes the
 
effect of callable features.
 
The residual
 
contractual maturity of liabilities
 
and off-balance
 
sheet exposures
 
is
based on the earliest date on
 
which a third party could require
 
UBS to pay.
Derivative financial instruments
 
and financial assets
 
and liabilities at
 
fair value held
 
for trading are
 
presented in
 
the
Due
within 1 month
 
column;
 
however, the respective contractual maturities may
 
extend over significantly longer
 
periods.
Assets held to hedge unit-linked investment contracts (presented within
Financial assets at fair value not held for
 
trading
)
are
 
presented
 
in
 
the
Due
 
within 1
 
month
 
column,
 
consistent
 
with
 
the
 
maturity assigned
 
to
 
the related
 
amounts
 
due
under unit-linked investment contracts (presented
 
within
Other financial liabilities designated
 
at fair value
).
Other financial assets and liabilities with no contractual maturity, such
 
as equity securities, are presented in the
Perpetual
/ Not applicable
 
column.
 
Undated or perpetual instruments are classified based on the contractual notice period
 
that the
counterparty
 
of
 
the
 
instrument
 
is
 
entitled
 
to
 
give.
 
Where
 
there
 
is no
 
contractual notice
 
period,
 
undated
 
or
 
perpetual
contracts are presented in
 
the
Perpetual / Not applicable
 
column.
Non-financial assets
 
and liabilities
 
with no
 
contractual maturity
 
are generally
 
included
 
in the
Perpetual /
 
Not applicable
 
column.
Loan commitments are classified based
 
on the earliest date they can be drawn
 
down.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
333
 
 
Note 23
 
Maturity analysis of assets and liabilities
 
(continued)
31.12.22
USD bn
Due within
 
1 month
Due between
 
1 and 3
months
Due between
 
3 and 12
months
Due between
 
1 and 2 years
Due between
 
2 and 5 years
Due over
 
5 years
Perpetual /
Not
applicable
Total
Assets
Total financial assets measured at
 
amortized cost
1
422.6
28.7
34.4
78.7
70.4
92.7
727.6
Loans and advances to customers
139.4
16.3
28.3
74.9
55.5
72.9
387.2
Total financial assets measured at fair value through
 
profit or
loss
300.2
10.0
7.8
3.6
9.9
2.0
1.9
335.3
Financial assets at fair value not held for trading
24.6
10.0
7.8
3.6
9.9
2.0
1.9
59.8
Financial assets measured at fair value through
 
other
comprehensive income
1
0.3
0.9
0.9
0.1
0.0
0.0
2.2
Total non-financial assets
7.6
0.2
2.0
0.4
29.0
39.2
Total assets
730.7
39.6
43.4
82.4
82.3
95.1
31.0
1,104.4
Liabilities
Total financial liabilities measured at amortized
 
cost
521.9
40.0
49.6
20.5
35.1
23.4
11.1
701.5
Customer deposits
463.0
28.3
23.8
7.5
2.2
0.3
525.1
Debt issued measured at amortized cost
6.6
8.8
23.3
11.9
31.1
21.9
11.1
114.6
of which: non-subordinated fixed rate debt
3.1
4.0
13.2
7.6
28.4
21.9
78.1
of which: non-subordinated floating rate debt
1.5
4.8
10.1
1.9
2.2
0.0
20.5
of which: subordinated fixed-rate debt
2.0
2.4
0.5
11.1
16.0
Total financial liabilities measured at fair value
 
through
profit or loss
2
265.9
13.8
16.3
19.6
7.3
10.5
333.4
Debt issued designated at fair value
9.3
12.3
15.9
19.3
6.9
10.0
73.6
of which: non-subordinated fixed rate debt
0.5
2.3
5.6
3.6
2.0
3.4
17.4
of which: non-subordinated floating rate debt
8.8
10.0
10.3
15.7
4.9
6.6
56.2
Total non-financial liabilities
7.2
3.0
2.1
12.3
Total liabilities
 
795.1
56.7
65.9
40.1
42.4
33.9
13.2
1,047.1
Guarantees, loan commitments
 
and forward starting transactions
3
Loan commitments
39.3
0.3
0.4
0.0
40.0
Guarantees
 
22.4
22.4
Forward starting transactions,
 
reverse repurchase and
securities borrowing agreements
3.8
3.8
Total
65.4
0.3
0.4
0.0
66.2
 
31.12.21
USD bn
Due within
1 month
Due between
1 and 3
months
Due between
3 and 12
months
Due between
1 and 2 years
Due between
2 and 5 years
Due over
5 years
Perpetual /
Not
applicable
Total
Assets
Total financial assets measured at amortized
 
cost
453.7
45.9
43.1
53.7
64.1
77.3
737.8
Loans and advances to customers
157.2
28.7
37.2
49.6
54.9
70.1
 
397.8
Total financial assets measured at fair value through
 
profit or
loss
300.5
5.8
8.1
5.2
7.1
2.5
1.8
330.9
Financial assets at fair value not held for trading
29.7
5.8
8.1
5.2
7.1
2.5
1.8
60.1
Financial assets measured at fair value through
 
other
comprehensive income
0.1
0.4
0.7
0.1
0.4
7.1
8.8
Total non-financial assets
7.7
0.5
0.1
0.2
1.4
0.3
29.4
39.7
Total assets
761.9
52.6
52.0
59.2
73.0
87.2
31.2
1,117.2
Liabilities
Total financial liabilities measured at amortized
 
cost
581.6
20.1
48.4
17.0
35.6
24.4
13.5
740.6
Customer deposits
530.1
5.2
3.2
1.6
1.5
0.3
542.0
Debt issued measured at amortized cost
3.7
12.1
39.8
14.9
32.5
22.7
13.5
139.2
of which: non-subordinated fixed rate debt
3.7
10.8
28.8
10.6
26.0
22.7
102.6
of which: non-subordinated floating rate debt
1.3
9.0
4.3
3.3
17.9
of which: subordinated fixed-rate debt
2.0
3.1
13.5
18.6
Total financial liabilities measured at fair value
 
through
profit or loss
2
237.7
12.0
14.7
18.8
5.6
12.2
300.9
Debt issued designated at fair value
12.5
11.6
14.1
18.6
5.4
11.5
73.8
of which: non-subordinated fixed rate debt
0.8
1.2
2.9
1.2
1.3
4.8
12.2
of which: non-subordinated floating rate debt
11.7
10.3
11.2
17.4
4.2
6.8
61.6
Total non-financial liabilities
9.3
3.0
2.4
14.7
Total liabilities
 
828.6
35.1
63.0
35.8
41.2
36.6
15.9
1,056.2
Guarantees, loan commitments
 
and forward starting transactions
3
Loan commitments
38.3
0.5
0.7
0.0
39.5
Guarantees
21.2
21.2
Forward starting transactions,
 
reverse repurchase and
securities borrowing agreements
1.4
1.4
Total
60.9
0.5
0.7
0.0
0.0
0.0
0.0
62.1
1 Effective 1 April 2022, a
 
portfolio of assets previously
 
classified as Financial
 
assets measured at fair
 
value through other
 
comprehensive income
 
was reclassified to Other
 
financial assets measured at
 
amortized cost.
Refer to Note
 
1b for more information.
 
2 As of
 
31 December 2022
 
and 31 December 2021,
 
the contractual
 
redemption amount
 
at maturity
 
of debt issued
 
designated at fair
 
value through
 
profit or loss
 
and other
financial liabilities measured at fair value through
 
profit or loss was not materially different from the carrying amount.
 
3 The notional amounts associated
 
with derivative loan commitments,
 
as well as forward starting
repurchase and reverse
 
repurchase agreements,
 
measured at fair
 
value through
 
profit or loss
 
are presented
 
together with
 
notional amounts
 
related to
 
derivative instruments
 
and have been
 
excluded from
 
the table
above. Refer to Note 10
 
for more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
334
 
 
Note 23
 
Maturity analysis of assets and liabilities
 
(continued)
 
b) Maturity analysis of financial
 
liabilities on an undiscounted basis
The table below
 
provides an
 
analysis of financial
 
liabilities on
 
an undiscounted
 
basis, including
 
all cash flows
 
relating to
principal and
 
future interest
 
payments. The
 
residual
 
contractual maturities
 
for non
 
-derivative and
 
non-trading financial
liabilities are
 
based
 
on
 
the earliest
 
date on
 
which UBS
 
could be
 
contractually required
 
to pay.
 
Derivative positions
 
and
trading liabilities,
 
predominantly
 
made up
 
of short
 
sale transactions,
 
are presented
 
in the
Due within
 
1 month
 
column
,
 
as this provides a conservative reflection
 
of the nature of these trading
 
activities. The residual contractual maturities may
extend over significantly longer periods.
 
 
31.12.22
USD bn
Due within
 
1 month
Due between
 
1 and 3
months
Due between
 
3 and 12
months
Due between
 
1 and 2 years
Due between
 
2 and 5 years
Due over
 
5 years
Perpetual /
Not
applicable
Total
Financial liabilities recognized
 
on balance sheet
1
Amounts due to banks
6.3
2.6
1.9
0.3
0.6
0.0
11.7
Payables from securities financing
 
transactions
3.3
0.3
0.4
0.3
4.4
Cash collateral payables on derivative instruments
36.4
36.4
Customer deposits
463.1
28.5
24.5
8.0
2.4
0.3
526.9
Debt issued measured at amortized cost
2
6.8
9.4
24.8
14.4
37.9
28.0
11.9
133.4
Other financial liabilities measured at amortized cost
4.7
0.1
0.5
0.5
1.3
1.4
8.5
 
of which: lease liabilities
0.1
0.1
0.5
0.5
1.3
1.4
3.8
Total financial liabilities measured
 
at amortized cost
520.7
40.9
52.1
23.6
42.3
29.7
11.9
721.2
Financial liabilities at fair value held for trading
3, 4
29.5
29.5
Derivative financial instruments
3, 5
154.9
154.9
Brokerage payables designated at
 
fair value
45.1
45.1
Debt issued designated at fair value
6
9.4
12.4
16.1
19.7
7.1
18.8
83.4
Other financial liabilities designated at fair value
27.1
1.4
0.4
0.4
0.5
0.8
30.6
Total financial liabilities measured
 
at fair value through
profit or loss
266.0
13.8
16.4
20.0
7.6
19.6
343.5
Total
786.8
54.7
68.6
43.6
49.8
49.3
11.9
1,064.7
Guarantees, commitments
 
and forward starting transactions
Loan commitments
7
39.3
0.3
0.4
0.0
40.0
Guarantees
22.4
22.4
Forward starting transactions,
 
reverse repurchase and
securities borrowing agreements
7
3.8
3.8
Total
65.4
0.3
0.4
0.0
66.2
 
31.12.21
USD bn
Due within
 
1 month
Due between
 
1 and 3
months
Due between
 
3 and 12
months
Due between
 
1 and 2 years
Due between
 
2 and 5 years
Due over
 
5 years
Perpetual /
Not
applicable
Total
Financial liabilities recognized
 
on balance sheet
1
Amounts due to banks
6.7
2.4
3.5
0.0
0.5
13.1
Payables from securities financing
 
transactions
3.8
0.3
1.6
0.0
5.7
Cash collateral payables on derivative instruments
31.8
31.8
Customer deposits
530.1
5.2
3.3
1.7
1.5
0.4
542.3
Debt issued measured at amortized cost
2
4.0
12.7
41.1
16.7
36.9
24.3
13.3
148.9
Other financial liabilities measured at amortized cost
4.5
0.1
0.5
0.6
1.3
1.6
8.4
 
of which: lease liabilities
0.1
0.1
0.5
0.6
1.3
1.6
4.0
Total financial liabilities measured
 
at amortized cost
580.9
20.8
49.9
19.0
40.3
26.2
13.3
750.2
Financial liabilities at fair value held for trading
3,4
31.7
31.7
Derivative financial instruments
3,5
121.3
121.3
Brokerage payables designated at
 
fair value
44.0
44.0
Debt issued designated at fair value
6
13.8
11.5
13.5
18.8
5.7
18.5
81.9
Other financial liabilities designated at fair value
28.1
0.4
0.5
0.2
0.2
1.1
30.5
Total financial liabilities measured
 
at fair value through
profit or loss
239.0
11.9
14.0
19.0
5.9
19.6
309.4
Total
819.8
32.7
63.9
38.0
46.1
45.9
13.3
1,059.6
Guarantees, commitments
 
and forward starting transactions
Loan commitments
7
38.3
0.5
0.7
0.0
39.5
Guarantees
21.2
21.2
Forward starting transactions,
 
reverse repurchase
and securities borrowing agreements
7
1.4
1.4
Total
60.9
0.5
0.7
0.0
62.1
1 Except for financial
 
liabilities at
 
fair value held
 
for trading
 
and derivative
 
financial instruments
 
(see footnote
 
3), the amounts
 
presented generally
 
represent undiscounted cash
 
flows of future
 
interest and
 
principal
payments.
 
2 The time-
 
bucket Perpetual
 
/ Not applicable
 
includes perpetual loss
 
-absorbing additional
 
tier 1 capital instruments.
 
3 Carrying amount is
 
fair value. Management
 
believes that this
 
best represents the
cash flows that would have to be paid if these positions
 
had to be settled or closed out.
 
4 Contractual maturities of financial
 
liabilities at fair value held for trading
 
are: USD
27.8
bn due within 1 month (31 December
2021: USD
30.8
bn), USD
1.7
bn due between 1 month and 1 year (31 December 2021: USD
0.9
bn) and USD
0
bn due between 1 and 5 years (31 December
 
2021: USD
0
bn).
 
5 Includes USD
46
m (31 December 2021:
USD
34
m) related to fair values
 
of derivative loan
 
commitments and
 
forward starting
 
reverse repurchase
 
agreements classified
 
as derivatives,
 
presented
 
within “Due within
 
1 month.” The
 
full contractual
 
committed
amount of USD
34.4
bn (31 December 2021: USD
36.0
bn) is presented in Note 10 under notional amounts.
 
6 Future interest payments
 
on variable-rate liabilities are determined
 
by reference to the applicable interest
rate prevailing as of the reporting
 
date. Future principal
 
payments that are variable
 
are determined by reference
 
to the conditions existing
 
at the relevant
 
reporting date.
 
7 Excludes derivative loan
 
commitments and
forward starting reverse repurchase
 
agreements measured
 
at fair value (see footnote 5).
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
335
 
 
Note 24
 
Interest rate benchmark reform
Background
A
 
market-wide
 
reform
 
of
 
major
 
interest
 
rate
 
benchmarks
 
is
 
being
 
undertaken
 
globally.
 
The
 
publication
 
of
 
London
Interbank Offered Rates (LIBORs) ceased immediately after 31 December 2021
 
for all non-US dollar LIBORs, as well as
 
for
one-week
 
and
 
two-month
 
USD
 
LIBOR.
 
Publication
 
of
 
the
 
remaining
 
USD
 
LIBOR
 
tenors
 
will
 
cease
 
immediately
 
after
30 June 2023.
In December 2022
 
,
 
the FCA consulted
 
on the
 
continued publication
 
of one-,
 
three-
 
and six-month
 
USD LIBOR
 
under a
synthetic format
 
until the
 
end of
 
September 2024
 
to ensure
 
an orderly
 
winding
 
down of
 
remaining contracts
 
that are
not
 
governed
 
by
 
US
 
law.
 
In
 
addition,
 
in
 
December
 
2022,
 
the
 
US
 
Federal
 
Reserve
 
Board
 
adopted
 
the
 
final
 
rules
 
that
implement the Adjustable Interest Rate (LIBOR) Act, which
 
is substantially based on, and supersedes, the New York State
LIBOR legislation.
 
The Adjustable
 
Interest Rate (LIBOR)
 
Act provides
 
a legislative solution
 
for USD
 
LIBOR legacy products
governed by
 
any US state
 
law should
 
such products
 
fail to transition
 
prior to
 
the USD
 
LIBOR cessation
 
date of 30
 
June
2023.
A framework has
 
been established within UBS
 
to address the
 
transition of contracts
 
that do not
 
contain adequate fallback
provisions and to cease entering into new
 
LIBOR contracts, with the exception of specific circumstances that are
 
allowed
by regulatory provisions for USD
 
LIBOR.
Governance over the transition
 
to alternative benchmark rates
Throughout
 
the
 
transition
 
process
 
UBS
 
has
 
been
 
maintaining
 
a
 
global
 
cross-divisional,
 
cross-functional
 
governance
structure and change program to address the scale and complexity of the transition. This global program is sponsored by
the Group
 
CFO and
 
led by
 
senior representatives
 
from the
 
business divisions
 
and UBS’s
 
control and
 
support functions.
The program
 
includes governance
 
and execution structures
 
within each
 
business division,
 
together with
 
cross-divisional
teams from each control and support function. During 2022, progress was overseen centrally via a monthly Group LIBOR
Transition
 
Forum with an increased US
 
regional focus.
Risks
A core part of UBS’s change program is
 
the identification, management and monitoring of the risks associated with IBOR
reform and transition. These
 
risks include, but are not limited
 
to, the following:
–
 
economic risks to UBS and
 
its clients, through
 
the repricing of
 
existing contracts, reduced transparency
 
and / or
 
liquidity
of pricing information, market uncertainty or
 
disruption;
–
 
accounting risks,
 
where the transition affects
 
the accounting treatment, including
 
hedge accounting and consequential
income statement volatility;
–
 
valuation risks
 
arising from
 
the variation
 
between
 
benchmarks that
 
will cease
 
and
 
ARRs, affecting
 
the risk
 
profile of
financial instruments;
–
 
operational
 
risks arising
 
from changes
 
to UBS’s
 
front-to-back processes
 
and
 
systems to
 
accommodate the
 
transition
(e.g., data sourcing and processing
 
and bulk migration of contracts); and
–
 
legal and conduct risks relating to UBS’s
 
engagement with clients and market
 
counterparties around
 
new benchmark
products and amendments
 
required for existing contracts referencing
 
benchmarks that will cease.
Overall, the effort required to transition is
 
affected by multiple factors, including whether negotiations need to take place
with multiple stakeholders (as is the
 
case for syndicated loans or certain listed securities),
 
market readiness and a client’s
technical readiness to handle ARR market conventions. UBS remains confident that it has the transparency, oversight and
operational
 
preparedness
 
to
 
progress
 
with
 
the
 
IBOR
 
transition
 
consistent
 
with
 
market
 
timelines,
 
given
 
the
 
significant
progress made as of
 
31 December 2022.
 
UBS did not
 
have and does not
 
expect changes to
 
its risk management
 
approach
and strategy as a result of interest
 
rate benchmark reform.
Transition progress
 
UBS’s significant
 
non-derivative exposures
 
subject to IBOR
 
reform primarily related
 
to brokerage
 
receivable and payable
balances, corporate
 
and
 
private loans,
 
and
 
mortgages,
 
linked to
 
CHF and
 
USD LIBORs.
 
During 2020,
 
UBS transitioned
most of its
 
CHF LIBOR-
 
linked deposits
 
to the Swiss
 
Average Overnight
 
Rate (SA
 
RON). In
 
that same
 
year,
 
UBS launched
SARON-based mortgages and
 
corporate loans based on
 
all major ARRs in the Swiss
 
market, as well as Secure
 
Overnight
Financing Rate (SOFR)-based mortgages
 
in the US market.
 
Throughout 2021, UBS transitioned substantially all of
 
its private and corporate loans linked
 
to non-USD IBORs, with the
remaining CHF LIBOR-linked
 
contracts transitioning
 
on their first roll date
 
in 2022. In addition,
 
as of 31 December 2021
UBS
 
had
 
completed
 
the
 
transition
 
of
 
IBOR-linked
 
non-derivative
 
financial
 
assets
 
and
 
liabilities
 
related
 
to
 
brokerage
accounts, except for balances originated
 
in the US, which transitioned to
 
SOFR in January 2022.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
336
 
 
Note 24
 
Interest rate benchmark reform (continued)
In 2022, UBS
 
focused its
 
efforts on
 
the transition of
 
USD LIBOR and
 
the remaining non-USD LIBOR
 
contracts, by leveraging
industry solutions (e.g., the use of fallback
 
provisions), through third-party actions (those by clearing houses, agents, etc.)
and bi-lateral contract negotiations. As of 31 December 2022, the transition of non-USD IBORs is substantially complete.
In addition,
 
in 2022,
 
substantially all
 
US securities
 
-based
 
lending
 
has
 
been
 
transitioned to
 
SOFR and
 
UBS continues
 
to
make
 
good
 
progress
 
on
 
the
 
transition
 
of
 
the
 
remaining
 
USD
 
LIBOR
 
non-derivative
 
assets
 
and
 
liabilities,
 
with
 
the
 
US
mortgage portfolio of USD
9
bn (31 December 2021: USD
11
bn) the largest remaining exposure
 
left to transition.
In August
 
2022, to
 
facilitate the transition
 
of derivatives
 
linked to
 
the USD
 
LIBOR Swap
 
Rate, UBS
 
adhered to
 
the June
2022
 
Benchmark Module
 
of the
 
ISDA 2021
 
Fallbacks Protocol
 
on
 
the USD
 
LIBOR Swap
 
Rate.
 
UBS will
 
begin gradually
transitioning USD LIBOR derivatives not transacted with clearing houses or exchanges from the first quarter of 2023. The
transition of USD LIBOR-cleared derivatives
 
is planned to commence in the second
 
quarter of 2023.
As of 31 December 2022, UBS had approximately USD
3
bn equivalent of yen- and US dollar-denominated publicly issued
benchmark bonds that,
 
per current contractual
 
terms, if not
 
called on their
 
respective call dates,
 
would reset based
 
directly
on
 
JPY
 
LIBOR
 
and
 
USD
 
LIBOR.
 
In
 
addition,
 
certain
 
US
 
dollar-denominated
 
benchmark
 
bonds
 
publicly
 
issued
 
by
 
UBS
reference rates indirectly derived from IBORs, if they
 
are not called on their respective call dates. These bonds have robust
IBOR
 
fallback
 
language
 
and
 
the
 
confirmation
 
of
 
interest
 
rate
 
calculation
 
mechanics
 
will be
 
communicated
 
as
 
market
standards formalize and in advance of any
 
rate resets. These debt instruments have not been included in the table
 
below,
given their current fixed-rate coupon.
 
Financial instruments yet to transition
 
to alternative benchmarks
The amounts
 
included in
 
the table below
 
relate to
 
financial instrument
 
contracts across
 
UBS’s business
 
divisions where
UBS has material exposures
 
subject to IBOR reform that have not
 
yet transitioned to ARRs,
 
and that:
–
 
contractually reference an interest rate benchmark
 
that will transition to an
 
alternative benchmark; and
–
 
have a contractual maturity date (including
 
open-ended contracts) after the agreed
 
cessation dates.
 
Contracts where penalty terms reference IBORs, or where exposure to
 
an IBOR is not
 
the primary purpose of the
 
contract,
have not been included,
 
as these contracts do not have a material impact on
 
the transition process.
 
In line
 
with information
 
provided
 
to management
 
and
 
external parties
 
monitoring
 
UBS’s
 
transition progress,
 
the table
below
 
includes
 
the
 
following
 
financial metrics
 
for
 
instruments
 
external
 
to
 
the
 
Group
 
that
 
are
 
subject
 
to
 
interest
 
rate
benchmark reform:
–
 
gross carrying value / exposure for non
 
-derivative financial instruments; and
 
–
 
total trade count for derivative financial
 
instruments.
The
 
exposures
 
included
 
in the
 
table
 
below
 
reflect the
 
maximum
 
IBOR
 
exposure,
 
without
 
regard
 
for
 
early termination
rights, with the actual exposure
 
being dependent upon client preferences and
 
investment decisions.
 
As of
 
31 December 202
 
2,
 
UBS had
 
made significant progress
 
in transitioning
 
LIBOR exposures
 
to ARRs.
 
The remaining
USD
 
LIBOR-linked
 
exposures
 
included
 
in
 
the
 
table
 
below
 
primarily
 
relate
 
to
 
derivatives
 
and
 
US
 
mortgages,
 
with
 
the
transition planned to be
 
completed by 30 June 2023.
 
 
LIBOR benchmark rates
31.12.22
1
31.12.21
Measure
USD
USD
CHF
GBP
EUR
2
JPY
Carrying value of non
 
-derivative financial instruments
Total non-derivative financial assets
 
USD m
14,269
3
65,234
3
21,616
4
45
5
1
0
Total non-derivative financial liabilities
 
USD m
1,138
5
1,985
5
27
5
3
5
5
6
0
Trade count
 
of derivative financial instruments
Total derivative financial instruments
Trade count
32,006
7
40,500
7,8
829
9
183
9
3,744
9
184
9
Off-balance sheet exposures
Total irrevocable loan commitments
USD m
4,606
10
11,863
11
0
0
0
0
1 As of 31 December
 
2022, non-USD
 
balances and trade
 
counts are minimal.
 
2 Relates primarily
 
to EUR LIBOR
 
positions.
 
3 Includes USD
1
bn (31 December 2021:
 
USD
1
bn) of loans
 
related to revolving
 
multi-
currency credit lines, where IBOR transition efforts are complete,
 
except for USD LIBOR. Balances as of 31 December 2021
 
also include USD
37
bn USD LIBOR securities-based lending and USD
5
bn brokerage accounts,
which for the most part transitioned
 
to SOFR in January
 
2022. The remaining
 
balances as of 31
 
December 2022 and 31
 
December 2021
 
primarily relate to
 
US mortgages and corporate
 
lending.
 
4 Relates primarily
to CHF LIBOR
 
mortgages, which
 
have automatically
 
transitioned to SARON
 
on their first
 
roll date in
 
2022.
 
5 Relates to
 
floating-rate
 
notes that per
 
their contractual
 
terms can
 
reset to rates
 
linked to
 
LIBOR, with
transition dependent
 
upon the actions
 
of respective issuers.
 
6 Relates to
 
contracts that
 
transitioned in
 
January 2022.
 
7 Includes approximately
2,000
 
(31 December 2021:
1,000
) contracts having a
 
contractual
maturity after 30 June 2023, with the
 
last USD LIBOR fixing occurring
 
before 30 June 2023. No further contractual
 
fixing is required for these contracts.
 
8 Includes approximately
5,000
 
cross-currency derivatives,
 
of
which approximately
500
 
have both a non-USD LIBOR
 
leg and a USD LIBOR
 
leg, where the
 
non-USD leg transitioned in
 
January 2022 before
 
the next fixing date.
 
The remainder represents
 
cross-currency swaps
 
with
an ARR leg and a USD IBOR leg.
 
9 Includes predominantly bilateral
 
derivatives, which transitioned
 
in January 2022, and an insignificant amount of cleared
 
derivatives, where the respective clearing
 
houses’ organized
transition happened in
 
January 2022.
 
10 Includes approximately
 
USD
3
bn of loan commitments
 
that can be drawn
 
in different currencies,
 
however only USD
 
LIBOR transition
 
efforts remain open,
 
with completion
scheduled for 2023.
 
11 Includes loan commitments
 
that can be drawn in
 
different currencies at the
 
client‘s discretion, of which
 
approximately USD
3
bn have only USD LIBOR
 
exposure remaining and approximately
USD
2
bn retain a non-USD
 
LIBOR interest rate,
 
with transition dependent
 
upon the actions of other
 
parties. The remainder
 
represents loan commitments
 
that can be drawn in
 
US dollars only and will transition
 
on or
before 30 June 2023.
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
337
 
 
Note 25
 
Hedge accounting
Derivatives designated in
 
hedge accounting relationships
The Group applies hedge accounting to interest
 
rate risk and foreign exchange risk, including structural
 
foreign exchange
risk related to net investments in foreign
 
operations.
 
›
 
Refer to “Market risk”
 
in the “Risk
 
management and
 
control” section of
 
this report for
 
more information about
 
how risks arise
and how they are managed
 
by the Group
Hedging instruments and
 
hedged risk
Interest rate swaps are designated in
 
fair value hedges
 
or cash flow hedges
 
of interest rate
 
risk arising solely from changes
in benchmark
 
interest rates.
 
Fair value
 
changes
 
arising
 
from such
 
risk are
 
usually the
 
largest component
 
of the
 
overall
change in the fair value of the hedged
 
position in transaction currency.
 
Cross-currency
 
swaps
 
are
 
designated
 
as
 
fair
 
value
 
hedges
 
of
 
foreign
 
exchange
 
risk.
 
Foreign
 
exchange
 
forwards
 
and
foreign exchange
 
swaps are
 
mainly designated
 
as hedges of
 
structural foreign
 
exchange risk
 
related to net
 
investments
in foreign operations.
 
In both cases the hedged risk arises solely from changes
 
in the spot foreign
 
exchange rate.
 
The notional of the designated hedging instruments matches the notional of the hedged items, except when the
 
interest
rate swaps are re-designated in
 
cash flow hedges,
 
in which case the hedge ratio designated
 
is determined based on the
swap sensitivity.
Hedged items and hedge
 
designation
 
Fair value hedges of interest rate risk
 
related to debt instruments and
 
loan assets
Fair
 
value
 
hedges
 
of
 
interest
 
rate
 
risk
 
related
 
to
 
debt
 
instruments
 
and
 
loan
 
assets
 
involve swapping
 
fixed
 
cash
 
flows
associated with the debt issued,
 
debt securities held and
 
long-term fixed-rate mortgage
 
loans in Swiss francs to floating
cash flows by entering into interest rate swaps
 
that either receive fixed and
 
pay floating cash flows or that pay fixed and
receive floating cash flows.
 
Designations
 
have been
 
made in
 
US dollars,
 
euro,
 
Swiss francs,
 
Australian dollars,
 
yen, pounds
 
sterling and
 
Singapore
dollars. For new
 
hedging instruments
 
and hedged
 
risk designations entered
 
into starting from
 
2021 in
 
these currencies
(with
 
the
 
exception
 
of
 
euro),
 
the
 
benchmark
 
rate
 
was
 
the
 
relevant
 
alternative
 
reference
 
rate
 
(ARR).
 
Following
 
the
interbank offered rate (IBOR) transition for swaps with
 
LCH (formerly the London Clearing House) in December 2021, the
benchmark
 
hedge
 
rate
 
for
 
Swiss
 
franc,
 
yen
 
and
 
pound
 
sterling
 
designations
 
was
 
changed
 
from
 
an
 
IBOR
 
rate
 
to
 
the
relevant
 
ARR
 
with
 
the
 
hedge
 
relationship
 
continuing
 
in
 
accordance
 
with
Interest
 
Rate
 
Benchmark
 
Reform
 
–
 
Phase
 
2
(Amendments to IFRS 9, IAS
 
39, IFRS 7, IFRS 4
 
and IFRS 16)
.
Cash flow hedges of
 
forecast transactions
The Group hedges forecast cash
 
flows on non-trading financial assets and
 
liabilities that bear interest at variable rates or
are expected
 
to be
 
refinanced or
 
reinvested in
 
the future,
 
due to
 
movements in
 
future market
 
rates. The
 
amounts and
timing of future cash flows,
 
representing both principal and interest flows,
 
are projected on the basis
 
of contractual terms
and
 
other
 
relevant
 
factors,
 
including
 
estimates
 
of
 
prepayments
 
and
 
defaults.
 
The
 
aggregate
 
principal
 
balances
 
and
interest cash
 
flows across
 
all portfolios
 
over time
 
form the
 
basis for identifying
 
the non
 
-trading interest
 
rate risk of
 
the
Group, which
 
is hedged
 
with interest rate
 
swaps, the
 
maximum maturity of
 
which is
 
15 years.
 
Cash flow
 
forecasts and
risk exposures
 
are monitored
 
and adjusted
 
on an
 
ongoing basis,
 
and consequently
 
additional
 
hedging
 
instruments are
traded and
 
designated, or
 
are terminated
 
resulting
 
in a hedge
 
discontinuance.
 
Hedge designations
 
have been
 
made in
the following currencies: US dollars,
 
euro, Swiss francs, pounds sterling and Hong Kong dollars. The
 
cash flow hedges in
Swiss francs,
 
pounds sterling and
 
certain cash flow hedges
 
in US dollars were
 
discontinued and
 
replaced with new ARR
designations in December 2021.
 
In addition, the transition of floating
 
rate hedged items in USD
 
to ARR rates in January
2022
 
resulted in
 
the update
 
of the
 
hedged
 
risk to
 
ARR in
 
the affected
 
hedge
 
relationships
 
without discontinuation
 
of
hedge accounting in accordance with
Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7,
IFRS 4 and IFRS 16)
.
Fair value hedges of foreign exchange
 
risk related to issued debt instruments
Debt instruments denominated in
 
currencies other than the US dollar are designated in fair value hedges
 
of spot foreign
exchange
 
risk,
 
in
 
addition
 
to
 
and
 
separate
 
from
 
the
 
fair
 
value
 
hedges
 
of
 
interest
 
rate
 
risk.
 
Cross-currency
 
swaps
economically convert debt denominated
 
in currencies other than
 
the US dollar to US dollars.
 
Hedges of net investments in foreign
 
operations
The
 
Group
 
applies
 
hedge
 
accounting
 
for
 
certain
 
net
 
investments
 
in
 
foreign
 
operations,
 
which
 
include
 
subsidiaries,
branches
 
and
 
associates.
 
Upon
 
maturity
 
of
 
hedging
 
instruments,
 
typically
 
two
 
months,
 
the
 
hedge
 
relationship
 
is
terminated and new designations
 
are made to reflect any changes in
 
the net investments in foreign
 
operations.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
338
 
 
Note 25
 
Hedge accounting (continued)
 
 
Economic relationship between
 
hedged item and hedging instrument
The economic relationship
 
between the
 
hedged
 
item and the
 
hedging instrument
 
is determined
 
based on
 
a qualitative
analysis of their critical terms. In cases where hedge
 
designation takes place after origination of
 
the hedging instrument,
a quantitative
 
analysis
 
of the
 
possible
 
behavior of
 
the hedging
 
derivative and
 
the hedged
 
item during
 
their respective
terms is also performed.
Sources of hedge
 
ineffectiveness
 
In
 
hedges
 
of
 
interest
 
rate
 
risk,
 
hedge
 
ineffectiveness
 
can
 
arise
 
from
 
mismatches
 
of
 
critical
 
terms
 
and
 
/
 
or
 
the
 
use
 
of
different curves
 
to discount the hedged
 
item and instrument,
 
or from entering
 
into a hedge
 
relationship after the trade
date of the hedging derivative.
 
In hedges
 
of foreign exchange
 
risk related to
 
debt issued, hedge
 
ineffectiveness can arise due
 
to the discounting
 
of the
hedging instruments and undesignated risk components
 
and lack of
 
such discounting and risk
 
components in the
 
hedged
items.
 
In hedges of net investments in foreign operations,
 
ineffectiveness is unlikely unless the hedged net assets fall below the
designated hedged
 
amount. The exceptions
 
are hedges
 
where the hedging
 
currency is not
 
the same as
 
the currency of
the foreign operation, where
 
the currency basis may cause ineffectiveness.
Hedge ineffectiveness from financial instruments
 
measured at fair value through
 
profit or loss is recognized in
Other net
income.
 
Derivatives not designated in hedge
 
accounting relationships
 
Non-hedge
 
accounted
 
derivatives
 
are
 
mandatorily
 
held
 
for
 
trading
 
with
 
all
 
fair
 
value
 
movements
 
taken
 
to
Other
 
net
income from financial instruments
 
measured at fair value
 
through profit or loss
, even when
 
held as an economic hedge
or to
 
facilitate client
 
clearing.
 
The one
 
exception relates
 
to forward
 
points
 
on certain
 
short-
 
and long
 
-duration foreign
exchange contracts acting as economic hedges,
 
which are reported in
Net interest income.
 
 
All hedges: designated
 
hedging instruments and hedge ineffectiveness
As of or for the year ended
31.12.22
Carrying amount
USD m
Notional
amount
Derivative
financial
assets
Derivative
financial
liabilities
Changes in
 
fair value of
hedging
instruments
1
Changes in
fair value of
hedged
items
1
Hedge
ineffectiveness
recognized in the
income statement
Interest rate risk
Fair value hedges
92,415
0
0
(5,195)
5,169
(27)
Cash flow hedges
75,304
2
5
(5,813)
5,760
(53)
Foreign exchange risk
Fair value hedges
2
20,566
845
3
(1,088)
1,105
18
Hedges of net investments in foreign operations
14,009
7
529
336
(337)
(1)
As of or for the year ended
31.12.21
Carrying amount
USD m
Notional
amount
Derivative
financial
assets
Derivative
financial
liabilities
Changes in
 
fair value of
hedging
instruments
1
Changes in
fair value of
hedged
items
1
Hedge
ineffectiveness
recognized in the
income statement
Interest rate risk
Fair value hedges
89,525
0
7
(1,604)
1,602
(2)
Cash flow hedges
79,573
12
1
(1,185)
990
(196)
Foreign exchange risk
Fair value hedges
2
27,875
87
261
(2,139)
2,181
42
Hedges of net investments in foreign operations
13,939
23
105
497
(497)
0
1 Amounts
 
used as the
 
basis for
 
recognizing hedge
 
ineffectiveness for
 
the period.
 
2 The
 
foreign currency
 
basis spread
 
of cross-currency
 
swaps designated
 
as hedging
 
derivatives is
 
excluded from
 
the hedge
accounting designation and accounted
 
for as a cost of hedging with
 
amounts deferred in Other
 
comprehensive income
 
within Equity.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
339
 
 
Note 25
 
Hedge accounting (continued)
Fair value hedges: designated
 
hedged items
 
USD m
31.12.22
31.12.21
Interest rate
risk
FX risk
Interest rate
risk
FX risk
Debt issued measured at amortized
 
cost
Carrying amount of designated debt issued
68,529
20,566
74,700
27,875
 
of which: accumulated amount of fair value hedge
 
adjustment
(6,057)
478
Other financial assets measured at
 
amortized cost – debt securities
Carrying amount of designated debt securities
4,577
2,677
 
of which: accumulated amount of fair value hedge
 
adjustment
(180)
(7)
Loans and advances to customers
Carrying amount of designated loans
14,270
13,835
of which: accumulated amount of fair value hedge
 
adjustment
(1,249)
(109)
of which: accumulated amount of fair value hedge
 
adjustment subject to amortization attributable
 
to the portion of the
portfolio that ceased to be part of hedge accounting
(51)
3
 
Fair value hedges: profile of
 
the timing of the nominal amount
 
of the hedging instrument
 
31.12.22
USD bn
Due within
1 month
Due between
1 and 3 months
Due between
3 and 12 months
Due between
1 and 5 years
Due after
5 years
Total
Interest rate swaps
0
4
10
53
26
92
Cross-currency swaps
 
0
1
2
12
5
21
31.12.21
USD bn
Due within
1 month
Due between
1 and 3 months
Due between
3 and 12 months
Due between
1 and 5 years
Due after
5 years
Total
Interest rate swaps
0
8
10
49
22
90
Cross-currency swaps
 
1
1
6
13
6
28
 
Cash flow hedge reserve on
 
a pre-tax basis
 
USD m
31.12.22
31.12.21
Amounts related to hedge relationships for which hedge
 
accounting continues to be
 
applied
(4,692)
26
Amounts related to hedge relationships for which hedge
 
accounting is no longer applied
(540)
743
Total other comprehensive
 
income recognized directly in equity
 
related to cash flow hedges, on
 
a pre-tax basis
(5,232)
769
 
Foreign currency translation
 
reserve on a pre
 
-tax basis
USD m
31.12.22
31.12.21
Amounts related to hedge relationships for which hedge
 
accounting continues to be
 
applied
284
(45)
Amounts related to hedge relationships for which hedge
 
accounting is no longer applied
266
262
Total other comprehensive
 
income recognized directly in equity
 
related to hedging instruments designated
 
as net investment hedges, on
 
a pre-tax
basis
550
217
Interest rate benchmark
 
reform
The Group continues to apply the relief provided by
Interest Rate Benchmark Reform
 
(amendments to IFRS 9, IAS 39 and
IFRS 7)
,
 
published
 
by
 
the
 
IASB in
 
September 2019,
 
mainly to
 
its hedges
 
in USD
 
.
 
The cessation
 
date
 
for
 
USD
 
LIBOR
 
is
30 June 2023.
 
The
 
following
 
table
 
provides
 
details
 
on
 
the notional
 
amount
 
and
 
carrying amount
 
of
 
the
 
hedging
 
instruments
 
in
 
the
hedge relationships
 
where the
 
designated risk is
 
LIBOR and
 
maturing after
 
the cessation
 
date of the
 
applicable interest
rate benchmarks.
 
Hedges of net investments in foreign
 
operations are not affected by the amendments.
›
 
Refer to Note 1a
 
item 2j for more
 
information about
 
the relief provided by
 
the amendments
 
to IFRS 9 and
 
IFRS 7 related
 
to
interest rate benchmark
 
reform
›
 
Refer to Note 24
 
for more information
 
about the transition
 
progress
›
 
Refer to earlier parts
 
of this Note for the
 
information about
 
the transition
 
progress of fair value
 
and cash flow hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
340
 
 
Note 25
 
Hedge accounting (continued)
 
Hedging instruments referencing
 
LIBOR
31.12.22
31.12.21
Carrying amount
Carrying amount
USD m
Notional
amount
Derivative
financial
assets
Derivative
financial
liabilities
Notional
amount
Derivative
financial
assets
Derivative
financial
liabilities
Interest rate risk
Fair value hedges
20,383
0
0
23,367
0
0
Cash flow hedges
2,179
0
0
10,803
0
0
 
 
 
Note 26
 
Post-employment benefit plans
 
a) Defined benefit plans
UBS has
 
established defined
 
benefit plans
 
for its employees
 
in various
 
jurisdictions in
 
accordance with local
 
regulations
and practices.
 
The major plans
 
are located
 
in Switzerland,
 
the UK,
 
the US
 
and Germany.
 
The level
 
of benefits
 
depends
on the specific plan rules.
Swiss pension plan
The Swiss
 
pension plan covers
 
employees of UBS
 
Group AG
 
in Switzerland and
 
employees of companies
 
in Switzerland
having close economic or financial ties with UBS Group AG, and exceeds the minimum benefit requirements under Swiss
pension law.
 
The Swiss plan
 
offers retirement,
 
disability and
 
survivor benefits and
 
is governed by
 
a Pension
 
Foundation
Board. The responsibilities of
 
this board are defined
 
by Swiss pension law and
 
the plan rules.
Savings contributions to the Swiss
 
plan are paid
 
by both employer and employee.
 
Depending on the age
 
of the employee,
UBS pays
 
a savings
 
contribution that
 
ranges between
6.5
% and
27.5
% of contributory base
 
salary and between
2.8
%
and
9
%
 
of
 
contributory
 
variable
 
compensation.
 
UBS
 
also
 
pays
 
risk
 
contributions
 
that
 
are
 
used
 
to
 
fund
 
disability and
survivor benefits. Employees
 
can choose the level of savings
 
contributions paid
 
by them, which vary between
2.5
% and
13.5
% of contributory base salary and
 
between
0
% and
9
% of contributory
 
variable compensation,
 
depending on
 
age
and choice of savings contribution
 
category.
 
The plan offers to members at the
 
normal retirement age
 
of
65
 
a choice between a lifetime
 
pension and
 
a partial or full
lump sum
 
payment. Participants can
 
choose to draw
 
early retirement benefits
 
starting from
 
the age of
58
, but can
 
also
continue
 
employment and
 
remain active
 
members of
 
the plan
 
until the
 
age of
70
. Employees have
 
the opportunity
 
to
make additional purchases of benefits
 
to fund early retirement benefits.
The pension
 
amount
 
payable to a
 
participant is calculated
 
by applying
 
a conversion
 
rate to the accumulated
 
balance of
the
 
participant’s
 
retirement savings
 
account
 
at
 
the
 
retirement
 
date.
 
The
 
balance
 
is
 
based
 
on
 
credited
 
vested
 
benefits
transferred
 
from
 
previous
 
employers,
 
purchases
 
of
 
benefits,
 
and
 
the
 
employee
 
and
 
employer
 
contributions
 
that
 
have
been
 
made
 
to
 
the
 
participant’s
 
retirement
 
savings
 
account,
 
as
 
well
 
as
 
the
 
interest
 
accrued.
 
The
 
annual
 
interest
 
rate
credited to participants is determined by
 
the Pension Foundati
 
on Board at the end of each year.
Although
 
the Swiss
 
plan
 
is based
 
on a
 
defined
 
contribution
 
promise under
 
Swiss pension
 
law, it
 
is accounted
 
for as
 
a
defined
 
benefit
 
plan
 
under
 
International
 
Financial
 
Reporting
 
Standards
 
(IFRS),
 
primarily
 
because
 
of
 
the
 
obligation
 
to
accrue interest on the participants’
 
retirement savings accounts and
 
the payment of lifetime pension
 
benefits.
 
An actuarial valuation in accordance with Swiss
 
pension law is performed regularly.
 
Should an underfunded
 
situation on
this basis occur, the Pension Foundation Board
 
is required to take the necessary measures to ensure that full funding
 
can
be
 
expected
 
to
 
be
 
restored
 
within
 
a
 
maximum
 
period
 
of
10
 
years.
 
If
 
a
 
Swiss
 
plan
 
were
 
to
 
become
 
significantly
underfunded
 
on a
 
Swiss pension
 
law basis,
 
additional employer
 
and
 
employee contributions
 
could
 
be required.
 
In this
situation, the risk is
 
shared between employer and employees, and the employer
 
is not legally obliged to cover more than
50
% of the
 
additional contributions
 
required. As of
 
31 December 2022,
 
the Swiss plan
 
had a technical
 
funding ratio in
accordance with Swiss pension
 
law of
119.0
% (31 December 2021:
134.8
%).
The investment strategy
 
of the Swiss
 
plan complies
 
with Swiss pension
 
law, including the
 
rules and
 
regulations relating
to diversification of plan assets, and is
 
derived from the risk
 
budget defined by the Pension Foundation Board on the
 
basis
of regularly performed asset and liability management
 
analyses. The Pension Foundation Board strives for a medium-
 
and
long-term balance between assets and
 
liabilities.
 
As of
 
31 December 202
 
2,
 
the Swiss plan
 
was in
 
a surplus
 
situation on
 
an IFRS
 
measurement basis,
 
as the
 
fair value
 
of
the
 
plan’s
 
assets
 
exceeded
 
the
 
defined
 
benefit
 
obligation
 
(DBO)
 
by
 
USD
7,848
m
 
(31 December
 
2021:
 
USD
6,577
m).
However,
 
a surplus
 
is only
 
recognized on
 
the balance
 
sheet to
 
the extent
 
that it
 
does not
 
exceed the
 
estimated future
economic benefit,
 
which equals
 
the difference
 
between
 
the present
 
value of
 
the estimated
 
future net
 
service cost
 
and
the present value of the
 
estimated future employer contributions. As of
 
both 31 December 2022 and 31 December
 
2021,
the estimated future economic benefit
 
was zero and
 
hence no net defined
 
benefit asset was recognized
 
on the balance
sheet.
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
341
 
 
Note 26
 
Post-employment benefit plans
 
(continued)
Changes to the Swiss pension
 
plan in 2019
The Pension Foundation
 
Board and UBS agreed to implement measures that
 
took effect from the start of 2019 to
 
support
the long-term financial
 
stability of the
 
Swiss pension fund.
 
The measures, among
 
other things,
 
lowered the conversion
 
rate
and increased the
 
normal retirement
 
age from
 
64 to 65.
 
Pensions already
 
in payment
 
on 1 January
 
2019 were not
 
affected.
To
 
mitigate
 
the
 
effects
 
for
 
active
 
participants,
 
UBS
 
committed
 
to
 
pay
 
an
 
extraordinary
 
contribution
 
and
 
contributed
CHF
646
m (USD
698
m) in
 
three installments
 
in 2020,
 
2021
 
and 2022.
 
The installments
 
of USD
235
m, USD
254
m and
USD
209
m paid in 2020, 2021 and 2022 reduced other comprehensive income with no effect on the income statement.
The regular employer contributions
 
to be made to the Swiss plan
 
in 2023 are estimated at USD
480
m.
UK pension plan
 
The
 
UK
 
plan
 
is
 
a
 
career-average
 
revalued
 
earnings
 
scheme,
 
and
 
benefits
 
increase
 
automatically
 
based
 
on
 
UK
 
price
inflation,
 
subject
 
to
 
defined
 
caps. The
 
normal
 
retirement
 
age
 
for
 
participants in
 
the
 
UK
 
plan
 
is
60
. The
 
plan
 
provides
guaranteed lifetime
 
pension benefits
 
to participants upon
 
retirement. The
 
UK plan has
 
been closed to
 
new entrants for
more than
 
20 years and,
 
since 2013,
 
participants are no
 
longer accruing
 
benefits for
 
current or
 
future service.
 
Instead,
employees participate in the UK defined
 
contribution plan.
The
 
governance
 
responsibility
 
for
 
the
 
UK
 
plan
 
lies
 
jointly
 
with
 
the
 
Pension
 
Trustee
 
Board
 
and
 
UBS.
 
The
 
employer
contributions to
 
the pension
 
fund reflect agreed-upon
 
deficit funding
 
contributions, which
 
are determined on
 
the basis
of the most
 
recent actuarial valuation
 
using assumptions
 
agreed by the
 
Pension Trustee Board
 
and UBS. In
 
the event of
underfunding,
 
UBS and
 
the Pension
 
Trustee Board
 
must agree
 
on
 
a deficit recovery
 
plan
 
within statutory
 
deadlines.
 
In
2022,
 
UBS
 
made
 
deficit
 
funding
 
contributions
 
of
 
USD
5
m
 
to
 
the
 
UK
 
plan.
 
In
 
2021,
 
UBS
 
made
 
no
 
deficit
 
funding
contributions.
The plan
 
assets are invested in
 
a diversified portfolio
 
of financial assets,
 
which include
 
longevity swaps
 
with an
 
external
insurance company. These swaps
 
enable the UK pension
 
plan to hedge the
 
risk between expected
 
and actual longevity,
which should
 
mitigate volatility in the
 
net defined benef
 
it asset / liability. As
 
of 31 December 2022,
 
the longevity swaps
had a negative value of USD
1
m (31 December 2021: negative USD
3
m).
In 2019,
 
UBS and
 
the Pension Trustee
 
Board entered
 
into an
 
arrangement whereby a
 
collateral pool
 
was established
 
to
provide
 
security
 
for
 
the
 
pension
 
fund.
 
The
 
value
 
of
 
the
 
collateral
 
pool
 
as
 
of
 
31 December
 
2022
 
was
 
USD
292
m
(31 December 2021: USD
337
m) and includes
 
corporate bonds, government-related debt instruments and other
 
financial
assets. The
 
arrangement provides
 
the Pension
 
Trustee Board
 
dedicated access
 
to a pool
 
of assets in
 
the event
 
of UBS’s
insolvency or not paying a required
 
deficit funding contribution.
The employer
 
contributions
 
to be
 
made to
 
the UK
 
defined
 
benefit plan
 
in 2023
 
are estimated
 
at USD
18
m, subject
 
to
regular funding reviews during
 
the year.
US pension plans
 
There are two distinct
 
major defined
 
benefit plans
 
in the
 
US, with a
 
normal retirement
 
age of
65
. Both plans
 
were closed
 
to
new entrants more than
 
20 years ago. Since
 
they closed,
 
new employees have
 
participated in
 
a defined contribution
 
plan.
One of the defined benefit plans is a contribution
 
-based plan in which each participant accrues a percentage of salary in
a retirement
 
savings
 
account. The
 
retirement savings
 
account is
 
credited annually
 
with
 
interest based
 
on
 
a rate
 
that is
linked to
 
the average
 
yield on
 
one-year US
 
government bonds.
 
For the
 
other defined
 
benefit plan,
 
retirement benefits
accrue based on the
 
career-average earnings of each individual plan participant.
 
Former employees with
 
vested benefits
have the option of taking
 
a lump sum payment or a lifetime annuity.
As required
 
under applicable pension
 
laws, both plans
 
have fiduciaries who,
 
together with
 
UBS, are
 
responsible for
 
the
governance of the plans.
The plan assets
 
of
 
both plans are invested
 
in diversified portfolios
 
of financial assets. Each
 
plan’s fiduciaries are responsible
for the investment decisions with
 
respect to the plan assets.
 
The employer contributions to
 
be made to the US defined
 
benefit plans in 2023
 
are estimated at USD
11
m.
German pension plans
There are two unfunded defined benefit plans in Germany. The normal retirement age is
65
 
and benefits are paid directly
by UBS.
 
In the larger
 
of the
 
two plans
 
each participant
 
accrues a percentage
 
of salary
 
in a
 
retirement savings
 
account.
The accumulated account balance
 
of the participant
 
is credited on an
 
annual basis with
 
guaranteed interest at
 
a rate of
5
%. The plan has
 
been closed to new entrants,
 
and all participants younger than the
 
age of 55 as of
 
June 2021 no
 
longer
accrue
 
benefits.
 
In
 
the
 
other
 
plan,
 
amounts
 
are
 
accrued
 
annually
 
based
 
on
 
employee
 
elections
 
related
 
to
 
variable
compensation. For this plan, the
 
accumulated account balance is credited
 
on an annual basis with a guaranteed
 
interest
rate of
6
% for amounts accrued before 2010, of
4
% for amounts accrued from 2010 to 2017 and of
0.9
% for amounts
accrued after
 
2017.
 
Both plans
 
are subject to
 
German pension
 
law,
 
whereby the
 
responsibility to
 
pay pension
 
benefits
when they
 
are due
 
resides entirely
 
with UBS.
 
A portion
 
of the pension
 
payments is
 
directly increased
 
in line with
 
price
inflation.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
342
 
 
Note 26
 
Post-employment benefit plans
 
(continued)
In
 
June
 
2021,
 
UBS
 
implemented
 
a
 
new
 
funded
 
pension
 
plan
 
with
 
interest
 
credited
 
to
 
participants
 
equal
 
to
 
actual
investment returns
 
with a
 
guaranteed
 
minimum of
0
%. The
 
plan
 
was implemented
 
retrospectively for
 
new
 
hires since
June 2018 and for all eligible
 
active participants younger
 
than 55 from July 2021.
 
Each participant accrues a percentage
of salary in a retirement savings
 
account.
The employer contributions to
 
be made to the German defined benefit
 
plans in 2023 are estimated
 
at USD
12
m.
Financial information by plan
The tables
 
below
 
provide
 
an analysis
 
of
 
the movement
 
in the
 
net
 
asset /
 
liability recognized
 
on
 
the balance
 
sheet
 
for
defined benefit plans, as well as
 
an analysis of amounts recognized
 
in net profit and in
Other comprehensive incom
e.
 
Defined benefit plans
USD m
Swiss pension plan
UK pension plan
US and German
pension plans
Total
2022
2021
2022
2021
2022
2021
2022
2021
Defined benefit obligation at the beginning of the year
27,398
27,728
4,105
4,162
1,740
1,905
33,242
33,795
Current service cost
416
494
0
0
5
6
420
500
Interest expense
344
58
67
58
35
30
446
147
Plan participant contributions
257
266
0
0
0
0
257
266
Remeasurements
(4,151)
837
(1,474)
71
(267)
(62)
(5,891)
846
of which: actuarial (gains) / losses due to changes in demographic
 
assumptions
3
51
(6)
14
1
4
(2)
69
of which: actuarial (gains) / losses due to changes in financial
 
assumptions
(4,666)
(678)
(1,575)
(3)
(279)
(78)
(6,520)
(759)
of which: experience (gains) / losses
1
512
1,464
107
59
11
12
631
1,535
Past service cost related to plan amendments
0
0
0
0
0
4
0
4
Curtailments
(20)
(80)
0
0
0
0
(20)
(80)
Benefit payments
(1,454)
(1,097)
(123)
(148)
(111)
(112)
(1,687)
(1,357)
Other movements
(5)
0
0
0
0
1
(5)
1
Foreign currency translation
(513)
(809)
(408)
(38)
(28)
(33)
(949)
(880)
Defined benefit obligation at the
 
end of the year
22,272
27,398
2,166
4,105
1,375
1,740
25,813
33,242
of which: amounts owed to active members
11,927
14,333
65
150
169
222
12,160
14,705
of which: amounts owed to deferred members
0
0
656
1,593
528
669
1,184
2,262
of which: amounts owed to retirees
10,345
13,065
1,445
2,362
678
849
12,469
16,276
of which: funded plans
22,272
27,398
2,166
4,105
1,011
1,222
25,449
32,724
of which: unfunded plans
0
0
0
0
363
518
363
518
Fair value of plan assets at the beginning
 
of the year
33,975
32,590
4,297
4,149
1,329
1,360
39,601
38,100
Return on plan assets excluding interest income
(3,248)
2,322
(1,312)
277
(223)
40
(4,782)
2,639
Interest income
485
74
70
58
31
26
586
159
Employer contributions
 
685
763
5
0
16
16
706
779
Plan participant contributions
257
266
0
0
0
0
257
266
Benefit payments
(1,454)
(1,097)
(123)
(148)
(111)
(112)
(1,687)
(1,357)
Administration expenses, taxes and premiums paid
(12)
(13)
0
0
(3)
(4)
(16)
(17)
Other movements
(2)
0
0
0
0
1
(2)
1
Foreign currency translation
(567)
(930)
(450)
(39)
0
0
(1,017)
(969)
Fair value of plan assets
 
at the end of the year
30,119
33,975
2,488
4,297
1,039
1,329
33,646
39,601
Surplus / (deficit)
7,848
6,577
321
192
(335)
(411)
7,834
6,358
Asset ceiling effect at the beginning of the year
6,577
4,862
0
0
0
0
6,577
4,862
Interest expense on asset ceiling effect
135
15
0
0
0
0
135
15
Asset ceiling effect excluding interest expense and foreign
 
currency translation on
asset ceiling effect
1,189
1,821
0
0
0
0
1,189
1,821
Foreign currency translation
(54)
(121)
0
0
0
0
(54)
(121)
Asset ceiling effect at the end of the year
7,848
6,577
0
0
0
0
7,848
6,577
Net defined benefit asset / (liability) of
 
major plans
0
0
321
192
(335)
(411)
(14)
(219)
Net defined benefit asset / (liability) of remaining
 
plans
(100)
(112)
Total net defined benefit
 
asset / (liability)
(114)
(331)
of which: Net defined benefit asset
355
302
of which: Net defined benefit liability
2
(469)
(633)
1 Experience (gains)
 
/ losses
 
are a component
 
of actuarial remeasurements
 
of the defined
 
benefit obligation
 
and reflect
 
the effects
 
of differences between
 
the previous actuarial
 
assumptions and
 
what has actually
occurred.
 
2 Refer to Note 18c.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
343
 
 
Note 26
 
Post-employment benefit plans
 
(continued)
Income statement – expenses related
 
to defined benefit plans
1
USD m
Swiss pension plan
UK pension plan
US and German
pension plans
Total
For the year ended
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
Current service cost
416
494
0
0
5
6
420
500
Interest expense related to defined benefit obligation
344
58
67
58
35
30
446
147
Interest income related to plan assets
(485)
(74)
(70)
(58)
(31)
(26)
(586)
(159)
Interest expense on asset ceiling effect
135
15
0
0
0
0
135
15
Administration expenses, taxes and premiums paid
12
13
0
0
3
4
16
17
Past service cost related to plan amendments
0
0
0
0
0
4
0
4
Curtailments
(20)
(80)
0
0
0
0
(20)
(80)
Net periodic expenses recognized in net
 
profit for major plans
402
426
(3)
0
12
18
411
444
Net periodic expenses recognized in net
 
profit for remaining plans
2
25
25
Total net periodic
 
expenses recognized in net profit
437
470
1 Refer to Note 6.
 
2 Includes differences between
 
actual and estimated performance
 
award accruals.
Other comprehensive income – gains /
 
(losses) on defined benefit plans
 
USD m
Swiss pension plan
UK pension plan
US and German
pension plans
Total
For the year ended
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
Remeasurement of defined benefit obligation
4,151
(837)
1,474
(71)
267
62
5,891
(846)
of which: change in discount rate assumption
5,414
870
1,451
319
317
77
7,183
1,267
of which: change in rate of pension increase
 
assumption
0
0
123
(316)
(5)
(1)
118
(318)
of which: change in rate of interest credit on
 
retirement savings assumption
(718)
(193)
0
0
(82)
(1)
(800)
(194)
of which: change in life expectancy
0
0
5
9
(1)
(3)
4
5
of which: change in other actuarial assumptions
(33)
(50)
1
(23)
48
2
16
(71)
of which: experience gains / (losses)
1
(512)
(1,464)
(107)
(59)
(11)
(12)
(631)
(1,535)
Return on plan assets excluding interest income
(3,248)
2,322
(1,312)
277
(223)
40
(4,782)
2,639
Asset ceiling effect excluding interest expense and foreign
 
currency translation
(1,189)
(1,821)
0
0
0
0
(1,189)
(1,821)
Total gains / (losses) recognized
 
in other comprehensive income for major plans
(285)
(336)
162
207
43
102
(80)
(28)
Total gains / (losses) recognized
 
in other comprehensive income for remaining plans
7
30
Total gains / (losses) recognized
 
in other comprehensive income
2
(73)
2
1 Experience
 
(gains) / losses
 
are a component
 
of actuarial remeasurements
 
of the defined
 
benefit obligation
 
and reflect
 
the effects of
 
differences between
 
the previous actuarial
 
assumptions and
 
what has actually
occurred.
 
2 Refer to the “Statement
 
of comprehensive income.”
 
The table below provides
 
information about the duration of
 
the DBO and the timing for expected benefit payments.
 
Swiss pension plan
UK pension plan
US and German pension
plans
1
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
Duration of the defined benefit
 
obligation (in years)
13.1
15.1
13.7
18.8
7.9
9.5
Maturity analysis of benefits expected
 
to be paid
USD m
Benefits expected to be paid within 12 months
1,294
1,312
107
110
123
123
Benefits expected to be paid between
 
1 and 3 years
2,657
2,636
234
248
232
237
Benefits expected to be paid between
 
3 and 6 years
3,977
3,824
384
418
335
338
Benefits expected to be paid between
 
6 and 11 years
6,743
6,220
667
743
502
495
Benefits expected to be paid between
 
11 and 16 years
6,223
5,572
667
751
388
392
Benefits expected to be paid in more than 16 years
22,446
18,092
2,570
3,028
516
519
1 The duration of the
 
defined benefit obligation
 
represents a weighted average
 
across US and German
 
plans.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
344
 
 
Note 26
 
Post-employment benefit plans
 
(continued)
Actuarial assumptions
The
 
actuarial assumptions
 
used
 
for
 
the defined
 
benefit plans
 
are
 
based
 
on
 
the
 
economic conditions
 
prevailing
 
in
 
the
jurisdiction
 
in which
 
they
 
are
 
offered.
 
Changes
 
in the
 
defined
 
benefit
 
obligation
 
are
 
most sensitive
 
to
 
changes
 
in the
discount rate. The di
 
scount rate is based
 
on the yield of high
 
-quality corporate bonds
 
quoted in an active
 
market in the
currency of
 
the respective plan.
 
A decrease in
 
the discount curve
 
increases the DBO.
 
UBS regularly
 
reviews the actuarial
assumptions used in
 
calculating the DBO to determine their continuing
 
relevance.
›
 
Refer to Note 1a
 
item 5 for a description
 
of the accounting
 
policy for defined
 
benefit plans
 
 
The tables below show
 
the significant actuarial assumptions used
 
in calculating the DBO at the end of
 
the year.
 
Significant actuarial assumptions
Swiss pension plan
UK pension plan
US pension plans
German pension plans
In %
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
Discount rate
2.34
0.34
5.02
1.82
4.92
1
2.47
1
3.81
0.99
Rate of pension increase
0.00
0.00
3.08
3.32
0.00
0.00
2.20
1.80
Rate of interest credit on retirement savings
 
3.39
1.04
0.00
0.00
5.73
2
1.18
2
0.00
0.00
1 Represents weighted average
 
across US pension plans.
 
2 Only applicable to
 
one of the US pension plans
 
Mortality tables and life expectancies
 
for major plans
Life expectancy at age 65 for a male member currently
aged 65
aged 45
Country
Mortality table
31.12.22
31.12.21
31.12.22
31.12.21
Switzerland
BVG 2020 G with CMI 2021 projections
1
21.7
21.7
23.4
23.3
UK
S3PA with CMI 2021 projections
2
23.5
23.4
24.6
24.5
USA
Pri-2012 with MP-2021 projection scale
22.0
21.9
23.3
23.3
Germany
Dr. K. Heubeck
 
2018 G
20.6
20.5
23.4
23.2
Life expectancy at age 65 for a female member currently
aged 65
aged 45
Country
Mortality table
31.12.22
31.12.21
31.12.22
31.12.21
Switzerland
BVG 2020 G with CMI 2021 projections
1
23.5
23.4
25.1
25.0
UK
S3PA with CMI 2021 projections
2
25.0
24.9
26.4
26.3
USA
Pri-2012 with MP-2021 projection scale
23.4
23.3
24.8
24.7
Germany
Dr. K. Heubeck
 
2018 G
24.0
23.9
26.3
26.1
1 In 2021, BVG 2020 G with
 
CMI 2019 projections was
 
used.
 
2 In 2021, S3PA
 
with CMI 2020
 
projections was used.
Sensitivity analysis of significant actuarial
 
assumptions
The table
 
below
 
presents
 
a sensitivity
 
analysis
 
for each
 
significant
 
actuarial
 
assumption,
 
showing
 
how the
 
DBO would
have been
 
affected by
 
changes in
 
the relevant actuarial
 
assumption
 
that were
 
reasonably
 
possible at
 
the balance sheet
date.
 
Unforeseen
 
circumstances
 
may
 
arise,
 
which
 
could
 
result
 
in
 
variations
 
that
 
are
 
outside
 
the
 
range
 
of
 
alternatives
deemed
 
reasonably
 
possible.
 
Caution
 
should
 
be
 
used
 
in
 
extrapolating
 
the
 
sensitivities
 
below
 
on
 
the
 
DBO,
 
as
 
the
sensitivities may not be linear.
 
Sensitivity analysis of significant actuarial
 
assumptions
1
Increase / (decrease) in defined benefit obligation
Swiss pension plan
UK pension plan
US and German pension plans
USD m
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
Discount rate
Increase by 50 basis points
(1,128)
(1,695)
(141)
(361)
(51)
(78)
Decrease by 50 basis points
1,269
1,933
157
411
55
84
Rate of pension increase
Increase by 50 basis points
877
1,333
127
334
4
6
Decrease by 50 basis points
–
2
–
2
(118)
(306)
(3)
(6)
Rate of interest credit on retirement
 
savings
Increase by 50 basis points
178
224
–
3
–
3
9
8
Decrease by 50 basis points
(178)
(224)
–
3
–
3
(8)
(7)
Life expectancy
Increase in longevity by one additional year
593
915
65
184
39
56
1 The sensitivity analyses are based on a change in one assumption while
 
holding all other assumptions constant, so that interdependencies
 
between the assumptions are excluded.
 
2 As the assumed rate of pension
increase was
0
% as of 31 December 2022
 
and as of 31 December
 
2021, a downward change
 
in assumption is
 
not applicable.
 
3 As the UK plan does
 
not provide interest credits
 
on retirement savings,
 
a change in
assumption is not applicable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
345
 
 
Note 26
 
Post-employment benefit plans
 
(continued)
Fair value of plan assets
The tables below provide
 
information about the composition
 
and fair value of plan assets of
 
the major pension plans.
 
Composition and fair value
 
of plan assets
Swiss pension plan
31.12.22
31.12.21
Fair value
Plan asset
allocation %
Fair value
Plan asset
allocation %
USD m
Quoted
in an active
market
Other
Total
Quoted
in an active
market
Other
Total
Cash and cash equivalents
326
0
326
1
187
0
187
1
Real estate / property
Domestic
0
3,783
3,783
13
0
3,530
3,530
10
Foreign
0
919
919
3
0
580
580
2
Investment funds
Equity
 
Domestic
743
0
743
2
843
0
843
2
Foreign
4,964
2,171
7,134
24
6,213
2,652
8,865
26
Bonds
1
Domestic, AAA to BBB–
3,760
0
3,760
12
4,446
0
4,446
13
Foreign, AAA
 
to BBB–
6,031
0
6,031
20
5,093
0
5,093
15
Foreign, below BBB–
1,062
0
1,062
4
1,314
0
1,314
4
Other
1,540
3,547
5,086
17
4,211
3,558
7,769
23
Other investments
624
651
1,275
4
668
682
1,349
4
Total fair value of plan
 
assets
19,049
11,071
30,119
100
22,973
11,002
33,975
100
31.12.22
31.12.21
Total fair value of plan
 
assets
30,119
33,975
of which:
2
Bank accounts at UBS
 
337
194
UBS debt instruments
50
28
UBS shares
27
25
Securities lent to UBS
3
871
1,079
Property occupied by UBS
90
93
Derivative financial instruments, counterparty
 
UBS
3
76
128
1 The bond credit
 
ratings are primarily
 
based on S&P’s credit
 
ratings. Ratings
 
AAA to BBB
 
–
 
and below
 
BBB– represent investment
 
grade and non-investment
 
grade ratings,
 
respectively.
 
In cases where
 
credit ratings
from other rating
 
agencies were
 
used, these were
 
converted to
 
the equivalent
 
rating in S&P’s
 
rating classification.
 
2 Bank
 
accounts at UBS
 
encompass accounts
 
in the
 
name of the Swiss
 
pension fund.
 
The other
positions disclosed in the table encompass both
 
direct investments in UBS instruments
 
and indirect investments, i.e., those
 
made through funds that the pension
 
fund invests in.
 
3 Securities lent to UBS and derivative
financial instruments
 
are presented
 
gross of any co
 
llateral. Securities
 
lent to UBS
 
were fully
 
covered by collateral
 
as of 31
 
December 2022
 
and 31 December
 
2021. Net
 
of collateral,
 
derivative financial
 
instruments
amounted to negative USD
8
m as of 31 December 2022
 
(31 December 2021:
 
positive USD
43
m).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
346
 
 
Note 26
 
Post-employment benefit plans
 
(continued)
Composition and fair value
 
of plan assets (continued)
UK pension plan
31.12.22
31.12.21
Fair value
Plan asset
allocation %
Fair value
Plan asset
allocation %
USD m
Quoted
in an active
market
Other
Total
Quoted
in an active
market
Other
Total
Cash and cash equivalents
104
0
104
4
147
0
147
3
Bonds
1
Domestic, AAA to BBB–
1,729
0
1,729
69
2,605
0
2,605
61
Foreign, AAA
 
to BBB–
297
0
297
12
372
0
372
9
Foreign, below BBB–
7
0
7
0
4
0
4
0
Investment funds
Equity
 
Domestic
19
3
22
1
44
4
47
1
Foreign
366
0
366
15
921
0
921
21
Bonds
1
Domestic, AAA to BBB–
367
90
457
18
532
147
679
16
Domestic, below BBB–
1
0
1
0
12
0
12
0
Foreign, AAA
 
to BBB–
90
0
90
4
179
0
179
4
Foreign, below BBB–
114
0
114
5
115
0
115
3
Real estate
Domestic
64
0
64
3
110
12
122
3
Foreign
6
31
36
1
6
34
40
1
Other
(280)
0
(280)
(11)
(313)
0
(313)
(7)
Repurchase agreements
(612)
0
(612)
(25)
(725)
0
(725)
(17)
Other investments
66
27
94
4
65
26
91
2
Total fair value of plan
 
assets
2,336
151
2,488
100
4,074
223
4,297
100
1 The bond credit
 
ratings are primarily
 
based on S&P’s credit
 
ratings. Ratings
 
AAA to BBB
 
–
 
and below
 
BBB– represent investment
 
grade and non-investment
 
grade ratings,
 
respectively. In
 
cases where
 
credit ratings
from other rating agencies were
 
used, these were converted to
 
the equivalent rating in
 
S&P’s rating
 
classification.
 
US and German pension
 
plans
31.12.22
31.12.21
Fair value
Plan asset
allocation %
Fair value
Plan asset
allocation %
USD m
Quoted
in an active
market
Other
Total
Quoted
in an active
market
Other
Total
Cash and cash equivalents
7
0
7
1
11
0
11
1
Equity
Domestic
55
0
55
5
79
0
79
6
Foreign
24
0
24
2
31
0
31
2
Bonds
1
Domestic, AAA to BBB–
359
0
359
35
486
0
486
37
Domestic, below BBB–
4
0
4
0
17
0
17
1
Foreign, AAA
 
to BBB–
74
0
74
7
97
0
97
7
Foreign, below BBB–
3
0
3
0
6
0
6
0
Investment funds
Equity
 
Domestic
27
0
27
3
3
0
3
0
Foreign
33
0
33
3
56
0
56
4
Bonds
1
Domestic, AAA to BBB–
266
0
266
26
269
0
269
20
Domestic, below BBB–
109
0
109
10
147
0
147
11
Foreign, AAA
 
to BBB–
2
0
2
0
11
0
11
1
Foreign, below BBB–
5
0
5
0
2
0
2
0
Real estate
Domestic
0
11
11
1
0
9
9
1
Other
54
0
54
5
99
0
99
7
Other investments
5
1
6
1
5
1
6
0
Total fair value of plan
 
assets
1,027
12
1,039
100
1,319
10
1,329
100
1 The bond credit
 
ratings are primarily
 
based on S&P’s credit
 
ratings. Ratings
 
AAA to BBB
 
–
 
and below
 
BBB– represent investment
 
grade and non-investment
 
grade ratings,
 
respectively. In
 
cases where
 
credit ratings
from other rating agencies were
 
used, these were converted to
 
the equivalent rating in
 
S&P’s rating
 
classification.
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
347
 
 
Note 26
 
Post-employment benefit plans
 
(continued)
 
b) Defined contribution plans
UBS
 
sponsors
 
a
 
number
 
of
 
defined
 
contribution
 
plans,
 
with
 
the
 
most
 
significant
 
plans
 
in
 
the
 
US
 
and
 
the
 
UK.
 
UBS’s
obligation is limited to its contributions
 
made in accordance with
 
each plan, which
 
may include direct contributions
 
and
matching
 
contributions.
 
Employer contributions
 
to defin
 
ed contribution
 
plans
 
are recognized
 
as an
 
expense
 
and
 
were
USD
357
m in 2022, USD
363
m in 2021 and USD
343
m in 2020.
›
 
Refer to Note 6 for
 
more information
 
c) Related-party disclosure
UBS
 
is
 
the
 
principal
 
provider
 
of
 
banking
 
services
 
for
 
the
 
pension
 
fund
 
of
 
UBS
 
in
 
Switzerland.
 
In
 
this
 
capacity,
 
UBS
 
is
engaged
 
to execute
 
most of
 
the pension
 
fund’s banking
 
activities. These
 
activities can
 
include,
 
but are
 
not limited
 
to,
trading, securities
 
lending and
 
borrowing
 
and derivative transactions.
 
The non
 
-Swiss UBS
 
pension funds
 
do not
 
have a
similar banking
 
relationship with UBS.
 
During 2022, UBS
 
received USD
36
m in fees for
 
banking services from
 
the major
post-employment benefit
 
plans (2021:
 
USD
39
m). As
 
of 31 December
 
2022,
 
the major post-employment
 
benefit plans
held USD
265
m in UBS shares (31 December 2021:
 
USD
252
m).
›
 
Refer to the “Composition
 
and fair value
 
of plan assets”
 
table in Note
 
26a for more information
 
about fair value
 
of investments
 
in
UBS instruments
 
held by the Swiss
 
pension fund
 
 
Note 27
 
Employee benefits: variable compensation
 
 
a) Plans offered
The Group
 
has several
 
share-based
 
and other
 
deferred
 
compensation plans
 
that align
 
the interests
 
of Group
 
Executive
Board (GEB) members and
 
other employees with the interests of investors.
 
Share-based
 
awards
 
are granted
 
in the
 
form
 
of notional
 
shares
 
and, where
 
permitted,
 
carry
 
a dividend
 
equivalent
 
that
 
may be
paid in
 
notional
 
shares
 
or cash.
 
Awards
 
are settled
 
by delivering
 
UBS shares
 
at vesting,
 
except in
 
jurisdictions
 
where this
 
is not
permitted
 
for
 
legal or
 
tax reasons.
 
Deferred
 
compensation
 
awards
 
are
 
generally
 
forfeitable
 
upon,
 
among
 
other
 
circumstances,
 
voluntary
 
termination
 
of
employment with UBS. These compensation plans are also designed to meet regulatory requirements and include special
provisions for regulated employees.
 
The most
 
significant
 
deferred
 
compensation
 
plans are
 
described
 
below.
›
 
Refer to Note
 
1a
 
item 4 for a description
 
of the accounting
 
policy related to
 
share-based and other
 
deferred compensation
 
plans
Mandatory deferred compensation plans
Long-Term Incentive Plan
The Long-Term
 
Incentive Plan
 
(LTIP)
 
is a
 
mandatory deferred
 
share-based
 
compensation plan
 
for GEB
 
members for
 
the
performance year 2022.
 
For prior performance years, LTIP was granted to senior leaders of
 
the Group (i.e., GEB members
and selected senior management).
The number of notional
 
shares delivered at vesting depends on two
 
equally weighted performance metrics over a three-
year performance
 
period:
 
return
 
on
 
common
 
equity
 
tier 1
 
(CET1)
 
capital
 
and
 
relative
 
total
 
shareholder
 
return,
 
which
compares
 
the
 
total
 
shareholder
 
return
 
(TSR)
 
of
 
UBS
 
with
 
the
 
TSR
 
of
 
an
 
index
 
consisting
 
of
 
listed
 
Global
 
Systemically
Important
 
Banks
 
as
 
determined
 
by
 
the Financial
 
Stability
 
Board
 
(excluding
 
UBS). The
 
final
 
number
 
of
 
shares
 
vest
 
over
three
 
years following
 
the
 
performance
 
period
 
for
 
GEB
 
members,
 
and
 
cliff-vest in
 
the
 
year following
 
the
 
performance
period for selected senior management
 
.
Equity Ownership Plan / Fund
 
Ownership Plan
The Equity Ownership Plan
 
(EOP) is
 
the deferred share-based
 
compensation plan for
 
employees outside of the
 
GEB that
are subject to deferral requirements.
 
EOP awards generally
 
vest over three years.
 
Certain Asset Management
 
employees receive
 
some or
 
all of
 
their EOP
 
in the form
 
of notional
 
funds (Fund
 
Ownership
Plan or FOP,
 
previously named
 
AM EOP).
 
This plan is generally
 
delivered in cash
 
and vests over three
 
years. The
 
amount
delivered depends on the
 
value of the underlying investment funds at the
 
time of vesting.
 
Deferred Contingent Capital Plan
The
 
Deferred
 
Contingent
 
Capital
 
Plan
 
(DCCP)
 
is
 
a
 
deferred
 
compensation
 
plan
 
for
 
all employees
 
who
 
are
 
subject
 
to
deferral requirements.
 
Such employees
 
are
 
awarded
 
notional
 
additional
 
tier 1 (AT1)
 
capital instruments,
 
which,
 
at the
discretion of UBS, can be settled in cash or a perpetual,
 
marketable AT1 capital instrument. DCCP
 
awards generally bear
notional
 
interest
 
paid
 
annually
 
(except
 
for
 
certain
 
regulated
 
employees)
 
and
 
vest
 
in
 
full
 
after
 
five
 
years.
 
Awards
 
are
forfeited if a viability
 
event occurs (i.e.,
 
if FINMA notifies
 
the firm that
 
the DCCP awards must be written down
 
to mitigate
the risk of
 
insolvency,
 
bankruptcy or failure
 
of UBS)
 
or if the
 
firm receives a commitment
 
of extraordinary
 
support from
the public
 
sector that
 
is necessary
 
to prevent
 
such an
 
event. DCCP
 
awards
 
are also
 
written
 
down
 
if the
 
Group’s CET1
capital ratio falls below a
 
defined threshold. In addition, GEB members forfeit
20
% of DCCP awards for each
 
loss-making
year during the vesting period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
348
 
 
Note 27
 
Employee benefits: variable compensation
 
(continued)
 
Financial advisor variable
 
compensation
In line with market practice for US wealth management businesses,
 
the compensation for US financial advisors in Global
Wealth Management
 
consists of cash
 
compensation and
 
deferred compensation
 
awards, determined
 
using
 
a formulaic
approach based on production.
 
Cash
 
compensation
 
reflects
 
a
 
percentage
 
of
 
the
 
compensable
 
production
 
that
 
each
 
financial
 
advisor
 
generates.
Compensable production is generally based
 
on transaction revenue and investment advisory fees and may reflect further
adjustments. The percentage rate generally
 
varies based on the level of the production
 
and firm tenure.
Financial
 
advisors
 
may
 
also
 
be
 
granted
 
annual
 
deferred
 
compensation.
 
These
 
amounts
 
generally
 
vest
 
over
 
a
 
six-year
period. The annual deferred
 
compensation amount reflects the overall
 
percentage rate and production.
 
Cash compensation
 
and deferred compensation
 
awards may be
 
reduced for,
 
among other things,
 
errors, negligence or
carelessness, or failure to comply with the firm’s rules, standards,
 
practices and / or policies, and / or applicable laws and
regulations.
 
Financial advisors
 
may also
 
participate
 
in
 
additional
 
programs
 
to
 
support
 
promoting
 
and
 
developing
 
their business
 
or
supporting the transition of client relationships where appropriate.
 
Financial advisor compensation also includes expenses
related to compensation commitments with
 
financial advisors entered into at the time
 
of recruitment that are subject to
vesting requirements.
Share delivery obligations
Share delivery obligations related to
 
employee share-based
 
compensation awards were
178
m shares as of 31 December
2022 (31 December 2021:
175
m shares). Share delivery obligations are calculated on the
 
basis of undistributed notional
share awards, taking
 
applicable performance conditions into account.
As of 31 December 2022, UBS held
119
m treasury shares (31 December 2021:
149
m) that
 
were available to satisfy share
delivery obligations.
 
b) Effect on the income statement
Effect on the income statement for the
 
financial year and future
 
periods
The table
 
below
 
provides
 
information
 
about
 
compensation
 
expenses
 
related
 
to total
 
variable compensation
 
that were
recognized in the financial year ended 31 December 2022, as well as
 
expenses that were deferred and will be recognized
in the income statement for 2023
 
and later.
 
The majority of expenses
 
deferred to 20
 
23 and later that are
 
related to the
2022 performance
 
year pertain to
 
awards
 
granted in
 
February 2023
 
.
 
The total unamortized
 
compensation expense
 
for
unvested
 
share-based
 
awards
 
granted
 
up
 
to 31
 
December 2022
 
will be
 
recognized
 
in future
 
periods
 
over
 
a weighted
average period of
2.5
 
years.
 
Variable compensation
Expenses recognized in 2022
Expenses deferred to 2023 and later
1
USD m
Related to the
2022
performance
year
Related to prior
performance
years
Total
Related to the
2022
performance
year
Related to prior
performance
years
Total
Non-deferred cash
2,276
(16)
2,260
0
0
0
Deferred compensation awards
364
581
945
605
754
1,359
of which: Equity Ownership Plan
202
235
437
310
250
560
of which: Deferred Contingent Capital Plan
129
219
349
245
408
654
of which: Long-Term Incentive
 
Plan
11
32
43
30
42
71
of which: Fund Ownership Plan
21
95
116
20
54
74
Variable compensation –
 
performance awards
2,640
566
3,205
605
754
1,359
Variable compensation –
 
financial advisors
2
3,799
709
4,508
1,290
2,652
3,942
of which: non-deferred cash
3,481
0
3,481
0
0
0
of which: deferred share-based awards
104
62
166
122
180
302
of which: deferred cash-based awards
185
215
400
588
636
1,224
of which: compensation commitments with recruited
 
financial advisors
29
432
461
580
1,836
2,416
Variable compensation –
 
other
3
169
71
241
237
193
430
Total variable compensation
6,608
1,346
7,954
4
2,131
3,599
5,731
1 Estimate as
 
of 31 December
 
2022. Actual
 
amounts to
 
be expensed
 
in future
 
periods may vary;
 
e.g., due
 
to forfeiture
 
of awards.
 
2 Financial
 
advisor compensation
 
consists of cash
 
and deferred compensation
awards and is based on compensable revenues and firm tenure using a formulaic approach. It also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment
that are subject to vesting requirements.
 
3 Consists of replacement
 
payments, forfeiture
 
credits, severance
 
payments, retention
 
plan payments and interest
 
expense related to the
 
Deferred Contingent
 
Capital Plan.
 
4 Includes USD
703
m in expenses related to
 
share-based compensation
 
(performance awards:
 
USD
480
m; other variable compensation:
 
USD
56
m; financial advisor compensation:
 
USD
166
m). A further USD
88
m in
expenses related
 
to share-based
 
compensation
 
was recognized
 
within
 
other expense
 
categories
 
included in
 
Note 6
 
(salaries:
 
USD
4
m, related to
 
role-based
 
allowances; social
 
security:
 
USD
61
m; other
 
personnel
expenses: USD
23
m related to the Equity
 
Plus Plan). Total personnel
 
expense related to
 
share-based equity-settled compensation
 
excluding social security
 
was USD
716
m.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
349
 
 
Note 27
 
Employee benefits: variable compensation
 
(continued)
Variable compensation
 
(continued)
Expenses recognized in 2021
Expenses deferred to 2022 and later
1
USD m
Related to the
2021
performance
year
Related to prior
performance
years
Total
Related to the
2021
performance
year
Related to prior
performance
years
Total
Non-deferred cash
2,383
(10)
2,373
0
0
0
Deferred compensation awards
405
412
817
797
624
1,421
of which: Equity Ownership Plan
183
180
363
393
184
577
of which: Deferred Contingent Capital Plan
140
158
297
299
329
628
of which: Long-Term Incentive
 
Plan
54
19
73
50
33
83
of which: Fund Ownership Plan
29
56
84
56
78
133
Variable compensation –
 
performance awards
2,788
402
3,190
797
624
1,421
Variable compensation –
 
financial advisors
2
4,175
685
4,860
1,097
2,323
3,419
of which: non-deferred cash
3,858
(6)
3,853
0
0
0
of which: deferred share-based awards
106
51
157
123
146
269
of which: deferred cash-based awards
170
202
372
311
495
806
of which: compensation commitments with recruited
 
financial advisors
41
438
479
662
1,682
2,344
Variable compensation –
 
other
3
191
38
229
215
182
397
Total variable compensation
7,155
1,125
8,280
4
2,109
3,129
5,238
1 Estimate as
 
of 31 December
 
2021. Actual amounts
 
expensed may
 
vary; e.g.,
 
due to forfeiture
 
of awards.
 
2 Financial
 
advisor compensation
 
consists of
 
cash and deferred
 
compensation awards
 
and is based
 
on
compensable revenues and
 
firm tenure using
 
a formulaic approach.
 
It also includes expenses
 
related to compensation
 
commitments
 
with financial advisors
 
entered into at
 
the time of recruitment
 
that are subject
 
to
vesting requirements.
 
3 Consists
 
of replacement
 
payments, forfeiture
 
credits,
 
severance
 
payments, retention
 
plan payments
 
and interest
 
expense related
 
to the
 
Deferred Contingent
 
Capital Plan.
 
4 Includes
USD
651
m in expenses related
 
to share-based
 
compensation (performance
 
awards: USD
435
m; other variable
 
compensation:
 
USD
59
m; financial advisor compensation:
 
USD
157
m). A further USD
85
m in expenses
related to
 
share-based compensation
 
was recognized
 
within
 
other expense
 
categories
 
included in
 
Note 6
 
(salaries:
 
USD
5
m related
 
to role-based
 
allowances;
 
social security:
 
USD
64
m; other
 
personnel expenses:
USD
16
m related to the Equity Plus
 
Plan). Total personnel
 
expense related to share-based
 
equity-settled compensation
 
excluding social security
 
was USD
641
m.
 
Variable compensation
 
(continued)
Expenses recognized in 2020
Expenses deferred to 2021 and later
1
USD m
Related to the
2020
performance
year
Related to prior
performance
years
Total
Related to the
2020
performance
year
Related to prior
performance
years
Total
Non-deferred cash
2,167
(26)
2,141
0
0
0
Deferred compensation awards
341
727
1,068
756
288
1,044
of which: Equity Ownership Plan
137
327
463
306
69
376
of which: Deferred Contingent Capital Plan
112
351
463
280
196
476
of which: Long-Term Incentive
 
Plan
42
11
54
50
10
61
of which: Fund Ownership Plan
49
39
88
120
12
132
Variable compensation –
 
performance awards
2,508
701
3,209
756
288
1,044
Variable compensation –
 
financial advisors
2
3,378
713
4,091
822
2,284
3,106
of which: non-deferred cash
3,154
0
3,154
0
0
0
of which: deferred share-based awards
69
50
119
79
135
214
of which: deferred cash-based awards
133
183
316
271
467
738
of which: compensation commitments with recruited
 
financial advisors
22
480
502
473
1,682
2,155
Variable compensation –
 
other
3
126
94
220
181
192
374
Total variable compensation
6,012
1,508
7,520
4
1,760
2,764
4,524
1 Estimate as
 
of 31 December
 
2020. Actual amounts
 
expensed may
 
vary; e.g.,
 
due to forfeiture
 
of awards.
 
2 Financial
 
advisor compensation
 
consists of
 
cash and deferred
 
compensation awards
 
and is based
 
on
compensable revenues and
 
firm tenure using
 
a formulaic approach.
 
It also includes expenses
 
related to compensation
 
commitments
 
with financial advisors
 
entered into at
 
the time of recruitment
 
that are subject
 
to
vesting requirements.
 
3 Consists
 
of replacement
 
payments, forfeiture
 
credits,
 
severance
 
payments, retention
 
plan payments
 
and interest
 
expense related
 
to the
 
Deferred Contingent
 
Capital Plan.
 
4 Includes
USD
686
m in expenses related to
 
share-based compensation
 
(performance awards:
 
USD
517
m; other variable compensation:
 
USD
50
m; financial advisor compensation:
 
USD
119
m). A further USD
100
m in expenses
related to share-based
 
compensation
 
was recognized
 
within other
 
expense categories
 
included in
 
Note 6
 
(salaries:
 
USD
4
m related to
 
role-based allowances;
 
social security:
 
USD
54
m; other
 
personnel expenses:
USD
42
m related to the Equity Plus
 
Plan). Total personnel
 
expense related to share-based
 
equity-settled compensation
 
excluding social security
 
was USD
691
m.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
350
 
 
Note 27
 
Employee benefits: variable compensation
 
(continued)
 
c) Outstanding share-based compensation
 
awards
Share and performance share
 
awards
Movements in outstanding share-based
 
awards to employees during
 
2022 and 2021 are provided in
 
the table below.
 
Movements in outstanding
 
share-based compensation awards
Number of shares
2022
Weighted average
grant date fair value
(USD)
Number of shares
2021
Weighted average
grant date fair value
(USD)
Outstanding, at the beginning of the
 
year
180,578,561
13
174,900,395
12
Awarded during the year
62,203,770
18
68,721,549
15
Distributed during the year
(54,639,882)
12
(52,137,287)
13
Forfeited during the
 
year
(6,235,249)
15
(10,906,096)
13
Outstanding, at the end of the year
181,907,200
15
180,578,561
13
of which: shares vested for accounting purposes
102,364,973
107,828,979
 
The
 
total
 
carrying
 
amount
 
of
 
the
 
liability
 
related
 
to
 
cash-settled
 
share-based
 
awards
 
as
 
of
 
31 December
 
2022
 
and
31 December 2021
 
was USD
43
m and USD
37
m, respectively.
 
d) Valuation
UBS share awards
UBS measures compensation
 
expense based on
 
the average market price of UBS
 
shares
 
on the grant date as quoted
 
on
the SIX
 
Swiss Exchange,
 
taking into
 
consideration
 
post-vesting sale
 
and hedge
 
restrictions,
 
non-vesting
 
conditions
 
and
market conditions, where
 
applicable. The fair value
 
of the share
 
awards subject to post-vesting sale
 
and hedge restrictions
is discounted
 
on the basis
 
of the duration
 
of the post-vesting
 
restriction and
 
is referenced
 
to the cost
 
of purchasing
 
an
at-the-money European
 
put option
 
for the
 
term of
 
the transfer
 
restriction.
 
The grant
 
date fair
 
value of
 
notional shares
without
 
dividend
 
entitlements also
 
includes a
 
deduction
 
for the
 
present
 
value of
 
future expected
 
dividends
 
to be
 
paid
between the grant date and
 
distribution.
 
 
 
Note 28
 
Interests in subsidiaries and other entities
 
a) Interests in subsidiaries
UBS defines its significant subsidiaries as those entities that, either individually or in aggregate, contribute significantly to
the Group’s
 
financial position
 
or results of
 
operations, based
 
on a
 
number of
 
criteria, including
 
the subsidiaries’
 
equity
and
 
contribution
 
to the
 
Group’s
 
total assets
 
and
 
profit or
 
loss before
 
tax, in
 
accordance
 
with the
 
requirements
 
set by
IFRS 12, Swiss regulations
 
and the rules of the US Securities and
 
Exchange Commission (the
 
SEC).
Individually significant subsidiaries
The
 
two
 
tables
 
below
 
list
 
the
 
Group’s
 
individually
 
significant
 
subsidiaries
 
as
 
of
 
31 December
 
2022.
 
Unless
 
otherwise
stated, the subsidiaries listed below have share
 
capital consisting solely of ordinary shares held entirely by the Group
 
and
the proportion of ownership
 
interest held is equal to the voting
 
rights held by the Group.
 
The
 
country
 
where
 
the
 
respective registered
 
office
 
is
 
located
 
is
 
also
 
the principal
 
place
 
of
 
business.
 
UBS
 
AG
 
operates
through
 
a global branch
 
network and
 
a significant
 
proportion
 
of its business
 
activity
 
is conducted
 
outside Switzerland,
including in the UK, the US, Singapore, the Hong Kong
 
SAR and other countries. UBS
 
Europe SE has branches and offices
in
 
a
 
number
 
of
 
EU
 
Member
 
States,
 
including
 
Germany,
 
Italy, Luxembourg
 
and
 
Spain.
 
Share
 
capital is
 
provided
 
in
 
the
currency of the legally registered
 
office.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
351
 
 
Note 28
 
Interests in subsidiaries and other entities
 
(continued)
Individually significant subsidiaries
 
of UBS Group AG as of 31 December
 
2022
Company
Registered office
Share capital in million
Equity interest accumulated in %
UBS AG
Zurich and Basel, Switzerland
CHF
385.8
100.0
UBS Business Solutions AG
1
Zurich, Switzerland
CHF
1.0
100.0
1 UBS Business Solutions AG
 
holds subsidiaries in China, India,
 
Israel and Poland.
Individually significant subsidiaries
 
of UBS AG as of 31 December 2022
1
Company
Registered office
Primary business
Share capital in million
Equity interest accumulated in %
UBS Americas Holding LLC
Wilmington, Delaware, USA
Group Functions
USD
5,150.0
2
100.0
UBS Americas Inc.
Wilmington, Delaware, USA
Group Functions
USD
0.0
100.0
UBS Asset Management AG
Zurich, Switzerland
Asset Management
CHF
43.2
100.0
UBS Bank USA
Salt Lake City, Utah, USA
Global Wealth Management
USD
0.0
100.0
UBS Europe SE
Frankfurt, Germany
Global Wealth Management
EUR
446.0
100.0
UBS Financial Services Inc.
Wilmington, Delaware, USA
Global Wealth Management
USD
0.0
100.0
UBS Securities LLC
Wilmington, Delaware, USA
Investment Bank
USD
1,283.1
3
100.0
UBS Switzerland AG
Zurich, Switzerland
Personal & Corporate Banking
CHF
10.0
100.0
1 Includes direct
 
and indirect
 
subsidiaries of
 
UBS AG.
 
2 Consists of
 
common
 
share capital
 
of USD
1,000
 
and non-voting
 
preferred share
 
capital of
 
USD
5,150,000,000
.
 
3 Consists
 
of common
 
share capital
 
of
USD
100,000
 
and non-voting preferred
 
share capital of USD
1,283,000,000
.
 
Other subsidiaries
The table below
 
lists other direct
 
and indirect
 
subsidiaries of
 
UBS AG
 
that are not
 
individually significant but
 
contribute
to
 
the
 
Group’s
 
total
 
assets
 
and
 
aggregated
 
profit
 
before
 
tax
 
thresholds
 
and
 
are
 
thus
 
disclosed
 
in
 
accordance
 
with
requirements set by the SEC.
 
 
Other subsidiaries of UBS AG as of 31 December
 
2022
Company
Registered office
Primary business
Share capital in million
Equity interest
 
accumulated in %
UBS Asset Management (Americas) Inc.
Wilmington, Delaware, USA
Asset Management
USD
0.0
100.0
UBS Asset Management (Hong Kong) Limited
Hong Kong SAR, China
 
Asset Management
HKD
153.8
100.0
UBS Asset Management Life Ltd
London, United Kingdom
Asset Management
GBP
15.0
100.0
UBS Asset Management Switzerland AG
Zurich, Switzerland
Asset Management
CHF
0.5
100.0
UBS Business Solutions US LLC
Wilmington, Delaware, USA
Group Functions
USD
0.0
100.0
UBS Credit Corp.
Wilmington, Delaware, USA
Global Wealth Management
USD
0.0
100.0
UBS (France) S.A.
Paris, France
Global Wealth Management
EUR
197.0
100.0
UBS Fund Management (Luxembourg) S.A.
Luxembourg, Luxembourg
Asset Management
EUR
13.0
100.0
UBS Fund Management (Switzerland) AG
Basel, Switzerland
Asset Management
CHF
1.0
100.0
UBS (Monaco) S.A.
Monte Carlo, Monaco
Global Wealth Management
EUR
49.2
100.0
UBS O‘Connor LLC
Wilmington, Delaware, USA
Asset Management
USD
1.0
100.0
UBS Realty Investors LLC
Boston, Massachusetts, USA
Asset Management
USD
9.0
100.0
UBS Securities Australia Ltd
Sydney, Australia
Investment Bank
AUD
0.3
1
100.0
UBS Securities Hong Kong Limited
Hong Kong SAR, China
 
Investment Bank
HKD
3,354.2
100.0
UBS Securities Japan Co., Ltd.
Tokyo, Japan
Investment Bank
JPY
34,708.7
100.0
UBS SuMi TRUST Wealth Management Co., Ltd.
Tokyo, Japan
Global Wealth Management
JPY
5,165.0
51.0
1 Includes a nominal amount relating
 
to redeemable preference
 
shares.
 
Consolidated structured entities
Consolidated
 
structured
 
entities
 
(SEs)
 
include
 
certain
 
investment
 
funds,
 
securitization
 
vehicles
 
and
 
client
 
investment
vehicles. UBS has no individually significant
 
subsidiaries that are SEs.
In
 
2022
 
and
 
2021,
 
the
 
Group
 
did
 
not enter
 
into
 
any
 
contractual
 
obligation
 
that
 
could
 
require
 
the
 
Group
 
to
 
provide
financial
 
support
 
to
 
consolidated
 
SEs.
 
In
 
addition,
 
the
 
Group
 
did
 
not
 
provide
 
support,
 
financial
 
or
 
otherwise,
 
to
 
a
consolidated SE when
 
the Group was not contractually obligated to do
 
so, nor does the Group
 
have any
 
intention to do
so in the future. Further
 
more, the Group
 
did not provide support,
 
financial or otherwise, to
 
a previously unconsolidated
SE that resulted in the Group
 
controlling the SE during the reporting
 
period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
352
 
 
Note 28
 
Interests in subsidiaries and other entities
 
(continued)
 
b) Interests in associates and
 
joint ventures
As of 31 December 2022 and 2021,
 
no associate or joint
 
venture was individually material to
 
the Group. Also, there were
no significant restrictions on the
 
ability of associates
 
or joint ventures to
 
transfer funds to
 
UBS Group AG or
 
its subsidiaries
as cash
 
dividends or
 
to repay
 
loans or
 
advances made.
 
There
 
were no
 
quoted market
 
prices for
 
any associates
 
or joint
ventures of the Group.
In 2022,
 
UBS
 
reclassified its
 
minority
 
investment
 
(
49
%) in
 
its Japanese
 
real
 
estate joint
 
venture, Mitsubishi
 
Corp.-UBS
Realty Inc.,
 
of
 
USD
44
m
 
to
Properties
 
and
 
other
 
non-current
 
assets
 
held
 
for
 
sale
 
and
 
sold
 
the
 
shareholding.
 
The sale
resulted in a
 
pre-tax gain of
 
USD
848
m in
 
2022, which was recognized
 
in
Other income
. UBS’s asset
 
management, wealth
management and investment banking
 
businesses operating in Japan
 
were not affected by the sale.
 
Investments in associates and joint
 
ventures
USD m
2022
2021
Carrying amount at the beginning of the year
1,243
1,557
Additions
3
1
Reclassifications
1
(44)
(386)
Share of comprehensive income
(41)
150
of which: share of net profit
2
32
105
of which: share of other comprehensive income
3
(73)
45
Share of changes in retained earnings
0
1
Dividends received
(31)
(39)
Foreign currency translation
(30)
(39)
Carrying amount at the end of the year
1,101
1,243
of which: associates
1,098
1,200
of which: SIX Group AG, Zurich
4
954
1,043
of which: other associates
144
157
of which: joint ventures
3
43
of which: Mitsubishi Corp.-UBS Realty Inc.,
 
Tokyo
1
40
of which: other joint ventures
3
3
1 In 2022, UBS reclassified
 
its minority investment
 
(
49
%) in Mitsubishi Corp.-UBS
 
Realty Inc. of USD
44
m to Properties and
 
other non-current assets
 
held for sale and sold
 
the investment in the
 
same year.
 
In 2021,
UBS reclassified its minority investment
 
(
48.8
%) in Clearstream Fund Centre
 
AG of USD
386
m to Properties and other non-current
 
assets held for sale and sold the
 
investment in the same year.
 
2 For 2022, consists
of USD
27
m from associates and USD
5
m from joint ventures (for 2021, consists of USD
79
m from associates and USD
26
m from joint ventures).
 
3 For 2022, consists of negative USD
73
m from associates (for 2021,
consists of USD
44
m from associates and
 
USD
1
m from joint ventures).
 
4 In 2022, UBS
 
AG’s equity interest
 
amounted to
17.31
%. UBS AG is represented
 
on the Board of Directors.
 
c) Unconsolidated structured entities
UBS is
 
considered to
 
sponsor another
 
entity if, in addition
 
to ongoing
 
involvement with that
 
entity,
 
it had a
 
key role
 
in
establishing that entity or
 
in bringing together relevant
 
counterparties for a transaction
 
facilitated by that entity.
 
During
2022,
 
the Group
 
sponsored the
 
creation of
 
various SEs and
 
interacted with
 
a number
 
of non
 
-sponsored
 
SEs, including
securitization vehicles, client vehicles and certain
 
investment funds, that UBS did
 
not consolidate as of
 
31 December 2022
because it did not control the
 
m.
Interests in unconsolidated structured
 
entities
The table below presents the Group’s interests in and maximum exposure to loss from unconsolidated SEs, as well as the
total assets held by the SEs in which UBS
 
had an interest as of
 
year-end, except for investment funds
 
sponsored by third
parties, for which the carrying amount
 
of UBS’s interest as of year
 
-end has been disclosed.
 
Sponsored unconsolidated
 
structured entities in which UBS did
 
not have an interest at year-end
During 2022
 
and 2021,
 
the Group
 
did not earn
 
material income
 
from sponsored
 
unconsolidated
 
SEs in which
 
UBS did
not have an interest at year-end.
During 2022 and 2021,
 
UBS and third parties did not transfer any assets into sponsored securitization vehicles created in
the
 
year.
 
UBS
 
and
 
third
 
parties
 
transferred
 
assets,
 
alongside
 
deposits
 
and
 
debt
 
issuances
 
(which
 
are
 
assets
 
from
 
the
perspective of the vehicle),
 
of USD
1
bn and USD
3
bn, respectively, into sponsored
 
client vehicles created in 2022
 
(2021:
USD
1
bn
 
and
 
USD
2
bn,
 
respectively).
 
For
 
sponsored
 
investment
 
funds,
 
transfers
 
arose
 
during
 
the
 
period
 
as
 
investors
invested and
 
redeemed
 
positions, thereby
 
changing the
 
overall size
 
of the
 
funds,
 
which, when
 
combined with
 
market
movements, resulted in a total closing
 
net asset value of USD
38
bn (31 December 2021: USD
46
bn).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
353
 
 
Note 28
 
Interests in subsidiaries and other entities
 
(continued)
 
Interests in unconsolidated structured
 
entities
31.12.22
USD m, except where indicated
Securitization
vehicles
Client
vehicles
Investment
funds
Total
Maximum
exposure to loss
1
Financial assets at fair value held for trading
278
81
5,884
6,243
6,243
Derivative financial instruments
3
160
115
278
278
Loans and advances to customers
119
119
119
Financial assets at fair value not held for trading
225
225
225
Financial assets measured at fair value through
 
other comprehensive income
2
Other financial assets measured at amortized cost
2
837
4,977
3
2
5,817
6,066
Total assets
1,118
4
5,219
6,345
12,681
Derivative financial instruments
1
35
763
798
2
Total liabilities
1
35
763
798
Assets held by the unconsolidated structured
 
entities in which UBS had an interest
(USD bn)
50
5
107
6
139
7
31.12.21
USD m, except where indicated
Securitization
vehicles
Client
vehicles
Investment
funds
Total
Maximum
exposure to loss
1
Financial assets at fair value held for trading
246
162
6,743
7,151
7,151
Derivative financial instruments
5
45
155
205
205
Loans and advances to customers
125
125
125
Financial assets at fair value not held for trading
35
222
257
257
Financial assets measured at fair value through
 
other comprehensive income
324
4,525
4,849
4,849
Other financial assets measured at amortized cost
0
3
0
1
250
Total assets
610
4
4,732
7,247
12,588
Derivative financial instruments
2
11
281
294
Total liabilities
2
11
281
294
Assets held by the unconsolidated structured
 
entities in which UBS had an interest
(USD bn)
30
5
81
6
158
7
1 For the purpose of this
 
disclosure, maximum exposure
 
to loss amounts do not consider
 
the risk-reducing effects
 
of collateral or other credit
 
enhancements.
 
2 Effective
 
1 April 2022, a portfolio of assets
 
previously
classified as Financial assets measured
 
at fair value through other comprehensive
 
income was reclassified to
 
Other financial assets
 
measured at amortized cost. Refer
 
to Note 1b for more information.
 
3 Includes the
carrying amount of loan commitments. The
 
maximum exposure to loss for these instruments is equal to the notional amount.
 
4 As of 31 December 2022, USD
0.1
bn of the USD
1.1
bn (31 December 2021: USD
0.1
bn
of the USD
0.6
bn) was held in Group Functions
 
– Non-core and Legacy
 
Portfolio.
 
5 Represents the principal
 
amount outstanding.
 
6 Represents the market
 
value of total assets.
 
7 Represents the
 
net asset value
of the investment funds sponsored
 
by UBS and the carrying amount
 
of UBS’s interests
 
in the investment funds
 
not sponsored by UBS.
 
 
The Group retains or
 
purchases interests in
 
unconsolidated SEs in
 
the form of direct investments,
 
financing, guarantees,
letters of
 
credit
 
and
 
derivatives,
 
as well
 
as through
 
management contracts.
 
The Group’s
 
maximum exposure
 
to loss
 
is
generally equal to the carrying amount of the Group’s interest in the given SE, with this
 
subject to change over time with
market
 
movements.
 
Guarantees,
 
letters
 
of
 
credit
 
and
 
credit
 
derivatives
 
are
 
an
 
exception,
 
with
 
the
 
given
 
contract’s
notional amount, adjusted
 
for losses already incurred, representing
 
the maximum loss that the G
 
roup is exposed
 
to.
The
 
maximum
 
exposure
 
to
 
loss
 
disclosed
 
in
 
the
 
table
 
above does
 
not
 
reflect the
 
Group’s
 
risk management
 
activities,
including
 
effects
 
from
 
financial
 
instruments
 
that
 
may
 
be
 
used
 
to
 
economically
 
hedge
 
risks
 
inherent
 
in
 
the
 
given
unconsolidated SE or risk-reducing
 
effects of collateral or other credit enhancements.
In
 
2022
 
and
 
2021,
 
the
 
Group
 
did
 
not
 
provide
 
support,
 
financial
 
or
 
otherwise,
 
to
 
any
 
unconsolidated
 
SE
 
when
 
not
contractually obligated to do
 
so, nor does the Group have any
 
intention to do so
 
in the future.
In 2022
 
and
 
2021,
 
income and
 
expenses
 
from interests
 
in unconsolidated
 
SEs primarily
 
resulted from
 
mark-to-market
movements recognized
 
in
Other net
 
income
 
from
 
financial instruments
 
measured
 
at
 
fair value
 
through
 
profit
 
or
 
loss
,
which were generally hedged with other financial instruments, as well
 
as fee and commission income received from UBS-
sponsored funds.
Interests in securitization vehicles
As
 
of
 
31 December
 
2022
 
and
 
31 December
 
2021,
 
the
 
Group
 
held
 
interests,
 
both
 
retained
 
and
 
acquired,
 
in
 
various
securitization vehicles that relate to
 
financing, underwriting,
 
secondary market and derivative trading
 
activities.
The numbers outlined in the table above may
 
differ from the securitization positions presented in the 31 December 2022
Pillar 3
 
Report,
 
available
 
under
 
“Pillar 3
 
disclosures”
 
at
ubs.com/investors,
 
for
 
the
 
following
 
reasons:
 
(i) exclusion
 
of
synthetic securitizations
 
transacted with
 
entities that
 
are not
 
SEs and
 
transactions in
 
which the
 
Group did
 
not have
 
an
interest because it did not
 
absorb any risk;
 
(ii) a different measurement
 
basis in certain
 
cases (e.g., IFRS carrying
 
amount
within
 
the
 
previous
 
table
 
compared
 
with
 
net
 
exposure
 
amount
 
at
 
default
 
for
 
Pillar 3
 
disclosures);
 
and
 
(iii) different
classification of vehicles viewed as sponsored
 
by the Group versus sponsored
 
by third parties.
›
 
Refer to the 31 December
 
2022 Pillar 3 Report,
 
available under “Pillar
 
3 disclosures” at
ubs.com/investors,
for more information
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
354
 
 
Note 28
 
Interests in subsidiaries and other entities
 
(continued)
Interests in client vehicles
Client vehicles are
 
established predominantly for clients to gain exposure to specific
 
assets or risk exposures. Such vehicles
may enter into derivative
 
agreements,
 
with UBS or a
 
third party,
 
to align the cash
 
flows of the entity with
 
the investor’s
intended investment objective,
 
or to introduce other
 
desired risk exposures.
 
As of
 
31 December 2022
 
and 31 December 2021,
 
the Group retained
 
interests in client
 
vehicles sponsored
 
by UBS and
third parties that relate to financing,
 
secondary market and derivative
 
trading activities,
 
and to hedge structured product
offerings.
Interests in investment funds
Investment funds have a
 
collective investment objective,
 
and are
 
either passively managed,
 
so that any decision
 
-making
does not have a substantive effect
 
on variability,
 
or are actively managed
 
and investors or their governing bodies
 
do not
have substantive voting or similar rights
 
.
The Group holds interests
 
in a
 
number of investment funds,
 
primarily resulting from
 
seed investments or in
 
order to hedge
structured product
 
offerings. In
 
addition to
 
the interests disclosed
 
in the table
 
above, the
 
Group manages
 
the assets of
various pooled investment funds and
 
receives fees based, in whole or
 
in part, on the net asset value of the fund and / or
the performance of the fund. The specific fee structure is
 
determined based
 
on various market factors and considers the
fund’s nature
 
and the jurisdiction of
 
incorporation,
 
as well as fee schedules
 
negotiated with
 
clients. These fee contracts
represent an interest in the fund,
 
as they align the Group’s exposure with investors,
 
providing a variable return based on
the performance
 
of the
 
entity.
 
Depending
 
on
 
the structure
 
of the
 
fund,
 
these fees
 
may be
 
collected
 
directly
 
from the
fund’s assets and
 
/ or from the investors. Any
 
amounts due
 
are collected on a regular
 
basis and are generally
 
backed by
the fund’s
 
assets. Therefore,
 
interest in such
 
funds is not
 
represented by
 
the on-balance sheet
 
fee receivable but
 
rather
by
 
the
 
future
 
exposure
 
to
 
variable
 
fees.
 
The
 
total
 
assets
 
of
 
such
 
funds
 
were
 
USD
292
bn
 
and
 
USD
370
bn
 
as
 
of
31 December 2022
 
and 31 December 2021,
 
respectively, and have been excluded
 
from the table above.
 
The Group
 
did
not have any material exposure
 
to loss from these interests as of 31
 
December 2022 or as of 31
 
December 2021.
 
 
 
Note 29
 
Changes in organization and acquisitions and disposals
 
of subsidiaries and
 
businesses
 
Disposals of subsidiaries and businesses
Sale of UBS Swiss Financial Advisers AG
In the
 
third quarter
 
of 2022,
 
UBS
 
completed the
 
sale
 
of its
 
wholly owned
 
subsidiary UBS
 
Swiss Financial
 
Advisers
 
AG
(SFA) to Vontobel. UBS continues to refer US clients that want to have
 
discretionary portfolio management or investment
advisory services booked
 
in Switzerland
 
to Vontobel
 
SFA.
 
Upon
 
completion of the
 
sale, UBS
 
recorded a
 
pre-tax gain
 
of
USD
86
m in 2022, which was recognized in
Other income
.
Prior to completion of the sale, the assets and liabilities that were subject to the transaction were presented as a disposal
group held
 
for sale within
Other non-financial assets
 
and
Other non-financial liabilities
 
(31 December 2021:
 
USD
446
m
and USD
475
m, respectively).
Sale of wealth management business
 
in Spain
UBS completed
 
the sale of
 
its domestic
 
wealth
 
management business
 
in Spain
 
to Singular
 
Bank in
 
the third
 
quarter of
2022. The sale
 
included
 
the transition
 
of employees, client
 
relationships, products and services
 
of the
 
wealth management
business of UBS
 
in Spain and resulted in a pre-tax gain of
 
USD
133
m in 2022, which was recognized in
Other income
.
Prior to completion of the sale, the assets and liabilities that were subject to the transaction were presented as a disposal
group held
 
for sale within
Other non-financial assets
 
and
Other non-financial liabilities
 
(31 December 2021:
 
USD
647
m
and USD
823
m, respectively).
Sale of US alternative investments administration
 
business
In the
 
fourth quarter
 
of 2022,
 
UBS
 
sold
 
its US
 
alternative investments
 
administration
 
business
 
and
 
recorded
 
a pre
 
-tax
gain of USD
41
m gain in
Other income
.
Sale of investments in associates and
 
joint ventures
UBS sold its minority
 
investment (49%) in its Japanese real estate
 
joint venture, Mitsubishi Corp.-UBS Realty Inc., in 2022.
›
 
Refer to Note 28b
 
for more information
Acquisitions of subsidiaries and
 
businesses
Wealthfront
In August
 
2022, UBS and
 
Wealthfront mutually agreed
 
to terminate their
 
merger agreement, under
 
which Wealthfront
was to be acquired by UBS Americas Inc. In the third quarter of 2022, UBS purchased a USD
69.7
m note convertible into
Wealthfront shares.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
355
 
 
Note
 
30
 
Related parties
 
UBS defines related parties as associates (entities that
 
are significantly influenced by
 
UBS), joint ventures (entities in which
UBS shares control with another party), post
 
-employment benefit plans for UBS employees, key management personnel,
close
 
family
 
members
 
of
 
key
 
management
 
personnel
 
and
 
entities
 
that
 
are,
 
directly
 
or
 
indirectly,
 
controlled
 
or
 
jointly
controlled
 
by
 
key
 
management
 
personnel
 
or
 
their
 
close
 
family
 
members.
 
Key
 
management
 
personnel
 
is
 
defined
 
as
members of the Board of Directors
 
(the BoD) and
 
Group Executive Board (the
 
GEB).
 
a) Remuneration of key
 
management personnel
The
 
Vice Chairman
 
of
 
the
 
BoD
 
has
 
a
 
specific management
 
employment
 
contract
 
and
 
receives pension
 
benefits
 
upon
retirement. Total
 
remuneration
 
of the Chairman
 
and the Vice Chairman
 
of the BoD and
 
all GEB members
 
is included in
the table below.
 
 
Remuneration of key management
 
personnel
USD m, except where indicated
31.12.22
31.12.21
31.12.20
Base salaries and other cash payments
1
27
31
33
Incentive awards – cash
2
17
17
18
Annual incentive award under DCCP
25
26
27
Employer’s contributions to retirement
 
benefit plans
2
3
3
Benefits in kind, fringe benefits (at market
 
value)
1
1
1
Share-based compensation
3
45
45
47
Total
118
124
129
Total (CHF m)
4
114
113
121
1 May include role-based
 
allowances in line
 
with market practice
 
and regulatory requirements.
 
2 The cash
 
portion may also include
 
blocked shares in
 
line with regulatory
 
requirements.
 
3 Compensation
 
expense
is based on the
 
share price on
 
grant date
 
taking into
 
account perform
 
ance conditions.
 
Refer to Note
 
27 for
 
more information.
 
For GEB
 
members, share
 
-based compensation
 
for 2022,
 
2021 and 2020
 
was entirely
composed of LTIP
 
awards. For the
 
Chairman of the BoD the share
 
-based compensation for 2022,
 
2021 and 2020 was
 
entirely composed of
 
UBS shares.
 
4 Swiss franc amounts disclosed
 
represent the respective
 
US
dollar amounts translated at
 
the applicable performance
 
award currency exchange
 
rates (2022: USD /
 
CHF
0.96
; 2021: USD / CHF
0.92
; 2020: USD / CHF
0.94
).
 
 
The independent members of the BoD
 
,
 
including the Chairman, do not have employment or service contracts
 
with UBS,
and thus are not entitled to benefits upon termination of their service on the BoD. Payments to
 
these individuals for their
services as independent
 
members of the
 
BoD amounted
 
to USD
11.1
m (CHF
10.7
m) in 2022,
 
USD
7.5
m (CHF
6.9
m) in
2021 and USD
7.0
m (CHF
6.6
m) in 2020.
 
b) Equity holdings of key management
 
personnel
Equity holdings of key management
 
personnel
1
31.12.22
31.12.21
Number of UBS Group AG shares held by members of the
 
BoD, GEB and parties closely
 
linked to them
2
3,009,686
4,597,006
1 No options were held in
 
2022 and 2021
 
by non-independent members
 
of the BoD and any GEB
 
member or any of
 
its related parties.
 
2 Excludes shares
 
granted under variable
 
compensation plans with
 
forfeiture
provisions.
 
Of the share totals above, no shares
 
were held by close family members of key management personnel
 
on 31 December
2022 and 31 December 2021. No shares were held
 
by entities that
 
are directly or indirectly controlled or jointly controlled
by
 
key
 
management
 
personnel
 
or
 
their
 
close
 
family members
 
on
 
31 December
 
2022
 
and
 
31 December
 
2021.
 
As
 
of
31 December
 
2022,
 
no
 
member of
 
the BoD
 
or GEB
 
was the
 
beneficial owner
 
of more
 
than 1%
 
of
 
the shares
 
in UBS
Group AG.
 
 
c) Loans, advances and mortgages to
 
key management
 
personnel
The non
 
-independent members
 
of the BoD
 
and GEB members
 
are granted
 
loans, fixed
 
advances and
 
mortgages in
 
the
ordinary
 
course
 
of
 
business
 
on
 
substantially
 
the
 
same
 
terms
 
and
 
conditions
 
that
 
are
 
available
 
to
 
other
 
employees,
including interest rates and collateral,
 
and neither involve more than the
 
normal risk of collectability
 
nor contain any other
unfavorable features for the firm. Independent BoD members are granted loans and mortgages in the ordinary course of
business at general market conditions.
Movements in the loan, advances and
 
mortgage balances are as follows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
356
 
 
Note 30
 
Related parties (continued)
 
 
Loans, advances and mortgages
 
to key management personnel
1
USD m, except where indicated
2022
2021
Balance at the beginning of the year
34
38
Additions
8
11
Reductions
(9)
(15)
Balance at the end of the year
2
33
34
Balance at the end of the year (CHF
 
m)
2, 3
31
31
1 All loans are secured loans.
 
2 There were no
 
unused uncommitted credit
 
facilities as of 31 December
 
2022 and 31 December
 
2021.
 
3 Swiss franc amounts
 
disclosed represent the respective
 
US dollar amounts
translated at the relevant year-end
 
closing exchange
 
rate.
 
d) Other related-party
 
transactions with entities controlled by
 
key management personnel
In 202
 
2
 
and
 
2021, UBS
 
did
 
not enter
 
into transactions
 
with
 
entities that
 
are
 
directly
 
or
 
indirectly
 
controlled
 
or jointly
controlled
 
by
 
UBS’s
 
key
 
management
personnel
 
or
 
their
 
close
 
family
 
members
 
and
 
as
 
of
 
31
 
December
 
202
2
,
31
 
December
 
20
21
 
and
 
31
 
December
 
20
20
,
 
there
 
were
 
no
 
outstanding
 
balances
 
related
 
to
 
such
 
transactions.
Furthermore, in 202
 
2
 
and 2021, entities controlled by key management personnel
 
did not sell any goods or provide
 
any
services to
 
UBS,
 
and therefore
 
did
 
not receive
 
any fees
 
from
 
UBS.
 
UBS
 
also did
 
not provide
 
services to
 
such entities
 
in
2022
 
and 2021, and therefore also received
 
no fees.
 
e) Transactions with associates and
 
joint ventures
Loans to and outstanding
 
receivables from associates and joint
 
ventures
USD m
2022
2021
Carrying amount at the beginning of the year
251
630
Additions
402
133
Reductions
(438)
(497)
Foreign currency translation
1
(14)
Carrying amount at the end of the year
 
217
251
of which: unsecured loans and receivables
209
243
Other transactions with associates and joint
 
ventures
As of or for the year ended
USD m
31.12.22
31.12.21
Payments to associates and joint ventures for goods
 
and services received
138
157
Fees received for services provided to
 
associates and joint ventures
4
104
Liabilities to associates and joint ventures
90
127
Commitments and contingent liabilities to associates and
 
joint ventures
7
7
›
 
Refer to Note 28
 
for an overview
 
of investments
 
in associates and
 
joint ventures
 
 
 
Note 31
 
Invested assets and net new money
 
The
 
following
 
disclosures
 
provide
 
a
 
breakdown
 
of
 
UBS’s
 
invested
 
assets
 
and
 
a
 
presentation
 
of
 
their
 
development,
including net new money,
 
as required by the Swiss
 
Financial Market Supervisory Authority
 
(FINMA).
 
Invested assets
Invested assets
 
consist of
 
all client
 
assets
 
managed
 
by or
 
deposited with
 
UBS
 
for investment
 
purposes.
 
Invested
 
assets
include managed
 
fund assets,
 
managed institutional
 
assets,
 
discretionary
 
and
 
advisory wealth
 
management portfolios,
fiduciary deposits, time deposits, savings
 
accounts, and wealth management securities
 
or brokerage accounts. All assets
held
 
for
 
purely
 
transactional
 
purposes
 
and
 
custody-only
 
assets,
 
including
 
corporate
 
client
 
assets
 
held
 
for
 
cash
management and
 
transactional purposes,
 
are excluded
 
from invested
 
assets, as
 
the
 
Group
 
only administers
 
the assets
and does not
 
offer advice on
 
how they
 
should be invested.
 
Also excluded
 
are non-bankable
 
assets (e.g., art
 
collections)
and deposits from third-party
 
banks for funding
 
or trading purposes.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
357
 
 
Note 31
 
Invested assets and net new money
 
(continued)
Discretionary assets
 
are defined
 
as client
 
assets that
 
UBS decides
 
how to
 
invest. Other
 
invested assets
 
are those
 
where
the client ultimately
 
decides how
 
the assets are
 
invested. When
 
a single
 
product is created
 
in one business
 
division and
sold
 
in
 
another,
 
it is
 
counted
 
in both
 
the business
 
division
 
managing
 
the
 
investment and
 
the one
 
distributing
 
it.
 
This
results
 
in
 
double
 
counting
 
within
 
UBS’s
 
total
 
invested
 
assets
 
and
 
net
 
new
 
money,
 
as
 
both
 
business
 
divisions
 
are
independently providing
 
a service to their respective clients, and both
 
add value and generate revenue.
Net new money
Net new money in a reporting
 
period is the amount of invested assets
 
entrusted to UBS by new
 
and existing clients, less
those withdrawn by existing clients and
 
clients who terminated relationships
 
with UBS.
Net
 
new
 
money is
 
calculated using
 
the direct
 
method, under
 
which inflows
 
and outflows
 
to /
 
from invested
 
assets are
determined at the client
 
level,
 
based on transactions.
 
Interest and
 
dividend income
 
from invested assets
 
are not counted as
net new money inflows. Market and currency
 
movements,
 
as well as fees, commissions
 
and interest on loans charged,
 
are
excluded from net new money, as are effects resulting
 
from any acquisition or divestment
 
of a UBS subsidiary or business.
Reclassifications between
 
invested
 
assets
 
and
 
custody-only assets
 
as
 
a
 
result
 
of
 
a
 
change
 
in
 
service
 
level delivered
 
are
generally treated as net
 
new money flows.
 
However, where the change
 
in service level directly results from
 
an
 
externally
imposed regulation or
 
a strategic decision by
 
UBS to
 
exit a
 
market or specific service offering,
 
the one-time net
 
effect is
reported as
Other effects
.
The Investment Bank does
 
not track invested assets and net new
 
money. However, when
 
a client is transferred from the
Investment Bank
 
to another
 
business
 
division, this
 
may produce
 
net new
 
money even
 
though
 
the client’s
 
assets were
already with UBS.
 
 
Invested assets and net new
 
money
As of or for the year ended
USD bn
31.12.22
31.12.21
Fund assets managed by UBS
390
419
Discretionary assets
1,440
1,705
Other invested assets
2,127
2,472
Total invested assets
1
3,957
4,596
of which: double counts
340
356
Net new money
1
68
159
1 Includes double counts.
 
Development of invested assets
USD bn
2022
2021
Total invested assets at the beginning
 
of the year
1
4,596
4,187
Net new money
68
159
Market movements
2
(595)
339
Foreign currency translation
(72)
(65)
Other effects
(40)
(24)
of which: acquisitions / (divestments)
(19)
(5)
Total invested assets at the end
 
of the year
1
3,957
4,596
1 Includes double counts.
 
2 Includes interest and
 
dividend income.
 
 
 
 
Note 32
 
Currency translation rates
 
The following table shows the rates
 
of the main currencies used to translate
 
the financial information of UBS’s operations
with a functional currency other
 
than the US dollar into US
 
dollars.
 
Closing exchange rate
Average rate
1
As of
For the year ended
31.12.22
31.12.21
31.12.22
31.12.21
31.12.20
1 CHF
1.08
1.10
1.05
1.09
1.07
1 EUR
1.07
1.14
1.05
1.18
1.15
1 GBP
1.21
1.35
1.23
1.37
1.29
100 JPY
0.76
0.87
0.76
0.91
0.94
1 Monthly income statement
 
items of operations
 
with a functional
 
currency other than
 
the US dollar
 
are translated
 
into US dollars
 
using month-end rates.
 
Disclosed average
 
rates for a
 
year represent
 
an average of
twelve month-end
 
rates, weighted
 
according to
 
the income
 
and expense
 
volumes
 
of all
 
operations of
 
the Group with
 
the same
 
functional currency
 
for each
 
month. Weighted
 
average rates
 
for individual
 
business
divisions may deviate from the
 
weighted average rates
 
for the Group.
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
358
 
 
Note 33
 
Main differences between IFRS and
 
Swiss GAAP
 
The consolidated financial
 
statements of UBS
 
Group AG are prepared
 
in accordance with International Financial
 
Reporting
Standards (IFRS). The
 
Swiss Financial Market Supervisory Authority (FINMA) requires
 
financial groups presenting
 
financial
statements
 
under
 
IFRS
 
to
 
provide
 
a
 
narrative
 
explanation
 
of
 
the
 
main
 
differences
 
between
 
IFRS
 
and
 
Swiss
 
generally
accepted accounting principles (GAAP)
 
(the FINMA Accounting Ordinance, FINMA Circular
 
2020/1 “Accounting – banks”
and
 
the
 
Banking
 
Ordinance
 
(the
 
BO)).
 
Included
 
in
 
this
 
Note
 
are
 
the
 
significant
 
differences
 
in
 
the
 
recognition
 
and
measurement
 
between
 
IFRS
 
and
 
the
 
provisions
 
of
 
the
 
BO
 
and
 
the
 
guidelines
 
of
 
FINMA
 
governing
 
true
 
and
 
fair view
financial statement reporting
 
pursuant to Art. 25
 
to Art. 42 of the BO.
1.
 
Consolidation
Under IFRS,
 
all entities that
 
are controlled
 
by the holding
 
entity are consolidated.
 
Under Swiss GAAP
 
controlled entities
deemed immaterial
 
to a g
 
roup or
 
those held
 
only temporarily are
 
exempt from
 
consolidation, but
 
instead are
 
recorded
as participations accounted for under the equity
 
method of accounting or as financial investments
 
measured at the lower
of cost or market value.
2. Classification and measurement
 
of financial assets
Under IFRS,
 
debt instruments
 
are measured
 
at amortized
 
cost, fair
 
value through
 
other comprehensive
 
income (FVOCI)
or fair value
 
through
 
profit or loss
 
(FVTPL), depending
 
on the
 
nature of
 
the business
 
model within
 
which the
 
particular
asset is held
 
and the
 
characteristics of
 
the contractual
 
cash flows of
 
the asset.
 
Equity instruments
 
are accounted
 
for at
FVTPL by UBS. Under Swiss GAAP,
 
trading assets and derivatives are measured at FVTPL,
 
in line with IFRS. However, non-
trading debt
 
instruments are
 
generally measured
 
at amortized
 
cost, even
 
when the
 
assets are
 
managed
 
on a
 
fair value
basis. In addition, the measurement of financial
 
assets in the form of securities depends
 
on the nature of the asset: debt
instruments not held to maturity,
 
i.e.,
 
instruments available for sale,
 
and equity instruments
 
with no permanent holding
intent,
 
are
 
classified
 
as
Financial investments
 
and
 
measured
 
at
 
the
 
lower of
 
(amortized)
 
cost
 
or
 
market value.
 
Market
value
 
adjustments
 
up
 
to
 
the
 
original
 
cost
 
amount
 
and
 
realized
 
gains
 
or
 
losses
 
upon
 
disposal
 
of
 
the
 
investment
 
are
recorded in the income statement as
Other income
 
from
 
ordinary activities.
Equity instruments with a permanent holding
intent
 
are
 
classified
 
as
 
participations
 
in
Non-consolidated
 
investments in
 
subsidiaries
 
and
 
other
 
participations
 
and
 
are
measured at cost less impairment.
 
Impairment losses are recorded in the income statement as
Impairment of investments
in non-consolidated
 
subsidiaries and
 
other participations.
 
Reversals of
 
impairments
 
up to
 
the original
 
cost amount
 
and
realized gains or losses
 
upon disposal of the investment are recorded
 
as
Extraordinary income / Extraordinary expenses
.
3. Fair value option applied
 
to financial liabilities
Under IFRS, UBS applies the fair value option to certain financial liabilities not held for trading.
 
Instruments for which the
fair value option is applied are accounted for at FVTPL. The amount of change in the fair value attributable to changes in
UBS’s own credit is presented
 
in
Other comprehensive income
 
directly within
Retained earnings
. The fair value option
 
is
applied primarily to issued
 
structured debt instruments, certain
 
non-structured debt instruments,
 
certain payables under
repurchase agreements and
 
cash collateral on securities lending agreements,
 
amounts due under unit-linked investment
contracts, and brokerage
 
payables.
Under
 
Swiss GAAP,
 
the fair
 
value option
 
can only
 
be applied
 
to structured
 
debt instruments
 
consisting
 
of a
 
debt host
contract and
 
one or
 
more embedded
 
derivatives that do
 
not relate
 
to own
 
equity.
 
Furthermore, unrealized
 
changes
 
in
fair value attributable
 
to changes
 
in UBS’s
 
own credit
 
are not
 
recognized, whereas
 
realized own
 
credit is
 
recognized
 
in
 
Net trading income
.
4. Allowances and provisions for credit
 
losses
Swiss GAAP permit use of IFRS for
 
accounting for allowances and provisions for credit losses based on an expected credit
loss (ECL) model. UBS has chosen to apply the IFRS 9
 
ECL approach to those exposures that are in the
 
ECL scope of both
frameworks, IFRS and Swiss GAAP
 
.
For the small
 
residual exposures
 
within the
 
scope of Swiss GAAP
 
ECL requirements, which
 
are not subject to
 
ECL under
IFRS due to classification differences,
 
UBS applies alternative approaches
 
.
 
–
 
For exposures for which Pillar 1 internal ratings-based
 
models are applied to measure credit risk, ECL is determined
 
by
the regulatory expected loss (EL), with an add-on for scaling up to the
 
residual maturity of exposures maturing beyond
the next
 
12
 
months,
 
as appropriate.
 
For detailed
 
information
 
on
 
regulatory EL,
 
refer to
 
the “Risk
 
management and
control”
 
section of this report.
 
–
 
For exposures
 
for which
 
the Pillar 1
 
standardized approach
 
is used
 
to measure
 
credit risk,
 
ECL is
 
determined using
 
a
portfolio approach
 
that derives
 
a conservative
 
probability of
 
default (PD)
 
and a
 
conservative
 
loss given
 
default (LGD)
for the entire portfolio.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
359
 
 
Note 33
 
Main differences between IFRS and
 
Swiss GAAP (continued)
5. Hedge accounting
Under IFRS, when cash flow hedge
 
accounting is applied, the
 
fair value gain or
 
loss on the
 
effective portion of a derivative
designated as
 
a cash flow
 
hedge is
 
recognized initially
 
in equity and
 
reclassified to
 
the income
 
statement when
 
certain
conditions are
 
met.
 
When fair value
 
hedge accounting
 
is applied, the fair
 
value change of
 
the hedged item attributable
to the hedged risk is reflected in the measurement
 
of the hedged item and
 
is recognized in the income statement
 
along
with the
 
change
 
in the
 
fair value
 
of the
 
hedging
 
derivative.
 
Under
 
Swiss GAAP,
 
the
 
effective portion
 
of the
 
fair value
change of a derivative instrument
 
designated as a cash flow
 
or as a fair value hedge
 
is deferred on the balance sheet
 
as
Other assets
 
or
Other liabilities
. The carrying amount
 
of the hedged item designated
 
in fair value hedges is not
 
adjusted
for fair value changes attributable to the
 
hedged risk.
6. Goodwill and intangible
 
assets
Under IFRS, goodwill acquired
 
in a business combination is not amortized but tested annually
 
for impairment. Intangible
assets
 
with
 
an
 
indefinite
 
useful
 
life
 
are
 
also
 
not
 
amortized
 
but
 
tested
 
annually
 
for
 
impairment.
 
Under
 
Swiss
 
GAAP,
goodwill and
 
intangible assets with
 
indefinite useful lives are
 
amortized over a
 
period not
 
exceeding five years, unless
 
a
longer
 
useful
 
life,
 
which
 
may
 
not
 
exceed
10
 
years,
 
can
 
be
 
justified.
 
In
 
addition,
 
these
 
assets
 
are
 
tested
 
annually
 
for
impairment.
7. Post-employment benefit
 
plans
Swiss GAAP
 
permit the use
 
of IFRS or Swiss
 
accounting standards
 
for post-employment
 
benefit plans,
 
with the election
made on a plan-by-plan basis.
UBS
 
has
 
elected
 
to
 
apply
 
IFRS
 
(IAS 19)
 
for
 
the
 
non-Swiss
 
defined
 
benefit
 
plans
 
in
 
the
 
UBS
 
AG
 
standalone
 
financial
statements and Swiss GAAP (FER
 
16) for the Swiss pension
 
plan in the UBS AG
 
and the UBS Switzerland AG standalone
financial statements. The requirements of Swiss
 
GAAP are better aligned with the specific nature of Swiss pension plans,
which are
 
hybrid in
 
that they
 
combine elements
 
of defined
 
contribution
 
and
 
defined benefit
 
plans,
 
but are
 
treated as
defined
 
benefit
 
plans
 
under
 
IFRS.
 
Key
 
differences
 
between
 
Swiss
 
GAAP
 
and
 
IFRS
 
include
 
the
 
treatment
 
of
 
dynamic
elements, such as future salary
 
increases and future interest
 
credits on retirement savings, which are
 
not considered under
the static
 
method
 
used in
 
accordance with
 
Swiss GAAP.
 
Also, the
 
discount
 
rate used
 
to determine
 
the defined
 
benefit
obligation in accordance
 
with IFRS is
 
based on the yield
 
of high-quality corporate
 
bonds of
 
the market in
 
the respective
pension
 
plan
 
country.
 
The
 
discount
 
rate
 
used
 
in
 
accordance
 
with
 
Swiss
 
GAAP
 
(i.e.,
 
the
 
technical
 
interest
 
rate)
 
is
determined by the Pension Foundation
 
Board based on the expected returns
 
of the Board’s investment strategy.
For defined
 
benefit plans,
 
IFRS require
 
the full
 
defined benefit
 
obligation
 
net of
 
the plan
 
assets to
 
be recorded
 
on
 
the
balance sheet subject to the
 
asset ceiling rules, with
 
changes resulting from remeasurements
 
recognized directly in equity.
However, for non-Swiss defined
 
benefit plans for which IFRS accounting
 
is elected, changes
 
due to remeasurements are
recognized in the income statement of UBS
 
AG standalone under
 
Swiss GAAP.
Swiss GAAP
 
require employer
 
contributions to
 
the pension
 
fund to
 
be recognized as
 
personnel expenses
 
in the income
statement. Swiss
 
GAAP also require an
 
assessment of whether, based
 
on the pension fund’s
 
financial statements
 
prepared
in accordance
 
with Swiss
 
accounting
 
standards (FER
 
26), an
 
economic benefit
 
to, or
 
obligation of,
 
the employer
 
arises
from
 
the
 
pension
 
fund
 
that
 
is
 
recognized
 
in
 
the
 
balance
 
sheet
 
when
 
conditions
 
are
 
met. Conditions
 
for
 
recording
 
a
pension asset
 
or liability would
 
be met
 
if, for
 
example, an
 
employer contribution
 
reserve is
 
available or
 
the employer
 
is
required to contribute to the
 
reduction of a pension deficit (on
 
an FER 26 basis).
8. Leasing
Under
 
IFRS,
 
a
 
single
 
lease
 
accounting
 
model
 
applies
 
that
 
requires
 
UBS
 
to
 
record
 
a
 
right-of-use
 
(RoU)
 
asset
 
and
 
a
corresponding
 
lease liability on
 
the balance sheet
 
when UBS
 
is a lessee
 
in a
 
lease arrangement.
 
The RoU
 
asset and
 
the
lease liability
 
are recognized
 
when UBS
 
acquires control
 
of the
 
physical use
 
of the
 
asset. The
 
lease liability
 
is measured
based on the present value of
 
the lease payments over the lease term, discounted using UBS’s unsecured borrowing rate.
The RoU asset is recorded at
 
an amount equal to
 
the lease liability
 
but is adjusted for rent
 
prepayments, initial direct costs,
any costs to refurbish the leased asset and
 
/ or lease incentives received. The RoU asset is depreciated over the shorter of
the lease term or the useful life of the
 
underlying asset.
Under
 
Swiss
 
GAAP,
 
leases
 
that
 
transfer
 
substantially
 
all
 
the
 
risks
 
and
 
rewards,
 
but
 
not
 
necessarily
 
legal
 
title
 
in
 
the
underlying assets, are
 
classified as finance
 
leases. All other
 
leases are classified
 
as operating leases. Whereas finance
 
leases
are recognized on the
 
balance sheet and measured in line with
 
IFRS, operating leases are not
 
recognized on the balance
sheet,
 
with
 
payments
 
recognized
 
as
General
 
and
 
administrative
 
expenses
 
on
 
a straight-line
 
basis
 
over
 
the
 
lease
 
term,
which
 
commences with
 
control
 
of
 
the
 
physical
 
use
 
of
 
the
 
asset.
 
Lease
 
incentives
 
are
 
treated
 
as
 
a
 
reduction
 
of
 
rental
expense and recognized
 
on a consistent basis over the lease term.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
financial
 
statements
 
360
 
 
Note 33
 
Main differences between IFRS and
 
Swiss GAAP (continued)
9. Netting of derivative assets and
 
liabilities
Under IFRS, derivative assets,
 
derivative liabilities and related cash collateral not settled to market are reported on a gross
basis
 
unless
 
the
 
restrictive
 
IFRS
 
netting
 
requirements
 
are
 
met:
 
(i) existence
 
of
 
master
 
netting
 
agreements
 
and
 
related
collateral arrangements
 
that are
 
unconditional
 
and
 
legally enforceable,
 
in both
 
the normal
 
course of
 
business
 
and the
event of default, bankruptcy or insolvency of UBS
 
and its counterparties; and (
 
ii) UBS’s intention to either settle on a
 
net
basis or to realize
 
the asset and settle
 
the liability simultaneously.
 
Under Swiss GAAP, derivative assets, derivative liabilities
and related
 
cash collateral not
 
settled to market
 
are generally
 
reported on
 
a net basis, provided
 
the master netting
 
and
the
 
related
 
collateral
 
agreements
 
are
 
legally
 
enforceable
 
in
 
the
 
event
 
of
 
default,
 
bankruptcy
 
or
 
insolvency
 
of
 
UBS’s
counterparties.
10. Negative interest
Under
 
IFRS, negative
 
interest
 
income
 
arising
 
on
 
a financial
 
asset does
 
not meet
 
the definition
 
of interest
 
income and,
therefore, negative
 
interest on
 
financial assets
 
and negative
 
interest on
 
financial liabilities
 
are presented
 
within interest
expense and
 
interest income,
 
respectively.
 
Under
 
Swiss GAAP,
 
negative interest
 
on financial
 
assets is
 
presented
 
within
interest income and negative interest
 
on financial liabilities is presented
 
within interest expense.
11. Extraordinary income
 
and expense
Certain non-recurring
 
and non
 
-operating income
 
and expense
 
items, such as
 
realized
 
gains or
 
losses from
 
the disposal
of participations, fixed and intangible assets, and reversals of
 
impairments of participations and fixed assets, are classified
as extraordinary items under Swiss
 
GAAP.
 
This distinction is not available under
 
IFRS.
p
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
information
 
361
 
UBS AG consolidated financial information
This section
 
contains a
 
comparison of
 
selected financial
 
and
 
capital information
 
between
 
UBS
 
Group AG
 
consolidated
and
 
UBS
 
AG consolidated.
 
Information
 
for UBS
 
AG
 
consolidated
 
does
 
not differ
 
materially
 
from
 
UBS
 
Group
 
AG on
 
a
consolidated basis.
 
Comparison between UBS Group AG
 
consolidated and UBS AG
 
consolidated
The accounting policies applied under
 
International Financial Reporting
 
Standards (IFRS)
 
to both the UBS Group
 
AG and
the UBS AG consolidated
 
financial statements are identical.
 
However, there are certain scope and
 
presentation differences
as noted below:
–
 
Assets, liabilities, revenues, operating
 
expenses and tax expenses / (benefits) relating to
 
UBS Group AG and its directly
held
 
subsidiaries,
 
including
 
UBS
 
Business
 
Solutions
 
AG,
 
are
 
reflected
 
in
 
the
 
consolidated
 
financial
 
statements
 
of
UBS Group AG but not of
 
UBS AG. UBS AG’s assets, liabilities,
 
revenues and operating expenses
 
related to transactions
with UBS
 
Group AG and
 
its directly held
 
subsidiaries, including
 
UBS Business
 
Solutions AG and
 
other shared
 
services
subsidiaries, are not subject to elimination
 
in the UBS AG consolidated
 
financial statements, but
 
are eliminated in the
UBS Group AG
 
consolidated financial statements.
–
 
Differences in net profit between UBS
 
Group AG consolidated and
 
UBS AG consolidated mainly arise as UBS Business
Solutions AG
 
and other
 
shared services subsidiaries
 
of UBS
 
Group AG
 
charge other legal
 
entities within
 
the UBS
 
AG
consolidation
 
scope for
 
services provided,
 
including
 
a markup
 
on
 
costs incurred.
 
In addition,
 
and to
 
a lesser
 
extent,
differences arise as a result of certain
 
compensation-related matters, including
 
pensions.
–
 
The
 
equity
 
of
 
UBS
 
Group
 
AG
 
consolidated
 
was
 
USD 0.3bn
 
higher
 
than
 
the
 
equity
 
of
 
UBS
 
AG
 
consolidated
 
as
 
of
31 December 2022. This difference
 
was mainly
 
driven by higher
 
dividends paid by UBS AG
 
to UBS Group AG compared
with
 
the
 
dividend
 
distributions
 
of
 
UBS
 
Group AG,
 
as
 
well
 
as
 
higher
 
retained
 
earnings
 
in
 
the
 
UBS Group
 
AG
consolidated
 
financial
 
statements,
 
largely
 
related
 
to
 
the
 
aforementioned
 
markup
 
charged
 
by
 
shared
 
services
subsidiaries of UBS Group AG to other legal entities in the UBS AG scope of consolidation. In addition, UBS Group AG
is the grantor of the
 
majority of the compensation plans of the Group
 
and recognizes share premium for
 
equity-settled
awards granted. These effects were largely offset
 
by treasury shares acquired as part of
 
our share repurchase programs
and those
 
held to
 
hedge share
 
delivery obligations associated
 
with Group
 
compensation
 
plans, as
 
well as additional
share
 
premium
 
recognized
 
at
 
the
 
UBS AG
 
consolidated
 
level
 
related
 
to
 
the
 
establishment
 
of
 
UBS
 
Group
 
AG
 
and
UBS Business Solutions
 
AG, a wholly owned subsidiary of UBS
 
Group AG.
–
 
The going
 
concern capital
 
of UBS
 
Group AG
 
consolidated was
 
USD 3.6bn higher
 
than the
 
going concern
 
capital of
UBS AG
 
consolidated
 
as of
 
31 December 2022,
 
reflecting higher
 
common equity
 
tier 1 (CET1)
 
capital of
 
USD 2.5bn
and going concern loss
 
-absorbing additional tier 1 (AT1)
 
capital of USD 1.0bn.
 
–
 
The
 
CET1
 
capital
 
of
 
UBS
 
Group
 
AG
 
consolidated
 
was
 
USD 2.5bn
 
higher
 
than
 
that
 
of
 
UBS
 
AG
 
consolidated
 
as
 
of
31 December 2022, primarily
 
due to lower
 
UBS Group AG
 
accruals for dividends
 
to shareholders and USD 0.3bn
 
higher
UBS
 
Group
 
AG
 
consolidated
 
IFRS
 
equity.
 
The
 
aforementioned
 
factors
 
were
 
partly
 
offset
 
by
 
compensation-related
regulatory capital accruals at the UBS
 
Group AG level.
 
–
 
The going concern loss-absorbing
 
AT1 capital of UBS Group AG consolidated was USD 1.0bn higher than that of UBS
AG consolidated as of
 
31 December 2022,
 
mainly reflecting Deferred Contingent
 
Capital Plan awards granted
 
at the
Group
 
level to
 
eligible employees
 
for the
 
performance years
 
2017
 
to 2021,
 
partly offset
 
by four
 
loss-absorbing
 
AT1
capital instruments on-lent by UBS Group
 
AG to UBS AG.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
information
 
362
 
 
UBS AG consolidated key
 
figures
As of or for the year ended
USD m, except where indicated
31.12.22
31.12.21
31.12.20
Results
Total revenues
 
34,915
 
35,828
 
33,474
Credit loss expense / (release)
 
29
 
(148)
 
695
Operating expenses
 
25,927
 
27,012
 
25,081
Operating profit / (loss) before tax
 
8,960
 
8,964
 
7,699
Net profit / (loss) attributable to shareholders
 
7,084
 
7,032
 
6,196
Profitability and growth
1
Return on equity (%)
 
12.6
 
12.3
 
10.9
Return on tangible equity
 
(%)
 
14.2
 
13.9
 
12.4
Return on common equity tier 1 capital (%)
 
16.8
 
17.6
 
16.6
Return on leverage ratio denominator,
 
gross (%)
2
 
3.4
 
3.4
 
3.4
Cost / income ratio (%)
 
74.3
 
75.4
 
74.9
Net profit growth (%)
 
0.7
 
13.5
 
56.3
Resources
1
Total assets
 
1,105,436
 
1,116,145
 
1,125,327
Equity attributable to shareholders
 
56,598
 
58,102
 
57,754
Common equity tier 1 capital
3
 
42,929
 
41,594
 
38,181
Risk-weighted assets
3
 
317,823
 
299,005
 
286,743
Common equity tier 1 capital ratio (%)
3
 
13.5
 
13.9
 
13.3
Going concern capital ratio (%)
3
 
17.2
 
18.5
 
18.3
Total loss-absorbing capacity ratio (%)
3
 
32.0
 
33.3
 
34.2
Leverage ratio denominator
2,3
 
1,029,561
 
1,067,679
 
1,036,771
Common equity tier 1 leverage ratio
 
(%)
2,3
 
4.17
 
3.90
 
3.68
Other
Invested assets (USD bn)
4
 
3,957
 
4,596
 
4,187
Personnel (full-time equivalents)
 
47,628
 
47,067
 
47,546
1 Refer to the “Targets,
 
aspirations and
 
capital guidance” section of this
 
report for more information
 
about our performance measurement.
 
2 Leverage ratio denominators
 
and leverage ratios for
 
year 2020 do not
reflect the
 
effects of the temporary
 
exemption that
 
applied from
 
25 March 2020
 
until 1 January
 
2021 and was
 
granted by FINMA
 
in connection
 
with COVID
 
-19. Refer to the
 
“Regulatory and
 
legal developments”
section of our Annual Report 2020
 
for more information.
 
3 Based on the Swiss
 
systemically relevant bank
 
framework as
 
of 1 January 2020. Refer
 
to the “Capital, liquidity and funding,
 
and balance sheet”
 
section
of this report for more information.
 
4 Consists of invested assets
 
for Global Wealth Management,
 
Asset Management and
 
Personal & Corporate
 
Banking. Refer to “Note 31 Invested
 
assets and net new money”
 
in
the “Consolidated financial statements”
 
section of this report for
 
more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
information
 
363
 
 
Comparison between
 
UBS Group AG consolidated
 
and UBS AG consolidated
As of or for the year ended 31.12.22
As of or for the year ended 31.12.21
USD m, except where indicated
UBS Group AG
consolidated
UBS AG
consolidated
Difference
(absolute)
UBS Group AG
consolidated
UBS AG
consolidated
Difference
(absolute)
Income statement
Total revenues
 
34,563
 
34,915
 
(353)
 
35,393
 
35,828
 
(434)
Credit loss expense / (release)
 
29
 
29
 
0
 
(148)
 
(148)
 
0
Operating expenses
 
24,930
 
25,927
 
(997)
 
26,058
 
27,012
 
(955)
Operating profit / (loss) before tax
 
 
9,604
 
8,960
 
644
 
9,484
 
8,964
 
520
of which: Global Wealth Management
 
4,977
 
4,894
 
83
 
4,783
 
4,706
 
77
of which: Personal & Corporate Banking
 
1,812
 
1,790
 
21
 
1,731
 
1,726
 
4
of which: Asset Management
 
1,397
 
1,396
 
1
 
1,030
 
1,023
 
7
of which: Investment Bank
 
1,897
 
1,839
 
58
 
2,630
 
2,592
 
38
of which: Group Functions
 
(480)
 
(960)
 
480
 
(689)
 
(1,083)
 
394
Net profit / (loss)
 
 
7,661
 
7,116
 
546
 
7,486
 
7,061
 
425
of which: net profit / (loss) attributable to shareholders
 
7,630
 
7,084
 
546
 
7,457
 
7,032
 
425
of which: net profit / (loss) attributable to non
 
-controlling interests
 
32
 
32
 
0
 
29
 
29
 
0
Statement of comprehensive
 
income
Other comprehensive income
 
(4,494)
 
(4,396)
 
(98)
 
(2,367)
 
(2,235)
 
(131)
of which: attributable to shareholders
 
(4,481)
 
(4,383)
 
(98)
 
(2,351)
 
(2,220)
 
(131)
of which: attributable to non-controlling
 
interests
 
(14)
 
(14)
 
0
 
(16)
 
(16)
 
0
Total comprehensive income
 
3,167
 
2,719
 
448
 
5,119
 
4,826
 
293
of which: attributable to shareholders
 
3,149
 
2,701
 
448
 
5,106
 
4,813
 
293
of which: attributable to non-controlling
 
interests
 
18
 
18
 
0
 
13
 
13
 
0
Balance sheet
Total assets
 
1,104,364
 
1,105,436
 
(1,072)
 
1,117,182
 
1,116,145
 
1,037
Total liabilities
 
1,047,146
 
1,048,496
 
(1,349)
 
1,056,180
 
1,057,702
 
(1,522)
Total equity
 
 
57,218
 
56,940
 
278
 
61,002
 
58,442
 
2,559
of which: equity attributable to shareholders
 
56,876
 
56,598
 
278
 
60,662
 
58,102
 
2,559
of which: equity attributable to non
 
-controlling interests
 
342
 
342
 
0
 
340
 
340
 
0
Capital information
Common equity tier 1 capital
 
45,457
 
42,929
 
2,528
 
45,281
 
41,594
 
3,687
Going concern capital
 
58,321
 
54,770
 
3,551
 
60,488
 
55,434
 
5,054
Risk-weighted assets
 
319,585
 
317,823
 
1,762
 
302,209
 
299,005
 
3,204
Common equity tier 1 capital ratio (%)
 
14.2
 
13.5
 
0.7
 
15.0
 
13.9
 
1.1
Going concern capital ratio (%)
 
18.2
 
17.2
 
1.0
 
20.0
 
18.5
 
1.5
Total loss-absorbing capacity ratio (%)
 
33.0
 
32.0
 
0.9
 
34.7
 
33.3
 
1.3
Leverage ratio denominator
 
1,028,461
 
1,029,561
 
(1,100)
 
1,068,862
 
1,067,679
 
1,183
Common equity tier 1 leverage ratio
 
(%)
 
4.42
 
4.17
 
0.25
 
4.24
 
3.90
 
0.34
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
information
 
364
 
Management’s
 
report on internal
 
control over financial
 
reporting
Management’s responsibility for internal
 
control over financial reporting
The Board
 
of Directors and
 
management of UBS
 
AG are responsible
 
for establishing and
 
maintaining adequate internal
control
 
over
 
financial
 
reporting.
 
UBS
 
AG’s
 
internal
 
control
 
over
 
financial
 
reporting
 
is
 
designed
 
to
 
provide
 
reasonable
assurance
 
regarding
 
the
 
preparation
 
and
 
fair
 
presentation
 
of
 
published
 
financial
 
statements
 
in
 
accordance
 
with
International Financial Reporting Standards
 
(IFRS) as issued by the International Accounting
 
Standards Board (IASB).
UBS AG’s internal control over financial reporting
 
includes those policies and procedures
 
that:
–
 
pertain
 
to
 
the
 
maintenance
 
of
 
records
 
that,
 
in
 
reasonable
 
detail,
 
accurately
 
and
 
fairly
 
reflect
 
transactions
 
and
dispositions of assets;
–
 
provide reasonable
 
assurance that transactions
 
are recorded
 
as necessary to
 
permit preparation
 
and fair presentation
of financial statements,
 
and that
 
receipts and
 
expenditures of
 
the company are
 
being made
 
only in
 
accordance with
authorizations of UBS AG management;
 
and
–
 
provide reasonable assurance
 
regarding prevention or timely detection
 
of unauthorized acquisition, use
 
or disposition
of the company’s assets that could
 
have a material effect on the financial statements.
Because
 
of
 
its inherent
 
limitations, internal
 
control
 
over
 
financial reporting
 
may not
 
prevent
 
or
 
detect misstatements.
Also,
 
projections
 
of any
 
evaluation of
 
effectiveness to
 
future periods
 
are subject
 
to
 
the risk
 
that controls
 
may become
inadequate
 
because
 
of
 
changes
 
in
 
conditions,
 
or
 
that
 
the
 
degree
 
of
 
compliance
 
with
 
the
 
policies
 
or
 
procedures
 
may
deteriorate.
Management’s assessment of internal control
 
over financial reporting as
 
of 31 December
2022
 
UBS
 
AG
 
management
 
has
 
assessed
 
the
 
effectiveness
 
of
 
UBS
 
AG’s
 
internal
 
control
 
over
 
financial
 
reporting
 
as
 
of
31 December
 
2022
 
based
 
on
 
the
 
criteria set
 
forth
 
by
 
the
 
Committee
 
of
 
Sponsoring
 
Organizations
 
of
 
the
 
Treadway
Commission
 
(COSO)
 
in
 
Internal
 
Control
–
 
Integrated
 
Framework
 
(2013
 
Framework).
 
Based
 
on
 
this
 
assessment,
management believes that, as of 31
 
December 2022,
 
UBS AG’s internal control over financial re
 
porting was effective.
The effectiveness of UBS AG’s internal control
 
over financial reporting as
 
of 31 December 2022 has
 
been audited by Ernst
& Young
 
Ltd, UBS
 
AG’s independent
 
registered public accounting
 
firm, as stated
 
in their
 
which
 
expresses
 
an
 
unqualified
opinion on the effectiveness of UBS
 
AG’s internal control over financial
 
reporting as of 31
 
December 2022.
 
 
 
dev_UBS_AR_2022p393i0.gif
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
information
 
365
 
 
 
dev_UBS_AR_2022p394i0.gif
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
information
 
366
 
 
 
dev_UBS_AR_2022p395i0.gif
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
information
 
367
 
 
dev_UBS_AR_2022p396i0.gif
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
information
 
368
 
 
dev_UBS_AR_2022p397i0.gif
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
information
 
369
 
 
dev_UBS_AR_2022p398i0.gif
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
information
 
370
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
371
 
UBS AG consolidated financial statements
Primary financial statements and share information
Audited |
Income statement
For the year ended
USD m
Note
31.12.22
31.12.21
31.12.20
Interest income from financial instruments measured
 
at amortized cost and fair value through
other comprehensive income
3
11,803
8,534
8,816
Interest expense from financial instruments measured
 
at amortized cost
3
(6,696)
(3,366)
(4,333)
Net interest income from financial instruments measured
 
at fair value through profit or
 
loss and other
3
1,410
1,437
1,305
Net interest income
3
6,517
6,605
5,788
Other net income from financial instruments measured
 
at fair value through profit or
 
loss
3
7,493
5,844
6,930
Fee and commission income
4
20,846
24,422
20,982
Fee and commission expense
4
(1,823)
(1,985)
(1,775)
Net fee and commission income
4
19,023
22,438
19,207
Other income
5
1,882
941
1,549
Total revenues
34,915
35,828
33,474
Credit loss expense / (release)
19
29
(148)
695
Personnel expenses
6
15,080
15,661
14,686
General and administrative expenses
7
9,001
9,476
8,486
Depreciation, amortization and impairment of non
 
-financial assets
11,12
1,845
1,875
1,909
Operating expenses
25,927
27,012
25,081
Operating profit / (loss) before
 
tax
8,960
8,964
7,699
Tax expense / (benefit)
 
8
1,844
1,903
1,488
Net profit / (loss)
7,116
7,061
6,211
Net profit / (loss) attributable to non-controlling
 
interests
32
29
15
Net profit / (loss) attributable to shareholders
7,084
7,032
6,196
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
372
 
 
Statement of comprehensive
 
income
For the year ended
USD m
Note
31.12.22
31.12.21
31.12.20
Comprehensive income attributable
 
to shareholders
Net profit / (loss)
7,084
7,032
6,196
Other comprehensive income that
 
may be reclassified to the income statement
Foreign currency translation
Foreign currency translation movements related
 
to net assets of foreign operations,
 
before tax
(869)
(1,046)
2,040
Effective portion of changes in fair value of hedging
 
instruments designated as net investment hedges,
 
before tax
319
492
(938)
Foreign currency translation differences on foreign
 
operations reclassified to the
 
income statement
32
(1)
(7)
Effective portion of changes in fair value of hedging
 
instruments designated as net investment hedges reclassified
 
to
the income statement
(4)
10
2
Income tax relating to foreign currency
 
translations, including the effect of net investment
 
hedges
4
35
(67)
Subtotal foreign currency translation, net
 
of tax
(519)
(510)
1,030
Financial assets measured at
 
fair value through other comprehensive
 
income
Net unrealized gains / (losses), before tax
(440)
(203)
223
Net realized (gains) / losses reclassified to the income
 
statement from equity
1
(9)
(40)
Reclassification of financial assets to Other financial assets
 
measured at amortized cost
1
449
Income tax relating to net unrealized gains / (losses)
(3)
55
(48)
Subtotal financial assets measured at fair value through
 
other comprehensive income, net of tax
6
(157)
136
Cash flow hedges of interest rate
 
risk
25
Effective portion of changes in fair value of derivative
 
instruments designated as cash flow hedges,
 
before tax
(5,758)
(992)
2,012
Net (gains) / losses reclassified to the income statement
 
from equity
(159)
(1,073)
(770)
Income tax relating to cash flow hedges
1,124
390
(231)
Subtotal cash flow hedges, net of tax
(4,793)
2
(1,675)
1,011
Cost of hedging
25
Cost of hedging, before tax
45
(32)
(13)
Income tax relating to cost of hedging
 
0
6
0
Subtotal cost of hedging, net of tax
45
(26)
(13)
Total other comprehensive
 
income that may be reclassified to
 
the income statement, net of tax
(5,260)
(2,368)
2,165
Other comprehensive income that will not
 
be reclassified to the income statement
Defined benefit plans
26
Gains / (losses) on defined benefit plans, before
 
tax
40
133
(222)
Income tax relating to defined benefit plans
41
(31)
88
Subtotal defined benefit plans, net of tax
81
102
(134)
Own credit on financial liabilities designated
 
at fair value
20
Gains / (losses) from own credit on financial liabilities designated
 
at fair value, before tax
867
46
(293)
Income tax relating to own credit on
 
financial liabilities designated at fair value
(71)
0
0
Subtotal own credit on financial liabilities designated
 
at fair value, net of tax
796
46
(293)
Total other comprehensive
 
income that will not be reclassified to the
 
income statement, net of tax
877
148
(427)
Total other comprehensive
 
income
(4,383)
(2,220)
1,738
Total comprehensive
 
income attributable to shareholders
2,701
4,813
7,934
Comprehensive income attributable
 
to non-controlling interests
Net profit / (loss)
32
29
15
Total other comprehensive
 
income that will not be reclassified to the
 
income statement, net of tax
(14)
(16)
21
Total comprehensive
 
income attributable to non-controlling interests
18
13
36
Total
 
comprehensive income
 
Net profit / (loss)
7,116
7,061
6,211
Other comprehensive income
 
(4,396)
(2,235)
1,759
of which: other comprehensive income that may be reclassified to
 
the income statement
(5,260)
(2,368)
2,165
of which: other comprehensive income that will not be
 
reclassified to the income statement
864
132
(406)
Total comprehensive
 
income
 
2,719
4,826
7,970
1 Effective 1 April 2022, a
 
portfolio of assets
 
previously classified as
 
Financial assets measured
 
at fair value through
 
other
 
comprehensive income
 
was reclassified
 
to Other financial
 
assets measured at
 
amortized cost.
Refer to Note 1b for more information.
 
2 Mainly reflects net unrealized
 
losses on US dollar
 
hedging derivatives resulting
 
from significant increases in
 
the relevant US
 
dollar long-term interest rates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
373
 
 
 
Balance sheet
USD m
Note
31.12.22
31.12.21
Assets
Cash and balances at central banks
169,445
192,817
Loans and advances to banks
9
14,671
15,360
Receivables from securities financing transactions
 
measured at amortized cost
9, 21
67,814
75,012
Cash collateral receivables on derivative
 
instruments
9, 21
35,033
30,514
Loans and advances to customers
9
390,027
398,693
Other financial assets measured at amortized cost
9, 13a
53,389
26,236
Total financial assets
 
measured at amortized cost
730,379
738,632
Financial assets at fair value held for trading
20
108,034
131,033
of which: assets pledged as collateral that may be
 
sold or repledged by counterparties
36,742
43,397
Derivative financial instruments
10, 20, 21
150,109
118,145
Brokerage receivables
20
17,576
21,839
Financial assets at fair value not held for trading
20
59,408
59,642
Total financial assets
 
measured at fair value through profit or
 
loss
335,127
330,659
Financial assets measured at
 
fair value through other comprehensive
 
income
19, 20
2,239
8,844
Investments in associates
28b
1,101
1,243
Property, equipment
 
and software
11
11,316
11,712
Goodwill and intangible assets
12
6,267
6,378
Deferred tax assets
8
9,354
8,839
Other non-financial assets
13b
9,652
9,836
Total assets
1,105,436
1,116,145
Liabilities
Amounts due to banks
 
11,596
13,101
Payables from securities financing
 
transactions measured at amortized cost
21
4,202
5,533
Cash collateral payables on derivative instruments
21
36,436
31,801
Customer deposits
14
527,171
544,834
Funding from UBS Group AG measured at amortized
 
cost
14b
56,147
57,295
Debt issued measured at amortized cost
16
59,499
82,432
Other financial liabilities measured at amortized cost
18a
10,391
9,765
Total financial liabilities measured
 
at amortized cost
705,442
744,762
Financial liabilities at fair value held for trading
20
29,515
31,688
Derivative financial instruments
10, 20, 21
154,906
121,309
Brokerage payables designated at
 
fair value
20
45,085
44,045
Debt issued designated at fair value
15, 20
71,842
71,460
Other financial liabilities designated at fair value
18b, 20
32,033
32,414
Total financial liabilities measured
 
at fair value through profit or
 
loss
333,382
300,916
Provisions
17a
3,183
3,452
Other non-financial liabilities
18c
6,489
8,572
Total liabilities
1,048,496
1,057,702
Equity
Share capital
338
338
Share premium
24,648
24,653
Retained earnings
31,746
27,912
Other comprehensive income recognized
 
directly in equity, net of tax
(133)
5,200
Equity attributable to shareholders
56,598
58,102
Equity attributable to non-controlling
 
interests
342
340
Total equity
56,940
58,442
Total liabilities and
 
equity
1,105,436
1,116,145
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
374
 
 
Statement of changes
 
in equity
USD m
Share
capital
Share
 
premium
Retained
earnings
Balance as of 31 December 2019
338
24,659
23,419
Premium on shares issued and warrants exercised
(4)
2
Tax (expense) / benefit
1
Dividends
(3,848)
Translation effects recognized
 
directly in retained earnings
(49)
Share of changes in retained earnings of associates and joint
 
ventures
(40)
New consolidations / (deconsolidations) and other
 
increases / (decreases)
3
(76)
Total comprehensive income for the year
5,769
of which: net profit / (loss)
6,196
of which: OCI, net of tax
(427)
Balance as of 31 December 2020
338
24,580
25,251
Premium on shares issued and warrants exercised
(7)
2
Tax (expense) / benefit
(102)
Dividends
(4,539)
Translation effects recognized
 
directly in retained earnings
18
Share of changes in retained earnings of associates and joint ventures
1
New consolidations / (deconsolidations) and other
 
increases / (decreases)
4
182
Total comprehensive income for the year
7,180
of which: net profit / (loss)
7,032
of which: OCI, net of tax
148
Balance as of 31 December 2021
338
24,653
27,912
Premium on shares issued and warrants exercised
(14)
2
Tax (expense) / benefit
5
Dividends
(4,200)
Translation effects recognized
 
directly in retained earnings
69
Share of changes in retained earnings of associates and joint ventures
0
New consolidations / (deconsolidations) and other
 
increases / (decreases)
4
3
Total comprehensive income for the year
7,961
of which: net profit / (loss)
7,084
of which: OCI, net of tax
877
Balance as of 31 December 2022
338
24,648
31,746
1 Excludes other comprehensive
 
income related to defined
 
benefit plans and own credit, which
 
is recorded directly
 
in Retained earnings.
 
2 Includes decreases
 
related to recharges
 
by UBS Group AG for share
 
-based
compensation awards granted to employees
 
of UBS AG or its subsidiaries.
 
3 Mainly relates to the establishment
 
of a banking partnership with Banco
 
do Brasil. In 2020, UBS AG
 
issued a
49.99
% stake in UBS Brasil
Serviços in exchange for
 
exclusive access to
 
Banco do Brasil’s
 
corporate clients.
 
Upon completion of the
 
transaction in 2020,
 
equity attributable
 
to non-controlling interests
 
increased by USD
115
m, with no material
effect on equity attributable to
 
shareholders.
 
4 Includes the effects
 
related to the launch of
 
UBS AG’s new operational
 
partnership entity with
 
Sumitomo Mitsui Trust
 
Holdings, Inc in
 
2021.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
375
 
 
Other comprehensive
 
income recognized
 
directly in equity,
 
net of tax
1
of which:
 
foreign currency
 
translation
of which:
 
financial assets at
fair value through OCI
of which:
 
cash flow
 
hedges
Total equity
 
attributable to
 
shareholders
Non-controlling
 
interests
Total equity
5,306
4,032
14
1,260
53,722
174
53,896
(4)
(4)
1
1
(3,848)
(6)
(3,854)
49
0
49
0
0
(40)
(40)
65
65
(12)
115
103
2,165
1,030
136
1,011
7,934
36
7,970
6,196
15
6,211
2,165
1,030
136
1,011
1,738
21
1,759
7,585
5,126
151
2,321
57,754
319
58,073
(7)
(7)
(102)
(102)
(4,539)
(4)
(4,542)
(18)
0
(18)
0
0
1
1
182
12
193
(2,368)
(510)
(157)
(1,675)
4,813
13
4,826
7,032
29
7,061
(2,368)
(510)
(157)
(1,675)
(2,220)
(16)
(2,235)
5,200
4,617
(7)
628
58,102
340
58,442
(14)
(14)
5
5
(4,200)
(9)
(4,209)
(69)
0
(69)
0
0
0
0
(3)
(3)
4
(7)
(3)
(5,260)
(519)
6
(4,793)
2,701
18
2,719
7,084
32
7,116
(5,260)
(519)
6
(4,793)
(4,383)
(14)
(4,396)
(133)
4,098
(4)
(4,234)
56,598
342
56,940
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
376
 
 
Share information and earnings per
 
share
Ordinary share capital
As of 31 December 2022,
 
UBS AG had
3,858,408,466
 
issued shares (31 December 2021:
3,858,408,466
 
shares) with a
nominal value
 
of
 
CHF
0.10
 
each, leading
 
to a
 
share
 
capital of
 
CHF
385,840,846.60
. The
 
shares
 
were
 
entirely held
 
by
UBS Group AG.
Following revisions to Swiss Corporate
 
Law that are effective
 
from 1 January 2023,
 
the Board of Directors (the
 
BoD) will
propose
 
at
 
the
 
2023
 
Annual
 
General
 
Meeting
 
(the
 
AGM)
 
that
 
the
 
shareholders
 
approve
 
the
 
conversion
 
of
 
the
 
share
capital currency
 
of UBS
 
AG from
 
the Swiss
 
franc to
 
the US
 
dollar.
 
This would
 
align the
 
share
 
capital currency
 
with the
financial statement
 
presentation
 
currency of
 
UBS
 
AG.
 
If the
 
change
 
is
 
approved,
 
the share
 
capital of
 
UBS
 
AG
 
will be
slightly reduced
 
to a nominal
 
value per share
 
of USD
0.10
 
(from CHF
0.10
 
currently), with the
 
amount of the
 
reduction
allocated to the capital contribution reserve (presented
 
as
Share premium
 
in the consolidated financial statements). Total
equity reported for UBS AG consolidated
 
will not change.
Conditional share capital
As of 31 December 2022,
 
the following conditional share capital was available
 
to UBS AG’s BoD:
 
–
 
A maximum of
 
CHF
38,000,000
 
represented by
 
up to
380,000,000
 
fully paid registered
 
shares with
 
a nominal value
of CHF
0.10
 
each, to
 
be issued
 
through
 
the voluntary
 
or mandatory
 
exercise of
 
conversion
 
rights and
 
/ or
 
warrants
granted in
 
connection with
 
the issuance
 
of bonds or
 
similar financial instruments
 
on national
 
or international
 
capital
markets. This
 
conditional
 
capital
 
allowance
 
was
 
approved
 
at
 
the AGM of
 
UBS AG
 
on 14
 
April 2010.
 
The BoD
 
has
not made use of such
 
allowance.
Authorized share capital
UBS AG had no authorized
 
capital available to issue on 31
 
December 2022.
Earnings per share
In 2015, UBS
 
AG shares were
 
delisted from
 
the SIX Swiss
 
Exchange and the
 
New York Stock
 
Exchange. As of
 
31 December
2022,
100
% of UBS AG’s
 
issued shares were held by UBS Group AG
 
and therefore were not publicly traded.
 
Accordingly,
earnings per share information
 
is not provided for UBS AG.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
377
 
 
Statement of cash flows
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Cash flow from / (used in)
 
operating activities
Net profit / (loss)
7,116
7,061
6,211
Non-cash items included in net
 
profit and other adjustments:
Depreciation, amortization and impairment of non
 
-financial assets
1,845
1,875
1,909
Credit loss expense / (release)
29
(148)
695
Share of net profits of associates and joint ventures and
 
impairment related to associates
(32)
(105)
(84)
Deferred tax expense / (benefit)
491
432
355
Net loss / (gain) from investing activities
(1,515)
(230)
(698)
Net loss / (gain) from financing activities
(16,587)
100
3,246
Other net adjustments
5,792
3,790
(8,061)
Net change in operating
 
assets and liabilities:
Loans and advances to banks and amounts due
 
to banks
(1,088)
2,148
3,586
Securities financing transactions measured at amortized
 
cost
4,444
(2,316)
9,588
Cash collateral on derivative instruments
73
(3,311)
(3,486)
Loans and advances to customers and customer
 
deposits
(7,756)
2,406
18,934
Financial assets and liabilities at fair value held
 
for trading and derivative financial
 
instruments
8,173
(10,635)
11,326
Brokerage receivables and payables
6,019
8,115
(5,199)
Financial assets at fair value not held for trading
 
and other financial assets and liabilities
5,557
19,793
392
Provisions and other non-financial assets and liabilities
(437)
2,617
(1,213)
Income taxes paid, net of refunds
(1,495)
(1,026)
(919)
Net cash flow from / (used in) operating
 
activities
10,630
30,563
36,581
Cash flow from / (used in)
 
investing activities
Purchase of subsidiaries, associates and intangible assets
(3)
(1)
(46)
Disposal of subsidiaries, associates and intangible
 
assets
1,729
1
593
674
Purchase of property,
 
equipment and software
(1,478)
(1,581)
(1,573)
Disposal of property, equipment
 
and software
161
295
364
Purchase of financial assets measured at fair value through
 
other comprehensive income
(4,783)
(5,802)
(6,290)
Disposal and redemption of financial assets measured at
 
fair value through other comprehensive
 
income
4,084
5,052
4,530
Net (purchase) / redemption of debt securities measured at amortized
 
cost
(11,993)
(415)
(4,166)
Net cash flow from / (used in)
 
investing activities
(12,283)
(1,860)
(6,506)
Table
 
continues below.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
378
 
 
Statement of cash flows
 
(continued)
Table
 
continued from above.
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Cash flow from / (used in)
 
financing activities
Net short-term debt issued / (repaid)
(12,249)
(3,093)
23,845
Distributions paid on UBS AG shares
(4,200)
(4,539)
(3,848)
Issuance of debt designated at fair value and long
 
-term debt measured at amortized cost
2
79,457
98,619
80,153
Repayment of debt designated at fair value and
 
long-term debt measured at amortized cost
2
(67,670)
(79,799)
(87,099)
Net cash flows from other financing activities
(595)
(261)
(553)
Net cash flow from / (used in)
 
financing activities
(5,257)
10,927
12,498
Total
 
cash flow
Cash and cash equivalents at the beginning
 
of the year
207,755
173,430
119,804
Net cash flow from / (used in) operating, investing
 
and financing activities
(6,911)
39,630
42,573
Effects of exchange rate differences on cash and
 
cash equivalents
(5,645)
(5,306)
11,053
Cash and cash equivalents at the end
 
of the year
3
195,200
207,755
173,430
of which: cash and balances at central banks
4
169,363
192,706
158,088
of which: loans and advances to banks
13,329
13,822
13,928
of which: money market paper
5
12,508
1,227
1,415
Additional information
Net cash flow from / (used in) operating activities
 
includes:
Interest received in cash
15,730
11,170
11,929
Interest paid in cash
8,315
4,802
6,414
Dividends on equity investments, investment
 
funds and associates received in cash
6
1,907
2,531
1,901
1 Includes cash
 
proceeds from
 
the sales
 
of: UBS
 
AG’s shareholding
 
in Mitsubishi
 
Corp.-UBS
 
Realty Inc.;
 
UBS AG’s
 
wholly owned
 
subsidiary
 
UBS Swiss
 
Financial Advisers
 
AG; UBS
 
AG’s
 
US alternative
 
investments
administration business; and
 
UBS AG’s domestic weal
 
th management business in Spain.
 
Refer to Note 29 for more information.
 
Also includes dividends received
 
from associates.
 
2 Includes funding from UBS
 
Group
AG measured at
 
amortized cost
 
(recognized in
 
Funding from
 
UBS Group AG
 
measured at amortized
 
cost in the
 
balance sheet)
 
and measured
 
at fair
 
value (recognized
 
in Other financial
 
liabilities designated
 
at fair
value in the balance
 
sheet).
 
3 USD
4,253
m, USD
3,408
m and USD
3,828
m of cash and cash
 
equivalents (mainly
 
reflected in
 
Loans and advances
 
to banks) were
 
restricted as of
 
31 December 2022, 31
 
December
2021 and 31 December
 
2020, respectively.
 
Refer to Note
 
22 for more
 
information.
 
4 Includes
 
only balances with
 
an original
 
maturity of
 
three months
 
or less.
 
5 Money
 
market paper
 
is included in
 
the balance
sheet under
 
Financial
 
assets at
 
fair value
 
held for
 
trading (31
 
December
 
2022: USD
2
m; 31
 
December
 
2021: USD
20
m; 31
 
December
 
2020:
 
USD
117
m), Financial
 
assets
 
measured at
 
fair value
 
through
 
other
comprehensive income (31 December
 
2022: USD
0
m; 31 December 2021: USD
0
m; 31 December 2020: USD
178
m), Financial assets at fair value not held
 
for trading (31 December 2022:
 
USD
6,048
m; 31 December
2021: USD
1,066
m; 31 December 2020:
 
USD
536
m), and Other financial assets
 
measured at amortized cost (31
 
December 2022:
 
USD
6,459
m; 31 December 2021: USD
141
m; 31 December 2020: USD
584
m).
 
6
Includes dividends received from associates
 
reported within Net cash
 
flow from / (used in)
 
investing activities.
 
Changes in liabilities
 
arising from financing
 
activities
USD m
Debt issued
measured at
amortized cost
of which:
short-term
1
of which:
long-term
2
Debt issued
designated at fair
value
Over-the-
counter debt
instruments
3
Funding from
UBS Group
AG
4
Total
Balance as of 1 January 2021
85,351
46,666
38,685
59,868
2,060
55,354
202,633
Cash flows
(550)
(3,093)
2,543
9,075
126
7,076
15,727
Non-cash changes
(2,369)
(475)
(1,894)
2,516
(58)
(2,795)
(2,705)
of which: foreign currency translation
(1,841)
(475)
(1,366)
(1,611)
(65)
(1,340)
(4,857)
of which: fair value changes
4,127
7
(30)
4,104
of which: hedge accounting
 
and other effects
(528)
(528)
(1,425)
(1,953)
Balance as of 31 December 2021
82,432
43,098
39,334
71,460
2,128
59,635
215,655
Cash flows
(19,390)
(12,249)
(7,141)
13,277
(251)
5,903
(461)
Non-cash changes
(3,543)
(1,173)
(2,370)
(12,895)
(193)
(7,595)
(24,225)
of which: foreign currency translation
(2,233)
(1,173)
(1,061)
(1,405)
(113)
(1,285)
(5,036)
of which: fair value changes
(11,490)
(80)
(1,060)
(12,629)
of which: hedge accounting
 
and other effects
(1,310)
(1,310)
(5,250)
(6,560)
Balance as of 31 December 2022
59,499
29,676
29,823
71,842
1,684
57,943
190,968
1 Debt with an original contractual maturity
 
of less than one year.
 
2 Debt with an original maturity
 
greater than or equal to one year.
 
The classification of
 
debt issued into short-term and long-term does
 
not consider
any early redemption
 
features.
 
3 Included
 
in balance
 
sheet line
 
Other financial
 
liabilities designated
 
at fair
 
value.
 
4 Includes
 
funding from
 
UBS Group AG
 
measured at
 
amortized cost
 
(refer to
 
Note 14b)
 
and
measured at fair value (refer
 
to Note 18b).
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
379
 
Notes to the UBS AG consolidated financial
 
statements
Note 1
 
Summary of material accounting policies
The following table
 
provides an overview of
 
information included
 
in this Note.
 
 
380
a)
 
 
380
380
1)
 
 
380
2)
 
 
380
a.
 
 
381
b.
 
 
385
c.
 
 
385
d.
 
 
385
e.
 
 
385
f.
 
 
386
g.
 
 
389
h.
 
 
389
i.
 
 
390
j.
 
 
390
3)
 
 
391
4)
 
 
392
5)
 
 
392
6)
 
 
393
7)
 
 
393
8)
 
 
393
9)
 
 
394
10)
 
 
394
11)
 
 
395
b)
 
 
395
c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
380
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
 
a) Material accounting policies
This Note
 
describes the material
 
accounting
 
policies applied
 
in the preparation
 
of the consolidated
 
financial statements
(the Financial Statements) of UBS AG and its subsidiaries (UBS AG).
 
On 23 February 2023, the Financial Statements were
authorized for issue by the Board
 
of Directors (the BoD).
 
Basis of accounting
The Financial
 
Statements have
 
been
 
prepared
 
in accordance
 
with International
 
Financial Reporting
 
Standards
 
(IFRS), as
issued by the International Accounting Standards
 
Board (the IASB),
 
and are presented in
 
US dollars (USD).
Disclosures marked as audited in
 
the “Risk, capital, liquidity and funding,
 
and balance sheet” section of this report
 
form
an integral part of the Financial Statements. These disclosures relate to requirements under
 
IFRS 7,
Financial Instruments:
Disclosures,
 
and IAS 1,
Presentation of Financial Statements,
and are not repeated
 
in this section.
 
The
 
accounting
 
policies
 
described
 
in
 
this
 
Note
 
have
 
been
 
applied
 
consistently
 
in
 
all
 
years presented
 
unless
 
otherwise
stated in Note 1b.
 
 
Critical accounting estimates and judgments
Preparation of these
 
Financial
 
Statements under
 
IFRS requires
 
management to
 
apply judgment
 
and make
 
estimates
 
and assumptions that
 
affect reported
 
amounts
of assets, liabilities, income and expenses and disclosure,
 
of contingent assets and liabilities, and may involve significant
 
uncertainty at the time they are made.
Such estimates and assumptions are based on the
 
best available information. UBS AG regularly reassesses such estimates and assumptions, which encompass
historical experience,
 
expectations of the
 
future and other pertinent
 
factors, to
 
determine their continuing
 
relevance based on current
 
conditions,
 
updating them
as necessary.
 
Changes in those
 
estimates and assumptions
 
may have
 
a significant effect
 
on the
 
Financial Statements. Furthermore, actual results may
 
differ
significantly
 
from UBS AG’s estimates,
 
which could result
 
in significant
 
losses to UBS AG,
 
beyond what was
 
anticipated or provided
 
for.
 
The
 
following
 
areas
 
contain
 
estimation
 
uncertainty
 
or require
 
critical
 
judgment and
 
have
 
a significant
 
effect
 
on amounts
 
recognized
 
in
 
the Financial
Statements:
 
–
 
expected credit loss measurement
 
(refer to item 2g in this Note and
 
to Note 19);
–
 
fair value measurement (refer
 
to item 2f in this Note and to
 
Note 20);
–
 
income taxes (refer to item
 
6 in this Note and to Note 8);
–
 
provisions and contingent liabilities
 
(refer to item 9 in this Note and to Note
 
17);
–
 
post-employment benefit plans
 
(refer to item 5 in this Note and to Note 2
 
6);
–
 
goodwill (refer
 
to item 8 in this Note and to Note 12); and
–
 
consolidation of structured
 
entities (refer to item 1 in this
 
Note and to Note 28).
 
1) Consolidation
The
 
Financial
 
Statements
 
include
 
the
 
financial
 
statements
 
of
 
the
 
UBS
 
AG
 
and
 
its
 
subsidiaries,
 
presented
 
as
 
a
 
single
economic entity;
 
intercompany transactions
 
and balances
 
have been eliminated.
 
UBS AG
 
consolidates all entities
 
that it
controls,
 
including
 
structured
 
entities (SEs),
 
which
 
is the
 
case when
 
it has
 
:
 
(i) power
 
over
 
the relevant
 
activities
 
of the
entity;
 
(ii) exposure to
 
an entity‘s variable returns;
 
and (iii) the ability to use its power
 
to affect its own returns.
Consideration is
 
given to all
 
facts and circumstances to
 
determine whether UBS
 
AG has power
 
over another entity,
 
i.e.,
the current ability to direct the relevant activities
 
of an entity when decisions
 
about those activities need to be
 
made.
 
Subsidiaries,
 
including
 
SEs,
 
are consolidated
 
from
 
the date
 
when
 
control
 
is g
 
ained
 
and
 
deconsolidated
 
from
 
the
 
date
when control ceases. Control,
 
or the lack thereof, is reassessed if facts and circumstances
 
indicate that there is a change
to one or more elements required
 
to establish that control is present.
Business
 
combinations
 
are accounted
 
for using
 
the acquisition
 
method.
 
The amount
 
of any
 
non-controlling
 
interest is
measured at the non-controlling
 
interest’s proportionate share
 
of the acquiree’s identifiable net assets.
 
›
 
Refer to Note 28
 
for more information
 
Critical accounting estimates and judgments
Each individual
 
entity is assessed
 
for consolidation in line
 
with the aforementioned
 
consolidation principles. The
 
assessment of
 
control can be
 
complex and
requires
 
the use
 
of significant
 
judgment,
 
in particular
 
in determining
 
whether UBS
 
AG has power
 
over the
 
entity.
 
As the
 
nature and
 
extent of
 
UBS AG’s
involvement is unique
 
for each entity,
 
there is no
 
uniform consolidation outcome
 
by entity.
 
Certain entities within a class
 
may be consolidated
 
while others
may not.
 
When carrying out
 
the consolidation assessment,
 
judgment is exercised
 
considering all the relevant
 
facts and circumstances,
 
including
 
the nature
and activities of the investee, as well as
 
the substance of voting and similar rights.
 
›
 
Refer to Note 28
 
for more information
2)
 
Financial instruments
a. Recognition
UBS AG
 
recognizes financial
 
instruments when
 
it becomes
 
a party
 
to contractual
 
provisions
 
of an
 
instrument. UBS
 
AG
applies settlement date accounting
 
to all standard purchases
 
and sales of non-derivative financial instruments.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
381
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
In
 
transactions
 
where
 
UBS
 
AG
 
acts
 
as
 
a
 
transferee,
 
to
 
the
 
extent
 
the
 
financial
 
asset
 
transfer
 
does
 
not
 
qualify
 
for
derecognition by the transferor,
 
UBS AG does not recognize
 
the transferred instrument as
 
its asset.
UBS
 
AG
 
also
 
acts in
 
a
 
fiduciary
 
capacity,
 
which
 
results
 
in
 
it
 
holding
 
or
 
placing
 
assets
 
on
 
behalf
 
of
 
individuals,
 
trusts,
retirement benefit
 
plans
 
and other
 
institutions. Unless
 
these items
 
meet the
 
definition
 
of an
 
asset and
 
the recognition
criteria are
 
satisfied,
 
they are
 
not recognized
 
on
 
UBS AG’s
 
balance sheet
 
and
 
the related
 
income is
 
excluded
 
from the
Financial Statements.
 
Client cash balances associated with derivatives
 
clearing and execution services are not
 
recognized on the balance
 
sheet
if, through
 
contractual agreement, regulation
 
or practice,
 
UBS AG
 
neither obtains
 
benefits from nor
 
controls such
 
cash
balances.
b. Classification, measurement and
 
presentation
Financial assets
 
Where the contractual
 
terms of a
 
debt instrument
 
result in cash
 
flows that are
 
solely payments of principal
 
and interest
(SPPI) on
 
the principal amount
 
outstanding,
 
the debt
 
instrument is
 
classified as measured
 
at amortized
 
cost if it
 
is held
within a business model that has an objective of holding financial assets to collect contractual cash
 
flows, or at fair value
through other
 
comprehensive income
 
(FVOCI) if it
 
is held
 
within a
 
business model
 
with the objective being
 
achieved by
both collecting contractual cash flows
 
and selling financial assets.
 
All other
 
financial assets
 
are measured
 
at fair
 
value
 
through
 
profit or
 
loss (
 
FVTPL), including
 
those
 
held
 
for trading
 
or
those
 
managed
 
on
 
a
 
fair value
 
basis,
 
except
 
for
 
derivatives
 
designated
 
in
 
a
 
hedge
 
relationship,
 
in
 
which
 
case
 
hedge
accounting requirements apply (refer to item
 
2j in this Note for more information).
 
Business model assessment and
 
contractual cash flow characteristics
 
UBS
 
AG determines
 
the nature
 
of a
 
business
 
model by
 
considering
 
the way
 
financial assets
 
are managed
 
to achieve
 
a
particular business objective.
 
In assessing whether contractual
 
cash flows are SPPI, the
 
UBS AG considers whether the
 
contractual terms of the
 
financial
asset
 
contain
 
a
 
term
 
that
 
could
 
change
 
the
 
timing
 
or
 
amount
 
of
 
contractual
 
cash
 
flows
 
arising
 
over
 
the
 
life
 
of
 
the
instrument. This assessment includes
 
contractual cash flows that
 
may vary due to environmental,
 
social and governance
(ESG) triggers.
Financial liabilities
 
Financial liabilities measured at amortized
 
cost
 
Financial liabilities
 
measured at
 
amortized cost
 
include
Debt issued
 
measured at
 
amortized cost
 
and
Funding from
 
UBS
Group
 
AG
 
measured
 
at
 
amortized
 
cost
.
 
The
 
latter
 
includes
 
contingent
 
capital
 
instruments
 
issued
 
to
 
UBS
 
Group
 
AG
containing
 
contractual provisions
 
under
 
which the
 
principal amounts
 
would be
 
written down
 
or converted
 
into equity
upon
 
either
 
a
 
specified
 
common
 
equity
 
tier 1
 
(CET1)
 
ratio
 
breach
 
or
 
a
 
determination
 
by
 
the
 
Swiss
 
Financial
 
Market
Supervisory Authority
 
(FINMA) that a
 
viability event has occurred.
 
Such contractual provisions
 
are not
 
derivatives, as the
underlying is deemed to be
 
a non-financial variable specific to a party to
 
the contract.
 
If a debt were to be written down or converted into equity in
 
a future period, it would be partially or fully derecognized,
with
 
the
 
difference
 
between
 
its
 
carrying
 
amount
 
and
 
the
 
fair
 
value
 
of
 
any
 
equity
 
issued
 
recognized
 
in
 
the
 
income
statement.
 
A gain or loss is recognized
 
in
Other income
 
when debt issued
 
is subsequently repurchased
 
for market-making or
 
other
activities. A subsequent
 
sale of own bonds in the market is treated as a reissuance
 
of debt.
Financial liabilities measured at fair value
 
through profit or loss
 
UBS AG designates certain
 
issued debt instruments as financial
 
liabilities at fair value through
 
profit or loss, on the
 
basis
that such financial instruments include non
 
-closely-related embedded derivatives that
 
significantly impact the cash flows
of the instrument
 
and /
 
or are
 
managed on
 
a fair value
 
basis (refer
 
to the table
 
below for
 
more information).
 
Financial
instruments
 
including
 
embedded
 
derivatives
 
arise
 
predominantly
 
from
 
the
 
issuance
 
of
 
certain
 
structured
 
debt
instruments.
 
Measurement and presentation
 
After initial
 
recognition,
 
UBS
 
AG classifies,
 
measures
 
and
 
presents
 
its financial
 
assets
 
and
 
liabilities in
 
accordance
 
with
IFRS 9, as described in the table
 
below.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
382
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
 
Classification, measurement
 
and presentation of financial assets
 
Financial assets classification
Significant items included
Measurement and
 
presentation
Measured at
 
amortized cost
This classification includes:
–
 
cash and balances at central banks;
–
 
loans and advances to banks;
–
 
receivables from
 
securities financing transactions;
–
 
cash collateral receivables
 
on derivative
instruments;
–
 
residential and
 
commercial mortgages;
–
 
corporate loans;
–
 
secured loans, including Lombard
 
loans, and
unsecured loans;
–
 
loans to financial advisors;
 
and
–
 
debt securities held as high
 
-quality liquid assets
(HQLA).
 
Measured at amortized
 
cost using the effective interest
method less allowances
 
for expected credit losses (ECL)
(refer to items 2d and 2g in
 
this Note for more information).
The following items are recognized
 
in the income
statement:
–
 
interest income, which is
 
accounted for in accordance
with item 2d in this Note;
–
 
ECL and reversals;
 
and
–
 
foreign exchange (FX)
 
translation gains and losses.
When a financial asset at amortized
 
cost is derecognized,
the gain or loss is recognized
 
in the income statement.
For amounts arising from
 
settlement of certain derivatives,
see below in this table.
 
Measured at
FVOCI
 
Debt
instruments
measured at
FVOCI
This classification primarily includes
 
debt securities
and certain asset-backed securities
 
held as HQLA.
Measured at fair value
 
,
 
with unrealized gains and losses
reported in
Other comprehensive income,
net of applicable
income taxes, until such investments
 
are derecognized.
Upon derecognition, any accumulated
 
balances in
Other
comprehensive income
are reclassified to the income
statement and reported
 
within
Other income.
The following items, which are
 
determined on the same
basis as for financial assets measured
 
at amortized cost, are
recognized in the income
 
statement:
–
 
interest income, which is
 
accounted for in accordance
with item 2d in this Note;
–
 
ECL and reversals; and
–
 
FX translation gains and losses.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
383
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
 
Classification, measurement
 
and presentation of financial assets
 
Financial assets classification
Significant items included
Measurement and
 
presentation
Measured at
FVTPL
Held for
 
trading
Financial assets held for
 
trading include:
–
 
all derivatives with a positive
 
replacement value, except
those that are designated
 
and effective hedging
instruments; and
–
 
other financial assets acquired
 
principally for the
purpose of selling or repurchasing
 
in the near term, or
that are part of a portfolio
 
of identified financial
instruments that are managed
 
together and for which
there is evidence of a recent
 
actual pattern of short-
term profit taking. Included
 
in this category are debt
instruments (including those
 
in the form of securities,
money market paper,
 
and traded corporate and bank
loans) and equity instruments.
 
Measured at fair value
 
,
 
with changes recognized in the
income statement.
Derivative assets (including
 
derivatives that are designated
and effective hedging instruments)
 
are generally
presented as
Derivative financial instruments
, except those
exchange-traded derivatives (ETD)
 
and over-the-counter
(OTC)-cleared derivatives that are
 
legally settled on a daily
basis or economically net
 
settled on a daily basis, which
are presented within
Cash collateral receivables on
derivative instruments.
Changes in fair value, initial transaction
 
costs, dividends
and gains and losses arising
 
on disposal or redemption are
recognized in
Other net income from financial
instruments measured at fair value
 
through profit or loss,
except interest income on instruments
 
other than
derivatives (refer to item 2d
 
in this Note), interest on
derivatives designated as hedging
 
instruments in hedges
of interest rate risk and
 
forward points on certain short-
and long-duration FX contracts acting
 
as economic
hedges, which are reported
 
in
Net interest income.
 
Changes in the fair
 
value of derivatives that are
designated and effective
 
hedging instruments are
presented either in the income
 
statement or
Other
comprehensive income
, depending on the type of hedge
relationship (refer
 
to item 2j
 
in this Note for more
information).
Mandatorily
measured at
FVTPL – Other
This classification includes financial asset
 
s
 
mandatorily
measured at FVTPL that are
 
not held for trading, as
follows:
 
–
 
certain structured loans, certain
 
commercial loans, and
receivables from
 
securities financing transactions that
are managed on a fair
 
value basis;
 
–
 
loans managed on a fair
 
value basis,
 
including those
hedged with credit derivatives
 
;
–
 
certain debt securities held as HQLA and
 
managed on a
fair value basis;
 
–
 
certain investment fund holdings
 
and assets held to
hedge delivery obligations related
 
to cash-settled
employee compensation plans;
 
–
 
brokerage receivables,
 
for which contractual cash flows
do not meet the SPPI criterion
 
because the aggregate
balance is accounted for as a
 
single unit of account,
with interest being calculated
 
on the individual
components;
–
 
auction rate securities, for
 
which contractual cash flows
do not meet the SPPI criterion
 
because interest may be
reset at rates that contain leverage
 
;
–
 
equity instruments;
 
and
–
 
assets held under unit-linked investment
 
contracts.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
384
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
 
Classification, measurement
 
and presentation of financial liabilities
 
Financial liabilities classification
Significant items included
Measurement and
 
presentation
Measured at amortized cost
This classification includes:
–
 
demand and time deposits;
 
–
 
retail savings / deposits;
–
 
sweep deposits;
–
 
payables
 
from securities financing transactions
 
;
 
–
 
non-structured debt
 
issued;
 
–
 
subordinated debt;
 
–
 
commercial paper and
 
certificates of deposit;
 
–
 
obligations against funding
 
from UBS Group AG; and
–
 
cash collateral payables on derivative
 
instruments.
Measured at amortized
 
cost using the effective interest
method.
When a financial liability at amortized
 
cost is
derecognized, the gain
 
or loss is recognized in the income
statement.
 
Interest Income generated
 
from client deposits
derecognized pursuant
 
to certain deposit sweep programs
is presented within
Net interest income from financial
instruments measured at fair value
 
through profit or loss
and other
.
Measured at
FVTPL
Held for trading
Financial liabilities held for trading include:
–
 
all derivatives with a negative replacement
 
value
(including certain loan commitments)
 
,
 
except those
that are designated and
 
effective hedging
instruments; and
–
 
obligations to deliver financial
 
instruments, such as
debt and equity instruments,
 
that UBS AG has sold to
third parties but does not
 
own (short positions).
Measurement and presentati
 
on of financial liabilities
classified at FVTPL follow the
 
same principles as for
financial assets classified at FVTPL, except
 
that the amount
of change in the fair value of a
 
financial liability
designated at FVTPL that is
 
attributable to changes in UBS
AG’s own credit risk is
 
presented in
Other comprehensive
income
 
directly within
Retained earnings
and is never
reclassified to the income
 
statement.
Derivative liabilities (including derivatives
 
that are
designated and effective
 
hedging instruments) are
generally presented as
Derivative financial instruments,
except those exchange
 
-traded and OTC-cleared
derivatives that are legally settled
 
on a daily basis or
economically net settled on a
 
daily basis, which are
presented within
Cash collateral payables on derivative
instruments.
Designated at
FVTPL
UBS AG designates
 
at FVTPL the following financial
liabilities:
–
 
issued hybrid debt instruments
 
that primarily include
equity-linked, credit
 
-linked and rates-linked bonds or
notes;
–
 
issued debt instruments managed
 
on a fair value
basis;
–
 
obligations against funding
 
from UBS Group AG
managed on a fair value basis
 
;
–
 
certain payables from
 
securities financing
transactions;
–
 
amounts due under unit
 
-linked investment contracts,
the cash flows of which are
 
linked to financial assets
measured at FVTPL and eliminate
 
an accounting
mismatch;
 
and
–
 
brokerage payables, which arise
 
in conjunction with
brokerage receivables
 
and are measured at FVTPL to
achieve measurement consistency.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
385
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
c. Loan commitments and financial guarantees
Loan
 
commitments
 
are
 
arrangements
 
to
 
provide
 
credit
 
under
 
defined
 
terms
 
and
 
conditions.
 
Irrevocable
 
loan
commitments
 
are
 
classified
 
as:
 
(i) derivative
 
loan
 
commitments
 
measured
 
at
 
fair
 
value
 
through
 
profit
 
or
 
loss;
 
(ii) loan
commitments
 
designated
 
at
 
fair
 
value
 
through
 
profit
 
or
 
loss;
 
or
 
(iii) loan
 
commitments
 
not
 
measured
 
at
 
fair
 
value.
Financial guarantee contracts are contracts that require
 
UBS AG to make specified payments to reimburse
 
the holder for
an incurred loss because a specified debtor fails to make
 
payments when due in accordance with the terms of a
 
specified
debt instrument.
d.
 
Interest income and expense
Interest
 
income
 
and
 
expense
 
are
 
recognized
 
in
 
the
 
income
 
statement
 
based
 
on
 
the
 
effective
 
interest
 
method.
 
When
calculating the effective interest rate (the EIR) for financial instruments (other than credit-impaired financial
 
instruments),
UBS AG
 
estimates future cash
 
flows considering
 
all contractual terms of
 
the instrument,
 
but not expected
 
credit losses,
with
 
the
 
EIR
 
applied
 
to
 
the
 
gross
 
carrying
 
amount
 
of
 
the
 
financial asset
 
or
 
the
 
amortized
 
cost
 
of
 
a
 
financial
 
liability.
However,
 
when
 
a
 
financial
 
asset
 
becomes
 
credit-impaired
 
after
 
initial
 
recognition,
 
interest
 
income
 
is
 
determined
 
by
applying the
 
EIR to the
 
amortized cost of
 
the instrument,
 
which represents
 
the gross
 
carrying amount
 
adjusted for
 
any
credit loss allowance.
 
Upfront fees, including
 
fees on loan commitments not measured at fair value where a loan
 
is expected to be issued, and
direct costs are
 
included
 
within the
 
initial measurement
 
of a
 
financial instrument
 
measured
 
at amortized cost
 
or FVOCI
and recognized over the expected life of
 
the instrument as part of its EIR.
Fees related
 
to loan
 
commitments where
 
no loan
 
is expected
 
to be
 
issued, as
 
well as
 
loan syndication
 
fees where
 
UBS
AG does not retain a portion of the syndicated loan or where UBS AG does retain a portion of the syndicated loan at the
same effective yield for comparable risk as other participants,
 
are included in
Net fee and commission income
and either
recognized over the life of the commitment
 
or when syndication occurs.
 
›
 
Refer to item 3 in
 
this Note for more
 
information
Interest
 
income
 
on
 
financial
 
assets,
 
excluding
 
derivatives,
 
is
 
included
 
in
 
interest
 
income
 
when
 
positive
 
and
 
in
 
interest
expense
 
when
 
negative.
 
Similarly,
 
interest
 
expense
 
on
 
financial
 
liabilities,
 
excluding
 
derivatives,
 
is
 
included
 
in
 
interest
expense, except when interest rates are
 
negative, in which case it is included
 
in interest income.
 
›
 
Refer to item 2b in
 
this Note and
 
Note 3 for more information
e. Derecognition
 
Financial assets
UBS
 
AG
 
derecognizes
 
a
 
transferred
 
financial
 
asset,
 
or
 
a
 
portion
 
of
 
a
 
financial
 
asset,
 
if
 
the
 
purchaser
 
has
 
received
substantially all the risks and rewards of the asset or a significant part of the risks and rewards
 
combined with a practical
ability to sell or pledge the asset.
 
Where
 
financial
 
assets
 
have
 
been
 
pledged
 
as
 
collateral
 
or
 
in
 
similar
 
arrangements,
 
they
 
are
 
considered
 
to
 
have
 
been
transferred
 
if the
 
counterparty has
 
received
 
the contractual
 
rights
 
to
 
the cash
 
flows
 
of the
 
pledged
 
assets, as
 
may
 
be
evidenced
 
by,
 
for
 
example,
 
the
 
counterparty’s
 
right
 
to
 
sell
 
or
 
repledge
 
the assets.
 
In
 
transfers where
 
control
 
over
 
the
financial
 
asset
 
is
 
retained,
 
UBS
 
AG
 
continues
 
to
 
recognize
 
the
 
asset
 
to
 
the
 
extent
 
of
 
its
 
continuing
 
involvement,
determined by the extent to which it is exposed
 
to changes in the value of the
 
transferred asset following the transfer.
 
›
 
Refer to Note 22
 
for more information
 
Financial liabilities
UBS
 
AG derecognizes
 
a
 
financial liability
 
when
 
it is
 
extinguished,
 
i.e., when
 
the obligation
 
specified
 
in the
 
contract is
discharged, canceled or expires. When
 
an existing financial liability is exchanged for a new
 
one from the same lender on
substantially
 
different
 
terms,
 
or
 
the
 
terms
 
of
 
an
 
existing
 
liability
 
are
 
substantially
 
modified,
 
the
 
original
 
liability
 
is
derecognized
 
and
 
a
 
new
 
liability
 
recognized
 
with
 
any
 
difference
 
in
 
the
 
respective
 
carrying
 
amounts
 
recorded
 
in
 
the
income statement.
 
Certain OTC derivative
 
contracts and most exchange-traded futures and option
 
contracts cleared through central
 
clearing
counterparties and exchanges are considered
 
to be settled on a daily basis,
 
as the payment or receipt of variation margin
on a daily basis represents
 
legal or economic settlement, which results in derecognition
 
of the associated derivatives.
›
 
Refer to Note 21
 
for more information
 
f.
 
Fair value of financial instruments
UBS
 
AG
 
accounts
 
for
 
a
 
significant
 
portion
 
of
 
its
 
assets
 
and
 
liabilities
 
at
 
fair
 
value.
 
Fair
 
value
 
is
 
the
 
price
 
on
 
the
measurement date
 
that would be
 
received for the
 
sale of an
 
asset or paid
 
to transfer a liability in
 
an orderly
 
transaction
between market participants
 
in the principal
 
market, or in
 
the most advantageous
 
market in the
 
absence of
 
a principal
market.
 
›
 
Refer to Note 20
 
for more information
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
386
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
Critical accounting estimates and judgments
The use
 
of valuation techniques,
 
modeling assumptions
 
and estimates of
 
unobservable market
 
inputs in the
 
fair valuation of
 
financial instruments
 
requires
significant
 
judgment
 
and
 
could
 
affect
 
the
 
amount
 
of
 
gain
 
or
 
loss
 
recorded
 
for
 
a
 
particular
 
position.
 
Valuation
 
techniques
 
that
 
rely
 
more
 
heavily
 
on
unobservable
 
inputs
 
and
 
sophisticated
 
models
 
inherently
 
require
 
a
 
higher
 
level of
 
judgment
 
and
 
may
 
require
 
adjustment
 
to reflect
 
factors
 
that
 
market
participants would consider
 
in estimating fair value, such as close
 
-out costs, which are presented in Note 2
 
0d.
 
UBS AG’s governance framework over fair value measurement is
 
described in Note 20b,
 
and UBS AG provides a sensitivity
 
analysis of the estimated effects
arising from changing significant
 
unobservable inputs in Level 3 financial instruments
 
to reasonably possible alternative assumptions
 
in Note 20f.
 
›
 
Refer to Note 20
 
for more information
g.
 
Allowances and provisions for expected credit losses
ECL are
 
recognized
 
for financial
 
assets measured
 
at amortized
 
cost, financial
 
assets
 
measured
 
at FVOCI,
 
fee and
 
lease
receivables,
 
financial
 
guarantees,
 
and
 
loan
 
commitments
 
not
 
measured
 
at
 
fair
 
value.
 
ECL
 
are
 
also
 
recognized
 
on
 
the
undrawn
 
portion
 
of
 
committed
 
unconditionally
 
revocable
 
credit
 
lines,
 
which
 
include
 
UBS
 
AG’s
 
credit
 
card
 
limits
 
and
master credit
 
facilities, as
 
UBS
 
AG
 
is exposed
 
to credit
 
risk because
 
the borrower
 
has the
 
ability
 
to draw
 
down
 
funds
before UBS AG can take credit
 
risk mitigation actions.
Recognition of expected credit losses
 
ECL are recognized on
 
the following basis.
–
 
Stage 1 instruments: Maximum 12-month ECL are recognized from initial
 
recognition, reflecting the portion of lifetime
cash shortfalls that would result
 
if a default occurs in
 
the 12 months after the
 
reporting date, weighted
 
by the risk of
a default occurring.
 
–
 
Stage 2 instruments: Lifetime ECL are recognized if
 
a significant increase in credit risk (an SICR) is
 
observed subsequent
to
 
the
 
instrument’s
 
initial
 
recognition,
 
reflecting
 
lifetime
 
cash
 
shortfalls
 
that
 
would
 
result
 
from
 
all
 
possible
 
default
events over
 
the expected
 
life of a
 
financial instrument,
 
weighted by
 
the risk of
 
a default
 
occurring. When
 
an SICR
 
is
no longer observed, the instrument will
 
move back to stage 1.
–
 
Stage 3
 
instruments: Lifetime
 
ECL are
 
always recognized
 
for credit-impaired
 
financial instruments,
 
as determined
 
by
the occurrence
 
of one
 
or more
 
loss events,
 
by estimating
 
expected cash
 
flows based
 
on a
 
chosen
 
recovery strategy.
Credit-impaired exposures
 
may include
 
positions for
 
which no
 
allowance has
 
been recognized,
 
for example because
they are expected to be fully recoverable through
 
collateral held.
–
 
Changes in lifetime ECL since initial recognition
 
are also recognized for assets that are
 
purchased or originated
 
credit-
impaired (POCI).
 
POCI financial instruments
 
include those
 
that are
 
purchased at
 
a deep discount
 
or newly originated
with a defaulted counterparty;
 
they remain a separate category until
 
derecognition.
 
All or part of
 
a financial
 
asset is written
 
off if it
 
is deemed uncollectible
 
or forgiven. Write-offs reduce the
 
principal amount
of a claim
 
and are charged against related allowances for
 
credit losses. Recoveries, in part or
 
in full, of amounts previously
written off are generally credited
 
to
Credit loss expense / (release)
.
 
ECL are recognized in the income statement in
Credit loss expense / (release)
. A corresponding ECL allowance is reported
as a decrease
 
in the carrying
 
amount of
 
financial assets measured
 
at amortized
 
cost on
 
the balance
 
sheet. For financial
assets that
 
are
 
measured
 
at FVOCI,
 
the carrying
 
amount
 
is not
 
reduced,
 
but an
 
accumulated amount
 
is recognized
 
in
Other comprehensive
 
income
. For
 
off-balance sheet
 
financial instruments
 
and
 
other credit
 
lines, provisions
 
for ECL
 
are
presented in
Provisions.
Default and credit impairment
UBS AG applies a single
 
definition of default for credit
 
risk management purposes,
 
regulatory reporting and
 
ECL, with a
counterparty classified as defaulted based
 
on quantitative and qualitative criteria.
 
›
 
Refer to “Credit policies
 
for distressed assets”
 
in the “Risk
 
management and
 
control”
 
section of this
 
report for more information
Measurement of expected credit losses
IFRS 9 ECL
 
reflect an unbiased,
 
probability-weighted estimate
 
based on
 
loss expectations resulting
 
from default events.
The method
 
used to
 
calculate ECL
 
applies the
 
following
 
principal factors:
 
probability of
 
default (PD),
 
loss given
 
default
(LGD) and
 
exposure at
 
default (EAD).
 
Parameters are
 
generally
 
determined on
 
an individual
 
financial asset
 
level. Based
on the
 
materiality of the portfolio,
 
for credit card
 
exposures and
 
personal account overdrafts
 
in Switzerland,
 
a portfolio
approach is applied that derives
 
an average PD and LGD
 
for the entire portfolio. PDs
 
and LGDs used in
 
the ECL calculation
are point-in-time
 
(PIT)-based for
 
key portfolios
 
and consider
 
both current
 
conditions and
 
expected cyclical changes.
 
For
material portfolios, PDs and LGDs are
 
determined for different scenarios, whereas EAD projections are treated as
 
scenario
independent.
For the
 
purpose
 
of determining
 
the ECL
 
-relevant parameters,
 
UBS
 
AG leverages
 
its
 
Basel III advanced
 
internal
 
ratings-
based
 
(A-IRB)
 
models that
 
are also
 
used
 
in determi
 
ning
 
expected
 
loss (EL)
 
and
 
risk-weighted
 
assets under
 
the Basel
 
III
framework and Pillar 2 stress loss models. Adjustments have
 
been made to these models and IFRS 9-related models have
been developed that consider the complexity, structure and risk profile of relevant portfolios and take account of the fact
that PDs and LGDs used in the ECL calculation are PIT-based, as opposed to the corresponding Basel III through-the-cycle
(TTC)
 
parameters.
 
All
 
models
 
that
 
are
 
relevant
 
for
 
measuring
 
expected
 
credit
 
losses
 
are
 
subject
 
to
 
UBS
 
AG’s
 
model
validation and oversight processes.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
387
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
Probability of default:
PD represents
 
the probability of a default
 
over a specified time
 
period. A 12
 
-month PD represents
the probability of default determined
 
for the next 12 months and a lifetime PD represents
 
the probability of default over
the remaining lifetime
 
of the instrument. PIT
 
PDs are derived
 
from TTC PDs and
 
scenario forecasts. The modeling is
 
region,
industry and
 
client segment
 
specific and
 
considers both
 
macroeconomic scenario
 
dependencies
 
and client-idiosyncratic
information.
Exposure at default:
EAD represents an estimate of the exposure to credit
 
risk at the time of
 
a potential default occurring,
considering expected repayments, interest
 
payments and accruals, discounted
 
at the EIR. Future drawdowns on
 
facilities
are considered
 
through a
 
credit conversion factor
 
(a
 
CCF) that is
 
reflective of historical
 
drawdown
 
and default
 
patterns
and the characteristics of the
 
respective portfolios.
Loss given default:
LGD represents an estimate
 
of the loss at the time of a potential
 
default occurring, taking
 
into account
expected
 
future
 
cash
 
flows
 
from
 
collateral
 
and
 
other
 
credit
 
enhancements,
 
or
 
expected
 
payouts
 
from
 
bankruptcy
proceedings for unsecured
 
claims and, where applicable,
 
time to realization
 
of collateral and the
 
seniority of claims.
 
LGD is
commonly expressed
 
as a percentage of
 
EAD.
Estimation of expected credit losses
Number of scenarios and estimation
 
of scenario weights
Determination of
 
probability-weighted ECL
 
requires evaluating
 
a range of diverse
 
and relevant future
 
economic conditions,
especially with a view
 
to modeling the
 
non-linear effect of assumptions
 
about macroeconomic
 
factors on the
 
estimate.
 
To accommodate
 
this requirement,
 
UBS
 
AG uses
 
different
 
economic
 
scenarios
 
in the
 
ECL calculation.
 
Each scenario
 
is
represented
 
by a
 
specific scenario
 
narrative,
 
which
 
is
 
relevant
 
considering
 
the exposure
 
of key
 
portfolios
 
to
 
economic
risks, and for which
 
a set of
 
consistent macroeconomic variables is
 
determined. The estimation of the appropriate weights
for
 
these
 
scenarios
 
is
 
predominantly
 
judgment-based.
 
The
 
assessment
 
is
 
based
 
on
 
a
 
holistic review
 
of
 
the
 
prevailing
economic or
 
political
 
conditions,
 
which may
 
exhibit
 
different levels
 
of uncertainty.
 
It takes
 
into account
 
the impact
 
of
changes in the nature
 
and severity of the underlying scenario narratives
 
and
 
the projected economic variables.
 
The determined
 
weights constitute
 
the probabilities that
 
the respective
 
set of macroeconomic
 
conditions will
 
occur and
not that the chosen particular narratives with
 
the related macroeconomic variables
 
will materialize.
Macroeconomic and other factors
The range
 
of macroeconomic,
 
market and
 
other factors
 
that is
 
modeled as
 
part of
 
the scenario
 
determination
 
is wide,
and historical information
 
is used to
 
support the identification
 
of the key
 
factors. As the
 
forecast horizon
 
increases, the
availability of
 
information
 
decreases,
 
requiring
 
an increase
 
in judgment.
 
For
 
cycle-sensitive PD
 
and
 
LGD
 
determination
purposes,
 
UBS AG
 
projects the
 
relevant economic
 
factors for
 
a period
 
of three
 
years before
 
reverting,
 
over a
 
specified
period, to cycle-neutral PD and LGD for longer
 
-term projections.
 
Factors relevant
 
for ECL
 
calculation
 
vary by
 
type of
 
exposure.
 
Regional and
 
client-segment
 
characteristics
 
are generally
taken into account, with specific focus
 
on Switzerland and the US,
 
considering UBS AG’s key ECL-relevant
 
portfolios.
For
 
UBS
 
AG,
 
the
 
following
 
forward-looking
 
macroeconomic
 
variables
 
represent
 
the
 
most
 
relevant
 
factors
 
for
 
ECL
calculation:
 
–
 
GDP growth rates, given their significant
 
effect on borrowers’
 
performance;
 
–
 
unemployment rates, given their significant effect
 
on private clients’ ability to meet
 
contractual obligations;
 
–
 
house price indices, given their significant
 
effect on mortgage collateral
 
valuations;
 
–
 
interest rates, given their significant effect on
 
counterparties’ abilities to service
 
debt;
 
–
 
consumer price
 
indices,
 
given their
 
overall relevance
 
for companies’
 
performance,
 
private
 
clients’ purchasing
 
power
and economic stability; and
–
 
equity indices, given that they are an
 
important factor in our corporate rating
 
tools.
 
Scenario generation, review process and
 
governance
A team of
 
economists, which
 
is part
 
of Group
 
Risk Control,
 
develop the
 
forward-looking
 
macroeconomic assumptions
with involvement from a broad
 
range of experts.
The
 
scenarios,
 
their weight
 
and
 
the
 
key macroeconomic
 
and
 
other
 
factors
 
are
 
subject
 
to
 
a
 
critical
 
assessment
 
by
 
the
IFRS 9 Scenario
 
Sounding
 
Sessions
 
and
 
ECL Management
 
Forum, which
 
include senior
 
management
 
from
 
Group
 
Risk
and Group
 
Finance. Important aspects
 
for the
 
review include
 
whether there
 
may be
 
particular credit
 
risk concerns
 
that
may not be
 
capable of being
 
addressed systematically and
 
require post-model
 
adjustments for stage
 
allocation and
 
ECL
allowance.
 
The
 
Group
 
Model
 
Governance
 
Committee
 
(the
 
GMGC),
 
as
 
the
 
highest
 
authority
 
under
 
UBS
 
AG’s
 
model
 
governance
framework, ratifies the decisions
 
taken by the ECL Management Forum.
 
›
 
Refer to Note 19
 
for more information
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
388
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
ECL measurement period
 
The period
 
for which lifetime ECL are
 
determined is
 
based on the
 
maximum contractual period
 
that UBS AG is
 
exposed
to
 
credit
 
risk,
 
taking
 
into
 
account
 
contractual
 
extension,
 
termination
 
and
 
prepayment
 
options.
 
For
 
irrevocable
 
loan
commitments
 
and
 
financial guarantee
 
contracts, the
 
measurement
 
period
 
represents
 
the maximum
 
contractual
 
period
for which UBS AG has an
 
obligation to extend credit.
Additionally, some financial instruments include both
 
an on-demand loan and a revocable undrawn commitment, where
the contractual cancellation right
 
does not limit UBS AG’s exposure
 
to credit risk to the contractual notice period,
 
as the
client has the ability
 
to draw down funds
 
before UBS AG can
 
take risk-mitigating actions. In
 
such cases UBS
 
AG is required
to estimate
 
the period
 
over which
 
it is exposed
 
to credit
 
risk. This
 
applies to
 
UBS AG’s
 
credit card
 
limits, which
 
do not
have a defined
 
contractual maturity date,
 
are callable on
 
demand and
 
where the drawn
 
and undrawn
 
components are
managed as
 
one exposure. The
 
exposure arising from
 
UBS AG’s
 
credit card limits is
 
not significant and
 
is managed
 
at a
portfolio level, with
 
credit actions
 
triggered when
 
balances are
 
past due. An
 
ECL measurement period
 
of seven years
 
is
applied for credit card limits, capped at
 
12 months for stage 1 balances, as a proxy for the period that
 
UBS AG is exposed
to credit risk.
Customary master credit
 
agreements in the
 
Swiss corporate market
 
also include
 
on-demand loans and revocable
 
undrawn
commitments.
 
For
 
smaller
 
commercial
 
facilities,
 
a
 
risk-based
 
monitoring
 
(RbM)
 
approach
 
is
 
in
 
place
 
that
 
highlights
negative
 
trends
 
as
 
risk
 
events,
 
at
 
an
 
individual
 
facility
 
level,
 
based
 
on
 
a
 
combination
 
of
 
continuously
 
updated
 
risk
indicators. The risk events
 
trigger additional credit reviews
 
by a risk officer,
 
enabling informed credit decisions to
 
be taken.
Larger corporate facilities are not subject to
 
RbM, but are reviewed
 
at least annually through a formal credit review. UBS
AG has assessed these credit risk management practices and considers both the
 
RbM approach and formal credit reviews
as substantive
 
credit reviews
 
resulting
 
in a re
 
-origination o
 
f
 
the given
 
facility. Following
 
this, a 12
 
-month measurement
period from
 
the reporting date
 
is used
 
for both types
 
of facilities as an
 
appropriate proxy of
 
the period
 
over which UBS
AG is
 
exposed to credit
 
risk, with 12
 
months also used
 
as a
 
look-back period for
 
assessing SICR, always from
 
the respective
reporting date.
Significant increase in credit risk
 
Financial
 
instruments
 
subject
 
to ECL
 
are monitored
 
on an
 
ongoing
 
basis.
 
To
 
determine
 
whether
 
the recognition
 
of a
maximum
 
12-month
 
ECL
 
continues
 
to
 
be
 
appropriate,
 
an
 
assessment
 
is
 
made
 
as
 
to whether
 
an SICR
 
has
 
occurred
since initial
 
recognition
 
of the
 
financial instrument
 
,
 
applying
 
both quantitative
 
and qualitative
 
factors.
 
Primarily, UBS AG assesses changes in an instrument’s
 
risk of default on a quantitative basis by comparing the
 
annualized
forward-looking and
 
scenario-weighted lifetime PD of an instrument determined
 
at two different dates:
 
–
 
at the reporting date; and
 
–
 
at inception of the instrument.
If, based
 
on UBS
 
AG’s quantitative
 
modeling, an
 
increase exceeds a
 
set threshold,
 
an SICR
 
is deemed
 
to have occurred
and the instrument is transferred to
 
stage 2 with lifetime ECL recognized.
The threshold
 
applied varies depending
 
on the
 
original credit
 
quality of
 
the borrower,
 
with a higher
 
SICR threshold
 
set
for those
 
instruments with
 
a low
 
PD at
 
inception. The
 
SICR assessment
 
based on
 
PD changes
 
is made
 
at an
 
individual
financial asset
 
level. A
 
high-level overview
 
of the
 
SICR
 
trigger, which
 
is a
 
multiple of
 
the annualized
 
remaining
 
lifetime
PIT
 
PD
 
expressed
 
in
 
rating downgrades
 
,
 
is provided
 
in the
 
“SICR
 
thresholds”
 
table below.
 
The
 
actual SICR
 
thresholds
applied are defined on
 
a more granular level by interpolating between the
 
values shown in
 
the table.
SICR thresholds
–
 
Internal rating at origination
 
of the instrument
–
 
Rating downgrades /
SICR trigger
0–3
3
4–8
2
9–13
1
›
 
Refer to the “Risk
 
management and
 
control” section of
 
this report for more
 
details about
 
UBS AG’s internal grading
 
system
Irrespective of
 
the SICR
 
assessment based
 
on
 
default probabilities,
 
credit risk
 
is generally
 
deemed to
 
have significantly
increased
 
for
 
an
 
instrument
 
if
 
the
 
contractual
 
payments
 
are
 
more
 
than
 
30
 
days
 
past
 
due.
 
For
 
certain
 
less
 
material
portfolios, specifically the Swiss
 
credit card
 
portfolio,
 
the 30-day past due criterion
 
is used as the
 
primary indicator of an
SICR. Where instruments are transferred to stage 2 due to
 
the 30-day past due criterion, a
 
minimum period of six
 
months
is applied before a transfer
 
back to stage 1 can be triggered. For
 
instruments in Personal & Corporate Banking and Global
Wealth Management
 
Region Switzerland
 
that are between
 
90 and 180 days
 
past due but
 
have not been
 
reclassified to
stage 3, a one-year period is applied
 
before a transfer back to stage 1 can
 
be triggered.
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
389
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
Additionally,
 
based
 
on
 
individual
 
counterparty-specific
 
indicators,
 
external
 
market
 
indicators
 
of
 
credit
 
risk
 
or
 
general
economic conditions, counterparties may be moved
 
to a watch list, which is used as a secondary qualitative indicator for
an
 
SICR.
 
Exception
 
management
 
is
 
further
 
applied,
 
allowing
 
for
 
individual
 
and
 
collective
 
adjustments
 
on
 
exposures
sharing the same credit risk characteristics
 
to take account of specific situa
 
tions that are not otherwise
 
fully reflected.
 
In general, the overall SICR determination process does not apply to Lombard loans, securities financing transactions and
certain
 
other
 
asset-based
 
lending
 
transactions,
 
because
 
of
 
the
 
risk
 
management
 
practices
 
adopted,
 
including
 
daily
monitoring
 
processes
 
with strict
 
margining.
 
If margin
 
calls are
 
not satisfied,
 
a position
 
is closed
 
out
 
and classified
 
as a
stage 3 position. In exceptional cases, an individual adjustment
 
and a transfer into stage 2 may be made to take account
of specific facts.
Credit risk
 
officers are
 
responsible
 
for the
 
identification
 
of an
 
SICR,
 
which for
 
accounting
 
purposes
 
is in
 
some respects
different
 
from
 
internal
 
credit
 
risk
 
management
 
processes
.
 
This
 
difference
 
mainly
arises
because
 
ECL
 
accounting
requirements are instrument-specific, such that a borrower can
 
have multiple exposures allocated to different stages, and
maturing loans in stage 2
 
will migrate to stage 1 upon renewal irrespective of the actual
 
credit risk at that time. Under a
risk-based
 
approach,
 
a
 
holistic
 
counterparty
 
credit
 
assessment
 
and
 
the
 
absolute
 
level
 
of
 
risk
 
at
 
any
 
given
 
date
 
will
determine what risk-mitigating actions
 
may be warranted.
›
 
Refer to the “Risk
 
management and
 
control” section of
 
this report for more
 
information
 
Critical accounting estimates and judgments
The calculation of ECL requires management to apply significant judgment and make
 
estimates and assumptions that can result in significant changes to the
timing and amount of ECL recognized.
 
Determination of a significant
 
increase in credit risk
 
IFRS 9 does
 
not include a definition
 
of what constitutes an
 
SICR,
 
with UBS AG’s assessment
 
considering qualitative and
 
quantitative criteria.
 
An IFRS 9 ECL
Management Forum has
 
been established to review and challenge the SICR
 
results.
Scenarios, scenario weight
 
s
 
and macroeconomic variables
 
ECL reflect
 
an unbiased
 
and
 
probability-weighted
 
amount,
 
which UBS
 
AG determines
 
by evaluating
 
a range
 
of possible
 
outcomes.
 
Management
 
selects
forward-looking scenarios that include relevant macroeconomic variables
 
and management’s assumptions around future
 
economic conditions. IFRS 9
 
Scenario
Sounding Sessions,
 
in addition to
 
the IFRS 9 ECL Management
 
Forum, are in place
 
to derive,
 
review and challenge
 
the scenario selection
 
and weights, and
to determine whether any
 
additional post-model adjustments are
 
required that may significantly affect ECL
 
.
 
ECL measurement period
Lifetime ECL are generally determined based upon the contractual maturity of the transaction, which significantly affects ECL.
 
For credit card limits and Swiss
callable master
 
credit facilities,
 
judgment is
 
required,
 
as UBS
 
AG must
 
determine
 
the period
 
over
 
which it
 
is exposed
 
to credit
 
risk. A
 
seven-year period
 
is
applied for credit card limits,
 
capped at 12 months for stage 1 positions,
 
and a 12-month period applied for master credit
 
facilities.
 
Modeling and post-model adjustments
A number of
 
complex models have been
 
developed or modified
 
to calculate ECL,
 
with additional post
 
-model adjustments required
 
which may significantly
affect ECL. The models
 
are governed by UBS AG’s model
 
validation controls and approved
 
by the GMGC. The post-model adjustments
 
are approved by the
ECL Management Forum and endorsed
 
by the GMGC.
A sensitivity analysis covering
 
key macroeconomic variables, scenario
 
weights and SICR trigger points on ECL measurement
 
is provided in Note 19f
.
 
›
 
Refer to Note 19
 
for more information
h. Restructured and
 
modified financial assets
When payment default is expected,
 
or where default has already occurred,
 
UBS AG may grant concessions to borrowers
in financial difficulties
 
that it would not
 
consider in the normal
 
course of its business,
 
such as preferential
 
interest rates,
extension of maturity,
 
modifying the schedule of repayments,
 
debt / equity swap, subordination,
 
etc.
 
›
 
Refer to the “Risk
 
management and
 
control” section of
 
this report for more
 
information
Modifications result in an alteration of
 
future contractual cash flows and can
 
occur within UBS AG’s normal risk
 
tolerance
or as part of a
 
credit restructuring where
 
a counterparty
 
is in financial difficulties.
 
The restructuring or
 
modification of a
financial asset
 
could
 
lead
 
to
 
a
 
substantial change
 
in
 
the terms
 
and
 
conditions,
 
resulting
 
in
 
the
 
original
 
financial asset
being
 
derecognized
 
and
 
a
 
new
 
financial
 
asset
 
being
 
recognized.
 
Where
 
the
 
modification
 
does
 
not
 
result
 
in
 
a
derecognition, any difference between the modified contractual
 
cash flows discounted at the original EIR and
 
the existing
gross carrying amount of the given financial
 
asset is recognized in the income statement
 
as a modification gain or loss.
 
i. Offsetting
UBS AG presents financial assets and liabilities on its balance sheet net if (i) it
 
has a legally enforceable right to set off the
recognized
 
amounts
 
and
 
(ii) it
 
intends
 
either
 
to
 
settle
 
on
 
a
 
net
 
basis
 
or
 
to
 
realize
 
the
 
asset
 
and
 
settle
 
the
 
liability
simultaneously.
 
Netted
 
positions
 
include,
 
for
 
example,
 
certain
 
derivatives
 
and
 
repurchase
 
and
 
reverse
 
repurchase
transactions with various counterparties,
 
exchanges and
 
clearing houses.
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
390
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
In
 
assessing
 
whether
 
UBS
 
AG
 
intends
 
to
 
either
 
settle
 
on
 
a
 
net
 
basis,
 
or
 
to
 
realize
 
the
 
asset
 
and
 
settle
 
the
 
liability
simultaneously, emphasis
 
is placed on
 
the effectiveness of
 
operational settlement mechanics
 
in eliminating substantially
all credit and liquidity exposure between
 
the counterparties. This condition precludes offsetting
 
on the balance sheet for
substantial amounts of UBS
 
AG’s financial assets and liabilities,
 
even though
 
they may be subject to enforceable netting
arrangements. Repurchase
 
arrangements and
 
securities financing transactions
 
are presented
 
net only to
 
the extent that
the settlement
 
mechanism eliminates,
 
or results
 
in insignificant,
 
credit and
 
liquidity
 
risk, and
 
processes
 
the receivables
and payables in a single
 
settlement process or cycle.
›
 
Refer to Note 21
 
for more information
 
j. Hedge accounting
UBS AG applies hedge accounting
 
requirements of IFRS 9 where
 
the criteria for documentation and
 
hedge effectiveness
are met.
 
If a
 
hedge
 
relationship
 
no longer
 
meets the
 
criteria for
 
hedge
 
accounting, hedge
 
accounting
 
is discontinued.
Voluntary discontinuation
 
of hedge accounting
 
is not permitted under IFRS 9.
Fair value hedges of interest rate risk
 
related to debt instruments and
 
loan assets
The
 
fair value
 
change
 
of
 
the
 
hedged
 
item attributable
 
to
 
a
 
hedged
 
risk is
 
reflected
 
as
 
an
 
adjustment
 
to
 
the
 
carrying
amount
 
of
 
the
 
hedged
 
item and
 
recognized
 
in
 
the
 
income
 
statement
 
along
 
with
 
the
 
change
 
in
 
the
 
fair value
 
of
 
the
hedging instrument.
Fair value hedges of FX risk related to
 
debt instruments
The fair value change of the
 
hedged item attributable to the
 
hedged risk is reflected
 
in the measurement of the hedged
item and
 
recognized
 
in the
 
income statement
 
along
 
with the
 
change
 
in the
 
fair value
 
of the
 
hedging instrument.
 
The
foreign currency basis spread of cross-currency swaps designated as hedging derivatives is excluded from
 
the designation
and
 
accounted
 
for
 
as a
 
cost of
 
hedging
 
with
 
amounts
 
deferred
 
in
Other comprehensive
 
income
 
within
Equity
.
 
These
amounts are released to the
 
income statement over the term
 
of the hedged item.
Discontinuation of fair value hedges
Discontinuations for reasons other
 
than derecognition of the
 
hedged item result in
 
an adjustment to the
 
carrying amount,
which
 
is
 
amortized
 
to
 
the
 
income
 
statement
 
over
 
the
 
remaining
 
life
 
of
 
the
 
hedged
 
item
 
using
 
the
 
effective
 
interest
method. If the hedged item is derecognized,
 
the unamortized fair value adjustment or deferred
 
cost of hedging amount
is recognized immediately in the income
 
statement as part of any derecognition
 
gain or loss.
Cash flow hedges of
 
forecast transactions
Fair value gains or losses associated
 
with the effective portion of derivatives designated as cash flow
 
hedges for cash flow
repricing
 
risk are
 
recognized
 
initially in
Other comprehensive
 
income
within
Equity
 
and
 
reclassified to
Interest income
from financial
 
instruments measured
 
at amortized
 
cost and
 
fair value
 
through other
 
comprehensive income
 
or
Interest
expense
 
from financial
 
instruments
 
measured
 
at
 
amortized
 
cost
 
in
 
the
 
periods
 
when
 
the
 
hedged
 
forecast
 
cash
 
flows
affect profit
 
or loss,
 
including
 
discontinued
 
hedges for which
 
forecast
 
cash flows are
 
expected to
 
occur.
 
If the
 
forecast
transactions
 
are
 
no
 
longer
 
expected
 
to
 
occur,
 
the
 
deferred
 
gains
 
or
 
losses
 
are
 
immediately reclassified
 
to
 
the
 
income
statement.
Hedges of net investments in foreign
 
operations
Gains or losses
 
on the
 
hedging
 
instrument relating
 
to the effective
 
portion of
 
a hedge
 
are recognized
 
directly in
Other
comprehensive income
 
within
Equity,
while any gains
 
or losses
 
relating to the
 
ineffective and
 
/ or undesignated
 
portion
(for example,
 
the interest element
 
of a forward contract)
 
are recognized in the income
 
statement. Upon disposal or
 
partial
disposal of
 
the foreign operation,
 
the cumulative value of
 
any such
 
gains or losses
 
recognized in
Equity
 
associated with
the entity
 
is reclassified to
Other income
.
Interest Rate Benchmark Reform
 
UBS
 
AG
 
continues
 
hedge
 
accounting
 
during
 
the
 
period
 
of
 
uncertainty
 
before
 
existing
 
interest
 
rate
 
benchmarks
 
are
replaced with
 
alternative risk-
 
free interest
 
rates. During
 
this period,
 
UBS AG
 
assumes
 
that the current
 
benchmark rates
will continue
 
to
 
exist, such
 
that forecast
 
transactions
 
are
 
considered
 
highly probable
 
and
 
hedge
 
relationships
 
remain,
with little or no consequential
 
impact on the financial
 
statements. Upon replacement of existing interest rate benchmarks
by alternative risk-free
 
interest rates,
 
UBS AG
 
applies the requirements
 
of
Amendments to IFRS 9
 
,
 
IAS 39, IFRS 7, IFRS 4
and IFRS 16 (Interest Rate Benchmark
 
Reform – Phase 2),
where applicable
.
 
›
 
Refer to Note 25
 
for more information
3)
 
Fee and commission income and
 
expenses
UBS AG earns fee income from the diverse range of
 
services it provides to its clients. Fee income can be divided into two
broad
 
categories:
 
fees
 
earned
 
from
 
services
 
that
 
are
 
provided
 
over
 
a
 
certain
 
period
 
of
 
time, such
 
as
 
management
 
of
clients’
 
assets,
 
custody
 
services
 
and
 
certain
 
advisory
 
services;
 
and
 
fees
 
earned
 
from
 
point-in-time
 
services,
 
such
 
as
underwriting
 
fees,
 
deal-contingent
 
merger
 
and
 
acquisitions
 
fees,
 
and
 
brokerage
 
fees
 
(e.g.,
 
securities
 
and
 
derivatives
execution and
 
clearing). UBS
 
AG recognizes
 
fees earned
 
from PIT
 
services
 
when it
 
has fully
 
provided the
 
service
 
to the
client.
 
Where the contract requires services to be provided over time, income is recognized on a systematic basis over the
life of the agreement.
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
391
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
Consideration
 
received is
 
allocated
 
to
 
the
 
separately identifiable
 
performance
 
obligations
 
in
 
a
 
contract. Owing
 
to
 
the
nature
 
of
 
UBS
 
AG’s
 
business,
 
contracts
 
that
 
include
 
multiple
 
performance
 
obligations
 
are
 
typically
 
those
 
that
 
are
considered to
 
include a series
 
of similar performance
 
obligations fulfilled
 
over time with
 
the same pattern
 
of transfer to
the client, e.g.,
 
management of
 
client assets and
 
custodial services. As a
 
consequence, UBS AG
 
is not required
 
to apply
significant judgment in allocating the
 
consideration received across the various
 
performance obligations.
PIT services
 
are generally
 
for a
 
fixed price
 
or dependent
 
on deal
 
size, e.g.,
 
a fixed number
 
of basis
 
points of
 
trade size,
where the amount of revenue is known when the performance obligation is met. Fixed
 
-over-time fees are recognized on
a straight-line
 
basis over the
 
performance period. Custodial and asset
 
management fees can
 
be variable
 
through reference
to
 
the
 
size
 
of
 
the
 
customer
 
portfolio.
 
However,
 
they
 
are
 
generally
 
billed
 
on
 
a
 
monthly
 
or
 
quarterly
 
basis
 
once
 
the
customer’s
 
portfolio
 
size
 
is
 
known
 
or
 
known
 
with
 
near
 
certainty
 
and
 
therefore
 
also
 
recognized
 
ratably
 
over
 
the
performance
 
period.
 
UBS
 
AG
 
does
 
not
 
recognize
 
performance
 
fees
 
related
 
to
 
management
 
of
 
clients’
 
assets
 
or
 
fees
related to contingencies beyond
 
UBS AG’s control until such uncertainties are
 
resolved.
 
UBS AG’s fees are generally earned from short-term contracts. As a result, UBS AG’s contracts
 
do not include a financing
component
 
or result
 
in the
 
recognition of
 
significant receivables
 
or prepayment
 
assets. Furthermore,
 
due
 
to the
 
short-
term nature of such
 
contracts, UBS AG has not
 
capitalized any material
 
costs to obtain
 
or fulfill a contract
 
or generated
any significant contract assets or liabilities.
UBS AG presents expenses
 
primarily in line with their nature
 
in the income statement,
 
differentiating between expenses
that
 
are
 
directly
 
attributable
 
to
 
the
 
satisfaction
 
of
 
specific
 
performance
 
obligations
 
associated
 
with
 
the
 
generation
 
of
revenues, which are generally presented within
Total revenues
 
as
Fee and commission expense
, and those that are
 
related
to
 
personnel,
 
general
 
and
 
administrative
 
expenses,
 
which
 
are
 
presented
 
within
Operating
 
expenses
.
 
For
 
derivatives
execution
 
and
 
clearing services
 
(where
 
UBS
 
AG acts
 
as an
 
agent),
 
UBS
 
AG only
 
records
 
its specific
 
fees in
 
the income
statement,
 
with
 
fees
 
payable
 
to
 
other
 
parties
 
not
 
recognized
 
as
 
an
 
expense
 
but
 
instead
 
directly
 
offset
 
against
 
the
associated income collected from the given
 
client.
›
 
Refer to Note 4 for
 
more information,
 
including the
 
disaggregation of
 
revenues
4) Share-based and other deferred
 
compensation plans
UBS AG recognizes expenses for deferred compensation awards over the period that the employee is required to provide
service to
 
become entitled
 
to the
 
award.
 
Where the
 
service period
 
is shortened,
 
for example in
 
the case
 
of employees
affected by restructuring programs or mutually agreed termination provisions, recognition
 
of such expense is accelerated
to the
 
termination date.
 
Where no
 
future service
 
is required,
 
such as
 
for employees
 
who are
 
eligible for
 
retirement or
who
 
have
 
met
 
certain
 
age
 
and
 
length-of-service
 
criteria,
 
the
 
services
 
are
 
presumed
 
to
 
have
 
been
 
received
 
and
compensation expense
 
is recognized
 
over the performance
 
year or,
 
in the case
 
of off-cycle awards,
 
immediately on
 
the
grant date.
Share-based compensation plans
UBS Group AG is the grantor of
 
and maintains the obligation to settle share-based compensation plans that are awarded
to employees
 
of UBS
 
AG. As
 
a consequence,
 
UBS
 
AG classifies
 
the awards
 
of UBS
 
Group
 
AG shares
 
as equity-settled
share-based payment transactions.
 
UBS AG recognizes the fair value of awards
 
granted to its employees by reference
 
to
the fair value of UBS Group
 
AG’s equity instruments on
 
the date of grant, taking
 
into account the terms and
 
conditions
inherent in
 
the award, including,
 
where relevant, dividend
 
rights, transfer restrictions
 
in effect beyond
 
the vesting date,
market conditions, and non
 
-vesting conditions.
 
For equity-settled awards,
 
fair value is not
 
remeasured unless
 
the terms of
 
the award are modified
 
such that there
 
is an
incremental
 
increase
 
in
 
value.
 
Expenses
 
are
 
recognized,
 
on
 
a
 
per-tranche
 
basis,
 
over
 
the
 
service
 
period
 
based
 
on
 
an
estimate of
 
the number
 
of instruments
 
expected
 
to vest
 
and
 
are adjusted
 
to reflect
 
the actual
 
outcomes
 
of service
 
or
performance conditions.
 
For equity-settled
 
awards,
 
forfeiture events
 
resulting
 
from a
 
breach
 
of a
 
non-vesting condition
 
(i.e., one
 
that does
 
not
relate to a service or performance condition)
 
do not result in any
 
adjustment to the share-based compensation
 
expense.
For
 
cash-settled
 
share-based
 
awards,
 
fair value
 
is
 
remeasured
 
at
 
each
 
reporting
 
date,
 
so
 
that
 
the
 
cumulative expense
recognized equals the cash distributed.
 
Other deferred compensation plans
Compensation
 
expense
 
for
 
other
 
deferred
 
compensation
 
plans
 
is
 
recognized
 
on
 
a
 
per-tranche
 
or
 
straight-line
 
basis,
depending
 
on the
 
nature of
 
the plan.
 
The amount
 
recognized
 
is measured
 
based on
 
the present
 
value of
 
the amount
expected to be paid under the plan and is remeasured at
 
each reporting date, so that the cumulative expense recognized
equals the cash or the fair value of
 
respective financial instruments distributed.
›
 
Refer to Note 27
 
for more information
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
392
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
5)
 
Post-employment benefit plans
Defined benefit plans
Defined benefit plans specify an amount of benefit that an employee will receive, which usually depends on one or more
factors,
 
such as
 
age, years
 
of service and
 
compensation.
 
The defined
 
benefit liability
 
recognized in
 
the balance sheet
 
is
the present value of the
 
defined
 
benefit obligation,
 
measured using the projected
 
unit credit method,
 
less the fair value
of
 
the
 
plan’s
 
assets
 
at
 
the balance
 
sheet
 
date,
 
with
 
changes
 
resulting
 
from
 
remeasurements
 
recorded
 
immediately
 
in
Other comprehensive income
. If the fair value of the plan’s
 
assets is higher than the present value of the defined
 
benefit
obligation, the recognition
 
of the resulting net asset
 
is limited to the present
 
value of economic benefits available
 
in the
form of
 
refunds from
 
the plan
 
or reductions
 
in future
 
contributions
 
to the plan.
 
Calculation o
 
f
 
the net
 
defined benefit
obligation or
 
asset takes
 
into account
 
the specific
 
features of
 
each plan,
 
including risk
 
sharing between
 
employee and
employer, and
 
is calculated periodically by independent
 
qualified actuaries.
 
Critical accounting estimates and judgments
The net defined benefit liability or asset at the balance sheet date and the related personnel expense depend on the expected future benefits to be provided,
determined
 
using
 
a
 
number
 
of
 
economic
 
and
 
demographic
 
assumptions.
 
A
 
range
 
of
 
assumptions
 
could
 
be
 
applied,
 
and
 
different
 
assumptions
 
could
significantly alter
 
the defined benefit
 
liability or
 
asset and
 
pension expense
 
recognized. The
 
most significant
 
assumptions include
 
life expectancy,
 
discount
rate,
 
expected salary
 
increases,
 
pension
 
increases
 
and interest
 
credits on
 
retirement
 
savings account
 
balances. Sensitivity
 
analysis for
 
reasonable possible
movements in each significant assumption
 
for UBS AG‘s post-employment obligations is
 
provided in Note 26.
›
 
Refer to Note 26
 
for more information
Defined contribution plans
A
 
defined
 
contribution
 
plan
 
pays
 
fixed
 
contributions
 
into
 
a
 
separate
 
entity
 
from
 
which
 
post-employment
 
and
 
other
benefits
 
are
 
paid.
 
UBS
 
AG
 
has
 
no
 
legal
 
or
 
constructive
 
obligation
 
to
 
pay
 
further
 
amounts
 
if
 
the
 
plan
 
does
 
not
 
hold
sufficient
 
assets
 
to
 
pay
 
employees
 
the
 
benefits
 
relating
 
to
 
employee
 
service
 
in
 
the
 
current
 
and
 
prior
 
periods.
Compensation
 
expense is recognized
 
when the employees
 
have rendered
 
services in exchange
 
for contributions.
 
This is
generally in the year of contribution. Prepaid contributions are
 
recognized as an asset to the extent that a cash refund or
a reduction in future payments
 
is available.
6)
 
Income taxes
UBS AG
 
is subject to
 
the income tax
 
laws of Switzerland
 
and those
 
of the non
 
-Swiss jurisdictions in
 
which UBS
 
AG has
business operations.
UBS AG’s provision for income taxes is composed of current and deferred
 
taxes. Current income taxes represent taxes to
be paid or
 
refunded for the current period or
 
previous periods.
 
Deferred tax
 
assets (DTAs) and
 
deferred tax liabilities
 
(DTLs) are recognized
 
for temporary differences
 
between the carrying
amounts
 
and
 
tax bases
 
of
 
assets
 
and
 
liabilities
 
that will
 
result
 
in deductible
 
or
 
taxable amounts
 
,
 
respectively
 
in
 
future
periods.
 
DTAs may also arise from
 
other sources, including
 
unused tax losses and
 
unused tax credits. DTAs and
 
DTLs are
measured
 
using
 
the applicable
 
tax
 
rates and
 
laws
 
that have
 
been
 
enacted or
 
substantively enacted
 
by
 
the end
 
of the
reporting period and
 
that will be in effect when such differences
 
are expected to reverse.
DTAs are recognized
 
only to the
 
extent it is probable
 
that sufficient taxable profits
 
will be
 
available against which
 
these
differences can
 
be used
 
.
 
When an
 
entity or
 
tax group
 
has a
 
history of
 
recent
 
losses,
 
DTAs
 
are only
 
recognized
 
to the
extent there are sufficient
 
taxable temporary differences or there is
 
convincing other evidence
 
that sufficient taxable profit
will be available against which the
 
unused tax losses can be
 
utilized.
Deferred and current tax assets
 
and liabilities are offset when:
 
(i) they arise in the
 
same tax reporting group;
 
(ii) they relate
to the same
 
tax authority;
 
(iii) the legal
 
right to offset
 
exists;
 
and (iv) with
 
respect to
 
current taxes
 
they are
 
intended to
be settled net or realized simultaneously.
Current and deferred taxes are recognized
 
as income tax benefit or expense in the income statement, except
 
for current
and deferred taxes recognized in relation
 
to: (i) the acquisition of a subsidiary
 
(for which such amounts
 
would affect the
amount
 
of goodwill
 
arising from
 
the acquisition);
 
(ii) gains
 
and losses
 
on
 
the sale
 
of treasury
 
shares
 
(for which
 
the tax
effects
 
are
 
recognized
 
directly
 
in
Equity
);
 
(iii) unrealized
 
gains
 
or
 
losses
 
on
 
financial
 
instruments
 
that
 
are
 
classified
 
at
FVOCI; (iv) changes in fair value of
 
derivative instruments designated as cash flow hedges; (v) remeasurements of defined
benefit plans;
 
or (vi) certain
 
foreign currency
 
translations of
 
foreign operations.
 
Amounts relating
 
to points
 
(iii) through
(vi) above are recognized in
Other comprehensive income
 
within
Equity
.
UBS AG
 
reflects the potential
 
effect of uncertain
 
tax positions
 
for which acceptance
 
by the relevant
 
tax authority is
 
not
considered probable by adjusting current or deferred
 
taxes, as applicable,
 
using either the most likely
 
amount or expected
value methods,
 
depending on
 
which method
 
is deemed
 
a better predictor
 
of the
 
basis on
 
which, and
 
extent to which,
the uncertainty will be resolved.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
393
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
Critical accounting estimates and
 
judgments
Tax laws are complex, and judgment and interpretations about the
 
application of such laws
 
are required when accounting for income taxes. UBS
 
AG considers
the
 
performance
 
of its
 
businesses and
 
the accuracy
 
of historical
 
forecasts and
 
other factor
 
s
 
when evaluating
 
the recoverability
 
of its
 
DTAs,
 
including
 
the
remaining tax
 
loss carry-forward
 
period, and its assessment
 
of expected
 
future taxable profits
 
in the forecast
 
period used
 
for recognizing
 
DTAs. Estimating
future profitability and
 
business plan forecasts is inherently
 
subjective and is particularly sensitive to future
 
economic, market and other conditions.
 
Forecasts are
 
reviewed
 
annually,
 
but adjustments
 
may be
 
made at
 
other times,
 
if required.
 
If recent
 
losses have
 
been incurred
 
,
 
convincing evidence
 
is
required to prove there
 
is sufficient future profitability given that the value of UBS AG’s DTAs
 
may be affected, with effects primarily recognized through
 
the
income statement.
In addition, judgment is required to assess the expected value of uncertain tax positions and the related probabilities,
 
including interpretation of tax laws,
the resolution of any income tax-related
 
appeals and litigation.
 
›
 
Refer to Note 8 for
 
more information
 
7)
 
Property, equipment and software
Property,
 
equipment and
 
software
 
is measured
 
at
 
cost less
 
accumulated dep
 
reciation
 
and impairment
 
losses. Software
development costs are capitalized
 
only when the costs
 
can be measured reliably
 
and it is probable that
 
future economic
benefits
 
will
 
arise.
 
Depreciation
 
of
 
property,
 
equipment
 
and
 
software
 
begins
 
when
 
they
 
are
 
available
 
for
 
use
 
and
 
is
calculated on a straight line basis over an
 
asset’s estimated useful life.
 
Property,
 
equipment
 
and
 
software
 
are
 
generally
 
tested
 
for
 
impairment
 
at
 
the
 
appropriate
 
cash-generating
 
unit
 
level,
alongside goodwill and intangible assets as described in item 8 in this
 
Note. An impairment charge is recognized for such
assets
 
if
 
the
 
recoverable
 
amount
 
is
 
below
 
its
 
carrying
 
amount.
 
The
 
recoverable
 
amounts
 
of
 
such
 
assets,
 
other
 
than
property that has
 
a market price, are
 
generally determined
 
using a
 
replacement cost approach
 
that reflects the amount
that would be currently required by a market participant to replace the service capacity
 
of the asset. If such assets are no
longer used, they are tested
 
individually for impairment.
›
 
Refer to Note 11
 
for more information
8) Goodwill
Goodwill
 
represents
 
the
 
excess of
 
the
 
consideration over
 
the
 
fair
 
value
 
of
 
identifiable assets,
 
liabilities and
 
contingent
liabilities acquired that arises in a
 
business combination.
 
Goodwill is not amortized, but is assessed for
 
impairment at the
end
 
of
 
each reporting
 
period,
 
or when
 
indicators of
 
impairment exist.
 
UBS
 
AG tests
 
goodwill for
 
impairment annually,
irrespective of whether
 
there is any indication
 
of impairment.
 
An impairment charge is recognized in the income
 
statement if the carrying
 
amount exceeds the recoverable amount
 
of a
cash-generating
 
unit.
 
 
Critical accounting estimates and judgments
UBS AG‘s methodology for goodwill impairment
 
testing is based on a model that is most sensitive to the following key assumptions: (
 
i) forecasts of earnings
available to shareholders
 
in years one to three; (ii) changes in
 
the discount rates; and (iii) changes in
 
the long-term growth rate.
 
Earnings available to shareholders
 
are estimated on
 
the basis of forecast
 
results, which are part
 
of the business plan approved
 
by the BoD. The discount
rates
 
and growth
 
rates are
 
determined using
 
external information,
 
and also
 
considering inputs
 
from both
 
internal and
 
external analysts
 
and the
 
view of
management.
 
The key assumptions
 
used to determine
 
the recoverable amounts
 
of each cash-generating
 
unit are tested
 
for sensitivity by applying
 
reasonably possible
changes to those assumptions.
 
›
 
Refer to Notes 2 and
 
12 for more information
 
9)
 
Provisions and contingent liabilities
Provisions are liabilities
 
of uncertain timing or
 
amount, and are
 
generally recognized
 
in accordance with
 
IAS 37,
Provisions,
Contingent Liabilities and Contingent
 
Assets
, when:
 
(i) UBS AG has a present
 
obligation
 
as a result of a past
 
event; (ii) it
is probable that an outflow
 
of resources will be
 
required to settle the
 
obligation; and (iii) a reliable estimate
 
of the amount
of the obligation can be
 
made.
 
The
 
majority
 
of
 
UBS
 
AG’s
 
provisions
 
relate
 
to
 
litigation,
 
regulatory
 
and
 
similar
 
matters,
 
restructuring,
 
and
 
employee
benefits.
 
Restructuring
 
provisions
 
are
 
generally
 
recognized
 
as
 
a
 
consequence
 
of
 
management
 
agreeing
 
to
 
materially
change the scope of the business
 
or the manner in which it
 
is conducted, including changes
 
in management structures.
Provisions
 
for
 
employee
 
benefits
 
relate
 
mainly
 
to
 
service
 
anniversaries
 
and
 
sabbatical
 
leave,
 
and
 
are
 
recognized
 
in
accordance with measurement principles set out in item 4
 
in this Note. In addition, UBS AG presents expected credit loss
allowances within
Provisions
 
if they relate
 
to a loan
 
commitment,
 
financial guarantee
 
contract or a
 
revolving revocable
credit line.
IAS 37 provisions are measured
 
considering the best
 
estimate
 
of the consideration
 
required to settle
 
the present obligation
at the balance sheet date.
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
394
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
When conditions required to recognize a provision
 
are not met, a contingent liability is disclosed, unless the likelihood of
an outflow
 
of resources
 
is remote.
 
Contingent liabilities
 
are also
 
disclosed
 
for possible
 
obligations
 
that arise
 
from past
events, the
 
existence of
 
which will
 
be confirmed
 
only by
 
uncertain future
 
events not
 
wholly within
 
the control
 
of UBS
AG.
 
Critical accounting estimates and judgments
Recognition of provisions
 
often involves significant
 
judgment in assessing
 
the existence of
 
an obligation that
 
results from
 
past events and in
 
estimating the
probability,
 
timing and
 
amount of any
 
outflows of
 
resources.
 
This is particularly
 
the case
 
for litigation,
 
regulatory and
 
similar matters,
 
which, due
 
to their
nature, are
 
subject to many uncertainties,
 
making their outcome difficult to
 
predict.
 
The amount
 
of any
 
provision recognized
 
is sensitive
 
to the assumptions
 
used and
 
there could
 
be a wide
 
range of possible
 
outcomes for
 
any particular
matter.
Management regularly reviews
 
all the available information
 
regarding such matters,
 
including legal advice, to assess whether
 
the recognition criteria
 
for
provisions have been satisfied and
 
to determine the timing and amount of any potential
 
outflows.
›
 
Refer to Note 17
 
for more information
10)
 
Foreign currency translation
Transactions
 
denominated in a foreign
 
currency are translated into the
 
functional currency of the reporting
 
entity at the
spot
 
exchange rate
 
on
 
the date
 
of
 
the transaction.
 
At the
 
balance
 
sheet date,
 
all monetary
 
assets,
 
including
 
those
 
at
FVOCI,
 
and
 
monetary liabilities
 
denominated
 
in
 
foreign
 
currency are
 
translated
 
into
 
the
 
functional
 
currency using
 
the
closing exchange rate. Translation
 
differences are
 
reported in
Other net income
 
from financial instruments
 
measured at
fair value through profit or loss
.
Non-monetary items measured
 
at historical cost are translated at the exchange
 
rate on the date of the
 
transaction.
 
Upon consolidation,
 
assets and
 
liabilities
 
of foreign
 
operations
 
are translated
 
into
 
US dollars,
 
UBS
 
AG’s presentation
 
currency,
at the closing exchange rate on the balance sheet date, and income and expense items and other comprehensive income
are translated at
 
the average
 
rate for the
 
period. The resulting
 
foreign currency translation differences are
 
recognized in
Equity
 
and reclassified to the income
 
statement when UBS AG disposes
 
of, partially or in its entirety, the
 
foreign operation
and UBS AG no longer controls
 
the foreign operation.
Share
 
capital issued,
 
share premium and treasury
 
shares held are translated
 
at the historic average
 
rate, with the
 
difference
between the historic average
 
rate and the
 
spot rate realized upon
 
repayment of share
 
capital or disposal of treasury
 
shares
reported as
Share premium.
 
Cumulative
 
amounts
 
recognized in
Other
 
comprehensive
 
income
 
in respect
 
of cash
 
flow hedges
and financial assets measured
 
at FVOCI are translated
 
at the closing exchange rate as
 
of the balance sheet dates, with
 
any
translation effects
 
adjusted through
Retained earnings
.
›
 
Refer to Note 32
 
for more information
11)
 
Contracts on UBS Group AG shares
Contracts involving UBS Group
 
AG shares that require net
 
cash settlement, or provide
 
the counterparty or
 
UBS AG with
a settlement option that includes a
 
choice of settling net in cash, are
 
classified as derivatives held
 
for trading.
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
395
 
 
Note 1
 
Summary of material accounting policies
 
(continued)
 
b) Changes in accounting policies, comparability
 
and other adjustments
 
Changes to the presentation
 
of the financial statements
During 2022, UBS AG
 
made several
 
changes to simplify
 
the presentation of
 
the income statement
 
alongside other primary
financial statements and disclosure notes, and to
 
align them with management information. In
 
particular,
Total operating
income
 
has been renamed
Total revenues
 
and excludes
Credit loss expense / (release)
, which is now separately presented
below
Total revenues
.
Reclassification of a portfolio from
Financial assets measured at fair value
 
through other comprehensive income
 
to
Other financial assets measured at amortized
 
cost
Effective from 1 April
 
2022, UBS
 
AG has reclassified a portfolio of financial
 
assets from
Financial assets measured at
 
fair
value
 
through
 
other
 
comprehensive
 
income
 
with
 
a
 
fair
 
value
 
of
 
USD
6.9
bn
 
(the
 
Portfolio)
 
to
Other
 
financial
 
assets
measured at
 
amortized cost
, in
 
line with
 
the principles
 
in IFRS
 
9,
Financial Instruments
, which
 
require
 
a reclassification
when an entity changes its business
 
model for
 
managing financial assets.
The Portfolio’s cumulative fair value losses of USD
449
m pre-tax and USD
333
m post-tax, previously recognized in
Other
comprehensive
 
income
,
 
have
 
been
 
removed
 
from
 
equity
 
and
 
adjusted
 
against
 
the
 
value
 
of
 
the
 
assets
 
on
 
the
reclassification date, so
 
that the Portfolio is
 
measured as if the
 
assets had always been
 
classified at amortized cost,
 
with
a value of USD
7.4
bn as on 1 April 2022. The reclassification had
 
no effect on the income statement.
 
The reclassified Portfolio is made
 
up of high-quality liquid assets, primarily US government treasuries and US government
agency mortgage-backed securities, held
 
and separately managed by
 
UBS Bank USA (BUSA).
The accounting reclassification has
 
arisen as
 
a direct result
 
of the transformation of
 
UBS AG’s Global
 
Wealth Management
Americas
 
business,
 
which
 
has
 
significantly
 
impacted
 
BUSA.
 
This
 
includes
 
initiatives
 
approved
 
by
 
the
 
Group
 
Executive
Board to significantly grow
 
and extend the business,
 
as disclosed on
 
1 February 2022 during
 
UBS’s fourth quarter 2021
earnings presentation.
 
Over the two
 
years preceding
 
the reclassification
 
date,
 
BUSA’s deposit
 
base grew
 
by more than
100% generating substantial cash
 
balances, with a number
 
of new products being
 
launched, including new deposit
 
types
that are longer in duration,
 
additional lending and a broader
 
range of customer segments targeted.
Following the commencement of these activities
 
and the announcement
 
made in the first quarter of 2022,
 
the Portfolio
is no longer held in a business model to collect the contractual cash flows and sell the assets, but is instead solely held to
collect the contractual
 
cash flows
 
until the assets
 
mature, requiring
 
a reclassification
 
of the Portfolio
 
in line
 
with IFRS
 
9
with effect from 1 April 2022.
The fair
 
value of
 
the Portfolio
 
as on
 
31 December 2022
 
was USD
5.8
bn. A
 
pre-tax fair
 
value
 
loss of
 
USD
981
m would
have been recognized in
Other comprehensive income
 
during 2022
 
if the Portfolio had not been
 
reclassified.
›
 
Refer to the Statement
 
of changes in equity
 
and Note 20
 
for more information
 
about the effects
 
from the reclassification
 
of the
Portfolio
Accounting for obligations to
 
safeguard crypto-assets an entity holds
 
for platform users (SAB 121)
In
 
March
 
2022,
 
the
 
US
 
Security
 
and
 
Exchange
 
Commission
 
(the
 
SEC)
 
issued
 
Staff
 
Accounting
 
Bulletin
 
(SAB)
 
121,
“Accounting
 
for obligations
 
to safeguard
 
crypto-assets an
 
entity holds
 
for platform
 
users.”
 
SAB
 
121 adds
 
interpretive
guidance requiring SEC
 
registrants, including foreign
 
private issuers
 
that apply IFRS,
 
to recognize a
 
liability on
 
their balance
sheets
 
to
 
reflect
 
the
 
obligation
 
to
 
safeguard
 
any
 
digital
 
asset
 
that
 
is
 
issued
 
or
 
transferred
 
using
 
distributed
 
ledger
 
or
blockchain technology and
 
held for their platform users, along
 
with a corresponding asset. The
 
guidance is effective for
UBS AG
 
for annual reporting
 
from 2022 onwards.
 
Amounts that would
 
be recognized as
 
liabilities, with corresponding
assets, under this guidance
 
are not material to UBS AG.
 
c)
 
International Financial Reporting
 
Standards and Interpretati
 
ons to be adopted in 202
 
3
 
and later and other
changes
IFRS 17,
 
Insurance Contracts
In May 2017,
 
the IASB issued
 
IFRS 17,
Insurance Contracts
, which
 
sets out
 
the accounting requirements
 
for contractual
rights and obligations that arise from insurance contracts issued
 
and reinsurance contracts held. IFRS 17 is effective from
1 January 2023.
 
Adoption on
 
1 January
 
2023
 
will have
 
no effect
 
on
 
UBS
 
AG’s financial
 
statements.
 
UBS
 
AG does
 
not
provide insurance services in any
 
market.
Other amendments to IFRS
The IASB
 
has issued
 
a number
 
of minor
 
amendments to
 
IFRS,
 
effective from
 
1 January
 
2023
 
and
 
in later
 
years. These
amendments are not expected to
 
have a significant effect on
 
UBS AG when they are adopted.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
396
 
 
Note 2a
 
Segment reporting
UBS
 
AG’s
 
businesses
 
are
 
organized
 
globally
 
into
 
four
 
business
 
divisions:
 
Global
 
Wealth
 
Management,
 
Personal
 
&
Corporate
 
Banking,
 
Asset
 
Management
 
and
 
the
 
Investment Bank.
 
All
 
four business
 
divisions
 
are
 
supported by
 
Group
Functions and qualify as reportable segments for the purpose of
 
segment reporting. Together
 
with Group Functions, the
four business divisions
 
reflect the management structure
 
of UBS AG.
–
 
Global Wealth
 
Management
 
provides
 
financial services,
 
advice and
 
solutions to
 
private wealth
 
clients. Its
 
offering
ranges from
 
investment management
 
to estate planning
 
and corporate finance
 
advice, in
 
addition to
 
specific wealth
management and banking
 
products and services.
 
–
 
Personal
 
&
 
Corporate
 
Banking
 
serves
 
its
 
private,
 
corporate,
 
and
 
institutional
 
clients’
 
needs,
 
from
 
banking
 
to
retirement, financing,
 
investments and
 
strategic transactions
 
,
 
in Switzerland,
 
through its
 
branch network
 
and digital
channels.
–
 
Asset Management
 
is a global,
 
large-scale and diversified
 
asset manager. It
 
offers investment
 
capabilities and styles
across
 
all
 
major
 
traditional
 
and
 
alternative
 
asset
 
classes,
 
as
 
well
 
as
 
advisory
 
support
 
to
 
institutions,
 
wholesale
intermediaries and wealth management
 
clients.
 
–
 
The
Investment Bank
 
provides a range of services
 
to institutional, corporate and wealth management clients globally,
to
 
help
 
them
 
raise
 
capital,
 
grow
 
their
 
businesses,
 
invest
 
and
 
manage
 
risks.
 
Its
 
offering
 
includes
 
research,
 
advisory
services, facilitating clients raising
 
debt and equity from the public
 
and private markets
 
and capital markets,
 
cash and
derivatives trading across equities and
 
fixed income,
 
and financing.
 
–
 
Group
 
Functions
 
is
 
made
 
up
 
of
 
the
 
following
 
major
 
areas:
 
Group
 
Services
 
(which
 
consists
 
of
 
Chief
 
Digital
 
and
Information
 
Office,
 
Communications
 
&
 
Branding,
 
Compliance,
 
Finance,
 
Group
 
Sustainability
 
and
 
Impact,
 
Human
Resources,
 
Group
 
Legal,
 
Regulatory
 
&
 
Governance,
 
and
 
Risk
 
Control),
 
Group
 
Treasury
 
and
 
Non-core
 
and
 
Legacy
Portfolio.
 
Financial
 
information
 
about
 
the
 
four
 
business
 
divisions
 
and
 
Group
 
Functions
 
is
 
presented
 
separately
 
in
 
internal
management
 
reports
 
to
 
the
 
Executive
 
Board,
 
which
 
is
 
considered
 
the
 
“chief
 
operating
 
decision
 
maker”
 
pursuant
 
to
IFRS 8,
Operating Segments
.
UBS
 
AG’s
 
internal
 
accounting
 
policies,
 
which
 
include
 
management
 
accounting
 
policies
 
and
 
service
 
level
 
agreements,
determine
 
the
 
revenues
 
and
 
expenses
 
directly
 
attributable
 
to
 
each
 
reportable
 
segment.
 
Transactions
 
between
 
the
reportable segments are carried out
 
at internally agreed rates and are reflected in
 
the operating results of
 
the reportable
segments.
 
Revenue-sharing
 
agreements
 
are
 
used
 
to
 
allocate
 
external
 
client
 
revenues
 
to
 
reportable
 
segments
 
where
several
 
reportable
 
segments
 
are
 
involved
 
in
 
the
 
value
 
creation
 
chain.
 
Total
 
intersegment
 
revenues
 
for
 
UBS
 
AG
 
are
immaterial, as the majority of
 
the revenues are allocated across
 
the segments by means
 
of revenue-sharing agreements.
Interest income earned
 
from managing
 
UBS AG’s
 
consolidated equity is
 
allocated to
 
the reportable
 
segments based
 
on
average attributed equity and currency composition. Assets and liabilities of the reportable segments are funded through
and invested with Group
 
Functions, and the net interest margin is reflected in
 
the results of each reportable
 
segment.
Segment
 
assets
 
are
 
based
 
on
 
a
 
third-party
 
view
 
and
 
do
 
not
 
include
 
intercompany
 
balances.
 
This
 
view
 
is
 
in
 
line
 
with
internal reporting to management. If one operating segment is involved in an external transaction together with another
operating segment
 
or Group Functions,
 
additional criteria are considered
 
to determine the
 
segment that will
 
report the
associated
 
assets.
 
This
 
will
 
include
 
a
 
consideration
 
of
 
which
 
segment’s
 
business
 
needs
 
are
 
being
 
addressed
 
by
 
the
transaction
 
and
 
which
 
segment
 
is
 
providing
 
the
 
funding
 
and
 
/
 
or
 
resources.
 
Allocation
 
of
 
liabilities
 
follows
 
the
 
same
principles.
Non-current
 
assets disclosed
 
for segment
 
reporting
 
purposes
 
represent
 
assets that
 
are expected
 
to be
 
recovered
 
more
than
 
12
 
months
 
after
 
the
 
reporting
 
date,
 
excluding
 
financial
 
instruments,
 
deferred
 
tax
 
assets
 
and
 
post-employment
benefits.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
397
 
 
Note 2a
 
Segment reporting (continued)
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Group
 
Functions
UBS AG
For the year ended 31 December
 
2022
Net interest income
5,274
2,192
(19)
(241)
(688)
6,517
Non-interest income
13,689
2,113
2,980
1
8,958
659
28,398
Total revenues
18,963
4,304
2,961
8,717
(30)
34,915
Credit loss expense / (release)
0
39
0
(12)
3
29
Operating expenses
14,069
2,475
1,565
6,890
928
25,927
Operating profit / (loss) before
 
tax
4,894
1,790
1,396
1,839
(960)
8,960
Tax expense / (benefit)
1,844
Net profit / (loss)
7,116
Additional information
Total assets
388,624
235,330
16,971
391,495
73,016
1,105,436
Additions to non-current assets
42
13
1
33
1,773
1,862
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Group
Functions
UBS AG
For the year ended 31 December
 
2021
Net interest income
4,244
2,120
(15)
481
(226)
6,605
Non-interest income
15,175
2,144
2,632
8,978
294
29,222
Total revenues
19,419
4,264
2,617
9,459
68
35,828
Credit loss expense / (release)
(29)
(86)
1
(34)
0
(148)
Operating expenses
14,743
2,623
1,593
6,902
1,151
27,012
Operating profit / (loss) before
 
tax
4,706
1,726
1,023
2,592
(1,083)
8,964
Tax expense / (benefit)
1,903
Net profit / (loss)
7,061
Additional information
Total assets
2
395,235
225,425
25,202
346,641
123,641
1,116,145
Additions to non-current assets
56
16
1
30
1,689
1,791
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Group
Functions
UBS AG
For the year ended 31 December
 
2020
Net interest income
4,027
2,049
(17)
284
(555)
5,788
Non-interest income
3
13,107
1,859
2,993
9,224
504
27,686
Total revenues
17,134
3,908
2,975
9,508
(52)
33,474
Credit loss expense / (release)
88
257
2
305
42
695
Operating expenses
13,080
2,390
1,520
6,762
1,329
25,081
Operating profit / (loss) before
 
tax
3,965
1,261
1,454
2,441
(1,423)
7,699
Tax expense / (benefit)
1,488
Net profit / (loss)
6,211
Additional information
Total assets
367,714
231,710
28,266
369,778
127,858
1,125,327
Additions to non-current assets
5
12
385
150
1,971
2,524
1 Includes an USD
848
m gain in Asset Management
 
related to the sale
 
of UBS AG’s
 
shareholding in Mitsubishi
 
Corp.-UBS Realty
 
Inc.
 
2 During 2022,
 
UBS AG refined the
 
methodology applied to
 
allocate balance
sheet resources from Group Functions to the business
 
divisions, with prospective
 
effect. If the new methodology had been applied as of 31
 
December 2021, balance sheet assets allocated to
 
business divisions would
have been USD
26
bn higher,
 
of which USD
14
bn related to the
 
Investment Bank.
 
3 Includes a
 
USD
631
m net gain on
 
the sale of a
 
majority stake in
 
Fondcenter AG
 
(now Clearstream
 
Fund Centre AG),
 
of which
USD
571
m was recognized in Asset
 
Management and USD
60
m was recognized in Global
 
Wealth Management.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
398
 
 
Note 2b
 
Segment reporting by geographic location
The
 
operating
 
regions
 
shown
 
in
 
the
 
table
 
below
 
correspond
 
to
 
the
 
regional
 
management
 
structure
 
of
 
UBS
 
AG.
 
The
allocation of total revenues
 
to these regions reflects, and
 
is consistent with, the basis
 
on which the business
 
is managed
and its
 
performance is
 
evaluated. These
 
allocations
 
involve assumptions
 
and judgments
 
that management
 
considers to
be reasonable, and
 
may be refined to reflect
 
changes in estimates
 
or management
 
structure. The
 
main principles of the
allocation methodology are
 
that client revenues are
 
attributed to the
 
domicile of the
 
given client and
 
trading and portfolio
management revenues
 
are attributed
 
to the
 
country where
 
the
 
risk is
 
managed.
 
This revenue
 
attribution
 
is
 
consistent
with the mandate of the regional Presidents. Certain revenues,
 
such as those related to Non-core and Legacy Portfolio in
Group Functions, are
 
managed at a Group level. These revenues
 
are included in the
Global
 
line.
The geographic analysis of non-current
 
assets is based on
 
the location of
 
the entity
 
in which the given assets
 
are recorded.
 
For the year ended 31 December
 
2022
Total revenues
1
Total non-current assets
USD bn
Share %
USD bn
Share %
 
Americas
2
13.8
40
9.0
48
Asia Pacific
5.6
16
1.5
8
Europe, Middle East and Africa (excluding
 
Switzerland)
7.0
20
2.6
14
Switzerland
7.7
22
5.6
30
Global
0.8
2
0.0
0
Total
34.9
100
18.7
100
For the year ended 31 December
 
2021
Total revenues
1
Total non-current assets
USD bn
Share %
USD bn
Share %
 
Americas
2
14.5
40
9.0
47
Asia Pacific
6.5
18
1.4
7
Europe, Middle East and Africa (excluding
 
Switzerland)
7.0
20
2.6
13
Switzerland
7.8
22
6.3
33
Global
0.1
0
0.0
0
Total
35.8
100
19.3
100
For the year ended 31 December
 
2020
Total revenues
1
Total non-current assets
USD bn
Share %
USD bn
Share %
 
Americas
2
13.2
39
9.0
45
Asia Pacific
6.1
18
1.4
7
Europe, Middle East and Africa (excluding
 
Switzerland)
6.5
20
2.7
14
Switzerland
7.1
21
6.9
34
Global
0.5
2
0.0
0
Total
33.5
100
20.0
100
1 During 2022, UBS AG changed
 
the presentation of its Income
 
statement. Total operating
 
income was renamed
 
Total revenues and
 
excludes Credit loss
 
expense / (release). Note 2b, including
 
prior-period
information, has been updated
 
to reflect the new presentation
 
structure, with the disclosure
 
of Total revenues
 
instead of Total operating
 
income. Refer to
 
Note 1b for more information.
 
2 Predominantly related
 
to
the USA.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
399
 
Income statement notes
Note 3
 
Net interest
 
income and other net
 
income from financial
 
instruments measured
 
at fair value through
profit or loss
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Net interest income from financial instruments measured
 
at fair value through profit or
 
loss and other
1,410
1,437
1,305
Other net income from financial instruments measured
 
at fair value through profit or
 
loss
7,493
5,844
6,930
of which: net gains / (losses) from financial liabilities designated
 
at fair value
1
17,036
(6,457)
1,625
Total net income from
 
financial instruments measured at fair value
 
through profit or loss and other
8,903
7,281
8,235
Net interest income
Interest income from loans and deposits
2
9,634
6,489
6,696
Interest income from securities financing transactions
 
measured at amortized cost
3
1,378
513
862
Interest income from other financial instruments measured
 
at amortized cost
545
284
335
Interest income from debt instruments measured at fair
 
value through other comprehensive
 
income
74
115
101
Interest income from derivative instruments designated as
 
cash flow hedges
 
173
1,133
822
Total interest income
 
from financial instruments measured at
 
amortized cost and fair value through
 
other comprehensive income
11,803
8,534
8,816
Interest expense on loans and deposits
4
4,488
1,655
2,440
Interest expense on securities financing transactions
 
measured at amortized cost
5
1,089
1,102
870
Interest expense on debt issued
1,031
512
918
Interest expense on lease liabilities
88
98
105
Total interest expense
 
from financial instruments measured at
 
amortized cost
6,696
3,366
4,333
Total net interest income
 
from financial instruments measured at amortized
 
cost and fair value through
 
other comprehensive income
5,108
5,168
4,483
Total net interest income
 
from financial instruments measured at
 
fair value through profit or loss and other
1,410
1,437
1,305
Total net interest income
6,517
6,605
5,788
1 Excludes fair value changes of hedges related to financial liabilities designated at fair value and foreign currency translation effects arising from translating
 
foreign currency transactions into the respective functional
currency,
 
both of which
 
are reported
 
within Other
 
net income
 
from financial
 
instruments
 
measured at
 
fair value
 
through
 
profit or
 
loss. 2022
 
included
 
net gains
 
of USD
4,112
m (net
 
losses of
 
USD
2,068
m and
USD
72
m in 2021 and 2020, respectively), driven by financial liabilities related to unit-linked investment contracts, which are designated at fair value through profit or loss. This was offset by net losses of USD
4,112
m
(net gains of USD
2,068
m and USD
72
m in 2021 and
 
2020, respectively),
 
related to financial
 
assets for unit-linked
 
investment contracts
 
that are mandatorily
 
measured at fair
 
value through
 
profit or loss not
 
held
for trading.
 
2 Consists
 
of interest income
 
from cash
 
and balances
 
at central
 
banks, loans
 
and advances
 
to banks
 
and custom
 
ers, and
 
cash collateral
 
receivables on
 
derivative instruments,
 
as well
 
as negative
interest on amounts due to banks, customer deposits, and cash collateral payables on derivative instruments.
 
3 Includes negative interest, including fees,
 
on payables from securities financing transactions measured
at amortized cost.
 
4 Consists of interest expense
 
on amounts due to banks, cash collateral
 
payables on derivative
 
instruments, customer
 
deposits, and funding from
 
UBS Group AG measured
 
at amortized cost, as
well as negative interest on cash and
 
balances at central
 
banks, loans and advances
 
to banks, and cash
 
collateral receivables
 
on derivative instruments.
 
5 Includes negative interest,
 
including fees,
 
on receivables
from securities financing transactions
 
measured at amortized cost.
 
 
 
Note 4
 
Net fee and commission income
 
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Underwriting fees
633
1,512
1,104
M&A and corporate finance fees
804
1,102
736
Brokerage fees
3,487
4,383
4,132
Investment fund fees
4,942
5,790
5,289
Portfolio management and related services
9,059
9,762
8,009
Other
1,921
1,874
1,712
Total fee and commission
 
income
1
20,846
24,422
20,982
of which: recurring
14,229
15,410
13,010
of which: transaction-based
6,550
8,743
7,512
of which: performance-based
68
269
461
Fee and commission expense
1,823
1,985
1,775
Net fee and commission income
19,023
22,438
19,207
1 For the
 
year ended 31
 
December 2022,
 
reflects third-party
 
fee and commission
 
income of
 
USD
12,990
m for Global
 
Wealth Management,
 
USD
1,657
m for Personal
 
& Corporate
 
Banking, USD
2,840
m for Asset
Management, USD
3,350
m for the Investment Bank and
 
USD
10
m for Group Functions (for
 
the year ended 31 December
 
2021: USD
14,545
m for Global
 
Wealth Management, USD
1,645
m for Personal & Corporate
Banking, USD
3,337
m for
 
Asset Management,
 
USD
4,863
m for
 
the Investment
 
Bank and
 
USD
33
m for
 
Group Functions;
 
for the
 
year
 
ended 31
 
December 2020:
 
USD
12,475
m for
 
Global
 
Wealth Management,
USD
1,427
m for Personal & Corporate
 
Banking, USD
3,129
m for Asset Management, USD
3,901
m for the Investment Bank and
 
USD
50
m for Group Functions).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
400
 
 
Note 5
 
Other income
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Associates, joint ventures and
 
subsidiaries
Net gains / (losses) from acquisitions and disposals of subsidiaries
1
148
(11)
635
2
Net gains / (losses) from disposals of investments in associates
 
and joint ventures
844
3
41
0
Share of net profits of associates and joint ventures
32
105
84
Total
1,024
134
719
Net gains / (losses) from disposals of financial assets measured
 
at fair value through other
 
comprehensive income
(1)
9
40
Income from properties
4
20
22
25
Net gains / (losses) from properties held for sale
71
100
5
76
6
Income from shared services provided to UBS Group
 
AG or its subsidiaries
460
451
422
Other
308
7
224
8
267
9
Total other income
1,882
941
1,549
1 Includes foreign exchange
 
gains / (losses) reclassified
 
from other comprehensive
 
income related
 
to the disposal or
 
closure of
 
foreign operations.
 
Refer to Note 29 for
 
more information about
 
UBS AG’s acquisitions
and disposals of
 
subsidiaries and
 
businesses.
 
2 Includes a
 
USD
631
m net gain on
 
the sale of a
 
majority stake in
 
Fondcenter AG
 
(now Clearstream
 
Fund Centre AG).
 
3 Includes
 
an USD
848
m gain related
 
to the
sale of UBS AG’s shareholding in
 
Mitsubishi Corp.-UBS Realty
 
Inc. Refer to Note 28b for more information.
 
4 Includes rent received from third parties.
 
5 Mainly relates to the sale of a property in Basel.
 
6 Includes
net gains of
 
USD
140
m arising from
 
sale-and-leaseback
 
transactions,
 
primarily related
 
to a
 
property in
 
Geneva,
 
partly offset
 
by remeasurement
 
losses
 
relating to
 
properties that
 
were reclassified
 
as held
 
for sale.
 
7 Mainly relates to a portion
 
of the total USD
133
m gain on the sale of
 
UBS AG’s domestic
 
wealth management
 
business in Spain of
 
USD
111
m (with the remaining amount
 
disclosed within Net gains
 
/ (losses) from
acquisitions and
 
disposals of
 
subsidiaries), income
 
of USD
111
m related to
 
a legacy
 
litigation settlement
 
and a legacy
 
bankruptcy claim,
 
as well
 
as gains of
 
USD
23
m related to
 
the repurchase
 
of UBS’s
 
own debt
instruments (compared with losses
 
of USD
17
m in 2021).
 
8 Includes a gain
 
of USD
100
m from the sale of UBS AG’s
 
domestic wealth management
 
business in Austria.
 
9 Includes a USD
215
m gain on the sale
 
of
intellectual property rights associated
 
with the Bloomberg Commodity
 
Index family.
 
 
 
Note 6
 
Personnel expenses
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Salaries
1
5,528
5,723
5,535
Variable compensation
2
7,636
7,973
7,246
of which: performance awards
2,910
2,916
2,953
3
of which: financial advisors
4
4,508
4,860
4,091
of which: other
217
196
201
Contractors
119
142
138
Social security
730
762
704
3
Post-employment benefit plans
5
555
582
597
of which: defined benefit plans
256
280
306
of which: defined contribution plans
299
303
291
Other personnel expenses
513
479
466
3
Total personnel expenses
15,080
15,661
14,686
1 Includes role-based allowances.
 
2 Refer to Note 27 for more information.
 
3 During 2020, UBS AG modified the conditions for continued vesting of certain
 
outstanding deferred compensation
 
awards for qualifying
employees, resulting
 
in an
 
expense of approximately
 
USD
270
m, of which
 
USD
240
m is disclosed
 
within Variable
 
compensation
 
– performance
 
awards,
 
USD
20
m within Social
 
security and
 
USD
10
m within Other
personnel expenses.
 
4 Consists of
 
cash and
 
deferred compensation
 
awards and is
 
based on compensable
 
revenues and firm
 
tenure using
 
a formulaic
 
approach. It also
 
includes expenses
 
related to compensation
commitments with financial
 
advisors entered into
 
at the time
 
of recruitment that
 
are subject to
 
vesting requirements.
 
5 Refer to Note
 
26 for more information.
 
Includes curtailment
 
gains of USD
13
m for the year
ended 31 December 2022 (for the year ended 31 December 2021: USD
49
m; for the year ended 31 December 2020: USD
0
m), which represent a reduction in the defined benefit
 
obligation related to the Swiss pension
plan resulting from a decrease
 
in headcount following restructuring
 
activities.
 
 
 
Note 7
 
General and administrative expenses
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Outsourcing costs
451
426
466
Technology costs
502
490
449
Consulting, legal and audit fees
494
465
566
Real estate and logistics costs
507
530
563
Market data services
367
367
361
Marketing and communication
195
171
162
Travel and entertainment
156
66
77
Litigation, regulatory and similar matters
1
348
910
197
Other
5,981
6,051
5,646
of which: shared services costs charged by UBS
 
Group AG or its subsidiaries
5,264
5,321
4,939
Total general and administrative
 
expenses
9,001
9,476
8,486
1 Reflects the net increase in
 
provisions for litigation, regulatory
 
and similar matters recognized
 
in the income statement.
 
Refer to Note 17 for
 
more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
401
 
 
Note 8 Income taxes
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Tax
 
expense / (benefit)
Swiss
Current
664
614
417
Deferred
(22)
26
107
Total Swiss
642
640
524
Non-Swiss
 
Current
689
857
715
Deferred
513
406
248
Total non-Swiss
1,202
1,263
963
Total income tax expense
 
/ (benefit) recognized in the income statement
1,844
1,903
1,488
Income tax recognized in the income
 
statement
The Swiss current tax expenses related
 
to taxable profits of UBS Switzerland
 
AG and other Swiss entities.
The
 
non-Swiss
 
current
 
tax
 
expenses
 
related
 
to
 
taxable
 
profits
 
of
 
non-Swiss
 
subsidiaries
 
and
 
branches.
 
The
 
non-Swiss
deferred tax
 
expenses
 
include expenses
 
of USD
678
m that
 
primarily related
 
to the
 
amortization
 
of deferred
 
tax assets
(DTAs)
 
previously
 
recognized
 
in
 
relation
 
to
 
tax
 
losses
 
carried
 
forward
 
and
 
deductible
 
temporary
 
differences
 
of
 
UBS
Americas
 
Inc.,
 
which
 
were
 
partly offset
 
by
 
a
 
benefit
 
of
 
USD
169
m
 
in respect
 
of
 
net upward
 
revaluations
 
of
 
DTAs
 
for
certain entities, primarily in connection
 
with our business planning
 
process.
 
The effective tax rate for the year of
20.6
% is lower than our projected
 
rate for the year of
24
%, primarily as a result of
the aforementioned deferred tax benefit of USD
169
m in respect of
 
net upward revaluations of DTAs and because no tax
expenses were recognized in
 
respect of pre-tax gains from dispositions
 
of UBS subsidiaries in 2022.
›
 
Refer to Note 29
 
for more information
 
about disposals
 
of subsidiaries
 
 
 
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Operating profit / (loss) before tax
8,960
8,964
7,699
of which: Swiss
4,052
2,983
3,042
of which: non-Swiss
4,907
5,981
4,657
Income taxes at Swiss tax rate of
18
% for 2022,
18.5
% for 2021 and
19.5
% for 2020
1,613
1,658
1,501
Increase / (decrease) resulting from:
Non-Swiss tax rates differing from Swiss tax rate
267
217
96
Tax effects of losses not recognized
74
124
144
Previously unrecognized tax losses now utilized
(217)
(179)
(212)
Non-taxable and lower-taxed income
(316)
(252)
(381)
Non-deductible expenses and additional taxable income
414
487
373
Adjustments related to prior years, current
 
tax
(33)
(38)
(66)
Adjustments related to prior years, deferred
 
tax
19
(3)
18
Change in deferred tax recognition
(217)
(341)
(383)
Adjustments to deferred tax balances arising from changes in tax
 
rates
0
(1)
235
Other items
240
230
163
Income tax expense / (benefit)
 
1,844
1,903
1,488
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
402
 
 
Note 8 Income taxes (continued)
The components of operating profit
 
before tax, and the
 
differences between income tax
 
expense reflected in the financial
statements and the amounts
 
calculated at the Swiss tax rate, are provided
 
in the table above
 
and explained below.
 
Component
Description
Non-Swiss tax rates
differing from the
Swiss tax rate
To
 
the extent that UBS AG profits or losses
 
arise outside Switzerland, the applicable
 
local tax rate may differ from the
Swiss tax rate. This item reflects,
 
for such profits, an adjustment
 
from the tax expense that would arise at the Swiss tax
rate to the tax expense
 
that would arise at the applicable local tax rate. Similarly,
 
it reflects, for such losses, an adjustment
from the tax benefit
 
that would arise at the Swiss tax rate to the tax
 
benefit that would arise at the applicable local
 
tax
rate.
Tax
 
effects of losses
not recognized
This item relates to tax losses
 
of entities arising in the year that are not
 
recognized as DTAs and
 
where no tax benefit arises
in relation to those losses. Therefore,
 
the tax benefit calculated by applying the local tax
 
rate to those losses as described
above is reversed.
Previously
unrecognized tax
 
losses
now utilized
This item relates to taxable
 
profits of the year that are offset by tax
 
losses of previous years for which
 
no DTAs were
previously recorded.
 
Consequently, no current
 
tax or deferred tax expense arises in relation
 
to those taxable profits and
the tax expense calculated by applying
 
the local tax rate on those profits is reversed.
Non-taxable and lower-
taxed income
This item relates to tax deductions
 
for the year in respect of permanent differences.
 
These include deductions in respect
 
of
profits that are either not
 
taxable or are taxable at a lower rate of
 
tax than the local tax rate. They also include deductions
made for tax purposes, which are
 
not reflected in the accounts.
Non-deductible
expenses and
additional taxable
income
This item relates to additional
 
taxable income for the year in respect
 
of permanent differences. These
 
include income that
is recognized for tax purposes
 
by an entity but is not included in its profit
 
that is reported in the financial statements, as
well as expenses for the year that are
 
non-deductible (e.g., client entertainment
 
costs are not deductible in certain
locations).
Adjustments related to
prior years,
 
current tax
This item relates to adjustments
 
to current tax expense for prior years
 
(e.g., if the tax payable for a year is agreed with the
tax authorities in an amount
 
that differs from the amount previously
 
reflected in the financial statements).
Adjustments related to
prior years,
 
deferred
tax
This item relates to adjustments
 
to deferred tax positions recognized
 
in prior years (e.g., if a tax loss for a
 
year is fully
recognized and
 
the amount of the tax loss agreed with the tax
 
authorities is expected to differ
 
from the amount previously
recognized as DTAs
 
in the accounts).
Change in deferred tax
recognition
This item relates to changes
 
in DTAs, including
 
changes in DTAs previously
 
recognized resulting from reassessments
 
of
expected future taxable profits.
 
It also includes changes in temporary differences
 
in the year, for
 
which deferred tax is not
recognized.
Adjustments to
deferred tax balances
arising from changes in
tax rates
This item relates to remeasurements
 
of DTAs and
 
liabilities recognized due to changes in
 
tax rates. These have the effect
of changing the future tax
 
saving that is expected from tax
 
losses or deductible tax differences and
 
therefore the amount
of DTAs recognized
 
or, alternatively,
 
changing the tax cost of additional
 
taxable income from taxable temporary
differences and
 
therefore the deferred tax liability.
Other items
Other items include other differences
 
between profits or losses at the local tax
 
rate and the actual local tax expense or
benefit, including movements
 
in provisions for uncertain positions in
 
relation to the current year and
 
other items.
 
Income tax recognized directly in equity
A net tax benefit of USD
1,095
m was recognized in
Other comprehensive income
 
(2021: net benefit
 
of USD
455
m) and
a net tax benefit of USD
5
m was recognized in
Share premium
(2021: net expense
 
of USD
102
m).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
403
 
 
Note 8 Income taxes (continued)
Deferred tax assets and liabilities
UBS
 
AG has
 
gross
 
DTAs,
 
valuation allowances
 
and
 
recognized
 
DTAs
 
related
 
to tax
 
loss carry-forwards
 
and
 
deductible
temporary differences, as well as deferred tax liabilities in respect of taxable temporary differences, as shown in the table
below.
 
The valuation
 
allowances reflect
 
DTAs
 
that were
 
not recognized
 
because, as
 
of the last
 
remeasurement
 
period,
management
 
did
 
not
 
consider it
 
probable
 
that
 
there
 
would
 
be sufficient
 
future
 
taxable
 
profits
 
available to
 
utilize
 
the
related tax loss carry-forwards
 
and deductible temporary differences
 
.
The recognition of DTAs
 
is supported by
 
forecasts of taxable profits
 
for the entities
 
concerned. In
 
addition, tax planning
opportunities are available that would result in additional future taxable
 
income and these would be utilized, if
 
necessary.
Deferred tax liabilities
 
are recognized
 
in respect of
 
investments in subsidiaries,
 
branches
 
and associates, and
 
interests in
joint arrangements,
 
except to
 
the extent
 
that UBS
 
AG can
 
control the
 
timing
 
of the
 
reversal of
 
the associated
 
taxable
temporary difference and it is probable
 
that such will not reverse in the foreseeable
 
future. However, as of 31 December
2022, this exception was not
 
considered to apply to any
 
taxable temporary differences.
 
USD m
31.12.22
31.12.21
Deferred tax assets
1
Gross
Valuation
allowance
Recognized
Gross
Valuation
allowance
Recognized
Tax loss carry-forwards
12,708
(8,720)
3,988
13,636
(9,193)
4,443
Temporary differences
5,774
(408)
5,365
5,092
(696)
4,396
of which: related to real estate costs capitalized for US tax
purposes
2,485
0
2,485
2,272
0
2,272
of which: related to compensation and benefits
1,169
(175)
993
1,200
(209)
991
of which: related to cash flow hedges
947
0
947
3
0
3
of which: other
1,173
(233)
940
1,620
(487)
1,133
Total deferred tax
 
assets
18,482
(9,128)
9,354
2
18,728
(9,889)
8,839
2
of which: related to the US
8,294
8,521
of which: related to other locations
1,060
318
Deferred tax liabilities
Cash flow hedges
0
118
Other
233
179
Total deferred tax liabilities
233
297
1 After offset of DTLs,
 
as applicable.
 
2 As of 31 December 2022,
 
UBS AG recognized
 
DTAs of USD
471
m (31 December 2021:
 
USD
77
m) in respect of
 
entities that incurred losses
 
in either the current
 
or preceding
year.
 
In general, US federal tax losses incurred
 
prior to 31 December 2017
 
can be carried forward
 
for 20 years. US federal tax
losses incurred after that date
 
can be carried forward indefinitely, although the utilization of such losses is limited
 
to 80%
of the
 
entity’s future
 
year taxable
 
profits. UK
 
tax losses
 
can also
 
be carried
 
forward indefinitely;
 
they can
 
shelter up
 
to
either 25%
 
or 50% of future
 
year taxable profits,
 
depending on when
 
the tax losses
 
arose. The
 
amounts of US
 
tax loss
carry-forwards that
 
are included
 
in the table
 
below are
 
based on
 
their amount
 
for federal tax
 
purposes rather
 
than for
state and local tax purposes.
 
Unrecognized tax loss carry-forwards
USD m
31.12.22
31.12.21
Within 1 year
231
141
From 2 to 5 years
2,184
1,026
From 6 to 10 years
11,106
13,283
From 11 to 20 years
1,610
2,093
No expiry
16,960
18,147
Total
32,091
34,690
of which: related to the US
1
13,350
14,870
of which: related to the UK
14,332
14,909
of which: related to other locations
4,409
4,911
1 Related to UBS AG’s
 
US branch.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
404
 
Balance sheet notes
Note 9
 
Financial assets at amortized
 
cost and other positions in scope of expected
 
credit loss measurement
The tables
 
below
 
provide
 
information about
 
financial instruments
 
and
 
certain credit
 
lines that
 
are subject
 
to expected
credit loss (ECL)
 
requirements.
 
UBS AG’s
 
ECL disclosure
 
segments,
 
or “ECL segments”
 
are aggregated
 
portfolios based
on shared risk characteristics and
 
on the same or similar rating
 
methods applied. The key segments are
 
presented in the
table below.
›
 
Refer to Note 19
 
for more information
 
about expected
 
credit loss measurement
 
Segment
Segment description
Description of credit risk sensitivity
Business division
 
Private clients with
mortgages
Lending to private clients secured
 
by
owner-occupied real estate
 
and
personal account overdrafts
 
of those
clients
Sensitive to the interest rate
 
environment,
unemployment levels, real estate
 
collateral
values and other regional
 
aspects
 
–
 
Personal & Corporate Banking
–
 
Global Wealth Management
Real estate financing
Rental or income-producing
 
real estate
financing to private and corporate
clients secured by real
 
estate
Sensitive to unemployment
 
levels, the
interest rate environment,
 
real estate
collateral values and other regional
aspects
 
–
 
Personal & Corporate Banking
–
 
Global Wealth Management
–
 
Investment Bank
Large corporate clients
Lending to large corporate and multi-
national clients
Sensitive to GDP developments,
unemployment levels, seasonalit
 
y,
business cycles and collateral
 
values
(diverse collateral,
 
including real estate
and other collateral types)
–
 
Personal & Corporate Banking
–
 
Investment Bank
SME clients
Lending to small and medium
 
-sized
corporate clients
Sensitive to GDP developments,
unemployment levels, the interest
 
rate
environment and,
 
to some extent,
seasonality,
 
business cycles and collateral
values (diverse collateral,
 
including real
estate and other collateral types)
–
 
Personal & Corporate Banking
Lombard
Loans secured by pledges
 
of marketable
securities, guarantees and
 
other forms
of collateral (including concentration
 
in
hedge funds, private equity and unlisted
equities), as well as unsecured
 
recourse
lending
Sensitive to equity and debt market
 
s
 
(e.g.,
changes in collateral values)
–
 
Global Wealth Management
Credit cards
Credit card solutions in
 
Switzerland and
the US
Sensitive to unemployment levels
–
 
Personal & Corporate Banking
–
 
Global Wealth Management
Commodity trade
finance
Working capital financing of
 
commodity
traders, generally extended on a
 
self-
liquidating transactional basis
Sensitive primarily to
 
the strength of
individual transaction structures
 
and
collateral values (price volatility
 
of
commodities),
 
as the primary source for
debt service is directly linked
 
to the
shipments financed
–
 
Personal & Corporate Banking
Financial intermediaries
and hedge funds
Lending to financial institutions
 
and
pension funds, including exposures
 
to
broker-dealers and clearing houses
Sensitive to GDP development, the
interest rate environment, price
 
and
volatility risks in financial markets,
 
and
regulatory and political
 
risk
–
 
Personal & Corporate Banking
–
 
Investment Bank
›
 
Refer to Note 19f
 
for more details
 
regarding sensitivity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
405
 
 
Note 9
 
Financial assets at amortized
 
cost and other positions in scope of expected
 
credit loss measurement
(continued)
The tables
 
below
 
provide
 
ECL exposure
 
and ECL
 
allowance and
 
provision
 
information
 
about financial
 
instruments and
certain non-financial instruments that are
 
subject to ECLs.
 
USD m
31.12.22
Carrying amount
1
ECL allowances
Financial instruments measured
 
at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
169,445
169,402
44
0
(12)
0
(12)
0
Loans and advances to banks
14,671
14,670
1
0
(6)
(5)
(1)
0
Receivables from securities financing transactions
 
measured at amortized cost
67,814
67,814
0
0
(2)
(2)
0
0
Cash collateral receivables on derivative
 
instruments
35,033
35,033
0
0
0
0
0
0
Loans and advances to customers
390,027
372,903
15,587
1,538
(783)
(129)
(180)
(474)
of which: Private clients with mortgages
156,930
147,651
8,579
699
(161)
(27)
(107)
(28)
of which: Real estate financing
46,470
43,112
3,349
9
(41)
(17)
(23)
0
of which: Large corporate clients
12,226
10,733
1,189
303
(130)
(24)
(14)
(92)
of which: SME clients
13,903
12,211
1,342
351
(251)
(26)
(22)
(203)
of which: Lombard
132,287
132,196
0
91
(26)
(9)
0
(17)
of which: Credit cards
1,834
1,420
382
31
(36)
(7)
(10)
(19)
of which: Commodity trade finance
3,272
3,261
0
11
(96)
(6)
0
(90)
Other financial assets measured at amortized cost
53,389
52,829
413
147
(86)
(17)
(6)
(63)
of which: Loans to financial advisors
2,611
2,357
128
126
(59)
(7)
(2)
(51)
Total financial assets
 
measured at amortized cost
730,379
712,651
16,044
1,685
(890)
(154)
(199)
(537)
Financial assets measured at
 
fair value through other comprehensive
 
income
2,239
2,239
0
0
0
0
0
0
Total on-balance
 
sheet financial assets within the scope of
 
ECL requirements
732,618
714,889
16,044
1,685
(890)
(154)
(199)
(537)
Total exposure
ECL provisions
Off-balance sheet (within the
 
scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Guarantees
22,167
19,805
2,254
108
(48)
(13)
(9)
(26)
of which: Large corporate clients
3,663
2,883
721
58
(26)
(2)
(3)
(21)
of which: SME clients
1,337
1,124
164
49
(5)
(1)
(1)
(3)
of which: Financial intermediaries and hedge funds
 
11,833
10,513
1,320
0
(12)
(8)
(4)
0
of which: Lombard
2,376
2,376
0
1
(1)
0
0
(1)
of which: Commodity trade finance
2,121
2,121
0
0
(1)
(1)
0
0
Irrevocable loan commitments
39,996
37,531
2,341
124
(111)
(59)
(52)
0
of which: Large corporate clients
23,611
21,488
2,024
99
(93)
(49)
(45)
0
Forward starting reverse repurchase
 
and securities borrowing agreements
3,801
3,801
0
0
0
0
0
0
Committed unconditionally revocable credit lines
43,677
41,809
1,833
36
(40)
(32)
(8)
0
of which: Real estate financing
8,711
8,528
183
0
(6)
(6)
0
0
of which: Large corporate clients
4,578
4,304
268
5
(4)
(1)
(2)
0
of which: SME clients
4,723
4,442
256
26
(19)
(16)
(3)
0
of which: Lombard
7,855
7,854
0
1
0
0
0
0
of which: Credit cards
9,390
8,900
487
3
(7)
(5)
(2)
0
of which: Commodity trade finance
327
327
0
0
0
0
0
0
Irrevocable committed prolongation of existing loans
4,696
4,600
94
2
(2)
(2)
0
0
Total off-balance sheet
 
financial instruments and credit lines
114,337
107,545
6,522
270
(201)
(106)
(69)
(26)
Total allowances and
 
provisions
(1,091)
(260)
(267)
(564)
1 The carrying amount
 
of financial assets measured
 
at amortized cost represents
 
the total gross exposure
 
net of the respective ECL
 
allowances.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
406
 
 
Note 9
 
Financial assets at amortized
 
cost and other positions in scope of expected
 
credit loss measurement
(continued)
USD m
31.12.21
Carrying amount
1
ECL allowances
Financial instruments measured
 
at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
192,817
192,817
0
0
0
0
0
0
Loans and advances to banks
15,360
15,333
26
1
(8)
(7)
(1)
0
Receivables from securities financing transactions
 
measured at amortized cost
75,012
75,012
0
0
(2)
(2)
0
0
Cash collateral receivables on derivative
 
instruments
30,514
30,514
0
0
0
0
0
0
Loans and advances to customers
398,693
381,496
15,620
1,577
(850)
(126)
(152)
(572)
of which: Private clients with mortgages
152,479
143,505
8,262
711
(132)
(28)
(71)
(33)
of which: Real estate financing
43,945
40,463
3,472
9
(60)
(19)
(40)
0
of which: Large corporate clients
13,990
12,643
1,037
310
(170)
(22)
(16)
(133)
of which: SME clients
14,004
12,076
1,492
436
(259)
(19)
(15)
(225)
of which: Lombard
149,283
149,255
0
27
(33)
(6)
0
(28)
of which: Credit cards
1,716
1,345
342
29
(36)
(10)
(9)
(17)
of which: Commodity trade finance
3,813
3,799
7
7
(114)
(6)
0
(108)
Other financial assets measured at amortized cost
26,236
25,746
302
189
(109)
(27)
(7)
(76)
of which: Loans to financial advisors
2,453
2,184
106
163
(86)
(19)
(3)
(63)
Total financial assets
 
measured at amortized cost
738,632
720,917
15,948
1,767
(969)
(161)
(160)
(647)
Financial assets measured at
 
fair value through other comprehensive
 
income
8,844
8,844
0
0
0
0
0
0
Total on-balance
 
sheet financial assets within the scope of
 
ECL requirements
747,477
729,762
15,948
1,767
(969)
(161)
(160)
(647)
Total exposure
ECL provisions
Off-balance sheet (within the
 
scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Guarantees
20,972
19,695
1,127
150
(41)
(18)
(8)
(15)
of which: Large corporate clients
3,464
2,567
793
104
(6)
(3)
(3)
0
of which: SME clients
1,353
1,143
164
46
(8)
(1)
(1)
(7)
of which: Financial intermediaries and hedge funds
 
9,575
9,491
84
0
(17)
(13)
(4)
0
of which: Lombard
2,454
2,454
0
0
(1)
0
0
(1)
of which: Commodity trade finance
3,137
3,137
0
0
(1)
(1)
0
0
Irrevocable loan commitments
39,478
37,097
2,335
46
(114)
(72)
(42)
0
of which: Large corporate clients
23,922
21,811
2,102
9
(100)
(66)
(34)
0
Forward starting reverse repurchase
 
and securities borrowing agreements
1,444
1,444
0
0
0
0
0
0
Committed unconditionally revocable credit lines
42,373
39,802
2,508
63
(38)
(28)
(10)
0
of which: Real estate financing
7,328
7,046
281
0
(5)
(4)
(1)
0
of which: Large corporate clients
5,358
4,599
736
23
(7)
(4)
(3)
0
of which: SME clients
5,160
4,736
389
35
(15)
(11)
(3)
0
of which: Lombard
8,670
8,670
0
0
0
0
0
0
of which: Credit cards
9,466
9,000
462
4
(6)
(5)
(2)
0
of which: Commodity trade finance
117
117
0
0
0
0
0
0
Irrevocable committed prolongation of existing loans
5,611
5,527
36
48
(3)
(3)
0
0
Total off-balance sheet
 
financial instruments and credit lines
109,878
103,565
6,006
307
(196)
(121)
(60)
(15)
Total allowances and
 
provisions
(1,165)
(282)
(220)
(662)
1 The carrying amount
 
of financial assets measured
 
at amortized cost represents
 
the total gross exposure
 
net of the respective ECL
 
allowances.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
407
 
 
Note 9
 
Financial assets at amortized
 
cost and other positions in scope of expected
 
credit loss measurement
(continued)
Coverage ratios are
 
calculated for the
 
core loan
 
portfolio by taking
 
ECL allowances
 
and provisions
 
divided by
 
the gross
carrying amount
 
of the
 
exposures.
 
Core loan
 
exposure is
 
defined as
 
the sum
 
of
Loans and
 
advances to
 
customers
 
and
Loans to financial advisors
.
 
These ratios are influenced by the following
 
key factors:
 
–
 
Lombard loans are generally secured with marketable securities in
 
portfolios that are, as a rule, highly diversified,
 
with
strict lending policies that are intended
 
to ensure that credit risk is minimal
 
under most circumstances;
 
–
 
mortgage loans
 
to private
 
clients and real
 
estate financing
 
are controlled
 
by conservative
 
eligibility criteria,
 
including
low loan-to-value ratios
 
and strong debt service capabilit
 
ies;
–
 
the amount of unsecured
 
retail lending (including credit cards) is insignificant;
 
–
 
lending in Switzerland includes government
 
-backed COVID-19 loans;
–
 
contractual
 
maturities
 
in
 
the
 
loan
 
portfolio, which
 
are
 
a
 
factor in
 
the
 
calculation of
 
ECLs,
 
are generally
 
short,
 
with
Lombard
 
lending
 
typically having
 
average
 
contractual
 
maturities
 
of 12
 
months
 
or less,
 
real estate
 
lending
 
generally
between
 
two and
 
three years
 
in Switzerland
 
,
 
with long
 
dated maturities
 
in the
 
US,
 
and
 
corporate lending
 
between
one and two years with related loan
 
commitments up to four
 
years; and
 
–
 
write-offs of
 
ECL allowances against
 
the gross loan
 
balances when all
 
or part of
 
a financial
 
asset is deemed
 
uncollectible
or forgiven, reduces the coverage ratios.
 
The total
 
combined
 
on-
 
and
 
off-balance sheet
 
coverage ratio
 
was at
21
 
basis points
 
as of
 
31 December 2022,
1
 
basis
point lower than on 31 December 2021. The combined stage 1 and 2 ratio of
10
 
basis points was unchanged compared
with 31 December 2021;
 
the stage 3 ratio was 22%,
2
 
percentage points lower than
 
as of 31 December 2021.
 
 
 
31.12.22
Gross carrying amount (USD
 
m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
157,091
147,678
8,686
727
10
2
123
9
381
Real estate financing
46,511
43,129
3,372
9
9
4
70
9
232
Total real estate lending
203,602
190,807
12,059
736
10
2
108
9
379
Large corporate clients
12,356
10,757
1,204
395
105
22
120
32
2,325
SME clients
14,154
12,237
1,364
553
177
22
161
36
3,664
Total corporate lending
26,510
22,994
2,567
949
144
22
142
34
3,106
Lombard
132,313
132,205
0
108
2
1
0
1
1,580
Credit cards
1,869
1,427
393
50
190
46
256
91
3,779
Commodity trade finance
3,367
3,266
0
101
285
18
0
18
8,901
Other loans and advances to customers
23,149
22,333
748
68
18
6
38
7
3,769
Loans to financial advisors
2,670
2,364
130
176
221
28
124
33
2,870
Total other lending
163,368
161,595
1,270
503
16
3
114
3
4,016
Total
1
393,480
375,396
15,896
2,188
21
4
114
8
2,398
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
6,535
6,296
236
3
5
4
18
4
1,183
Real estate financing
10,054
9,779
275
0
6
7
0
6
0
Total real estate lending
16,589
16,075
511
3
6
6
2
6
1,288
Large corporate clients
32,126
28,950
3,013
163
38
18
165
32
1,263
SME clients
7,122
6,525
499
98
47
30
214
43
304
Total corporate lending
39,247
35,475
3,513
260
40
20
172
34
903
Lombard
12,919
12,918
0
1
2
1
0
1
0
Credit cards
9,390
8,900
487
3
7
5
36
7
0
Commodity trade finance
2,459
2,459
0
0
3
3
0
3
0
Financial intermediaries and hedge funds
18,128
16,464
1,664
0
7
6
25
7
0
Other off-balance sheet commitments
11,803
11,454
346
3
11
8
68
9
0
Total other lending
54,700
52,195
2,498
7
6
5
33
6
0
Total
2
110,537
103,745
6,522
270
18
10
106
16
980
Total on-
 
and off-balance sheet
3
504,016
479,140
22,418
2,458
21
5
112
10
2,242
1 Includes Loans
 
and advances to
 
customers and Loans
 
to financial
 
advisors which are
 
presented on the
 
balance sheet line
 
Other assets measured
 
at amortized
 
cost.
 
2 Excludes Forward
 
starting reverse
 
repurchase
and securities borrowing agreements.
 
3 Includes on-balance-sheet
 
exposure, gross and
 
off-balance-sheet exposure
 
(notional) and the related
 
ECL coverage ratio.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
408
 
 
Note 9
 
Financial assets at amortized
 
cost and other positions in scope of expected
 
credit loss measurement
(continued)
31.12.21
Gross carrying amount (USD
 
m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
152,610
143,533
8,333
744
9
2
85
6
446
Real estate financing
44,004
40,483
3,512
10
14
5
114
14
231
Total real estate lending
196,615
184,016
11,845
754
10
3
94
8
443
Large corporate clients
14,161
12,665
1,053
443
120
18
148
28
2,997
SME clients
14,263
12,095
1,507
661
182
16
103
25
3,402
Total corporate lending
28,424
24,760
2,560
1,104
151
17
121
26
3,240
Lombard
149,316
149,261
0
55
2
0
0
0
5,026
Credit cards
1,752
1,355
351
46
204
72
255
109
3,735
Commodity trade finance
3,927
3,805
7
115
290
15
3
15
9,388
Other loans and advances to customers
19,510
18,425
1,010
75
23
9
15
9
3,730
Loans to financial advisors
2,539
2,203
109
226
338
88
303
99
2,791
Total other lending
177,043
175,049
1,477
517
18
3
93
4
4,718
Total
1
402,081
383,825
15,882
2,374
23
4
98
8
2,673
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
9,123
8,798
276
49
3
3
9
3
15
Real estate financing
8,766
8,481
285
0
9
7
88
9
0
Total real estate lending
17,889
17,278
562
49
6
5
49
6
15
Large corporate clients
32,748
28,981
3,630
136
34
25
110
35
1
SME clients
8,077
7,276
688
114
38
19
151
30
585
Total corporate lending
40,826
36,258
4,318
250
35
24
117
34
266
Lombard
14,438
14,438
0
0
1
0
0
0
0
Credit cards
9,466
9,000
462
4
7
5
34
7
0
Commodity trade finance
3,262
3,262
0
0
4
4
0
4
0
Financial intermediaries and hedge funds
13,747
13,379
369
0
13
10
120
13
0
Other off-balance sheet commitments
8,806
8,507
296
4
15
6
30
7
0
Total other lending
49,720
48,585
1,127
8
8
5
61
7
0
Total
2
108,434
102,121
6,006
307
18
12
100
17
486
Total on-
 
and off-balance sheet
3
510,516
485,946
21,888
2,681
22
5
99
9
2,423
1 Includes Loans
 
and advances to
 
customers and Loans
 
to financial
 
advisors which are
 
presented on the
 
balance sheet line
 
Other assets measured
 
at amortized
 
cost.
 
2 Excludes Forward
 
starting reverse
 
repurchase
and securities borrowing agreements.
 
3 Includes on-balance-sheet
 
exposure, gross and
 
off-balance-sheet exposure
 
(notional) and the related
 
ECL coverage ratio.
 
 
 
Note 10
 
Derivative instruments
Overview
Over-the-counter (OTC) derivative contracts are
 
usually traded under
 
a standardized International Swaps and
 
Derivatives
Association (ISDA)
 
master agreement
 
or other
 
recognized
 
local industry-standard
 
master agreements
 
between UBS
 
AG
and
 
its
 
counterparties.
 
Terms
 
are
 
negotiated
 
directly
 
with
 
counterparties
 
and
 
the
 
contracts
 
have
 
industry-standard
settlement
 
mechanisms
 
prescribed
 
by
 
ISDA
 
or
 
similar
 
industry-standard
 
solutions.
 
Other
 
OTC
 
derivatives
 
are
 
cleared
through clearing houses, in
 
particular interest rate
 
swaps with LCH, where a
 
settled-to-market method has been generally
adopted,
 
under which
 
cash collateral
 
exchanged
 
on a
 
daily basis is
 
considered to
 
legally settle
 
the market
 
value of
 
the
derivatives. Regulators
 
in various
 
jurisdictions have
 
introduced
 
rules requiring
 
the payment and
 
collection of
 
initial and
variation margins on certain OTC derivative
 
contracts, which may have a bearing
 
on price and other relevant
 
terms.
Exchange-traded derivatives (ETD) are standardized
 
in terms of their amounts and
 
settlement dates, and are bought
 
and
sold
 
on
 
regulated
 
exchanges.
 
Exchanges
 
offer
 
the
 
benefits
 
of
 
pricing
 
transparency,
 
standardized
 
daily
 
settlement
 
of
changes in value and,
 
consequently, reduced credit risk.
Most of UBS AG’s derivative
 
transactions relate to sales and market-making activity.
 
Sales activities include the structuring
and marketing of derivative products to
 
customers to enable them to take,
 
transfer, modify or reduce current or expected
risks. Market-making aims to directly support the
 
facilitation and execution of client activity, and involves
 
quoting bid and
offer prices to other market participants with the aim of generating
 
revenues based on spread and volume. UBS
 
AG also
uses various derivative instruments for
 
hedging purposes.
›
 
Refer to Notes 15
 
and 20 for more information
 
about derivative
 
instruments
›
 
Refer to Note 25
 
for more information
 
about derivatives
 
designated in
 
hedge accounting
 
relationships
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
409
 
 
Note 10
 
Derivative instruments (continued)
Risks of derivative
 
instruments
The derivative financial assets shown on the balance sheet can be an important component of UBS AG’s credit exposure;
however,
 
the positive
 
replacement
 
values related
 
to a
 
respective counterparty
 
are rarely
 
an adequate
 
reflection of
 
UBS
AG’s
 
credit
 
exposure
 
in its
 
derivatives business
 
with
 
that
 
counterparty.
 
This
 
is generally
 
the
 
case
 
because,
 
on
 
the one
hand, replacement values can increase over time (potential
 
future exposure), while, on the other
 
hand, exposure may be
mitigated by entering into master netting agreements and bilateral collateral arrangements. Both the exposure measures
used internally
 
by UBS AG
 
to control
 
credit risk and
 
the capital
 
requirements imposed by regulators reflect
 
these additional
factors.
›
 
Refer to Note 21
 
for more information
 
about derivative
 
financial assets
 
and liabilities
 
after consideration
 
of netting potential
permitted under
 
enforceable netting
 
arrangements
›
 
Refer to the “Risk
 
management and
 
control” section of
 
this report for more information
 
about the risks
 
arising from derivative
instruments
 
Derivative instruments
 
31.12.22
31.12.21
USD bn
Derivative
financial
assets
Notional
amounts
related to
derivative
financial
assets
2,3
Derivative
financial
liabilities
Notional
amounts
related to
derivative
financial
liabilities
2,3
Other
notional
amounts
2,4
Derivative
financial
assets
Notional
amounts
related to
derivative
financial
assets
2,3
Derivative
financial
liabilities
Notional
amounts
related to
derivative
financial
liabilities
2,3
Other
notional
amounts
2,4
Interest rate contracts
39.8
1,057.4
37.5
1,022.9
11,255.4
33.2
991.2
28.7
943.1
8,675.1
of which: forwards (OTC)
1
0.2
37.7
0.0
34.6
792.7
0.1
29.4
0.2
28.6
443.6
of which: swaps (OTC)
25.2
326.1
19.8
281.0
9,728.6
26.4
394.3
19.2
344.1
7,549.4
of which: options (OTC)
14.2
687.5
17.5
705.0
6.6
545.2
9.2
553.6
of which: futures (ETD)
606.3
525.0
of which: options (ETD)
0.0
6.1
0.0
2.2
127.7
0.0
22.4
0.0
16.8
157.1
Credit derivative contracts
1.0
36.8
1.2
37.1
1.4
44.7
1.8
46.3
of which: credit default swaps (OTC)
0.9
34.2
1.0
36.8
1.3
39.4
1.6
44.1
of which: total return swaps (OTC)
0.1
0.9
0.2
0.3
0.1
1.3
0.2
1.7
Foreign exchange contracts
85.5
3,087.3
88.5
2,992.7
40.1
53.3
3,031.0
54.1
2,938.8
1.2
of which: forwards (OTC)
26.5
853.6
28.6
910.2
23.8
1,009.1
23.8
1,043.2
of which: swaps (OTC)
49.6
1,679.3
50.4
1,553.7
38.4
24.3
1,606.4
24.9
1,480.3
of which: options (OTC)
9.3
551.6
9.2
521.6
5.2
412.6
5.3
408.6
Equity contracts
22.2
384.5
26.1
501.3
63.4
28.2
456.9
34.9
603.9
80.1
of which: swaps (OTC)
5.3
95.5
6.6
122.0
4.7
105.7
9.3
154.8
of which: options (OTC)
2.8
51.6
4.4
89.0
4.6
61.4
6.5
102.3
of which: futures (ETD)
52.2
71.2
of which: options (ETD)
9.0
237.0
8.1
289.7
11.2
10.2
289.6
9.8
346.3
8.8
of which: client-cleared transactions (ETD)
5.1
7.0
8.6
9.4
Commodity contracts
1.4
68.1
1.4
64.2
17.6
1.6
57.8
1.6
56.4
14.7
of which: swaps (OTC)
0.5
19.3
0.7
19.3
0.5
19.9
0.8
25.4
of which: options (OTC)
0.4
15.8
0.3
13.3
0.4
14.0
0.2
10.4
of which: futures (ETD)
16.4
13.9
of which: forwards
 
(ETD)
0.0
24.5
0.0
23.2
0.0
18.1
0.0
15.2
of which: client-cleared transactions (ETD)
0.2
0.3
0.6
0.4
Loan commitments
 
measured at FVTPL (OTC)
0.0
0.9
0.0
3.7
0.0
0.8
0.0
8.2
Unsettled purchases of non-derivative
financial instruments
5
0.1
12.1
0.1
9.4
0.1
13.3
0.2
10.6
Unsettled sales of non-derivative
 
financial
instruments
5
0.1
13.0
0.0
10.7
0.2
18.2
0.1
9.4
Total derivative instruments,
 
based on IFRS netting
6
150.1
4,660.1
154.9
4,642.0
11,376.5
118.1
4,614.0
121.3
4,616.6
8,771.1
1 Includes certain forward starting repurchase
 
and reverse repurchase agreements that are classified
 
as measured at fair value through profit or loss and are recognized
 
within derivative instruments.
 
2 In cases where
derivative financial
 
instruments
 
are presented
 
on a net
 
basis on
 
the bal
 
ance sheet,
 
the respective
 
notional amounts
 
of the
 
netted derivative
 
financial instruments
 
are still
 
presented on
 
a gross
 
basis.
 
3 Notional
amounts of client-cleared
 
ETD and OTC
 
transactions through
 
central clearing
 
counterparties are
 
not disclosed, as they
 
have significantly
 
different risk profile.
 
4 Other notional
 
amounts relate to
 
derivatives that are
cleared through either a central
 
counterparty or an
 
exchange. The fair
 
value of these derivatives
 
is presented on the balance
 
sheet net of the corresponding
 
cash margin under
 
Cash collateral receivables
 
on derivative
instruments and Cash
 
collateral payables
 
on derivative
 
instruments and
 
was
 
not material for
 
any of the
 
periods presented.
 
5 Changes
 
in the fair
 
value of
 
purchased and
 
sold non-derivative
 
financial instruments
between trade date
 
and settlement
 
date are recognized
 
as derivative
 
financial instruments.
 
6 Derivative
 
financial assets and
 
liabilities are
 
presented net
 
on the balance sheet
 
if UBS AG
 
has the unconditional
 
and
legally enforceable right
 
to offset the recognized
 
amounts, both
 
in the normal course
 
of business and in the
 
event of default,
 
bankruptcy or insolvency
 
of the entity and all
 
of the counterparties,
 
and intends either
 
to
settle on a net basis or to realize
 
the asset and settle the liability
 
simultaneously. Refer
 
to Note 21 for more
 
information on netting
 
arrangements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
410
 
 
Note 10
 
Derivative instruments (continued)
On
 
a
 
notional
 
amount
 
basis,
 
approximately
46
%
 
of
 
OTC
 
interest
 
rate
 
contracts
 
held
 
as
 
of
 
31 December
 
2022
(31 December 2021:
40
%) mature within
 
one year,
32
% (31 December 2021:
36
%) within one
 
to five years and
22
%
31 December 2021:
25
%) after five years.
 
Notional amounts of interest rate contracts cleared
 
through either a central counterparty or an exchange
 
that are legally
settled or economically
 
net settled
 
on a
 
daily basis are
 
presented under
Other notional amounts
 
in the table
 
above and
are categorized into maturity buckets
 
on the basis of contractual
 
maturities of the cleared underlying
 
derivative contracts.
Other notional
 
amounts
 
related to
 
interest rate
 
contracts increased
 
by USD
2.6
trn compared
 
with 31 December
 
2021,
mainly
 
reflecting
 
higher
 
business
 
volumes
 
driven
 
by
 
elevated
 
interest
 
rate
 
volatility
 
and
 
inflation,
 
partly
 
offset
 
by
compression activity.
 
 
 
Note 11
 
Property, equipment and software
At historical cost less accumulated depreciation
USD m
Owned
properties and
equipment
1
Leased
properties and
equipment
2
Software
Projects in
progress
2022
3
2021
3
Historical cost
Balance at the beginning of the year
11,494
3,994
7,924
1,130
24,542
23,785
Additions
90
1
380
330
1,059
1,859
1,789
Disposals / write-offs
4
(284)
(48)
(81)
0
(414)
(632)
Reclassifications
(796)
0
1,052
(1,150)
(894)
(18)
Foreign currency translation
(152)
(50)
(5)
7
(200)
(381)
Balance at the end of the year
10,352
4,275
9,220
1,046
24,893
24,542
Accumulated depreciation
Balance at the beginning of the year
7,178
1,272
4,380
12,830
11,827
Depreciation
463
430
926
1,819
1,835
Impairment
5
2
0
0
2
9
Disposals / write-offs
4
(283)
(45)
(81)
(410)
(619)
Reclassifications
(565)
(1)
0
(566)
(12)
Foreign currency translation
(98)
(18)
17
(99)
(210)
Balance at the end of the year
6,697
1,638
5,242
13,577
12,830
Net book value
 
Net book value at the beginning of the year
4,316
2,722
3,544
1,130
11,712
11,958
Net book value at the end of the
 
year
3,655
2,637
3,978
1,046
6
11,316
11,712
1 Includes leasehold improvements and IT hardware.
 
2 Represents right-
 
of-use assets recognized by UBS AG as lessee.
 
UBS AG predominantly enters into
 
lease contracts, or contracts
 
that include lease components,
in relation to
 
real estate,
 
including offices,
 
retail branches
 
and sales offices.
 
The total
 
cash outflow
 
for leases
 
during 2022 was
 
USD
589
m (2021: USD
632
m). Interest expense
 
on lease liabilities
 
is included within
Interest expense from
 
financial instruments
 
measured at amortized
 
cost and Lease
 
liabilities are
 
included within Other
 
financial
 
liabilities measured
 
at amortized
 
cost. Refer
 
to Notes 3
 
and 18a, respectively.
 
There
were no material
 
gains or losses
 
arising from sale
 
-and-leaseback transactions
 
in 2022 and in
 
2021.
 
3 The total
 
reclassification
 
amount for the
 
respective periods
 
represents
 
net reclassifications
 
to Properties and
other non-current assets held for
 
sale.
 
4 Includes write-
 
offs of fully depreciated assets.
 
5 Impairment charges
 
recorded in 2022 generally
 
relate to assets that are no longer
 
used,
 
for which the recoverable
 
amount
based on a value in use approach
 
was determined to
 
be zero.
 
6 Consists of USD
858
m related to software and
 
USD
188
m related to Owned properties
 
and equipment.
 
 
 
Note 12
 
Goodwill and intangible assets
Introduction
UBS AG performs an impairment test
 
on its goodwill assets on
 
an annual basis or when indicators of impairment exist.
 
UBS AG considers Asset Management
 
,
 
as it is reported in Note 2a,
 
as a separate cash-generating unit (a
 
CGU),
 
as that is
the level at which
 
the performance
 
of investment
 
(and the
 
related goodwill)
 
is reviewed and
 
assessed by management.
Given that
 
a significant
 
amount
 
of goodwill
 
in Global
 
Wealth
 
Management
 
relates
 
to the
 
PaineWebber
 
acquisition
 
in
2000,
 
which mainly
 
affected the
 
Americas
 
portion
 
of the
 
business,
 
this goodwill
 
remains separately
 
monitored
 
by the
Americas,
 
despite
 
the
 
formation
 
of
 
Global
 
Wealth
 
Management
 
in
 
2018.
 
Therefore,
 
goodwill
 
for
 
Global
 
Wealth
Management
 
is
 
separately
 
considered
 
for
 
impairment
 
at
 
the
 
level
 
of
 
two
 
CGUs:
 
Americas;
 
and
 
Switzerland
 
and
International (consisting of EMEA,
 
Asia Pacific and Global).
The impairment
 
test is
 
performed
 
for each
 
CGU to
 
which goodwill
 
is allocated
 
by comparing
 
the recoverable
 
amount
with the
 
carrying amount
 
of the
 
respective CGU.
 
UBS
 
AG determines
 
the recoverable
 
amount
 
of the
 
respective CGUs
based on their value in use. An impairment charge is
 
recognized if the carrying amount exceeds the recoverable amount.
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
411
 
 
Note 12
 
Goodwill and intangible assets (continued)
As
 
of
 
31 December
 
2022,
 
total goodwill
 
recognized
 
on
 
the
 
balance
 
sheet
 
was
 
USD
6.0
bn,
 
of
 
which
 
USD
3.7
bn
 
was
carried by the
 
Global Wealth
 
Management Americas
 
CGU, USD
1.2
bn was
 
carried by the
 
Global Wealth
 
Management
Switzerland and International CGU, and USD
1.2
bn was carried by Asset Management. Based on the impairment testing
methodology described below, UBS AG concluded that the
 
goodwill balances as of
 
31 December 2022
 
allocated to these
CGUs were not impaired.
Methodology for goodwill impairment
 
testing
The recoverable
 
amounts
 
are determined
 
using
 
a discounted
 
cash flow
 
model, which
 
has been
 
adapted to
 
use inputs
that consider features
 
of the banking business
 
and its regulatory environment.
 
The recoverable
 
amount of a CGU
 
is the
sum of the
 
discounted
 
earnings attributable
 
to shareholders
 
from the
 
first three
 
forecast
 
years and
 
the terminal
 
value,
adjusted for the effect of the capital
 
assumed to be needed over the next three years and to support growth beyond that
period. The
 
terminal value,
 
which covers
 
all periods
 
beyond the
 
third year,
 
is calculated
 
on the
 
basis of
 
the forecast
 
of
the third-year profit, the
 
discount rate and the long
 
-term growth rate, as well as the
 
implied perpetual capital growth.
The
 
carrying
 
amount
 
for
 
each
 
CGU
 
is
 
determined
 
by
 
reference
 
to
 
UBS’s
 
equity
 
attribution
 
framework.
 
Within
 
this
framework,
 
which
 
is
 
described
 
in
 
the
 
“Capital,
 
liquidity
 
and
 
funding,
 
and
 
balance
 
sheet”
 
section
 
of
 
this
 
report,
 
UBS
attributes equity to the businesses on the
 
basis of their
 
risk-weighted assets and leverage ratio denominator (both metrics
include resource allocations from Group Functions to the business divisions), their goodwill and their intangible assets, as
well as
 
attributed equity
 
related to
 
certain common
 
equity tier 1
 
deduction
 
items. The
 
framework is
 
primarily used
 
for
the purpose of measuring the performance of the businesses
 
and includes certain management assumptions. Attributed
equity
is
equal
 
to
 
the
 
capital
 
a
 
CGU
 
requires
 
to
 
conduct
 
its
 
business
 
and
 
is
 
currently
 
considered
 
a
 
reasonable
approximation
 
of the
 
carrying amount
 
of the
 
CGUs.
 
The attributed
 
equity methodology
 
is also
 
applied in
 
the business
planning process, the inputs
 
from which are used in calculating the recoverable amounts
 
of the respective CGU.
›
 
Refer to the “Capital,
 
liquidity and funding,
 
and balance sheet”
 
section of this
 
report for more information
 
about the equity
attribution framework
Assumptions
Valuation
 
parameters
 
used
 
within UBS
 
AG’s
 
impairment test
 
model
 
are
 
linked
 
to
 
external market
 
information,
 
where
applicable. The
 
model used
 
to determine
 
the recoverable
 
amount
 
is most
 
sensitive to
 
changes in
 
the forecast
 
earnings
available to shareholders in years one to
 
three, to changes in the discount rates and to changes
 
in the long-term growth
rate. The applied
 
long-term growth
 
rate is based
 
on long-term economic
 
growth rates
 
for different regions
 
worldwide.
Earnings
 
available to
 
shareholders
 
are
 
estimated
 
on
 
the
 
basis
 
of
 
forecast
 
results,
 
which
 
are
 
part
 
of
 
the
 
business
 
plan
approved by the Board
 
of Directors.
The
 
discount
 
rates
 
are
 
determined
 
by
 
applying
 
a
 
capital
 
asset
 
pricing
 
model-based
 
approach,
 
as
 
well
 
as
 
considering
quantitative and qualitative inputs from both internal and external analysts and
 
the view of management. They also take
into account
 
regional differences
 
in risk-free
 
rates at the
 
level of
 
the individual
 
CGUs. In
 
line with discount
 
rates, long-
term growth rates are determined at the regional
 
level based on nominal
 
GDP growth rate forecasts.
Key
 
assumptions
 
used
 
to
 
determine
 
the
 
recoverable
 
amounts
 
of
 
each
 
CGU
 
are
 
tested
 
for
 
sensitivity
 
by
 
applying
 
a
reasonably possible
 
change
 
to those
 
assumptions.
 
Forecast earnings
 
available
 
to shareholders
 
were
 
changed by
20
%,
the
 
discount
 
rates
 
were
 
changed
 
by
1.5
 
percentage
 
points
,
 
and
 
the
 
long
-
term
 
growth
 
rates
 
were
 
changed
 
by
0.75
 
percentage
 
points.
 
Under
 
all
 
scenarios,
 
reasonably
 
possible
 
changes
 
in
 
key
 
assumptions
 
did
 
not
 
result
 
in
 
an
impairment
 
of
 
goodwill
 
or
 
intangible
 
assets
 
reported
 
by
 
Global
 
Wealth
 
Management
 
Americas,
 
Global
 
Wealth
Management Switzerland
 
and International,
 
and Asset Management.
If the estimated earnings and other assumptions in future
 
periods deviate from the current
 
outlook, the value of goodwill
attributable to
 
Global Wealth
 
Management
 
Americas, Global
 
Wealth Management
 
Switzerland and
 
International,
 
and
Asset Management may become impaired in the future, giving rise to
 
losses in the income statement. Recognition of any
impairment
 
of
 
goodwill
 
would
 
reduce
 
International
 
Financial R
 
eporting
 
Standards
 
equity
 
and
 
net
 
profit.
 
It would
 
not
affect cash flows and, as goodwill is required to be deducted from capital
 
under the Basel III capital framework, no effect
would be expected on
 
UBS AG’s capital ratios.
 
Discount and growth rates
Discount rates
Growth rates
In %
31.12.22
31.12.21
31.12.22
31.12.21
Global Wealth Management Americas
10.5
9.5
3.8
4.0
Global Wealth Management Switzerland and International
9.4
8.5
3.6
3.1
Asset Management
9.5
8.5
3.4
2.9
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
412
 
 
Note 12
 
Goodwill and intangible assets (continued)
USD m
Goodwill
Intangible assets
1
2022
2021
Historical cost
Balance at the beginning of the year
6,126
1,612
7,739
7,865
Additions
0
0
0
1
Disposals
2
(22)
0
(22)
(3)
Write-offs
0
0
0
(41)
Foreign currency translation
(61)
(14)
(76)
(83)
Balance at the end of the year
6,043
1,598
7,641
7,739
Accumulated amortization and
 
impairment
Balance at the beginning of the year
1,360
1,360
1,385
Amortization
26
26
31
Impairment / (reversal of impairment)
(1)
(1)
(1)
Write-offs
0
0
(41)
Foreign currency translation
(11)
(11)
(13)
Balance at the end of the year
1,374
1,374
1,360
Net book value at the end of the
 
year
6,043
224
6,267
6,378
of which: Global Wealth Management Americas
3,709
31
3,740
3,760
of which: Global Wealth Management Switzerland
 
and International
1,166
59
1,225
1,276
of which: Asset Management
1,167
0
1,167
1,202
of which: Investment Bank
0
135
135
139
1 Intangible assets mainly include customer relationships, contractual rights and the fully amortized branch network intangible asset recognized in connection with the acquisition of PaineWebber Group, Inc.
 
2 Reflects
the derecognition of goodwill
 
allocated to businesses that
 
have been disposed of,
 
in accordance with IAS 36
 
requirements.
 
The table below presents
 
estimated aggregated amortization
 
expenses for intangible
 
assets.
 
USD m
Intangible assets
Estimated aggregated amortization
 
expenses for:
2023
26
2024
24
2025
23
2026
23
2027
22
Thereafter
104
Not amortized due to indefinite useful life
2
Total
224
 
 
 
Note 13
 
Other assets
 
a) Other financial assets measured
 
at amortized cost
USD m
31.12.22
31.12.21
Debt securities
44,594
18,858
Loans to financial advisors
2,611
2,453
Fee-
 
and commission-related receivables
1,803
1,966
Finance lease receivables
1,314
1,356
Settlement and clearing accounts
 
1,174
455
Accrued interest income
1,276
521
Other
618
627
Total other financial assets
 
measured at amortized cost
53,389
26,236
 
Debt
 
securities
 
increased
 
by
 
USD
25.7
bn
 
compared
 
with
 
31
 
December
 
2021,
 
largely
 
reflecting
 
shifts
 
from
 
cash
 
into
securities within UBS’s high
 
-quality liquid asset portfolio as spreads
 
widened. In addition,
 
a portfolio of assets previously
classified
 
as
 
Financial
 
assets
 
measured
 
at
 
fair
 
value
 
through
 
other
 
comprehensive
 
income
 
was
 
reclassified
 
to
 
Other
financial assets measured at amortized
 
cost in 2022.
›
 
Refer to Note 1b for
 
more information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
413
 
 
Note 13
 
Other assets (continued)
 
b) Other non-financial assets
USD m
31.12.22
31.12.21
Precious metals and other physical commodities
 
4,471
5,258
Deposits and collateral provided in connection
 
with litigation, regulatory and similar matters
1
2,205
1,526
Prepaid expenses
709
717
VAT,
 
withholding tax and other tax receivables
1,405
591
Properties and other non
 
-current assets held for sale
279
32
Assets of disposal group held for sale
2
1,093
Other
 
583
618
Total other non-financial
 
assets
9,652
9,836
1 Refer to Note 17 for more information.
 
2 Refer to Note 29 for
 
more information.
 
Note 14
 
Customer deposits, and funding from UBS
 
Group AG
 
a) Customer deposits
USD m
31.12.22
31.12.21
Demand deposits
182,307
247,299
Retail savings / deposits
149,310
133,354
Sweep deposits
69,223
113,870
Time deposits
1
126,331
50,312
Total customer deposits
527,171
544,834
1 Includes customer deposits
 
in UBS AG Jersey Branch
 
placed by UBS Switzerland
 
AG on behalf of its clients.
 
Increases in interest rates during
 
the year resulted in significant shifts
 
from demand deposits
 
to time deposits.
 
b) Funding from UBS Group AG measured
 
at amortized cost
USD m
31.12.22
31.12.21
Senior unsecured debt that
 
contributes to total loss-absorbing capacity (TLAC)
42,073
38,984
Senior unsecured debt other than
 
TLAC
236
4,471
Subordinated debt
13,838
13,840
of which: eligible as high-trigger loss-absorbing additional
 
tier 1 capital instruments
10,654
11,414
of which: eligible as low-trigger loss-absorbing additional
 
tier 1 capital instruments
1,187
2,426
Total funding from UBS
 
Group AG measured at amortized cost
1
56,147
57,295
1 UBS AG has also recognized
 
funding from UBS Group AG
 
that is designated at fair
 
value. Refer to Note 18b
 
for more information.
 
UBS AG uses interest rate and foreign exchange derivatives to manage the risks
 
inherent in certain debt instruments held
at amortized cost.
 
In some
 
cases, UBS AG applies
 
hedge accounting
 
for interest rate risk
 
as discussed in
 
item 2j in
 
Note
1a
 
and Note 25.
 
As a result of
 
applying hedge accounting, the life-to-date adjustment to the carrying amount of
Funding
from UBS Group AG measured at amortized cost
 
was a decrease of USD 5.1bn
 
as of 31 December 2022 and an increase
of USD 0.2bn as of 31
 
December 2021,
 
reflecting changes in fair value due to
 
interest rate movements.
Subordinated debt
 
consists of unsecured
 
debt obligations
 
that are contractually subordinated
 
in right of
 
payment to all
other
 
present
 
and
 
future
 
non-subordinated
 
obligations
 
of
 
the
 
respective issuing
 
entity.
 
All
 
of
 
the
 
subordinated
 
debt
instruments outstanding as of
 
31 December 2022 pay a fixed rate of interest.
›
 
Refer to Note 23
 
for maturity information
 
 
Note 15
 
Debt issued designated at fair
 
value
USD m
31.12.22
31.12.21
Issued debt instruments
Equity-linked
1
41,901
47,059
Rates-linked
16,276
16,369
Credit-linked
2,170
1,723
Fixed-rate
6,538
2,868
Commodity-linked
4,294
2,911
Other
663
529
Total debt issued designated
 
at fair value
71,842
71,460
of which: issued by UBS AG with original maturity greater
 
than one year
2
57,750
57,967
1 Includes investment fund unit-linked instruments
 
issued.
 
2 Based on original contractual
 
maturity without considering any early
 
redemption features. As of 31 December 2022,
100
% of the balance was unsecured
(31 December 2021:
100
%).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
414
 
 
Note 16
 
Debt issued measured at amortized
 
cost
USD m
31.12.22
31.12.21
Short-term debt
1
29,676
43,098
Senior unsecured debt
17,892
23,328
of which: issued by UBS AG with original maturity greater
 
than one year
17,892
23,307
Covered bonds
0
1,389
Subordinated debt
2,968
5,163
of which: eligible as low-trigger loss-absorbing tier 2 capital
 
instruments
2,422
2,596
of which: eligible as non-Basel III-compliant tier 2 capital
 
instruments
536
547
Debt issued through the Swiss central mortgage
 
institutions
8,962
9,454
Long-term debt
2
29,823
39,334
Total debt issued
 
measured at amortized cost
3
59,499
82,432
1 Debt with an
 
original contractual maturity
 
of less than one year,
 
includes mainly certificates
 
of deposit and commercial
 
paper.
 
2 Debt with an
 
original contractual
 
maturity greater than
 
or equal to one year.
 
The
classification of
 
debt issued
 
into short
 
-term and
 
long-term does
 
not consider
 
any early
 
redemption
 
features.
 
3 Net
 
of bifurcated
 
embedded
 
derivatives,
 
the fair
 
value of
 
which was
 
not material
 
for the
 
periods
presented.
 
UBS AG uses interest rate and foreign exchange derivatives to manage the risks inherent in certain debt
 
instruments held
at amortized cost.
 
In some
 
cases, UBS AG applies
 
hedge accounting
 
for interest rate risk
 
as discussed in
 
item 2j
 
in Note
1a
 
and Note
 
25.
 
As a
 
result of applying
 
hedge accounting,
 
the life-to-date adjustment
 
to the carrying
 
amount of
 
debt
issued was
 
a decrease of
 
USD
1.0
bn as of
 
31 December 2022
 
and an increase
 
of USD
0.3
bn as of 31
 
December 2021,
reflecting changes in fair value due
 
to interest rate movements.
Subordinated debt
 
consists of unsecured
 
debt obligations
 
that are contractually subordinated
 
in right of
 
payment to all
other
 
present
 
and
 
future
 
non-subordinated
 
obligations
 
of
 
the
 
respective issuing
 
entity.
 
All
 
of
 
the
 
subordinated
 
debt
instruments outstanding as of
 
31 December 2022 pay a fixed rate of inte
 
rest.
›
 
Refer to Note 23
 
for maturity information
 
 
 
Note 17
 
Provisions and contingent liabilities
 
a) Provisions
The table below presents
 
an overview of total provisions.
 
USD m
31.12.22
31.12.21
Provisions other than provisions for expected credit
 
losses
2,982
3,256
Provisions for expected credit losses
1
201
196
Total provisions
3,183
3,452
1 Refer to Note 9 for more information
 
about ECL provisions recognized
 
for off-balance sheet financial
 
instruments and credit lines.
 
The following table presents
 
additional information for provisions
 
other than provisions for expected credit
 
losses.
 
USD m
Litigation,
regulatory and
similar matters
1
Restructuring
Other
3
Total 2022
Balance at the beginning of the
 
year
2,798
137
321
3,256
Increase in provisions recognized in the income statement
406
174
49
629
Release of provisions recognized in the income statement
(57)
(19)
(32)
(109)
Provisions used in conformity with designated purpose
(470)
(189)
(31)
(689)
Capitalized reinstatement costs
0
0
1
1
Foreign currency translation / unwind
 
of discount
(90)
(5)
(11)
(106)
Balance at the end of the year
 
2,586
98
2
297
2,982
1 Consists of provisions
 
for losses resulting
 
from legal, liability
 
and compliance risks.
 
2 Consists of personnel-related
 
restructuring
 
provisions of USD
70
m as of 31 December
 
2022 (31 December
 
2021: USD
90
m)
and provisions for onerous contracts
 
of USD
28
m as of 31 December 2022
 
(31 December 2021: USD
47
m).
 
3 Mainly includes
 
provisions related to real
 
estate, employee benefits and
 
operational risks.
 
Restructuring
 
provisions
 
relate
 
to
 
personnel-related
 
provisions
 
and
 
onerous
 
contracts.
 
Personnel-related
 
restructuring
provisions are
 
generally used
 
within a short
 
period of
 
time. The
 
level of
 
personnel-related
 
provisions
 
can change
 
when
natural
 
staff
 
attrition
 
reduces
 
the
 
number
 
of
 
people
 
affected by
 
a
 
restructuring
 
event,
 
and
 
therefore
 
results
 
in
 
lower
estimated costs. Onerous contracts
 
for property are
 
recognized when UBS is
 
committed to pay
 
for non-lease components,
such as
 
utilities, service
 
charges, taxes
 
and
 
maintenance,
 
when
 
a property
 
is
 
vacated
 
or not
 
fully recovered
 
from sub-
tenants.
 
Information about
 
provisions and
 
contingent liabilities in
 
respect of litigation,
 
regulatory and
 
similar matters,
 
as a class,
is included in Note 17b.
 
There are no material contingent liabilities associated
 
with the other classes of provisions.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
415
 
 
Note 17
 
Provisions and contingent liabilities (continued)
 
b) Litigation, regulatory and
 
similar matters
UBS operates
 
in a legal
 
and regulatory environment
 
that exposes
 
it to significant
 
litigation
 
and similar risks
 
arising from
disputes and regulatory proceedings.
 
As a result, UBS (which
 
for purposes of this Note
 
may refer to UBS AG
 
and/or one
or
 
more
 
of
 
its
 
subsidiaries,
 
as
 
applicable)
 
is
 
involved
 
in
 
various
 
disputes
 
and
 
legal
 
proceedings,
 
including
 
litigation,
arbitration, and regulatory and
 
criminal investigations.
Such
 
matters
 
are
 
subject
 
to
 
many
 
uncertainties,
 
and
 
the
 
outcome
 
and
 
the
 
timing
 
of
 
resolution
 
are
 
often
 
difficult
 
to
predict,
 
particularly
 
in
 
the
 
earlier
 
stages
 
of
 
a
 
case.
 
There
 
are
 
also
 
situations
 
where
 
UBS
 
may
 
enter
 
into
 
a
 
settlement
agreement.
 
This
 
may
 
occur
 
in
 
order
 
to
 
avoid
 
the
 
expense,
 
management
 
distraction
 
or
 
reputational
 
implications
 
of
continuing to
 
contest liability, even
 
for those
 
matters for which
 
UBS
 
believes it should
 
be exonerated.
 
The uncertainties
inherent
 
in all
 
such
 
matters
 
affect
 
the amount
 
and
 
timing
 
of any
 
potential
 
outflows
 
for both
 
matters
 
with
 
respect
 
to
which provisions
 
have been established
 
and other contingent
 
liabilities. UBS
 
makes provisions
 
for such matters brought
against it when, in the
 
opinion of management after
 
seeking legal advice, it is
 
more likely than not that UBS has a
 
present
legal or constructive obligation as a result of past events, it is probable that an outflow of resources
 
will be required, and
the amount
 
can be
 
reliably estimated.
 
Where
 
these factors
 
are otherwise
 
satisfied,
 
a provision
 
may be
 
established
 
for
claims that have not yet been asserted against UBS,
 
but are nevertheless expected to be, based on UBS’s experience with
similar asserted claims. If any of those conditions
 
is not met, such matters result in contingent liabilities. If the amount of
an
 
obligation
 
cannot
 
be
 
reliably
 
estimated,
 
a
 
liability
 
exists
 
that
 
is
 
not
 
recognized
 
even
 
if
 
an
 
outflow
 
of
 
resources
 
is
probable. Accordingly, no provision
 
is established even if the potential outflow of
 
resources with respect to such matters
could
 
be significant.
 
Developments relating
 
to a
 
matter that
 
occur after
 
the relevant
 
reporting
 
period, but
 
prior to
 
the
issuance of
 
financial statements,
 
which affect
 
management’s assessment
 
of the provision
 
for such matter
 
(because, for
example, the developments provide evidence of conditions
 
that existed at the end of the reporting period), are adjusting
events
 
after
 
the
 
reporting
 
period
 
under
 
IAS
 
10
 
and
 
must
 
be
 
recognized
 
in
 
the
 
financial statements
 
for
 
the
 
reporting
period.
Specific
 
litigation,
 
regulatory
 
and
 
other
 
matters
 
are
 
described
 
below,
 
including
 
all
 
such
 
matters
 
that
 
management
considers to
 
be material and
 
others that
 
management believes to
 
be of
 
significance due to
 
potential financial, reputational
and
 
other
 
effects. The
 
amount
 
of damages
 
claimed, the
 
size of
 
a
 
transaction
 
or
 
other information
 
is
 
provided
 
where
available and appropriate in order
 
to assist users in considering
 
the magnitude of potential exposures.
In the case of certain matters below,
 
we state that we have established
 
a provision, and
 
for the other matters, we make
no such
 
statement. When we
 
make this
 
statement and
 
we expect disclosure
 
of the
 
amount of
 
a provision
 
to prejudice
seriously our position with other
 
parties in the matter because it would reveal what UBS
 
believes to be the probable and
reliably estimable
 
outflow, we
 
do not
 
disclose that
 
amount. In
 
some cases
 
we are
 
subject to
 
confidentiality obligations
that preclude
 
such disclosure.
 
With respect
 
to the
 
matters
 
for which
 
we
 
do
 
not state
 
whether we
 
have
 
established
 
a
provision, either: (a) we have
 
not established a
 
provision, in which case the
 
matter is
 
treated as a contingent liability
 
under
the applicable accounting standard;
 
or (b) we have established a provision
 
but expect disclosure of that fact to prejudice
seriously our
 
position with
 
other parties
 
in the matter
 
because it would
 
reveal the
 
fact that UBS
 
believes an
 
outflow of
resources to be probable and reliably estimable.
With respect to certain litigation, regulatory and similar matters for which we have
 
established provisions, we are able to
estimate the expected
 
timing of
 
outflows. However,
 
the aggregate amount
 
of the expected outflows
 
for those
 
matters
for which
 
we are
 
able to
 
estimate expected
 
timing
 
is immaterial
 
relative to
 
our current
 
and
 
expected levels
 
of liquidity
over the relevant time periods.
The aggregate amount provisioned
 
for litigation, regulatory and similar matters as a class is disclosed
 
in the “Provisions”
table in Note 17a above. It
 
is not practicable to provide an aggregate estimate of
 
liability for our litigation, regulatory and
similar matters as a class of contingent liabilities. Doing so would require UBS to provide speculative legal assessments
 
as
to claims
 
and
 
proceedings
 
that involve
 
unique fact
 
patterns or
 
novel legal
 
theories, that have
 
not yet
 
been initiated
 
or
are at early stages of adjudication, or as to which
 
alleged damages have not been quantified by the claimants. Although
UBS
 
therefore cannot
 
provide
 
a numerical estimate
 
of the
 
future losses
 
that could
 
arise from
 
litigation,
 
regulatory and
similar
 
matters,
 
UBS
 
believes
 
that
 
the
 
aggregate
 
amount
 
of
 
possible
 
future
 
losses
 
from
 
this
 
class
 
that
 
are
 
more
 
than
remote substantially exceeds the level of
 
current provisions.
 
Litigation, regulatory
 
and similar matters
 
may also result
 
in non-monetary penalties
 
and consequences.
 
A guilty plea to,
or conviction
 
of, a
 
crime could
 
have material
 
consequences
 
for UBS.
 
Resolution of
 
regulatory proceedings
 
may require
UBS to obtain waivers of regulatory disqualifications
 
to maintain certain operations, may entitle regulatory authorities
 
to
limit,
 
suspend
 
or
 
terminate
 
licenses
 
and
 
regulatory
 
authorizations,
 
and
 
may
 
permit
 
financial
 
market
 
utilities
 
to
 
limit,
suspend or terminate UBS’s
 
participation in such utilities. Failure
 
to obtain such waivers,
 
or any limitation, suspension
 
or
termination of licenses, authorizations
 
or participations, could have material
 
consequences for UBS.
The risk of loss associated with
 
litigation, regulatory and similar
 
matters is a component
 
of operational risk for
 
purposes
of determining capital requirements. Information
 
concerning our capital requirements and
 
the calculation of operational
risk for this purpose is included
 
in the “Capital, liquidity and
 
funding, and balance sheet” section
 
of this report.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
416
 
 
Note 17
 
Provisions and contingent liabilities (continued)
Provisions for litigation, regulatory
 
and similar matters by business division
 
and in Group Functions
1
USD m
Global Wealth
 
Manage-
ment
Personal &
Corporate
Banking
 
Asset
 
Manage-
ment
Investment
 
Bank
Group
Functions
Total 2022
Balance at the beginning of the
 
year
1,338
181
8
310
962
2,798
Increase in provisions recognized in the income statement
268
2
1
129
6
406
Release of provisions recognized in the income statement
(23)
(15)
0
(8)
(12)
(57)
Provisions used in conformity with designated purpose
(331)
0
0
(115)
(23)
(470)
Reclassifications
 
0
 
0
 
0
 
4
 
(4)
 
0
Foreign currency translation / unwind
 
of discount
(70)
(9)
0
(11)
0
(90)
Balance at the end of the year
1,182
159
8
308
928
2,586
1 Provisions, if
 
any, for
 
the matters
 
described in items
 
3 and 4
 
of this Note
 
are recorded in
 
Global Wealth
 
Management, and
 
provisions,
 
if any, for
 
the matters
 
described in item 2
 
are recorded in
 
Group Functions.
Provisions, if any,
 
for the matters described
 
in items 1 and 6
 
of this Note are allocated
 
between Global Wealth
 
Management and Personal
 
& Corporate Banking,
 
provisions, if any,
 
for the matters described
 
in item 5
are allocated between the Investment
 
Bank and Group Functions,
 
and provisions, if
 
any, for the
 
matters described in item 7 are
 
allocated between Global
 
Wealth Management and
 
the Investment Bank.
 
1. Inquiries regarding cross
 
-border wealth management businesses
 
Tax and regulatory authorities in a number of countries have
 
made inquiries, served requests for information or examined
employees located in
 
their respective jurisdictions
 
relating to
 
the cross-border
 
wealth management services
 
provided by
UBS and other financial institutions.
 
Since 2013, UBS (France) S.A., UBS AG and certain former employees have been under investigation in France in relation
to UBS’s cross-border business with French clients. In connection with this investigation, the investigating judges ordered
UBS AG to provide bail
 
(“caution”) of EUR
1.1
bn.
 
On 20 February 2019, the court of
 
first instance returned a
 
verdict finding UBS AG
 
guilty of unlawful
 
solicitation of clients
on French
 
territory and
 
aggravated laundering
 
of the proceeds
 
of tax fraud,
 
and UBS
 
(France) S.A.
 
guilty of
 
aiding and
abetting
 
unlawful
 
solicitation
 
and
 
of
 
laundering
 
the
 
proceeds
 
of
 
tax
 
fraud.
 
The
 
court
 
imposed
 
fines
 
aggregating
EUR
3.7
bn on UBS AG and UBS
 
(France) S.A. and awarded EUR
800
m of civil damages to the French state. A
 
trial in the
French Court of Appeal took
 
place in March 2021. On 13
 
December 2021, the Court of Appeal
 
found UBS AG guilty of
unlawful solicitation and aggravated laundering of the proceeds of tax
 
fraud. The court ordered a fine of EUR
3.75
m, the
confiscation of EUR
1
bn, and awarded civil damages to the
 
French state of EUR
800
m. UBS AG has filed an appeal
 
with
the French Supreme Court to preserve its rights. The notice of appeal enables UBS AG to thoroughly assess the verdict of
the Court
 
of Appeal and
 
to determine next
 
steps in the
 
best interest of
 
its stakeholders. The fine
 
and confiscation imposed
by the
 
Court of
 
Appeal
 
are suspended
 
during the
 
appeal.
 
The civil
 
damages
 
award
 
has been
 
paid
 
to the
 
French state
(EUR
99
m of which was deducted from the bail), subject
 
to the result of UBS’s appeal.
Our
 
balance
 
sheet
 
at
 
31 December
 
2022
 
reflected provisions
 
with
 
respect
 
to
 
this
 
matter
 
in
 
an
 
amount
 
of
 
EUR
1.1
bn
(USD
1.2
bn). The
 
wide range
 
of possible
 
outcomes in
 
this case
 
contributes to
 
a high
 
degree of
 
estimation uncertainty
and the provision reflects our best estimate of
 
possible financial implications, although actual penalties and civil damages
could exceed (or may be less than) the provision
 
amount.
Our balance
 
sheet at 31 December 2022 reflected
 
provisions with respect
 
to matters described
 
in this item
 
1 in an
 
amount
that UBS believes to be appropriate
 
under the applicable accounting
 
standard. As in the case of other matters for which
we have
 
established
 
provisions, the
 
future outflow
 
of resources
 
in respect
 
of such
 
matters cannot
 
be determined
 
with
certainty based
 
on
 
currently available
 
information
 
and
 
accordingly may
 
ultimately prove
 
to be
 
substantially greater
 
(or
may be less) than the provision
 
that we have recognized.
2. Claims related to sales of residential
 
mortgage-backed securities and
 
mortgages
From 2002 through 2007,
 
prior to
 
the crisis
 
in the
 
US residential loan
 
market, UBS was
 
a substantial
 
issuer and underwriter
of US residential mortgage-backed
 
securities (RMBS) and
 
was a purchaser and
 
seller of US residential mortgages.
 
In November 2018, the DOJ filed a
 
civil complaint in the District Court
 
for the Eastern District
 
of New York. The complaint
seeks unspecified civil monetary penalties
 
under the Financial Institutions Reform, Recovery
 
and Enforcement Act of 1989
related to UBS’s
 
issuance, underwriting
 
and sale of 40
 
RMBS transactions in 2006
 
and 2007. UBS
 
moved to dismiss
 
the
civil complaint in February 2019.
 
In December 2019, the district court denied
 
UBS’s motion to dismiss.
 
Our
 
balance
 
sheet
 
at
 
31 December
 
2022
 
reflected a
 
provision
 
with
 
respect
 
to
 
matters
 
described
 
in
 
this
 
item
 
2
 
in
 
an
amount that
 
UBS believes
 
to be
 
appropriate under
 
the applicable accounting
 
standard. As
 
in the case
 
of other matters
for which we have established provisions, the future outflow of resources in respect of this matter cannot be determined
with certainty based
 
on currently available
 
information and
 
accordingly may ultimately
 
prove to
 
be substantially greater
(or may be less) than the provision
 
that we have recognized.
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
417
 
 
Note 17
 
Provisions and contingent liabilities (continued)
3. Madoff
In relation to the Bernard L. Madoff
 
Investment Securities LLC (BMIS) investment fraud,
 
UBS AG, UBS (Luxembourg) S.A.
(now UBS Europe SE, Luxembourg branch) and certain other UBS subsidiaries have been subject to inquiries by a number
of regulators,
 
including the
 
Swiss Financial Market
 
Supervisory Authority
 
(FINMA) and
 
the Luxembourg
 
Commission de
Surveillance du
 
Secteur Financier.
 
Those
 
inquiries concerned
 
two third
 
-party funds
 
established under
 
Luxembourg law,
substantially all assets of
 
which were with BMIS,
 
as well as certain
 
funds established
 
in offshore jurisdictions
 
with either
direct or indirect
 
exposure to
 
BMIS. These
 
funds faced
 
severe losses,
 
and the
 
Luxembourg
 
funds are in
 
liquidation. The
documentation
 
establishing
 
both
 
funds
 
identifies
 
UBS
 
entities
 
in
 
various
 
roles,
 
including
 
custodian,
 
administrator,
manager,
 
distributor and promoter,
 
and indicates that UBS employees
 
serve as board members.
In 2009
 
and 2010, the
 
liquidators of the
 
two Luxembourg fund
 
s
 
filed claims against
 
UBS entities, non
 
-UBS entities and
certain
 
individuals,
 
including
 
current
 
and
 
former UBS
 
employees,
 
seeking
 
amounts
 
totaling
 
approximately
 
EUR
2.1
bn,
which includes amounts that the funds
 
may be held liable to pay the trustee for the
 
liquidation of BMIS
 
(BMIS Trustee).
A large number of alleged beneficiaries have filed claims against UBS entities (and non
 
-UBS entities) for purported losses
relating to the Madoff fraud. The majority of these cases have been filed in Luxembourg, where decisions that the claims
in
 
eight
 
test
 
cases
 
were
 
inadmissible
 
have
 
been
 
affirmed
 
by
 
the
 
Luxembourg
 
Court
 
of
 
Appeal,
 
and
 
the
 
Luxembourg
Supreme Court has dismissed
 
a further appeal in one of the
 
test cases.
In the US, the BMIS Trustee filed claims
 
against UBS entities, among others, in relation to the two Luxembourg funds and
one of the offshore
 
funds. The total amount claimed against
 
all defendants in these
 
actions was not less than USD
2
bn.
In 2014,
 
the US
 
Supreme
 
Court rejected
 
the BMIS
 
Trustee’s
 
motion
 
for
 
leave to
 
appeal
 
decisions
 
dismissing
 
all claims
except
 
those
 
for
 
the
 
recovery
 
of
 
approximately
 
USD
125
m
 
of
 
payments
 
alleged
 
to
 
be
 
fraudulent
 
conveyances
 
and
preference payments.
 
In 2016,
 
the bankruptcy court
 
dismissed these
 
claims against
 
the UBS
 
entities. In
 
February 2019,
the
 
Court
 
of
 
Appeals
 
reversed
 
the
 
dismissal
 
of
 
the
 
BMIS
 
Trustee’s
 
remaining
 
claims,
 
and
 
the
 
US
 
Supreme
 
Court
subsequently
 
denied
 
a petition
 
seeking
 
review of
 
the Court
 
of Appeals’
 
decision.
 
The case
 
has been
 
remanded
 
to the
Bankruptcy
 
Court for further proceedings.
4. Puerto Rico
Declines since 2013
 
in the market
 
prices of Puerto
 
Rico municipal
 
bonds
 
and of closed-end
 
funds (funds)
 
that are sole-
managed and co-managed by UBS
 
Trust Company of
 
Puerto Rico and distributed by UBS Financial Services Incorporated
of Puerto Rico (UBS
 
PR) led to multiple
 
regulatory inquiries, which
 
in 2014 and
 
2015, led to settlements
 
with the Office
of
 
the
 
Commissioner
 
of
 
Financial Institutions
 
for
 
the
 
Commonwealth
 
of
 
Puerto
 
Rico,
 
the
 
US Securities
 
and
 
Exchange
Commission (SEC) and
 
the Financial Industry Regulatory Authority.
Since then,
 
UBS
 
clients in
 
Puerto Rico
 
who own
 
the funds
 
or Puerto
 
Rico municipal
 
bonds
 
and/or who
 
used
 
their UBS
account
 
assets
 
as
 
collateral
 
for
 
UBS
 
non-purpose
 
loans
 
filed
 
customer
 
complaints
 
and
 
arbitration
 
demands
 
seeking
aggregate
 
damages
 
of
 
USD
3.42
bn,
 
of
 
which
 
USD
3.37
bn
 
have
 
been
 
resolved
 
through
 
settlements,
 
arbitration
 
or
withdrawal of claims. Allegations
 
include fraud, misrepresentation and
 
unsuitability of the funds and of the
 
loans.
A shareholder derivative action was filed in 2014 against
 
various UBS entities and current and certain former directors of
the funds,
 
alleging hundreds of
 
millions of US
 
dollars in
 
losses in
 
the funds. In 2021,
 
the parties reached
 
an agreement
to settle this matter for USD
15
m, subject to court approval.
 
In 2011, a purported derivative action was filed on
 
behalf of the Employee Retirement System of
 
the Commonwealth of
Puerto Rico (System) against over
 
40 defendants, including UBS PR,
 
which was named in
 
connection with its underwriting
and
 
consulting
 
services.
 
Plaintiffs
 
alleged
 
that
 
defendants
 
violated
 
their
 
purported
 
fiduciary
 
duties
 
and
 
contractual
obligations in
 
connection with
 
the issuance
 
and underwriting
 
of USD
3
bn of
 
bonds by the
 
System in 2008
 
and sought
damages of over USD
800
m. In 2016, the
 
court granted the System’s request to
 
join the action as a plaintiff. In
 
2022, a
federal district
 
court enjoined
 
the plaintiffs
 
from proceeding
 
with the action
 
on the
 
grounds it
 
impermissibly conflicted
with Puerto Rico’s approved
 
Plan of Adjustment.
Beginning
 
in
 
2015,
 
certain agencies
 
and
 
public corporations
 
of
 
the
 
Commonwealth
 
of
 
Puerto
 
Rico
 
(Commonwealth)
defaulted on certain interest
 
payments on Puerto Rico
 
bonds. In 2016,
 
US federal legislation created
 
an oversight board
with power to oversee Puerto
 
Rico’s finances and to restructure
 
its debt. The oversight
 
board has imposed
 
a stay on the
exercise
 
of
 
certain
 
creditors’
 
rights.
 
In
 
2017,
 
the
 
oversight
 
board
 
placed
 
certain
 
of
 
the
 
bonds
 
into
 
a
 
bankruptcy-like
proceeding under the supervision
 
of a Federal District Judge.
 
In May 2019,
 
the oversight board
 
filed complaints in
 
Puerto Rico
 
federal district court
 
bringing claims against
 
financial,
legal and accounting firms that had participated in Puerto
 
Rico municipal bond offerings, including UBS, seeking a return
of
 
underwriting
 
and
 
swap
 
fees
 
paid
 
in
 
connection
 
with
 
those
 
offerings.
 
UBS
 
estimates that
 
it received
 
approximately
USD
125
m in fees in the relevant offerings.
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
418
 
 
Note 17
 
Provisions and contingent liabilities (continued)
In
 
August
 
2019,
 
and
 
February and
 
November
 
2020,
 
four
 
US
 
insurance
 
companies
 
that
 
insured
 
issues
 
of
 
Puerto
 
Rico
municipal bonds
 
sued UBS
 
and several other
 
underwriters of
 
Puerto Rico
 
municipal
 
bonds
 
in three
 
separate cases.
 
The
actions collectively seek recovery
 
of an aggregate of USD
955
m in damages from the defendants.
 
The plaintiffs in these
cases claim that defendants failed to reasonably
 
investigate financial statements
 
in the offering materials for the insured
Puerto
 
Rico
 
bonds
 
issued
 
between
 
2002
 
and
 
2007,
 
which plaintiffs
 
argue
 
they
 
relied
 
upon
 
in
 
agreeing
 
to
 
insure
 
the
bonds notwithstanding
 
that they had no contractual relationship
 
with the underwriters. Defendants’
 
motions to dismiss
have been granted in all three
 
cases; those decisions are being
 
appealed by the plaintiffs.
Our balance sheet at 31 December 2022
 
reflected provisions with respect to matters described in
 
this item 4 in amounts
that UBS believes to be appropriate
 
under the applicable accounting
 
standard. As
 
in the case of other matters for which
we have
 
established
 
provisions, the
 
future outflow
 
of resources
 
in respect
 
of such
 
matters cannot
 
be determined
 
with
certainty based
 
on
 
currently available
 
information
 
and
 
accordingly may
 
ultimately prove
 
to be
 
substantially greater
 
(or
may be less) than the provisions
 
that we have recognized.
5. Foreign exchange, LIBOR
 
and benchmark rates, and other trading practices
Foreign
 
exchange-related
 
regulatory
 
matters:
 
Beginning
 
in
 
2013,
 
numerous
 
authorities
 
commenced
 
investigations
concerning
 
possible
 
manipulation
 
of
 
foreign
 
exchange
 
markets
 
and
 
precious
 
metals
 
prices.
 
As
 
a
 
result
 
of
 
these
investigations,
 
UBS
 
entered
 
into
 
resolutions
 
with
 
Swiss,
 
US
 
and
 
United
 
Kingdom
 
regulators
 
and
 
the
 
European
Commission.
 
UBS
 
was
 
granted
 
conditional
 
immunity by
 
the
 
Antitrust
 
Division
 
of
 
the
 
DOJ
 
and
 
by
 
authorities
 
in
 
other
jurisdictions
 
in connection
 
with potential
 
competition
 
law violations
 
relating
 
to foreign
 
exchange and
 
precious
 
metals
businesses.
Foreign exchange-related civil litigation:
 
Putative class actions have been filed
 
since 2013 in
 
US federal courts and in
 
other
jurisdictions
 
against
 
UBS
 
and
 
other
 
banks
 
on
 
behalf
 
of
 
putative
 
classes
 
of
 
persons
 
who
 
engaged
 
in
 
foreign
 
currency
transactions with any of the defendant banks. UBS has resolved US federal
 
court class actions relating to
 
foreign currency
transactions
 
with the
 
defendant
 
banks and
 
persons
 
who transacted
 
in foreign
 
exchange futures
 
contracts and
 
options
on
 
such futures
 
under
 
a settlement
 
agreement
 
that
 
provides
 
for
 
UBS
 
to
 
pay
 
an aggregate
 
of
 
USD
141
m
 
and
 
provide
cooperation to
 
the settlement classes.
 
Certain class
 
members have
 
excluded themselves
 
from that settlement
 
and have
filed individual
 
actions
 
in US
 
and
 
English
 
courts against
 
UBS
 
and
 
other banks,
 
alleging
 
violations
 
of US
 
and
 
European
competition
 
laws and
 
unjust
 
enrichment. UBS
 
and
 
the other
 
banks have
 
reached
 
an agreement
 
in principle
 
to resolve
those individual matters.
In 2015,
 
a putative class action
 
was filed
 
in federal
 
court against UBS
 
and numerous
 
other banks
 
on behalf
 
of persons
and businesses
 
in the US
 
who directly purchased
 
foreign currency from
 
the defendants
 
and alleged
 
co-conspirators for
their own end use. In March 2017, the court granted UBS’s (and the other
 
banks’) motions to dismiss the complaint. The
plaintiffs
 
filed
 
an
 
amended
 
complaint
 
in
 
August
 
2017.
 
In
 
March
 
2018,
 
the
 
court
 
denied
 
the
 
defendants’
 
motions
 
to
dismiss the amended complaint. In March
 
2022, the court denied
 
plaintiffs’ motion for class certification.
LIBOR
 
and
 
other
 
benchmark-related
 
regulatory
 
matters:
 
Numerous
 
government
 
agencies
 
conducted
 
investigations
regarding potential improper attempts by UBS, among others, to manipulate LIBOR
 
and other benchmark rates at certain
times.
 
UBS
 
reached
 
settlements
 
or
 
otherwise
 
concluded
 
investigations
 
relating
 
to
 
benchmark
 
interest
 
rates
 
with
 
the
investigating
 
authorities.
 
UBS
 
was
 
granted
 
conditional
 
leniency
 
or
 
conditional
 
immunity
 
from
 
authorities
 
in
 
certain
jurisdictions, including
 
the Antitrust Division of
 
the DOJ and
 
the Swiss Competition Commission
 
(WEKO), in connection
with
 
potential
 
antitrust
 
or
 
competition
 
law
 
violations
 
related
 
to
 
certain
 
rates.
 
However,
 
UBS
 
has
 
not
 
reached
 
a
 
final
settlement with WEKO, as the Secretariat of
 
WEKO has asserted that UBS
 
does not qualify for full immunity.
LIBOR and
 
other benchmark-related
 
civil litigation:
 
A number
 
of putative class
 
actions and
 
other actions are
 
pending in
the federal
 
courts in
 
New York
 
against UBS
 
and numerous
 
other banks
 
on behalf
 
of parties
 
who
 
transacted in
 
certain
interest rate benchmark-based derivatives. Also pending in the
 
US and in
 
other jurisdictions are a number
 
of other actions
asserting losses
 
related to various
 
products whose
 
interest rates were
 
linked to
 
LIBOR and
 
other benchmarks, including
adjustable
 
rate
 
mortgages,
 
preferred
 
and
 
debt
 
securities,
 
bonds
 
pledged
 
as
 
collateral,
 
loans,
 
depository
 
accounts,
investments
 
and
 
other
 
interest-bearing
 
instruments.
 
The
 
complaints
 
allege
 
manipulation,
 
through
 
various
 
means,
 
of
certain benchmark interest
 
rates, including USD LIBOR, Euroyen TIBOR,
 
Yen LIBOR, EURIBOR, CHF LIBOR, GBP
 
LIBOR, SGD
SIBOR
 
and
 
SOR
 
and
 
Australian
 
BBSW,
 
and
 
seek
 
unspecified
 
compensatory
 
and
 
other
 
damages
 
under
 
varying
 
legal
theories.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
419
 
 
Note 17
 
Provisions and contingent liabilities (continued)
USD LIBOR class and individual actions in the
 
US:
In 2013 and 2015,
 
the district court
 
in the USD LIBOR actions dismissed,
in whole
 
or in
 
part, certain
 
plaintiffs’ antitrust
 
claims, federal
 
racketeering
 
claims, CEA
 
claims, and
 
state common
 
law
claims,
 
and
 
again
 
dismissed
 
the
 
antitrust
 
claims
 
in
 
2016
 
following
 
an
 
appeal.
 
In
 
December 2021,
 
the
 
Second
 
Circuit
affirmed
 
the
 
district
 
court’s
 
dismissal
 
in
 
part
 
and
 
reversed
 
in
 
part
 
and
 
remanded
 
to
 
the
 
district
 
court
 
for
 
further
proceedings. The Second
 
Circuit, among other
 
things, held that
 
there was
 
personal jurisdiction
 
over UBS
 
and other foreign
defendants
 
based
 
on
 
allegations that
 
at least
 
one
 
alleged co
 
-conspirator
 
undertook
 
an overt
 
act in
 
the United
 
States.
Separately,
 
in 2018,
 
the Second
 
Circuit reversed
 
in part
 
the district
 
court’s
 
2015
 
decision dismissing
 
certain individual
plaintiffs’ claims
 
and certain
 
of these
 
actions are
 
now proceeding.
 
In 2018,
 
the district
 
court denied
 
plaintiffs’
 
motions
for class certification in the USD
 
class actions for claims pending
 
against UBS, and plaintiffs sought
 
permission to appeal
that ruling to the
 
Second Circuit. In July
 
2018, the Second Circuit
 
denied the petition
 
to appeal of the
 
class of USD lenders
and in November 2018 denied
 
the petition of the USD exchange class. In January 2019,
 
a putative class action was filed
in
 
the
 
District
 
Court
 
for
 
the
 
Southern
 
District
 
of
 
New
 
York
 
against
 
UBS
 
and
 
numerous
 
other
 
banks
 
on
 
behalf
 
of
 
US
residents who, since
 
1 February 2014, directly
 
transacted with
 
a defendant bank
 
in USD LIBOR instruments.
 
The complaint
asserts antitrust claims.
 
The defendants moved to
 
dismiss the complaint in
 
August 2019. In March
 
2020 the court
 
granted
defendants’
 
motion to
 
dismiss the
 
complaint
 
in its
 
entirety. Plaintiffs
 
have appealed
 
the dismissal.
 
In March
 
2022,
 
the
Second
 
Circuit dismissed
 
the appeal
 
because appellants,
 
who
 
had been
 
substituted in
 
to replace
 
the original
 
plaintiffs
who had withdrawn, lacked standing
 
to pursue the appeal.
 
In August 2020, an
 
individual action was filed
 
in the Northern
District of
 
California against
 
UBS
 
and
 
numerous
 
other banks
 
alleging that
 
the defendants
 
conspired
 
to fix the
 
interest
rate used
 
as
 
the
 
basis
 
for
 
loans
 
to
 
consumers by
 
jointly setting
 
the
 
USD LIBOR
 
rate
 
and
 
monopolized
 
the
 
market for
LIBOR-based
 
consumer
 
loans
 
and
 
credit
 
cards.
 
Defendants
 
moved
 
to
 
dismiss
 
the
 
complaint
 
in
 
September
 
2021.
 
In
September 2022, the court
 
granted defendants’ motion
 
to dismiss the complaint
 
in its entirety, while
 
allowing plaintiffs
the opportunity
 
to file an
 
amended
 
complaint. Plaintiffs
 
filed an
 
amended complaint
 
in October
 
2022,
 
and defendants
have moved to dismiss the amended
 
complaint in November 2022
 
.
Other benchmark class actions in the
 
US:
 
Yen
 
LIBOR
 
/
 
Euroyen
 
TIBOR
 
–
In 2014,
 
2015
 
and
 
2017,
 
the court
 
in
 
one
 
of
 
the
 
Yen
 
LIBOR
 
/
 
Euroyen
 
TIBOR
 
lawsuits
dismissed
 
certain
 
of
 
the
 
plaintiffs’
 
claims,
 
including
 
the
 
plaintiffs’
 
federal antitrust
 
and
 
racketeering
 
claims. In
 
August
2020,
 
the court granted
 
defendants’ motion
 
for judgment
 
on the pleadings
 
and dismissed the
 
lone remaining
 
claim in
the action as
 
impermissibly extraterritorial. In October
 
2022, the appeals court
 
affirmed the dismissal
 
on multiple grounds.
In 2017,
 
the court
 
dismissed the
 
other Yen
 
LIBOR
 
/ Euroyen
 
TIBOR action
 
in its
 
entirety
 
on
 
standing
 
grounds.
 
In April
2020, the
 
appeals court reversed
 
the dismissal and
 
in August
 
2020 plaintiffs in
 
that action filed
 
an amended
 
complaint
focused
 
on
 
Yen
 
LIBOR.
 
The
 
court
 
granted
 
in
 
part
 
and
 
denied
 
in
 
part
 
defendants’
 
motion
 
to
 
dismiss
 
the
 
amended
complaint in
 
September 2021.
 
In August
 
2022, the
 
court granted
 
UBS’s motion
 
for reconsideration
 
and dismissed
 
the
case against UBS.
 
CHF LIBOR
 
– In 2017, the court
 
dismissed the CHF LIBOR action on standing grounds
 
and failure to state
 
a claim. Plaintiffs
filed an amended complaint, and the court granted a
 
renewed motion to dismiss in September 2019. Plaintiffs appealed.
In September 2021, the Second Circuit granted
 
the parties’ joint motion to vacate the dismissal and remand the case for
further proceedings. Plaintiffs filed a third amended complaint in November 2022 and defendants have moved
 
to dismiss
the amended complaint in January 2023
 
.
EURIBOR
 
– In 2017, the court in the EURIBOR
 
lawsuit dismissed the case as to UBS and certain other foreign
 
defendants
for lack of personal jurisdiction. Plaintiffs
 
have appealed.
 
SIBOR / SOR
 
– In October 2018, the court
 
in the SIBOR / SOR action
 
dismissed all but one of plaintiffs’
 
claims against UBS.
Plaintiffs
 
filed
 
an
 
amended
 
complaint,
 
and
 
the
 
court
 
granted
 
a
 
renewed
 
motion
 
to
 
dismiss
 
in
 
July
 
2019.
 
Plaintiffs
appealed.
 
In March
 
2021,
 
the Second
 
Circuit reversed
 
the dismissal.
 
Plaintiffs
 
filed
 
an amended
 
complaint in
 
October
2021, which defendants moved to dismiss in November 2021. In March 2022, plaintiffs reached a settlement in principle
with the remaining defendants,
 
including UBS. The court granted
 
final approval of the settlement in November 2022.
 
BBSW
 
– In
 
November 2018,
 
the court
 
dismissed the
 
BBSW lawsuit
 
as to
 
UBS
 
and certain other
 
foreign
 
defendants for
lack of personal jurisdiction. Plaintiffs filed an amended complaint
 
in April 2019, which UBS and other
 
defendants moved
to dismiss in
 
May 2019.
 
In February 2020,
 
the court granted
 
in part and
 
denied in part defendants’
 
motions to
 
dismiss
the
 
amended
 
complaint.
 
In
 
August
 
2020,
 
UBS
 
and
 
other
 
BBSW
 
defendants
 
joined
 
a
 
motion
 
for
 
judgment
 
on
 
the
pleadings, which
 
the court denied
 
in May
 
2021.
 
In February 2022,
 
plaintiffs reached
 
a settlement
 
in principle
 
with the
remaining defendants, including
 
UBS. The court granted final approval of
 
the settlement in
 
November 2022.
GBP LIBOR – The court dismissed the GBP
 
LIBOR action in August
 
2019. Plaintiffs have appealed.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
420
 
 
Note 17
 
Provisions and contingent liabilities (continued)
Government bonds:
 
Putative class actions
 
have been
 
filed since 2015
 
in US
 
federal courts against
 
UBS and other
 
banks
on behalf
 
of persons
 
who participated
 
in markets
 
for US
 
Treasury securities
 
since 2007.
 
A consolidated
 
complaint was
filed in 2017 in the US District Court for the Southern
 
District of New York alleging that the banks
 
colluded with respect
to, and
 
manipulated
 
prices of,
 
US Treasury
 
securities sold
 
at auction
 
and in
 
the secondary
 
market and
 
asserting claims
under
 
the
 
antitrust laws
 
and
 
for unjust
 
enrichment. Defendants’
 
motions
 
to dismiss
 
the
 
consolidated
 
complaint
 
were
granted
 
in
 
March
 
2021.
 
Plaintiffs filed
 
an
 
amended
 
complaint,
 
which
 
defendants
 
moved
 
to
 
dismiss
 
in
 
June
 
2021.
 
In
March
 
2022,
 
the
 
court granted
 
defendants’
 
motion
 
to
 
dismiss
 
that
 
complaint.
 
Plaintiffs
 
have
 
appealed
 
the
 
dismissal.
Similar class actions have been
 
filed concerning European government
 
bonds and other government bonds.
In May 2021, the European Commission
 
issued a decision finding that UBS
 
and six other
 
banks breached European Union
antitrust rules in 2007–2011
 
relating to European government
 
bonds. The European
 
Commission fined UBS EUR
172
m.
UBS is appealing the
 
amount of the fine.
With respect
 
to additional
 
matters and
 
jurisdictions not
 
encompassed by
 
the settlements and
 
orders referred
 
to above,
our balance
 
sheet at
 
31 December
 
2022
 
reflected a provision
 
in an
 
amount that
 
UBS believes
 
to be
 
appropriate under
the applicable accounting standard.
 
As in the case of other matters for which we have
 
established provisions, the
 
future
outflow
 
of
 
resources
 
in
 
respect
 
of
 
such
 
matters
 
cannot
 
be
 
determined
 
with
 
certainty
 
based
 
on
 
currently
 
available
information and accordingly may
 
ultimately prove to be
 
substantially greater (or may
 
be less) than the provision
 
that we
have recognized.
6. Swiss retrocessions
The Federal Supreme Court
 
of Switzerland ruled in
 
2012, in
 
a test case against UBS, that distribution
 
fees paid to a firm
for distributing third-party and intra-group investment funds and structured products
 
must be disclosed and surrendered
to clients who have entered
 
into a discretionary
 
mandate agreement with
 
the firm, absent
 
a valid waiver.
 
FINMA issued
a supervisory note
 
to all Swiss
 
banks in response
 
to the Supreme
 
Court decision. UBS
 
has met the
 
FINMA requirements
and has notified all potentially affected
 
clients.
The Supreme Court decision
 
has resulted, and continues to result, in a number of
 
client requests for UBS to disclose and
potentially
 
surrender
 
retrocessions.
 
Client
 
requests
 
are
 
assessed
 
on
 
a
 
case-by-case
 
basis.
 
Considerations
 
taken
 
into
account when assessing
 
these cases include, among other things, the
 
existence of a discretionary mandate and whether
or not the client documentation
 
contained a valid waiver with respect
 
to distribution fees.
Our
 
balance
 
sheet
 
at
 
31 December
 
2022
 
reflected a
 
provision
 
with
 
respect
 
to
 
matters
 
described
 
in
 
this
 
item
 
6
 
in
 
an
amount that UBS believes
 
to be appropriate under the
 
applicable accounting standard. The
 
ultimate exposure will depend
on client requests and the resolution thereof, factors
 
that are difficult to predict
 
and assess. Hence, as in the case of other
matters for which
 
we have established
 
provisions, the
 
future outflow of
 
resources in respect
 
of such
 
matters cannot be
determined
 
with
 
certainty
 
based
 
on
 
currently
 
available
 
information
 
and
 
accordingly
 
may
 
ultimately
 
prove
 
to
 
be
substantially greater (or may be less) than
 
the provision that we have recognized.
7. Communications recordkeeping
The SEC
 
and CFTC
 
conducted investigations
 
of UBS
 
and other
 
financial institutions
 
regarding
 
compliance with
 
records
preservation
 
requirements
 
relating
 
to
 
business
 
communications
 
sent
 
over
 
unapproved
 
electronic
 
messaging
 
channels.
UBS
 
cooperated
 
with
 
the
 
investigations,
 
and,
 
in
 
September
 
2022,
 
UBS
 
agreed
 
to
 
pay
 
civil
 
monetary
 
penalties
 
of
USD
125
m to the SEC and USD
75
m to the CFTC to resolve these matters.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
421
 
 
Note 18
 
Other liabilities
 
a) Other financial liabilities
 
measured at amortized cost
USD m
31.12.22
31.12.21
Other accrued expenses
1,564
1,642
Accrued interest expenses
2,008
1,134
Settlement and clearing accounts
1,060
1,282
Lease liabilities
3,211
3,438
Other
2,549
2,269
Total other financial liabilities
 
measured at amortized cost
10,391
9,765
 
 
b) Other financial liabilities
 
designated at fair value
USD m
31.12.22
31.12.21
Financial liabilities related to unit-linked investment
 
contracts
13,221
21,466
Securities financing transactions
15,333
6,377
Over-the-counter debt instruments and other
1,684
2,231
Funding from UBS Group AG
 
1,796
2,340
Total other financial liabilities designated
 
at fair value
32,033
32,414
 
 
c) Other non-financial liabilities
 
USD m
31.12.22
31.12.21
Compensation-related liabilities
4,424
4,795
of which: financial advisor compensation plans
1,463
1,512
of which: other compensation plans
2,023
2,140
of which: net defined benefit liability
449
617
of which: other compensation-related liabilities
1
490
526
Current tax liabilities
1,044
1,365
Deferred tax liabilities
233
297
VAT,
 
withholding tax and other tax payables
472
524
Deferred income
233
225
Liabilities of disposal group held for sale
2
1,298
Other
84
68
Total other non-financial
 
liabilities
 
6,489
8,572
1 Includes liabilities for payroll
 
taxes and untaken vacation.
 
2 Refer to Note 29 for
 
more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
422
 
Additional information
Note 19
 
Expected credit loss measurement
 
 
a) Expected credit losses in the period
Total
 
net credit loss expenses
 
were USD
29
m in 2022, reflecting
 
net credit loss expenses
 
of USD
29
m related to stage 1
and 2 positions and USD
0
m net credit loss expenses related to credit-impaired
 
(stage 3) positions.
Stage 1
 
and
 
2
 
expected
 
credit
 
loss
 
(ECL)
 
expenses
 
of
 
USD
29
m
 
include
 
USD
123
m
 
expenses
 
related
 
to
 
scenario
 
and
parameter updates
 
and USD
13
m related to
 
other book quality and
 
size changes, partly offset
 
by USD
77
m post-model
adjustment (PMA) releases and
 
USD
30
m releases related to model changes. Lending to corporate clients not secured
 
by
mortgages contributed USD
21
m, mainly driven by scenario effects related to the
 
downward revision of GDP and
 
higher
interest rate
 
assumptions
 
in the
 
newly
 
introduced
stagflationary
 
geopolitical
 
crisis
 
scenario
 
(SGC).
 
Lending
 
secured
 
by
mortgages
 
contributed
 
USD
 
16
m
 
in
 
expenses
,
 
mainly
 
driven
 
by
 
scenario
 
ef
fects
 
related
 
to
 
higher
 
interest
 
rate
assumptions,
 
especially from the SGC, and adverse house price assumptions
 
from both applied downside scenarios.
 
This
was partly offset by releases from other lending
 
of USD
9
m.
›
 
Refer to Note 19b
 
for more information
 
regarding changes
 
to ECL models,
 
scenarios, scenario
 
weights and the
 
post-model
adjustment and to
 
Note 19c
 
for more information
 
regarding the development
 
of ECL allowances
 
and provisions
Stage 3 net expenses of USD
0
m were recognized across
 
a number of
 
defaulted positions, with net expenses of
 
USD
12
m
in Personal
 
and Corporate
 
Banking
 
and USD
5
m in
 
Global Wealth
 
Management,
 
offset by
 
releases of
 
USD
18
m in
 
the
Investment Bank, including a USD
28
m release for a single airline-related counterparty, mainly due to improved cashflow
assumptions, and USD
10
m net expenses across a number of defaulted positions.
 
 
Credit loss expense
 
/ (release)
USD m
Global
 
Wealth
 
Management
Personal &
 
Corporate
 
Banking
Asset
Management
Investment
 
Bank
Group
 
Functions
Total
For the year ended
 
31.12.22
Stages 1 and 2
(5)
27
0
6
1
29
Stage 3
5
12
0
(18)
2
0
Total credit loss expense /
 
(release)
0
39
0
(12)
3
29
For the year ended
 
31.12.21
Stages 1 and 2
(28)
(62)
0
(34)
0
(123)
Stage 3
(1)
(24)
1
0
0
(25)
Total credit loss expense /
 
(release)
(29)
(86)
1
(34)
0
(148)
For the year ended
 
31.12.20
Stages 1 and 2
48
129
0
88
0
266
Stage 3
40
128
2
217
42
429
Total credit loss expense /
 
(release)
88
257
2
305
42
695
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
423
 
 
Note 19
 
Expected credit loss measurement (continued)
 
b) Changes to ECL models,
 
scenarios, scenario
 
weights and key inputs
 
Refer
 
to
 
Note 1a for
 
information about
 
the
 
principles governing
 
expected
 
credit
 
loss (ECL)
 
models, scenarios,
 
scenario
weights and key inputs
 
applied.
 
Governance
Comprehensive cross-functional
 
and cross-divisional
 
governance processes
 
are in
 
place and
 
are used to
 
discuss and
 
approve
scenario updates and
 
weights, to
 
assess whether significant increases
 
in credit
 
risk resulted in
 
stage transfers, to
 
review
model outputs and to reach
 
conclusions regarding
 
post-model adjustments.
 
Model changes
During 2022, the model review and enhancement process led to adjustments
 
of the probability of default (PD), loss given
default (LGD), and
 
credit conversion factor
 
(CCF) models, resulting
 
in a USD
30
m decrease in
 
ECL allowances.
 
This includes
a
 
decrease of
 
USD
19
m
 
in Global
 
Wealth Management
 
affecting loans
 
to
 
financial advisors and
 
specialized US
 
lending
portfolios and
 
an USD
11
m decrease
 
in Personal
 
& Corporate
 
Banking
 
related to
 
lending to
large corporate clients
 
and
financial intermediaries
 
& hedge funds
.
 
Scenario and key input
 
updates
During 2022, the scenarios
 
and related macroeconomic factors were updated
 
from those applied
 
at the end of
 
2021 by
considering the
 
prevailing economic
 
and
 
political conditions
 
and
 
uncertainty. The review
 
focused
 
on events
 
that
 
significantly
changed the
 
economic
 
outlook during
 
the
 
year: the
 
Russia–Ukraine
 
war, with the subsequent
 
effect on
 
energy markets,
 
the
inflation outlook and economic growth in Europe, and rising global interest rates due to central banks’ adoption of more
restrictive monetary
 
policies.
Baseline scenario
: the
 
projections
 
of the
 
baseline scenario,
 
which are
 
aligned to
 
the economic
 
and market
 
assumptions
 
used
for UBS AG’s business planning purposes, are broadly
 
in line with external data, such as that from Bloomberg Consensus,
Oxford Economics and the International
 
Monetary Fund World Economic
 
Outlook. The expectation for
 
2023 is that global
growth stalls
 
under the
 
weight of
 
monetary
 
policy tightening,
 
and continued
 
pressure on
 
real purchasing
 
power due
 
to high
inflation – further fueled in Europe by the energy crisis and a lack of labor supply – even though unemployment rates are
forecast to be higher than in 2022 and an energy crisis in
 
Europe seems likely to be averted. Interest rates
 
are expected to
remain high,
 
given the persistence
 
of inflationary trends,
 
leading to a less
 
optimistic outlook for
 
global house prices,
 
which
is cushioned in Switzerland
 
by continued strong
 
demand.
 
Global crisis
 
scenario:
The first
 
hypothetical
 
downside scenario,
 
the global crisis
 
scenario, is
 
aligned with
 
the UBS AG’s
 
2022
binding stress scenario and was
 
updated in 2022
 
to reflect expected risks, resulting in
 
minimal changes. It assumes that,
while the
 
global economy
 
has returned to
 
pre-pandemic levels
 
and the immediate
 
risks
 
from COVID-19
 
have decreased,
 
the
associated disruptions
 
and
 
the
 
consequences of
 
the unprecedented
 
monetary and
 
fiscal stimulus
 
measures will
 
remain
critical. Concerns regarding
 
the sustainability
 
of public debt, following the marked deterioration
 
of fiscal positions, lead to
a loss
 
of confidence and
 
market turbulence, while protectionism results in
 
a decrease
 
in global
 
trade. Governments and
central banks have limited scope
 
to support the economies,
 
and interest rate levels remain moderate. As a
 
consequence,
China
 
suffers a
 
hard landing
 
which,
 
combined with
 
political, solvency and
 
liquidity concerns,
 
affects emerging
 
markets
significantly. A
 
spillover
 
effect
 
leads
 
to
 
a
 
contraction of
 
the
 
Eurozone,
 
Swiss
 
and
 
US
 
economies,
 
as
 
global
 
demand
 
is
significantly affected.
 
Given the
 
severity of the
 
macroeconomic
 
impact, unemployment
 
rates rise to
 
historical highs
 
and real
estate sectors contract
 
sharply.
Stagflationary
 
geopolitical
 
crisis
 
scenario:
The
 
second
 
downside
 
scenario
 
was
 
changed
 
during
 
2022.
 
In
 
light
 
of
 
the
developments caused by Russia’s invasion of Ukraine, the
mild global interest rate steepening scenario
 
was replaced by a
severe global
 
interest rate
 
steepening scenario
 
in the
 
first quarter of
 
2022, as
 
the beginning of
 
the Russia–Ukraine war
increased fears of
 
higher inflation and a corresponding
 
reaction by monetary
 
authorities. In
 
the second quarter of the
 
year,
the progression
 
of the war
 
and the enforcement
 
of sanctions
 
regimes led
 
to a redesign
 
of the scenario.
 
The resulting
severe
Russia–Ukraine conflict scenario
 
has similar dynamics as the severe global interest rate
 
steepening scenario, but addressed
specifically the prospect of
 
rising energy costs,
 
especially in Europe, with
 
the consequences
 
of lower
 
growth and higher
inflation rates.
 
In the
 
fourth quarter of
 
2022, UBS
 
developed a new
stagflationary geopolitical
 
crisis scenario
 
(SGC)
 
and
included this new
 
scenario in the ECL calculation for year-end 2022 in lieu of the
severe Russia–Ukraine conflict scenario
.
While
 
the SGC scenario addresses similar risks as the
severe Russia–Ukraine conflict
 
scenario
, it also covers additional and
broader risks and
 
therefore assumes
 
more severe
 
shocks. Geopolitical
 
tensions cause
 
an escalation
 
of security concerns
 
and
undermine globalization. The
 
ensuing economic regionalization leads
 
to a
 
surge in
 
global commodity prices
 
and further
disruptions of
 
supply chains
 
and raises
 
the specter
 
of prolonged
 
stagflation.
 
The severe
 
interest
 
rate and
 
adverse
 
house price
assumptions in
 
the SGC scenario
 
had a substantive
 
impact on model-based
 
ECL allowances
 
for loans
 
secured by
 
mortgages
in Switzerland and
 
the US. These
 
effects were
 
partly offset
 
by PMA releases
 
related to loans
 
secured by mortgages.
 
Refer to
the section below
 
on “Scenario weights
 
and post-model adjustments”
 
for more details.
Asset price
 
inflation scenario:
The upside
 
scenario is
 
based on
 
positive developments,
 
such as
 
an easing
 
of
 
geopolitical
tensions across the
 
globe and
 
a rebound
 
in Chinese economic
 
growth. A
 
combination of
 
lower energy and
 
commodity
prices,
 
effective monetary
 
policies
 
and
 
easing
 
supply
 
chain
 
disruptions helps
 
reduce
 
inflation.
 
Improved
 
consumer and
business sentiment lead to an economic rebound with central banks able to normalize interest rates; asset prices increase
significantly.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
424
 
 
Note 19
 
Expected credit loss measurement (continued)
The table below details the key assumptions
 
for the four scenarios applied
 
as of 31 December 2022.
Scenario weights and post
 
-model adjustments
Due
 
to the
 
less positive
 
outlook
 
compared
 
with the
 
assessment on
 
31 December
 
2021, the
 
scenario weights
 
changed
during 2022. The upside scenario was allocated
 
a
0
% probability, and the previous
5
% weight was added to the
baseline
scenario
, now
 
set at
60
%. Following
 
the introduction
 
of the
 
SGC, which
 
was deemed
 
to have
 
a higher
 
probability of
occurring than
 
the
global crisis
 
scenario
, the weights
 
were rebalanced.
 
The SGC
 
has a
 
weight of
25
% (compared
 
with
10
% for the
mild global
 
interest rate steepening
 
scenario
 
used as
 
of 31 December
 
2021) and
 
the weight
 
of the
global
crisis scenario
 
was reduced to
15
% (from
30
% as of 31 December
 
2021). The weights are also shown in the
 
table below.
The
 
scenarios
 
and
 
weight
 
allocation
 
were
 
established
 
in
 
line
 
with
 
the
 
general
 
market
 
sentiment
 
that
 
the
 
short-term
outlook
 
is subdued
 
and a
 
recession in
 
major markets
 
is a
 
strong
 
probability. The
 
downside
 
risks in
 
relation to
 
inflation
and monetary policy,
 
as well as
 
the availability and
 
price of energy,
 
mainly in Europe,
 
are better reflected
 
in our
 
models
compared with the uncertain developments
 
caused by COVID-19 in recent
 
years.
 
However, unquantifiable risks continue
 
to be relevant, as the pandemic
 
has not been overcome and
 
the world may face
new disruptions.
 
Furthermore, the geopolitical
 
situation worsened
 
during 2022,
 
and the impact on
 
the world
 
economy
from escalations with unforeseeable
 
consequences could be severe. In the near term, this
 
uncertainty relates primarily to
the development
 
of the
 
Russia–Ukraine
 
war. Models,
 
which are
 
based on
 
supportable statistical
 
information
 
from past
experiences regarding interdependencies of
 
macroeconomic factors and their
 
implications for credit
 
risk portfolios, cannot
comprehensively reflect
 
such extraordinary
 
events, such
 
as a
 
pandemic or
 
a fundamental
 
change
 
in the
 
world political
order. Rather than
 
creating multiple additional scenarios
 
to attempt gauging these
 
risks and applying
 
model parameters
that lack supportable information and
 
cannot be robustly validated, management
 
continued to
 
also apply PMAs.
 
These PMA took into account that more of the downside risks were modeled in 2022, particularly for lending
 
secured by
mortgages.
 
The
 
PMA
 
amounted
 
to
 
USD
131
m
 
as
 
of
 
31 December
 
2022
 
(31 December
 
2021:
 
USD
224
m).
 
These
remaining PMA
 
for uncertainties
 
on potentially
 
unmodeled risk
 
almost entirely
 
relate
 
to corporate
 
lending portfolios
 
in
Personal & Corporate Banking
 
and the Investment Bank.
 
Economic scenarios and weights applied
Assigned weights in %
ECL scenario
31.12.22
31.12.21
Asset price inflation
0.0
5.0
Baseline
60.0
55.0
Mild global interest rate steepening
 
0.0
10.0
Stagflationary geopolitical crisis
25.0
0.0
Global crisis
 
15.0
30.0
 
Scenario assumptions
One year
 
Three years cumulative
 
31.12.22
Asset price
inflation
Baseline
Stagflationary
geopolitical
crisis
 
Global
crisis
 
Asset price
inflation
Baseline
Stagflationary
geopolitical
crisis
 
Global
crisis
 
Real GDP growth (% change)
United States
4.0
(0.3)
(4.8)
(6.4)
9.1
3.2
(4.4)
(1.8)
Eurozone
3.0
0.6
(5.6)
(8.5)
6.2
2.5
(5.7)
(8.3)
Switzerland
3.0
0.7
(4.8)
(6.7)
6.6
3.5
(4.9)
(3.7)
Consumer price index (% change)
 
United States
2.5
2.6
10.0
(0.5)
8.1
6.5
15.8
1.2
Eurozone
2.3
5.0
9.6
(0.7)
7.4
9.6
14.8
(0.7)
Switzerland
2.1
1.6
5.8
(1.8)
6.2
3.9
10.7
(1.6)
Unemployment rate (end-of
 
-period level, %)
United States
3.0
3.9
9.2
10.0
3.0
5.3
11.8
9.4
Eurozone
6.0
7.0
10.9
11.9
6.0
7.1
12.2
13.0
Switzerland
1.7
2.3
4.3
4.4
1.5
2.6
5.1
4.9
Fixed income: 10-year government
 
bonds (change in yields, basis points)
USD
25.0
(5.6)
235.0
(326.0)
70.0
(13.2)
205.0
(291.1)
EUR
20.0
47.8
250.0
(270.6)
57.5
44.7
220.0
(246.5)
CHF
25.0
45.7
220.0
(209.7)
62.5
57.0
205.0
(159.6)
Equity indices (% change)
S&P 500
20.0
7.4
(51.5)
(50.0)
51.7
22.8
(45.6)
(27.9)
EuroStoxx 50
17.0
17.2
(51.6)
(50.0)
42.9
29.2
(47.2)
(39.3)
SPI
14.0
5.6
(51.6)
(46.0)
37.9
19.3
(47.2)
(32.9)
Swiss real estate (% change)
Single-Family Homes
 
6.6
1.1
(16.7)
(19.9)
14.0
2.3
(32.9)
(23.9)
Other real estate (% change)
United States (S&P / Case–Shiller)
7.8
(4.5)
(12.8)
(19.3)
19.1
(0.6)
(35.8)
(32.7)
Eurozone (House Price Index)
7.0
(2.7)
(8.4)
(8.9)
15.4
2.0
(14.7)
(17.5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
425
 
 
Note 19
 
Expected credit loss measurement (continued)
Scenario assumptions
One year
 
Three years cumulative
 
31.12.21
Asset price
inflation
Baseline
Mild global
interest rate
steepening
 
Global crisis
 
Asset price
inflation
Baseline
Mild global
interest rate
steepening
 
Global crisis
 
Real GDP growth (% change)
United States
9.1
4.4
(0.1)
(5.9)
17.8
10.1
1.8
(3.8)
Eurozone
9.4
3.9
(0.1)
(8.7)
17.3
7.5
0.9
(10.3)
Switzerland
5.5
2.4
(0.9)
(6.6)
13.1
5.8
(0.1)
(5.7)
Consumer price index (% change)
United States
3.1
2.2
5.7
(1.2)
9.5
6.3
13.0
0.4
Eurozone
2.3
1.4
4.2
(1.3)
8.0
4.8
10.4
(1.7)
Switzerland
1.8
0.3
3.5
(1.8)
6.1
1.7
9.0
(1.6)
Unemployment rate (end-of
 
-period level, %)
United States
3.0
3.9
6.1
10.9
3.0
3.5
7.2
10.8
Eurozone
6.2
7.4
8.7
12.9
6.0
7.2
9.1
15.1
Switzerland
2.3
2.5
3.4
5.2
1.6
2.3
4.2
5.9
Fixed income: 10-year government
 
bonds (change in yields, basis points)
USD
50.0
16.5
259.2
(50.0)
170.0
41.2
329.2
(15.0)
EUR
40.0
11.1
283.8
(35.0)
140.0
34.9
349.3
(25.0)
CHF
50.0
12.1
245.5
(70.0)
150.0
34.4
307.3
(35.0)
Equity indices (% change)
S&P 500
12.0
14.1
(27.0)
(50.2)
35.5
24.7
(21.8)
(40.1)
EuroStoxx 50
16.0
12.3
(23.4)
(57.6)
41.6
20.7
(19.9)
(50.4)
SPI
14.0
12.1
(22.9)
(53.6)
37.9
19.1
(19.6)
(44.2)
Swiss real estate (% change)
Single-Family Homes
 
5.1
4.4
(4.3)
(17.0)
15.5
7.4
(8.8)
(30.0)
Other real estate (% change)
United States (S&P / Case–Shiller)
10.0
3.5
(2.3)
(9.5)
21.7
7.1
(8.7)
(26.3)
Eurozone (House Price Index)
8.4
5.1
(4.0)
(5.4)
17.8
9.6
(7.6)
(10.8)
 
c) Development of ECL allowances
 
and provisions
 
The ECL allowances and provisions
 
recognized in the period
 
are impacted by a variety of factors,
 
such as:
–
 
the effect of selecting and
 
updating forward-looking scenarios
 
and the respective weights;
–
 
origination of new instruments during
 
the period;
 
–
 
the effect
 
of passage of
 
time (lower residual
 
lifetime PD and the
 
effect of discount
 
unwind) as the
 
ECL on an
 
instrument
for the remaining lifetime decreases (all other
 
factors remaining the same);
–
 
derecognition of instruments in the
 
period;
–
 
change in individual asset quality of instruments;
–
 
movements from
 
a
 
maximum
 
12-month
 
ECL
 
to
 
the
 
recognition
 
of
 
lifetime ECL
 
(and
 
vice versa)
 
following
 
transfers
between stages 1 and 2;
 
–
 
movements from stages 1 and 2 to stage 3 (credit-impaired status) when default has become certain and PD increases
to 100% (or vice versa);
–
 
changes in models or updates
 
to model parameters;
–
 
write-off; and
–
 
foreign exchange translations for assets denominated
 
in foreign currencies.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
426
 
 
Note 19
 
Expected credit loss measurement (continued)
 
The
 
table
 
below
 
explains
 
the
 
changes
 
in
 
the
 
ECL
 
allowances
 
and
 
provisions
 
for
 
on-
 
and
 
off-balance
 
sheet
 
financial
instruments and credit
 
lines in scope of ECL
 
requirements
 
between the beginning
 
and the end of the
 
period due
 
to the
factors listed above.
 
Development of ECL allowances
 
and provisions
USD m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2021
(1,165)
(282)
(220)
(662)
Net movement from new and derecognized
 
transactions
1
(7)
(21)
16
(2)
of which: Private clients with mortgages
(6)
(6)
0
0
of which: Real estate financing
(3)
(5)
2
0
of which: Large corporate clients
8
(1)
11
(2)
of which: SME clients
(1)
(1)
0
0
of which: Other
(6)
(8)
3
0
 
of which: Financial intermediaries and hedge
 
funds
0
(2)
2
0
 
of which: Loans to financial advisors
0
0
0
0
Remeasurements with stage transfers
2
(65)
20
(39)
(46)
of which: Private clients with mortgages
(10)
3
(12)
0
of which: Real estate financing
7
(1)
8
0
of which: Large corporate clients
(33)
16
(28)
(21)
of which: SME clients
(23)
2
(2)
(22)
of which: Other
(6)
1
(4)
(3)
 
of which: Financial intermediaries and hedge
 
funds
0
0
0
0
 
of which: Loans to financial advisors
1
2
(1)
0
Remeasurements without
 
stage transfers
3
13
(8)
(27)
48
of which: Private clients with mortgages
(12)
5
(18)
1
of which: Real estate financing
13
3
10
0
of which: Large corporate clients
32
(11)
2
41
of which: SME clients
(6)
(10)
(9)
14
of which: Other
(15)
5
(12)
(8)
 
of which: Sovereigns
(8)
0
(8)
0
 
of which: Loans to financial advisors
(3)
3
(1)
(6)
Model changes
4
30
29
1
0
Movements with profit or loss impact
5
(29)
20
(49)
0
Movements without profit or loss impact
 
(write-off,
 
FX and other)
6
104
3
1
99
Balance as of 31 December 2022
(1,091)
(260)
(267)
(564)
1 Represents
 
the increase
 
and decrease
 
in allowances
 
and provisions
 
resulting from
 
financial instruments
 
(including guarantee
 
s
 
and facilities)
 
that were
 
newly originated,
 
purchased or
 
renewed and
 
from the
 
final
derecognition of loans or facilities on their maturity date or earlier.
 
2 Represents the remeasurement between 12
 
-month and lifetime ECL due to stage transfers.
 
3 Represents the change in allowances and provisions
related to
 
changes
 
in model
 
inputs
 
or assumptions,
 
including
 
changes
 
in forward
 
-looking
 
macroeconomic
 
conditions,
 
changes
 
in the
 
exposure
 
profile,
 
PD and
 
LGD
 
changes,
 
and
 
unwinding
 
of the
 
time
 
value.
 
4 Represents the change in the allowances
 
and provisions related to changes
 
in models and methodologies.
 
5 Includes ECL movements
 
from new and derecognized transactions,
 
remeasurement changes,
 
model and
methodology changes.
 
6 Represents
 
the decrease
 
in allowances
 
and provisions
 
resulting from
 
write-offs of
 
the ECL
 
allowance
 
against the
 
gross carrying
 
amount when
 
all or
 
part of
 
a financial
 
asset is
 
deemed
uncollectible or forgiven and
 
movements in foreign exchange
 
rates.
 
Movements with profit
 
or loss
 
impact:
Stages 1
 
and 2 ECL
 
allowances and provisions
 
increased on a
 
net basis
 
by USD
29
m:
 
–
 
Net movement
 
from new
 
and derecognized
 
transactions
 
includes USD
21
m stage 1
 
expenses and
 
USD
16
m stage 2
releases: Stage 1 expenses are primarily driven by new loans secured by real estate. The residual
 
effect is spread across
lending segments. Stage 2
 
releases are largely driven by redemption of
 
corporate loans in the I
 
nvestment Bank.
–
 
Remeasurements with
 
stage transfers
 
include USD
20
m releases
 
in stage
 
1 and
 
USD
39
m expenses
 
in stage
 
2.
 
This
mainly includes
 
the transfer of
 
a few
 
large corporate
 
lending
 
transactions in
 
the Investment
 
Bank
 
from stage
 
1 to
 
2
(i.e., releases in
 
stage 1
 
and related but
 
generally higher
 
expenses in stage
 
2), driven by
 
rating downgrades and scenario
effects.
–
 
Remeasurements
 
without
 
stage
 
transfers
 
include
 
stage
 
1
 
expenses
 
of
 
USD
8
m
 
and stage
 
2 expenses
 
of
 
USD
27
m.
These expenses of
 
USD
35
m relate
 
to large and
 
SME corporate lending
 
(USD
28
m), substantially
 
due to scenario
 
effects,
and to a single sovereign
 
counterparty (USD
8
m).
 
–
 
Model changes: refer to Note
 
19b for more information.
Movements without profit or loss impact:
Stage 3 allowances decreased by USD
99
m almost entirely due to write-offs of
USD
95
m.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
427
 
 
Note 19
 
Expected credit loss measurement (continued)
 
Development of ECL allowances
 
and provisions
USD m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2020
(1,468)
(306)
(333)
(829)
Net movement from new and derecognized
 
transactions
1
(59)
(72)
13
0
of which: Private clients with mortgages
(7)
(10)
3
0
of which: Real estate financing
(7)
(11)
4
0
of which: Large corporate clients
(13)
(21)
7
0
of which: SME clients
(8)
(8)
0
0
of which: Other
(24)
(23)
(2)
0
 
of which: Financial intermediaries and hedge
 
funds
(21)
(18)
(4)
0
 
of which: Loans to financial advisors
0
(1)
1
0
Remeasurements with stage transfers
2
(40)
8
0
(49)
of which: Private clients with mortgages
(9)
4
(13)
0
of which: Real estate financing
(3)
1
(4)
0
of which: Large corporate clients
2
(2)
12
(8)
of which: SME clients
(27)
5
4
(36)
of which: Other
(3)
0
2
(4)
 
of which: Financial intermediaries and hedge
 
funds
2
(1)
3
0
 
of which: Loans to financial advisors
0
1
(1)
0
Remeasurements without
 
stage transfers
3
203
55
74
74
of which: Private clients with mortgages
33
8
26
(1)
of which: Real estate financing
30
13
13
3
of which: Large corporate clients
44
5
21
17
of which: SME clients
53
(1)
1
53
of which: Other
44
29
14
2
 
of which: Financial intermediaries and hedge
 
funds
27
15
12
0
 
of which: Loans to financial advisors
6
8
1
(3)
Model changes
4
45
29
16
0
Movements with profit or loss impact
5
148
19
104
25
Movements without profit or loss impact
 
(write-off, FX
 
and other)
6
154
5
9
141
Balance as of 31 December 2021
(1,165)
(282)
(220)
(662)
1 Represents
 
the increase
 
and decrease
 
in allowances
 
and provisions
 
resulting from
 
financial instruments
 
(including guarantee
 
s
 
and facilities)
 
that were
 
newly originated,
 
purchased or
 
renewed and
 
from the
 
final
derecognition of loans or facilities on their maturity date or earlier.
 
2 Represents the remeasurement between 12
 
-month and lifetime ECL due to stage transfers.
 
3 Represents the change in allowances and provisions
related to
 
changes
 
in model
 
inputs
 
or assumptions,
 
including
 
changes
 
in forward
 
-looking
 
macroeconomic
 
conditions,
 
changes
 
in the
 
exposure
 
profile,
 
PD and
 
LGD
 
changes,
 
and
 
unwinding
 
of the
 
time
 
value.
 
4 Represents the change in the allowances
 
and provisions related to changes
 
in models and methodologies.
 
5 Includes ECL movements
 
from new and derecognized
 
transactions, remeasurement
 
changes, model and
methodology changes.
 
6 Represents
 
the decrease
 
in allowa
 
nces and
 
provisions resulting
 
from write
 
-offs of
 
the ECL
 
allowance
 
against the
 
gross carrying
 
amount when
 
all or
 
part of
 
a financial
 
asset is
 
deemed
uncollectible or forgiven and
 
movements in foreign exchange
 
rates.
 
As explained
 
in Note 1a,
 
the assessment
 
of a significant
 
increase
 
in credit
 
risk (SICR)
 
considers a
 
number
 
of qualitative
and
 
quantitative factors
 
to determine
 
whether a
 
stage transfer
 
between
 
stage 1
 
and stage 2
 
is required,
 
although the
primary assessment considers changes in PD based on rating analyses and economic outlook. Additionally, UBS AG takes
into consideration
 
counterparties that
 
have moved
 
to a
 
credit watch
 
list and
 
those with
 
payments that
 
are at
 
least 30
days past due.
 
ECL stage 2 (“significant deterioration
 
in credit risk”) allowances / provisions
 
as of 31 December 2022 – classification by trigger
USD m
Stage 2
of which:
PD layer
of which:
watch list
of which:
≥30 days
 
past due
On-
 
and off-balance sheet
 
(267)
(196)
(21)
(50)
of which: Private clients with mortgages
(107)
(83)
0
(25)
of which: Real estate financing
(23)
(18)
0
(5)
of which: Large corporate clients
(65)
(51)
(13)
0
of which: SME clients
(37)
(22)
(7)
(7)
of which: Financial intermediaries and hedge
 
funds
(17)
(17)
0
0
of which: Loans to financial advisors
(2)
0
0
(2)
of which: Credit cards
(12)
0
0
(12)
of which: Other
(5)
(5)
0
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
428
 
 
Note 19
 
Expected credit loss measurement (continued)
 
d) Maximum exposure to credit risk
The tables
 
below provide UBS
 
AG’s maximum exposure to credit
 
risk for financial
 
instruments subject to
 
ECL requirements
and
 
the
 
respective
 
collateral
 
and
 
other
 
credit
 
enhancements
 
mitigating
 
credit
 
risk
 
for
 
these
 
classes
 
of
 
financial
instruments.
 
The maximum exposure
 
to credit risk
 
includes the
 
carrying amounts
 
of financial instruments
 
recognized on
 
the balance
sheet subject to credit risk
 
and the notional amounts for off-balance sheet arrangements. Where information is available,
collateral is presented at fair
 
value. For other collateral, such
 
as real estate, a
 
reasonable alternative
 
value is used. Credit
enhancements,
 
such
 
as
 
credit
 
derivative
 
contracts
 
and
 
guarantees,
 
are
 
included
 
at
 
their
 
notional
 
amounts.
 
Both
 
are
capped
 
at the
 
maximum exposure
 
to credit
 
risk for
 
which they
 
serve as
 
security. The
 
“Risk
 
management and
 
control”
section of this
 
report describes
 
management’s view
 
of credit
 
risk and
 
the related exposures,
 
which can differ
 
in certain
respects from the requirements of International
 
Financial Reporting Standards
 
(IFRS).
 
Maximum exposure to credit
 
risk
 
31.12.22
Collateral
1,2
Credit enhancements
1
Exposure to
credit risk
after collateral
and credit
enhancements
USD bn
Maximum
exposure to
credit risk
Cash
collateral
received
Collateralized
by equity and
debt
instruments
Secured by
real estate
Other
collateral
3
Netting
Credit
derivative
contracts
Guarantees
 
Financial assets measured at
 
amortized cost on the balance sheet
Cash and balances at central banks
169.4
169.4
Loans and advances to banks
4
14.7
0.0
0.1
14.6
Receivables from securities financing transactions
measured at amortized cost
67.8
0.0
64.5
2.4
0.9
Cash collateral receivables on derivative
 
instruments
5,6
35.0
22.9
12.1
Loans and advances to customers
390.0
36.1
115.9
197.8
19.6
3.0
17.6
Other financial assets measured at amortized cost
53.4
0.1
0.5
0.0
1.3
51.4
Total financial assets
 
measured at amortized cost
730.4
36.2
181.0
197.9
23.4
22.9
0.0
3.0
266.1
Financial assets measured at
 
fair value
 
through other comprehensive income – debt
2.2
2.2
Total maximum exposure to
 
credit risk
 
reflected on the balance sheet within
 
the scope of ECL
732.6
36.2
181.0
197.9
23.4
22.9
0.0
3.0
268.3
Guarantees
7
22.1
1.2
9.3
0.1
2.0
1.8
7.7
Loan commitments
7
39.9
0.2
3.1
1.3
6.5
0.1
1.0
27.8
Forward starting transactions,
 
reverse repurchase
and securities borrowing agreements
3.8
3.8
0.0
Committed unconditionally revocable credit lines
43.6
0.2
8.2
6.0
6.2
0.5
22.5
Total maximum exposure to
 
credit risk not
 
reflected on the balance sheet within
 
the scope of ECL
109.4
1.6
24.4
7.5
14.7
0.0
0.1
3.3
58.0
31.12.21
Collateral
1,2
Credit enhancements
1
Exposure to
credit risk
after collateral
and credit
enhancements
USD bn
Maximum
exposure to
credit risk
Cash
collateral
received
Collateralized
by equity and
debt
instruments
Secured by
real estate
Other
collateral
3
Netting
Credit
derivative
contracts
Guarantees
 
Financial assets measured at
 
amortized cost on the balance sheet
Cash and balances at central banks
192.8
192.8
Loans and advances to banks
4
15.4
0.1
0.1
15.1
Receivables from securities financing transactions
measured at amortized cost
75.0
0.0
68.0
6.9
0.0
Cash collateral receivables on derivative
 
instruments
5,6
30.5
18.4
12.1
Loans and advances to customers
398.7
38.2
128.7
191.3
20.2
4.0
16.4
Other financial assets measured at amortized cost
26.2
0.2
0.1
0.0
1.3
24.7
Total financial assets
 
measured at amortized cost
738.6
38.4
196.9
191.3
28.4
18.4
0.0
4.0
261.1
Financial assets measured at
 
fair value
 
through other comprehensive income – debt
8.8
8.8
Total maximum exposure to
 
credit risk
 
reflected on the balance sheet within
 
the scope of ECL
747.5
38.4
196.9
191.3
28.4
18.4
0.0
4.0
270.0
Guarantees
7
20.9
1.3
6.5
0.2
2.5
2.3
8.1
Loan commitments
7
39.4
0.5
4.0
2.4
7.3
0.3
1.7
23.1
Forward starting transactions,
 
reverse repurchase
and securities borrowing agreements
1.4
1.4
0.0
Committed unconditionally revocable credit lines
42.3
0.3
9.0
6.2
3.9
0.5
22.5
Total maximum exposure to
 
credit risk not
 
reflected on the balance sheet within
 
the scope of ECL
104.1
2.2
20.9
8.7
13.7
0.0
0.3
4.5
53.7
1 Of which: USD
1,372
m for 31 December 2022 (31 December
 
2021: USD
1,443
m) relates to total credit-impaired financial
 
assets measured at amortized cost and USD
113
m for 31 December 2022 (31 December
 
2021:
USD
130
m) to total off-balance sheet financial instruments and credit
 
lines for credit-impaired positions.
 
2 Collateral arrangements
 
generally incorporate a range of collateral, including
 
cash, equity and debt instruments,
real estate and
 
other collateral.
 
UBS AG applies
 
a risk-based
 
approach that
 
generally
 
prioritizes collateral
 
according to its
 
liquidity profile.
 
3 Includes but is
 
not limited to life
 
insurance contracts,
 
inventory,
 
mortgage
loans, gold
 
and other
 
commodities.
 
4 Loans
 
and advances
 
to banks
 
include amounts
 
held with third
 
-party banks
 
on behalf
 
of clients.
 
The credit
 
risk associated
 
with these
 
balances may
 
be borne
 
by those clients.
 
5 Included within Cash
 
collateral receivables
 
on derivative
 
instruments are
 
margin balances
 
due from exchanges
 
or clearing houses.
 
Some of these
 
margin balances
 
reflect amounts
 
transferred on
 
behalf of clients
 
who
retain the associated
 
credit risk.
 
6 The amount
 
shown in the
 
“Netting” column represents
 
the netting
 
potential not recognized
 
on the balance sheet.
 
Refer to Note 21
 
for more information.
 
7 The amount
 
shown in
the “Guarantees” column includes
 
sub-participations.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
429
 
 
Note 19
 
Expected credit loss measurement (continued)
 
e) Financial assets subject to credit risk
 
by rating category
The table below shows the credit quality and the maximum exposure
 
to credit risk based on the UBS AG’s internal credit
rating system and
 
year-end stage
 
classification. Under
 
IFRS 9,
 
the credit risk
 
rating reflects
 
the UBS
 
AG’s assessment
 
of
the
 
probability
 
of
 
default
 
of
 
individual
 
counterparties,
 
prior
 
to
 
substitutions.
 
The
 
amounts
 
presented
 
are
 
gross
 
of
impairment allowances.
›
 
Refer to the “Risk
 
management and
 
control” section of
 
this report for more
 
details
 
regarding the UBS AG’s internal
 
grading
system
 
Financial assets subject to credit risk by
 
rating category
USD m
31.12.22
Rating category
1
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial assets measured at amortized
 
cost
Cash and balances at central banks
168,525
877
0
0
56
0
169,457
(12)
169,445
of which: stage 1
168,525
877
0
0
0
0
169,402
0
169,402
of which: stage 2
0
0
0
0
56
0
56
(12)
44
Loans and advances to banks
862
11,150
832
996
837
0
14,676
(6)
14,671
of which: stage 1
862
11,150
832
996
836
0
14,675
(5)
14,670
of which: stage 2
0
0
0
0
1
0
1
(1)
1
of which: stage 3
0
0
0
0
0
0
0
0
0
Receivables from securities
 
financing transactions measured at
amortized cost
27,158
15,860
8,870
15,207
721
0
67,816
(2)
67,814
of which: stage 1
27,158
15,860
8,870
15,207
721
0
67,816
(2)
67,814
Cash collateral receivables on
 
derivative instruments
10,613
12,978
7,138
4,157
147
0
35,034
0
35,033
of which: stage 1
10,613
12,978
7,138
4,157
147
0
35,034
0
35,033
Loans and advances to customers
6,491
216,824
68,444
76,147
20,891
2,012
390,810
(783)
390,027
of which: stage 1
6,491
215,332
66,202
69,450
15,557
0
373,032
(129)
372,903
of which: stage 2
0
1,493
2,242
6,698
5,334
0
15,767
(180)
15,587
of which: stage 3
0
0
0
0
0
2,012
2,012
(474)
1,538
Other financial assets measured at
 
amortized cost
29,011
16,649
447
6,708
450
210
53,475
(86)
53,389
of which: stage 1
29,011
16,646
427
6,426
336
0
52,846
(17)
52,829
of which: stage 2
0
2
20
283
114
0
419
(6)
413
of which: stage 3
0
0
0
0
0
210
210
(63)
147
Total financial assets
 
measured at amortized cost
242,660
274,337
85,731
103,216
23,102
2,222
731,269
(890)
730,379
On-balance sheet financial instruments
Financial assets measured at FVOCI
 
– debt instruments
1,307
840
0
92
0
0
2,239
0
2,239
Total on-balance
 
sheet financial instruments
243,966
275,178
85,731
103,308
23,102
2,222
733,508
(890)
732,618
Off-balance sheet positions subject to expected
 
credit loss by rating category
USD m
31.12.22
Rating category
1
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total off-
balance sheet
exposure
(maximum
exposure to
credit risk)
ECL provisions
Off-balance sheet financial instruments
Guarantees
 
7,252
5,961
4,772
3,049
1,025
108
22,167
(48)
of which: stage 1
7,252
5,917
3,812
2,229
596
0
19,805
(13)
of which: stage 2
0
44
960
821
429
0
2,254
(9)
of which: stage 3
0
0
0
0
0
108
108
(26)
Irrevocable loan commitments
1,770
14,912
6,986
10,097
6,107
124
39,996
(111)
of which: stage 1
1,770
14,789
6,818
9,625
4,529
0
37,531
(59)
of which: stage 2
0
123
168
472
1,578
0
2,341
(52)
of which: stage 3
0
0
0
0
0
124
124
0
Forward starting reverse repurchase
 
and securities borrowing agreements
2,781
2
11
1,007
0
0
3,801
0
Total off-balance sheet
 
financial instruments
11,803
20,874
11,769
14,153
7,132
233
65,964
(159)
Credit lines
Committed unconditionally revocable
 
credit lines
2,288
16,483
9,247
11,885
3,739
36
43,677
(40)
of which: stage 1
2,288
15,777
8,960
11,355
3,429
0
41,809
(32)
of which: stage 2
0
705
287
531
310
0
1,833
(8)
of which: stage 3
0
0
0
0
0
36
36
0
Irrevocable committed prolongation
 
of existing loans
7
1,939
1,489
868
392
2
4,696
(2)
of which: stage 1
7
1,938
1,411
864
380
0
4,600
(2)
of which: stage 2
0
1
78
4
11
0
94
0
of which: stage 3
0
0
0
0
0
2
2
0
Total credit lines
2,295
18,421
10,736
12,753
4,131
37
48,373
(42)
1 Refer to the “Internal UBS rating
 
scale and mapping of external
 
ratings” table in the “Risk
 
management and control”
 
section of this report for more
 
information on rating categories.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
430
 
 
Note 19
 
Expected credit loss measurement (continued)
Financial assets subject to credit risk by
 
rating category
USD m
31.12.21
Rating category
1
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial assets measured at amortized
 
cost
Cash and balances at central banks
191,015
1,802
0
0
0
0
192,817
0
192,817
of which: stage 1
191,015
1,802
0
0
0
0
192,817
0
192,817
Loans and advances to banks
407
12,552
1,123
795
490
1
15,368
(8)
15,360
of which: stage 1
407
12,552
1,098
795
488
0
15,340
(7)
15,333
of which: stage 2
0
0
24
0
2
0
27
(1)
26
of which: stage 3
0
0
0
0
0
1
1
0
1
Receivables from securities
 
financing transactions
measured at amortized cost
34,386
11,267
10,483
17,440
1,439
0
75,014
(2)
75,012
of which: stage 1
34,386
11,267
10,483
17,440
1,439
0
75,014
(2)
75,012
Cash collateral receivables on
 
derivative instruments
7,466
13,476
5,878
3,647
47
0
30,514
0
30,514
of which: stage 1
7,466
13,476
5,878
3,647
47
0
30,514
0
30,514
Loans and advances to customers
5,295
232,663
67,620
70,394
21,423
2,148
399,543
(850)
398,693
of which: stage 1
5,295
231,583
65,083
63,298
16,362
0
381,622
(126)
381,496
of which: stage 2
0
1,080
2,536
7,096
5,061
0
15,773
(152)
15,620
of which: stage 3
0
0
0
0
0
2,148
2,148
(572)
1,577
Other financial assets measured at
 
amortized cost
12,564
6,705
321
6,097
394
264
26,346
(109)
26,236
of which: stage 1
12,564
6,696
307
5,887
317
0
25,772
(27)
25,746
of which: stage 2
0
10
13
209
77
0
309
(7)
302
of which: stage 3
0
0
0
0
0
264
264
(76)
189
Total financial assets
 
measured at amortized cost
251,133
278,465
85,424
98,372
23,793
2,414
739,601
(969)
738,632
On-balance sheet financial instruments
Financial assets measured at FVOCI
 
– debt instruments
3,996
4,771
0
77
0
0
8,844
0
8,844
Total on-balance
 
sheet financial instruments
255,130
283,236
85,424
98,449
23,793
2,414
748,445
(969)
747,477
Off-balance sheet positions subject to expected
 
credit loss by rating category
USD m
31.12.21
Rating category
1
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total off-
balance sheet
exposure
(maximum
exposure to
credit risk)
ECL provisions
Off-balance sheet financial instruments
Guarantees
 
4,457
7,064
4,535
3,757
1,009
150
20,972
(41)
of which: stage 1
4,457
7,037
4,375
3,075
752
0
19,695
(18)
of which: stage 2
0
27
160
682
258
0
1,127
(8)
of which: stage 3
0
0
0
0
0
150
150
(15)
Irrevocable loan commitments
2,797
14,183
7,651
8,298
6,502
46
39,478
(114)
of which: stage 1
2,797
13,917
7,416
7,127
5,840
0
37,097
(72)
of which: stage 2
0
266
235
1,171
663
0
2,335
(42)
of which: stage 3
0
0
0
0
0
46
46
0
Forward starting reverse repurchase
 
and securities borrowing agreements
0
0
55
1,389
0
0
1,444
0
Total off balance
 
sheet financial instruments
7,254
21,247
12,241
13,444
7,512
196
61,894
(155)
Credit lines
Committed unconditionally revocable
 
credit lines
2,636
16,811
8,627
10,130
4,107
63
42,373
(38)
of which: stage 1
2,636
16,467
8,304
8,724
3,671
0
39,802
(28)
of which: stage 2
0
344
323
1,406
436
0
2,508
(10)
of which: stage 3
0
0
0
0
0
63
63
0
Irrevocable committed prolongation
 
of existing loans
17
2,438
1,422
1,084
602
48
5,611
(3)
of which: stage 1
17
2,438
1,422
1,082
568
0
5,527
(3)
of which: stage 2
0
0
0
1
34
0
36
0
of which: stage 3
0
0
0
0
0
48
48
0
Total credit lines
2,653
19,249
10,049
11,214
4,709
111
47,984
(41)
1 Refer to the “Internal UBS rating
 
scale and mapping of external
 
ratings” table in the “Risk
 
management and control”
 
section of this report for more
 
information on rating
 
categories.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
431
 
 
Note 19
 
Expected credit loss measurement (continued)
 
f) Sensitivity information
As outlined in Note
 
1a, ECL estimates involve significant uncertainties at the
 
time they are made.
ECL models
The models
 
applied
 
to determine
 
point
 
-in-time
 
PD and LGD
 
rely on
 
market and statistical
 
data, which
 
has been
 
found
to
 
correlate
 
well
 
with
 
historically
 
observed
 
defaults
 
in
 
sufficiently
 
homogeneous
 
segments.
 
The
 
risk
 
sensitivities
 
for
each of the
 
ECL reporting
 
segments
 
to such
 
factors are
 
summarized
 
in Note 9.
Sustainability and climate risk
 
Sustainability and climate risk (SCR) may negatively affect clients
 
or portfolios due to direct or indirect transition costs, or
exposure to physical risks in locations
 
likely to be impacted by climate change.
 
Such effects could lead to
 
a deterioration
in credit worthiness, which in turn would
 
have an impact on ECLs.
 
While some indicators
 
that are more
 
influenced by
 
climate change (e.g.,
 
energy prices) are
 
factored into the
 
current PD
models where
 
they have
 
demonstrated
 
statistical
 
relevance,
 
UBS
 
AG currently
 
does
 
not use
 
a specific
 
SCR
 
scenario in
addition
 
to
 
the
 
four
 
general
 
economic
 
scenarios
 
applied
 
to
 
derive
 
the
 
weighted-average
 
ECL.
 
The
 
rationale
 
for
 
the
approach
 
at
 
this
 
point
 
in
 
time
 
is
 
the
 
significance
 
of
 
model
 
risks
 
and
 
challenges
 
in
 
calibration
 
and
 
probability
 
weight
assessment given the paucity of data.
Instead, UBS
 
AG focuses on
 
the process of
 
vetting clients and
 
business transactions and
 
takes individual actions,
 
where
transition risk is deemed
 
to be a significant
 
driver of a
 
counterparty’s credit worthiness.
 
This review process may
 
lead to
a downward revision
 
of the counterparty’s credit rating,
 
or the adoption of risk mitigating
 
actions, and hence affect the
individual contribution to ECLs.
At the portfolio level, UBS AG
 
has started to use stress loss assumptions to assess the extent to which SCR may affect the
quality of the
 
loans extended to
 
small and medium-sized entities
 
and large
 
corporate clients. Initial tests
 
were based
 
on
a set of assumptions presented
 
by external parties (such as the Bank of
 
England). Such analysis undertaken
 
during 2022
concluded that the counterparties
 
are not expected to be
 
significantly impacted
 
by physical or transition
 
risks,
 
mainly as
there are no material risk concentrations in high-risk sectors. The
 
analysis of the corporate loan book has also shown that
any potential significant impacts from transition costs or
 
physical risks would materialize over a
 
time horizon that exceeds
in most cases the
 
contractual lifetime of the
 
underlying assets. Based on current information
 
on regulatory developments,
this would
 
also apply
 
to the
 
portfolio of
 
private clients’
 
mortgages and
 
real estate
 
financing,
 
given the long
 
lead times
for investments in upgrading
 
the housing stock.
As a
 
result of
 
the aforementioned
 
factors, it
 
was assessed
 
that the
 
magnitude of
 
any impact
 
of SCR
 
on the
 
weighted-
average ECL would not be material as of 31 December 2022.
 
Therefore, no specific post-model adjustment was made in
this regard.
›
 
Refer to “Sustainability
 
and climate risk”
 
in the “Risk management
 
and control” section
 
of this report
 
›
 
Refer to “Our focus
 
on sustainability
 
and climate”
 
in the “Our strategy, business
 
model and environment”
 
section of this
 
report
›
 
Refer to “UBS AG consolidated
 
supplemental disclosures
 
required under SEC regulations”
 
for the maturity
 
profile of UBS core loan
book
 
Forward-looking scenarios
Depending
 
on
 
the scenario
 
selection and
 
related macroeconomic
 
assumptions
 
for the
 
risk factors,
 
the components
 
of
the
 
relevant
 
weighted-average
 
ECL
 
change.
 
This
 
is
 
particularly
 
relevant
 
for
 
interest
 
rates,
 
which
 
can
 
move
 
in
 
both
directions under
 
a given growth
 
assumption,
 
e.g., low
 
growth with
 
high interest
 
rates in
 
a stagflation
 
scenario, versus
low growth
 
and falling interest
 
rates in a
 
recession. Management
 
generally looks
 
for scenario narratives that reflect
 
the
key risk drivers of a given credit
 
portfolio.
As forecasting
 
models are complex,
 
due to the
 
combination of
 
multiple factors, simple what-if
 
analyses involving a
 
change
of individual
 
parameters do not
 
necessarily provide realistic information
 
on the
 
exposure of segments
 
to changes in
 
the
macroeconomy.
 
Portfolio-specific
 
analyses
 
based
 
on
 
their key
 
risk
 
factors
 
would
 
also
 
not
 
be
 
meaningful,
 
as
 
potential
compensatory effects in other segments
 
would be ignored
 
.
 
The table below indicates some sensitivities
 
to ECLs, if a key
macroeconomic
 
variable
 
for
 
the
 
forecasting
 
period
 
is
 
amended
 
across
 
all
 
scenarios
 
with
 
all
 
other
 
factors
 
remaining
unchanged.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
432
 
 
Note 19
 
Expected credit loss measurement (continued)
 
Potential effect on stage
 
1 and stage 2 positions from changing key
 
parameters as of 31 December 2022
 
USD m
100% Baseline
100%
Stagflationary
geopolitical crisis
 
100% Global crisis
 
Weighted average
 
Change in key parameters
Fixed income: Government bonds
 
(absolute change)
–0.50%
(3)
(106)
(2)
(14)
+0.50%
4
124
2
17
+1.00%
8
264
10
37
Unemployment rate (absolute change)
–1.00%
(4)
(138)
(24)
(23)
–0.50%
(2)
(78)
(13)
(12)
+0.50%
3
84
16
15
+1.00%
5
179
32
31
Real GDP growth (relative change)
–2.00%
7
13
18
11
–1.00%
3
7
9
5
+1.00%
(3)
(7)
(9)
(5)
+2.00%
(5)
(13)
(18)
(10)
House Price Index (relative change)
–5.00%
15
196
88
56
–2.50%
7
92
40
25
+2.50%
(4)
(83)
(35)
(19)
+5.00%
(7)
(157)
(65)
(36)
Equity (S&P500, EuroStoxx, SMI)
 
(relative change)
–10.00%
4
7
6
5
–5.00%
2
3
3
2
+5.00%
(2)
(4)
(3)
(2)
+10.00%
(4)
(8)
(7)
(5)
Sensitivities
 
can
 
be
 
more
 
meaningfully
 
assessed
 
in
 
the
 
context
 
of
 
coherent
 
scenarios
 
with
 
consistently
 
developed
macroeconomic
 
factors.
 
The
 
table
 
above
 
outlines
 
favorable
 
and
 
unfavorable
 
effects,
 
based
 
on
 
reasonably
 
possible
alternative changes to
 
the economic conditions
 
for stage 1 and
 
stage 2 positions. The
 
ECL impact
 
is calculated for
 
material
portfolios and disclosed for each
 
scenario.
 
The forecasting horizon is limited to three years, with a model
 
-based mean reversion of PD and LGD assumed thereafter.
Changes to these timelines may have an
 
effect on ECLs: depending
 
on the cycle, a longer or shorter forecasting horizon
will lead to different annualized lifetime PD and average LGD estimations. This is currently not deemed to be material for
UBS,
 
as a large proportion
 
of loans,
 
including mortgages
 
in Switzerland, have
 
maturities that are
 
within the
 
forecasting
horizon.
Scenario weights and stage allocation
Potential effect
 
on stage 1 and stage
 
2 positions from
 
changing scenario
 
weights or moving to
 
an ECL lifetime
 
calculation
 
as of 31 December
 
2022
Actual ECL
allowances and
provisions,
including staging
(as per Note 9)
 
Pro forma ECL allowances and provisions,
 
including staging
 
and assuming application of 100% scenario weighting
 
Pro forma ECL
allowances and
provisions,
assuming all
positions being
subject to lifetime
ECL
 
Scenarios
Weighted average
100% Baseline
100% Asset price
inflation
100%
Stagflationary
geopolitical crisis
 
100% Global crisis
 
Weighted average
USD m, except where indicated
Segmentation
Private clients with mortgages
(136)
(25)
(13)
(523)
(184)
(473)
Real estate financing
(43)
(26)
(22)
(176)
(30)
(126)
Large corporate clients
(136)
(97)
(84)
(199)
(174)
(235)
SME clients
(86)
(67)
(66)
(162)
(97)
(153)
Other segments
(125)
(114)
(111)
(145)
(153)
(281)
Total
(526)
(329)
(295)
(1,204)
(638)
(1,267)
Scenario weights
ECL is sensitive to changing scenario weights,
 
in particular if narratives and parameters are
 
selected that are not close to
the baseline scenario, highlighting
 
the non-linearity of credit losses.
As
 
shown
 
in the
 
table
 
above,
 
the
 
ECLs
 
for stage 1
 
and
 
stage 2
 
positions
 
would
 
have been
 
USD
329
m (31
 
December
2021:
 
USD
387
m)
 
instead of
 
USD
526
m
 
(31 December
 
2021:
 
USD
503
m)
 
if ECLs
 
had
 
been
 
determined
 
solely
 
on
 
the
baseline scenario
. The weighted-average
 
ECL therefore amounted
 
to
160
% (31 December 2021:
130
%) of the baseline
value. The effects of weighting
 
each of the four scenarios 100%
 
are shown in the table above.
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
433
 
 
Note 19
 
Expected credit loss measurement (continued)
 
Stage allocation and SICR
The determination
 
of what
 
constitutes an
 
SICR is
 
based on
 
management judgment,
 
as explained
 
in Note 1a.
 
Changing
the SICR trigger will have a direct effect on ECLs, as more or fewer positions would be subject to lifetime ECLs under any
scenario.
 
The
 
relevance
 
of
 
the
 
SICR trigger
 
on
 
overall ECL
 
is
 
demonstrated
 
in
 
the table
 
above with
 
the
 
indication that
 
the
 
ECL
allowances and provisions
 
for stage 1 and stage 2 positions
 
would have been USD
1,267
m, if all non-impaired positions
across the
 
portfolio had been
 
measured for
 
lifetime ECLs irrespective of
 
their actual SICR
 
status. This
 
amount compares
with actual stage 1 and 2
 
allowances and provisions of USD
526
m as of 31 December 2022.
Maturity profile
The maturity
 
profile is
 
an important
 
driver in
 
ECLs,
 
in particular
 
for transactions
 
in stage
 
2.
 
A transfer
 
of a
 
transaction
into stage
 
2 may
 
therefore have a
 
significant effect on ECLs.
 
The current maturity
 
profile of most
 
lending books is relatively
short.
 
Lending
 
to large
 
corporate clients
 
is generally
 
between
 
one
 
and two
 
years, with
 
related loan
 
commitments up
 
to four
years. Real estate lending is generally between
 
two and three years in Switzerland, with long
 
dated maturities in the US.
Lombard-lending
 
contracts
 
typically
 
have
 
average
 
contractual
 
maturities
 
of
 
12
 
months
 
or
 
less,
 
and
 
include
 
callable
features.
 
A
 
significant
 
portion
 
of
 
our
 
lending
 
to
 
SMEs
 
and
 
Real
 
estate
 
financings
 
is
 
documented
 
under
 
multi-purpose
 
credit
agreements,
 
which allow
 
for various
 
forms of
 
utilization
 
but are
 
unconditionally cancelable
 
by UBS
 
at any
 
time: a)
 
for
drawings under such agreements with a fixed maturity, the respective term is
 
applied for ECL calculations, or a maximum
of 12 months in stage
 
1; b) for unused
 
credit lines and all drawings
 
that have no fixed
 
maturity (e.g., current
 
accounts),
UBS generally applies a 12-month maturity from the reporting
 
date, given the credit review policies, which require either
continuous monitoring of key indicators and behavioral patterns
 
for smaller positions or an annual formal review for any
other limit. The ECLs for these products
 
are sensitive to shortening
 
or extending the maturity assumption.
 
 
Note 20
 
Fair value measurement
 
a) Valuation principles
All financial and
 
non-financial assets
 
and liabilities measured
 
or disclosed
 
at fair value
 
are categorized
 
into one of
 
three
fair value hierarchy
 
levels in
 
accordance with
 
International F
 
inancial Reporting
 
Standards (IFRS).
 
The fair value
 
hierarchy
is based
 
on
 
the transparency
 
of inputs
 
to the
 
valuation
 
of an
 
asset or
 
liability
 
as of
 
the measurement
 
date.
 
In certain
cases,
 
the
 
inputs
 
used
 
to
 
measure
 
fair value
 
may
 
fall
 
within
 
different
 
levels
 
of
 
the
 
fair value
 
hierarchy.
 
For
 
disclosure
purposes,
 
the level
 
in the
 
hierarchy
 
within
 
which an
 
instrument is
 
classified in
 
its entirety
 
is based
 
on
 
the lowest
 
level
input that is significant to the position’s
 
fair value measurement:
–
 
Level 1 – quoted prices (unadjusted)
 
in active markets for identical assets and liabilities;
–
 
Level 2 – valuation techniques for which
 
all significant inputs are, or
 
are based on, observable market data; or
–
 
Level 3 – valuation techniques for which
 
significant inputs are not
 
based on observable market data.
Fair values are determined
 
using quoted prices in active
 
markets for identical assets
 
or liabilities, where available.
 
Where
the
 
market
 
for
 
a
 
financial
 
instrument
 
or
 
non-financial
 
asset
 
or
 
liability
 
is
 
not
 
active,
 
fair
 
value
 
is
 
established
 
using
 
a
valuation
 
technique,
 
including
 
pricing
 
models.
 
Valuation
 
adjustments
 
may
 
be
 
made
 
to
 
allow
 
for
 
additional
 
factors,
including model, liquidity, credit
 
and funding
 
risks, which are not explicitly
 
captured within the valuation
 
technique, but
which would
 
nevertheless be considered
 
by market participants
 
when establishing
 
a price. The
 
limitations inherent
 
in a
particular valuation
 
technique are
 
considered in
 
the determination of
 
the classification
 
of an asset
 
or liability within
 
the
fair value hierarchy. Generally, the unit of account for a financial instrument is the individual instrument, and
 
UBS applies
valuation
 
adjustments
 
at
 
an
 
individual
 
instrument
 
level,
 
consistent
 
with
 
that
 
unit
 
of
 
account.
 
However,
 
if
 
certain
conditions
 
are
 
met, UBS
 
may estimate
 
the
 
fair
 
value
 
of
 
a
 
portfolio
 
of
 
financial assets
 
and
 
liabilities
 
with
 
substantially
similar and offsetting risk exposures
 
on the basis of the net
 
open risks.
›
 
Refer to Note 20d
 
for more information
 
 
b) Valuation governance
UBS’s
 
fair
 
value
 
measurement
 
and
 
model
 
governance
 
framework
 
includes
 
numerous
 
controls
 
and
 
other
 
procedural
safeguards
 
that are
 
intended
 
to maximize the
 
quality of
 
fair value
 
measurements
 
reported
 
in the
 
financial statements.
New products
 
and valuation techniques
 
must be reviewed
 
and approved
 
by key stakeholders
 
from the risk
 
and finance
control functions. Responsibility
 
for the ongoing
 
measurement of f
 
inancial and non
 
-financial instruments at fair value
 
is
with the business divisions.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
434
 
 
Note 20
 
Fair value measurement (continued)
 
Fair
 
value
 
estimates
 
are
 
validated
 
by
 
the
 
risk
 
and
 
finance
 
control
 
functions,
 
which
 
are
 
independent
 
of
 
the
 
business
divisions. Independent price verification is performed
 
by Finance through benchmarking
 
the business divisions’ fair value
estimates
 
with
 
observable
 
market
 
prices
 
and
 
other
 
independent
 
sources.
 
A
 
governance
 
framework
 
and
 
associated
controls are
 
in place
 
in order
 
to monitor
 
the quality
 
of third
 
-party pricing
 
sources
 
where
 
used.
 
For instruments
 
where
valuation models are used
 
to determine fair value,
 
independent valuation
 
and model control groups
 
within Finance and
Risk Control evaluate UBS’s models on
 
a regular basis, including
 
valuation and model input parameters,
 
as well as pricing.
As a
 
result of the
 
valuation controls
 
employed, valuation
 
adjustments may be
 
made to the
 
business divisions’
 
estimates
of fair value to align with independent
 
market data and the relevant accounting standard.
›
 
Refer to Note 20d
 
for more information
 
 
c) Fair value hierarchy
The table
 
below provides the
 
fair value hierarchy classification
 
of financial
 
and non-financial assets and
 
liabilities measured
at
 
fair
 
value.
 
The
 
narrative
 
that
 
follows
 
describes
 
valuation
 
techniques
 
used
 
in
 
measuring
 
their fair
 
value
 
of
 
different
product types
 
(including
 
significant valuation
 
inputs and
 
assumptions used),
 
and the factors
 
considered in
 
determining
their classification within the fair
 
value hierarchy.
During 2022, 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
31.12.22
31.12.21
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
96,263
10,284
1,488
108,034
113,722
15,012
2,299
131,033
of which: Equity instruments
83,095
789
126
84,010
97,983
1,090
149
99,222
of which: Government bills / bonds
5,496
950
18
6,464
7,135
1,351
10
8,496
of which: Investment fund units
6,673
596
61
7,330
7,843
1,364
21
9,229
of which: Corporate and municipal bonds
976
6,509
541
8,026
708
7,791
556
9,055
of which: Loans
0
1,179
628
1,807
0
3,099
1,443
4,542
of which: Asset-backed securities
22
261
114
397
53
317
120
489
Derivative financial instruments
769
147,876
1,464
150,109
522
116,482
1,140
118,145
of which: Foreign exchange
575
84,882
2
85,459
255
53,046
7
53,307
of which: Interest rate
0
39,345
460
39,805
0
32,747
494
33,241
of which: Equity / index
1
21,542
653
22,195
0
27,861
384
28,245
of which: Credit
0
719
318
1,038
0
1,179
236
1,414
of which: Commodities
0
1,334
30
1,365
0
1,590
16
1,606
Brokerage receivables
0
17,576
0
17,576
0
21,839
0
21,839
Financial assets at fair value not held for trading
26,572
29,110
3,725
59,408
27,278
28,185
4,180
59,642
of which: Financial assets for unit-linked investment
 
contracts
13,071
1
0
13,072
21,110
187
6
21,303
of which: Corporate and municipal bonds
35
14,101
230
14,366
123
13,937
306
14,366
of which: Government bills / bonds
13,103
3,638
0
16,741
5,624
3,236
0
8,860
of which: Loans
0
3,602
736
4,337
0
4,982
892
5,874
of which: Securities financing transactions
0
7,590
114
7,704
0
5,704
100
5,804
of which: Auction rate securities
0
0
1,326
1,326
0
0
1,585
1,585
of which: Investment fund units
307
178
190
675
338
137
117
591
of which: Equity instruments
57
0
792
849
83
2
681
765
Financial assets measured at
 
fair value through other comprehensive
 
income on a recurring basis
Financial assets measured at fair value through
 
other comprehensive income
57
2,182
0
2,239
2,704
6,140
0
8,844
of which: Asset-backed securities
2
0
0
0
0
0
4,849
0
4,849
of which: Government bills / bonds
2
0
26
0
26
2,658
27
0
2,686
of which: Corporate and municipal bonds
57
2,156
0
2,213
45
1,265
0
1,310
Non-financial assets measured at
 
fair value on a recurring basis
Precious metals and other physical commodities
4,471
0
0
4,471
5,258
0
0
5,258
Non-financial assets measured at
 
fair value on a non-recurring
 
basis
Other non-financial assets
3
0
0
21
21
0
0
26
26
Total assets measured
 
at fair value
128,132
207,028
6,698
341,858
149,484
187,658
7,645
344,787
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
435
 
 
Note 20
 
Fair value measurement (continued)
Determination of fair values
 
from quoted market prices or valuation techniques
 
(continued)
1
31.12.22
31.12.21
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
23,578
5,823
114
29,515
25,413
6,170
105
31,688
of which: Equity instruments
16,521
352
78
16,951
18,328
513
83
18,924
of which: Corporate and municipal bonds
36
4,643
27
4,707
30
4,219
17
4,266
of which: Government bills / bonds
5,880
706
1
6,587
5,883
826
0
6,709
of which: Investment fund units
1,141
84
3
1,229
1,172
555
6
1,733
Derivative financial instruments
640
152,582
1,684
154,906
509
118,558
2,242
121,309
of which: Foreign exchange
 
587
87,897
24
88,508
258
53,800
21
54,078
of which: Interest rate
 
0
37,429
116
37,545
0
28,398
278
28,675
of which: Equity / index
 
0
24,963
1,184
26,148
0
33,438
1,511
34,949
of which: Credit
0
920
279
1,199
0
1,412
341
1,753
of which: Commodities
0
1,309
52
1,361
0
1,503
63
1,566
Financial liabilities designated at
 
fair value on a recurring basis
Brokerage payables designated at
 
fair value
0
45,085
0
45,085
0
44,045
0
44,045
Debt issued designated at fair value
0
62,603
9,240
71,842
0
59,606
11,854
71,460
Other financial liabilities designated at fair value
0
30,055
1,978
32,033
0
29,258
3,156
32,414
of which: Financial liabilities related to unit-linked
 
investment contracts
0
13,221
0
13,221
0
21,466
0
21,466
of which: Securities financing transactions
0
15,333
0
15,333
0
6,375
2
6,377
of which: Over-the-counter
 
debt instruments and other
0
993
691
1,684
0
1,417
814
2,231
Total liabilities measured
 
at fair value
24,219
296,148
13,015
333,382
25,922
257,637
17,357
300,916
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 Effective 1 April 2022, a portfolio of
 
assets previously classified as Financial
 
assets measured at fair value
 
through other
 
comprehensive income was
 
reclassified to Other financial
 
assets measured at amortized cost.
Refer to Note 1 for more information.
 
3 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.
Valuation techniques
 
UBS uses widely recognized valuation techniques for determining
 
the fair value of
 
financial and non-financial instruments
that are
 
not actively
 
traded and
 
quoted.
 
The most frequently
 
applied
 
valuation techniques
 
include discounted
 
value of
expected cash flows, relative value
 
and option pricing methodologies.
Discounted
 
value
 
of
 
expected
 
cash
 
flows
 
is
 
a
 
valuation
 
technique
 
that
 
measures
 
fair
 
value
 
using
 
estimated
 
expected
future cash
 
flows from assets or
 
liabilities and then
 
discounts these cash
 
flows using a discount
 
rate or discount
 
margin
that
 
reflects
 
the
 
credit
 
and
 
/ or
 
funding spreads
 
required
 
by
 
the market
 
for
 
instruments
 
with
 
similar
 
risk and
 
liquidity
profiles to
 
produce
 
a present
 
value.
 
When using
 
such valuation
 
techniques,
 
expected
 
future cash
 
flows
 
are estimated
using an
 
observed or
 
implied market price
 
for the
 
future cash
 
flows or by
 
using industry
 
-standard
 
cash flow projection
models.
 
The
 
discount
 
factors
 
within
 
the
 
calculation
 
are
 
generated
 
using
 
industry-standard
 
yield
 
curve
 
modeling
techniques and models.
Relative value
 
models measure
 
fair value
 
based on the
 
market prices
 
of equivalent
 
or comparable
 
assets or
 
liabilities,
 
making
adjustments for differences
 
between the characteristics
 
of the observed instrument
 
and the instrument
 
being valued.
Option
 
pricing
 
models
 
incorporate
 
assumptions
 
regarding
 
the
 
behavior
 
of
 
future
 
price
 
movements
 
of
 
an
 
underlying
referenced
 
asset
 
or
 
assets
 
to
 
generate
 
a
 
probability-weighted
 
future
 
expected
 
payoff
 
for
 
the
 
option.
 
The
 
resulting
probability-weighted expected
 
payoff is
 
then discounted
 
using discount
 
factors generated
 
from industry
 
-standard yield
curve modeling
 
techniques
 
and
 
models. The
 
option pricing
 
model may
 
be implemented
 
using a
 
closed-form analytical
formula or other mathematical techniques
 
(e.g., binomial
 
tree or Monte Carlo simulation).
Where available, valuation techniques use market-observable assumptions and inputs. If such
 
data is not available,
 
inputs
may be derived
 
by reference
 
to similar assets
 
in active
 
markets, from recent
 
prices for
 
comparable transactions
 
or from
other observable market data. In such
 
cases, the inputs selected
 
are based on historical
 
experience and practice for
 
similar
or analogous instruments,
 
derivation of input
 
levels based
 
on similar
 
products with observable
 
price levels, and knowledge
of current market conditions and
 
valuation approaches.
For
 
more
 
complex
 
instruments,
 
fair
 
values
 
may
 
be
 
estimated
 
using
 
a
 
combination
 
of
 
observed
 
transaction
 
prices,
consensus pricing services and relevant
 
quotes. Consideration is given to the nature of the
 
quotes (e.g., indicative or firm)
and the
 
relationship of recently
 
evidenced market activity
 
to the prices
 
provided by
 
consensus pricing services. UBS
 
also
uses internally developed models, which are typically
 
based on valuation methods and techniques recognized as standard
within the
 
industry. Assumptions
 
and inputs used in
 
valuation techniques include
 
benchmark interest rate
 
curves, credit
and
 
funding
 
spreads used
 
in estimating
 
discount
 
rates,
 
bond
 
and
 
equity prices,
 
equity
 
index
 
prices,
 
foreign
 
exchange
rates, levels
 
of market
 
volatility and
 
correlation. Refer
 
to Note
 
20e
 
for more
 
information.
 
The discount
 
curves used
 
by
UBS incorporate the funding
 
and credit characteristics of the instruments to
 
which they are applied.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
436
 
 
Note 20
 
Fair value measurement (continued)
Financial instruments
 
excluding derivatives:
 
valuation and classification
 
in the fair value
 
hierarchy
Product
Valuation and
 
classification in the fair value hierarchy
Government bills
and bonds
Valuation
–
 
Generally valued using prices
 
obtained directly from the market.
–
 
Instruments not
 
priced directly using
 
active-market data are
 
valued using discounted
 
cash flow valuation
techniques that incorporate market
 
data for similar government instruments.
 
Fair value
hierarchy
–
 
Generally traded in
 
active markets with prices that
 
can be obtained directly from these
 
markets, resulting
in classification as Level 1,
 
while the remaining positions are classified as Level
 
2 and Level 3.
Corporate and
municipal bonds
Valuation
–
 
Generally
 
valued
 
using
 
prices
 
obtained
 
directly
 
from
 
the
 
market
 
for
 
the
 
security,
 
or
 
similar
 
securities,
adjusted for seniority, maturity
 
and liquidity.
–
 
When
 
prices are
 
not available,
 
instruments are
 
valued using
 
discounted
 
cash flow
 
valuation techniques
incorporating the credit spread of
 
the issuer or similar issuers.
–
 
For
 
convertible
 
bonds
 
without directly
 
comparable
 
prices,
 
issuances
 
may
 
be priced
 
using
 
a convertible
bond model.
Fair value
hierarchy
–
 
Generally classified as Level 1
 
or Level 2,
 
depending on the depth of trading activity behind
 
price sources.
–
 
Level 3 instruments have no suitable
 
pricing information available.
Traded
 
loans and
loans measured at
fair value
Valuation
–
 
Valued directly using market prices
 
that reflect recent transactions
 
or quoted dealer prices, where
 
available.
–
 
Where
 
no market
 
price
 
data is
 
available, loans
 
are valued
 
by relative
 
value benchmarking
 
using pricing
derived from debt instruments in
 
comparable entities or different products in
 
the same entity, or by using
a credit
 
default swap valuation
 
technique, which
 
requires inputs
 
for credit
 
spreads, credit
 
recovery rates
and
 
interest rates.
 
Recently originated
 
commercial
 
real estate
 
loans are
 
measured
 
using a
 
securitization
approach based on rating agency guidelines.
Fair value
hierarchy
–
 
Instruments with suitably deep
 
and liquid pricing information are classified as
 
Level 2.
–
 
Positions requiring the use of valuation techniques, or for which the price sources have insufficient trading
depth, are classified as Level 3.
Investment fund
units
Valuation
–
 
Predominantly exchange
 
-traded, with readily available quoted prices in liquid
 
markets.
–
 
Where market prices are not available,
 
fair value may be measured using net asset values (NAVs)
 
.
Fair value
hierarchy
–
 
Listed
 
units
 
are
 
classified
 
as Level
 
1, provided
 
there
 
is sufficient
 
trading
 
activity to
 
justify
 
active-market
classification, while other positions are
 
classified as Level 2.
–
 
Positions for which NAVs are not available
 
are classified as Level 3.
Asset-backed
securities (ABS)
Valuation
–
 
For liquid securities, the valuation process will use trade and price data, updated for movements in market
levels between the
 
time of trading and
 
the time of valuation. Less liquid
 
instruments are measured using
discounted expected cash flows incorporating
 
price data for
 
instruments or indices with
 
similar risk profiles.
Fair value
hierarchy
–
 
Residential
 
mortgage
-
backed
 
securities
,
c
ommercial
 
mortgage
-
backed
 
securities
 
and
 
other
 
ABS
 
are
generally classified as Level 2. However, if significant inputs are unobservable, or if market or fundamental
data is not available, they are
 
classified as Level 3.
Auction rate
securities (ARS)
Valuation
–
 
ARS
 
are
 
valued
 
utilizing
 
a
 
discounted
 
cash
 
flow
 
methodology.
 
The
 
model
 
captures
 
interest
 
rate
 
risk
emanating from the
 
note coupon, credit risk
 
attributable to the underlying
 
closed-end fund
 
investments,
liquidity risk as a function of
 
the level of trading volume in these
 
positions, and extension risk
 
,
 
as ARS are
perpetual instruments that require
 
an assumption regarding their maturity
 
or issuer redemption date.
 
Fair value
hierarchy
–
 
Granular and liquid
 
pricing information is generally
 
not available for ARS.
 
As a result, these
 
securities are
classified as Level 3.
Equity instruments
Valuation
–
 
Listed equity instruments are
 
generally valued using prices obtained directly from
 
the market.
–
 
Unlisted equity
 
holdings, including
 
private equity
 
positions, are
 
initially marked
 
at their
 
transaction price
and are
 
revalued when
 
reliable evidence
 
of price
 
movement becomes
 
available or
 
when the
 
position
 
is
deemed to be impaired.
 
Fair value
hierarchy
–
 
The majority
 
of equity
 
securities are
 
actively
 
traded on
 
public stock
 
exchanges where
 
quoted prices
 
are
readily and regularly available, resulting
 
in Level 1 classification.
–
 
Equity securities less actively traded
 
will be classified as Level 2 and illiquid
 
positions as Level 3.
Financial assets for
unit-linked
investment
contracts
Valuation
–
 
The majority of assets are listed on
 
exchanges and fair values are determined using quoted
 
prices.
Fair value
hierarchy
–
 
Most assets are classified as
 
Level 1 if actively traded, or Level 2 if trading is not active.
–
 
Instruments for which prices are
 
not readily available are classified as
 
Level 3.
Securities
financing
transactions
Valuation
–
 
These instruments are
 
valued using discounted expected
 
cash flow techniques. The
 
discount rate applied
is based on funding curves that
 
are relevant to the collateral eligibility terms.
Fair value
hierarchy
–
 
Collateral
 
funding curves for
 
these instruments
 
are generally observable
 
and, as
 
a result,
 
these positions
are classified as Level 2.
–
 
Where the collateral terms
 
are non-standard, the funding curve
 
may be considered unobservable
 
and these
positions are classified as Level 3.
Brokerage
receivables and
payables
Valuation
–
 
Fair value is determined based on
 
the value of the underlying balances.
Fair value
hierarchy
–
 
Due to their on-demand nature,
 
these receivables and payables are deemed as Level
 
2.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
437
 
 
Note 20
 
Fair value measurement (continued)
Product
Valuation and
 
classification in the fair value hierarchy
Financial liabilities
related to unit-
linked investment
contracts
Valuation
–
 
The
 
fair values
 
of investment
 
contract liabilities
 
are determined
 
by reference
 
to the
 
fair
 
value of
 
the
corresponding assets.
Fair value
hierarchy
–
 
The
 
liabilities
 
themselves
 
are
 
not actively
 
traded,
 
but
 
are
 
mainly
 
referenced
 
to
 
instruments
 
that
 
are
actively traded and are therefore classified
 
as Level 2.
Precious metals and
other physical
commodities
Valuation
–
 
Physical assets are valued using the
 
spot rate observed in the relevant market
 
.
Fair value
hierarchy
–
 
Generally traded in active markets
 
with prices that can
 
be obtained directly from
 
these markets, resulting
in classification as Level 1.
Debt issued
designated at fair
value
Valuation
–
 
The risk management
 
and the valuation
 
approaches for
 
these instruments are
 
closely aligned with
 
the
equivalent
 
derivatives
 
business
 
and
 
the
 
underlying
 
risk,
 
and
 
the
 
valuation
 
techniques
 
used
 
for
 
this
component are the same a
 
s
 
the relevant valuation techniques described below.
Fair value
hierarchy
–
 
The observability is closely aligned with
 
the equivalent derivatives business and the underlying
 
risk.
 
Derivative instruments: valuation
 
and classification in the fair
 
value hierarchy
The curves used for discounting
 
expected cash flows in
 
the valuation of collateralized
 
derivatives reflect the funding terms
associated with the relevant collateral arrangement for the instrument being valued. These collateral arrangements differ
across
 
counterparties
 
with
 
respect
 
to
 
the
 
eligible
 
currency
and
 
interest
 
terms
 
of
 
the
 
collateral.
 
The
 
majority
 
of
collateralized derivatives are
 
measured using a discount
 
curve based on
 
funding rates derived from overnight
 
interest in
the cheapest eligible currency for the
 
respective counterparty
 
collateral agreement.
Uncollateralized and
 
partially collateralized
 
derivatives are
 
discounted
 
using the
 
alternative reference
 
rate (the
 
ARR) (or
equivalent)
 
curve for
 
the
 
currency of
 
the
 
instrument.
 
As
 
described
 
in
 
Note
 
20d,
 
the fair
 
value
 
of
 
uncollateralized
 
and
partially
 
collateralized derivatives
 
is
 
then adjusted
 
by
 
credit
 
valuation
 
adjustments
 
(CVAs),
 
debit valuation
 
adjustments
(DVAs)
 
and
 
funding valuation
 
adjustments (
 
FVAs),
 
as applicable,
 
to reflect
 
an estimation
 
of the
 
effect of
 
counterparty
credit risk, UBS’s own credit risk, and
 
funding costs and benefits.
›
 
Refer to Note 10
 
for more information
 
about derivative
 
instruments
 
Derivative product
Valuation and
 
classification in the fair value hierarchy
Interest rate
contracts
Valuation
–
 
Interest rate swap contracts are valued by estimating future interest cash flows and discounting those cash
flows using
 
a rate
 
that reflects
 
the appropriate
 
funding rate
 
for the
 
position
 
being
 
measured. The
 
yield
curves used
 
to estimate
 
future index levels
 
and discount
 
rates are generated
 
using market-standard
 
yield
curve models using interest rates associated
 
with current market activity. The key
 
inputs to the models are
interest rate
 
swap rates, forward
 
rate agreement
 
rates, short-term interest
 
rate futures prices,
 
basis swap
spreads and inflation swap rates.
–
 
Interest rate
 
option contracts
 
are valued
 
using various
 
market-standard option
 
models, using
 
inputs that
include interest rate yield curves,
 
inflation curves, volatilities and correlations.
–
 
When the maturity of an interest rate swap or option contract
 
exceeds the term for which standard market
quotes are observable for a significant input parameter, the contracts are valued by extrapolation
 
from the
last observable point using
 
standard assumptions or by reference to
 
another observable comparable input
parameter to represent a
 
suitable proxy for that portion of the term.
Fair value
hierarchy
–
 
The majority of interest rate swaps are classified as Level 2,
 
as the standard market contracts that form the
inputs for yield curve models are
 
generally traded in active and observable
 
markets.
–
 
Options are generally treated as Level 2,
 
as the calibration process enables
 
the model output to
 
be validated
to active-market levels. Models calibrated
 
in this way are
 
then used to
 
revalue the portfolio of
 
both standard
options and more exotic products.
–
 
Interest
 
rate swap
 
or option
 
contracts are
 
classified as
 
Level 3 when
 
the terms
 
exceed standard
 
market-
observable quotes.
–
 
Exotic options for which appropriate volatility or correlation input levels cannot be implied from observable
market data are classified as Level
 
3.
Credit derivative
contracts
Valuation
–
 
Credit
 
derivative
 
contracts
 
are
 
valued
 
using
 
industry-standard
 
models
 
based
 
primarily
 
on market
 
credit
spreads, upfront
 
pricing points and
 
implied recovery rates.
 
Where a derivative
 
credit spread is not directly
available, it may be derived from
 
the price of the reference cash bond.
 
–
 
Asset-backed
 
credit derivatives
 
are valued
 
using a
 
valuation
 
technique similar
 
to that
 
of the
 
underlying
security with an adjustment to reflect
 
the funding differences between
 
cash and synthetic form.
Fair value
hierarchy
–
 
Single-entity
 
and
 
portfolio
 
credit
 
derivative
 
contracts
 
are
 
classified
 
as
 
Level 2
 
when
 
credit
 
spreads
 
and
recovery rates are determined from actively
 
traded observable market data. Where the
 
underlying reference
name(s) are
 
not actively traded
 
and the
 
correlation cannot
 
be directly mapped
 
to actively
 
traded
 
tranche
instruments, these contracts are classified
 
as Level 3.
 
–
 
Asset-backed
 
credit
 
derivatives
 
follow
 
the
 
characteristics
 
of
 
the
 
underlying
 
security
 
and
 
are
 
therefore
distributed across Level 2 and
 
Level 3.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
438
 
 
Note 20
 
Fair value measurement (continued)
Derivative product
Valuation and
 
classification in the fair value hierarchy
Foreign exchange
contracts
Valuation
–
 
Open spot foreign exchange
 
(FX) contracts are valued using the FX spot rate observed
 
in the market.
–
 
Forward FX contracts are
 
valued using the FX spot rate
 
adjusted for forward pricing points
 
observed from
standard market-based
 
sources.
–
 
Over-the-counter
 
(OTC)
 
FX option
 
contracts are
 
valued
 
using market-standard
 
option valuation
 
models.
The models
 
used for shorter-dated
 
options (i.e.,
 
maturities of five
 
years or less)
 
tend to be
 
different than
those used for longer-dated options because the models
 
needed for longer-dated OTC FX
 
contracts require
additional consideration of
 
interest rate and FX rate interdependency.
–
 
The valuation for multi-dimensional FX options uses a multi-local volatility model, which is
 
calibrated to the
observed FX volatilities for all relevant
 
FX pairs.
Fair value
hierarchy
–
 
The
 
markets
 
for
 
FX
 
spot
 
and
 
FX
 
forward
 
pricing
 
points
 
are
 
both
 
actively
 
traded
 
and
 
observable
 
and
therefore such FX contracts are generally
 
classified as Level 2.
 
–
 
A significant
 
proportion of
 
OTC FX option
 
contracts are
 
classified as Level
 
2 as inputs
 
are derived
 
mostly
from standard market
 
contracts traded in active and observable markets.
–
 
OTC FX option contracts
 
classified as Level 3 include
 
multi-dimensional FX options and long-dated FX
 
exotic
option contracts where
 
there is no active market from which to derive
 
volatility or correlation inputs.
Equity / index
contracts
Valuation
–
 
Equity
 
forward contracts
 
have a
 
single stock
 
or index
 
underlying and
 
are
 
valued using
 
market-standard
models. The key
 
inputs to the
 
models are stock
 
prices, estimated dividend
 
rates and equity
 
funding rates
(which are implied from prices of forward contracts observed in the market). Estimated cash
 
flows are then
discounted using
 
market-standard discounted cash
 
flow models using a
 
rate that reflects the
 
appropriate
funding rate for that portion of
 
the portfolio. When no market
 
data is available for the
 
instrument maturity,
they are
 
valued
 
by extrapolation
 
of available
 
data, use
 
of historical
 
dividend data,
 
or use
 
of data
 
for a
related equity.
 
–
 
Equity option contracts are valued using market-standard
 
models that estimate the equity forward level as
described
 
for
 
equity
 
forward
 
contracts
 
and
 
incorporate
 
inputs
 
for
 
stock
 
volatility
 
and
 
for
 
correlation
between
 
stocks
 
within
 
a
 
basket.
 
The
 
probability-weighted
 
expected
 
option
 
payoff
 
generated
 
is
 
then
discounted
 
using
 
market-standard
 
discounted
 
cash
 
flow
 
models
 
applying
 
a
 
rate
 
that
 
reflects
 
the
appropriate funding rate for that portion of the portfolio. When volatility, forward or correlation inputs are
not
 
available,
 
they
 
are
 
valued
 
using
 
extrapolation
 
of
 
available
 
data,
 
historical
 
dividend,
 
correlation
 
or
volatility data, or the equivalent
 
data for a related equity.
Fair value
hierarchy
–
 
As inputs
 
are derived
 
mostly from standard
 
market contracts traded
 
in active
 
and observable
 
markets, a
significant proportion of equity forward
 
contracts are classified as Level 2.
 
–
 
Equity option
 
positions for
 
which inputs are
 
derived from standard
 
market contracts traded
 
in active and
observable markets are also classified as Level 2.
 
Level 3 positions are those for which volatility, forward or
correlation inputs are not ob
 
servable.
Commodity
contracts
Valuation
–
 
Commodity
 
forward
 
and
 
swap
 
contracts are
 
measured
 
using
 
market-standard
 
models
 
that use
 
market
forward levels on standard
 
instruments.
 
–
 
Commodity
 
option
 
contracts
 
are
 
measured
 
using
 
market-standard
 
option
 
models
 
that
 
estimate
 
the
commodity forward
 
level as
 
described
 
for commodity
 
forward and
 
swap contracts,
 
incorporating
 
inputs
for the volatility of the underlying index or commodity. For commodity options
 
on baskets of commodities
or
 
bespoke
 
commodity
 
indices,
 
the
 
valuation
 
technique
 
also
 
incorporates
 
inputs
 
for
 
the
 
correlation
between different commodities or
 
commodity indices.
Fair value
hierarchy
–
 
Individual
 
commodity
 
contracts
 
are
 
typically
 
classified
 
as
 
Level 2,
 
because
 
active
 
forward
 
and
 
volatility
market data is available.
 
d) Valuation adjustments and other items
The output of
 
a valuation
 
technique is always
 
an estimate of
 
a fair value
 
that cannot be
 
measured with complete
 
certainty.
As a result, valuations are adjusted
 
where appropriate and when such factors
 
would be considered by market participants
in estimating fair value, to reflect close-out costs, credit exposure,
 
model-driven valuation uncertainty,
 
funding costs and
benefits, trading restrictions and
 
other factors.
 
Deferred day-1 profit or loss reserves
For new transactions
 
where the
 
valuation technique
 
used to
 
measure fair
 
value requires
 
significant
 
inputs that
 
are not
based on observable market data, the financial instrument is
 
initially recognized
 
at the transaction price. The transaction
price may differ from the fair
 
value obtained using a
 
valuation technique, where
 
any such difference is deferred and
 
not
initially recognized in the income statement.
 
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 pricing
 
of equivalent
 
products or
 
the underlying
 
parameters becomes
 
observable or
 
when
the transaction is closed out.
The table below summarizes the changes
 
in deferred day-1 profit or loss
 
reserves during the
 
respective period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
439
 
 
Note 20
 
Fair value measurement (continued)
 
Deferred day-1 profit
 
or loss reserves
USD m
2022
2021
2020
Reserve balance at the beginning of the
 
year
418
269
146
Profit / (loss) deferred on new transactions
299
459
362
(Profit) / loss recognized in the income statement
(295)
(308)
(238)
Foreign currency translation
0
(2)
0
Reserve balance at the end of the year
422
418
269
Own credit
 
Own
 
credit
 
risk
 
is
 
reflected
 
in
 
the
 
valuation
 
of
 
UBS’s
 
fair
 
value
 
option
 
liabilities
 
where
 
this
 
component
 
is
 
considered
relevant for valuation purposes
 
by UBS’s counterparties and other market participants.
Changes
 
in the
 
fair value
 
of financial
 
liabilities designated
 
at fair
 
value through
 
profit or
 
loss related
 
to own
 
credit are
recognized
 
in
Other
 
comprehensive
 
income
 
directly
 
within
Retained
 
earnings,
 
with
 
no
 
reclassification
 
to
 
the
 
income
statement
 
in
 
future
 
periods.
 
This
 
presentation
 
does
 
not
 
create
 
or
 
increase
 
an
 
accounting
 
mismatch
 
in
 
the
 
income
statement, as UBS does
 
not hedge changes in own credit.
Own credit is estimated using own credit adjustment (OCA) curves, which incorporate observable market data, including
market-observed secondary prices for UBS’s
 
debt and debt
 
curves of peers. In the table
 
below, the change in unrealized
own
 
credit consists
 
of changes
 
in fair
 
value that
 
are attributable
 
to the
 
change
 
in UBS’s
 
credit spreads,
 
as well
 
as the
effect of changes
 
in fair values
 
attributable to
 
factors other than
 
credit spreads,
 
such as redemptions,
 
effects from time
decay and
 
changes
 
in interest
 
and
 
other market
 
rates.
 
Realized
 
own
 
credit is
 
recognized
 
when
 
an instrument
 
with an
associated
 
unrealized
 
OCA
 
is
 
repurchased
 
prior
 
to
 
the
 
contractual
 
maturity
 
date.
 
Life-to-date
 
amounts
 
reflect
 
the
cumulative unrealized change
 
since initial recognition.
›
 
Refer to Note 15
 
for more information
 
about debt issued
 
designated at fair
 
value
 
Own credit adjustments on financial
 
liabilities designated at fair value
Included in Other comprehensive income
For the year ended
USD m
31.12.22
31.12.21
31.12.20
Recognized during the period:
Realized gain / (loss)
 
1
(14)
2
Unrealized gain / (loss)
 
866
60
(295)
Total gain / (loss), before
 
tax
867
46
(293)
USD m
31.12.22
31.12.21
31.12.20
Recognized on the balance sheet
 
as of the end of the period:
Unrealized life-to-date gain / (loss)
 
556
(315)
(381)
of which: debt issued designated at fair value
289
(144)
(233)
of which: other financial liabilities designated at fair value
266
(172)
(148)
Credit valuation adjustments
In
 
order
 
to
 
measure
 
the
 
fair
 
value
 
of
 
OTC
 
derivative
 
instruments,
 
including
 
funded
 
derivative
 
instruments
 
that
 
are
classified as
Financial assets at
 
fair value not
 
held for trading,
 
CVAs are needed to
 
reflect the credit risk
 
of the counterparty
inherent
 
in
 
these
 
instruments.
 
This
 
amount
 
represents
 
the
 
estimated
 
fair
 
value
 
of
 
protection
 
required
 
to
 
hedge
 
the
counterparty credit risk of such
 
instruments. A CVA
 
is determined for each counterparty,
 
considering all exposures
 
with
that counterparty,
 
and is dependent
 
on the expected future value
 
of exposures, default
 
probabilities and recovery
 
rates,
applicable collateral or netting arrangements,
 
break clauses, funding
 
spreads, and other contractual factors.
 
Funding valuation adjustments
FVAs
 
reflect
 
the
 
costs
 
and
 
benefits
 
of
 
funding
 
associated
 
with
 
uncollateralized
 
and
 
partially
 
collateralized
 
derivative
receivables and
 
payables and are
 
calculated as the
 
valuation effect from
 
moving the
 
discounting of
 
the uncollateralized
derivative cash flows from the ARR
 
to OCA using the CVA
 
framework, including the probability of counterparty
 
default.
An FVA is also
 
applied to collateralized derivative assets in
 
cases where the collateral
 
cannot be sold or repledged.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
440
 
 
Note 20
 
Fair value measurement (continued)
Debit valuation adjustments
A DVA is estimated to incorporate own credit in the valuation of derivatives where an
 
FVA is not already recognized. The
DVA calculation
 
is effectively consistent
 
with the CVA
 
framework, being determined
 
for each counterparty,
 
considering
all exposures
 
with that
 
counterparty
 
and
 
taking into
 
account
 
collateral
 
netting
 
agreements,
 
expected
 
future
 
mark-to-
market movements and UBS’s
 
credit default spreads.
Other valuation adjustments
Instruments that are measured as part
 
of a portfolio
 
of combined long and short
 
positions are valued at mid-market
 
levels
to ensure consistent
 
valuation of the
 
long-
 
and short-component
 
risks. A liquidity valuation
 
adjustment is then made
 
to
the overall
 
net long
 
or short
 
exposure
 
to move
 
the fair
 
value to
 
bid or
 
offer as
 
appropriate, reflecting
 
current levels
 
of
market liquidity.
 
The bid
 
–offer
 
spreads
 
used
 
in the
 
calculation of
 
this valuation
 
adjustment
 
are
 
obtained
 
from
 
market
transactions and other relevant sou
 
rces and are updated
 
periodically.
Uncertainties
 
associated
 
with
 
the
 
use
 
of model
 
-based
 
valuations
 
are
 
incorporated
 
into the
 
measurement
 
of
 
fair value
through
 
the use
 
of
 
model
 
reserves.
 
These
 
reserves
 
reflect
 
the
 
amounts
 
that
 
UBS
 
estimates
 
should
 
be
 
deducted
 
from
valuations produced
 
directly by models
 
to incorporate uncertainties
 
in the relevant
 
modeling assumptions,
 
in the model
and market inputs
 
used, or in the
 
calibration of the
 
model output to
 
adjust for known
 
model deficiencies. In
 
arriving at
these estimates,
 
UBS considers
 
a range
 
of market practices,
 
including how
 
it believes market
 
participants would
 
assess
these uncertainties. Model
 
reserves are reassessed periodically
 
in light
 
of data from
 
market transactions, consensus pricing
services and other relevant sources.
 
Balance sheet valuation adjustments
 
on financial instruments
As of
USD m
31.12.22
31.12.21
Credit valuation adjustments
1
(33)
(44)
Funding valuation adjustments
(50)
(49)
Debit valuation adjustments
4
2
Other valuation adjustments
(839)
(913)
of which: liquidity
(311)
(341)
of which: model uncertainty
(529)
(571)
1 Amounts do not include reserves
 
against defaulted counterparties.
 
Other items
In the first
 
half of 2021,
 
UBS AG incurred
 
a loss of
 
USD
861
m as a result
 
of closing out
 
a significant portfolio
 
of swaps
with a
 
US-based client of
 
its prime brokerage
 
business and the
 
unwinding of related
 
hedges, following the client’s
 
default.
This loss is presented within
Other net income from financial instruments
 
measured at fair value through
 
profit or loss
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
441
 
 
Note 20
 
Fair value measurement (continued)
 
e)
 
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,
 
the inputs
 
used in
 
a given
 
valuation technique
 
that are
 
considered
 
significant as
 
of 31
 
December 2022
 
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
 
UBS’s
estimates and assumptions, but rather the different underlying characteristics of the
 
relevant assets and liabilities held by
UBS.
 
The ranges
 
will therefore
 
vary from
 
period
 
to period
 
and parameter
 
to parameter
 
based
 
on characteristics
 
of the
instruments held
 
at
 
each
 
balance sheet
 
date. Furthermore,
 
the ranges
 
of unobservable
 
inputs
 
may differ
 
across other
financial institutions, reflecting the diversity
 
of the products in each firm’s inventory.
 
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)
31.12.22
31.12.21
USD bn
31.12.22
31.12.21
31.12.22
31.12.21
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
0.8
0.9
0.0
0.0
Relative value to
market comparable
Bond price equivalent
14
112
85
16
143
98
points
Discounted expected
cash flows
Discount margin
412
412
434
434
basis
points
Traded loans, loans
measured at fair value,
loan commitments and
guarantees
1.7
2.8
0.0
0.0
Relative value to
market comparable
Loan price equivalent
30
100
97
0
101
99
points
Discounted expected
cash flows
Credit spread
200
200
200
175
800
436
basis
points
Market comparable
and securitization
model
Credit spread
145
1,350
322
28
1,544
241
basis
points
Auction rate securities
1.3
1.6
Discounted expected
cash flows
Credit spread
115
196
144
115
197
153
basis
points
Investment fund units
3
0.3
0.1
0.0
0.0
Relative value to
market comparable
Net asset value
Equity instruments
3
0.9
0.8
0.1
0.1
Relative value to
market comparable
Price
Debt issued designated at
fair value
4
9.2
11.9
Other financial liabilities
designated at fair value
2.0
3.2
Discounted expected
cash flows
Funding spread
23
175
24
175
basis
points
Derivative financial instruments
Interest rate
0.5
0.5
0.1
0.3
Option model
Volatility of interest
rates
75
143
65
81
basis
points
Credit
0.3
0.2
0.3
0.3
Discounted expected
cash flows
Credit spreads
 
9
565
1
583
basis
points
Bond price equivalent
3
277
2
136
points
Equity / index
0.7
0.4
1.2
1.5
Option model
Equity dividend yields
0
20
0
11
%
Volatility of equity
stocks, equity and
other indices
4
120
4
98
%
Equity-to-FX
correlation
(29)
84
(29)
76
%
Equity-to-equity
correlation
(25)
100
(25)
100
%
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 Other
 
financial
liabilities designated
 
at fair
 
value and
 
Derivative financial
 
instruments,
 
as this would
 
not be meaningful.
 
3 The
 
range of
 
inputs is
 
not disclosed,
 
as there
 
is a
 
dispersion of
 
values
 
given the
 
diverse nature
 
of the
investments.
 
4 Debt issued designated at fair value
 
primarily consists of UBS
 
structured notes, which include
 
variable maturity notes with
 
various equity and foreign
 
exchange underlying risks,
 
rates-linked
 
and credit-
linked notes, all of which
 
have embedded derivative
 
parameters that are considered
 
to be unobservable. The
 
equivalent derivative instrument
 
parameters are presented in the respective
 
derivative financial instruments
lines in this table.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
442
 
 
Note 20
 
Fair value measurement (continued)
Significant unobservable inputs in Level
 
3 positions
This section discusses
 
the significant
 
unobservable inputs
 
used in
 
the valuation
 
of Level 3
 
instruments and
 
assesses the
potential effect that
 
a change in
 
each unobservable input
 
in isolation
 
may have
 
on a fair
 
value measurement. Relationships
between observable and
 
unobservable inputs have not been
 
included in the summary below.
 
Input
Description
Bond price
equivalent
–
 
Where
 
market prices are
 
not available
 
for a bond,
 
fair value is
 
measured by
 
comparison with
 
observable pricing data
 
from
similar instruments.
 
Factors considered
 
when selecting
 
comparable instruments include
 
credit quality, maturity
 
and industry
of the issuer.
 
Fair value may be
 
measured either by
 
a direct price
 
comparison or by conversion
 
of an instrument price
 
into a
yield (either as
 
an outright yield or as a spread to the relevant
 
benchmark rate).
 
–
 
For corporate
 
and municipal
 
bonds, the
 
range represents the
 
range of prices
 
from reference issuances
 
used in
 
determining
fair value. Bonds priced at 0 are distressed to the point that
 
no recovery is expected, while prices significantly in excess of
 
100
or
 
par
 
relate
 
to inflation
 
-linked
 
or structured
 
issuances
 
that
 
pay a
 
coupon in
 
excess
 
of
 
the
 
market benchmark
 
as of
 
the
measurement date.
–
 
For credit derivatives, the bond
 
price range represents the range of prices
 
used for reference instruments, which are
 
typically
converted to an equivalent
 
yield or credit spread as part of the valuation process.
Loan price
equivalent
–
 
Where market
 
prices are not
 
available for a
 
traded loan, fair
 
value is measured
 
by comparison with
 
observable pricing
 
data
for
 
similar
 
instruments.
 
Factors
 
considered
 
when
 
selecting
 
comparable
 
instruments
 
include
 
industry
 
segment,
 
collateral
quality, maturity and issuer-specific covenants.
 
Fair value may
 
be measured either by
 
a direct price
 
comparison or by
 
conversion
of an
 
instrument price
 
into a
 
yield. The
 
range represents
 
the range
 
of prices
 
derived
 
from reference
 
issuances of
 
a similar
credit quality
 
used to measure
 
fair value for
 
loans classified as
 
Level 3. Loans priced
 
at 0 are distressed
 
to the point
 
that no
recovery is expected, while a
 
current price of 100 represents a loan that is expected
 
to be repaid in full.
Credit spread
–
 
Valuation models for many credit
 
derivatives require an input
 
for the credit spread, which is
 
a reflection of the
 
credit quality
of
 
the
 
associated
 
referenced
 
underlying. The
 
credit
 
spread
 
of a
 
particular
 
security is
 
quoted
 
in
 
relation
 
to
 
the yield
 
on a
benchmark security or
 
reference rate, typically either US Treasury or
 
ARR,
 
and is generally expressed in terms of basis
 
points.
An increase / (decrease) in credit spread will increase / (decrease) the
 
value of credit protection offered by credit default swaps
and other
 
credit derivative products.
 
The income statement
 
effect from such
 
changes depends
 
on the nature
 
and direction
of the positions held. Credit spreads
 
may be negative where the
 
asset is more creditworthy than
 
the benchmark against which
the spread is calculated.
 
A wider credit spread
 
represents decreasing creditworthiness.
 
The range represents
 
a diverse set of
underlyings,
 
with the
 
lower end
 
of the
 
range representing
 
credits of
 
the highest
 
quality and
 
the upper
 
end of
 
the
 
range
representing greater levels of
 
credit risk.
Discount margin
–
 
The discount margin
 
(DM) spread represents the discount
 
rates applied to present
 
value cash flows of an asset to reflect
 
the
market return required for uncertainty in the estimated cash flows. DM
 
spreads are a rate or rates applied on top
 
of a floating
index (e.g.,
 
Secured Overnight
 
Financing Rate
 
(SOFR)) to discount
 
expected cash
 
flows. Generally, a
 
decrease / (increase)
 
in
the DM in isolation would result in
 
a higher / (lower) fair value.
–
 
The
 
high end
 
of the
 
range relates
 
to securities
 
that
 
are priced
 
low within
 
the
 
market
 
relative
 
to the
 
expected cash
 
flow
schedule. This indicates that
 
the market is pricing an increased risk of credit loss into
 
the security that is greater than what is
being
 
captured by the
 
expected cash
 
flow generation
 
process. The
 
low ends
 
of the
 
ranges are
 
typical of
 
funding rates
 
on
better-quality instruments.
Funding spread
–
 
Structured financing transactions are valued using synthetic funding curves that best represent
 
the assets that are pledged as
collateral for
 
the transactions.
 
They are not representative
 
of where
 
UBS can fund itself
 
on an unsecured
 
basis, but
 
provide
an
 
estimate of
 
where UBS
 
can source
 
and
 
deploy secured
 
funding with
 
counterparties for
 
a given
 
type of
 
collateral. The
funding spreads are expressed in terms of basis points, and if funding spreads widen, this increases the effect of discounting.
 
–
 
A small proportion
 
of structured debt instruments and
 
non-structured fixed-rate
 
bonds within financial
 
liabilities designated
at fair value had an exposure to
 
funding spreads that was longer in duration
 
than the actively traded market.
Volatility
–
 
Volatility measures the variability of future prices for
 
a particular instrument and is generally expressed as
 
a percentage, where
a higher number reflects a more volatile
 
instrument, for which future price movements are
 
more likely to occur. Volatility is a
key input
 
into option
 
models, where
 
it is used
 
to derive
 
a probability-based
 
distribution of
 
future prices for
 
the underlying
instrument.
 
The
 
effect
 
of
 
volatility
 
on
 
individual
 
positions
 
within
 
the
 
portfolio
 
is
 
driven
 
primarily
 
by
 
whether
 
the
 
option
contract is a long
 
or short position. In
 
most cases, the fair value
 
of an option increases
 
as a result of an
 
increase in
 
volatility
and is
 
reduced by
 
a decrease
 
in volatility.
 
Generally,
 
volatility used
 
in the
 
measurement of
 
fair value is
 
derived from active-
market option
 
prices (referred to
 
as implied
 
volatility). A key
 
feature of
 
implied volatility is
 
the volatility “smile”
 
or “skew,”
which represents the effect of
 
pricing options of different option strikes at different
 
implied volatility levels.
–
 
Volatilities of low interest rates tend to be much higher than volatilities of high interest rates. In addition,
 
different currencies
may have significantly different
 
implied volatilities.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
443
 
 
Note 20
 
Fair value measurement (continued)
Input
Description
Correlation
–
 
Correlation measures the interrelationship between the movements of two variables. It is expressed as a percentage between
 
–100%
 
and
 
+100%,
 
where
 
+100%
 
represents
 
perfectly
 
correlated
 
variables
 
(meaning
 
a
 
movement
 
of
 
one
 
variable
 
is
associated with a
 
movement of the
 
other variable in the
 
same direction) and –100%
 
implies that the
 
variables are inversely
correlated
 
(meaning
 
a
 
movement
 
of
 
one
 
variable
 
is
 
associated
 
with
 
a
 
movement
 
of
 
the
 
other
 
variable
 
in
 
the
 
opposite
direction). The effect of correlation on the measurement of fair value depends on
 
the specific terms of the instruments being
valued, reflecting the range of
 
different payoff features within such instruments.
–
 
Equity-to-FX correlation is important
 
for equity options based on a currency other than
 
the currency of the underlying stock.
Equity-to-equity correlation is particularly important for
 
complex options that incorporate, in some manner, different equities
in the projected payoff.
Equity dividend
yields
–
 
The derivation
 
of a forward
 
price for an
 
individual stock or
 
index is important
 
for measuring
 
fair value for
 
forward or
 
swap
contracts and for measuring fair value using option pricing
 
models. The relationship between the current stock price and the
forward price is based on a combination of expected
 
future dividend levels and payment timings, and, to a lesser extent, the
relevant funding rates applicable to the stock
 
in question. Dividend yields are
 
generally expressed as an
 
annualized percentage
of the
 
share price, with
 
the lowest limit
 
of 0% representing
 
a stock that
 
is not expected
 
to pay any
 
dividend. The
 
dividend
yield and
 
timing represent
 
the most significant
 
parameter in
 
determining fair
 
value for
 
instruments that
 
are sensitive
 
to an
equity forward price.
 
f) 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
 
favorable
 
and
 
unfavorable
 
alternative
 
assumptions
 
would
change fair value significantly, and the estimated effect thereof. The table below does not represent the estimated effect
of stress
 
scenarios.
 
Interdependencies
 
between
 
Level 1,
 
2 and
 
3 parameters
 
have
 
not
 
been
 
incorporated in
 
the table.
Furthermore, direct
 
interrelationships
 
between the
 
Level 3 parameters
 
discussed below
 
are not
 
a significant element
 
of
the valuation uncertainty.
Sensitivity data is estimated
 
using a number of
 
techniques, including the
 
estimation of
 
price dispersion among
 
different
market participants,
 
variation in
 
modeling approaches
 
and reasonably possible
 
changes to assumptions
 
used within the
fair value measurement
 
process. The
 
sensitivity ranges
 
are not
 
always symmetrical
 
around
 
the fair values,
 
as the inputs
used in valuations are not
 
always precisely in the middle of the favorable and
 
unfavorable range.
Sensitivity data
 
is determined
 
at a product
 
or parameter level
 
and then
 
aggregated assuming
 
no diversification
 
benefit.
Diversification would
 
incorporate estimated
 
correlations
 
across different
 
sensitivity results
 
and,
 
as such,
 
would result
 
in
an overall
 
sensitivity that
 
would
 
be less
 
than the
 
sum of
 
the individual
 
component
 
sensitivities. However,
 
UBS
 
believes
that the diversification benefit is not
 
significant to this analysis.
 
 
Sensitivity of fair value measurements
 
to changes in unobservable input
 
assumptions
1
31.12.22
31.12.21
USD m
Favorable
 
changes
Unfavorable
 
changes
Favorable
 
changes
Unfavorable
 
changes
Traded loans, loans
 
measured at fair value, loan
 
commitments and guarantees
19
(12)
19
(13)
Securities financing transactions
33
(37)
41
(53)
Auction rate securities
46
2
(46)
2
66
(66)
Asset-backed securities
27
(27)
20
(20)
Equity instruments
183
(161)
173
(146)
Interest rate derivatives, net
18
2
(12)
2
29
(19)
Credit derivatives, net
3
(4)
5
(8)
Foreign exchange derivatives,
 
net
10
(5)
19
(11)
Equity / index derivatives, net
361
(330)
368
(335)
Other
39
2
(62)
2
50
(73)
Total
738
(696)
790
(744)
1 Sensitivity
 
of issued and over-the
 
-counter debt instruments
 
is reported with
 
the equivalent
 
derivative or securities
 
financing instrument.
 
2 Includes refinements
 
applied in estimating
 
valuation uncertainty
 
across
various parameters.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
444
 
 
Note 20
 
Fair value measurement (continued)
 
g) Level 3 instruments: movements
 
during the period
The table below
 
presents additional
 
information about
 
material movements in
 
Level 3
 
assets and
 
liabilities measured at
fair value on a recurring basis,
 
excluding any related hedging
 
activity.
Assets and
 
liabilities transferred
 
into or
 
out of
 
Level 3 are presented
 
as if those
 
assets or
 
liabilities had
 
been transferred
at the beginning of
 
the year.
 
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 twelve months ended
 
31 December 2022
2
Financial assets at fair value held
 
for
trading
2.3
(0.3)
(0.3)
0.3
(1.8)
0.5
0.0
0.7
(0.3)
(0.0)
1.5
of which: Investment fund units
0.0
(0.0)
(0.0)
0.0
(0.0)
0.0
0.0
0.1
(0.0)
(0.0)
0.1
of which: Corporate and municipal
bonds
0.6
(0.0)
(0.0)
0.3
(0.6)
0.0
0.0
0.4
(0.0)
(0.0)
0.5
of which: Loans
1.4
(0.1)
(0.1)
0.0
(1.1)
0.5
0.0
0.0
(0.2)
0.0
0.6
Derivative financial instruments –
assets
1.1
0.6
0.3
0.0
0.0
0.4
(0.7)
0.1
(0.0)
(0.0)
1.5
of which: Interest rate
0.5
0.3
0.3
0.0
0.0
0.0
(0.2)
0.0
(0.1)
(0.0)
0.5
of which: Equity / index
0.4
0.2
0.1
0.0
0.0
0.4
(0.3)
0.1
(0.0)
(0.0)
0.7
of which: Credit
0.2
0.1
(0.1)
0.0
0.0
0.0
(0.2)
0.0
0.1
0.0
0.3
Financial assets at fair value not
 
held
for trading
4.2
0.1
0.1
0.7
(1.2)
0.1
(0.0)
0.2
(0.3)
(0.0)
3.7
of which: Loans
0.9
(0.0)
(0.0)
0.4
(0.4)
0.1
0.0
0.1
(0.3)
(0.0)
0.7
of which: Auction rate securities
1.6
0.1
0.0
0.0
(0.3)
0.0
0.0
0.0
0.0
0.0
1.3
of which: Equity instruments
0.7
0.0
0.0
0.1
(0.1)
0.0
0.0
0.1
0.0
(0.0)
0.8
Derivative financial instruments –
liabilities
2.2
(0.8)
(0.4)
0.0
0.0
1.1
(0.9)
0.3
(0.2)
(0.1)
1.7
of which: Interest rate
0.3
(0.3)
(0.0)
0.0
0.0
0.1
(0.0)
0.0
(0.0)
(0.0)
0.1
of which: Equity / index
1.5
(0.4)
(0.3)
0.0
0.0
0.8
(0.7)
0.1
(0.2)
(0.0)
1.2
of which: Credit
0.3
(0.1)
(0.0)
0.0
0.0
0.1
(0.1)
0.1
(0.0)
(0.0)
0.3
Debt issued designated at fair value
11.9
(1.3)
(0.9)
0.0
0.0
4.7
(3.1)
0.7
(3.3)
(0.3)
9.2
Other financial liabilities designated at
fair value
3
3.2
(1.0)
(1.0)
0.0
0.0
0.0
(0.1)
0.1
(0.2)
(0.0)
2.0
 
For the twelve months ended
 
31 December 2021
Financial assets at fair value held
 
for
trading
2.3
(0.0)
(0.1)
0.3
(1.6)
1.2
0.0
0.3
(0.3)
(0.0)
2.3
of which: Investment fund units
0.0
(0.0)
(0.0)
0.0
(0.0)
0.0
0.0
0.0
(0.0)
(0.0)
0.0
of which: Corporate and municipal
bonds
0.8
0.0
(0.0)
0.2
(0.4)
0.0
0.0
0.0
(0.1)
(0.0)
0.6
of which: Loans
1.1
0.0
(0.0)
0.0
(0.8)
1.2
0.0
0.0
(0.2)
0.0
1.4
Derivative financial instruments –
assets
1.8
(0.2)
(0.1)
0.0
0.0
0.5
(0.7)
0.1
(0.3)
(0.0)
1.1
of which: Interest rate
0.5
0.1
0.1
0.0
0.0
0.1
(0.2)
0.0
(0.1)
(0.0)
0.5
of which: Equity / index
0.9
(0.1)
(0.1)
0.0
0.0
0.3
(0.4)
0.0
(0.2)
(0.0)
0.4
of which: Credit
0.3
(0.1)
(0.1)
0.0
0.0
0.0
(0.1)
0.0
(0.0)
0.0
0.2
Financial assets at fair value not
 
held
for trading
3.9
0.1
0.1
1.0
(0.6)
0.0
0.0
0.1
(0.3)
(0.0)
4.2
of which: Loans
0.9
(0.0)
0.0
0.6
(0.3)
0.0
0.0
0.0
(0.3)
(0.0)
0.9
of which: Auction rate securities
1.5
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.6
of which: Equity instruments
0.5
0.1
0.1
0.1
(0.1)
0.0
0.0
0.0
(0.0)
(0.0)
0.7
Derivative financial instruments –
liabilities
3.5
0.2
(0.0)
0.0
0.0
0.9
(1.8)
0.0
(0.5)
(0.0)
2.2
of which: Interest rate
0.5
(0.1)
(0.1)
0.0
0.0
0.0
(0.1)
0.0
(0.0)
(0.0)
0.3
of which: Equity / index
2.3
0.3
0.1
0.0
0.0
0.8
(1.5)
0.0
(0.4)
(0.0)
1.5
of which: Credit
0.5
(0.1)
(0.1)
0.0
0.0
0.0
(0.0)
0.0
(0.1)
(0.0)
0.3
Debt issued designated at fair value
9.6
0.7
0.6
0.0
0.0
7.1
(4.2)
0.1
(1.2)
(0.2)
11.9
Other financial liabilities designated at
fair value
2.1
0.0
0.0
0.0
0.0
1.3
(0.2)
0.0
(0.0)
(0.0)
3.2
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.
 
2 Total
 
Level 3
 
assets as
 
of 31 December
 
2022
 
were USD
6.7
bn
(31 December 2021:
 
USD
7.6
bn). Total Level
 
3 liabilities
 
as of 31 December
 
2022 were
 
USD
13.0
bn (31 December 2021:
 
USD
17.4
bn).
 
3 Of the
 
USD
1.0
bn in net gains
 
/ losses that
 
is included in
 
comprehensive
income, USD
0.6
bn is recognized
 
in the Income
 
statement and
 
USD
0.4
bn is recognized
 
in the Statement
 
of comprehensive
 
income in
 
Gains / (losses)
 
from own credit
 
on financial liabilities
 
designated at fair
 
value,
before tax.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
445
 
 
Note 20
 
Fair value measurement (continued)
 
h) Maximum exposure to credit risk
 
for financial instruments measured
 
at fair value
The tables below provide UBS AG’s maximum exposure to credit risk for financial instruments measured at fair value and
the respective collateral and
 
other credit enhancements mitigating
 
credit risk for these
 
classes of financial instruments.
 
The maximum exposure
 
to credit risk
 
includes the
 
carrying amounts
 
of financial instruments
 
recognized on
 
the balance
sheet subject to credit risk
 
and the notional amounts for off-balance sheet arrangements. Where information is available,
collateral is presented at fair
 
value. For other collateral,
 
such as real estate,
 
a reasonable alternative
 
value is used. Credit
enhancements,
 
such
 
as
 
credit
 
derivative
 
contracts
 
and
 
guarantees,
 
are
 
included
 
at
 
their
 
notional
 
amounts.
 
Both
 
are
capped
 
at the
 
maximum exposure
 
to credit
 
risk for
 
which they
 
serve as
 
security. The
 
“Risk
 
management and
 
control”
section of this
 
report describes
 
management’s view
 
of credit
 
risk and
 
the related exposures,
 
which can differ
 
in certain
respects from the requirements of IFRS.
 
Maximum exposure to credit
 
risk
 
31.12.22
Maximum
exposure to
credit risk
Collateral
Credit enhancements
Exposure to
credit risk
after collateral
and credit
enhancements
USD bn
Cash
collateral
received
Collateralized
by equity and
debt
instruments
Secured by
real estate
Other
 
collateral
Netting
Credit
derivative
contracts
Guarantees
 
Financial assets measured at
 
fair value on the balance
 
sheet
1
Financial assets at fair value
 
held for trading – debt instruments
2,3
16.7
 
16.7
Derivative financial instruments
4
150.1
5.9
133.5
10.7
Brokerage receivables
17.6
17.3
0.3
Financial assets at fair value not
 
held for trading – debt instruments
5
44.8
11.4
33.4
Total financial assets
 
measured at fair value
229.2
0.0
34.6
0.0
0.0
133.5
0.0
0.0
61.2
Guarantees
6
0.2
0.2
0.0
31.12.21
Maximum
exposure to
credit risk
Collateral
Credit enhancements
Exposure to
credit risk
after collateral
and credit
enhancements
USD bn
Cash
collateral
received
Collateralized
by equity and
debt
instruments
Secured by
real estate
Other
 
collateral
Netting
Credit
derivative
contracts
Guarantees
 
Financial assets measured at
 
fair value on the balance
 
sheet
1
Financial assets at fair value
 
held for trading – debt instruments
2,3
22.6
 
22.6
Derivative financial instruments
4
118.1
4.2
103.2
10.7
Brokerage receivables
21.8
0.0
21.6
0.2
Financial assets at fair value not
 
held for trading – debt instruments
5
37.0
0.0
11.2
25.7
Total financial assets
 
measured at fair value
199.5
0.0
37.1
0.0
0.0
103.2
0.0
0.0
59.2
Guarantees
6
0.2
0.0
0.2
0.0
1 The maximum exposure
 
to loss is generally
 
equal to the carrying amount
 
and subject to change
 
over time with market
 
movements.
 
2 These positions
 
are generally managed under the
 
market risk framework.
 
For
the purpose of this
 
disclosure, collateral
 
and credit enhancements
 
were not considered.
 
3 Does not include
 
investment fund
 
units.
 
4 The
 
amount shown in the
 
“Netting” column
 
represents the
 
netting potential
not recognized on the balance
 
sheet. Refer to Note
 
21 for more information.
 
5 Financial assets
 
at fair value not
 
held for trading collateralized
 
by securities consisted
 
of structured loans and reverse
 
repurchase and
securities borrowing agreements.
 
6 The amount
 
shown in the “Guarantees”
 
column largely relates to
 
sub-participations.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
446
 
 
Note 20
 
Fair value measurement (continued)
 
i) Financial instruments not measured
 
at fair value
The table below provides
 
the estimated fair values of financial instruments
 
not measured
 
at fair value.
 
Financial instruments not measured
 
at fair value
31.12.22
31.12.21
Carrying
amount
Fair value
Carrying
amount
Fair value
USD bn
Total
Carrying
amount
approximates
fair value
1
Level 1
Level 2
Level 3
Total
Total
Carrying
amount
approximates
fair value
1
Level 1
Level 2
Level 3
Total
Assets
Cash and balances at central banks
169.4
169.4
0.1
0.0
0.0
169.4
192.8
192.7
0.1
0.0
0.0
192.8
Loans and advances to banks
14.7
13.9
0.0
0.7
0.0
14.6
15.4
14.6
0.0
0.7
0.0
15.3
Receivables from securities financing
transactions measured at amortized cost
67.8
64.3
0.0
1.8
1.7
67.8
75.0
71.6
0.0
1.3
2.1
75.0
Cash collateral receivables on derivative
instruments
35.0
35.0
0.0
0.0
0.0
35.0
30.5
30.5
0.0
0.0
0.0
30.5
Loans and advances to customers
390.0
136.9
0.0
45.9
195.0
377.7
398.7
163.7
0.0
43.8
190.4
397.9
Other financial assets measured at amortized
cost
2
53.4
13.0
10.3
25.1
2.5
51.0
26.2
4.1
9.3
10.7
2.4
26.5
Liabilities
Amounts due to banks
11.6
8.9
0.0
2.7
0.0
11.6
13.1
9.1
0.0
4.0
0.0
13.1
Payables from securities financing
transactions measured at amortized cost
4.2
3.5
0.0
0.7
0.0
4.2
5.5
4.1
0.0
1.5
0.0
5.5
Cash collateral payables on derivative
instruments
36.4
36.4
0.0
0.0
0.0
36.4
31.8
31.8
0.0
0.0
0.0
31.8
Customer deposits
527.2
493.0
0.0
33.9
0.0
526.9
544.8
537.6
0.0
7.3
0.0
544.8
Funding from UBS Group AG measured at
amortized cost
56.1
2.0
0.0
53.7
0.0
55.7
57.3
2.8
0.0
56.0
0.0
58.8
Debt issued measured at amortized cost
59.5
13.4
0.0
45.5
0.0
58.9
82.4
13.0
0.0
69.8
0.0
82.8
Other financial liabilities measured at
amortized cost
3
7.2
7.2
0.0
0.0
0.0
7.2
6.3
6.3
0.0
0.0
0.0
6.3
1 Includes certain financial instruments
 
where the carrying amount
 
is a reasonable approximation
 
of the fair value
 
due to the instruments’
 
short-term nature (instruments
 
that are receivable
 
or payable on demand,
 
or
with a remaining maturity (excluding the effects
 
of callable features) of three months or less).
 
2 Effective 1 April 2022, a portfolio of assets
 
previously classified as Financial assets measured at
 
fair value through other
comprehensive income was
 
reclassified to Other financial
 
assets measured at amortized
 
cost. Refer to Note 1 for information.
 
3 Excludes lease liabilities.
 
The fair values
 
included
 
in the table
 
above have
 
been calculated for
 
disclosure purposes
 
only.
 
The valuation
 
techniques
and assumptions described
 
below relate only
 
to the fair value of UBS’s
 
financial instruments
 
not measured at fair
 
value.
Other institutions
 
may use
 
different
 
methods
 
and
 
assumptions
 
for their
 
fair value
 
estimations,
 
and
 
therefore such
 
fair
value disclosures cannot necessarily be compared from one financial institution to another.
 
The following principles were
applied when determining
 
fair value estimates for financial instruments not
 
measured at fair value:
–
 
For financial
 
instruments
 
with
 
remaining
 
maturities
 
greater
 
than three
 
months,
 
the
 
fair value
 
was determined
 
from
quoted market prices, if available.
–
 
Where quoted market prices were not
 
available, the fair values
 
were estimated by discounting
 
contractual cash flows
using
 
current
 
market interest
 
rates or
 
appropriate
 
yield
 
curves for
 
instruments
 
with
 
similar credit
 
risk and
 
maturity.
These estimates generally include adjustments
 
for counterparty credit risk or UBS’s
 
own credit.
–
 
For short-term financial instruments
 
with remaining maturities
 
of three months or
 
less, the carrying amount,
 
which is
net of credit loss allowances, is generally
 
considered a reasonable
 
estimate of fair value.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
447
 
 
Note 21
 
Offsetting financial assets and financial
 
liabilities
UBS
 
AG
 
enters
 
into
 
netting
 
agreements
 
with
 
counterparties
 
to
 
manage
 
the
 
credit
 
risks
 
associated
 
primarily
 
with
repurchase
 
and
 
reverse
 
repurchase
 
transactions,
 
securities
 
borrowing
 
and
 
lending,
 
over-the-counter
 
derivatives,
 
and
exchange-traded derivatives. These netting
 
agreements and similar arrangements
 
generally enable the
 
counterparties to
set
 
off
 
liabilities
 
against
 
available
 
assets
 
received
 
in
 
the
 
ordinary
 
course
 
of
 
business
 
and
 
/
 
or
 
in
 
the
 
event
 
that
 
the
counterparties to the transaction are
 
unable to fulfill their contractual
 
obligations.
 
The tables
 
below provide
 
a summary of financial
 
assets and
 
financial liabilities
 
subject to
 
offsetting, enforceable
 
master
netting
 
arrangements
 
and
 
similar
 
agreements,
 
as
 
well
 
as
 
financial
 
collateral
 
received
 
or
 
pledged
 
to
 
mitigate
 
credit
exposures for these financial instruments
 
.
 
UBS
 
AG
 
engages
 
in
 
a
 
variety
 
of
 
counterparty
 
credit
 
risk
 
mitigation
 
strategies
 
in
 
addition
 
to
 
netting
 
and
 
collateral
arrangements. Therefore,
 
the net amounts presented
 
in the tables below
 
do not purport
 
to represent their actual
 
credit
risk exposure.
 
 
Financial
 
assets subject to offsetting, enforceable master
 
netting arrangements and
 
similar agreements
Assets subject to netting
 
arrangements
 
Netting recognized on the balance sheet
Netting potential not recognized on
the balance sheet
3
Assets not
subject to netting
arrangements
4
Total assets
As of 31.12.22, USD bn
Gross assets
before netting
Netting with
 
gross liabilities
2
Net assets
recognized
on the
balance
 
sheet
Financial
liabilities
Collateral
received
Assets after
consideration
of
netting
potential
Assets
recognized
on the
balance
 
sheet
Total assets
after
consideration
of netting
 
potential
Total assets
recognized
 
on the
 
balance
sheet
Receivables from securities financing
transactions measured at amortized cost
60.8
(11.1)
49.6
(3.0)
(46.4)
0.3
18.2
18.5
67.8
Derivative financial instruments
 
147.4
(2.5)
144.9
(110.9)
(28.5)
5.5
5.2
10.7
150.1
Cash collateral receivables on
 
derivative instruments
1
33.5
0.0
33.5
(20.9)
(1.9)
10.6
1.5
12.1
35.0
Financial assets at fair value
 
not held for trading
85.6
(76.8)
8.7
(1.5)
(7.3)
0.0
50.7
50.7
59.4
of which: reverse
 
repurchase agreements
84.4
(76.8)
7.6
(1.5)
(6.1)
0.0
0.1
0.1
7.7
Total assets
327.2
(90.4)
236.8
(136.3)
(84.1)
16.4
75.6
92.0
312.4
As of 31.12.21, USD bn
Receivables from securities financing
transactions measured at amortized cost
67.7
(13.8)
53.9
(2.9)
(51.0)
0.0
21.1
21.1
75.0
Derivative financial instruments
 
116.0
(3.6)
112.4
(88.9)
(18.5)
5.0
5.8
10.7
118.1
Cash collateral receivables on
 
derivative instruments
1
29.4
0.0
29.4
(15.2)
(3.3)
11.0
1.1
12.1
30.5
Financial assets at fair value
 
not held for trading
93.1
(87.6)
5.5
(1.1)
(4.4)
0.0
54.1
54.1
59.6
of which: reverse
 
repurchase agreements
93.1
(87.6)
5.5
(1.1)
(4.4)
0.0
0.3
0.3
5.8
Total assets
306.2
(105.0)
201.2
(108.1)
(77.2)
15.9
82.1
98.1
283.3
1 The net
 
amount of
 
Cash collateral
 
receivables
 
on derivative
 
instruments recognized
 
on the balance
 
sheet includes
 
certain OTC
 
derivatives that
 
are net
 
settled on a
 
daily basis either
 
legally or in
 
substance under
IAS 32 principles and
 
exchange-traded
 
derivatives that
 
are economically
 
settled on a daily
 
basis.
 
2 The logic
 
of the table
 
results in amounts
 
presented in
 
the “Netting with
 
gross liabilities”
 
column corresponding
directly to the amounts
 
presented in the “Netting
 
with gross assets” column
 
in the liabilities table
 
presented below.
 
Netting in this column
 
for reverse repurchase
 
agreements presented
 
within the lines “Receivables
from securities financing
 
transactions
 
measured at amortized
 
cost” and
 
“Financial assets
 
at fair value
 
not held for
 
trading”
 
taken together
 
corresponds
 
to the amounts
 
presented for
 
repurchase agreements
 
in the
“Payables from securities financing transactions
 
measured at amortized cost” and “Other financial
 
liabilities designated at fair value” lines in
 
the liabilities table presented below.
 
3 For the purpose of this disclosure,
the amounts of financial instruments
 
and cash collateral presented
 
have been capped so as not to exceed
 
the net amount of fin
 
ancial assets presented on the balance
 
sheet; i.e., over-collateralization,
 
where it exists,
is not reflected in the table.
 
4 Includes assets not subject
 
to enforceable netting
 
arrangements and other
 
out-of-scope items.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
448
 
 
Note 21
 
Offsetting financial assets and financial
 
liabilities (continued)
 
Financial liabilities subject to offsetting,
 
enforceable master netting
 
arrangements and similar agreements
Liabilities subject to netting
 
arrangements
 
Netting recognized on the balance sheet
Netting potential not recognized
 
on the balance sheet
3
Liabilities not
subject
 
to netting
 
arrangements
4
Total liabilities
As of 31.12.22, USD bn
Gross
liabilities
before
netting
Netting with
 
gross assets
2
Net
 
liabilities
recognized
on the
balance
sheet
Financial
assets
Collateral
pledged
Liabilities
after
consideration
 
of netting
potential
Liabilities
recognized
on the
balance
 
sheet
Total
 
liabilities
 
after
consideration
of netting
potential
Total
 
liabilities
recognized
on the
balance
 
sheet
Payables from securities financing
transactions measured at amortized cost
14.1
(11.1)
3.0
(1.3)
(1.8)
0.0
1.2
1.2
4.2
Derivative financial instruments
 
150.3
(2.5)
147.8
(110.9)
(26.2)
10.7
7.1
17.8
154.9
Cash collateral payables on
 
derivative instruments
1
34.9
0.0
34.9
(20.0)
(1.9)
13.0
1.6
14.5
36.4
Other financial liabilities
 
designated at fair value
92.5
(76.9)
15.6
(3.2)
(12.4)
0.0
16.4
16.4
32.0
of which: repurchase agreements
92.1
(76.9)
15.3
(3.2)
(12.1)
0.0
0.1
0.1
15.3
Total liabilities
291.7
(90.4)
201.3
(135.3)
(42.3)
23.7
26.3
49.9
227.6
As of 31.12.21, USD bn
Payables from securities financing
transactions measured at amortized cost
16.9
(12.8)
4.1
(1.8)
(2.3)
0.0
1.4
1.4
5.5
Derivative financial instruments
 
118.4
(3.6)
114.9
(88.9)
(18.1)
7.9
6.4
14.3
121.3
Cash collateral payables on
 
derivative instruments
1
30.4
0.0
30.4
(13.1)
(3.3)
14.0
1.4
15.4
31.8
Other financial liabilities
 
designated at fair value
94.8
(88.6)
6.2
(2.2)
(3.8)
0.2
26.3
26.5
32.4
of which: repurchase agreements
94.6
(88.6)
6.0
(2.2)
(3.8)
0.0
0.4
0.4
6.4
Total liabilities
260.6
(105.0)
155.6
(106.0)
(27.5)
22.1
35.5
57.6
191.1
1 The net amount of Cash collateral
 
payables on derivative instruments
 
recognized on the balance sheet
 
includes certain OTC
 
derivatives that are net settled
 
on a daily basis either legally or in substance
 
under IAS 32
principles and exchange-traded derivativ
 
es that are economically settled on a daily basis.
 
2 The logic of the table results in amounts presented in the “Netting with gross
 
assets” column corresponding to the amounts
presented in the “Netting with gross liabilities” column in the assets table presented above. Netting in this column for
 
repurchase agreements presented within the lines “Payables from
 
securities financing transactions
measured at amortized
 
cost” and
 
“Other financial
 
liabilities designated
 
at fair
 
value” taken
 
together corresponds
 
to the
 
amounts presented
 
for reverse
 
repurchase agreements
 
in the “Receivables
 
from securities
financing transactions
 
measured at amortized cost”
 
and “Financial assets
 
at fair value
 
not held for trading”
 
lines in the
 
assets table presented
 
above.
 
3 For the purpose
 
of this disclosure,
 
the amounts of financial
instruments and cash collateral
 
presented have been capped
 
so as not to exceed the
 
net amount of financial liabilities
 
presented on the balance
 
sheet; i.e., over-collateralization,
 
where it exists, is
 
not reflected in the
table.
 
4 Includes liabilities
 
not subject to enforceable netting
 
arrangements and
 
other out-of-scope items.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
449
 
 
Note 22
 
Restricted and transferred financial
 
assets
This Note
 
provides
 
information about
 
restricted financial
 
assets (Note
 
22a),
 
transfers of
 
financial assets
 
(Note
 
22b
 
and
22c) and financial assets that are
 
received as collateral with the right
 
to resell or repledge
 
these assets (Note 22d).
 
a) Restricted financial assets
Restricted
 
financial assets
 
consist
 
of
 
assets
 
pledged
 
as collateral
 
against
 
an
 
existing
 
liability or
 
contingent
 
liability and
other assets that are otherwise explicitly
 
restricted such that they cannot
 
be used to secure funding.
 
Financial
 
assets
 
are
 
mainly
 
pledged
 
as
 
collateral
 
in
 
securities
 
lending
 
transactions,
 
in
 
repurchase
 
transactions,
 
against
loans from
 
Swiss mortgage institutions
 
and in connection
 
with the issuance
 
of covered bonds.
 
UBS AG generally enters
into repurchase and securities lending
 
arrangements under standard market agreements. For securities lending,
 
the cash
received as
 
collateral may
 
be more
 
or less
 
than the
 
fair value
 
of the
 
securities loaned,
 
depending on
 
the nature
 
of the
transaction.
 
For repurchase agreements, the fair
 
value of the
 
collateral sold under an
 
agreement to repurchase is
 
generally
in excess
 
of
 
the cash
 
borrowed.
 
Pledged
 
mortgage loans
 
serve as
 
collateral
 
for existing
 
liabilities against
 
Swiss
 
central
mortgage institutions
 
and for
 
existing covered
 
bond
 
issuances of
 
USD
8,962
m as of
 
31 December
 
2022
 
(31 December
2021: USD
10,843
m).
Other restricted financial assets
 
include assets protected under client
 
asset segregation rules, assets held
 
under unit-linked
investment contracts to back related liabilities to the policy holders and
 
assets held in certain jurisdictions to comply with
explicit minimum local asset maintenance requirements. The carrying amount of
 
the liabilities associated with
 
these other
restricted financial
 
assets
 
is generally
 
equal
 
to the
 
carrying
 
amount
 
of the
 
assets, with
 
the exception
 
of assets
 
held
 
to
comply with local asset maintenance requirements,
 
for which the associated liabilities
 
are greater.
 
 
Restricted financial assets
 
USD m
31.12.22
31.12.21
Restricted
financial assets
of which: assets
pledged as
collateral that
may be sold or
repledged by
counterparties
Restricted
financial assets
of which: assets
pledged as
collateral that
may be sold or
repledged by
counterparties
Financial assets pledged as collateral
Financial assets at fair value held for trading
57,435
36,742
63,834
43,397
Loans and advances to customers
1
15,195
18,160
Financial assets at fair value not held for trading
1,509
1,220
961
961
Debt securities classified as Other financial assets measured
 
at amortized cost
3,432
2,685
2,234
1,870
Total financial assets pledged
 
as collateral
77,571
85,188
Other restricted financial assets
Loans and advances to banks
3,689
3,408
Financial assets at fair value held for trading
162
392
Cash collateral receivables on derivative
 
instruments
5,155
4,747
Loans and advances to customers
1,127
1,237
Financial assets at fair value not held for trading
14,090
22,328
Financial assets measured at fair value through
 
other comprehensive income
1,842
894
Other
859
97
Total other restricted
 
financial assets
 
26,924
33,104
Total financial assets pledged
 
and other restricted financial assets
2
104,495
118,292
1 Mainly related to mortgage
 
loans that serve as collateral
 
for existing liabilities toward
 
Swiss central mortgage
 
institutions and for existing
 
covered bond issuances.
 
Of these pledged
 
mortgage loans, approximately
USD
3.1
bn as of
 
31 December 2022
 
(31 December
 
2021: approximately
 
USD
2.7
bn) could be
 
withdrawn
 
or used for
 
future liabilities
 
or covered bond
 
issuances without
 
breaching existing
 
collateral
 
requirements.
 
2 Does not include assets placed
 
with central banks related
 
to undrawn credit lines
 
and for payment, clearing
 
and settlement purposes
 
(31 December 2022:
 
USD
5.9
bn; 31 December 2021:
 
USD
4.4
bn).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
450
 
 
Note 22
 
Restricted and transferred financial
 
assets (continued)
In
 
addition
 
to
 
restrictions
 
on
 
financial
 
assets,
 
UBS
 
AG
 
and
 
its
 
subsidiaries
 
are,
 
in
 
certain cases,
 
subject
 
to
 
regulatory
requirements that
 
affect the transfer
 
of dividends and capital
 
within UBS AG,
 
as well as
 
intercompany lending. Supervisory
authorities also may require entities
 
to measure capital and leverage
 
ratios on a stressed basis, such
 
as the Federal Reserve
Board’s Comprehensive Capita
 
l
 
Analysis and Review (CCAR)
 
process, which may limit the relevant
 
subsidiaries’ ability to
make distributions of capital based on
 
the results of those tests.
Supervisory
 
authorities
 
generally
 
have
 
discretion
 
to
 
impose
 
higher
 
requirements
 
or
 
to
 
otherwise
 
limit
 
the
 
activities
 
of
subsidiaries.
 
Non-regulated subsidiaries
 
are generally not subject to such
 
requirements and transfer
 
restrictions. However,
 
restrictions
can
 
also
 
be
 
the
 
result
 
of
 
different
 
legal,
 
regulatory,
 
contractual,
 
entity-
 
or
 
country-specific
 
arrangements
 
and
 
/
 
or
requirements.
›
 
Refer to the “Financial
 
and regulatory key figures
 
for our significant
 
regulated subsidiaries
 
and sub-groups” section
 
of this report
for financial information
 
about significant
 
regulated subsidiaries
 
of UBS AG
 
b) Transferred financial assets that are
 
not derecognized in their
 
entirety
The
 
table
 
below
 
presents
 
information
 
for
 
financial
 
assets
 
that
 
have
 
been
 
transferred
 
but
 
are
 
subject
 
to
 
continued
recognition in full, as well as recognized
 
liabilities associated with those transferred
 
assets.
 
Transferred
 
financial assets subject to continued recognition
 
in full
 
USD m
31.12.22
31.12.21
Carrying amount
of transferred
assets
Carrying amount of
 
associated liabilities
 
recognized
 
on balance sheet
Carrying amount
of transferred
assets
Carrying amount of
 
associated liabilities
 
recognized
 
on balance sheet
Financial assets at fair value held for trading that
 
may be sold or repledged by counterparties
36,742
16,470
43,397
17,687
relating to securities lending and repurchase agreements in exchange
 
for cash received
16,756
16,470
17,970
17,687
relating to securities lending agreements in exchange for
 
securities received
18,908
24,146
relating to other financial asset transfers
1,078
1,281
Financial assets at fair value not held for trading
 
that may be sold or repledged
 
by
counterparties
1,220
1,050
961
898
Debt securities classified as Other financial assets measured
 
at amortized cost that may be
sold or repledged by counterparties
2,685
2,302
1,870
1,725
Total financial assets transferred
40,647
19,822
46,227
20,311
 
 
Transactions
 
in which financial assets
 
are transferred, but continue to be
 
recognized in their entirety
 
on UBS AG’s balance
sheet include
 
securities lending
 
and
 
repurchase
 
agreements,
 
as well
 
as other
 
financial asset
 
transfers. Repurchase
 
and
securities lending arrangements
 
are, for the
 
most part,
 
conducted under standard market
 
agreements and are undertaken
with counterparties subject to UBS
 
AG’s normal credit risk control
 
processes.
 
›
 
Refer to Note 1a
 
item 2e for more information
 
about repurchase and securities
 
lending agreements
As of 31 December 2022,
 
approximately
45
% of the transferred financial assets were
 
assets held for trading transferred
in
 
exchange
 
for
 
cash,
 
in
 
which
 
case
 
the
 
associated
 
recognized
liability
 
represents
 
the
 
amount
 
to
 
be
 
repaid
 
to
counterparties. For securities lending and repurchase agreements, a haircut of
 
between
0
% and
15
% is generally
 
applied
to the transferred
 
assets, which
 
results in
 
associated liabilities
 
having
 
a carrying
 
amount
 
below the
 
carrying amount
 
of
the transferred
 
assets. The
 
counterparties to
 
the associated
 
liabilities presented
 
in the table
 
above have
 
full recourse
 
to
UBS AG.
In securities lending
 
arrangements entered
 
into in
 
exchange for
 
the receipt
 
of other
 
securities as
 
collateral, neither
 
the
securities received nor the obligation to return
 
them are recognized on UBS AG’s balance sheet, as the risks and rewards
of
 
ownership
 
are
 
not
 
transferred
 
to
 
UBS
 
AG.
 
In
 
cases
 
where
 
such
 
financial
 
assets
 
received
 
are
 
subsequently
 
sold
 
or
repledged in another transaction
 
,
 
this is not considered to be a transfer of financial
 
assets.
Other financial asset transfers primarily include securities transferred to collateralize derivative transactions, for which the
carrying amount of
 
associated liabilities is
 
not provided in
 
the table
 
above,
 
because those replacement
 
values are
 
managed
on
 
a portfolio
 
basis across
 
counterparties and
 
product types,
 
and therefore
 
there is
 
no direct
 
relationship
 
between
 
the
specific collateral pledged and
 
the associated liability.
Transferred financial assets that are not
 
subject to derecognition
 
in full but remain on the balance
 
sheet to the extent of
UBS AG’s continuing
 
involvement were not material as of 31 December 2022
 
and as of 31 December 2021.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
451
 
 
Note 22
 
Restricted and transferred financial
 
assets (continued)
 
c) Transferred financial assets that
 
are derecognized in their entirety
 
with continuing involvement
Continuing involvement
 
in a transferred
 
and fully derecognized
 
financial asset may result
 
from contractual provisions
 
in
the particular transfer
 
agreement or
 
from a separate
 
agreement, with
 
the counterparty
 
or a
 
third party,
 
entered into
 
in
connection with the transfer.
 
The fair
 
value and
 
carrying amount
 
of UBS
 
AG’s continuing
 
involvement from
 
transferred positions
 
as of
 
31 December
2022
 
and 31
 
December 2021
 
was not
 
material.
 
Life-to-date losses
 
reported
 
in prior
 
periods
 
primarily relate
 
to legacy
positions in securitization vehicles that have been
 
fully marked down,
 
with no remaining exposure to
 
loss.
 
d) Off-balance sheet assets received
The table below presents assets received from third
 
parties that can be sold or repledged and that are not recognized on
the balance sheet, but that are held
 
as collateral, including
 
amounts that have been sold or repledged.
 
Off-balance sheet assets received
USD m
31.12.22
31.12.21
Fair value of assets received that can
 
be sold or repledged
434,023
497,828
received as collateral under reverse repurchase,
 
securities borrowing
 
and lending arrangements, derivative and
 
other transactions
 
1
418,847
483,426
received in unsecured borrowings
15,175
14,402
Thereof sold or repledged
 
2
331,805
367,440
in connection with financing activities
288,752
319,176
to satisfy commitments under short sale transactions
29,515
31,688
in connection with derivative and other
 
transactions
 
1
13,538
16,575
1 Includes
 
securities received
 
as initial
 
margin from
 
its clients
 
that UBS
 
AG is
 
required to
 
remit to
 
central counterparties,
 
brokers
 
and deposit
 
banks through
 
its exchange
 
-traded derivative
 
clearing and
 
execution
services.
 
2 Does not include
 
off-balance sheet
 
securities (31 December
 
2022: USD
9.9
bn; 31 December 2021:
 
USD
12.7
bn) placed with central
 
banks related to undrawn
 
credit lines and for
 
payment, clearing and
settlement purposes for which there
 
are no associated liabilities
 
or contingent liabilities.
 
 
 
Note 23
 
Maturity analysis of assets and liabilities
 
a) Maturity analysis of carrying
 
amounts of assets and liabilities
The table
 
below
 
provides
 
an analysis
 
of carrying
 
amounts
 
of balance
 
sheet assets
 
and
 
liabilities, as
 
well as
 
off-balance
sheet
 
exposures
 
by
 
residual
 
contractual
 
maturity
 
as
 
of
 
the
 
reporting
 
date.
 
The
 
residual
 
contractual maturity
 
of
 
assets
includes the
 
effect of callable features.
 
The residual
 
contractual maturity of liabilities
 
and off-balance
 
sheet exposures
 
is
based on the earliest date on
 
which a third party could require
 
UBS AG to pay.
Derivative financial instruments
 
and financial assets
 
and liabilities at
 
fair value held
 
for trading are
 
presented in
 
the
Due
within 1 month
 
column;
 
however, the respective contractual maturities may
 
extend over significantly longer
 
periods.
Assets held to hedge unit-linked investment contracts (presented within
Financial assets at fair value not held for
 
trading
)
are
 
presented
 
in
 
the
Due
 
within 1
 
month
 
column,
 
consistent
 
with
 
the
 
maturity assigned
 
to
 
the related
 
amounts
 
due
under unit-linked investment contracts (presented
 
within
Other financial liabilities designated
 
at fair value
).
Other financial assets and liabilities with no contractual maturity, such
 
as equity securities, are presented in the
Perpetual
/ Not applicable
 
column.
 
Undated or perpetual instruments are classified based on the contractual notice period
 
that the
counterparty
 
of
 
the
 
instrument
 
is
 
entitled
 
to
 
give.
 
Where
 
there
 
is no
 
contractual notice
 
period,
 
undated
 
or
 
perpetual
contracts are presented in
 
the
Perpetual / Not applicable
 
column.
Non-financial assets
 
and liabilities
 
with no
 
contractual maturity
 
are generally
 
included
 
in the
Perpetual /
 
Not applicable
 
column.
Loan commitments are classified based
 
on the earliest date they can be drawn
 
down.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
452
 
 
Note 23
 
Maturity analysis of assets and liabilities
 
(continued)
31.12.22
USD bn
Due within
 
1 month
Due between
 
1 and 3
months
Due between
 
3 and 12
months
Due between
 
1 and 2 years
Due between
 
2 and 5 years
Due over
 
5 years
Perpetual /
Not
applicable
Total
Assets
Total financial assets measured at amortized
 
cost
1
425.2
28.7
34.5
78.8
70.5
92.8
730.4
Loans and advances to customers
141.9
16.3
28.3
74.9
55.6
73.0
390.0
Total financial assets measured at fair value through
 
profit or
loss
300.4
10.0
7.8
3.6
9.9
2.0
1.5
335.1
Financial assets at fair value not held for trading
24.6
10.0
7.8
3.6
9.9
2.0
1.5
59.4
Financial assets measured at fair value through
 
other
comprehensive income
1
0.3
0.9
0.9
0.1
0.0
0.0
2.2
Total non-financial assets
7.1
0.2
2.0
0.4
28.0
37.7
Total assets
732.9
39.5
43.4
82.4
82.4
95.1
29.6
1,105.4
Liabilities
Total financial liabilities measured at amortized
 
cost
524.3
40.2
49.6
20.7
35.2
23.5
11.8
705.4
Customer deposits
464.5
28.5
23.8
7.7
2.3
0.3
527.2
Funding from UBS Group AG
2.0
4.8
21.2
16.3
11.8
56.1
Debt issued measured at amortized cost
4.6
8.8
23.3
7.2
10.0
5.7
59.5
of which: non-subordinated fixed rate debt
3.1
4.0
13.2
2.8
7.8
5.7
36.6
of which: non-subordinated floating rate debt
1.5
4.8
10.1
1.9
1.6
19.9
of which: subordinated fixed-rate debt
2.4
0.5
3.0
Total financial liabilities measured at fair value
 
through
profit or loss
2
265.9
13.8
16.3
19.6
7.3
10.5
333.4
Debt issued designated at fair value
9.3
12.3
15.9
19.3
6.9
8.2
71.8
of which: non-subordinated fixed rate debt
0.5
2.3
5.6
3.6
2.0
1.6
15.6
of which: non-subordinated floating rate debt
8.8
10.0
10.3
15.7
4.9
6.6
56.2
Total non-financial liabilities
6.7
2.6
0.5
9.7
Total liabilities
 
796.9
56.5
65.9
40.4
42.5
34.0
12.3
1,048.5
Guarantees, loan commitments
 
and forward starting transactions
3
Loan commitments
39.3
0.3
0.4
0.0
40.0
Guarantees
22.4
22.4
Forward starting transactions,
 
reverse repurchase and
securities borrowing agreements
3.8
3.8
Total
65.4
0.3
0.4
0.0
66.2
 
31.12.21
USD bn
Due within
1 month
Due between
1 and 3
months
Due between
3 and 12
months
Due between
1 and 2 years
Due between
2 and 5 years
Due over
5 years
Perpetual /
Not
applicable
Total
Assets
Total financial assets measured at amortized
 
cost
454.3
45.6
43.2
53.7
64.2
77.6
738.6
Loans and advances to customers
157.8
28.5
37.3
49.7
55.1
70.3
 
398.7
Total financial assets measured at fair value through
 
profit or
loss
300.7
5.8
8.1
5.2
7.1
2.5
1.4
330.7
Financial assets at fair value not held for trading
29.7
5.8
8.1
5.2
7.1
2.5
1.4
59.6
Financial assets measured at fair value through
 
other
comprehensive income
0.1
0.4
0.7
0.1
0.4
7.1
8.8
Total non-financial assets
7.3
0.5
0.1
0.2
1.4
0.3
28.2
38.0
Total assets
 
762.3
52.3
52.1
59.3
73.2
87.5
29.5
1,116.1
Liabilities
Total financial liabilities measured at amortized
 
cost
583.3
21.5
48.4
17.3
36.0
24.7
13.7
744.8
Customer deposits
531.0
6.5
3.2
1.9
1.8
0.3
544.8
Funding from UBS Group AG
0.0
2.8
1.4
6.3
17.0
16.1
13.7
57.3
Debt issued measured at amortized cost
3.7
9.3
38.4
8.7
15.5
6.9
82.4
of which: non-subordinated fixed rate debt
3.7
8.4
27.4
6.6
9.0
6.9
62.0
of which: non-subordinated floating rate debt
0.0
0.8
9.0
2.1
3.3
15.2
of which: subordinated fixed-rate debt
2.0
3.1
5.2
Total financial liabilities measured at fair value
 
through
profit or loss
2
238.1
12.0
14.7
18.8
5.6
11.8
300.9
Debt issued designated at fair value
12.5
11.6
14.1
18.6
5.4
9.2
71.5
of which: non-subordinated fixed rate debt
0.8
1.2
2.9
1.2
1.3
2.4
9.8
of which: non-subordinated floating rate debt
11.7
10.3
11.2
17.4
4.2
6.8
61.6
Total non-financial liabilities
8.7
2.6
0.7
12.0
Total liabilities
830.0
36.0
63.0
36.2
41.6
36.5
14.4
1,057.7
Guarantees, loan commitments
 
and forward starting transactions
3
Loan commitments
38.3
0.5
0.7
0.0
39.5
Guarantees
21.2
21.2
Forward starting transactions,
 
reverse repurchase and
securities borrowing agreements
1.4
1.4
Total
60.9
0.5
0.7
0.0
62.1
1 Effective 1 April 2022, a portfolio of
 
assets previously classified as Financial
 
assets measured at fair value
 
through other
 
comprehensive income was
 
reclassified to Other financial
 
assets measured at amortized cost.
Refer to Note 1b for
 
more information.
 
2 As of 31 December
 
2022 and 31
 
December 2021,
 
the contractual redemption
 
amount at maturity
 
of debt issued
 
designated at fair
 
value through profit
 
or loss and other
financial liabilities
 
measured at fair
 
value through
 
profit or
 
loss was
 
not materially
 
different from
 
the carrying
 
amount.
 
3 The
 
notional amounts
 
associated
 
with derivative
 
loan commitments,
 
as well
 
as forward
starting repurchase and reverse repurchase
 
agreements, measured
 
at fair value through
 
profit or loss are presented
 
together with
 
notional amounts related to derivative
 
instruments and have
 
been excluded from the
table above. Refer to Note 10
 
for more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
453
 
 
Note 23
 
Maturity analysis of assets and liabilities
 
(continued)
 
b) Maturity analysis of financial
 
liabilities on an undiscounted basis
The table below
 
provides an
 
analysis of financial
 
liabilities on
 
an undiscounted
 
basis, including
 
all cash flows
 
relating to
principal and
 
future interest
 
payments. The
 
residual
 
contractual maturities
 
for non
 
-derivative and
 
non-trading financial
liabilities are
 
based
 
on
 
the earliest
 
date on
 
which UBS
 
could be
 
contractually required
 
to pay.
 
Derivative positions
 
and
trading liabilities,
 
predominantly
 
made up
 
of short
 
sale transactions,
 
are presented
 
in the
Due within
 
1 month
 
column
,
 
as this provides a conservative reflection
 
of the nature of these trading
 
activities. The residual contractual maturities may
extend over significantly longer periods.
 
 
31.12.22
USD bn
Due within
 
1 month
Due between
 
1 and 3
months
Due between
 
3 and 12
months
Due between
 
1 and 2 years
Due between
 
2 and 5 years
Due over
 
5 years
Perpetual /
Not
applicable
Total
Financial liabilities recognized
 
on balance sheet
1
Amounts due to banks
6.3
2.6
1.9
0.3
0.6
0.0
11.7
Payables from securities financing
 
transactions
3.3
0.3
0.4
0.3
0.0
4.4
Cash collateral payables on derivative instruments
36.4
36.4
Customer deposits
464.6
28.8
24.5
8.2
2.6
0.3
529.0
Funding from UBS Group AG
2
2.2
0.6
1.2
6.8
27.6
21.2
12.7
72.3
Debt issued measured at amortized cost
4.6
8.9
23.7
7.8
10.8
6.9
62.8
Other financial liabilities measured at amortized cost
5.6
0.1
0.4
0.5
1.2
1.3
9.2
 
of which: lease liabilities
0.1
0.1
0.4
0.5
1.2
1.3
3.7
Total financial liabilities measured
 
at amortized cost
3, 5
523.1
41.2
52.2
24.0
42.8
29.8
12.7
725.8
Financial liabilities at fair value held for trading
3, 4
29.5
29.5
Derivative financial instruments
3, 5
154.9
154.9
Brokerage payables designated at
 
fair value
45.1
45.1
Debt issued designated at fair value
6
9.4
12.4
16.0
19.7
7.1
12.3
76.8
Other financial liabilities designated at fair value
27.1
1.4
0.4
0.4
0.5
5.0
34.8
Total financial liabilities measured
 
at fair value through
profit or loss
266.0
13.8
16.4
20.0
7.5
17.3
341.1
Total
789.2
55.0
68.6
44.0
50.3
47.1
12.7
1,066.9
Guarantees, commitments
 
and forward starting transactions
Loan commitments
7
39.3
0.3
0.4
0.0
40.0
Guarantees
22.4
22.4
Forward starting transactions,
 
reverse repurchase and
securities borrowing agreements
7
3.8
3.8
Total
65.4
0.3
0.4
0.0
66.2
 
31.12.21
USD bn
Due within
 
1 month
Due between
 
1 and 3
months
Due between
 
3 and 12
months
Due between
 
1 and 2 years
Due between
 
2 and 5 years
Due over
 
5 years
Perpetual /
Not
applicable
Total
Financial liabilities recognized
 
on balance sheet
1
Amounts due to banks
 
6.7
2.4
3.5
0.0
0.5
13.1
Payables from securities financing
 
transactions
3.8
0.3
1.6
0.0
 
5.7
Cash collateral payables on derivative instruments
31.8
 
 
 
 
31.8
Customer deposits
531.0
6.6
3.3
2.0
1.9
0.4
545.1
Funding from UBS Group AG
2
0.2
3.3
2.3
7.8
21.1
16.9
13.7
65.3
Debt issued measured at amortized cost
3.8
9.4
38.8
9.0
16.1
7.6
84.7
Other financial liabilities measured at amortized cost
5.3
0.1
0.4
0.6
1.2
1.5
 
9.1
of which: lease liabilities
0.1
0.1
0.4
0.6
1.2
1.5
3.9
Total financial liabilities measured
 
at amortized cost
582.6
22.1
49.9
19.4
40.8
26.4
13.7
754.8
Financial liabilities at fair value held for trading
3,4
31.7
 
 
 
 
 
 
31.7
Derivative financial instruments
3,5
121.3
 
 
 
 
 
121.3
Brokerage payables designated at
 
fair value
44.0
 
 
 
 
 
 
44.0
Debt issued designated at fair value
6
13.8
11.5
13.5
18.8
5.6
12.5
75.9
Other financial liabilities designated at fair value
28.1
0.4
0.5
0.2
0.2
7.1
 
36.5
Total financial liabilities measured
 
at fair value through
profit or loss
239.0
11.9
14.0
19.0
5.8
19.6
309.4
Total
 
821.6
34.0
63.9
38.4
46.6
45.9
13.7
1,064.2
Guarantees, commitments
 
and forward starting transactions
Loan commitments
7
38.3
0.5
0.7
0.0
 
 
 
39.5
Guarantees
21.2
 
 
 
 
 
21.2
Forward starting transactions,
 
reverse repurchase
and securities borrowing agreements
7
1.4
 
 
 
 
 
 
1.4
Total
 
60.9
0.5
0.7
0.0
62.1
1 Except for financial
 
liabilities at fair
 
value held for
 
trading and derivative
 
financial instruments
 
(see footnote 3),
 
the amounts
 
presented generally represent
 
undiscounted cash
 
flows of future interest
 
and principal
payments.
 
2 The time-
 
bucket Perpetual
 
/ Not applicable includes
 
perpetual loss-absorbing
 
additional tier 1 capital
 
instruments.
 
3 Carrying amount
 
is fair value. Management
 
believes that this best
 
represents the
cash flows that would have to be paid if these positions had to be settled or closed out.
 
4 Contractual maturities of financial
 
liabilities at fair value held for trading are: USD
27.8
bn due within 1 month (31 December
2021: USD
30.8
bn), USD
1.7
bn due between
 
1 month and
 
1 year (31
 
December 2021:
 
USD
0.9
bn) and USD
0
bn due between
 
1 and
 
5 years (31
 
December 2021:
 
USD
0
bn).
 
5 Includes
 
USD
46
m (31 December
2021: USD
34
m) related
 
to fair
 
values
 
of derivative
 
loan commitments
 
and forward
 
starting reverse
 
repurchase
 
agreements classified
 
as derivatives,
 
presented within
 
“Due within
 
1 month.”
 
The full
 
contractual
committed amount
 
of USD
34.4
bn (31 December
 
2021: USD
36.0
bn) is
 
presented in
 
Note 10
 
under notional
 
amounts.
 
6 Future
 
interest
 
payments on
 
variable-rate
 
liabilities are
 
determined by
 
reference to
 
the
applicable interest rate prevailing
 
as of the reporting date. Future principal
 
payments that are variable
 
are determined by reference to the conditions
 
existing at the relevant reporting
 
date.
 
7 Excludes derivative loan
commitments and forward starting
 
reverse repurchase agreements
 
measured at fair value (see
 
footnote 5).
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
454
 
 
Note 24
 
Interest rate benchmark reform
Background
A
 
market-wide
 
reform
 
of
 
major
 
interest
 
rate
 
benchmarks
 
is
 
being
 
undertaken
 
globally.
 
The
 
publication
 
of
 
London
Interbank Offered Rates (LIBORs) ceased immediately after 31 December 2021
 
for all non-US dollar LIBORs, as well as
 
for
one-week
 
and
 
two-month
 
USD
 
LIBOR.
 
Publication
 
of
 
the
 
remaining
 
USD
 
LIBOR
 
tenors
 
will
 
cease
 
immediately
 
after
30 June 2023.
In December 2022
 
,
 
the FCA consulted
 
on the
 
continued publication
 
of one-,
 
three-
 
and six-month
 
USD LIBOR
 
under a
synthetic format
 
until the
 
end of
 
September 2024
 
to ensure
 
an orderly
 
winding
 
down of
 
remaining contracts
 
that are
not
 
governed
 
by
 
US
 
law.
 
In
 
addition,
 
in
 
December
 
2022,
 
the
 
US
 
Federal
 
Reserve
 
Board
 
adopted
 
the
 
final
 
rules
 
that
implement the Adjustable Interest Rate (LIBOR) Act, which
 
is substantially based on, and supersedes, the New York State
LIBOR legislation.
 
The Adjustable
 
Interest Rate (LIBOR)
 
Act provides
 
a legislative solution
 
for USD
 
LIBOR legacy products
governed by
 
any US state
 
law should
 
such products
 
fail to transition
 
prior to
 
the USD
 
LIBOR cessation
 
date of 30
 
June
2023.
A framework
 
has been
 
established
 
within UBS
 
AG to
 
address the
 
transition of
 
contracts that
 
do not
 
contain adequate
fallback provisions and to cease entering
 
into new LIBOR contracts, with the exception
 
of specific circumstances that are
allowed by regulatory provisions
 
for USD LIBOR.
Governance over the transition
 
to alternative benchmark rates
Throughout
 
the transition
 
process UBS
 
AG has
 
been maintain
 
ing a
 
global cross
 
-divisional, cross-functional
 
governance
structure and change program to address the scale and complexity of the transition. This global program is sponsored by
the Group CFO and led by
 
senior representatives from the business divisions and UBS
 
AG’s control and support functions.
The program
 
includes governance
 
and execution structures
 
within each
 
business division,
 
together with
 
cross-divisional
teams from each control and support function. During 2022, progress was overseen centrally via a monthly Group LIBOR
Transition
 
Forum with an increased US
 
regional focus.
Risks
A core part of UBS AG’s
 
change program is
 
the identification, management and
 
monitoring of the risks associated
 
with
IBOR reform and transition.
 
These risks include, but are not
 
limited to, the following:
–
 
economic risks
 
to UBS
 
AG and
 
its clients,
 
through
 
the repricing
 
of existing
 
contracts, reduced
 
transparency and
 
/ or
liquidity of pricing information,
 
market uncertainty or disruption;
–
 
accounting risks,
 
where the transition affects
 
the accounting treatment,
 
including hedge accounting and consequential
income statement volatility;
–
 
valuation risks
 
arising from
 
the variation
 
between
 
benchmarks that
 
will cease
 
and
 
ARRs, affecting
 
the risk
 
profile of
financial instruments;
–
 
operational
 
risks arising from
 
changes to UBS
 
AG’s front-to-back processes and
 
systems to accommodate the
 
transition
(e.g., data sourcing and processing
 
and bulk migration of contracts); and
–
 
legal
 
and
 
conduct
 
risks
 
relating
 
to
 
UBS
 
AG’s
 
engagement
 
with
 
clients
 
and
 
market
 
counterparties
 
around
 
new
benchmark products and
 
amendments required for existing contracts referencing
 
benchmarks that will cease.
Overall, the effort required to transition is
 
affected by multiple factors, including whether negotiations need to take place
with multiple stakeholders (as is the
 
case for syndicated loans or certain listed securities),
 
market readiness and a client’s
technical readiness to handle ARR market conventions.
 
UBS AG remains confident that it has the transparency, oversight
and operational preparedness to progress with the IBOR transition consistent with
 
market timelines, given the significant
progress
 
made as
 
of 31
 
December 2022
 
.
 
UBS
 
AG did
 
not have
 
and
 
does
 
not expect
 
changes
 
to its
 
risk management
approach and strategy as a result of interest
 
rate benchmark reform.
Transition progress
 
UBS
 
AG’s
 
significant
 
non-derivative
 
exposures
 
subject
 
to
 
IBOR
 
reform
 
primarily
 
related
 
to
 
brokerage
 
receivable
 
and
payable balances,
 
corporate and
 
private loans,
 
and
 
mortgages,
 
linked to
 
CHF and
 
USD
 
LIBORs. During
 
2020, UBS
 
AG
transitioned most of its CHF LIBOR-linked deposits to the Swiss Average Overnight Rate (SARON
 
). In that same year, UBS
AG
 
launched
 
SARON-based
 
mortgages
 
and
 
corporate
 
loans
 
based
 
on
 
all major
 
ARRs
 
in
 
the
 
Swiss
 
market, as
 
well
 
as
Secure Overnight Financing R
 
ate (SOFR)-based mortgages in the US
 
market.
 
Throughout 2021, UBS AG transitioned
 
substantially all of its private and corporate loans linked
 
to non-USD IBORs, with
the remaining
 
CHF LIBOR-linked
 
contracts transitioning
 
on
 
their first
 
roll date
 
in 2022.
 
In addition,
 
as of
 
31 December
2021
 
UBS
 
AG
 
had
 
completed
 
the
 
transition
 
of
 
IBOR-linked
 
non-derivative
 
financial
 
assets
 
and
 
liabilities
 
related
 
to
brokerage accounts, except for balances
 
originated in the US,
 
which transitioned to SOFR in January 2022.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
455
 
 
Note 24
 
Interest rate benchmark reform (continued)
In
 
2022,
 
UBS
 
AG focused
 
its efforts
 
on
 
the
 
transition
 
of
 
USD
 
LIBOR
 
and
 
the remaining
 
non-USD
 
LIBOR
 
contracts, by
leveraging industry solutions
 
(e.g., the use
 
of fallback provisions),
 
through third-party actions
 
(those by clearing
 
houses,
agents,
 
etc.)
 
and
 
bi-lateral
 
contract
 
negotiations.
 
As
 
of
 
31 December
 
2022,
 
the
 
transition
 
of
 
non-USD
 
IBORs
 
is
substantially complete.
In addition,
 
in 2022,
 
substantially all US
 
securities-based
 
lending has
 
been transitioned
 
to SOFR and
 
UBS AG
 
continues
to make
 
good
 
progress
 
on the
 
transition of
 
the remaining
 
USD LIBOR
 
non-derivative
 
assets and
 
liabilities, with
 
the US
mortgage portfolio of USD
9
bn (31 December 2021: USD
11
bn) the largest remaining exposure
 
left to transition.
In August
 
2022,
 
to facilitate
 
the transition
 
of derivatives
 
linked to
 
the USD
 
LIBOR Swap
 
Rate, UBS
 
AG adhered
 
to the
June 2022
 
Benchmark Module
 
of the
 
ISDA 2021
 
Fallbacks Protocol
 
on
 
the USD
 
LIBOR Swap
 
Rate.
 
UBS
 
AG will
 
begin
gradually transitioning USD
 
LIBOR derivatives not transacted
 
with clearing houses
 
or exchanges from the first quarter
 
of
2023. The transition of USD
 
LIBOR-cleared derivatives is planned to commence
 
in the second quarter of 2023.
As of
 
31 December 2022,
 
UBS AG had
 
approximately USD
3
bn equivalent
 
of yen- and
 
US dollar-denominated
 
funding
from UBS
 
Group AG
 
that, per
 
current contractual
 
terms, if
 
not called
 
on
 
their respective
 
call dates,
 
would reset
 
based
directly on
 
JPY LIBOR and
 
USD LIBOR. In
 
addition, certain US
 
dollar-denominated contracts providing
 
funding from
 
UBS
Group AG reference
 
rates indirectly
 
derived from IBORs, if
 
they are
 
not called on
 
their respective call
 
dates. These contracts
have robust IBOR fallback language and the confirmation of interest rate calculation mechanics will be communicated as
market standards formalize and in advance of
 
any rate resets. These debt instruments
 
have not been included in the
 
table
below, given their current fixed-rate
 
coupon.
 
Financial instruments yet to transition
 
to alternative benchmarks
The amounts included
 
in the
 
table below relate
 
to financial instrument contracts
 
across UBS AG’s business divisions
 
where
UBS AG has material exposures
 
subject to IBOR reform that have not
 
yet transitioned to ARRs,
 
and that:
–
 
contractually reference an interest rate benchmark
 
that will transition to an
 
alternative benchmark; and
–
 
have a contractual maturity date (including
 
open-ended contracts) after the agreed
 
cessation dates.
 
Contracts where penalty terms reference IBORs, or where exposure to
 
an IBOR is not
 
the primary purpose of the
 
contract,
have not been included,
 
as these contracts do not have a material impact on
 
the transition process.
 
In line with information provided to management and external
 
parties monitoring UBS AG’s transition progress, the table
below
 
includes
 
the
 
following
 
financial
 
metrics
 
for
 
instruments
 
external
 
to
 
UBS
 
AG
 
that
 
are
 
subject
 
to
 
interest
 
rate
benchmark reform:
–
 
gross carrying value / exposure for non
 
-derivative financial instruments; and
 
–
 
total trade count for derivative financial
 
instruments.
The
 
exposures
 
included
 
in the
 
table
 
below
 
reflect the
 
maximum
 
IBOR
 
exposure,
 
without
 
regard
 
for
 
early termination
rights, with the actual exposure
 
being dependent upon client preferences and
 
investment decisions.
 
As of 31 December 2022,
 
UBS AG had
 
made significant progress in
 
transitioning LIBOR exposures to
 
ARRs. The remaining
USD
 
LIBOR-linked
 
exposures
 
included
 
in
 
the
 
table
 
below
 
primarily
 
relate
 
to
 
derivatives
 
and
 
US
 
mortgages,
 
with
 
the
transition planned to be
 
completed by 30 June 2023.
 
 
LIBOR benchmark rates
31.12.22
1
31.12.21
Measure
USD
USD
CHF
GBP
EUR
2
JPY
Carrying value of non
 
-derivative financial instruments
Total non-derivative financial assets
 
USD m
14,269
3
65,234
3
21,616
4
45
5
1
0
Total non-derivative financial liabilities
 
USD m
1,138
5
1,985
5
27
5
3
5
5
6
0
Trade count
 
of derivative financial instruments
Total derivative financial instruments
Trade count
32,006
7
40,500
7,8
829
9
183
9
3,744
9
184
9
Off-balance sheet exposures
Total irrevocable loan commitments
USD m
4,606
10
11,863
11
0
0
0
0
1 As of 31 December
 
2022, non-USD
 
balances and trade
 
counts are minimal.
 
2 Relates primarily
 
to EUR LIBOR
 
positions.
 
3 Includes USD
1
bn (31 December 2021:
 
USD
1
bn) of loans
 
related to revolving
 
multi-
currency credit lines, where IBOR transition efforts are complete,
 
except for USD LIBOR. Balances as of 31 December 2021
 
also include USD
37
bn USD LIBOR securities-based lending and USD
5
bn brokerage accounts,
which for the most part transitioned
 
to SOFR in January
 
2022. The remaining
 
balances as of 31
 
December 2022 and 31
 
December 2021
 
primarily relate to
 
US mortgages and corporate
 
lending.
 
4 Relates primarily
to CHF LIBOR
 
mortgages, which
 
have automatically
 
transitioned to SARON
 
on their first
 
roll date in
 
2022.
 
5 Relates to
 
floating-rate
 
notes that per
 
their contractual
 
terms can
 
reset to rates
 
linked to
 
LIBOR, with
transition dependent
 
upon the actions
 
of respective issuers.
 
6 Relates to
 
contracts that
 
transitioned in
 
January 2022.
 
7 Includes approximately
2,000
 
(31 December 2021:
1,000
) contracts having a
 
contractual
maturity after 30 June 2023, with the
 
last USD LIBOR fixing occurring
 
before 30 June 2023. No further contractual
 
fixing is required for these contracts.
 
8 Includes approximately
5,000
 
cross-currency derivatives,
 
of
which approximately
500
 
have both a non-USD LIBOR
 
leg and a USD LIBOR
 
leg, where the
 
non-USD leg transitioned in
 
January 2022 before
 
the next fixing date.
 
The remainder represents
 
cross-currency swaps
 
with
an ARR leg and a USD IBOR leg.
 
9 Includes predominantly bilateral
 
derivatives, which transitioned
 
in January 2022, and an insignificant amount of cleared
 
derivatives, where the respective clearing
 
houses’ organized
transition happened in
 
January 2022.
 
10 Includes approximately
 
USD
3
bn of loan commitments
 
that can be drawn
 
in different currencies,
 
however only USD
 
LIBOR transition
 
efforts remain open,
 
with completion
scheduled for 2023.
 
11 Includes loan commitments
 
that can be drawn in
 
different currencies at the
 
client‘s discretion, of which
 
approximately USD
3
bn have only USD LIBOR
 
exposure remaining and approximately
USD
2
bn retain a non-USD
 
LIBOR interest rate,
 
with transition dependent
 
upon the actions of other
 
parties. The remainder
 
represents loan commitments
 
that can be drawn in
 
US dollars only and will transition
 
on or
before 30 June 2023.
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
456
 
 
Note 25 Hedge accounting
Derivatives designated in
 
hedge accounting relationships
UBS AG
 
applies hedge
 
accounting to
 
interest rate risk and
 
foreign exchange
 
risk, including
 
structural foreign
 
exchange
risk related to net investments in foreign
 
operations.
 
›
 
Refer to “Market risk”
 
in the “Risk
 
management and
 
control” section of
 
this report for
 
more information about
 
how risks arise
and how they are managed
 
by UBS AG
Hedging instruments and
 
hedged risk
Interest rate swaps are designated in
 
fair value hedges
 
or cash flow
 
hedges of interest rate
 
risk arising solely from changes
in benchmark
 
interest rates.
 
Fair value
 
changes
 
arising
 
from such
 
risk are
 
usually the
 
largest component
 
of the
 
overall
change in the fair value of the hedged
 
position in transaction currency.
 
Cross-currency
 
swaps
 
are
 
designated
 
as
 
fair
 
value
 
hedges
 
of
 
foreign
 
exchange
 
risk.
 
Foreign
 
exchange
 
forwards
 
and
foreign exchange
 
swaps are
 
mainly designated
 
as hedges of
 
structural foreign
 
exchange risk
 
related to net
 
investments
in foreign operations.
 
In both cases the hedged risk arises solely from
 
changes in the spot
 
foreign exchange rate.
 
The notional of the designated hedging instruments matches the notional of the hedged items, except when the
 
interest
rate swaps are re-designated in
 
cash flow hedges,
 
in which case the hedge
 
ratio designated is determined based
 
on the
swap sensitivity.
Hedged items and hedge
 
designation
 
Fair value hedges of interest rate risk
 
related to debt instruments and
 
loan assets
Fair
 
value
 
hedges
 
of
 
interest
 
rate
 
risk
 
related
 
to
 
debt
 
instruments
 
and
 
loan
 
assets
 
involve swapping
 
fixed
 
cash
 
flows
associated with
 
the debt
 
issued, funding
 
from UBS
 
Group
 
AG, debt
 
securities held
 
and long
 
-term fixed-rate mortgage
loans in Swiss francs to floating
 
cash flows by entering into
 
interest rate swaps that either receive
 
fixed and pay floating
cash flows or that pay fixed and
 
receive floating cash flows.
 
Designations
 
have been
 
made in
 
US dollars,
 
euro,
 
Swiss francs,
 
Australian dollars,
 
yen, pounds
 
sterling and
 
Singapore
dollars. For new
 
hedging instruments
 
and hedged
 
risk designations entered
 
into starting from
 
2021 in
 
these currencies
(with
 
the
 
exception
 
of
 
euro),
 
the
 
benchmark
 
rate
 
was
 
the
 
relevant
 
alternative
 
reference
 
rate
 
(ARR).
 
Following
 
the
interbank offered rate (IBOR) transition for swaps with
 
LCH (formerly the London Clearing House) in December 2021, the
benchmark
 
hedge
 
rate
 
for
 
Swiss
 
franc,
 
yen
 
and
 
pound
 
sterling
 
designations
 
was
 
changed
 
from
 
an
 
IBOR
 
rate
 
to
 
the
relevant
 
ARR
 
with
 
the
 
hedge
 
relationship
 
continuing
 
in
 
accordance
 
with
Interest
 
Rate
 
Benchmark
 
Reform
 
–
 
Phase
 
2
(Amendments to IFRS 9, IAS
 
39, IFRS 7, IFRS 4
 
and IFRS 16)
.
Cash flow hedges of
 
forecast transactions
UBS
 
AG hedges
 
forecast cash
 
flows on
 
non-trading
 
financial assets
 
and
 
liabilities that
 
bear interest
 
at variable
 
rates or
are expected
 
to be
 
refinanced or
 
reinvested in
 
the future,
 
due to
 
movements in
 
future market
 
rates. The
 
amounts and
timing of future cash flows,
 
representing both principal and interest flows,
 
are projected on the basis of
 
contractual terms
and
 
other
 
relevant
 
factors,
 
including
 
estimates
 
of
 
prepayments
 
and
 
defaults.
 
The
 
aggregate
 
principal
 
balances
 
and
interest cash
 
flows across
 
all portfolios over
 
time form the
 
basis for identifying
 
the non-trading
 
interest rate risk
 
of UBS
AG, which is hedged
 
with interest rate swaps,
 
the maximum maturity of which
 
is 15 years. Cash
 
flow forecasts and
 
risk
exposures are monitored and adjusted on an ongoing basis, and consequently additional hedging instruments are traded
and
 
designated,
 
or
 
are
 
terminated
 
resulting
 
in
 
a
 
hedge
 
discontinuance.
 
Hedge
 
designations
 
have
 
been
 
made
 
in
 
the
following
 
currencies:
 
US dollars,
 
euro,
 
Swiss francs,
 
pounds
 
sterling and
 
Hong
 
Kong dollars.
 
The cash
 
flow
 
hedges
 
in
Swiss francs,
 
pounds sterling and
 
certain cash flow hedges
 
in US dollars were
 
discontinued and
 
replaced with new ARR
designations in December 2021.
 
In addition, the transition of floating
 
rate hedged items in USD
 
to ARR rates in January
2022
 
resulted in
 
the update
 
of the
 
hedged
 
risk to
 
ARR in
 
the affected
 
hedge
 
relationships
 
without discontinuation
 
of
hedge accounting in accordance with
Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7,
IFRS 4 and IFRS 16)
.
Fair value hedges of foreign exchange
 
risk related to issued debt
 
instruments
Debt instruments denominated in currencies other
 
than the US dollar are designated in fair value hedges
 
of spot foreign
exchange
 
risk,
 
in
 
addition
 
to
 
and
 
separate
 
from
 
the
 
fair
 
value
 
hedges
 
of
 
interest
 
rate
 
risk.
 
Cross-currency
 
swaps
economically convert debt denominated
 
in currencies other than the
 
US dollar to US dollars.
 
Hedges of net investments in foreign
 
operations
UBS AG applies hedge accounting for certain net investments in foreign operations, which include subsidiaries, branches
and associates.
 
Upon
 
maturity of
 
hedging
 
instruments, typically
 
two months,
 
the hedge
 
relationship is
 
terminated and
new designations are
 
made to reflect any changes in the
 
net investments in foreign operations.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
457
 
 
Note 25 Hedge accounting (continued)
 
 
Economic relationship between
 
hedged item and hedging instrument
The economic relationship
 
between the
 
hedged
 
item and the
 
hedging instrument
 
is determined
 
based on
 
a qualitative
analysis of their critical terms. In cases where hedge
 
designation takes place after origination of the hedging instrument,
a quantitative
 
analysis
 
of the
 
possible
 
behavior of
 
the hedging
 
derivative and
 
the hedged
 
item during
 
their respective
terms is also performed.
Sources of hedge
 
ineffectiveness
 
In
 
hedges
 
of
 
interest
 
rate
 
risk,
 
hedge
 
ineffectiveness
 
can
 
arise
 
from
 
mismatches
 
of
 
critical
 
terms
 
and
 
/
 
or
 
the
 
use
 
of
different curves
 
to discount the hedged
 
item and instrument,
 
or from entering
 
into a hedge
 
relationship after the trade
date of the hedging derivative.
 
In hedges
 
of foreign exchange
 
risk related to
 
debt issued, hedge
 
ineffectiveness can arise due
 
to the discounting
 
of the
hedging instruments and undesignated risk components
 
and lack of
 
such discounting and risk
 
components in the
 
hedged
items.
 
In hedges of net investments in foreign operations,
 
ineffectiveness is unlikely unless the hedged net assets fall below the
designated hedged
 
amount. The exceptions
 
are hedges
 
where the hedging
 
currency is not
 
the same as
 
the currency of
the foreign operation,
 
where the currency basis may cause ineffectiveness.
Hedge ineffectiveness from financial instruments
 
measured at fair value through
 
profit or loss is recognized in
Other net
income.
 
Derivatives not designated in hedge
 
accounting relationships
 
Non-hedge
 
accounted
 
derivatives are
 
mandatorily
 
held
 
for
 
trading
 
with
 
all
 
fair
 
value
 
movements
 
taken
 
to
Other
 
net
income from financial instruments
 
measured at fair value
 
through profit or loss
, even when
 
held as an economic hedge
or to
 
facilitate client
 
clearing.
 
The one
 
exception relates
 
to forward
 
points
 
on certain
 
short-
 
and long
 
-duration foreign
exchange contracts acting as economic hedges,
 
which are reported in
Net interest income.
 
 
All hedges: designated
 
hedging instruments and hedge ineffectiveness
As of or for the year ended
31.12.22
USD m
Notional
amount
Carrying amount
Changes in
 
fair value of
hedging
instruments
1
Changes in
fair value of
hedged
items
1
Hedge
ineffectiveness
recognized in the
income statement
Derivative
financial
assets
Derivative
financial
liabilities
Interest rate risk
Fair value hedges
92,415
0
0
(5,195)
5,169
(27)
Cash flow hedges
75,304
2
5
(5,813)
5,760
(53)
Foreign exchange risk
Fair value hedges
2
20,566
845
3
(1,088)
1,105
18
Hedges of net investments in foreign operations
13,844
7
528
318
(319)
(1)
As of or for the year ended
31.12.21
USD m
Notional
amount
Carrying amount
Changes in
 
fair value of
hedging
instruments
1
Changes in
fair value of
hedged
items
1
Hedge
ineffectiveness
recognized in the
income statement
Derivative
financial
assets
Derivative
financial
liabilities
Interest rate risk
Fair value hedges
89,525
0
7
(1,604)
1,602
(2)
Cash flow hedges
79,573
12
1
(1,185)
990
(196)
Foreign exchange risk
Fair value hedges
2
27,875
87
261
(2,139)
2,181
42
Hedges of net investments in foreign operations
13,761
23
103
492
(491)
0
1 Amounts
 
used as
 
the basis for
 
recognizing hedge
 
ineffectiveness
 
for the
 
period.
 
2 The
 
foreign currency
 
basis spread
 
of cross-currency
 
swaps designated
 
as hedging
 
derivatives is
 
excluded from
 
the hedge
accounting designation and accounted
 
for as a cost of hedging with
 
amounts deferred in Other
 
comprehensive income
 
within Equity.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
458
 
 
Note 25 Hedge accounting (continued)
Fair value hedges: designated
 
hedged items
 
USD m
31.12.22
31.12.21
Interest rate
risk
FX risk
Interest rate
risk
FX risk
Debt issued measured at amortized
 
cost
Carrying amount of designated debt issued
11,279
5,737
21,653
11,392
 
of which: accumulated amount of fair value hedge
 
adjustment
(1,002)
261
Funding from UBS Group AG
Carrying amount of designated debt instruments
57,250
14,828
53,047
16,483
 
of which: accumulated amount of fair value hedge
 
adjustment
(5,055)
218
Other financial assets measured at
 
amortized cost – debt securities
Carrying amount of designated debt securities
4,577
2,677
 
of which: accumulated amount of fair value hedge
 
adjustment
(180)
(7)
Loans and advances to customers
Carrying amount of designated loans
14,270
13,835
of which: accumulated amount of fair value hedge
 
adjustment
(1,249)
(109)
of which: accumulated amount of fair value hedge
 
adjustment subject to amortization attributable
 
to the
portion of the portfolio that ceased to be part
 
of hedge accounting
(51)
3
 
Fair value hedges: profile of
 
the timing of the nominal amount
 
of the hedging instrument
31.12.22
USD bn
Due within
1 month
Due between
1 and 3 months
Due between
3 and 12 months
Due between
1 and 5 years
Due after
5 years
Total
Interest rate swaps
0
4
10
53
26
92
Cross-currency swaps
0
1
2
12
5
21
31.12.21
USD bn
Due within
1 month
Due between
1 and 3 months
Due between
3 and 12 months
Due between
1 and 5 years
Due after
5 years
Total
Interest rate swaps
0
8
10
49
22
90
Cross-currency swaps
1
1
6
13
6
28
 
Cash flow hedge reserve on
 
a pre-tax basis
 
USD m
31.12.22
31.12.21
Amounts related to hedge relationships for which hedge
 
accounting continues to
 
be applied
(4,692)
26
Amounts related to hedge relationships for which hedge
 
accounting is no longer applied
(540)
743
Total other comprehensive
 
income recognized directly in equity
 
related to cash flow hedges, on
 
a pre-tax basis
(5,232)
769
 
Foreign currency translation
 
reserve on a pre
 
-tax basis
USD m
31.12.22
31.12.21
Amounts related to hedge relationships for which hedge
 
accounting continues to be
 
applied
250
(61)
Amounts related to hedge relationships for which hedge
 
accounting is no longer applied
266
262
Total other comprehensive
 
income recognized directly in equity
 
related to hedging instruments designated
 
as net investment hedges, on
 
a pre-tax
basis
515
201
Interest rate benchmark
 
reform
UBS AG
 
continues to
 
apply the
 
relief provided
 
by
Interest Rate
 
Benchmark Reform
 
(amendments
 
to IFRS 9,
 
IAS 39 and
IFRS 7)
,
 
published
 
by
 
the
 
IASB in
 
September 2019,
 
mainly to
 
its hedges
 
in USD
 
.
 
The cessation
 
date
 
for
 
USD
 
LIBOR
 
is
30 June 2023.
 
The
 
following
 
table
 
provides
 
details
 
on
 
the notional
 
amount
 
and
 
carrying amount
 
of
 
the
 
hedging
 
instruments
 
in
 
the
hedge relationships
 
where the
 
designated risk is
 
LIBOR and
 
maturing after
 
the cessation
 
date of the
 
applicable interest
rate benchmarks.
 
Hedges of net investments in foreign
 
operations are not affected by the amendments.
›
 
Refer to Note 1a
 
item 2j for more
 
information about
 
the relief provided by
 
the amendments
 
to IFRS 9 and
 
IFRS 7 related
 
to
interest rate benchmark
 
reform
›
 
Refer to Note 24
 
for more information
 
about the transition
 
progress
›
 
Refer to earlier parts
 
of this Note for the
 
information about
 
the transition
 
progress of fair value
 
and cash flow hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
459
 
 
Note 25 Hedge accounting (continued)
 
Hedging instruments referencing
 
LIBOR
31.12.22
31.12.21
Carrying amount
Carrying amount
USD m
Notional
amount
Derivative
financial
assets
Derivative
financial
liabilities
Notional
amount
Derivative
financial
assets
Derivative
financial
liabilities
Interest rate risk
Fair value hedges
20,383
0
0
23,367
0
0
Cash flow hedges
2,179
0
0
10,803
0
0
 
 
 
Note 26
 
Post-employment benefit plans
 
a) Defined benefit plans
UBS AG has
 
established defined benefit
 
plans for its
 
employees in various
 
jurisdictions in accordance
 
with local regulations
and practices.
 
The major plans
 
are located
 
in Switzerland,
 
the UK,
 
the US
 
and Germany.
 
The level
 
of benefits
 
depends
on the specific plan rules.
Swiss pension plan
The Swiss
 
pension plan covers
 
employees of UBS
 
Group AG
 
in Switzerland and
 
employees of companies
 
in Switzerland
having close economic or financial ties with UBS Group AG, and exceeds the minimum benefit requirements under Swiss
pension law.
 
In 2017, a significant
 
number of
 
employees were
 
transferred from UBS
 
AG to UBS Business
 
Solutions AG,
which
 
is
 
a
 
directly
 
held
 
subsidiary
 
of
 
UBS
 
Group
 
AG.
 
There
 
continues
 
to
 
be
 
one
 
pooled
 
pension
 
plan
 
in
 
Switzerland
covering
 
the
 
employees
 
of
 
UBS
 
AG
 
and
 
those
 
transferred
 
to
 
UBS
 
Business
 
Solutions
 
AG.
 
UBS
 
AG
 
and
 
UBS
 
Business
Solutions AG both are
 
legal sponsors of UBS’s Swiss pension
 
plan. Since the date of the employee transfer,
 
UBS AG and
UBS Business Solutions AG apply proportionate defined benefit
 
accounting, i.e., the net pension cost and
 
the net pension
asset / liability
 
of the Swiss
 
pension plan
 
are allocated
 
proportionally
 
between UBS
 
AG and
 
UBS Business
 
Solutions AG
based
 
on
 
the aggregated
 
net pension
 
cost and
 
defined
 
benefit obligations
 
related
 
to their
 
employees.
 
The Swiss
 
plan
offers retirement,
 
disability and survivor
 
benefits and is governed
 
by a Pension
 
Foundation Board.
 
The responsibilities of
this board are defined
 
by Swiss pension law and the
 
plan rules.
Savings contributions to the Swiss
 
plan are paid
 
by both employer and employee.
 
Depending on the age
 
of the employee,
UBS
 
AG pays
 
a savings
 
contribution
 
that
 
ranges
 
between
6.5
% and
27.5
% of
 
contributory
 
base salary
 
and
 
between
2.8
% and
9
% of contributory variable
 
compensation. UBS AG also pays risk contributions that are used to fund disability
and survivor benefits. Employees
 
can choose the level
 
of savings contributions
 
paid by them, which
 
vary between
2.5
%
and
13.5
% of contributory base salary and
 
between
0
% and
9
% of contributory
 
variable compensation, depending
 
on
age and choice of savings contribution
 
category.
 
The plan offers to members at the
 
normal retirement age
 
of
65
 
a choice between a lifetime
 
pension and
 
a partial or full
lump sum
 
payment. Participants can
 
choose to draw
 
early retirement benefits
 
starting from
 
the age of
58
, but can
 
also
continue
 
employment and
 
remain active
 
members of
 
the plan
 
until the
 
age of
70
. Employees have
 
the opportunity
 
to
make additional purchases of benefits
 
to fund early retirement benefits.
The pension
 
amount payable to
 
a participant is
 
calculated by
 
applying a
 
conversion rate to the
 
accumulated balance of
the
 
participant’s
 
retirement savings
 
account
 
at
 
the
 
retirement
 
date.
 
The
 
balance
 
is
 
based
 
on
 
credited
 
vested
 
benefits
transferred
 
from
 
previous
 
employers,
 
purchases
 
of
 
benefits,
 
and
 
the
 
employee
 
and
 
employer
 
contributions
 
that
 
have
been
 
made
 
to
 
the
 
participant’s
 
retirement
 
savings
 
account,
 
as
 
well
 
as
 
the
 
interest
 
accrued.
 
The
 
annual
 
interest
 
rate
credited to participants is determined by
 
the Pension Foundation
 
Board at the end of each year.
Although
 
the Swiss
 
plan
 
is based
 
on a
 
defined
 
contribution
 
promise under
 
Swiss pension
 
law, it
 
is accounted
 
for as
 
a
defined
 
benefit
 
plan
 
under
 
International
 
Financial
 
Reporting
 
Standards
 
(IFRS),
 
primarily
 
because
 
of
 
the
 
obligation
 
to
accrue interest on the participants’
 
retirement savings accounts and
 
the payment of lifetime pension
 
benefits.
 
An actuarial valuation in accordance with Swiss
 
pension law is performed regularly.
 
Should an underfunded
 
situation on
this basis occur, the Pension Foundation Board is
 
required to take the necessary measures to ensure that full funding
 
can
be
 
expected
 
to
 
be
 
restored
 
within
 
a
 
maximum
 
period
 
of
10
 
years.
 
If
 
a
 
Swiss
 
plan
 
were
 
to
 
become
 
significantly
underfunded
 
on a
 
Swiss pension
 
law basis,
 
additional employer
 
and
 
employee contributions
 
could
 
be required.
 
In this
situation, the risk is
 
shared between employer and employees, and the employer
 
is not legally obliged to cover more than
50
% of the
 
additional contributions
 
required. As of
 
31 December 2022,
 
the Swiss plan
 
had a technical funding
 
ratio in
accordance with Swiss pension
 
law of
119.0
% (31 December 2021:
134.8
%).
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
460
 
 
Note 26
 
Post-employment benefit plans
 
(continued)
The investment strategy
 
of the Swiss
 
plan complies
 
with Swiss pension
 
law, including the
 
rules and
 
regulations relating
to diversification of plan assets, and is
 
derived from the risk
 
budget defined by the Pension Foundation Board on the
 
basis
of regularly performed asset and liability management analyses. The Pension Foundation Board strives
 
for a medium-
 
and
long-term balance between assets and
 
liabilities.
 
As of
 
31 December 202
 
2,
 
the Swiss plan
 
was in
 
a surplus
 
situation on
 
an IFRS
 
measurement basis,
 
as the
 
fair value
 
of
the
 
plan’s
 
assets
 
exceeded
 
the
 
defined
 
benefit
 
obligation
 
(DBO)
 
by
 
USD
4,418
m
 
(31 December
 
2021:
 
USD
3,716
m).
However,
 
a surplus
 
is only
 
recognized on
 
the balance
 
sheet to
 
the extent
 
that it
 
does not
 
exceed the
 
estimated future
economic benefit,
 
which equals
 
the difference
 
between
 
the present
 
value of
 
the estimated
 
future net
 
service cost
 
and
the present value of the
 
estimated future employer
 
contributions. As of both 31 December
 
2022 and 31 December 2021,
the estimated future economic benefit
 
was zero and
 
hence no net defined
 
benefit asset was recognized
 
on the balance
sheet.
Changes to the Swiss pension
 
plan in 2019
The
 
Pension Foundation Board
 
and UBS
 
AG
 
agreed to
 
implement measures
 
that took
 
effect from
 
the start
 
of
 
2019 to
support
 
the
 
long-term
 
financial stability
 
of
 
the
 
Swiss
 
pension
 
fund.
 
The
 
measures,
 
among
 
other
 
things,
 
lowered
 
the
conversion rate and increased the normal retirement age
 
from 64 to 65.
 
Pensions already in payment on 1 January 2019
were not affected.
To mitigate the
 
effects for active
 
participants, UBS
 
AG committed to
 
pay an
 
extraordinary contribution
 
and contributed
CHF
390
m (USD
421
m) in three
 
installments in
 
2020,
 
2021
 
and 2022.
 
The installments
 
of USD
143
m, USD
152
m and
USD
126
m paid in 2020, 2021 and 2022 reduced other comprehensive income with no effect on the income statement.
The regular employer contributions
 
to be made to the Swiss plan
 
in 2023 are estimated at USD
275
m.
UK pension plan
 
The
 
UK
 
plan
 
is
 
a
 
career-average
 
revalued
 
earnings
 
scheme,
 
and
 
benefits
 
increase
 
automatically
 
based
 
on
 
UK
 
price
inflation,
 
subject
 
to
 
defined
 
caps. The
 
normal
 
retirement
 
age
 
for
 
participants in
 
the
 
UK
 
plan
 
is
60
. The
 
plan
 
provides
guaranteed lifetime
 
pension benefits
 
to participants upon
 
retirement. The
 
UK plan has
 
been closed to
 
new entrants for
more than
 
20 years and,
 
since 2013,
 
participants are no
 
longer accruing
 
benefits for
 
current or
 
future service.
 
Instead,
employees participate in the UK defined
 
contribution plan.
The
 
governance
 
responsibility for
 
the
 
UK
 
plan
 
lies
 
jointly with
 
the
 
Pension
 
Trustee Board
 
and
 
UBS
 
AG.
 
The
 
employer
contributions to
 
the pension
 
fund reflect agreed-upon
 
deficit funding
 
contributions, which
 
are determined on
 
the basis
of the most recent actuarial valuation
 
using assumptions agreed
 
by the Pension Trustee Board and U
 
BS AG. In the event
of underfunding, UBS AG and the Pension Trustee
 
Board must agree on a
 
deficit recovery plan within statutory deadlines.
In 2022, UBS AG
 
made deficit
 
funding contributions of USD
5
m to the
 
UK plan. In
 
2021, UBS AG made
 
no deficit funding
contributions.
The plan
 
assets are invested in
 
a diversified portfolio
 
of financial assets,
 
which include
 
longevity swaps
 
with an
 
external
insurance company. These swaps
 
enable the UK pension
 
plan to hedge the
 
risk between expected
 
and actual longevity,
which should
 
mitigate volatility in the
 
net defined benefit
 
asset / liability. As
 
of 31 December 2022,
 
the longevity swaps
had a negative value of USD
1
m (31 December 2021: negative USD
3
m).
In 2019, UBS AG
 
and the Pension Trustee Board
 
entered into an arrangement whereby
 
a collateral pool was established
to
 
provide
 
security
 
for
 
the
 
pension
 
fund.
 
The
 
value
 
of
 
the
 
collateral
 
pool
 
as
 
of
 
31 December
 
2022
 
was
 
USD
292
m
(31 December 2021: USD
337
m) and includes
 
corporate bonds, government-related debt instruments and other
 
financial
assets. The arrangement provides the Pension Trustee
 
Board dedicated access to a pool of
 
assets in the event
 
of UBS AG’s
insolvency or not paying a required
 
deficit funding contribution.
The employer
 
contributions
 
to be
 
made to
 
the UK
 
defined
 
benefit plan
 
in 2023
 
are estimated
 
at USD
18
m, subject
 
to
regular funding reviews during
 
the year.
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
461
 
 
Note 26
 
Post-employment benefit plans
 
(continued)
US pension plans
 
There are two distinct
 
major defined
 
benefit plans
 
in the
 
US, with a
 
normal retirement
 
age of
65
. Both plans
 
were closed
 
to
new entrants more than
 
20 years ago. Since
 
they closed,
 
new employees have
 
participated in
 
a defined contribution
 
plan.
One of the defined benefit plans is a contribution
 
-based plan in which each participant accrues a percentage of
 
salary in
a retirement
 
savings
 
account. The
 
retirement savings
 
account is
 
credited annually
 
with
 
interest based
 
on
 
a rate
 
that is
linked to
 
the average
 
yield on
 
one-year US
 
government bonds.
 
For the
 
other defined
 
benefit plan,
 
retirement benefits
accrue based on the
 
career-average earnings of each individual plan participant.
 
Former employees with vested benefits
have the option of taking
 
a lump sum payment or a lifetime annuity.
As required
 
under applicable pens
 
ion laws, both
 
plans have fiduciaries who,
 
together with
 
UBS AG,
 
are responsible
 
for
the governance of the plans.
The plan assets
 
of both plans
 
are invested in
 
diversified portfolios
 
of financial assets. Each
 
plan’s fiduciaries are responsible
for the investment decisions with
 
respect to the plan assets.
 
The employer contributions to
 
be made to the US defined
 
benefit plans in 2023
 
are estimated at USD
11
m.
German pension plans
There are two unfunded defined benefit plans in Germany. The normal retirement age is
65
 
and benefits are paid directly
by UBS AG. In the larger
 
of the two plans each participant
 
accrues a percentage of salary in
 
a retirement savings account.
The accumulated account
 
balance of the participant
 
is credited on an
 
annual basis with
 
guaranteed interest at
 
a rate of
5
%. The plan has
 
been closed to new entrants,
 
and all participants younger than the
 
age of 55 as of
 
June 2021 no
 
longer
accrue
 
benefits.
 
In
 
the
 
other
 
plan,
 
amounts
 
are
 
accrued
 
annually
 
based
 
on
 
employee
 
elections
 
related
 
to
 
variable
compensation. For this plan, the
 
accumulated account balance is credited
 
on an annual basis with a guaranteed
 
interest
rate of
6
% for amounts accrued before 2010, of
4
% for amounts accrued from 2010 to 2017 and of
0.9
% for amounts
accrued after
 
2017.
 
Both plans
 
are subject to
 
German pension
 
law,
 
whereby the
 
responsibility to
 
pay pension
 
benefits
when they are due resides entirely with UBS AG. A portion of the
 
pension payments is directly increased in line with price
inflation.
 
In June
 
2021,
 
UBS
 
AG implemented
 
a new
 
funded
 
pension
 
plan
 
with interest
 
credited
 
to participants
 
equal
 
to actual
investment returns
 
with a
 
guaranteed
 
minimum of
0
%. The
 
plan
 
was implemented
 
retrospectively
 
for new
 
hires since
June 2018 and for all eligible
 
active participants younger
 
than 55 from July 2021.
 
Each participant accrues a percentage
of salary in a retirement savings account
 
.
The employer contributions to
 
be made to the German defined benefit
 
plans in 2023 are estimated
 
at USD
12
m.
Financial information by plan
The tables
 
below
 
provide
 
an analysis
 
of
 
the movement
 
in the
 
net
 
asset /
 
liability recognized
 
on
 
the balance
 
sheet
 
for
defined benefit plans, as well as
 
an analysis of amounts recognized
 
in net profit and in
Other comprehensive incom
e.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
462
 
 
Note 26
 
Post-employment benefit plans
 
(continued)
Defined benefit plans
USD m
Swiss pension plan
UK pension plan
US and German
pension plans
Total
2022
2021
2022
2021
2022
2021
2022
2021
Defined benefit obligation at the beginning of the year
15,480
15,619
4,105
4,162
1,740
1,905
21,324
21,686
Current service cost
240
285
0
0
5
6
244
291
Interest expense
195
33
67
58
35
30
297
122
Plan participant contributions
154
161
0
0
0
0
154
161
Remeasurements
(2,424)
490
(1,474)
71
(267)
(62)
(4,165)
498
of which: actuarial (gains) / losses due to changes in demographic
 
assumptions
2
26
(6)
14
1
4
(3)
45
of which: actuarial (gains) / losses due to changes in financial
 
assumptions
(2,653)
(385)
(1,575)
(3)
(279)
(78)
(4,506)
(466)
of which: experience (gains) / losses
1
226
848
107
59
11
12
344
919
Past service cost related to plan amendments
0
0
0
0
0
4
0
4
Curtailments
(13)
(49)
0
0
0
0
(13)
(49)
Benefit payments
(796)
(602)
(123)
(148)
(111)
(112)
(1,030)
(862)
Other movements
(5)
0
0
0
0
1
(5)
1
Foreign currency translation
(291)
(456)
(408)
(38)
(28)
(33)
(727)
(527)
Defined benefit obligation at the
 
end of the year
12,539
15,480
2,166
4,105
1,375
1,740
16,080
21,324
of which: amounts owed to active members
7,103
8,604
65
150
169
222
7,336
8,976
of which: amounts owed to deferred members
0
0
656
1,593
528
669
1,184
2,262
of which: amounts owed to retirees
5,436
6,876
1,445
2,362
678
849
7,560
10,086
of which: funded plans
12,539
15,480
2,166
4,105
1,011
1,222
15,717
20,806
of which: unfunded plans
0
0
0
0
363
518
363
518
Fair value of plan assets at the beginning
 
of the year
19,196
18,358
4,297
4,149
1,329
1,360
24,821
23,867
Return on plan assets excluding interest income
(1,942)
1,319
(1,312)
277
(223)
40
(3,476)
1,637
Interest income
274
42
70
58
31
26
376
127
Employer contributions
 
401
450
5
0
16
16
422
466
Plan participant contributions
154
161
0
0
0
0
154
161
Benefit payments
(796)
(602)
(123)
(148)
(111)
(112)
(1,030)
(862)
Administration expenses, taxes and premiums paid
(7)
(8)
0
0
(3)
(4)
(11)
(11)
Other movements
(1)
0
0
0
0
1
(1)
1
Foreign currency translation
(322)
(524)
(450)
(39)
0
0
(772)
(563)
Fair value of plan assets
 
at the end of the year
16,957
19,196
2,488
4,297
1,039
1,329
20,484
24,821
Surplus / (deficit)
4,418
3,716
321
192
(335)
(411)
4,404
3,497
Asset ceiling effect at the beginning of the year
3,716
2,739
0
0
0
0
3,716
2,739
Interest expense on asset ceiling effect
77
8
0
0
0
0
77
8
Asset ceiling effect excluding interest expense and foreign
 
currency translation on
asset ceiling effect
656
1,037
0
0
0
0
656
1,037
Foreign currency translation
(31)
(68)
0
0
0
0
(31)
(68)
Asset ceiling effect at the end of the year
4,418
3,716
0
0
0
0
4,418
3,716
Net defined benefit asset / (liability) of
 
major plans
0
0
321
192
(335)
(411)
(14)
(219)
Net defined benefit asset / (liability) of remaining
 
plans
(80)
(96)
Total net defined benefit
 
asset / (liability)
(94)
(315)
of which: Net defined benefit asset
355
302
of which: Net defined benefit liability
2
(449)
(617)
1 Experience (gains)
 
/ losses
 
are a component
 
of actuarial remeasurements
 
of the defined
 
benefit obligation
 
and reflect
 
the effects
 
of differences between
 
the previous actuarial
 
assumptions and
 
what has actually
occurred.
 
2 Refer to Note 18c.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
463
 
 
Note 26
 
Post-employment benefit plans
 
(continued)
Income statement – expenses related
 
to defined benefit plans
1
USD m
Swiss pension plan
UK pension plan
US and German
pension plans
Total
For the year ended
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
Current service cost
240
285
0
0
5
6
244
291
Interest expense related to defined benefit obligation
195
33
67
58
35
30
297
122
Interest income related to plan assets
(274)
(42)
(70)
(58)
(31)
(26)
(376)
(127)
Interest expense on asset ceiling effect
77
8
0
0
0
0
77
8
Administration expenses, taxes and premiums paid
7
8
0
0
3
4
11
11
Past service cost related to plan amendments
0
0
0
0
0
4
0
4
Curtailments
(13)
(49)
0
0
0
0
(13)
(49)
Net periodic expenses recognized in net
 
profit for major plans
230
243
(3)
0
12
18
239
261
Net periodic expenses recognized in net
 
profit for remaining plans
2
17
19
Total net periodic
 
expenses recognized in net profit
256
280
1 Refer to Note 6.
 
2 Includes differences between
 
actual and estimated performance
 
award accruals.
Other comprehensive income – gains /
 
(losses) on defined benefit plans
 
USD m
Swiss pension plan
UK pension plan
US and German
pension plans
Total
For the year ended
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
Remeasurement of defined benefit obligation
2,424
(490)
1,474
(71)
267
62
4,165
(498)
of which: change in discount rate assumption
3,078
494
1,451
319
317
77
4,846
890
of which: change in rate of pension increase
 
assumption
0
0
123
(316)
(5)
(1)
118
(318)
of which: change in rate of interest credit on
 
retirement savings assumption
(408)
(110)
0
0
(82)
(1)
(490)
(110)
of which: change in life expectancy
0
0
5
9
(1)
(3)
4
5
of which: change in other actuarial assumptions
(19)
(26)
1
(23)
48
2
30
(47)
of which: experience gains / (losses)
1
(226)
(848)
(107)
(59)
(11)
(12)
(344)
(919)
Return on plan assets excluding interest income
(1,942)
1,319
(1,312)
277
(223)
40
(3,476)
1,637
Asset ceiling effect excluding interest expense and foreign
 
currency translation
(656)
(1,037)
0
0
0
0
(656)
(1,037)
Total gains / (losses) recognized
 
in other comprehensive income for major plans
(173)
(207)
162
207
43
102
32
102
Total gains / (losses) recognized
 
in other comprehensive income for remaining plans
8
31
Total gains / (losses) recognized
 
in other comprehensive income
2
40
133
1 Experience
 
(gains) / losses
 
are a component
 
of actuarial remeasurements
 
of the defined
 
benefit obligation
 
and reflect
 
the effects of
 
differences between
 
the previous actuarial
 
assumptions and
 
what has actually
occurred.
 
2 Refer to the “Statement
 
of comprehensive income.”
 
 
The table below provides
 
information about the duration of
 
the DBO and the timing for expected benefit payments.
 
Swiss pension plan
UK pension plan
US and German pension
plans
1
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
Duration of the defined benefit
 
obligation (in years)
13.4
15.5
13.7
18.8
7.9
9.5
Maturity analysis of benefits expected
 
to be paid
USD m
Benefits expected to be paid within 12 months
702
719
107
110
123
123
Benefits expected to be paid between
 
1 and 3 years
1,445
1,440
234
248
232
237
Benefits expected to be paid between
 
3 and 6 years
2,183
2,097
384
418
335
338
Benefits expected to be paid between
 
6 and 11 years
3,751
3,467
667
743
502
495
Benefits expected to be paid between
 
11 and 16 years
3,519
3,156
667
751
388
392
Benefits expected to be paid in more than 16 years
13,243
10,733
2,570
3,028
516
519
1 The duration of the
 
defined benefit obligation
 
represents a weighted average
 
across US and German
 
plans.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
464
 
 
Note 26
 
Post-employment benefit plans
 
(continued)
Actuarial assumptions
The
 
actuarial assumptions
 
used
 
for
 
the defined
 
benefit plans
 
are
 
based
 
on
 
the
 
economic conditions
 
prevailing
 
in
 
the
jurisdiction
 
in which
 
they
 
are
 
offered.
 
Changes
 
in the
 
defined
 
benefit
 
obligation
 
are
 
most sensitive
 
to
 
changes
 
in the
discount rate. The di
 
scount rate is based
 
on the yield of high
 
-quality corporate bonds
 
quoted in an active
 
market in the
currency of
 
the respective plan.
 
A decrease
 
in the
 
discount curve increases
 
the DBO. UBS
 
AG regularly reviews
 
the actuarial
assumptions used in
 
calculating the DBO to determine their continuing
 
relevance.
›
 
Refer to Note 1a
 
item 5 for a description
 
of the accounting
 
policy for defined
 
benefit plans
 
 
The tables below show
 
the significant actuarial assumptions used
 
in calculating the DBO at the end of
 
the year.
 
Significant actuarial assumptions
Swiss pension plan
UK pension plan
US pension plans
German pension plans
In %
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
Discount rate
2.34
0.34
5.02
1.82
4.92
1
2.47
1
3.81
0.99
Rate of pension increase
0.00
0.00
3.08
3.32
0.00
0.00
2.20
1.80
Rate of interest credit on retirement savings
 
3.39
1.04
0.00
0.00
5.73
2
1.18
2
0.00
0.00
1 Represents weighted average
 
across US pension plans.
 
2 Only applicable to
 
one of the US pension plans
 
Mortality tables and life expectancies
 
for major plans
Life expectancy at age 65 for a male member currently
aged 65
aged 45
Country
Mortality table
31.12.22
31.12.21
31.12.22
31.12.21
Switzerland
BVG 2020 G with CMI 2021 projections
1
21.7
21.7
23.4
23.3
UK
S3PA with CMI 2021 projections
2
23.5
23.4
24.6
24.5
USA
Pri-2012 with MP-2021 projection scale
22.0
21.9
23.3
23.3
Germany
Dr. K. Heubeck
 
2018 G
20.6
20.5
23.4
23.2
Life expectancy at age 65 for a female member currently
aged 65
aged 45
Country
Mortality table
31.12.22
31.12.21
31.12.22
31.12.21
Switzerland
BVG 2020 G with CMI 2021 projections
1
23.5
23.4
25.1
25.0
UK
S3PA with CMI 2021 projections
2
25.0
24.9
26.4
26.3
USA
Pri-2012 with MP-2021 projection scale
23.4
23.3
24.8
24.7
Germany
Dr. K. Heubeck
 
2018 G
24.0
23.9
26.3
26.1
1 In 2021, BVG 2020 G with
 
CMI 2019 projections was
 
used.
 
2 In 2021, S3PA
 
with CMI 2020
 
projections was used.
Sensitivity analysis of significant actuarial
 
assumptions
The table
 
below
 
presents
 
a sensitivity
 
analysis
 
for each
 
significant
 
actuarial
 
assumption,
 
showing
 
how the
 
DBO would
have been
 
affected by
 
changes in
 
the relevant actuarial
 
assumption
 
that were
 
reasonably
 
possible at
 
the balance sheet
date.
 
Unforeseen
 
circumstances
 
may
 
arise,
 
which
 
could
 
result
 
in
 
variations
 
that
 
are
 
outside
 
the
 
range
 
of
 
alternatives
deemed
 
reasonably
 
possible.
 
Caution
 
should
 
be
 
used
 
in
 
extrapolating
 
the
 
sensitivities
 
below
 
on
 
the
 
DBO,
 
as
 
the
sensitivities may not be linear.
 
Sensitivity analysis of significant actuarial
 
assumptions
1
Increase / (decrease) in defined benefit obligation
Swiss pension plan
UK pension plan
US and German pension plans
USD m
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
Discount rate
Increase by 50 basis points
(641)
(975)
(141)
(361)
(51)
(78)
Decrease by 50 basis points
723
1,116
157
411
55
84
Rate of pension increase
Increase by 50 basis points
487
749
127
334
4
6
Decrease by 50 basis points
–
2
–
2
(118)
(306)
(3)
(6)
Rate of interest credit on retirement
 
savings
Increase by 50 basis points
106
134
–
3
–
3
9
8
Decrease by 50 basis points
(106)
(134)
–
3
–
3
(8)
(7)
Life expectancy
Increase in longevity by one additional year
304
475
65
184
39
56
1 The sensitivity analyses are based on a change in one assumption while
 
holding all other assumptions constant, so that interdependencies
 
between the assumptions are excluded.
 
2 As the assumed rate of pension
increase was
0
% as of 31 December 2022
 
and as of 31 December
 
2021, a downward change
 
in assumption is
 
not applicable.
 
3 As the UK plan does
 
not provide interest credits
 
on retirement savings,
 
a change in
assumption is not applicable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
465
 
 
Note 26
 
Post-employment benefit plans
 
(continued)
Fair value of plan assets
The tables below provide
 
information about the composition
 
and fair value of plan assets of
 
the major pension plans.
 
Composition and fair value
 
of plan assets
Swiss pension plan
31.12.22
31.12.21
Fair value
Plan asset
allocation %
Fair value
Plan asset
allocation %
USD m
Quoted
in an active
market
Other
Total
Quoted
in an active
market
Other
Total
Cash and cash equivalents
183
0
183
1
106
0
106
1
Real estate / property
Domestic
0
2,130
2,130
13
0
1,994
1,994
10
Foreign
0
517
517
3
0
328
328
2
Investment funds
Equity
 
Domestic
418
0
418
2
476
0
476
2
Foreign
2,794
1,222
4,017
24
3,510
1,498
5,009
26
Bonds
1
Domestic, AAA to BBB–
2,117
0
2,117
12
2,512
0
2,512
13
Foreign, AAA
 
to BBB–
3,395
0
3,395
20
2,877
0
2,877
15
Foreign, below BBB–
598
0
598
4
742
0
742
4
Other
867
1,997
2,864
17
2,379
2,010
4,389
23
Other investments
351
367
718
4
377
385
762
4
Total fair value of plan
 
assets
10,724
6,233
16,957
100
12,980
6,216
19,196
100
31.12.22
31.12.21
Total fair value of plan
 
assets
16,957
19,196
of which:
2
Bank accounts at UBS AG
189
109
UBS AG debt instruments
28
16
UBS Group AG shares
15
14
Securities lent to UBS AG
3
489
608
Property occupied by UBS
51
52
Derivative financial instruments, counterparty
 
UBS AG
3
43
72
1 The bond credit ratings
 
are primarily based
 
on S&P’s credit
 
ratings. Ratings
 
AAA to BBB–
 
and below BBB
 
–
 
represent investment
 
grade and non-investment
 
grade ratings,
 
respectively. In
 
cases where credit ratings
from other rating agencies were
 
used, these were converted to
 
the equivalent rating in
 
S&P’s rating classification.
 
2 Bank accounts at
 
UBS AG encompass accounts
 
in the name of the Swiss
 
pension fund. The
 
other
positions disclosed
 
in the
 
table encompass
 
both direct
 
investments in
 
UBS AG
 
instruments
 
and
 
UBS Group
 
AG shares
 
and indirect
 
investments,
 
i.e.,
 
those
 
made through
 
funds that
 
the pension
 
fund invests
 
in.
 
3 Securities lent to UBS
 
AG and derivative
 
financial instruments
 
are presented gross
 
of any collateral. Securities
 
lent to UBS AG
 
were fully covered
 
by collateral as of
 
31 December 2022
 
and 31 December 2021.
 
Net
of collateral, derivative financial
 
instruments amounted to
 
negative USD
5
m as of 31 December 2022
 
(31 December 2021:
 
positive USD
24
m).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
466
 
 
Note 26
 
Post-employment benefit plans
 
(continued)
Composition and fair value
 
of plan assets (continued)
UK pension plan
31.12.22
31.12.21
Fair value
Plan asset
allocation %
Fair value
Plan asset
allocation %
USD m
Quoted
in an active
market
Other
Total
Quoted
in an active
market
Other
Total
Cash and cash equivalents
104
0
104
4
147
0
147
3
Bonds
1
Domestic, AAA to BBB–
1,729
0
1,729
69
2,605
0
2,605
61
Foreign, AAA
 
to BBB–
297
0
297
12
372
0
372
9
Foreign, below BBB–
7
0
7
0
4
0
4
0
Investment funds
Equity
 
Domestic
19
3
22
1
44
4
47
1
Foreign
366
0
366
15
921
0
921
21
Bonds
1
Domestic, AAA to BBB–
367
90
457
18
532
147
679
16
Domestic, below BBB–
1
0
1
0
12
0
12
0
Foreign, AAA
 
to BBB–
90
0
90
4
179
0
179
4
Foreign, below BBB–
114
0
114
5
115
0
115
3
Real estate
Domestic
64
0
64
3
110
12
122
3
Foreign
6
31
36
1
6
34
40
1
Other
(280)
0
(280)
(11)
(313)
0
(313)
(7)
Repurchase agreements
(612)
0
(612)
(25)
(725)
0
(725)
(17)
Other investments
66
27
94
4
65
26
91
2
Total fair value of plan
 
assets
2,336
151
2,488
100
4,074
223
4,297
100
1 The bond credit ratings
 
are primarily based
 
on S&P’s credit
 
ratings. Ratings
 
AAA to BBB–
 
and below BBB
 
–
 
represent investment
 
grade and non-investment
 
grade ratings,
 
respectively. In
 
cases where credit ratings
from other rating agencies were
 
used, these were converted
 
to the equivalent rating
 
in S&P’s rating
 
classification.
 
US and German pension
 
plans
31.12.22
31.12.21
Fair value
Plan asset
allocation %
Fair value
Plan asset
allocation %
USD m
Quoted
in an active
market
Other
Total
Quoted
in an active
market
Other
Total
Cash and cash equivalents
7
0
7
1
11
0
11
1
Equity
Domestic
55
0
55
5
79
0
79
6
Foreign
24
0
24
2
31
0
31
2
Bonds
1
Domestic, AAA to BBB–
359
0
359
35
486
0
486
37
Domestic, below BBB–
4
0
4
0
17
0
17
1
Foreign, AAA
 
to BBB–
74
0
74
7
97
0
97
7
Foreign, below BBB–
3
0
3
0
6
0
6
0
Investment funds
Equity
 
Domestic
27
0
27
3
3
0
3
0
Foreign
33
0
33
3
56
0
56
4
Bonds
1
Domestic, AAA to BBB–
266
0
266
26
269
0
269
20
Domestic, below BBB–
109
0
109
10
147
0
147
11
Foreign, AAA
 
to BBB–
2
0
2
0
11
0
11
1
Foreign, below BBB–
5
0
5
0
2
0
2
0
Real estate
Domestic
0
11
11
1
0
9
9
1
Other
54
0
54
5
99
0
99
7
Other investments
5
1
6
1
5
1
6
0
Total fair value of plan
 
assets
1,027
12
1,039
100
1,319
10
1,329
100
1 The bond credit ratings
 
are primarily based
 
on S&P’s credit
 
ratings. Ratings
 
AAA to BBB–
 
and below BBB
 
–
 
represent investment
 
grade and non-investment
 
grade ratings,
 
respectively. In
 
cases where credit ratings
from other rating agencies were
 
used, these were converted
 
to the equivalent rating
 
in S&P’s rating
 
classification.
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
467
 
 
Note 26
 
Post-employment benefit plans
 
(continued)
 
b) Defined contribution plans
UBS
 
AG sponsors
 
a number
 
of defined
 
contribution
 
plans,
 
with the
 
most significant
 
plans
 
in the
 
US and
 
the UK.
 
UBS
AG’s obligation is limited to its contributions made in accordance with each plan, which may include direct contributions
and
 
matching
 
contributions.
 
Employer
 
contributions
 
to
 
defined
 
contribution
 
plans
 
are
 
recognized
 
as
 
an
 
expense
 
and
were USD
299
m in 2022, USD
303
m in 2021 and USD
291
m in 2020.
›
 
Refer to Note 6 for
 
more information
 
c) Related-party disclosure
UBS AG is the principal provider of banking services for the pension fund
 
of UBS AG in Switzerland. In this capacity,
 
UBS
AG is engaged to execute
 
most of the pension fund’s
 
banking activities. These activities
 
can include, but are not
 
limited
to, trading,
 
securities lending
 
and borrowing
 
and derivative transactions.
 
The non
 
-Swiss UBS AG
 
pension funds
 
do not
have a similar
 
banking relationship
 
with UBS
 
AG. During
 
2022, UBS
 
AG received USD
20
m in fees
 
for banking
 
services
from the major post-employment benefit plans (2021: USD
22
m). As of 31 December 2022, the major
 
post-employment
benefit plans held USD
253
m in UBS Group AG shares
 
(31 December 2021: USD
241
m).
›
 
Refer to the “Composition
 
and fair value
 
of plan assets”
 
table in Note
 
26a for more information
 
about fair value
 
of investments
 
in
UBS AG and UBS
 
Group AG instruments
 
held by the Swiss
 
pension fund
 
 
 
Note 27
 
Employee benefits: variable compensation
 
 
a) Plans offered
UBS
 
has several
 
share-based
 
and other
 
deferred compensation
 
plans that
 
align the
 
interests of
 
Group
 
Executive Board
(GEB) members and other employees with
 
the interests of investors.
 
Share-based
 
awards
 
are granted
 
in the
 
form
 
of notional
 
shares
 
and, where
 
permitted,
 
carry
 
a dividend
 
equivalent
 
that
 
may be
paid in
 
notional
 
shares
 
or cash.
 
Awards
 
are settled
 
by delivering
 
UBS shares
 
at vesting,
 
except in
 
jurisdictions
 
where this
 
is not
permitted
 
for
 
legal or
 
tax reasons.
 
Deferred
 
compensation
 
awards
 
are
 
generally
 
forfeitable
 
upon,
 
among
 
other
 
circumstances,
 
voluntary
 
termination
 
of
employment with UBS. These compensation plans are also designed to meet regulatory requirements and include special
provisions
 
for
 
regulated
 
employees.
 
For
 
the
 
majority
 
of
 
variable
 
compensation
 
awards
 
granted
 
under
 
such
 
plans
 
to
employees of UBS
 
AG, the grantor
 
entity is UBS Group
 
AG. Expenses associated
 
with these awards
 
are charged
 
by UBS
Group AG to UBS AG. For the
 
purpose of this Note, references to shares
 
refer to UBS Group AG
 
shares.
 
The most
 
significant
 
deferred
 
compensation
 
plans are
 
described
 
below.
›
 
Refer to Note
 
1a
 
item 4 for a description
 
of the accounting
 
policy related to
 
share-based and other
 
deferred compensation
 
plans
Mandatory deferred compensation plans
Long-Term Incentive Plan
The Long-Term
 
Incentive Plan
 
(LTIP)
 
is a
 
mandatory deferred
 
share-based
 
compensation plan
 
for GEB
 
members for
 
the
performance year 2022. For prior performance years, LTIP was granted to senior leaders of the
 
Group (i.e., GEB members
and selected senior management).
The number of notional
 
shares delivered at vesting depends on two
 
equally weighted performance metrics over a three-
year performance
 
period:
 
return
 
on
 
common
 
equity
 
tier 1
 
(CET1)
 
capital and
 
relative
 
total shareholder
 
return,
 
which
compares
 
the
 
total
 
shareholder
 
return
 
(TSR)
 
of
 
UBS
 
with
 
the
 
TSR
 
of
 
an
 
index
 
consisting
 
of
 
listed
 
Global
 
Systemically
Important
 
Banks
 
as
 
determined
 
by
 
the Financial
 
Stability
 
Board
 
(excluding
 
UBS). The
 
final
 
number
 
of
 
shares
 
vest over
three
 
years following
 
the
 
performance pe
 
riod
 
for
 
GEB
 
members,
 
and
 
cliff-vest in
 
the
 
year following
 
the
 
performance
period for selected senior management
 
.
Equity Ownership Plan / Fund
 
Ownership Plan
The Equity Ownership Plan
 
(EOP) is the
 
deferred share-based
 
compensation plan for
 
employees outside of
 
the GEB that
are subject to deferral requirements.
 
EOP awards generally
 
vest over three years.
 
Certain Asset Management
 
employees receive
 
some or
 
all of
 
their EOP
 
in the form
 
of notional
 
funds (Fund
 
Ownership
Plan or FOP,
 
previously named
 
AM EOP).
 
This plan is
 
generally delivered in
 
cash and vests
 
over three years.
 
The amount
delivered depends on the
 
value of the underlying investment funds at the
 
time of vesting.
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
468
 
 
Note 27
 
Employee benefits: variable compensation
 
(continued)
 
Deferred Contingent Ca
 
pital Plan
The
 
Deferred
 
Contingent
 
Capital
 
Plan
 
(DCCP)
 
is
 
a
 
deferred
 
compensation
 
plan
 
for
 
all employees
 
who
 
are
 
subject
 
to
deferral requirements.
 
Such employees
 
are awarded
 
notional
 
additional
 
tier 1
 
(AT1)
 
capital instruments,
 
which,
 
at the
discretion of UBS, can be settled in cash or a perpetual,
 
marketable AT1 capital instrument. DCCP
 
awards generally bear
notional
 
interest
 
paid
 
annually
 
(except
 
for
 
certain
 
regulated
 
employees)
 
and
 
vest
 
in
 
full
 
after
 
five
 
years.
 
Awards
 
are
forfeited if a viability
 
event occurs (i.e., if FINMA
 
notifies the firm
 
that the DCCP awards must be written
 
down to mitigate
the risk of
 
insolvency,
 
bankruptcy or failure
 
of UBS)
 
or if the
 
firm receives a commitment
 
of extraordinary
 
support from
the public
 
sector that
 
is necessary
 
to prevent
 
such an
 
event. DCCP
 
awards
 
are also
 
written down
 
if the
 
Group’s CET1
capital ratio falls below a
 
defined threshold. In addition, GEB members
 
forfeit
20
% of DCCP awards for each
 
loss-making
year during the vesting period.
Financial advisor variable
 
compensation
In line with market practice for US wealth management businesses,
 
the compensation for US financial advisors in Global
Wealth Management
 
consists of cash
 
compensation and
 
deferred compensation
 
awards, determined
 
using a
 
formulaic
approach based on production.
 
Cash
 
compensation
 
reflects
 
a
 
percentage
 
of
 
the
 
compensable
 
production
 
that
 
each
 
financial
 
advisor
 
generates.
Compensable production is generally based
 
on transaction revenue and investment advisory fees and may reflect further
adjustments. The percentage rate generally
 
varies based on the level of the production
 
and firm tenure.
Financial
 
advisors
 
may
 
also
 
be
 
granted
 
annual
 
deferred
 
compensation.
 
These
 
amounts
 
generally
 
vest
 
over
 
a
 
six-year
period. The annual deferred compensa
 
tion amount reflects the overall percentage
 
rate and production.
 
Cash compensation
 
and deferred compensation
 
awards may be
 
reduced for,
 
among other things,
 
errors, negligence or
carelessness, or failure to comply with the firm’s rules, standards,
 
practices and / or policies, and / or applicable laws and
regulations.
 
Financial advisors
 
may also
 
participate
 
in
 
additional
 
programs
 
to
 
support
 
promoting
 
and
 
developing
 
their business
 
or
supporting the transition of client relationships where appropriate.
 
Financial advisor compensation also includes expenses
related to compensation commitments with
 
financial advisors entered into at the time
 
of recruitment that are subject to
vesting requirements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
469
 
 
Note 27
 
Employee benefits: variable compensation
 
(continued)
 
 
b) Effect on the income statement
Effect on the income statement for the
 
financial year and future
 
periods
The table
 
below
 
provides
 
information
 
about
 
compensation
 
expenses
 
related
 
to total
 
variable compensation
 
that were
recognized in the financial year ended 31 December 2022, as well as
 
expenses that were deferred and will be recognized
in the income statement for 2023
 
and later.
 
The majority of expenses
 
deferred to 20
 
23 and later that are
 
related to the
2022 performance
 
year pertain to
 
awards
 
granted in
 
February 2023
 
.
 
The total unamortized
 
compensation expense
 
for
unvested
 
share-based
 
awards
 
granted
 
up
 
to 31
 
December 2022
 
will be
 
recognized
 
in future
 
periods
 
over
 
a weighted
average period of
2.5
 
years.
 
Variable compensation
Expenses recognized in 2022
Expenses deferred to 2023 and later
1
USD m
Related to the
2022
performance
year
Related to prior
performance
years
Total
Related to the
2022
performance
year
Related to prior
performance
years
Total
Non-deferred cash
2,012
(9)
2,003
0
0
0
Deferred compensation awards
346
561
907
582
730
1,312
of which: Equity Ownership Plan
191
225
416
294
240
534
of which: Deferred Contingent Capital Plan
123
211
334
238
395
634
of which: Long-Term Incentive
 
Plan
11
30
41
30
40
70
of which: Fund Ownership Plan
21
95
116
20
54
74
Variable compensation –
 
performance awards
2,358
552
2,910
582
730
1,312
Variable compensation –
 
financial advisors
2
3,799
709
4,508
1,290
2,652
3,942
of which: non-deferred cash
3,481
0
3,481
0
0
0
of which: deferred share-based awards
104
62
166
122
180
302
of which: deferred cash-based awards
185
215
400
588
636
1,224
of which: compensation commitments with recruited
 
financial advisors
29
432
461
580
1,836
2,416
Variable compensation –
 
other
3
146
72
217
230
189
419
Total variable compensation
6,304
1,332
7,636
4
2,101
3,571
5,672
1 Estimate as
 
of 31 December
 
2022. Actual
 
amounts to
 
be expensed
 
in future
 
periods may vary;
 
e.g., due
 
to forfeiture
 
of award
 
s.
 
2 Financial
 
advisor compensation
 
consists of cash
 
and deferred compensation
awards and is based on compensable revenues and firm tenure using a formulaic approach. It also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment
that are subject to vesting requirements.
 
3 Consists of replacement
 
payments, forfeiture
 
credits, severance
 
payments, retention
 
plan payments and interest
 
expense related to the
 
Deferred Contingent Capital
 
Plan.
 
4 Includes USD
680
m in expenses related to
 
share-based compensation
 
(performance awards:
 
USD
457
m; other variable compensation:
 
USD
56
m; financial advisor compensation:
 
USD
166
m). A further USD
80
m in
expenses related
 
to share-based
 
compensation
 
was recognized
 
within
 
other expense
 
categories
 
included in
 
Note 6
 
(salaries:
 
USD
4
m, related to
 
role-based
 
allowances; social
 
security:
 
USD
57
m; other
 
personnel
expenses: USD
19
m related to the Equity
 
Plus Plan).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
470
 
 
Note 27
 
Employee benefits: variable compensation
 
(continued)
Variable compensation
 
(continued)
Expenses recognized in 2021
Expenses deferred to 2022 and later
1
USD m
Related to the
2021
performance
year
Related to prior
performance
years
Total
Related to the
2021
performance
year
Related to prior
performance
years
Total
Non-deferred cash
2,136
(8)
2,128
0
0
0
Deferred compensation awards
389
399
788
767
606
1,373
of which: Equity Ownership Plan
175
174
350
374
180
553
of which: Deferred Contingent Capital Plan
134
151
285
290
318
608
of which: Long-Term Incentive
 
Plan
51
17
69
48
32
79
of which: Fund Ownership Plan
29
55
84
56
77
133
Variable compensation –
 
performance awards
2,525
391
2,916
767
606
1,373
Variable compensation –
 
financial advisors
2
4,175
685
4,860
1,097
2,323
3,419
of which: non-deferred cash
3,858
(6)
3,853
0
0
0
of which: deferred share-based awards
106
51
157
123
146
269
of which: deferred cash-based awards
170
202
372
311
495
806
of which: compensation commitments with recruited
 
financial advisors
41
438
479
662
1,682
2,344
Variable compensation –
 
other
3
163
33
196
210
178
388
Total variable compensation
6,863
1,109
7,973
4
2,074
3,107
5,181
1 Estimate as
 
of 31 December
 
2021. Actual amounts
 
expensed may
 
vary; e.g.,
 
due to forfeiture
 
of awards.
 
2 Financial
 
advisor compensation
 
consists of
 
cash and deferred
 
compensation awards
 
and is based
 
on
compensable revenues and
 
firm tenure using
 
a formulaic approach.
 
It also includes expenses
 
related to compensation
 
commitments
 
with financial advisors
 
entered into at
 
the time of recruitment
 
that are subject
 
to
vesting requirements.
 
3 Consists
 
of replacement
 
payments, forfeiture
 
credits,
 
severance
 
payments, retention
 
plan payments
 
and interest
 
expense related
 
to the
 
Deferred Contingent
 
Capital Plan.
 
4 Includes
USD
631
m in expenses related
 
to share-based
 
compensation (performance
 
awards: USD
419
m; other variable
 
compensation:
 
USD
56
m; financial advisor compensation:
 
USD
157
m). A further USD
77
m in expenses
related to share-based
 
compensation
 
was recognized
 
within other
 
expense categories
 
included in
 
Note 6
 
(salaries:
 
USD
5
m related to
 
role-based allowances;
 
social security:
 
USD
59
m; other
 
personnel expenses:
USD
13
m related to the Equity Plus
 
Plan).
 
Variable compensation
 
(continued)
Expenses recognized in 2020
Expenses deferred to 2021 and later
1
USD m
Related to the
2020
performance
year
Related to prior
performance
years
Total
Related to the
2020
performance
year
Related to prior
performance
years
Total
Non-deferred cash
1,948
(29)
1,920
0
0
0
Deferred compensation awards
329
704
1,034
734
277
1,011
of which: Equity Ownership Plan
131
315
446
298
67
365
of which: Deferred Contingent Capital Plan
108
339
448
271
189
459
of which: Long-Term Incentive
 
Plan
41
11
52
46
9
55
of which: Fund Ownership Plan
49
39
88
120
12
132
Variable compensation –
 
performance awards
2,278
675
2,953
734
277
1,011
Variable compensation –
 
financial advisors
2
3,378
713
4,091
822
2,284
3,106
of which: non-deferred cash
3,154
0
3,154
0
0
0
of which: deferred share-based awards
69
50
119
79
135
214
of which: deferred cash-based awards
133
183
316
271
467
738
of which: compensation commitments with recruited
 
financial advisors
22
480
502
473
1,682
2,155
Variable compensation –
 
other
3
109
92
201
176
189
364
Total variable compensation
5,765
1,481
7,246
4
1,732
2,749
4,481
1 Estimate as
 
of 31 December
 
2020. Actual amounts
 
expensed may
 
vary; e.g.,
 
due to forfeiture
 
of awards.
 
2 Financial
 
advisor compensation
 
consists of
 
cash and deferred
 
compensation awards
 
and is based
 
on
compensable revenues and
 
firm tenure using
 
a formulaic approach.
 
It also includes expenses
 
related to compensation
 
commitments
 
with financial advisors
 
entered into at
 
the time of recruitment
 
that are subject
 
to
vesting requirements.
 
3 Consists
 
of replacement
 
payments, forfeiture
 
credits,
 
severance
 
payments, retention
 
plan payments
 
and interest
 
expense related
 
to the
 
Deferred Contingent
 
Capital Plan.
 
4 Includes
USD
666
m in expenses related
 
to share-based
 
compensation (performance
 
awards: USD
498
m; other variable
 
compensation:
 
USD
49
m; financial advisor compensation:
 
USD
119
m). A further USD
88
m in expenses
related to share-based
 
compensation
 
was recognized
 
within other
 
expense categories
 
included in
 
Note 6
 
(salaries:
 
USD
4
m related to
 
role-based allowances;
 
social security:
 
USD
51
m; other
 
personnel expenses:
USD
34
m related to the Equity Plus
 
Plan).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
471
 
 
Note 27
 
Employee benefits: variable compensation
 
(continued)
 
c) Outstanding share-based compensation
 
awards
Share and performance share
 
awards
Movements in outstanding
 
share-based awards
 
granted by
 
UBS AG
 
and its
 
subsidiaries
 
to employees
 
during 2022
 
and
2021 are provided
 
in the table below.
 
Movements in outstanding
 
share-based compensation awards
 
Number of shares
2022
Weighted
 
average grant
 
date fair
 
value (USD)
Number of shares
2021
Weighted
 
average grant
 
date fair
 
value (USD)
Outstanding, at the beginning of the
 
year
295,921
15
54,557
13
Awarded during the year
358,424
19
278,756
15
Distributed during the year
(37,994)
14
(24,176)
13
Forfeited during the
 
year
(1,923)
15
(13,215)
15
Outstanding, at the end of the year
614,428
17
295,921
15
of which: shares vested for accounting purposes
174,329
116,775
 
 
The
 
total
 
carrying
 
amount
 
of
 
the
 
liability
 
related
 
to
 
cash-settled
 
share-based
 
awards
 
as
 
of
 
31 December
 
2022
 
and
31 December 2021
 
was USD
7
m and USD
3
m, respectively.
 
d) Valuation
UBS share awards
UBS measures compensation
 
expense based on
 
the average market price of
 
UBS shares
 
on the grant date as quoted
 
on
the SIX
 
Swiss Exchange,
 
taking into
 
consideration
 
post-vesting sale
 
and hedge
 
restrictions,
 
non-vesting
 
conditions
 
and
market conditions, where
 
applicable. The fair value
 
of the share
 
awards subject to post-vesting sale
 
and hedge restrictions
is discounted
 
on the basis
 
of the duration
 
of the post-vesting
 
restriction and
 
is referenced
 
to the cost
 
of purchasing
 
an
at-the-money European
 
put option
 
for the
 
term of
 
the transfer
 
restriction.
 
The grant
 
date fair
 
value of
 
notional shares
without
 
dividend
 
entitlements also
 
includes a
 
deduction
 
for the
 
present
 
value of
 
future expected
 
dividends
 
to be
 
paid
between the grant date and
 
distribution.
 
 
 
Note 28
 
Interests in subsidiaries and other entities
 
a) Interests in subsidiaries
UBS AG defines its
 
significant subsidiaries as those
 
entities that, either
 
individually or in aggregate, contribute
 
significantly
to UBS
 
AG’s financial position
 
or results of
 
operations, based
 
on a number
 
of criteria,
 
including the
 
subsidiaries’ equity
and
 
contribution
 
to
 
UBS
 
AG’s
 
total
 
assets
 
and
 
profit
 
or
 
loss
 
before
 
tax,
 
in
 
accordance
 
with
 
the
 
requirements
 
set
 
by
IFRS 12, Swiss regulations
 
and the rules of the US Securities and
 
Exchange Commission (the
 
SEC).
Individually significant subsidiaries
The table below lists UBS AG’s individually significant
 
subsidiaries as of 31
 
December 2022. Unless otherwise stated, the
subsidiaries listed below have share capital
 
consisting solely of ordinary shares
 
held entirely by UBS
 
AG and the
 
proportion
of ownership interest held
 
is equal to the voting rights held
 
by UBS AG.
 
The
 
country
 
where
 
the
 
respective registered
 
office
 
is
 
located
 
is
 
also
 
the principal
 
place
 
of
 
business.
 
UBS
 
AG
 
operates
through
 
a global branch
 
network and
 
a significant
 
proportion
 
of its business
 
activity
 
is conducted
 
outside Switzerland,
including in the UK, the US, Singapore, the Hong Kong
 
SAR and other countries. UBS
 
Europe SE has branches and offices
in
 
a
 
number
 
of
 
EU
 
Member
 
States,
 
including
 
Germany,
 
Italy, Luxembourg
 
and
 
Spain.
 
Share
 
capital is
 
provided
 
in
 
the
currency of the legally registered
 
office.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
472
 
 
Note 28
 
Interests in subsidiaries and other entities
 
(continued)
Individually significant subsidiaries
 
of UBS AG as of 31 December 2022
1
Company
Registered office
Primary business
Share capital in million
Equity interest accumulated in %
UBS Americas Holding LLC
Wilmington, Delaware, USA
Group Functions
USD
5,150.0
2
100.0
UBS Americas Inc.
Wilmington, Delaware, USA
Group Functions
USD
0.0
100.0
UBS Asset Management AG
Zurich, Switzerland
Asset Management
CHF
43.2
100.0
UBS Bank USA
Salt Lake City, Utah, USA
Global Wealth Management
USD
0.0
100.0
UBS Europe SE
Frankfurt, Germany
Global Wealth Management
EUR
446.0
100.0
UBS Financial Services Inc.
Wilmington, Delaware, USA
Global Wealth Management
USD
0.0
100.0
UBS Securities LLC
Wilmington, Delaware, USA
Investment Bank
USD
1,283.1
3
100.0
UBS Switzerland AG
Zurich, Switzerland
Personal & Corporate Banking
CHF
10.0
100.0
1 Includes direct
 
and indirect
 
subsidiaries of
 
UBS AG.
 
2 Consists
 
of common
 
share capital
 
of USD
1,000
 
and non-voting
 
preferred share
 
capital of
 
USD
5,150,000,000
.
 
3 Consists
 
of common
 
share capital
 
of
USD
100,000
 
and non-voting preferred
 
share capital of USD
1,283,000,000
.
 
Other subsidiaries
The table below
 
lists other direct
 
and indirect
 
subsidiaries of
 
UBS AG
 
that are not
 
individually significant but
 
contribute
to
 
UBS
 
AG’s
 
total
 
assets
 
and
 
aggregated
 
profit
 
before
 
tax
 
thresholds
 
and
 
are
 
thus
 
disclosed
 
in
 
accordance
 
with
requirements set by the SEC.
 
 
Other subsidiaries of UBS AG as of 31 December
 
2022
Company
Registered office
Primary business
Share capital in million
Equity interest
 
accumulated in %
UBS Asset Management (Americas) Inc.
Wilmington, Delaware, USA
Asset Management
USD
0.0
100.0
UBS Asset Management (Hong Kong) Limited
Hong Kong SAR, China
 
Asset Management
HKD
153.8
100.0
UBS Asset Management Life Ltd
London, United Kingdom
Asset Management
GBP
15.0
100.0
UBS Asset Management Switzerland AG
Zurich, Switzerland
Asset Management
CHF
0.5
100.0
UBS Business Solutions US LLC
Wilmington, Delaware, USA
Group Functions
USD
0.0
100.0
UBS Credit Corp.
Wilmington, Delaware, USA
Global Wealth Management
USD
0.0
100.0
UBS (France) S.A.
Paris, France
Global Wealth Management
EUR
197.0
100.0
UBS Fund Management (Luxembourg) S.A.
Luxembourg, Luxembourg
Asset Management
EUR
13.0
100.0
UBS Fund Management (Switzerland) AG
Basel, Switzerland
Asset Management
CHF
1.0
100.0
UBS (Monaco) S.A.
Monte Carlo, Monaco
Global Wealth Management
EUR
49.2
100.0
UBS O‘Connor LLC
Wilmington, Delaware, USA
Asset Management
USD
1.0
100.0
UBS Realty Investors LLC
Boston, Massachusetts, USA
Asset Management
USD
9.0
100.0
UBS Securities Australia Ltd
Sydney, Australia
Investment Bank
AUD
0.3
1
100.0
UBS Securities Hong Kong Limited
Hong Kong SAR, China
 
Investment Bank
HKD
3,354.2
100.0
UBS Securities Japan Co., Ltd.
Tokyo, Japan
Investment Bank
JPY
34,708.7
100.0
UBS SuMi TRUST Wealth Management Co., Ltd.
Tokyo, Japan
Global Wealth Management
JPY
5,165.0
51.0
1 Includes a nominal amount relating
 
to redeemable preference
 
shares.
 
Consolidated structured entities
Consolidated
 
structured
 
entities
 
(SEs)
 
include
 
certain
 
investment
 
funds,
 
securitization
 
vehicles
 
and
 
client
 
investment
vehicles. UBS AG has no individually significant
 
subsidiaries that are SEs.
In 2022 and
 
2021,
 
UBS AG did not
 
enter into any contractual o
 
bligation that
 
could require UBS
 
AG to provide financial
support
 
to consolidated
 
SEs. In
 
addition, UBS
 
AG did
 
not provide
 
support, financial
 
or otherwise,
 
to a
 
consolidated SE
when
 
UBS
 
AG was
 
not contractually
 
obligated
 
to do
 
so,
 
nor
 
does
 
UBS
 
AG have
 
any
 
intention
 
to do
 
so in
 
the future.
Furthermore,
 
UBS AG did not
 
provide support, financial
 
or otherwise,
 
to a previously
 
unconsolidated SE that
 
resulted in
UBS AG controlling the SE
 
during the reporting period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
473
 
 
Note 28
 
Interests in subsidiaries and other entities
 
(continued)
 
b) Interests in associates and
 
joint ventures
As of 31 December 2022
 
and 2021,
 
no associate or joint venture
 
was individually material
 
to UBS AG. Also,
 
there were
no significant
 
restrictions on
 
the ability of
 
associates or
 
joint ventures
 
to transfer funds
 
to UBS
 
AG or its
 
subsidiaries as
cash
 
dividends
 
or
 
to
 
repay
 
loans
 
or
 
advances
 
made.
 
There
 
were
 
no
 
quoted
 
market
 
prices
 
for
 
any
 
associates
 
or
 
joint
ventures of UBS AG.
In 2022, UBS AG reclassified its minority investment (
49
%) in its Japanese real estate joint venture, Mitsubishi Corp.-UBS
Realty Inc.,
 
of
 
USD
44
m
 
to
Properties
 
and
 
other
 
non-current
 
assets
 
held
 
for
 
sale
 
and
 
sold
 
the
 
shareholding.
 
The sale
resulted in
 
a pre-tax gain
 
of USD
848
m in 2022, which
 
was recognized in
Other income
. UBS
 
AG’s asset management,
wealth management and investment banking
 
businesses operating in Japan
 
were not affected by the sale.
 
Investments in associates and joint
 
ventures
USD m
2022
2021
Carrying amount at the beginning of the year
1,243
1,557
Additions
3
1
Reclassifications
1
(44)
(386)
Share of comprehensive income
(41)
150
of which: share of net profit
2
32
105
of which: share of other comprehensive income
3
(73)
45
Share of changes in retained earnings
0
1
Dividends received
(31)
(39)
Foreign currency translation
(30)
(39)
Carrying amount at the end of the year
1,101
1,243
of which: associates
1,098
1,200
of which: SIX Group AG, Zurich
4
954
1,043
of which: other associates
144
157
of which: joint ventures
3
43
of which: Mitsubishi Corp.-UBS Realty Inc.,
 
Tokyo
1
40
of which: other joint ventures
 
3
 
3
1 In 2022, UBS AG reclassified its minority investment (
49
%) in Mitsubishi Corp.-UBS Realty
 
Inc. of USD
44
m to Properties and other non-current assets held for sale and sold the
 
investment in the same year. In 2021,
UBS AG reclassified
 
its minority
 
investment (
48.8
%) in Clearstream
 
Fund Centre
 
AG of
 
USD
386
m to Properties
 
and other
 
non-current assets
 
held for sale
 
and sold the investment
 
in the same
 
year.
 
2 For 2022,
consists of USD
27
m from associates and
 
USD
5
m from joint ventures (for 2021,
 
consists of USD
79
m from associates and
 
USD
26
m from joint ventures).
 
3 For 2022, consists
 
of negative USD
73
m from associates
(for 2021, consists of USD
44
m from associates and USD
1
m from joint ventures).
 
4 In 2022, UBS AG’s
 
equity interest amounted
 
to
17.31
%. UBS AG is represented
 
on the Board of Directors.
 
c) Unconsolidated structured entities
UBS AG is considered
 
to sponsor another
 
entity if, in addition to ongoing
 
involvement with that entity,
 
it had a key role
in establishing that entity
 
or in bringing together
 
relevant
 
counterparties for a transaction facilitated
 
by that entity. During
2022,
 
UBS
 
AG
 
sponsored
 
the
 
creation
 
of
 
various
 
SEs
 
and
 
interacted with
 
a
 
number
 
of
 
non-sponsored
 
SEs,
 
including
securitization vehicles, client vehicles
 
and certain investment
 
funds, that
 
UBS AG did not consolidate as
 
of 31 December
2022 because it did not
 
control them.
Interests in unconsolidated structured
 
entities
The table below
 
presents UBS
 
AG’s interests in
 
and maximum exposure
 
to loss
 
from unconsolidated
 
SEs, as well
 
as the
total assets held by the SEs in which
 
UBS had an interest as
 
of year-end, except for investment funds
 
sponsored by third
parties, for which the carrying amount
 
of UBS’s interest as of year
 
-end has been disclosed.
 
Sponsored unconsolidated
 
structured entities in which UBS did
 
not have an interest at year-end
During 2022 and 2021, UBS
 
AG did not earn material income from sponsored
 
unconsolidated SEs in which UBS
 
did not
have an interest at year-end.
During 2022 and 2021,
 
UBS AG and third
 
parties did not transfer
 
any assets into sponsored securitization
 
vehicles created
in the year. UBS AG and third
 
parties transferred assets, alongside deposits and debt issuances (which are assets from the
perspective of the vehicle),
 
of USD
1
bn and USD
3
bn, respectively, into sponsored
 
client vehicles created in 2022
 
(2021:
USD
1
bn
 
and
 
USD
2
bn,
 
respectively).
 
For
 
sponsored
 
investment
 
funds,
 
transfers
 
arose
 
during
 
the
 
period
 
as
 
investors
invested and
 
redeemed
 
positions, thereby
 
changing the
 
overall size
 
of the
 
funds,
 
which, when
 
combined with
 
market
movements, resulted in a total closing
 
net asset value of USD
38
bn (31 December 2021: USD
46
bn).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
474
 
 
Note 28
 
Interests in subsidiaries and other entities
 
(continued)
 
Interests in unconsolidated structured
 
entities
31.12.22
USD m, except where indicated
Securitization
vehicles
Client
vehicles
Investment
funds
Total
Maximum
exposure to loss
1
Financial assets at fair value held for trading
278
81
5,884
6,243
6,243
Derivative financial instruments
3
160
115
278
278
Loans and advances to customers
119
119
119
Financial assets at fair value not held for trading
108
108
108
Financial assets measured at fair value through
 
other comprehensive income
2
Other financial assets measured at amortized cost
2
837
4,977
3
2
5,817
6,066
Total assets
1,118
4
5,219
6,228
12,565
Derivative financial instruments
1
35
763
798
2
Total liabilities
1
35
763
798
Assets held by the unconsolidated structured
 
entities in which UBS AG had an
interest (USD bn)
50
5
107
6
95
7
31.12.21
USD m, except where indicated
Securitization
vehicles
Client
vehicles
Investment
funds
Total
Maximum
exposure to loss
1
Financial assets at fair value held for trading
246
162
6,743
7,151
7,151
Derivative financial instruments
5
45
155
205
205
Loans and advances to customers
125
125
125
Financial assets at fair value not held for trading
35
100
135
135
Financial assets measured at fair value through
 
other comprehensive income
324
4,525
4,849
4,849
Other financial assets measured at amortized cost
0
3
0
1
250
Total assets
610
4
4,732
7,124
12,466
Derivative financial instruments
2
11
281
294
Total liabilities
2
11
281
294
Assets held by the unconsolidated structured
 
entities in which UBS AG had an
interest (USD bn)
30
5
81
6
103
7
1 For the purpose of this
 
disclosure, maximum exposure
 
to loss amounts do not consider
 
the risk-reducing effects
 
of collateral or other credit
 
enhancements.
 
2 Effective
 
1 April 2022, a portfolio of assets
 
previously
classified as Financial assets measured
 
at fair value through other comprehensive
 
income was reclassified to
 
Other financial assets
 
measured at amortized cost. Refer
 
to Note 1b for more information.
 
3 Includes the
carrying amount of loan commitments. The
 
maximum exposure to loss for these instruments is equal to the notional amount.
 
4 As of 31 December 2022, USD
0.1
bn of the USD
1.1
bn (31 December 2021: USD
0.1
bn
of the USD
0.6
bn) was held in Group Functions
 
– Non-core and Legacy
 
Portfolio.
 
5 Represents the principal
 
amount outstanding.
 
6 Represents the market
 
value of total assets.
 
7 Represents the
 
net asset value
of the investment funds sponsored
 
by UBS AG and the carrying
 
amount of UBS AG’s
 
interests in the investment
 
funds not sponsored
 
by UBS AG.
 
 
UBS
 
AG retains
 
or purchases
 
interests
 
in unconsolidated
 
SEs in
 
the form
 
of direct
 
investments,
 
financing,
 
guarantees,
letters
 
of
 
credit
 
and
 
derivatives,
 
as
 
well
 
as
 
through
 
management
 
contracts.
 
UBS
 
AG’s
 
maximum
 
exposure
 
to
 
loss
 
is
generally equal to
 
the carrying amount
 
of UBS AG’s
 
interest in the
 
given SE, with
 
this subject to change
 
over time with
market movements. Guarantees,
 
letters of
 
credit and credit
 
derivatives are an
 
exception, with the given
 
contract’s notional
amount, adjusted for losses
 
already incurred, representing
 
the maximum loss that UBS AG
 
is exposed to.
The
 
maximum
 
exposure
 
to
 
loss
 
disclosed
 
in
 
the
 
table
 
above
 
does
 
not
 
reflect
 
UBS
 
AG’s
 
risk
 
management
 
activities,
including
 
effects
 
from
 
financial
 
instruments
 
that
 
may
 
be
 
used
 
to
 
economically
 
hedge
 
risks
 
inherent
 
in
 
the
 
given
unconsolidated SE or risk-reducing
 
effects of collateral or other credit enhancements.
In
 
2022
 
and
 
2021,
 
UBS
 
AG
 
did
 
not
 
provide
 
support,
 
financial
 
or
 
otherwise,
 
to
 
any
 
unconsolidated
 
SE
 
when
 
not
contractually obligated to do
 
so, nor does UBS AG have
 
any
 
intention to do so in the future.
In 2022
 
and
 
2021,
 
income and
 
expenses
 
from interests
 
in unconsolidated
 
SEs primarily
 
resulted from
 
mark-to-market
movements recognized
 
in
Other net
 
income
 
from
 
financial instruments
 
measured
 
at
 
fair value
 
through
 
profit
 
or
 
loss
,
which were generally hedged with other financial instruments, as well
 
as fee and commission income received from UBS-
sponsored funds.
Interests in securitization vehicles
As
 
of
 
31 December
 
2022
 
and
 
31 December
 
2021,
 
UBS
 
AG
 
held
 
interests,
 
both
 
retained
 
and
 
acquired,
 
in
 
various
securitization vehicles that relate to
 
financing, underwriting,
 
secondary market and derivative trading
 
activities.
The numbers outlined in the table above may
 
differ from the securitization positions presented in the 31 December 2022
Pillar 3
 
Report,
 
available
 
under
 
“Pillar 3
 
disclosures”
 
at
ubs.com/investors,
 
for
 
the
 
following
 
reasons:
 
(i) exclusion
 
of
synthetic
 
securitizations
 
transacted
 
with
 
entities
 
that
 
are
 
not
 
SEs
 
and
 
transactions
 
in
 
which
 
UBS
 
AG
 
did
 
not have
 
an
interest because it did not
 
absorb any risk;
 
(ii) a different measurement
 
basis in certain
 
cases (e.g., IFRS carrying
 
amount
within
 
the
 
previous
 
table
 
compared
 
with
 
net
 
exposure
 
amount
 
at
 
default
 
for
 
Pillar 3
 
disclosures);
 
and
 
(iii) different
classification of vehicles viewed as sponsored
 
by UBS AG versus sponsored by
 
third parties.
›
 
Refer to the 31 December
 
2022 Pillar 3 Report,
 
available under “Pillar
 
3 disclosures” at
ubs.com/investors,
for more information
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
475
 
 
Note 28
 
Interests in subsidiaries and other entities
 
(continued)
Interests in client vehicles
Client vehicles are
 
established predominantly for clients to gain exposure to specific
 
assets or risk exposures. Such vehicles
may enter into derivative
 
agreements,
 
with UBS or a
 
third party,
 
to align the cash
 
flows of the entity with
 
the investor’s
intended investment objective,
 
or to introduce other
 
desired risk exposures.
 
As of
 
31 December
 
2022
 
and
 
31 December 2021,
 
UBS
 
AG retained
 
interests in
 
client
 
vehicles sponsored
 
by UBS
 
and
third parties that relate to financing,
 
secondary market and derivative trading activities
 
,
 
and to hedge structured product
offerings.
Interests in investment funds
Investment funds have a
 
collective investment objective,
 
and are
 
either passively managed,
 
so that any decision
 
-making
does not have a substantive effect
 
on variability,
 
or are actively managed
 
and investors or their governing bodies
 
do not
have substantive voting or similar rights
 
.
UBS AG holds interests
 
in a number of investment funds
 
,
 
primarily resulting from seed
 
investments or in order to
 
hedge
structured product
 
offerings.
 
In addition
 
to the
 
interests disclosed
 
in the
 
table
 
above,
 
UBS
 
AG
 
manages
 
the assets
 
of
various pooled investment funds and
 
receives fees based, in whole or
 
in part, on the net asset value of the fund and / or
the performance of the fund. The specific fee structure is
 
determined based
 
on various market factors and considers the
fund’s nature
 
and the jurisdiction of
 
incorporation,
 
as well as fee schedules
 
negotiated with
 
clients. These fee contracts
represent an
 
interest in the
 
fund,
 
as they align
 
UBS AG’s
 
exposure with
 
investors, providing
 
a variable return
 
based on
the performance
 
of the
 
entity.
 
Depending
 
on
 
the structure
 
of the
 
fund,
 
these fees
 
may be
 
collected directly
 
from the
fund’s assets and
 
/ or from the investors. Any
 
amounts due
 
are collected on a regular
 
basis and are generally
 
backed by
the fund’s
 
assets. Therefore,
 
interest in such
 
funds is not
 
represented by
 
the on-balance sheet
 
fee receivable but
 
rather
by
 
the
 
future
 
exposure
 
to
 
variable
 
fees.
 
The
 
total
 
assets
 
of
 
such
 
funds
 
were
 
USD
336
bn
 
and
 
USD
425
bn
 
as
 
of
31 December 2022 and 31 December 2021, respectively, and have been excluded from the table above. UBS AG did not
have any material exposure to
 
loss from these interests as of 31
 
December 2022 or as of 31
 
December 2021.
 
 
 
Note 29
 
Changes in organization and acquisitions and disposals
 
of subsidiaries and
 
businesses
 
Disposals of subsidiaries and businesses
Sale of UBS Swiss Financial Advisers AG
In the third quarter of 2022,
 
UBS AG completed the sale of its wholly owned
 
subsidiary UBS Swiss Financial Advisers AG
(SFA)
 
to
 
Vontobel.
 
UBS
 
AG
 
continues
 
to
 
refer
 
US
 
clients
 
that
 
want
 
to
 
have
 
discretionary
 
portfolio
 
management
 
or
investment advisory
 
services booked
 
in Switzerland to
 
Vontobel
 
SFA.
 
Upon
 
completion of
 
the sale, UBS
 
AG recorded
 
a
pre-tax gain of USD
86
m in 2022, which was recognized
 
in
Other income
.
Prior to completion of the sale, the assets and liabilities that were subject to the transaction were presented as a disposal
group held
 
for sale within
Other non-financial assets
 
and
Other non-financial liabilities
 
(31 December 2021:
 
USD
446
m
and USD
475
m, respectively).
Sale of wealth management business
 
in Spain
UBS AG
 
completed the sale
 
of its domestic
 
wealth management
 
business in
 
Spain to Singular
 
Bank in the
 
third quarter
of
 
2022.
 
The
 
sale
 
included
 
the
 
transition
 
of
 
employees,
 
client
 
relationships,
 
products
 
and
 
services
 
of
 
the
 
wealth
management business
 
of UBS
 
AG in Spain
 
and resulted
 
in a pre-tax
 
gain of
 
USD
133
m in 2022,
 
which was
 
recognized
in
Other income
.
Prior to completion of the sale, the assets and liabilities that were subject to the transaction were presented as a disposal
group held
 
for sale within
Other non-financial assets
 
and
Other non-financial liabilities
 
(31 December 2021:
 
USD
647
m
and USD
823
m, respectively).
Sale of US alternative investments administration
 
business
In the fourth quarter of 2022, UBS AG sold its US alternative investments administration business and recorded a pre-tax
gain of USD
41
m gain in
Other income
.
Sale of investments in associates and
 
joint ventures
UBS AG
 
sold its minority investment
 
(49%) in
 
its Japanese real
 
estate joint venture,
 
Mitsubishi Corp.
 
-UBS Realty Inc.,
 
in
2022.
›
 
Refer to Note 28b
 
for more information
Acquisitions of subsidiaries and
 
businesses
Wealthfront
In
 
August
 
2022,
 
UBS
 
AG
 
and
 
Wealthfront
 
mutually
 
agreed
 
to
 
terminate
 
their
 
merger
 
agreement,
 
under
 
which
Wealthfront was to be acquired by UBS Americas Inc. In the
 
third quarter of 2022, UBS AG purchased a USD
69.7
m note
convertible into Wealthfront
 
shares.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
476
 
 
Note
 
30
 
Related parties
 
UBS AG
 
defines related
 
parties as associates
 
(entities that
 
are significantly
 
influenced by
 
UBS), joint
 
ventures (entities in
which UBS shares control
 
with another party), post-employment benefit
 
plans for UBS AG employees,
 
key management
personnel, close family members of
 
key management personnel and
 
entities that are,
 
directly or indirectly,
 
controlled or
jointly controlled by key management personnel or their close family members. Key management personnel is defined as
members of the Board of Directors
 
(the BoD) and
 
Executive Board (the EB).
 
a) Remuneration of key
 
management personnel
The
 
Vice Chairman
 
of
 
the
 
BoD
 
has
 
a
 
specific management
 
employment
 
contract
 
and
 
receives pension
 
benefits
 
upon
retirement. Total
 
remuneration of the Chairman and the Vice Chairman of the BoD and all EB members is
 
included in the
table below.
 
 
Remuneration of key managem
 
ent personnel
USD m, except where indicated
31.12.22
31.12.21
31.12.20
Base salaries and other cash payments
1
26
30
31
Incentive awards – cash
2
16
17
17
Annual incentive award under DCCP
23
26
26
Employer’s contributions to retirement
 
benefit plans
2
2
2
Benefits in kind, fringe benefits (at market
 
value)
1
1
1
Share-based compensation
3
42
45
45
Total
110
122
122
Total (CHF m)
4
106
112
115
1 May include role-based
 
allowances in line with
 
market practice
 
and regulatory requirements.
 
2 The cash
 
portion may also include
 
blocked shares in line with
 
regulatory requirements.
 
3 Compensation expense
is based on
 
the share
 
price on
 
grant date
 
taking into
 
account performance
 
conditions.
 
Refer to
 
Note 27 for
 
more information.
 
For EB
 
members, share
 
-based compensation
 
for 2022,
 
2021 and
 
2020 was
 
entirely
composed of LTIP
 
awards.
 
For the Chairman
 
of the BoD,
 
the share-based compensation
 
for 2022, 2021
 
and 2020 was
 
entirely composed
 
of UBS shares.
 
4 Swiss franc
 
amounts disclosed
 
represent the respective
US dollar amounts translated
 
at the applicable performance
 
award currency exchange
 
rates (2022: USD / CHF
0.96
; 2021: USD / CHF
0.92
; 2020: USD /
 
CHF
0.94
).
 
The independent
 
members of the BoD
 
,
 
including the Chairman, do
 
not have employment
 
or service contracts with
 
UBS
AG, and thus are not entitled to benefits upon
 
termination of their service on the BoD. Payments to these individuals for
their services as independent members of
 
the BoD amounted to USD
11.1
m (CHF
10.7
m) in 2022, USD
7.5
m (CHF
6.9
m)
in 2021 and USD
7.0
m (CHF
6.6
m) in 2020.
 
b) Equity holdings of key management
 
personnel
Equity holdings of key management
 
personnel
1
31.12.22
31.12.21
Number of UBS Group AG shares held by members of the
 
BoD, EB and parties closely linked
 
to them
2
2,443,580
4,175,515
1 No options were
 
held in 2022 and
 
2021 by non-independent
 
members of the BoD
 
and any EB
 
member or any
 
of its related parties.
 
2 Excludes shares
 
granted under
 
variable compensation
 
plans with forfeiture
provisions.
 
 
Of the share totals above, no shares
 
were held by close family members of key management personnel
 
on 31 December
2022 and 31 December 2021.
 
No shares were held by
 
entities that are directly
 
or indirectly controlled or jointly controlled
by
 
key
 
management
 
personnel
 
or
 
their
 
close
 
family members
 
on
 
31 December
 
2022
 
and
 
31 December
 
2021.
 
As
 
of
31 December 2022,
 
no member of
 
the BoD or EB was the beneficial owner of more than 1% of the
 
shares in UBS Group
AG.
 
c) Loans, advances and mortgages to
 
key management
 
personnel
The non
 
-independent
 
members
 
of the
 
BoD
 
and
 
EB members
 
are granted
 
loans,
 
fixed
 
advances and
 
mortgages in
 
the
ordinary
 
course
 
of
 
business
 
on
 
substantially
 
the
 
same
 
terms
 
and
 
conditions
 
that
 
are
 
available
 
to
 
other
 
employees,
including interest rates and collateral,
 
and neither involve more than the
 
normal risk of collectability
 
nor contain any other
unfavorable features for the firm. Independent BoD members are granted loans and mortgages in the ordinary course of
business at general market conditions.
Movements in the loan, advances and
 
mortgage balances are as follows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
477
 
 
Note 30
 
Related parties (continued)
 
Loans, advances and mortgages
 
to key management personnel
1
USD m, except where indicated
2022
2021
Balance at the beginning of the year
28
31
Additions
8
11
Reductions
(7)
(15)
Balance at the end of the year
2
28
28
Balance at the end of the year (CHF m)
2, 3
26
25
1 All loans are secured loans.
 
2 There were no
 
unused uncommitted credit
 
facilities as of 31 December
 
2022 and 31 December
 
2021.
 
3 Swiss franc amounts
 
disclosed represent the respective
 
US dollar amounts
translated at the relevant year-end
 
closing exchange
 
rate.
 
d) Other related-party
 
transactions with entities controlled by
 
key management personnel
In 2022
 
and 2021, UBS AG did not enter into transactions
 
with entities that are directly or
 
indirectly controlled
 
or jointly
controlled
 
by
 
UBS
 
AG’s
 
key
 
management
 
personnel
 
or
 
their
 
close
 
family
 
members
 
and
 
as
 
of
 
31 December
 
2022,
31
 
December
 
20
21
 
and
 
31
 
December
 
20
20
,
 
there
 
were
 
no
 
outstanding
 
balances
 
related
 
to
 
such
 
transactions.
Furthermore, in 202
 
2
 
and 2021, entities controlled by key management personnel
 
did not sell any goods or provide
 
any
services to UBS
 
AG, and
 
therefore did
 
not receive any fees
 
from UBS
 
AG. UBS
 
AG also
 
did not provide
 
services to such
entities in 2022
 
and 2021, and therefore also received
 
no fees.
 
e) Transactions with associates and
 
joint ventures
Loans to and outstanding
 
receivables from associates and joint
 
ventures
USD m
2022
2021
Carrying amount at the beginning of the year
251
630
Additions
402
133
Reductions
(438)
(497)
Foreign currency translation
1
(14)
Carrying amount at the end of the year
 
217
251
of which: unsecured loans and receivables
209
243
Other transactions with associates and joint
 
ventures
As of or for the year ended
USD m
31.12.22
31.12.21
Payments to associates and joint ventures for goods
 
and services received
138
157
Fees received for services provided to
 
associates and joint ventures
4
104
Liabilities to associates and joint ventures
90
127
Commitments and contingent liabilities to associates and
 
joint ventures
7
7
›
 
Refer to Note 28
 
for an overview
 
of investments
 
in associates and
 
joint ventures
 
f) Receivables and payables
 
from / to UBS Group AG and other subsidiaries
 
of UBS Group AG
USD m
31.12.22
31.12.21
Receivables
Loans and advances to customers
2,807
1,049
Financial assets at fair value held for trading
146
187
Other financial assets measured at amortized cost
147
45
Payables
Customer deposits
2,119
2,828
Funding from UBS Group AG
56,147
57,295
Other financial liabilities measured at amortized cost
1,985
1,887
Other financial liabilities designated at fair value
1
1,796
2,340
1 Represents funding recognized
 
from UBS Group AG
 
that is designated at fair
 
value. Refer to Note 18b
 
for more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
478
 
 
Note 31
 
Invested assets and net new money
 
The following
 
disclosures
 
provide
 
a breakdown
 
of UBS
 
AG’s invested
 
assets and
 
a presentation
 
of their
 
development,
including net new money,
 
as required by the Swiss
 
Financial Market Supervisory Authority
 
(FINMA).
 
Invested assets
Invested assets consist of all client assets managed by
 
or deposited with UBS AG for investment
 
purposes. Invested assets
include managed
 
fund assets,
 
managed institutional
 
assets,
 
discretionary
 
and
 
advisory wealth
 
management portfolios,
fiduciary deposits, time deposits, savings
 
accounts, and wealth management securities
 
or brokerage accounts. All assets
held
 
for
 
purely
 
transactional
 
purposes
 
and
 
custody
-
only
 
assets,
 
including
 
corporate
 
client
 
assets
 
held
 
for
 
cash
management and transactional purposes,
 
are excluded
 
from invested assets, as
 
UBS AG only administers the
 
assets and
does not
 
offer advice on
 
how they
 
should be invested.
 
Also excluded are non
 
-bankable assets (e.g.,
 
art collections) and
deposits from third-party banks
 
for funding or trading purposes.
Discretionary assets are defined as client
 
assets that UBS AG decides how to invest.
 
Other invested assets are those where
the client ultimately
 
decides how
 
the assets are
 
invested. When
 
a single
 
product is created
 
in one business
 
division and
sold
 
in
 
another,
 
it is
 
counted
 
in both
 
the business
 
division
 
managing
 
the
 
investment and
 
the one
 
distributing
 
it.
 
This
results
 
in
 
double
 
counting
 
within
 
UBS
 
AG’s
 
total
 
invested
 
assets
 
and
 
net
 
new
 
money,
 
as
 
both
 
business
 
divisions
 
are
independently providing
 
a service to their respective clients, and both
 
add value and generate revenue.
Net new money
Net new money in a reporting
 
period is the amount
 
of invested assets entrusted to UBS
 
AG by new and existing clients,
less those withdrawn by existing clients
 
and clients who terminated relationships
 
with UBS AG.
Net
 
new
 
money is
 
calculated using
 
the direct
 
method, under
 
which inflows
 
and outflows
 
to /
 
from invested
 
assets are
determined at the client
 
level,
 
based on transactions.
 
Interest and
 
dividend income
 
from invested assets
 
are not counted as
net new money inflows. Market
 
and currency movements,
 
as well as fees, commissions
 
and interest on loans charged,
 
are
excluded from net new money, as are effects resulting
 
from any acquisition or divestment
 
of a UBS subsidiary or business.
Reclassifications between
 
invested
 
assets and
 
custody-only assets
 
as
 
a
 
result
 
of
 
a
 
change
 
in
 
service
 
level delivered
 
are
generally treated as net
 
new money flows.
 
However, where the change
 
in service level directly results from
 
an
 
externally
imposed regulation
 
or a strategic
 
decision by UBS
 
AG to exit a market
 
or specific service
 
offering,
 
the one-time net
 
effect is
reported as
Other effects
.
The Investment Bank does
 
not track invested assets and net new
 
money. However, when
 
a client is transferred from the
Investment Bank
 
to another
 
business
 
division, this
 
may produce
 
net new
 
money even
 
though
 
the client’s
 
assets were
already with UBS AG.
 
 
Invested assets and net new
 
money
As of or for the year ended
USD bn
31.12.22
31.12.21
Fund assets managed by UBS
390
419
Discretionary assets
1,440
1,705
Other invested assets
2,127
2,472
Total invested assets
1
3,957
4,596
of which: double counts
340
356
Net new money
1
68
159
1 Includes double counts.
 
Development of invested assets
USD bn
2022
2021
Total invested assets at the beginning
 
of the year
1
4,596
4,187
Net new money
68
159
Market movements
2
(595)
339
Foreign currency translation
(72)
(65)
Other effects
(40)
(24)
of which: acquisitions / (divestments)
(19)
(5)
Total invested assets at the end
 
of the year
1
3,957
4,596
1 Includes double counts.
 
2 Includes interest and
 
dividend income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
479
 
 
Note 32
 
Currency translation rates
 
The
 
following
 
table
 
shows
 
the
 
rates
 
of
 
the
 
main
 
currencies
 
used
 
to
 
translate
 
the
 
financial
 
information
 
of
 
UBS
 
AG’s
operations with a functional currency
 
other than the US dollar into
 
US dollars.
 
Closing exchange rate
Average rate
1
As of
For the year ended
31.12.22
31.12.21
31.12.22
31.12.21
31.12.20
1 CHF
1.08
1.10
1.05
1.09
1.07
1 EUR
1.07
1.14
1.05
1.18
1.15
1 GBP
1.21
1.35
1.23
1.37
1.29
100 JPY
0.76
0.87
0.76
0.91
0.94
1 Monthly income statement
 
items of operations
 
with a functional
 
currency other than
 
the US dollar
 
are translated
 
into US dollars
 
using month-end rates.
 
Disclosed average
 
rates for a
 
year represent
 
an average of
twelve month-end rates, weighted according
 
to the income and expense volumes of all operations of UBS AG with the same functional currency
 
for each month. Weighted average rates
 
for individual business divisions
may deviate from the weighted
 
average rates for
 
UBS AG.
 
 
 
 
Note 33
 
Main differences between IFRS and
 
Swiss GAAP
 
The
 
consolidated
 
financial
 
statements
 
of
 
UBS
 
AG
 
are
 
prepared
 
in
 
accordance
 
with
 
International
 
Financial
 
Reporting
Standards (IFRS). The Swiss Financial Market Supervisory Authority
 
(FINMA) requires financial groups
 
presenting financial
statements
 
under
 
IFRS
 
to
 
provide
 
a
 
narrative
 
explanation
 
of
 
the
 
main
 
differences
 
between
 
IFRS
 
and
 
Swiss
 
generally
accepted accounting principles (GAAP)
 
(the FINMA Accounting Ordinance, FINMA Circular
 
2020/1 “Accounting – banks”
and
 
the
 
Banking
 
Ordinance
 
(the
 
BO)).
 
Included
 
in
 
this
 
Note
 
are
 
the
 
significant
 
differences
 
in
 
the
 
recognition
 
and
measurement
 
between
 
IFRS
 
and
 
the
 
provisions
 
of
 
the
 
BO
 
and
 
the
 
guidelines
 
of
 
FINMA
 
governing
 
true
 
and
 
fair view
financial statement reporting
 
pursuant to Art. 25
 
to Art. 42 of the BO.
1. Consolidation
Under IFRS,
 
all entities that
 
are controll
 
ed by
 
the holding
 
entity are consolidated.
 
Under Swiss GAAP
 
controlled entities
deemed immaterial
 
to a group
 
or those
 
held only temporarily
 
are exempt
 
from consolidation,
 
but instead
 
are recorded
as participations accounted for under the equity
 
method of accounting or as financial investments measured at the
 
lower
of cost or market value.
2. Classification and measurement
 
of financial assets
Under IFRS,
 
debt instruments
 
are measured
 
at amortized
 
cost, fair value
 
through
 
other comprehensive
 
income (FVOCI)
or fair value
 
through
 
profit or loss
 
(FVTPL), depending
 
on the
 
nature of
 
the business
 
model within
 
which the
 
particular
asset is held
 
and the
 
characteristics of
 
the contractual
 
cash flows of
 
the asset.
 
Equity instruments
 
are accounted
 
for at
FVTPL by UBS. Under Swiss GAAP,
 
trading assets and derivatives are measured at FVTPL,
 
in line with IFRS. However, non-
trading debt
 
instruments are
 
generally measured
 
at amortized
 
cost, even
 
when the
 
assets are
 
managed on
 
a fair value
basis. In addition, the measurement of
 
financial assets in the form of securities depends
 
on the nature of the asset: debt
instruments not held to maturity,
 
i.e.,
 
instruments available for sale,
 
and equity instruments
 
with no permanent holding
intent,
 
are
 
classified
 
as
Financial investments
 
and
 
measured
 
at
 
the
 
lower of
 
(amortized)
 
cost
 
or
 
market value.
 
Market
value
 
adjustments
 
up
 
to
 
the
 
original
 
cost
 
amount
 
and
 
realized
 
gains
 
or
 
losses
 
upon
 
disposal
 
of
 
the
 
investment
 
are
recorded in the income statement as
Other income
 
from
 
ordinary activities.
Equity instruments with a permanent holding
intent
 
are
 
classified
 
as
 
participations
 
in
Non-consolidated
 
investments in
 
subsidiaries
 
and
 
other
 
participations
 
and
 
are
measured at cost less impairment. Impairment losses are recorded in the income
 
statement as
Impairment of investments
in non-consolidated
 
subsidiaries and
 
other participations.
 
Reversals of
 
impairments
 
up to
 
the original
 
cost amount
 
and
realized gains or losses
 
upon disposal of the investment are recorded
 
as
Extraordinary income / Extraordinary expenses
.
3. Fair value option applied
 
to financial liabilities
Under IFRS, UBS applies the fair value option to certain financial liabilities not held for trading.
 
Instruments for which the
fair value option is applied are accounted for at FVTPL. The amount of change in the fair value attributable to changes in
UBS’s own credit is presented
 
in
Other comprehensive income
 
directly within
Retained earnings
. The fair value option
 
is
applied primarily to issued
 
structured debt instruments, certain
 
non-structured debt instruments,
 
certain payables under
repurchase agreements and
 
cash collateral on securities lending agreements,
 
amounts due under unit-linked investment
contracts, and brokerage
 
payables.
Under
 
Swiss GAAP,
 
the fair
 
value option
 
can only
 
be applied
 
to structured
 
debt instruments
 
consisting
 
of a
 
debt host
contract and
 
one or
 
more embedded
 
derivatives that do
 
not relate
 
to own
 
equity.
 
Furthermore, unrealized
 
changes
 
in
fair value attributable
 
to changes
 
in UBS’s
 
own credit
 
are not
 
recognized, whereas
 
realized own
 
credit is
 
recognized
 
in
 
Net trading income
.
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
480
 
 
Note 33
 
Main differences between IFRS and
 
Swiss GAAP (continued)
4. Allowances and provisions for credit
 
losses
Swiss GAAP permit use of IFRS for
 
accounting for allowances and provisions for credit losses based on an expected credit
loss (ECL) model. UBS has chosen to apply the IFRS 9
 
ECL approach to those exposures that are in the
 
ECL scope of both
frameworks, IFRS and Swiss GAAP
 
.
For the small
 
residual exposures
 
within the
 
scope of Swiss GAAP
 
ECL requirements, which
 
are not subject to
 
ECL under
IFRS due to classification differences,
 
UBS applies alternative approaches
 
.
 
–
 
For exposures for which Pillar 1 internal ratings-based
 
models are applied to measure credit risk, ECL is determined
 
by
the regulatory expected loss (EL), with an add-on for scaling up to the
 
residual maturity of exposures maturing beyond
the next
 
12
 
months,
 
as appropriate.
 
For detailed
 
information
 
on
 
regulatory EL,
 
refer to
 
the “Risk
 
management and
control”
 
section of this report.
 
–
 
For exposures
 
for which
 
the Pillar 1
 
standardized approach
 
is used
 
to measure
 
credit risk,
 
ECL is
 
determined using
 
a
portfolio approach
 
that derives
 
a conservative
 
probability of
 
default (PD)
 
and a
 
conservative
 
loss given
 
default (LGD)
for the entire portfolio.
 
5. Hedge accounting
Under IFRS, when cash flow hedge
 
accounting is applied, the
 
fair value gain or
 
loss on the
 
effective portion of a derivative
designated as
 
a cash flow
 
hedge is
 
recognized initially
 
in equity and
 
reclassified to
 
the income
 
statement when
 
certain
conditions are
 
met.
 
When fair value
 
hedge accounting
 
is applied, the fair
 
value change of
 
the hedged item attributable
to the hedged risk is reflected in the measurement
 
of the hedged item and
 
is recognized in the income statement
 
along
with the
 
change
 
in the
 
fair value
 
of the
 
hedging
 
derivative.
 
Under
 
Swiss GAAP,
 
the
 
effective
 
portion
 
of the
 
fair value
change of a derivative instrument
 
designated as a cash flow
 
or as a fair value hedge
 
is deferred on the balance sheet
 
as
Other assets
 
or
Other liabilities
. The carrying amount
 
of the hedged item designated
 
in fair value hedges is
 
not adjusted
for fair value changes attributable to the
 
hedged risk.
6. Goodwill and intangible
 
assets
Under IFRS, goodwill acquired
 
in a business combination is not amortized but tested annually
 
for impairment. Intangible
assets
 
with
 
an
 
indefinite
 
useful
 
life
 
are
 
also
 
not
 
amortized
 
but
 
tested
 
annually
 
for
 
impairment.
 
Under
 
Swiss
 
GAAP,
goodwill and
 
intangible assets with
 
indefinite useful lives are
 
amortized over a
 
period not exceeding
 
five years, unless a
longer
 
useful
 
life,
 
which
 
may
 
not
 
exceed
10
 
years,
 
can
 
be
 
justified.
 
In
 
addition,
 
these
 
assets
 
are
 
tested
 
annually
 
for
impairment.
7. Post-employment benefit
 
plans
Swiss GAAP
 
permit the use
 
of IFRS or Swiss
 
accounting standards
 
for post-employment
 
benefit plans,
 
with the election
made on a plan-by-plan basis.
UBS
 
has
 
elected
 
to
 
apply
 
IFRS
 
(IAS 19)
 
for
 
the
 
non-Swiss
 
defined
 
benefit
 
plans
 
in
 
the
 
UBS
 
AG
 
standalone
 
financial
statements and Swiss GAAP (FER
 
16) for the Swiss pension
 
plan in the UBS AG
 
and the UBS Switzerland AG standalone
financial statements. The requirements of Swiss
 
GAAP are better aligned with the specific nature of Swiss pension plans,
which are
 
hybrid in
 
that they
 
combine elements
 
of defined
 
contribution
 
and
 
defined benefit
 
plans,
 
but are
 
treated as
defined
 
benefit
 
plans
 
under
 
IFRS.
 
Key
 
differences
 
between
 
Swiss
 
GAAP
 
and
 
IFRS
 
include
 
the
 
treatment
 
of
 
dynamic
elements, such as future salary
 
increases and future interest
 
credits on retirement savings, which are
 
not considered under
the static
 
method
 
used in
 
accordance with
 
Swiss GAAP.
 
Also, the
 
discount
 
rate used
 
to determine
 
the defined
 
benefit
obligation in accordance
 
with IFRS is
 
based on the yield
 
of high-quality corporate
 
bonds of
 
the market in
 
the respective
pension
 
plan
 
country.
 
The
 
discount
 
rate
 
used
 
in
 
accordance
 
with
 
Swiss
 
GAAP
 
(i.e.,
 
the
 
technical
 
interest
 
rate)
 
is
determined by the Pension Foundation
 
Board based on the expected returns
 
of the Board’s investment strategy.
For defined
 
benefit plans,
 
IFRS require
 
the full
 
defined benefit
 
obligation
 
net of
 
the plan
 
assets to
 
be recorded
 
on
 
the
balance sheet subject to the
 
asset ceiling rules, with
 
changes resulting from remeasurements
 
recognized directly in equity.
However, for non-Swiss defined
 
benefit plans for which IFRS accounting
 
is elected, changes
 
due to remeasurements are
recognized in the income statement of UBS
 
AG standalone under
 
Swiss GAAP.
Swiss GAAP
 
require employer
 
contributions to
 
the pension
 
fund to
 
be recognized as
 
personnel expenses
 
in the income
statement. Swiss
 
GAAP also require an
 
assessment of whether, based
 
on
 
the pension fund’s financial
 
statements prepared
in accordance
 
with Swiss
 
accounting
 
standards (FER
 
26), an
 
economic benefit
 
to, or
 
obligation of,
 
the employer
 
arises
from
 
the
 
pension
 
fund
 
that
 
is
 
recognized
 
in
 
the
 
balance
 
sheet
 
when
 
conditions
 
are
 
met.
 
Conditions
 
for
 
recording
 
a
pension asset
 
or liability would
 
be met
 
if, for
 
example, an
 
employer contribution
 
reserve is
 
available or
 
the employer
 
is
required to contribute to the
 
reduction of a pension deficit (on
 
an FER 26 basis).
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
481
 
 
Note 33
 
Main differences between IFRS and
 
Swiss GAAP (continued)
8. Leasing
Under
 
IFRS,
 
a
 
single
 
lease
 
accounting
 
model
 
applies
 
that
 
requires
 
UBS
 
to
 
record
 
a
 
right-of-use
 
(RoU)
 
asset
 
and
 
a
corresponding
 
lease liability on
 
the balance sheet
 
when UBS
 
is a lessee
 
in a
 
lease arrangement.
 
The RoU
 
asset and
 
the
lease liability
 
are recognized
 
when UBS
 
acquires control
 
of the
 
physical use
 
of the
 
asset. The
 
lease liability
 
is measured
based on the present value of
 
the lease payments over the lease term, discounted using UBS’s unsecured borrowing rate.
The RoU asset is recorded at
 
an amount equal to
 
the lease liability
 
but is adjusted for rent
 
prepayments, initial direct costs,
any costs to refurbish the leased asset and
 
/ or lease incentives received. The RoU asset is depreciated over the shorter of
the lease term or the useful life of the
 
underlying asset.
Under
 
Swiss
 
GAAP,
 
leases
 
that
 
transfer
 
substantially
 
all
 
the
 
risks
 
and
 
rewards,
 
but
 
not
 
necessarily
 
legal
 
title
 
in
 
the
underlying assets, are
 
classified as finance
 
leases. All other
 
leases are classified
 
as operating leases. Whereas finance
 
leases
are recognized on the
 
balance sheet and measured in line with
 
IFRS, operating leases are not
 
recognized on the balance
sheet,
 
with
 
payments
 
recognized
 
as
General
 
and
 
administrative expenses
 
on
 
a straight-line
 
basis
 
over
 
the
 
lease
 
term,
which
 
commences with
 
control
 
of
 
the
 
physical
 
use
 
of
 
the
 
asset.
 
Lease
 
incentives
 
are
 
treated
 
as
 
a
 
reduction
 
of
 
rental
expense and recognized
 
on a consistent basis over the lease term.
 
9. Netting of derivative assets and
 
liabilities
Under IFRS, derivative assets,
 
derivative liabilities and related cash collateral not settled to market are reported on a gross
basis
 
unless
 
the
 
restrictive
 
IFRS
 
netting
 
requirements
 
are
 
met:
 
(i) existence
 
of
 
master
 
netting
 
agreements
 
and
 
related
collateral arrangements
 
that are
 
unconditional
 
and
 
legally enforceable,
 
in both
 
the normal
 
course of
 
business
 
and the
event of default, bankruptcy or insolvency of UBS
 
and its counterparties; and (
 
ii) UBS’s intention to either settle on
 
a net
basis or to realize
 
the asset and settle
 
the liability simultaneously.
 
Under Swiss GAAP, derivative assets, derivative liabilities
and related
 
cash collateral not
 
settled to market
 
are generally
 
reported on
 
a net basis, provided
 
the master netting
 
and
the
 
related
 
collateral
 
agreements
 
are
 
legally
 
enforceable
 
in
 
the
 
event
 
of
 
default,
 
bankruptcy
 
or
 
insolvency
 
of
 
UBS’s
counterparties.
10. Negative interest
Under
 
IFRS, negative
 
interest
 
income
 
arising
 
on
 
a financial
 
asset does
 
not meet
 
the definition
 
of interest
 
income and,
therefore, negative
 
interest on
 
financial assets
 
and negative
 
interest on
 
financial liabilities
 
are presented
 
within interest
expense and
 
interest income,
 
respectively.
 
Under
 
Swiss GAAP,
 
negative interest
 
on financial
 
assets is
 
presented
 
within
interest income and negative interest
 
on financial liabilities is presented
 
within interest expense.
11. Extraordinary income
 
and expense
Certain non-recurring
 
and non
 
-operating income
 
and expense
 
items, such as
 
realized
 
gains or
 
losses from
 
the disposal
of participations, fixed and intangible assets, and reversals of
 
impairments of participations and fixed assets, are classified
as extraordinary items under Swiss
 
GAAP.
 
This distinction is not available under
 
IFRS.
p
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
482
 
 
 
Note 34
 
Supplemental guarantor information
 
required under SEC regulations
Joint liability of
 
UBS Switzerland AG
In 2015, the Personal & Corporate Banking and Wealth Management businesses booked in Switzerland were transferred
from
 
UBS
 
AG
 
to UBS
 
Switzerland
 
AG
 
through
 
an asset
 
transfer in
 
accordance
 
with
 
the
 
Swiss Merger
 
Act.
 
Under
 
the
terms of the asset transfer agreement,
 
UBS Switzerland AG
 
assumed joint liability for
 
contractual obligations of
 
UBS AG
existing
 
on
 
the asset
 
transfer date,
 
including
 
the full
 
and unconditional
 
guarantee of
 
certain registered
 
debt securities
issued by UBS AG. To
 
reflect this joint liability,
 
UBS Switzerland AG is presented
 
in a separate column as a subsidia
 
ry co-
guarantor.
The
 
joint
 
liability of
 
UBS
 
Switzerland
 
AG
 
for
 
contractual
 
obligations
 
of
 
UBS
 
AG
 
decreased
 
in
 
2022
 
by
 
USD
1.4
bn
 
to
USD
4.3
bn as of 31 December 2022.
 
The decrease substantially relates to a
 
combination of contractual maturities,
 
early
extinguishments, fair value movements
 
and foreign currency effects.
 
Supplemental guarantor consolidated
 
income statement
USD m
UBS AG
(standalone)
1
UBS
Switzerland AG
(standalone)
1
Other
 
subsidiaries
2
Elimination
entries
UBS AG
(consolidated)
For the year ended
 
31 December 2022
Interest income from financial instruments measured
 
at amortized cost and
fair value through other comprehensive
 
income
4,824
3,894
4,661
(1,575)
11,803
Interest expense from financial instruments measured
 
at amortized cost
(5,449)
(736)
(2,604)
2,093
(6,696)
Net interest income from financial instruments measured
 
at fair value through
profit or loss and other
881
546
431
(449)
1,410
Net interest income
257
3,704
2,488
68
6,517
Other net income from financial instruments measured
 
at fair value through
profit or loss
5,541
900
940
112
7,493
Fee and commission income
2,875
4,865
13,766
(660)
20,846
Fee and commission expense
(684)
(464)
(1,327)
652
(1,823)
Net fee and commission income
2,191
4,401
12,439
(8)
19,023
Other income
6,732
203
3,329
(8,382)
1,882
Total revenues
14,721
9,208
19,197
(8,210)
34,915
Credit loss expense / (release)
(17)
50
(3)
(1)
29
Personnel expenses
3,251
1,995
9,835
0
15,080
General and administrative expenses
3,374
3,258
5,029
(2,660)
9,001
Depreciation, amortization and impairment of non
 
-financial assets
871
340
744
(109)
1,845
Operating expenses
7,496
5,592
15,607
(2,769)
25,927
Operating profit / (loss) before
 
tax
7,242
3,566
3,592
(5,440)
8,960
Tax expense / (benefit)
(28)
638
1,083
151
1,844
Net profit / (loss)
7,270
2,928
2,509
(5,592)
7,116
Net profit / (loss) attributable to non-controlling
 
interests
0
0
32
0
32
Net profit / (loss) attributable to shareholders
7,270
2,928
2,477
(5,592)
7,084
1 Amounts presented
 
for UBS AG
 
standalone and
 
UBS Switzerland AG
 
standalone represent
 
IFRS standalone
 
information. Refer
 
to the UBS AG
 
standalone and
 
UBS Switzerland AG
 
standalone financial
 
statements
under “Complementary
 
financial
 
information”
 
at ubs.com/investors
 
for information
 
prepared
 
in accordance
 
with
 
Swiss
 
GAAP.
 
2
 
The
 
”Other
 
subsidiaries“
 
column
 
includes
 
consolidated
 
information
 
for the
UBS Americas Holding LLC,
 
UBS Europe SE and UBS Asset
 
Management AG significant
 
sub-groups, as well
 
as standalone information
 
for other subsidiaries.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
483
 
 
Note 34
 
Supplemental guarantor information
 
required under SEC regulations (continued)
Supplemental guarantor consolidated
 
statement of comprehensive income
USD m
UBS AG
(standalone)
1
UBS
Switzerland AG
(standalone)
1
Other
 
subsidiaries
2
Elimination
entries
UBS AG
(consolidated)
For the year ended
 
31 December 2022
Comprehensive income attributable to shareholders
Net profit / (loss)
7,270
2,928
2,477
(5,592)
7,084
Other comprehensive income
Other comprehensive income that
 
may be reclassified to the income
statement
Foreign currency translation, net
 
of tax
(114)
(197)
(506)
298
(519)
Financial assets measured at fair value through
 
other comprehensive
income, net of tax
3
(3)
0
9
0
6
Cash flow hedges, net of tax
(2,791)
(1,359)
(631)
(12)
(4,793)
Cost of hedging, net of tax
45
45
Total other comprehensive
 
income that may be reclassified to
 
the
income statement, net of tax
(2,863)
(1,555)
(1,128)
286
(5,260)
Other comprehensive income that will not
 
be reclassified to the
income statement
Defined benefit plans, net of tax
170
(112)
23
0
81
Own credit on financial liabilities designated at fair value,
 
net of tax
796
796
Total other comprehensive
 
income that will not be reclassified to the
income statement, net of tax
966
(112)
23
0
877
Total other comprehensive
 
income
(1,897)
(1,667)
(1,104)
286
(4,383)
Total comprehensive
 
income attributable to shareholders
5,373
1,261
1,373
(5,306)
2,701
Total comprehensive income attributable to
 
non-controlling interests
18
18
Total comprehensive
 
income
5,373
1,261
1,391
(5,306)
2,719
1 Amounts presented
 
for UBS AG
 
standalone and
 
UBS Switzerland
 
AG standalone
 
represent IFRS
 
standalone information.
 
Refer to the
 
UBS AG standalone
 
and UBS Switzerland
 
AG standalone
 
financial statements
under “Complementary
 
financial information”
 
at ubs.com/investors
 
for information
 
prepared in
 
accordance
 
with Swiss
 
GAAP.
 
2 The
 
”Other subsidiaries“
 
column includes
 
consolidated information
 
for the
 
UBS
Americas Holding
 
LLC, UBS
 
Europe SE
 
and UBS
 
Asset Management
 
AG significant
 
sub-groups, as
 
well as
 
standalone information
 
for other
 
subsidiaries.
 
3 Effective
 
1 April 2022,
 
a portfolio
 
of assets previously
classified as Financial assets
 
measured at fair value through
 
other comprehensive income was
 
reclassified to Other financial
 
assets measured at amortized
 
cost. Refer to Note 1b for
 
more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
484
 
 
Note 34
 
Supplemental guarantor information
 
required under SEC regulations (continued)
Supplemental guarantor consolidated
 
balance sheet
USD m
UBS AG
(standalone)
1
UBS
Switzerland AG
(standalone)
1
Other
 
subsidiaries
2
Elimination
entries
UBS AG
(consolidated)
As of 31 December 2022
Assets
Cash and balances at central banks
48,689
84,465
36,291
0
169,445
Loans and advances to banks
39,691
6,357
19,063
(50,441)
14,671
Receivables from securities financing transactions
 
measured at
amortized cost
51,493
903
34,110
(18,691)
67,814
Cash collateral receivables on derivative
 
instruments
35,594
1,221
10,074
(11,856)
35,033
Loans and advances to customers
90,168
229,861
101,231
(31,233)
390,027
Other financial assets measured at amortized cost
24,005
9,532
21,880
(2,029)
53,389
Total financial assets
 
measured at amortized cost
289,641
332,339
222,649
(114,250)
730,379
Financial assets at fair value held for trading
95,810
173
13,899
(1,848)
108,034
of which: assets pledged as collateral that may be
sold or repledged by counterparties
41,056
0
5,578
(9,892)
36,742
Derivative financial instruments
149,447
5,925
35,106
(40,368)
150,109
Brokerage receivables
9,763
0
7,814
0
17,576
Financial assets at fair value not held for trading
45,302
4,354
26,843
(17,091)
59,408
Total financial assets
 
measured at fair value through profit or
 
loss
300,321
10,453
83,661
(59,308)
335,127
Financial assets measured at
 
fair value
 
through other comprehensive income
1,953
0
286
0
2,239
Investments in subsidiaries and associates
54,323
33
0
(53,255)
1,101
Property, equipment
 
and software
5,852
1,654
4,077
(267)
11,316
Goodwill and intangible assets
213
0
6,050
5
6,267
Deferred tax assets
1,624
276
7,470
(16)
9,354
Other non-financial assets
6,930
1,768
951
4
9,652
Total assets
660,856
346,522
325,144
(227,087)
1,105,436
Liabilities
Amounts due to banks
 
41,395
37,123
51,555
(118,477)
11,596
Payables from securities financing
 
transactions measured at
amortized cost
9,425
247
13,303
(18,774)
4,202
Cash collateral payables on derivative instruments
35,528
1,518
11,191
(11,800)
36,436
Customer deposits
98,628
273,316
132,619
22,608
527,171
Funding from UBS Group AG
 
56,147
0
0
56,147
Debt issued measured at amortized cost
50,706
8,965
1
(173)
59,499
Other financial liabilities measured at amortized cost
4,903
2,221
5,554
(2,287)
10,391
Total financial liabilities measured
 
at amortized cost
296,733
323,391
214,222
(128,903)
705,442
Financial liabilities at fair value held for trading
25,059
183
5,843
(1,570)
29,515
Derivative financial instruments
153,778
6,177
35,314
(40,363)
154,906
Brokerage payables designated at
 
fair value
32,346
0
12,746
(7)
45,085
Debt issued designated at fair value
71,444
0
508
(110)
71,842
Other financial liabilities designated at fair value
17,888
0
17,074
(2,928)
32,033
Total financial liabilities measured
 
at fair value through profit or
 
loss
300,514
6,360
71,484
(44,977)
333,382
Provisions
1,904
239
1,041
(2)
3,183
Other non-financial liabilities
1,630
1,019
3,742
98
6,489
Total liabilities
600,782
331,009
290,490
(173,785)
1,048,496
Equity attributable to shareholders
60,075
15,513
34,313
(53,303)
56,598
Equity attributable to non-controlling
 
interests
342
0
342
Total equity
60,075
15,513
34,655
(53,303)
56,940
Total liabilities and
 
equity
660,856
346,522
325,144
(227,087)
1,105,436
1 Amounts presented for
 
UBS AG standalone
 
and UBS Switzerland
 
AG standalone
 
represent IFRS
 
standalone information.
 
Refer to the UBS
 
AG standalone
 
and UBS Switzerland
 
AG standalone
 
financial statements,
available under “Complementary
 
financial information”
 
at ubs.com/investors,
 
for information prepared
 
in accordance with Swiss
 
GAAP.
 
2 The ”Other subsidiaries“
 
column includes consolidated
 
information for the
UBS Americas Holding LLC,
 
UBS Europe SE and UBS Asset
 
Management AG significant
 
sub-groups, as well
 
as standalone information
 
for other subsidiaries.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
485
 
 
Note 34
 
Supplemental guarantor information
 
required under SEC regulations (continued)
Supplemental guarantor consolidated
 
statement of cash flows
USD m
UBS AG
1
UBS
Switzerland AG
1
Other
 
subsidiaries
1
UBS AG
(consolidated)
For the year ended
 
31 December 2022
Net cash flow from / (used in) operating
 
activities
17,286
(1,165)
(5,491)
10,630
Cash flow from / (used in) investing activities
Purchase of subsidiaries, associates and intangible assets
0
(3)
0
(3)
Disposal of subsidiaries, associates and intangible
 
assets
2
157
453
1,120
1,729
Purchase of property,
 
equipment and software
(562)
(292)
(624)
(1,478)
Disposal of property, equipment
 
and software
161
0
0
161
Purchase of financial assets measured at fair value through
 
other comprehensive income
(4,131)
0
(652)
(4,783)
Disposal and redemption of financial assets measured at
 
fair value through other comprehensive
income
3,188
0
896
4,084
Net (purchase) / redemption of debt securities measured
 
at amortized cost
(8,159)
(1,820)
(2,013)
(11,993)
Net cash flow from / (used in)
 
investing activities
(9,346)
(1,663)
(1,274)
(12,283)
Cash flow from / (used in) financing activities
Net short-term debt issued / (repaid)
(12,215)
(3)
(31)
(12,249)
Distributions paid on UBS AG shares
(4,200)
0
0
(4,200)
Issuance of debt designated at fair value and long
 
-term debt measured at amortized cost
3
78,866
550
41
79,457
Repayment of debt designated at fair value and
 
long-term debt measured at amortized cost
3
(66,526)
(860)
(284)
(67,670)
Net cash flows from other financing activities
(258)
0
(337)
(595)
Net activity related to group internal capital transactions
 
and dividends
5,217
(2,088)
(3,128)
0
Net cash flow from / (used in)
 
financing activities
884
(2,401)
(3,740)
(5,257)
Total
 
cash flow
Cash and cash equivalents at the beginning
 
of the year
57,895
92,799
57,061
207,755
Net cash flow from / (used in) operating, investing
 
and financing activities
8,824
(5,229)
(10,505)
(6,911)
Effects of exchange rate differences on cash and
 
cash equivalents
(3,111)
(1,338)
(1,196)
(5,645)
Cash and cash equivalents at the end
 
of the year
4
63,608
86,232
45,359
195,200
of which: cash and balances at central banks
48,607
84,465
36,291
169,363
of which: loans and advances to banks
2,957
1,550
8,821
13,329
of which: money market paper
5
12,044
216
248
12,508
1 Cash flows generally
 
represent a third
 
-party view from a
 
UBS AG consolidated
 
perspective, except
 
for Net activity
 
related to group
 
internal capital
 
transactions and
 
dividends.
 
2 Includes cash
 
proceeds from the
sales of:
 
UBS AG’s
 
shareholding in Mitsubishi Corp.
 
-UBS Realty Inc.; UBS AG
 
’s wholly owned
 
subsidiary UBS Swiss Financial
 
Advisers AG (including
 
a loan portfolio in
 
UBS Switzerland AG);
 
UBS AG’s US
 
alternative
investments administration
 
business; and
 
UBS AG’s
 
domestic wealth
 
management business
 
in Spain.
 
Also includes
 
dividends received
 
from associates.
 
3 Includes
 
funding from
 
UBS Group
 
AG to
 
UBS AG.
 
4 Balances with an
 
original maturity of
 
three months
 
or less. USD
4,253
m of cash and cash
 
equivalents were restricted.
 
5 Money
 
market paper is included
 
in the balance
 
sheet under
 
Financial assets at fair
 
value
held for trading, Financial assets
 
measured at fair value
 
through other comprehensive
 
income, Financial
 
assets at fair value
 
not held for trading and Other
 
financial assets measured at
 
amortized cost.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
486
 
 
Note 34
 
Supplemental guarantor information
 
required under SEC regulations (continued)
Supplemental guarantor consolidated
 
income statement
USD m
UBS AG
(standalone)
1
UBS
Switzerland AG
(standalone)
1
Other
 
subsidiaries
2
Elimination
entries
UBS AG
(consolidated)
For the year ended
 
31 December 2021
Interest income from financial instruments measured
 
at amortized cost and
fair value through other comprehensive
 
income
3,130
3,652
2,456
(703)
8,534
Interest expense from financial instruments measured
 
at amortized cost
(2,847)
(520)
(1,024)
1,025
(3,366)
Net interest income from financial instruments measured
 
at fair value through
profit or loss and other
1,229
254
228
(274)
1,437
Net interest income
1,512
3,386
1,660
48
6,605
Other net income from financial instruments measured
 
at fair value through
profit or loss
3,751
807
1,369
(83)
5,844
Fee and commission income
3,837
5,204
16,151
(770)
24,422
Fee and commission expense
(810)
(481)
(1,450)
755
(1,985)
Net fee and commission income
3,027
4,723
14,702
(14)
22,438
Other income
7,555
221
1,560
(8,396)
941
Total revenues
15,845
9,137
19,291
(8,445)
35,828
Credit loss expense / (release)
(65)
(98)
(10)
24
(148)
Personnel expenses
3,401
2,098
10,161
1
15,661
General and administrative expenses
4,255
3,442
4,474
(2,696)
9,476
Depreciation, amortization and impairment of non
 
-financial assets
949
285
755
(114)
1,875
Operating expenses
8,605
5,825
15,390
(2,809)
27,012
Operating profit / (loss) before
 
tax
7,305
3,409
3,910
(5,660)
8,964
Tax expense / (benefit)
203
622
1,090
(11)
1,903
Net profit / (loss)
7,102
2,788
2,820
(5,649)
7,061
Net profit / (loss) attributable to non-controlling
 
interests
0
0
29
0
29
Net profit / (loss) attributable to shareholders
7,102
2,788
2,792
(5,649)
7,032
1 Amounts presented
 
for UBS AG
 
standalone and UBS
 
Switzerland AG
 
standalone represent
 
IFRS standalone
 
information. Refer to
 
the UBS AG
 
standalone and UBS
 
Switzerland AG
 
standalone financial
 
statements
under “Complementary
 
financial information”
 
at ubs.com/investors
 
for information
 
prepared in
 
accordance
 
with Swiss
 
GAAP.
 
2 The
 
”Other subsidiaries“
 
column includes
 
consolidated
 
information
 
for the
 
UBS
Americas Holding LLC,
 
UBS Europe SE and UBS Asset
 
Management AG significant
 
sub-groups, as well
 
as standalone information
 
for other subsidiaries.
 
 
Supplemental guarantor consolidated
 
statement of comprehensive income
USD m
UBS AG
(standalone)
1
UBS
Switzerland AG
(standalone)
1
Other
 
subsidiaries
2
Elimination
entries
UBS AG
(consolidated)
For the year ended
 
31 December 2021
Comprehensive income attributable to
 
shareholders
Net profit / (loss)
7,102
2,788
2,792
(5,649)
7,032
Other comprehensive income
Other comprehensive income that
 
may be reclassified to the income
statement
Foreign currency translation, net
 
of tax
(1)
(419)
(607)
517
(510)
Financial assets measured at fair value through
 
other comprehensive
income, net of tax
0
(157)
0
(157)
Cash flow hedges, net of tax
(1,129)
(279)
(250)
(17)
(1,675)
Cost of hedging, net of tax
(26)
(26)
Total other comprehensive
 
income that may be reclassified to
 
the
income statement, net of tax
(1,155)
(699)
(1,014)
500
(2,368)
Other comprehensive income that will not
 
be reclassified to the
income statement
Defined benefit plans, net of tax
170
(135)
67
0
102
Own credit on financial liabilities designated at fair value,
 
net of tax
46
46
Total other comprehensive
 
income that will not be reclassified to the
income statement, net of tax
217
(135)
67
0
148
Total other comprehensive
 
income
(939)
(834)
(947)
500
(2,220)
Total comprehensive
 
income attributable to shareholders
6,163
1,954
1,845
(5,149)
4,813
Total comprehensive income attributable to
 
non-controlling interests
13
13
Total comprehensive
 
income
6,163
1,954
1,858
(5,149)
4,826
1 Amounts presented
 
for UBS AG
 
standalone and
 
UBS Switzerland AG
 
standalone represent
 
IFRS standalone
 
information. Refer
 
to the UBS
 
AG standalone
 
and UBS Switzerland
 
AG standalone
 
financial statements
under “Complementary
 
financial information”
 
at ubs.com/investors
 
for information
 
prepared in
 
accordance
 
with Swiss
 
GAAP.
 
2 The
 
”Other subsidiaries“
 
column includes
 
consolidated information
 
for the
 
UBS
Americas Holding LLC,
 
UBS Europe SE and UBS Asset
 
Management AG significant
 
sub-groups, as well
 
as standalone information
 
for other subsidiaries.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
487
 
 
Note 34
 
Supplemental guarantor information
 
required under SEC regulations (continued)
Supplemental guarantor consolidated
 
balance sheet
USD m
UBS AG
(standalone)
1
UBS
Switzerland AG
(standalone)
1
Other
 
subsidiaries
2
Elimination
entries
UBS AG
(consolidated)
As of 31 December 2021
Assets
Cash and balances at central banks
53,839
91,031
47,946
192,817
Loans and advances to banks
39,681
7,066
19,858
(51,245)
15,360
Receivables from securities financing transactions
 
measured at
amortized cost
50,566
5,438
40,585
(21,577)
75,012
Cash collateral receivables on derivative
 
instruments
29,939
779
10,314
(10,518)
30,514
Loans and advances to customers
101,458
230,170
93,252
(26,188)
398,693
Other financial assets measured at amortized cost
8,902
6,828
12,377
(1,870)
26,236
Total financial assets
 
measured at amortized cost
284,385
341,312
224,332
(111,397)
738,632
Financial assets at fair value held for trading
116,370
79
16,740
(2,156)
131,033
of which: assets pledged as collateral that
 
may be sold or repledged by counterparties
47,891
0
6,073
(10,568)
43,397
Derivative financial instruments
113,426
4,199
35,567
(35,047)
118,145
Brokerage receivables
14,563
7,283
(7)
21,839
Financial assets at fair value not held for trading
37,532
5,413
33,940
(17,243)
59,642
Total financial assets
 
measured at fair value through profit or
 
loss
281,891
9,691
93,531
(54,454)
330,659
Financial assets measured at
 
fair value
 
through other comprehensive income
1,007
7,837
8,844
Investments in subsidiaries and associates
54,204
37
40
(53,038)
1,243
Property, equipment
 
and software
6,501
1,456
4,048
(293)
11,712
Goodwill and intangible assets
213
6,138
28
6,378
Deferred tax assets
936
7,903
8,839
Other non-financial assets
5,757
2,424
1,656
(1)
9,836
Total assets
634,894
354,921
345,484
(219,154)
1,116,145
Liabilities
Amounts due to banks
 
34,691
33,453
50,405
(105,448)
13,101
Payables from securities financing
 
transactions measured at
amortized cost
16,711
526
9,910
(21,615)
5,533
Cash collateral payables on derivative instruments
30,260
153
11,845
(10,458)
31,801
Customer deposits
101,093
286,488
142,967
14,287
544,834
Funding from UBS Group AG
57,295
57,295
Debt issued measured at amortized cost
73,045
9,460
(73)
82,432
Other financial liabilities measured at amortized cost
4,477
2,477
5,057
(2,245)
9,765
Total financial liabilities measured
 
at amortized cost
317,572
332,556
220,184
(125,551)
744,762
Financial liabilities at fair value held for trading
25,711
372
7,652
(2,046)
31,688
Derivative financial instruments
116,588
4,053
35,731
(35,063)
121,309
Brokerage payables designated at
 
fair value
30,497
13,548
(1)
44,045
Debt issued designated at fair value
70,660
785
14
71,460
Other financial liabilities designated at fair value
11,127
24,454
(3,167)
32,414
Total financial liabilities measured
 
at fair value through profit or
 
loss
254,584
4,425
82,171
(40,263)
300,916
Provisions
2,023
297
1,153
(21)
3,452
Other non-financial liabilities
1,799
1,278
5,528
(33)
8,572
Total liabilities
575,978
338,556
309,036
(165,868)
1,057,702
Equity attributable to shareholders
58,916
16,365
36,108
(53,287)
58,102
Equity attributable to non-controlling
 
interests
340
340
Total equity
58,916
16,365
36,448
(53,287)
58,442
Total liabilities and
 
equity
634,894
354,921
345,484
(219,154)
1,116,145
1 Amounts presented for
 
UBS AG standalone
 
and UBS Switzerland
 
AG standalone
 
represent IFRS
 
standalone information.
 
Refer to the
 
UBS AG standalone
 
and UBS Switzerland
 
AG standalone
 
financial statements,
available under “Complementary
 
financial information”
 
at ubs.com/investors,
 
for information prepared
 
in accordance with Swiss
 
GAAP.
 
2 The ”Other subsidiaries“
 
column includes consolidated
 
information for the
UBS Americas Holding LLC,
 
UBS Europe SE and UBS Asset
 
Management AG significant
 
sub-groups, as well
 
as standalone information
 
for other subsidiaries.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
488
 
 
Note 34
 
Supplemental guarantor information
 
required under SEC regulations (continued)
Supplemental guarantor consolidated
 
statement of cash flows
USD m
UBS AG
1
UBS
Switzerland AG
1
Other
 
subsidiaries
1
UBS AG
(consolidated)
For the year ended
 
31 December 2021
Net cash flow from / (used in) operating
 
activities
5,714
2,131
22,718
30,563
Cash flow from / (used in) investing activities
Purchase of subsidiaries, associates and intangible assets
0
(1)
0
(1)
Disposal of subsidiaries, associates and intangible
 
assets
2
16
0
577
593
Purchase of property,
 
equipment and software
(656)
(276)
(650)
(1,581)
Disposal of property, equipment
 
and software
294
0
1
295
Purchase of financial assets measured at fair value through
 
other comprehensive income
(1,006)
0
(4,795)
(5,802)
Disposal and redemption of financial assets measured at
 
fair value through other comprehensive
income
189
0
4,863
5,052
Net (purchase) / redemption of debt securities measured at amortized
 
cost
(807)
772
(380)
(415)
Net cash flow from / (used in)
 
investing activities
(1,970)
495
(385)
(1,860)
Cash flow from / (used in) financing activities
Net short-term debt issued / (repaid)
(3,073)
(21)
0
(3,093)
Distributions paid on UBS AG shares
(4,539)
0
0
(4,539)
Issuance of debt designated at fair value and long
 
-term debt measured at amortized cost
3
97,250
1,177
193
98,619
Repayment of debt designated at fair value and
 
long-term debt measured at amortized cost
3
(78,385)
(1,093)
(320)
(79,799)
Net cash flows from other financing activities
(280)
0
20
(261)
Net activity related to group internal capital transactions
 
and dividends
5,240
(537)
(4,702)
0
Net cash flow from / (used in)
 
financing activities
16,212
(475)
(4,811)
10,927
Total
 
cash flow
Cash and cash equivalents at the beginning
 
of the year
39,400
93,342
40,689
173,430
Net cash flow from / (used in) operating, investing
 
and financing activities
19,957
2,151
17,523
39,630
Effects of exchange rate differences on cash and
 
cash equivalents
(1,462)
(2,693)
(1,151)
(5,306)
Cash and cash equivalents at the end
 
of the year
4
57,895
92,799
57,061
207,755
of which: cash and balances at central banks
53,729
91,031
47,946
192,706
of which: loans and advances to banks
3,258
1,588
8,975
13,822
of which: money market paper
5
908
179
139
1,227
1 Cash flows generally
 
represent a third
 
-party view from
 
a UBS AG consolidated
 
perspective, except
 
for Net activity
 
related to group
 
internal capital transactions
 
and dividends.
 
2 Includes cash
 
proceeds from the
sale of the minority stake in
 
Clearstream Fund Centre
 
AG and dividends
 
received from associates.
 
3 Includes funding from
 
UBS Group AG to
 
UBS AG.
 
4 Balances with an original
 
maturity of three months
 
or less.
USD
3,408
m of cash and cash equivalents were
 
restricted.
 
5 Money market
 
paper is included in the balance sheet under
 
Financial assets at fair value held
 
for trading, Financial assets measured
 
at fair value through
other comprehensive income,
 
Financial assets at fair
 
value not held for trading
 
and Other financial assets
 
measured at amortized
 
cost.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
489
 
 
Note 34
 
Supplemental guarantor information
 
required under SEC regulations (continued)
Supplemental guarantor consolidated
 
income statement
USD m
UBS AG
(standalone)
1
UBS
Switzerland AG
(standalone)
1
Other
 
subsidiaries
2
Elimination
entries
UBS AG
(consolidated)
For the year ended
 
31 December 2020
Interest income from financial instruments measured
 
at amortized cost and
fair value through other comprehensive
 
income
3,386
3,636
2,612
(818)
8,816
Interest expense from financial instruments measured
 
at amortized cost
(3,694)
(513)
(1,261)
1,134
(4,333)
Net interest income from financial instruments measured
 
at fair value through
profit or loss and other
1,103
164
311
(273)
1,305
Net interest income
794
3,288
1,662
43
5,788
Other net income from financial instruments measured
 
at fair value through
profit or loss
4,857
911
1,044
118
6,930
Fee and commission income
3,731
4,585
13,651
(984)
20,982
Fee and commission expense
(644)
(829)
(1,263)
961
(1,775)
Net fee and commission income
3,087
3,756
12,388
(23)
19,207
Other income
4,671
233
2,585
(5,941)
1,549
Total revenues
13,410
8,188
17,679
(5,803)
33,474
Credit loss expense / (release)
352
286
56
0
695
Personnel expenses
3,458
2,017
9,211
0
14,686
General and administrative expenses
3,507
3,313
4,147
(2,481)
8,486
Depreciation, amortization and impairment of non
 
-financial assets
1,013
261
750
(115)
1,909
Operating expenses
7,978
5,591
14,108
(2,596)
25,081
Operating profit / (loss) before
 
tax
5,079
2,311
3,515
(3,207)
7,699
Tax expense / (benefit)
238
444
912
(107)
1,488
Net profit / (loss)
4,840
1,868
2,603
(3,100)
6,211
Net profit / (loss) attributable to non-controlling
 
interests
0
0
15
0
15
Net profit / (loss) attributable to shareholders
4,840
1,868
2,588
(3,100)
6,196
1 Amounts presented
 
for UBS AG
 
standalone and
 
UBS Switzerland AG
 
standalone represent
 
IFRS standalone
 
information. Refer
 
to the UBS
 
AG standalone
 
and UBS Switzerland
 
AG standalone
 
financial
 
statements
under “Complementary
 
financial information”
 
at ubs.com/investors
 
for information
 
prepared in
 
accordance
 
with Swiss
 
GAAP.
 
2 The
 
”Other subsidiaries“
 
column includes
 
consolidated information
 
for the
 
UBS
Americas Holding LLC,
 
UBS Europe SE and UBS Asset
 
Management AG significant
 
sub-groups, as well
 
as standalone information
 
for other subsidiaries.
 
 
Supplemental guarantor consolidated
 
statement of comprehensive income
USD m
UBS AG
(standalone)
1
UBS
Switzerland AG
(standalone)
1
Other
 
subsidiaries
2
Elimination
entries
UBS AG
(consolidated)
For the year ended
 
31 December 2020
Comprehensive income attributable to shareholders
Net profit / (loss)
4,840
1,868
2,588
(3,100)
6,196
Other comprehensive income
Other comprehensive income that
 
may be reclassified to the income
statement
Foreign currency translation, net
 
of tax
81
1,228
690
(969)
1,030
Financial assets measured at fair value through
 
other
comprehensive income, net of tax
0
0
137
0
136
Cash flow hedges, net of tax
902
26
101
(18)
1,011
Cost of hedging, net of tax
(13)
(13)
Total other comprehensive
 
income that may be reclassified to
 
the
income statement, net of tax
971
1,254
928
(988)
2,165
Other comprehensive income that will not
 
be reclassified to the
income statement
Defined benefit plans, net of tax
(67)
(107)
40
0
(134)
Own credit on financial liabilities designated at fair value,
 
net of tax
(293)
(293)
Total other comprehensive
 
income that will not be reclassified to
the income statement, net of tax
(360)
(107)
40
0
(427)
Total other comprehensive
 
income
611
1,147
968
(988)
1,738
Total comprehensive
 
income attributable to shareholders
5,451
3,015
3,556
(4,088)
7,934
Total comprehensive income attributable to
 
non-controlling interests
36
36
Total comprehensive
 
income
5,451
3,015
3,592
(4,088)
7,970
1 Amounts presented
 
for UBS AG
 
standalone and UBS
 
Switzerland AG
 
standalone represent
 
IFRS standalone
 
information. Refer to
 
the UBS AG
 
standalone and UBS
 
Switzerland AG
 
standalone financial
 
statements
under “Complementary
 
financial information”
 
at ubs.com/investors
 
for information
 
prepared in
 
accordance
 
with Swiss
 
GAAP.
 
2 The
 
”Other subsidiaries“
 
column includes
 
consolidated
 
information
 
for the
 
UBS
Americas Holding LLC,
 
UBS Europe SE and UBS Asset
 
Management AG significant
 
sub-groups, as well
 
as standalone information
 
for other subsidiaries.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Consolidated
 
financial
 
statements
 
|
 
UBS
 
AG
 
consolidated
 
financial
 
statements
 
490
 
 
Note 34
 
Supplemental guarantor information
 
required under SEC regulations (continued)
Supplemental guarantor consolidated
 
statement of cash flows
USD m
UBS AG
1
UBS
Switzerland AG
1
Other
 
subsidiaries
1
UBS AG
(consolidated)
For the year ended
 
31 December 2020
Net cash flow from / (used in) operating
 
activities
(14,883)
24,661
26,804
36,581
Cash flow from / (used in) investing activities
Purchase of subsidiaries, associates and intangible assets
0
(3)
(43)
(46)
Disposal of subsidiaries, associates and intangible
 
assets
2
14
0
660
674
Purchase of property,
 
equipment and software
(714)
(162)
(697)
(1,573)
Disposal of property, equipment
 
and software
361
0
3
364
Purchase of financial assets measured at fair value through
 
other comprehensive income
(77)
0
(6,213)
(6,290)
Disposal and redemption of financial assets measured at
 
fair value through other comprehensive
income
79
0
4,451
4,530
Net (purchase) / redemption of debt securities measured
 
at amortized cost
(3,021)
132
(1,277)
(4,166)
Net cash flow from / (used in)
 
investing activities
(3,357)
(33)
(3,117)
(6,506)
Cash flow from / (used in) financing activities
Net short-term debt issued / (repaid)
23,828
17
0
23,845
Distributions paid on UBS AG shares
(3,848)
0
0
(3,848)
Issuance of debt designated at fair value and long
 
-term debt measured at amortized cost
3
78,867
1,057
229
80,153
Repayment of debt designated at fair value and
 
long-term debt measured at amortized cost
3
(86,204)
(776)
(118)
(87,099)
Net cash flows from other financing activities
(290)
0
(263)
(553)
Net activity related to group internal capital transactions
 
and dividends
2,984
(1,307)
(1,677)
0
Net cash flow from / (used in)
 
financing activities
15,336
(1,009)
(1,829)
12,498
Total
 
cash flow
Cash and cash equivalents at the beginning
 
of the year
39,598
62,551
17,655
119,804
Net cash flow from / (used in) operating, investing
 
and financing activities
(2,905)
23,619
21,859
42,573
Effects of exchange rate differences on cash and
 
cash equivalents
2,706
7,171
1,175
11,053
Cash and cash equivalents at the end
 
of the year
4
39,400
93,342
40,689
173,430
of which: cash and balances at central banks
34,283
91,638
32,167
158,088
of which: loans and advances to banks
4,085
1,695
8,148
13,928
of which: money market paper
5
1,032
9
374
1,415
1 Cash flows generally
 
represent a third
 
-party view from
 
a UBS AG consolidated
 
perspective, except
 
for Net activity
 
related to group
 
internal capital transactions
 
and dividends.
 
2 Includes cash
 
proceeds from the
sale of the majority stake
 
in Fondcenter
 
AG and dividends received
 
from associates.
 
3 Includes funding from
 
UBS Group AG to
 
UBS AG.
 
4 Balances with an original
 
maturity of three months
 
or less. USD
3,828
m
of cash and
 
cash equivalents
 
were restricted.
 
5 Money
 
market paper
 
is included
 
in the
 
balance sheet
 
under Financial
 
assets at
 
fair value
 
held for trading,
 
Financial assets
 
measured at
 
fair value
 
through
 
other
comprehensive income,
 
Financial assets at fair value
 
not held for trading and Other
 
financial assets measured
 
at amortized cost.
p
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022
|
 
Significant
 
regulated
 
subsidiary
 
and
 
sub
-
group
 
information
 
491
 
Significant regulated
 
subsidiary
and sub-group information
Financial and regulatory key figures for our
 
significant regulated
subsidiaries and sub-groups
 
UBS AG
(standalone)
UBS Switzerland AG
(standalone)
UBS Europe SE
(consolidated)
UBS Americas Holding
LLC
(consolidated)
All values in million, except where indicated
USD
CHF
EUR
USD
Financial and regulatory requirements
Swiss GAAP
Swiss SRB rules
Swiss GAAP
Swiss SRB rules
IFRS
EU regulatory rules
US GAAP
US Basel III rules
As of or for the year ended
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
31.12.22
31.12.21
Financial information
1
Income statement
Total operating income
2
 
15,759
16,293
8,760
8,490
1,158
1,123
13,575
14,490
Total operating expenses
 
8,505
9,712
5,458
5,472
794
800
12,351
11,925
Operating profit / (loss) before tax
 
7,253
6,581
3,302
3,018
364
323
1,224
2,565
Net profit / (loss)
 
7,157
6,548
2,707
2,452
262
227
511
1,812
Balance sheet
Total assets
 
504,767
509,851
315,657
320,656
47,978
46,411
201,777
209,718
Total liabilities
 
 
447,406
455,446
300,164
305,919
44,360
42,664
176,309
182,633
Total equity
 
57,361
54,405
15,493
14,736
3,617
3,747
25,468
27,085
Capital
3
Common equity tier 1 capital
 
53,995
 
52,818
 
12,586
 
12,609
2,441
2,764
11,367
13,002
Additional tier 1 capital
 
11,841
 
13,840
 
5,393
 
5,387
600
290
5,082
4,049
Total going concern
 
capital / Tier 1 capital
 
65,836
 
66,658
 
17,978
 
17,996
3,041
3,054
16,449
17,051
Tier 2 capital
 
2,949
 
3,129
131
125
Total capital
3,041
3,054
16,580
17,176
Total gone concern
 
loss-absorbing capacity
 
46,982
 
44,250
 
11,267
 
10,853
2,130
4
2,414
4
7,400
5
7,000
5
Total loss-absorbing capacity
 
112,818
 
110,908
 
29,245
 
28,849
5,171
5,468
23,849
24,051
Risk-weighted assets and leverage
 
ratio denominator
3
Risk-weighted assets
 
332,864
 
317,913
 
107,208
 
106,399
10,726
12,328
70,739
72,979
Leverage ratio denominator
 
575,461
 
593,868
 
332,280
 
339,788
41,818
46,660
194,003
188,130
6
Supplementary leverage ratio denominator
214,709
212,167
Capital and leverage ratios (%)
3
Common equity tier 1 capital ratio
 
16.2
 
16.6
 
11.7
 
11.9
 
22.8
 
22.4
 
16.1
 
17.8
Going concern capital ratio / Tier 1 capital
 
ratio
 
19.8
 
21.0
 
16.8
 
16.9
 
28.3
 
24.8
 
23.3
 
23.4
Total capital ratio
 
28.3
 
24.8
 
23.4
 
23.5
Total loss-absorbing capacity ratio
 
27.3
 
27.1
 
48.2
 
44.4
 
33.7
 
33.0
Tier 1 leverage ratio
 
7.3
 
6.5
 
8.5
 
9.1
Supplementary tier 1 leverage ratio
 
7.7
 
8.0
Going concern leverage ratio
 
11.4
 
11.2
 
5.4
 
5.3
Total loss-absorbing capacity leverage ratio
 
8.8
 
8.5
 
12.4
 
11.7
 
12.3
 
12.8
Gone concern capital coverage ratio
 
117.1
 
112.0
Liquidity coverage ratio
3
High-quality liquid assets (bn)
101.6
89.5
88.9
91.3
20.6
17.1
26.3
32.4
Net cash outflows (bn)
53.6
52.2
62.4
64.1
13.1
10.1
18.3
22.0
Liquidity coverage ratio (%)
191.2
7
173.2
142.4
8
142.6
158.7
170.3
143.5
147.2
Net stable funding ratio
3,9
Total available stable funding (bn)
254.4
258.0
221.7
225.2
13.9
15.4
Total required stable funding (bn)
280.2
289.2
162.3
158.1
7.9
9.0
Net stable funding ratio (%)
90.8
10
89.2
136.6
10
142.5
174.6
171.3
Other
Joint and several liability between UBS AG
 
and UBS Switzerland AG (bn)
11
4
5
1 The financial
 
information
 
disclosed
 
does not
 
represent
 
financial statements
 
under
 
the respective
 
GAAP /
 
IFRS.
 
2 The
 
total
 
operating income
 
includes credit
 
loss expense
 
/ (release).
 
3 Refer
 
to the
31 December 2022
 
Pillar 3 Report, available
 
under “Pillar 3 disclosures”
 
at ubs.com/investors,
 
for more information.
 
4 Consists
 
of positions that
 
meet the conditions
 
laid down in Art.
 
72a–b of the
 
Capital
Requirements Regulation (CRR)
 
II with regard
 
to contractual,
 
structural or legal
 
subordination.
 
5 Consists
 
of eligible long-term
 
debt that meets
 
the conditions specified
 
in 12 CFR 252.162
 
of the final TLAC
rules. Total loss
 
-absorbing capacity is the sum
 
of tier 1 capital (excluding
 
minority interest) and eligible long
 
-term debt.
 
6 The leverage ratio
 
denominator as of 31 December
 
2021 has been aligned with
 
UBS
Americas Holding
 
LLC’s reported
 
figure in the
 
FR-Y9C report,
 
which was
 
filed with the
 
Board of Governors
 
of the Federal
 
Reserve.
 
7 In the fourth
 
quarter of 2022,
 
the liquidity coverage
 
ratio (the
 
LCR) of
UBS AG was 191.2%, remaining
 
above the prudential requirements
 
communicated by FINMA.
 
8 In the fourth quarter
 
of 2022, the LCR of UBS Switzerland
 
AG, which is a Swiss SRB,
 
was 142.4%, remaining
above the prudential requirement
 
communicated by
 
FINMA in connection
 
with the Swiss Emergency
 
Plan.
 
9 For UBS Americas
 
Holding LLC consolidated,
 
the NSFR requirement
 
became effective
 
as of 1 July
2021 and related
 
disclosures will
 
come into
 
effect in
 
the second
 
quarter of
 
2023.
 
10 In
 
accordance with
 
Art. 17h
 
para. 3
 
and 4
 
of the
 
Liquidity Ordinance,
 
UBS AG standalone
 
is required
 
to maintain
 
a
minimum NSFR of at
 
least 80% without
 
taking into account
 
excess funding of
 
UBS Switzerland AG
 
and 100% after
 
taking into acco
 
unt such excess
 
funding.
 
11 Refer to the
 
“Capital, liquidity and
 
funding,
and balance sheet”
 
section of this
 
report for
 
more information about
 
the joint and
 
several liability.
 
Under certain circumstances,
 
the Swiss Banking
 
Act and
 
FINMA’s
 
Banking Insolvency
 
Ordinance authorize
FINMA to modify, extinguish
 
or convert to common equity liabilities
 
of a bank in connection with a
 
resolution or insolvency
 
of such bank.
 
 
 
 
 
Annual Report 2022
|
 
Significant
 
regulated
 
subsidiary
 
and
 
sub
-
group
 
information
 
492
 
UBS
 
Group AG
 
is a
 
holding
 
company and
 
conducts substantially
 
all of
 
its operations
 
through UBS
 
AG and
 
subsidiaries
thereof.
 
UBS Group
 
AG and
 
UBS
 
AG have
 
contributed
 
a significant
 
portion
 
of their
 
respective
 
capital
 
to, and
 
provide
substantial liquidity to, such subsidiaries.
 
Many of these subsidiaries are subject to regulations
 
requiring compliance with
minimum
 
capital,
 
liquidity
 
and
 
similar
 
requirements.
 
The
 
table
 
in
 
this
 
section
 
summarizes
 
the
 
regulatory
 
capital
components and capital ratios of
 
our significant regulated subsidiaries
 
and sub-groups
 
determined under the regulatory
framework of each subsidiary’s or sub
 
-group’s home jurisdiction.
›
 
Refer to “Capital
 
and capital ratios
 
of our significant
 
regulated subsidiaries”
 
in the “Capital,
 
liquidity and funding,
 
and balance
sheet” section of this
 
report for more information
›
 
Refer to “Note 22
 
Restricted and
 
transferred financial
 
assets” in the “Consolidated
 
financial statements”
 
section of this
 
report for
more information
 
 
Supervisory
 
authorities
 
generally
 
have
 
discretion
 
to
 
impose
 
higher
 
requirements
 
or
 
to
 
otherwise
 
limit
 
the
 
activities
 
of
subsidiaries.
 
Supervisory authorities
 
also may
 
require
 
entities to
 
measure capital
 
and leverage
 
ratios on
 
a stressed
 
basis
and may limit the
 
ability of an entity to engage in new activities
 
or take capital actions based on the results of those tests.
Following the completion of the annual Dodd–Frank Act Stress Test (DFAST) and the Comprehensive Capital Analysis and
Review (CCAR), UBS Americas Holding LLC was
 
assigned a stress capital buffer
 
(an SCB) of 4.8% (previously 7.1%) under
the SCB rule as of 1
 
October 2022, resulting in a total common
 
equity tier 1 capital requirement of
 
9.3%.
Standalone regulatory
 
information for UBS
 
AG and UBS Switzerland
 
AG, as
 
well as consolidated
 
regulatory information
for UBS Europe SE
 
and UBS Americas Holding
 
LLC, is provided in the 3
 
1
 
December 2022
 
Pillar 3 Report, available under
“Pillar 3 disclosures”
at ubs.com/investors
.
Standalone financial statements for
 
UBS Group AG, as well
 
as standalone financial
 
statements and regulatory information
for UBS AG
 
and UBS
 
Switzerland AG, are
 
available under
 
“Holding
 
company and
 
significant regulated subsidiaries
 
and
sub-groups” at
ubs.com/investors.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
494
 
UBS Group AG consolidated supplemental disclosures
required under SEC regulations
A – Introduction
The following pages
 
contain supplemental UBS
 
Group AG disclosures
 
that are required under SEC
 
regulations. UBS Group
AG’s
 
consolidated
 
financial
 
statements
 
have
 
been
 
prepared
 
in
 
accordance
 
with
 
International
 
Financial
 
Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (the IASB) and are denominated in US dollars
(USD),
 
which is
 
also the
 
functional
 
currency of:
 
UBS
 
Group
 
AG; UBS
 
AG’s Head
 
Office; UBS
 
AG
 
London
 
Branch;
 
and
UBS’s US-based operations.
 
 
B – Selected financial data
Selected information
As of or for the year ended
31.12.22
31.12.21
31.12.20
Personnel (full-time equivalents)
 
72,597
 
71,385
 
71,551
Americas
 
21,819
 
21,317
 
21,394
of which: USA
 
21,032
 
20,537
 
20,528
Asia Pacific
 
16,489
 
15,618
 
15,353
Europe, Middle East and Africa (excluding
 
Switzerland)
 
14,342
 
14,091
 
13,899
of which: UK
 
6,234
 
6,051
 
6,069
of which: rest of Europe (excluding Switzerland)
 
7,823
 
7,826
 
7,652
of which: Middle East and Africa
 
285
 
215
 
178
Switzerland
 
19,947
 
20,359
 
20,904
Registered ordinary shares (number)
1
 
3,524,635,722
 
3,702,422,995
 
3,859,055,395
Treasury shares (number)
1
 
416,909,010
 
302,815,328
 
307,477,002
Ordinary cash dividends declared per share (CHF)
2,3
 
0.47
 
0.34
Ordinary cash dividends declared per share (USD)
2,3
 
0.55
 
0.50
 
0.37
1 Refer to “UBS shares” in
 
the “Capital, liquidity
 
and funding, and
 
balance sheet” section of
 
this report for more information.
 
2 Dividends and
 
/ or distributions out
 
of the capital contribution
 
reserve are normally
approved and paid in the
 
year subsequent to
 
the reporting period.
 
Beginning in 2020,
 
dividends have been
 
declared in US dollars.
 
The Swiss franc
 
equivalent amount
 
for the 2022
 
dividend will be
 
determined after
the Annual General Meeting
 
using the exchange rate applicable
 
on that date and is therefore
 
not provided in this table.
 
3 Refer to “Statement of
 
proposed appropriation of total profit
 
and dividend distribution
 
out
of total profit and capital contribution
 
reserve” in the “Standalone financial
 
statements” section
 
of this report for more information.
 
 
 
Dividends received from investments in
 
subsidiaries
In 2022,
 
UBS Group AG
 
received dividends of
 
USD 4,373m (2021:
 
USD 4,672m; 2020: USD 3,853m) from
 
its subsidiaries.
Dividends
 
disclosed
 
have been
 
translated to
 
US dollars
 
from the
 
functional currency
 
of the
 
entity paying
 
the dividend,
using the closing exchange
 
rate of the month the dividend was
 
received.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
495
 
 
Balance sheet data
USD m
31.12.22
31.12.21
31.12.20
Assets
Cash and balances at central banks
 
169,445
 
192,817
 
158,231
Loans and advances to banks
 
14,792
 
15,480
 
15,444
Receivables from securities financing transactions
 
at amortized cost
 
67,814
 
75,012
 
74,210
Cash collateral receivables on derivative
 
instruments
 
35,032
 
30,514
 
32,737
Loans and advances to customers
 
387,220
 
397,761
 
379,528
Other financial assets measured at amortized cost
53,264
26,209
27,194
Total financial assets
 
measured at amortized cost
 
727,568
 
737,794
 
687,345
Financial assets at fair value held for trading
 
107,866
 
130,821
 
125,397
of which: assets pledged as collateral that may be
 
sold or repledged by counterparties
 
36,742
 
43,397
 
47,098
Derivative financial instruments
 
150,108
 
118,142
 
159,617
Brokerage receivables
 
17,576
 
21,839
 
24,659
Financial assets at fair value not held for trading
 
59,796
 
60,080
 
80,364
Total financial assets
 
measured at fair value through profit or
 
loss
 
335,347
 
330,882
 
390,037
Financial assets measured at
 
fair value through other comprehensive
 
income
 
2,239
 
8,844
 
8,258
Investments in associates
 
1,101
 
1,243
 
1,557
Property, equipment
 
and software
 
12,288
 
12,888
 
13,109
Goodwill and intangible assets
 
6,267
 
6,378
 
6,480
Deferred tax assets
 
9,389
 
8,876
 
9,212
Other non-financial assets
 
10,166
 
10,277
 
9,768
Total assets
 
1,104,364
 
1,117,182
 
1,125,765
Liabilities
Amounts due to banks
 
11,596
13,101
11,050
Payables from securities financing
 
transactions at amortized cost
4,202
5,533
6,321
Cash collateral payables on derivative instruments
36,436
31,798
37,312
Customer deposits
525,051
542,007
524,605
Debt issued measured at amortized cost
114,621
139,155
139,232
Other financial liabilities measured at amortized cost
9,575
9,001
9,729
Total financial liabilities measured
 
at amortized cost
701,481
740,595
728,250
Financial liabilities at fair value held for trading
29,515
31,688
33,595
Derivative financial instruments
154,906
121,309
161,102
Brokerage payables designated at
 
fair value
45,085
44,045
38,742
Debt issued designated at fair value
73,638
73,799
61,243
Other financial liabilities designated at fair value
30,237
30,074
30,387
Total financial liabilities measured
 
at fair value through profit or
 
loss
333,381
300,916
325,069
Provisions
3,243
3,518
2,828
Other non-financial liabilities
9,040
11,151
9,854
Total liabilities
1,047,146
1,056,180
1,066,000
Equity attributable to shareholders
56,876
60,662
59,445
Equity attributable to non-controlling
 
interests
342
340
319
Total equity
57,218
61,002
59,765
Total liabilities and
 
equity
1,104,364
1,117,182
1,125,765
 
 
C – Information about the
 
company
Property, plant and equipment
As of 31 December
 
2022,
 
UBS operated in about 677
 
business and banking locations worldwide, of which
 
approximately
33% were in Switzerland
 
,
 
48% in the Americas, 9% in the rest
 
of Europe, the Middle
 
East and Africa, and 10%
 
in Asia
Pacific. Of
 
the business
 
and
 
banking
 
locations in
 
Switzerland,
 
23%
 
were owned
 
directly by
 
UBS,
 
with the
 
remainder,
along with most of UBS’s offices outside Switzerland, being held under commercial leases.
 
These premises are subject to
continuous maintenance and upgrading
 
and are considered
 
suitable and adequate
 
for
 
current and anticipated
 
operations.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
496
 
D – Information required by
 
Subpart 1400 of Regulation S-K
Selected statistical information
The tables
 
below set
 
forth selected
 
statistical information
 
regarding
 
the Group’s
 
banking operations
 
extracted from
 
its
financial statements. Unless otherwise indicated, average balances
 
for the years ended 31 December 2022,
 
31 December
2021
 
and 31
 
December
 
2020
 
are
 
calculated
 
from
 
monthly
 
data.
 
Unless
 
otherwise
 
indicated,
 
the
 
distinction
 
between
domestic (Swiss) and foreign
 
(non-Swiss) is generally based
 
on the booking location.
 
 
 
 
Average balances and interest
 
rates
The tables below set forth average interest-earning assets and average interest-bearing
 
liabilities, along with the average
yield, for 2022,
 
2021 and 2020.
 
Refer to “Note 3
 
Net interest income
 
and other net
 
income from financial
 
instruments
measured at fair value through
 
profit or loss” in the “Co
 
nsolidated financial statements”
 
section of this report for
 
more
information about interest income and
 
interest expense.
 
For the year ended
31.12.22
31.12.21
31.12.20
USD m, except where indicated
Average
 
balance
Interest
 
income
Average
 
yield (%)
Average
 
balance
Interest
 
income
Average
 
yield (%)
Average
 
balance
Interest
 
income
Average
 
yield (%)
Assets
Balances at central banks
Domestic
 
99,777
 
92
 
0.1
 
98,804
 
(105)
 
(0.1)
 
90,234
 
(112)
 
(0.1)
Foreign
 
88,267
 
595
 
0.7
 
71,529
 
(31)
 
0.0
 
51,611
 
7
 
0.0
Loans and advances to banks
Domestic
 
2,966
 
50
 
1.7
 
3,158
 
40
 
1.3
 
2,930
 
43
 
1.5
Foreign
 
12,345
 
8
 
0.1
 
13,074
 
12
 
0.1
 
12,089
 
31
 
0.3
Receivables from securities financing transactions
 
measured
at amortized cost
1
Domestic
 
6,431
 
30
 
0.5
 
9,435
 
(28)
 
(0.3)
 
4,746
 
8
 
0.2
Foreign
 
70,942
 
1,105
 
1.6
 
79,297
 
234
 
0.3
 
92,098
 
551
 
0.6
Loans and advances to customers
Domestic
 
223,970
 
3,187
 
1.4
 
228,070
 
3,211
 
1.4
 
210,971
 
3,014
 
1.4
Foreign
 
160,509
 
4,829
 
3.0
 
160,902
 
2,700
 
1.7
 
138,515
 
3,139
 
2.3
Financial assets at fair value
1,2
Domestic
 
5,892
 
50
 
0.8
 
10,006
 
11
 
0.1
 
12,455
 
40
 
0.3
Foreign
 
151,504
 
2,113
 
1.4
 
169,267
 
1,203
 
0.7
 
192,251
 
1,826
 
0.9
Other interest-earning assets
Domestic
 
8,226
 
125
 
1.5
 
7,477
 
121
 
1.6
 
8,064
 
136
 
1.7
Foreign
 
63,107
 
858
 
1.4
 
47,040
 
298
 
0.6
 
45,442
 
386
 
0.8
Total interest-earning
 
assets
3
 
893,936
 
13,043
 
1.5
 
898,059
 
7,666
 
0.9
 
861,406
 
9,068
 
1.1
Net interest income on swaps
 
1,804
 
1,552
 
1,134
Interest income on off-balance sheet securities and other
 
677
 
472
 
386
Interest income and average interest
 
-earning assets
 
893,936
 
15,525
4
 
1.7
 
898,059
 
9,689
4
 
1.1
 
861,406
 
10,588
4
 
1.2
Non-interest-earning assets
5
 
299,488
 
298,224
 
310,129
Total average assets
 
1,193,424
 
1,196,284
 
1,171,535
1 Reverse repurchase
 
agreements are
 
presented on a
 
gross basis and
 
therefore, for
 
the purpose
 
of this disclosure,
 
do not reflect
 
the effect
 
of netting permitted under
 
IFRS.
 
2 Includes financial
 
assets at fair
 
value
held for trading,
 
financial
 
assets at
 
fair value
 
not held for
 
trading,
 
financial assets
 
at fair
 
value through
 
other comprehensive
 
income and
 
brokerage
 
receivables.
 
3 Non-taxable
 
positions and
 
amounts were
 
not
material for the years presented.
 
4 For the purpose of
 
this disclosure,
 
negative interest income on assets
 
is presented as a reduction
 
to interest income,
 
while in the consolidated income
 
statement negative
 
interest
income on assets
 
is presented
 
as interest expense.
 
Refer to
 
Note 3 Net
 
interest income
 
and other
 
net income from
 
financial instruments
 
measured at fair
 
value through
 
profit or loss
 
in the “Consolidated
 
financial
statements” section of this report
 
for more information.
 
5 Mainly includes derivative
 
financial instruments,
 
equity instruments at
 
fair value held for trading
 
and financial assets for unit
 
-linked investment
 
contracts.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
497
 
 
Average balances and interest
 
rates (continued)
For the year ended
31.12.22
31.12.21
31.12.20
USD m, except where indicated
Average
balance
Interest
 
expense
Average
 
interest
 
rate (%)
Average
balance
Interest
 
expense
Average
 
interest
 
rate (%)
Average
 
balance
Interest
 
expense
Average
 
interest
 
rate (%)
Liabilities and equity
Amount due to banks
Domestic
 
10,733
 
3
 
0.0
 
10,369
 
(32)
 
(0.3)
 
8,097
 
(9)
 
(0.1)
Foreign
 
3,255
 
43
 
1.3
 
2,897
 
18
 
0.6
 
3,169
 
26
 
0.8
Payables from securities financing
 
transactions measured at
amortized cost
1
Domestic
 
3,357
 
40
 
1.2
 
4,786
 
1
 
0.0
 
3,888
 
6
 
0.2
Foreign
 
13,351
 
289
 
2.2
 
14,161
 
209
 
1.5
 
18,793
 
174
 
0.9
Customer deposits
Domestic
 
272,926
 
(82)
 
0.0
 
289,096
 
(290)
 
(0.1)
 
263,619
 
(173)
 
(0.1)
of which: demand deposits
 
147,903
 
(149)
 
(0.1)
 
160,019
 
(273)
 
(0.2)
 
137,599
 
(166)
 
(0.1)
of which: savings and sweep deposits
 
 
119,685
 
6
 
0.0
 
126,290
 
4
 
0.0
 
121,793
 
3
 
0.0
of which: time deposits
 
5,337
 
60
 
1.1
 
2,786
 
(20)
 
(0.7)
 
4,227
 
(9)
 
(0.2)
Foreign
 
246,072
 
1,819
 
0.7
 
232,165
 
107
 
0.0
 
214,785
 
552
 
0.3
of which: demand deposits
 
66,987
 
120
 
0.2
 
82,226
 
(31)
 
0.0
 
64,957
 
(6)
 
0.0
of which: savings and sweep deposits
 
 
111,130
 
578
 
0.5
 
99,847
 
81
 
0.1
 
71,341
 
194
 
0.3
of which: time deposits
 
67,955
 
1,121
 
1.7
 
50,092
 
58
 
0.1
 
78,488
 
363
 
0.5
Commercial paper
Domestic
 
1
 
0
 
0.0
 
292
 
0
 
0.0
 
130
 
0
 
(0.3)
Foreign
 
20,452
 
256
 
1.3
 
24,461
 
33
 
0.1
 
17,098
 
120
 
0.7
Other short-term debt issued measured at amortized cost
Domestic
 
366
 
4
 
1.2
 
13
 
0
 
(0.1)
 
10
 
0
 
0.0
Foreign
 
11,927
 
124
 
1.0
 
18,473
 
37
 
0.2
 
16,989
 
147
 
0.9
Long-term debt issued measured at amortized cost
Domestic
 
67,462
 
1,946
 
2.9
 
67,916
 
1,789
 
2.6
 
64,899
 
1,988
 
3.1
Foreign
 
22,929
 
439
 
1.9
 
27,820
 
491
 
1.8
 
27,100
 
581
 
2.1
Financial liabilities at fair value (excluding
 
debt issued
designated at fair value)
1,2
Domestic
 
291
 
11
 
3.7
 
421
 
3
 
0.8
 
700
 
2
 
0.3
Foreign
 
139,657
 
1,392
 
1.0
 
137,268
 
13
 
0.0
 
145,398
 
324
 
0.2
Debt issued designated at fair value
Domestic
 
9,278
 
127
 
1.4
 
9,905
 
48
 
0.5
 
4,376
 
35
 
0.8
Foreign
 
63,470
 
1,283
 
2.0
 
60,388
 
429
 
0.7
 
56,442
 
801
 
1.4
Other interest-bearing liabilities
Domestic
 
2,883
 
14
 
0.5
 
2,884
 
(7)
 
(0.2)
 
3,333
 
(6)
 
(0.2)
Foreign
 
38,938
 
432
 
1.1
 
34,943
 
105
 
0.3
 
38,606
 
191
 
0.5
Total interest-bearing
 
liabilities
 
927,347
 
8,142
 
0.9
 
938,259
 
2,954
 
0.3
 
887,433
 
4,759
 
0.5
Swap interest on hedged debt
 
issued and other swaps
 
40
 
(765)
 
(608)
Interest expense on off-balance sheet securities and other
 
723
 
795
 
576
Interest expense and average interest
 
-bearing liabilities
 
927,347
 
8,904
3
 
1.0
 
938,259
 
2,985
3
 
0.3
 
887,433
 
4,726
3
 
0.5
Non-interest-bearing liabilities
4
 
208,049
 
198,130
 
226,388
Total liabilities
 
1,135,396
 
1,136,389
 
1,113,820
Total equity
 
58,028
 
59,895
 
57,715
Total average liabilities
 
and equity
 
1,193,424
 
1,196,284
 
1,171,535
Net interest income
 
6,621
 
6,705
 
5,862
Net yield on interest-earning
 
assets
 
0.7
 
0.7
 
0.7
1 Repurchase agreements are presented
 
on a gross basis and therefore,
 
for the purpose of this disclosure,
 
do not reflect the effect
 
of netting permitted under IFRS.
 
2 Includes financial liabilities
 
at fair value held for
trading, other financial
 
liabilities designated
 
at fair value and
 
brokerage payables
 
designated at fair value.
 
3 For the
 
purpose of this disclosure,
 
negative interest expense
 
on liabilities is presented
 
as a reduction to
interest expense, while in the consolidated
 
income statement negative interest income
 
on liabilities is presented as interest income.
 
Refer to Note 3 Net interest income and
 
other net income from financial instruments
measured at fair
 
value through profit
 
or loss in the “Consolidated financial
 
statements” section of this report
 
for more information.
 
4 Mainly includes
 
derivative financial instruments,
 
equity instruments at fair value
held for trading and financial
 
liabilities related
 
to unit-linked investment
 
contracts.
 
The percentage of total average interest
 
-earning assets attributable to foreign
 
activities was 61
 
%
 
for 2022 (2021:
 
60%;
2020:
 
62%).
 
The percentage
 
of
 
total average
 
interest-bearing
 
liabilities
 
attributable
 
to
 
foreign
 
activities was
 
60%
 
for
2022 (2021:
 
59%;
 
2020:
 
61%). All
 
assets and liabilities
 
are translated into US
 
dollars at uniform
 
month-end rates. Interest
income and expense are translated
 
at monthly average rates.
Average rates earned and paid
 
on assets and liabilities
 
can change from period to
 
period, based on the
 
changes in interest
rates in
 
general, but
 
are also
 
affected by
 
changes
 
in the
 
currency mix
 
included
 
in the
 
assets and
 
liabilities. Tax-exempt
income is
 
not recorded
 
on a
 
tax-equivalent basis.
 
For all
 
three years
 
presented,
 
tax-exempt income
 
is considered
 
to be
insignificant and the effect from such income
 
is therefore negligible.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
498
 
 
Analysis of changes in interest income and
 
expense
The tables
 
below provide
 
information, by categories
 
of interest-
 
earning assets and
 
interest-bearing liabilities,
 
about the
changes in
 
interest income
 
and expense
 
due to
 
changes in
 
volume and
 
interest
 
rates for
 
the year
 
ended 31
 
December
2022 compared with the year ended 31 December 2021,
 
and for the year ended 31 December 2021 compared with the
year ended
 
31 December
 
2020.
 
The change
 
in average
 
volume
 
represents
 
the change
 
in the
 
current average
 
balance
compared to
 
the average
 
balance from
 
the prior
 
year with respect
 
to the average
 
rate of
 
the prior
 
year.
 
The change
 
in
average rate represents the
 
difference between the net change in
 
interest income and expense and
 
the change in
 
average
volume.
 
 
2022 compared with 2021
2021 compared with 2020
Increase / (decrease)
due to changes in
Increase / (decrease)
due to changes in
USD m
Average
 
volume
Average
interest rate
Net
change
Average
 
volume
Average
 
interest rate
Net
change
Interest income from interest
 
-earning assets
Balances at central banks
Domestic
 
(1)
 
198
 
197
 
(9)
 
16
 
7
Foreign
 
0
 
626
 
626
 
0
 
(38)
 
(38)
Loans and advances to banks
Domestic
 
(2)
 
12
 
10
 
3
 
(6)
 
(3)
Foreign
 
(1)
 
(3)
 
(4)
 
3
 
(23)
 
(20)
Receivables from securities financing transactions
 
measured at amortized cost
Domestic
 
9
 
49
 
58
 
9
 
(44)
 
(35)
Foreign
 
(25)
 
896
 
871
 
(77)
 
(240)
 
(317)
Loans and advances to customers
Domestic
 
(57)
 
34
 
(23)
 
239
 
(42)
 
197
Foreign
 
(7)
 
2,135
 
2,128
 
515
 
(954)
 
(439)
Financial assets at fair value
Domestic
 
(4)
 
43
 
39
 
(7)
 
(22)
 
(29)
Foreign
 
(124)
 
1,034
 
910
 
(207)
 
(416)
 
(623)
Other interest-earning assets
Domestic
 
12
 
(8)
 
4
 
(10)
 
(5)
 
(15)
Foreign
 
102
 
458
 
560
 
13
 
(101)
 
(88)
Interest income
Domestic
 
(43)
 
328
 
285
 
225
 
(103)
 
122
Foreign
 
(55)
 
5,147
 
5,092
 
247
 
(1,771)
 
(1,524)
Total interest income
 
from interest-earning assets
 
(98)
 
5,475
 
5,377
 
472
 
(1,874)
 
(1,402)
Net interest income on swaps
 
253
 
418
Interest income on off-balance sheet securities and other
 
205
 
86
Total interest income
 
5,836
 
(899)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
499
 
 
Analysis of changes in interest income and
 
expense (continued)
2022 compared with 2021
2021 compared with 2020
Increase / (decrease)
due to changes in
Increase / (decrease)
due to changes in
USD m
Average
 
volume
Average
interest rate
Net
change
Average
 
volume
Average
 
interest rate
Net
change
Interest expense on interest-bearing
 
liabilities
Amount due to banks
Domestic
 
(1)
 
36
 
35
 
(2)
 
(21)
 
(23)
Foreign
 
2
 
23
 
25
 
(2)
 
(6)
 
(8)
Payables from securities financing
 
transactions measured at amortized cost
Domestic
 
0
 
39
 
39
 
2
 
(7)
 
(5)
Foreign
 
(12)
 
92
 
80
 
(42)
 
76
 
34
Customer deposits
Domestic
 
2
 
206
 
208
 
(19)
 
(98)
 
(117)
of which: demand deposits
 
21
 
104
 
125
 
(22)
 
(86)
 
(108)
of which: savings and sweep deposits
 
 
0
 
2
 
2
 
0
 
1
 
1
of which: time deposits
 
(19)
 
99
 
80
 
3
 
(14)
 
(11)
Foreign
 
6
 
1,707
 
1,713
 
52
 
(497)
 
(445)
of which: demand deposits
 
6
 
145
 
151
 
(2)
 
(24)
 
(26)
of which: savings and sweep deposits
 
 
9
 
488
 
497
 
78
 
(192)
 
(114)
of which: time deposits
 
(9)
 
1,073
 
1,064
 
(24)
 
(281)
 
(305)
Commercial paper
Domestic
 
0
 
0
 
0
 
0
 
0
 
0
Foreign
 
(5)
 
228
 
223
 
52
 
(138)
 
(86)
Other short-term debt issued measured at amortized cost
Domestic
 
0
 
5
 
5
 
0
 
0
 
0
Foreign
 
(13)
 
100
 
87
 
13
 
(123)
 
(110)
Long-term debt issued measured at amortized cost
Domestic
 
(12)
 
170
 
158
 
94
 
(293)
 
(199)
Foreign
 
(86)
 
34
 
(52)
 
15
 
(105)
 
(90)
Financial liabilities at fair value (excluding
 
debt issued designated at fair value)
Domestic
 
(1)
 
8
 
7
 
(1)
 
2
 
1
Foreign
 
0
 
1,379
 
1,379
 
(16)
 
(295)
 
(311)
Debt issued designated at fair value
Domestic
 
(3)
 
82
 
79
 
44
 
(31)
 
13
Foreign
 
22
 
832
 
854
 
55
 
(427)
 
(372)
Other interest-bearing liabilities
Domestic
 
0
 
21
 
21
 
1
 
(2)
 
(1)
Foreign
 
12
 
316
 
328
 
(18)
 
(68)
 
(86)
Interest expense
Domestic
 
(15)
 
567
 
552
 
119
 
(450)
 
(331)
Foreign
 
(74)
 
4,710
 
4,636
 
109
 
(1,583)
 
(1,474)
Total interest expense on interest
 
-bearing liabilities
 
(89)
 
5,277
 
5,188
 
228
 
(2,033)
 
(1,805)
Swap interest on hedged debt
 
issued and other swaps
 
805
 
(157)
Interest expense on off-balance sheet securities and other
 
(73)
 
220
Total interest expense
 
5,920
 
(1,742)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
500
 
 
Deposits
The table below analyzes average deposits and average rates on each deposit category for the
 
years ended 31 December
2022,
 
2021 and
 
2020. For the
 
purpose of
 
this disclosure,
 
foreign deposits
 
represent
 
deposits from
 
depositors who
 
are
based outside of Switzerland.
 
Deposits by foreign deposi
 
tors in domestic offices were
 
USD 59,744m as of
 
31 December
2022 (31 December 2021
 
:
 
USD 77,011m;
 
31 December 2020:
 
USD 76,167m).
 
31.12.22
31.12.21
31.12.20
USD m, except where indicated
Average
 
deposits
Average
 
rate (%)
Average
 
deposits
Average
 
rate (%)
Average
 
deposits
Average
 
rate (%)
Due to banks
Domestic
 
Demand deposits
 
908
 
(0.3)
 
927
 
(0.5)
 
1,037
 
(0.4)
Time deposits
 
2,793
 
0.5
 
3,026
 
0.0
 
1,775
 
0.4
Total domestic
 
 
3,700
 
0.3
 
3,953
 
(0.1)
 
2,812
 
0.1
Foreign
1
Interest-bearing deposits
 
10,288
 
0.3
 
9,313
 
(0.1)
 
8,454
 
0.1
Total due to banks
 
13,988
 
0.3
 
13,266
 
(0.1)
 
11,266
 
0.1
Customer deposits
Domestic
 
Demand deposits
 
95,866
 
(0.1)
 
101,338
 
(0.2)
 
90,070
 
(0.1)
Savings and sweep deposits
 
109,039
 
0.0
 
114,792
 
0.0
 
110,328
 
0.0
Time deposits
 
8,825
 
0.2
 
8,371
 
(0.4)
 
17,610
 
(0.1)
Total domestic
 
 
213,730
 
0.0
 
224,502
 
(0.1)
 
218,008
 
(0.1)
Foreign
1
Demand deposits
 
119,024
 
0.1
 
140,906
 
(0.1)
 
112,486
 
0.0
Savings and sweep deposits
 
121,776
 
0.5
 
111,345
 
0.1
 
82,806
 
0.2
Time deposits
 
64,468
 
1.8
 
44,507
 
0.1
 
65,104
 
0.5
Total foreign
 
 
305,267
 
0.6
 
296,758
 
0.0
 
260,397
 
0.2
Total customer deposits
 
518,997
 
0.3
 
521,260
 
0.0
 
478,404
 
0.1
1 For the
 
purpose of this
 
table, the
 
distinction between
 
foreign and
 
domestic deposits
 
is based
 
on the domicile
 
of the depositor,
 
while foreign
 
and domestic
 
deposits disclosed
 
in previous
 
tables are based
 
on the
booking location.
 
 
 
Uninsured deposits
From the
 
combined
 
total of
 
Due to
 
banks and
 
Customer deposits
 
as of 31
 
December 2022,
 
total estimated
 
uninsured
deposits
 
were USD
 
362bn
 
(31 December 2021:
 
USD 392bn;
 
31 December 2020:
 
USD 380bn).
 
Uninsured
 
deposits
 
are
deposits
 
that
 
are
 
in
 
excess
 
of
 
local
 
deposit
 
insurance
 
or
 
protection
 
scheme
 
limits
 
in
 
the
 
key
 
locations
 
in
 
which
 
UBS
operates, calculated based
 
on the respective local
 
regulations, as well
 
as deposits in uninsured accounts.
 
The main deposit
insurance schemes applicable
 
to UBS deposits are
 
the Swiss depositor protection
 
scheme in Switzerland
 
(which protects
applicable
 
deposits
 
up
 
to
 
a
 
maximum of
 
CHF 100,000
 
per
 
client and
 
per
 
bank
 
or securities
 
firm),
 
the
 
Compensation
Scheme
 
of
 
German
 
Banks,
 
in
 
combination
 
with
 
the
 
Deposit
 
Protection
 
Fund
 
of
 
the
 
Association
 
of
 
German
 
Banks
 
in
Germany (which protects
 
applicable deposits up to
 
a maximum of
 
EUR 456m per client) and
 
the Federal
 
Deposit Insurance
Corporation (the
 
FDIC) scheme
 
in the Americas
 
(which protects
 
applicable deposits
 
up to
 
a maximum
 
of USD
 
250,000
per depositor,
 
per insured bank, for each account ownership
 
category).
The table below presents the maturity of estimated uninsured time deposits as
 
of 31 December 2022. Where a depositor
holds multiple accounts, which
 
in aggregate are in
 
excess of a deposit insurance or protection
 
limit, the insured amount
is first allocated to the account with the shortest
 
time to maturity.
 
 
USD m
 
Uninsured time deposits
1
Within 3 months
93,030
3 to 6 months
10,962
6 to 12 months
7,563
Over 12 months
790
Total uninsured time deposits
 
as of 31 December 2022
112,345
1 Amounts are estimated based on the methodologies
 
defined in each local jurisdiction. As of 31 December
 
2022, there were no US time deposits
 
subject to the FDIC scheme that were in excess of the
 
FDIC insurance
limit.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
Group
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
501
 
Investments in debt instruments
The table below presents the carrying
 
amount and weighted average yield of
 
debt instruments presented within Financial
assets measured
 
at
 
fair value
 
through
 
other comprehensive
 
income and
 
Other financial
 
assets
 
measured
 
at amortized
cost on the balance sheet, by contractual maturity bucket. The yield for each range of maturities is calculated by dividing
the annualized
 
interest income by
 
the average balance
 
of the investment
 
per contractual maturity
 
bucket. The
 
maturity
information presented
 
does not
 
consider any
 
early redemption
 
features, and
 
debt instruments
 
without
 
fixed maturities
are not included.
 
Within 1 year
1 to 5 years
5 to 10 years
Over 10 years
USD m, except where indicated
Carrying
amount
Yield (%)
Carrying
amount
Yield (%)
Carrying
amount
Yield (%)
Carrying
amount
Yield (%)
Total carrying
amount
Debt instruments measured at fair value
 
through
other comprehensive income
Government bills / bonds
26
 
0.73
26
Corporate and other
2,093
 
2.64
119
 
2.48
2,213
Subtotal as of 31 December 2022
2,120
119
2,239
Debt
 
securities measured at amortized cost
 
Asset-backed securities
 
117
 
1.97
1,588
 
2.33
6,735
 
2.37
8,440
Government bills / bonds
8,584
 
1.27
6,236
 
1.97
4,403
 
1.67
1,837
 
2.46
21,060
Corporate and other
2,005
 
0.53
9,662
 
1.24
3,410
 
1.33
16
 
1.95
15,094
Subtotal as of 31 December 2022
10,589
16,015
9,402
8,588
44,594
Total as of 31 December 2022
12,708
16,135
9,402
8,588
46,833
 
 
 
 
Loan portfolio
The
 
table
 
below
 
provides
 
the
 
maturity profile
 
of
 
UBS’s
 
core
 
loan
 
portfolio
 
as
 
of
 
31 December
 
2022.
 
The
 
contractual
maturity
 
is
 
based
 
on
 
carrying
 
amounts
 
and
 
includes
 
the
 
effect
 
of
 
callable
 
features.
 
For
 
loans
 
due
 
after
 
one
 
year,
 
a
breakdown between
 
fixed and adjustable or floating interest rates
 
is also provided.
 
 
USD m
31.12.22
Within 1 year
 
1 to 5 years
5 to 15 years
Over 15 years
Total
 
of which: over 1 year
Fixed rate
Adjustable or
floating rate
Private clients with mortgages
 
15,056
 
83,223
 
31,854
 
26,797
 
156,930
 
76,707
 
65,166
Real estate financing
 
19,130
 
19,146
 
8,153
 
40
 
46,470
 
17,435
 
9,904
Large corporate clients
 
4,423
 
6,876
 
926
 
1
 
12,226
 
2,791
 
5,012
SME clients
 
6,647
 
4,644
 
2,612
 
0
 
13,903
 
3,393
 
3,863
Lombard
 
124,695
 
7,178
 
414
 
0
 
132,287
 
6,975
 
617
Credit cards
 
1,834
 
0
 
0
 
0
 
1,834
 
0
 
0
Commodity trade finance
 
3,158
 
110
 
4
 
0
 
3,272
 
4
 
110
Other loans and advances to customers
 
9,000
 
9,193
 
2,088
 
19
 
20,300
 
1,533
 
9,766
Loans to financial advisors
 
134
 
975
 
1,278
 
223
 
2,611
 
2,476
 
0
Total
 
184,078
 
131,345
 
47,328
 
27,080
 
389,831
 
111,315
 
94,438
 
 
 
 
Allowance for credit losses
For the years ended
 
31 December 2022,
 
2021 and 2020,
 
the ratio of net
 
charge-offs (i.e.,
 
write-offs of expected
 
credit
loss allowances to gross carrying amount of the average loans outstanding) during the period was not material for UBS’s
core loan
 
portfolio, both
 
on an overall basis
 
and on
 
an individual loan
 
category basis. Total
 
write-offs for
 
31 December
2022 were USD 95m (31 December
 
2021: USD 137m; 31 December 2020: USD 356m).
 
Refer to the
 
coverage ratio tables
in “Note 9
 
Financial assets at
 
amortized cost
 
and other
 
positions in
 
scope of
 
expected credit loss
 
measurement” in
 
the
“Consolidated financial
 
statements”
 
section of this
 
report for the
 
ratio of expected
 
credit loss allowances
 
to total loans
outstanding at each period
 
end.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
502
 
UBS AG consolidated supplemental disclosures
required under SEC regulations
A
–
 
Introduction
The
 
following
 
pages
 
contain
 
supplemental
 
UBS
 
AG
 
disclosures
 
that
 
are
 
required
 
under
 
SEC
 
regulations.
 
UBS
 
AG’s
consolidated
 
financial statements
 
have
 
been
 
prepared
 
in
 
accordance
 
with
 
International
 
Financial Reporting
 
Standards
(IFRS) as
 
issued
 
by the
 
International Accounting
 
Standards
 
Board
 
(the IASB)
 
and
 
are denominated
 
in US
 
dollars (USD),
which
 
is
 
also
 
the
 
functional
 
currency
 
of:
 
UBS
 
AG’s
 
Head
 
Office;
 
UBS
 
AG
 
London
 
Branch;
 
and
 
UBS
 
AG’s
 
US-based
operations.
 
 
 
B – Selected financial data
 
Selected information
As of or for the year ended
31.12.22
31.12.21
31.12.20
Personnel (full-time equivalents)
 
47,628
 
47,067
 
47,546
Americas
 
21,819
 
21,317
 
21,394
of which: USA
 
21,032
 
20,537
 
20,528
Asia Pacific
 
8,319
 
7,993
 
8,049
Europe, Middle East and Africa (excluding
 
Switzerland)
 
5,792
 
5,748
 
5,797
of which: UK
 
2,714
 
2,611
 
2,596
of which: rest of Europe (excluding Switzerland)
 
2,831
 
2,949
 
3,024
of which: Middle East and Africa
 
246
 
189
 
177
Switzerland
 
11,698
 
12,009
 
12,307
Registered ordinary shares (number)
 
3,858,408,466
 
3,858,408,466
 
3,858,408,466
Treasury shares (number)
 
0
 
0
 
0
 
 
 
Dividends received from investments in
 
subsidiaries and associates
In 2022,
 
UBS AG received
 
dividends of
 
USD 6,465m
 
(2021: USD 6,401m;
 
2020: USD 3,214m)
 
from its subsidiaries
 
and
associates. Dividends
 
disclosed have
 
been translated
 
to US
 
dollars from the
 
functional currency
 
of the entity
 
paying the
dividend, using the
 
closing exchange rate of the month the
 
dividend was received.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
503
 
 
Balance sheet data
USD m
31.12.22
31.12.21
31.12.20
Assets
Cash and balances at central banks
 
169,445
 
192,817
 
158,231
Loans and advances to banks
 
14,671
 
15,360
 
15,344
Receivables from securities financing transactions
 
at amortized cost
 
67,814
 
75,012
 
74,210
Cash collateral receivables on derivative
 
instruments
 
35,033
 
30,514
 
32,737
Loans and advances to customers
 
390,027
 
398,693
 
380,977
Other financial assets measured at amortized cost
53,389
26,236
27,219
Total financial assets
 
measured at amortized cost
 
730,379
 
738,632
 
688,717
Financial assets at fair value held for trading
 
108,034
 
131,033
 
125,492
of which: assets pledged as collateral that may be
 
sold or repledged by counterparties
 
36,742
 
43,397
 
47,098
Derivative financial instruments
 
150,109
 
118,145
 
159,618
Brokerage receivables
 
17,576
 
21,839
 
24,659
Financial assets at fair value not held for trading
 
59,408
 
59,642
 
80,038
Total financial assets
 
measured at fair value through profit or
 
loss
 
335,127
 
330,659
 
389,808
Financial assets measured at
 
fair value through other comprehensive
 
income
 
2,239
 
8,844
 
8,258
Investments in associates
 
1,101
 
1,243
 
1,557
Property, equipment
 
and software
 
11,316
 
11,712
 
11,958
Goodwill and intangible assets
 
6,267
 
6,378
 
6,480
Deferred tax assets
 
9,354
 
8,839
 
9,174
Other non-financial assets
 
9,652
 
9,836
 
9,374
Total assets
 
1,105,436
 
1,116,145
 
1,125,327
Liabilities
Amounts due to banks
 
 
11,596
 
13,101
 
11,050
Payables from securities financing
 
transactions at amortized cost
 
4,202
 
5,533
 
6,321
Cash collateral payables on derivative instruments
 
36,436
 
31,801
 
37,313
Customer deposits
527,171
544,834
527,929
Funding from UBS Group AG measured at amortized
 
cost
 
56,147
 
57,295
 
53,979
Debt issued measured at amortized cost
 
59,499
 
82,432
 
85,351
Other financial liabilities measured at amortized cost
10,391
9,765
10,421
Total financial liabilities measured
 
at amortized cost
 
705,442
 
744,762
 
732,364
Financial liabilities at fair value held for trading
 
29,515
 
31,688
 
33,595
Derivative financial instruments
 
154,906
 
121,309
 
161,102
Brokerage payables designated at
 
fair value
 
45,085
 
44,045
 
38,742
Debt issued designated at fair value
 
71,842
 
71,460
 
59,868
Other financial liabilities designated at fair value
 
32,033
 
32,414
 
31,773
Total financial liabilities measured
 
at fair value through profit or
 
loss
 
333,382
 
300,916
 
325,080
Provisions
 
3,183
 
3,452
 
2,791
Other non-financial liabilities
 
6,489
 
8,572
 
7,018
Total liabilities
 
1,048,496
 
1,057,702
 
1,067,254
Equity attributable to shareholders
 
56,598
 
58,102
 
57,754
Equity attributable to non-controlling
 
interests
 
342
 
340
 
319
Total equity
 
56,940
 
58,442
 
58,073
Total liabilities and
 
equity
 
1,105,436
 
1,116,145
 
1,125,327
 
 
C – Information about the
 
company
Property, plant and equipment
As
 
of
 
31
 
December
 
2022,
 
UBS
 
AG
 
operated
 
in
 
about
 
663
 
business
 
and
 
banking
 
locations
 
worldwide,
 
of
 
which
approximately 33%
 
were in
 
Switzerland,
 
49%
 
in the
 
Americas, 9%
 
in the
 
rest of
 
Europe,
 
the Middle
 
East and
 
Africa,
and 9% in Asia Pacific. Of
 
the business and banking locations in Switzerland, 22% were owned directly by UBS AG, with
the
 
remainder,
 
along
 
with
 
most
 
of
 
UBS
 
AG’s
 
offices
 
outside
 
Switzerland,
 
being
 
held
 
under
 
commercial
 
leases.
 
These
premises are
 
subject to
 
continuous
 
maintenance and
 
upgrading
 
and are
 
considered suitable
 
and
 
adequate for
 
current
and anticipated operations.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
504
 
D – Information required by Subpart
 
1400 of Regulation S-K
Selected statistical information
The
 
tables
 
below
 
set
 
forth
 
selected
 
statistical
 
information
 
regarding
 
UBS
 
AG’s
 
banking
 
operations
 
extracted
 
from
 
its
financial statements. Unless otherwise indicated, average balances for
 
the years ended 31 December 2022,
 
31 December
2021
 
and 31
 
December
 
2020
 
are
 
calculated
 
from
 
monthly
 
data.
 
Unless
 
otherwise
 
indicated,
 
the
 
distinction
 
between
domestic (Swiss) and foreign
 
(non-Swiss) is generally based
 
on the booking location.
 
 
 
 
Average balances and interest
 
rates
The tables below set forth average interest-earning assets and average interest-bearing
 
liabilities, along with the average
yield, for
 
2022,
 
2021
 
and 2020
 
.
 
Refer to
 
“Note 3
 
Net interest income and other net
 
income from financial instruments
measured at fair value through profit or loss” in the “Consolidated
 
financial statements” section
 
of this report
 
for more
information about interest income and
 
interest expense.
 
For the year ended
31.12.22
31.12.21
31.12.20
USD m, except where indicated
Average
 
balance
Interest
 
income
Average
 
yield (%)
Average
 
balance
Interest
 
income
Average
 
yield (%)
Average
 
balance
Interest
 
income
Average
 
yield (%)
Assets
Balances at central banks
Domestic
 
99,777
 
92
 
0.1
 
98,804
 
(105)
 
(0.1)
 
90,234
 
(112)
 
(0.1)
Foreign
 
88,267
 
595
 
0.7
 
71,529
 
(31)
 
0.0
 
51,611
 
7
 
0.0
Loans and advances to banks
Domestic
 
2,966
 
50
 
1.7
 
3,158
 
40
 
1.3
 
2,930
 
43
 
1.5
Foreign
 
12,205
 
8
 
0.1
 
12,961
 
12
 
0.1
 
12,001
 
31
 
0.3
Receivables from securities financing transactions
 
measured
at amortized cost
1
Domestic
 
6,431
 
30
 
0.5
 
9,435
 
(28)
 
(0.3)
 
4,746
 
8
 
0.2
Foreign
 
70,942
 
1,105
 
1.6
 
79,297
 
234
 
0.3
 
92,098
 
551
 
0.6
Loans and advances to customers
Domestic
 
225,540
 
3,212
 
1.4
 
229,794
 
3,214
 
1.4
 
212,383
 
3,020
 
1.4
Foreign
 
160,496
 
4,824
 
3.0
 
160,869
 
2,698
 
1.7
 
138,485
 
3,136
 
2.3
Financial assets at fair value
1,2
Domestic
 
5,922
 
50
 
0.8
 
10,023
 
11
 
0.1
 
12,459
 
40
 
0.3
Foreign
 
151,672
 
2,113
 
1.4
 
169,368
 
1,203
 
0.7
 
192,381
 
1,826
 
0.9
Other interest-earning assets
Domestic
 
8,226
 
125
 
1.5
 
7,477
 
121
 
1.6
 
8,064
 
136
 
1.7
Foreign
 
63,108
 
858
 
1.4
 
47,042
 
298
 
0.6
 
45,443
 
386
 
0.8
Total interest-earning
 
assets
3
 
895,553
 
13,064
 
1.5
 
899,757
 
7,666
 
0.9
 
862,835
 
9,071
 
1.1
Net interest income on swaps
 
1,812
 
1,558
 
1,140
Interest income on off-balance sheet securities and other
 
677
 
472
 
386
Interest income and average interest
 
-earning assets
 
895,553
 
15,553
4
 
1.7
 
899,757
 
9,695
4
 
1.1
 
862,835
 
10,597
4
 
1.2
Non-interest-earning assets
5
 
297,691
 
296,300
 
308,528
Total average assets
 
1,193,244
 
1,196,057
 
1,171,363
1 Reverse repurchase agreements
 
are presented on
 
a gross basis
 
and therefore, for
 
the purpose
 
of this disclosure,
 
do not reflect
 
the effect of netting
 
permitted under IFRS.
 
2 Includes financial
 
assets at fair
 
value
held for trading,
 
financial
 
assets at fair
 
value not
 
held for trading,
 
financial assets
 
at fair
 
value through
 
other comprehensive
 
income and
 
brokerage
 
receivables.
 
3 Non-taxable
 
positions and
 
amounts were
 
not
material for the years presented.
 
4 For the purpose of this
 
disclosure, negative interest
 
income on assets is
 
presented as a reduction to interest
 
income, while in the consolidated
 
income statement negative
 
interest
income on assets is
 
presented as interest
 
expense. Refer
 
to Note 3
 
Net interest income
 
and other
 
net income from
 
financial instruments
 
measured at fair
 
value through profit
 
or loss in
 
the “Consolidated
 
financial
statements” section of this report
 
for more information.
 
5 Mainly includes derivative
 
financial instruments,
 
equity instruments at
 
fair value held for trading
 
and financial assets for unit
 
-linked investment
 
contracts.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
505
 
 
Average balances and interest
 
rates (continued)
For the year ended
31.12.22
31.12.21
31.12.20
USD m, except where indicated
Average
balance
Interest
expense
Average
 
interest
 
rate (%)
Average
balance
Interest
expense
Average
 
interest
 
rate (%)
Average
balance
Interest
expense
Average
 
interest
 
rate (%)
Liabilities and equity
Amount due to banks
Domestic
 
10,733
 
3
 
0.0
 
10,369
 
(32)
 
(0.3)
 
8,097
 
(9)
 
(0.1)
Foreign
 
3,255
 
44
 
1.3
 
2,897
 
18
 
0.6
 
3,169
 
26
 
0.8
Payables from securities financing
 
transactions measured at
amortized cost
1
Domestic
 
3,357
 
40
 
1.2
 
4,786
 
1
 
0.0
 
3,888
 
6
 
0.2
Foreign
 
13,351
 
289
 
2.2
 
14,161
 
209
 
1.5
 
18,793
 
174
 
0.9
Customer deposits
Domestic
 
275,270
 
(61)
 
0.0
 
293,028
 
(281)
 
(0.1)
 
266,614
 
(160)
 
(0.1)
of which: demand deposits
 
149,357
 
(141)
 
(0.1)
 
162,016
 
(273)
 
(0.2)
 
138,949
 
(164)
 
(0.1)
of which: savings and sweep deposits
 
 
119,685
 
6
 
0.0
 
126,290
 
4
 
0.0
 
121,793
 
3
 
0.0
of which: time deposits
 
6,227
 
74
 
1.2
 
4,721
 
(12)
 
(0.3)
 
5,873
 
1
 
0.0
Foreign
 
246,072
 
1,820
 
0.7
 
232,165
 
107
 
0.0
 
214,783
 
551
 
0.3
of which: demand deposits
 
66,987
 
120
 
0.2
 
82,226
 
(31)
 
0.0
 
64,955
 
(6)
 
0.0
of which: savings and sweep deposits
 
 
111,130
 
578
 
0.5
 
99,847
 
81
 
0.1
 
71,341
 
194
 
0.3
of which: time deposits
 
67,956
 
1,121
 
1.7
 
50,092
 
58
 
0.1
 
78,488
 
363
 
0.5
Funding from UBS Group AG
Domestic
 
56,884
 
1,875
 
3.3
 
56,008
 
1,699
 
3.0
 
51,005
 
1,740
 
3.4
Commercial paper
Domestic
 
1
 
0
 
0.0
 
292
 
0
 
0.0
 
130
 
0
 
0.0
Foreign
 
20,452
 
256
 
1.3
 
24,461
 
33
 
0.1
 
17,098
 
120
 
0.7
Other short-term debt issued measured at amortized cost
Domestic
 
366
 
4
 
1.2
 
13
 
0
 
(0.1)
 
10
 
0
 
0.0
Foreign
 
11,927
 
124
 
1.0
 
18,473
 
37
 
0.2
 
16,989
 
147
 
0.9
Long-term debt issued measured at amortized cost
Domestic
 
11,538
 
184
 
1.6
 
12,352
 
192
 
1.6
 
14,054
 
323
 
2.3
Foreign
 
22,929
 
439
 
1.9
 
27,820
 
491
 
1.8
 
27,100
 
581
 
2.1
Financial liabilities at fair value (excluding
 
debt issued
designated at fair value)
1,2
Domestic
 
289
 
11
 
3.7
 
421
 
3
 
0.8
 
701
 
2
 
0.3
Foreign
 
141,526
 
1,476
 
1.0
 
139,374
 
81
 
0.1
 
146,306
 
354
 
0.2
Debt issued designated at fair value
Domestic
 
7,400
 
43
 
0.6
 
7,806
 
(20)
 
(0.3)
 
3,469
 
6
 
0.2
Foreign
 
63,470
 
1,283
 
2.0
 
60,388
 
429
 
0.7
 
56,442
 
801
 
1.4
Other interest-bearing liabilities
Domestic
 
2,872
 
14
 
0.5
 
2,884
 
(7)
 
(0.2)
 
3,333
 
(6)
 
(0.2)
Foreign
 
38,838
 
429
 
1.1
 
34,833
 
101
 
0.3
 
38,516
 
187
 
0.5
Total interest-bearing
 
liabilities
 
930,531
 
8,273
 
0.9
 
942,531
 
3,060
 
0.3
 
890,498
 
4,841
 
0.5
Swap interest on hedged debt
 
instruments and other
swaps
 
40
 
(765)
 
(608)
Interest expense on off-balance sheet securities and other
 
723
 
797
 
576
Interest expense and average interest
 
-bearing liabilities
 
930,531
 
9,035
3
 
1.0
 
942,531
 
3,091
3
 
0.3
 
890,498
 
4,809
3
 
0.5
Non-interest-bearing liabilities
4
 
206,337
 
196,273
 
224,468
Total liabilities
 
1,136,868
 
1,138,804
 
1,114,966
Total equity
 
56,376
 
57,254
 
56,397
Total average liabilities and equity
 
1,193,244
 
1,196,057
 
1,171,363
Net interest income
 
6,517
 
6,604
 
5,788
Net yield on interest-earning
 
assets
 
0.7
 
0.7
 
0.7
1 Repurchase agreements are presented
 
on a gross basis and therefore,
 
for the purpose of this disclosure,
 
do not reflect the effect
 
of netting permitted under IFRS.
 
2 Includes financial
 
liabilities at fair value held for
trading, other financial
 
liabilities designated at
 
fair value and brokerage
 
payables designated at fair
 
value.
 
3 For the purpose
 
of this disclosure,
 
negative interest expense on liabilities
 
is presented as a reduction
 
to
interest expense, while in the consolidated income
 
statement negative interest income on liabilities is
 
presented as interest income. Refer to Note 3 Net interest income and
 
other net income from financial instruments
measured at fair value through profit
 
or loss in the “Consolidated financial statemen
 
ts” section of this report for more information.
 
4 Mainly includes derivative
 
financial instruments, equity instruments
 
at fair value
held for trading and financial
 
liabilities related to unit
 
-linked investment
 
contracts.
 
 
The percentage of total average interest
 
-earning assets attributable to foreign
 
activities was 61
 
%
 
for 2022 (2021:
 
60%;
2020:
 
62%).
 
The percentage
 
of
 
total average
 
interest-bearing
 
liabilities
 
attributable
 
to
 
foreign
 
activities was
 
60%
 
for
2022 (2021:
 
59%; 2020:
 
61%). All
 
assets and liabilities
 
are translated into US
 
dollars at uniform
 
month-end rates. Interest
income and expense are translated
 
at monthly average rates.
Average rates earned and paid on assets
 
and liabilities can change from
 
period to period based on the changes in interest
rates in
 
general, but
 
are also
 
affected by
 
changes
 
in the
 
currency mix
 
included
 
in the
 
assets and
 
liabilities. Tax-exempt
income is
 
not recorded
 
on a
 
tax-equivalent basis.
 
For all
 
three years
 
presented,
 
tax-exempt income
 
is considered
 
to be
insignificant and the effect from such
 
income is therefore negligible.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
506
 
 
Analysis of changes in interest income and
 
expense
The tables
 
below provide
 
information by
 
categories of
 
interest-earning
 
assets and
 
interest-bearing
 
liabilities,
 
about the
changes in
 
interest income
 
and expense
 
due to
 
changes in
 
volume and
 
interest
 
rates for
 
the year
 
ended 31
 
December
2022 compared with the year ended 31 December 2021,
 
and for the year ended 31 December 2021 compared with the
year ended
 
31 December
 
2020.
 
The change
 
in average
 
volume
 
represents
 
the change
 
in the
 
current average
 
balance
compared to
 
the average
 
balance from
 
the prior
 
year with respect
 
to the average
 
rate of
 
the prior
 
year.
 
The change
 
in
average rate represents the
 
difference between the net change in
 
interest income and expense and
 
the change in
 
average
volume.
 
 
2022 compared with 2021
2021 compared with 2020
Increase / (decrease)
due to changes in
Increase / (decrease)
due to changes in
USD m
Average
 
volume
Average
interest rate
Net
change
Average
 
volume
Average
 
interest rate
Net
change
Interest income from interest
 
-earning assets
Balances at central banks
Domestic
 
(1)
 
198
 
197
 
(9)
 
16
 
7
Foreign
 
(7)
 
633
 
626
 
0
 
(38)
 
(38)
Loans and advances to banks
Domestic
 
(2)
 
12
 
10
 
3
 
(6)
 
(3)
Foreign
 
(1)
 
(3)
 
(4)
 
3
 
(23)
 
(20)
Receivables from securities financing transactions
 
measured at amortized cost
Domestic
 
9
 
49
 
58
 
9
 
(44)
 
(35)
Foreign
 
(25)
 
896
 
871
 
(77)
 
(240)
 
(317)
Loans and advances to customers
Domestic
 
(59)
 
58
 
(1)
 
244
 
(50)
 
194
Foreign
 
(6)
 
2,133
 
2,127
 
515
 
(954)
 
(439)
Financial assets at fair value
Domestic
 
(5)
 
44
 
39
 
(7)
 
(22)
 
(29)
Foreign
 
(126)
 
1,036
 
910
 
(207)
 
(416)
 
(623)
Other interest-earning assets
Domestic
 
12
 
(8)
 
4
 
(10)
 
(5)
 
(15)
Foreign
 
102
 
458
 
560
 
13
 
(101)
 
(88)
Interest income
Domestic
 
(46)
 
354
 
308
 
230
 
(111)
 
119
Foreign
 
(63)
 
5,154
 
5,091
 
247
 
(1,772)
 
(1,525)
Total interest income from interest-earning
 
assets
 
(109)
 
5,507
 
5,398
 
477
 
(1,883)
 
(1,406)
Net interest income on swaps
 
254
 
418
Interest income on off-balance sheet securities and other
 
205
 
86
Total interest income
 
5,858
 
(902)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
507
 
 
Analysis of changes in interest income and
 
expense (continued)
2022 compared with 2021
2021 compared with 2020
Increase / (decrease)
due to changes in
Increase / (decrease)
due to changes in
USD m
Average
 
volume
Average
interest rate
Net
change
Average
 
volume
Average
 
interest rate
Net
change
Interest expense on interest-bearing
 
liabilities
Amount due to banks
Domestic
 
(1)
 
36
 
35
 
(2)
 
(21)
 
(23)
Foreign
 
2
 
23
 
25
 
(2)
 
(5)
 
(7)
Payables from securities financing
 
transactions measured at amortized cost
Domestic
 
0
 
39
 
39
 
2
 
(7)
 
(5)
Foreign
 
(12)
 
92
 
80
 
(42)
 
76
 
34
Customer deposits
 
Domestic
 
17
 
203
 
220
 
(23)
 
(98)
 
(121)
of which: demand deposits
 
21
 
111
 
132
 
(23)
 
(86)
 
(109)
of which: savings and sweep deposits
 
 
0
 
2
 
2
 
0
 
1
 
1
of which: time deposits
 
(4)
 
90
 
86
 
0
 
(13)
 
(13)
Foreign
 
6
 
1,707
 
1,713
 
52
 
(497)
 
(445)
of which: demand deposits
 
6
 
145
 
151
 
0
 
(26)
 
(26)
of which: savings and sweep deposits
 
 
9
 
488
 
497
 
86
 
(200)
 
(114)
of which: time deposits
 
21
 
1,043
 
1,064
 
(142)
 
(163)
 
(305)
Funding from UBS Group AG
 
Domestic
 
27
 
149
 
176
 
170
 
(211)
 
(41)
Commercial paper
Domestic
 
0
 
0
 
0
 
0
 
0
 
0
Foreign
 
(5)
 
228
 
223
 
52
 
(138)
 
(86)
Other short-term debt issued measured at amortized cost
Domestic
 
0
 
5
 
5
 
0
 
0
 
0
Foreign
 
(13)
 
100
 
87
 
13
 
(123)
 
(110)
Long-term debt issued measured at amortized cost
Domestic
 
(13)
 
5
 
(8)
 
(39)
 
(92)
 
(131)
Foreign
 
(86)
 
34
 
(52)
 
15
 
(105)
 
(90)
Financial liabilities at fair value (excluding
 
debt issued designated at fair value)
Domestic
 
(1)
 
8
 
7
 
(1)
 
2
 
1
Foreign
 
1
 
1,395
 
1,396
 
(14)
 
(259)
 
(273)
Debt issued designated at fair value
Domestic
 
1
 
61
 
62
 
9
 
(34)
 
(25)
Foreign
 
22
 
832
 
854
 
55
 
(426)
 
(371)
Other interest-bearing liabilities
Domestic
 
0
 
21
 
21
 
1
 
(2)
 
(1)
Foreign
 
12
 
316
 
328
 
(18)
 
(68)
 
(86)
Interest expense
Domestic
 
30
 
529
 
559
 
117
 
(463)
 
(346)
Foreign
 
(73)
 
4,727
 
4,654
 
111
 
(1,546)
 
(1,435)
Total interest expense on interest-bearing
 
liabilities
 
(43)
 
5,256
 
5,213
 
228
 
(2,010)
 
(1,782)
Swap interest on hedged debt
 
instruments and other swaps
 
805
 
(157)
Interest expense on off-balance sheet securities and other
 
(74)
 
221
Total interest expense
 
5,944
 
(1,718)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
508
 
 
Deposits
The table below analyzes average deposits and average rates on each deposit category for the
 
years ended 31 December
2022,
 
2021 and
 
2020. For the
 
purpose of
 
this disclosure,
 
foreign deposits
 
represent
 
deposits from
 
depositors who
 
are
based outside of Switzerland. Deposits
 
by foreign depositors in
 
domestic offices were
 
USD 59,897m as of
 
31 December
2022 (31 December 2021
 
:
 
USD 77,070m; 31 December 2020
 
:
 
USD 76,200m).
 
31.12.22
31.12.21
31.12.20
USD m, except where indicated
Average
 
deposits
Average
 
rate (%)
Average
 
deposits
Average
 
rate (%)
Average
 
deposits
Average
 
rate (%)
Due to banks
Domestic
 
Demand deposits
 
908
 
(0.3)
 
927
 
(0.5)
 
1,037
 
(0.4)
Time deposits
 
2,793
 
0.5
 
3,026
 
0.0
 
1,775
 
0.4
Total domestic
 
 
3,700
 
0.3
 
3,953
 
(0.1)
 
2,812
 
0.1
Foreign
1
Interest-bearing deposits
 
10,288
 
0.3
 
9,313
 
(0.1)
 
8,454
 
0.1
Total due to banks
 
13,988
 
0.3
 
13,266
 
(0.1)
 
11,266
 
0.1
Customer deposits
Domestic
 
Demand deposits
 
97,217
 
(0.1)
 
103,267
 
(0.2)
 
91,404
 
(0.1)
Savings and sweep deposits
 
109,039
 
0.0
 
114,792
 
0.0
 
110,328
 
0.0
Time deposits
 
9,715
 
0.4
 
10,306
 
(0.2)
 
19,256
 
0.0
Total domestic
 
 
215,971
 
0.0
 
228,366
 
(0.1)
 
220,988
 
0.0
Foreign
1
Demand deposits
 
119,127
 
0.1
 
140,975
 
(0.1)
 
112,499
 
0.0
Savings and sweep deposits
 
121,776
 
0.5
 
111,345
 
0.1
 
82,806
 
0.2
Time deposits
 
64,468
 
1.8
 
44,507
 
0.1
 
65,104
 
0.5
Total foreign
 
 
305,370
 
0.6
 
296,826
 
0.0
 
260,410
 
0.2
Total customer deposits
 
521,342
 
0.3
 
525,192
 
0.0
 
481,398
 
0.1
1 For the
 
purpose of this
 
table, the
 
distinction between
 
foreign and
 
domestic deposits
 
is based
 
on the domicile
 
of the deposi
 
tor, while
 
foreign and domestic
 
deposits disclosed
 
in previous
 
tables are based
 
on the
booking location.
 
Uninsured deposits
 
From the
 
combined
 
total of
 
Due to
 
banks
 
and Customer
 
deposits
 
as of
 
31 December 2022,
 
total estimated
 
uninsured
deposits
 
were USD
 
365bn
 
(31 December
 
2021:
 
USD 395bn;
 
31 December
 
2020:
 
USD 383bn).
 
Uninsured
 
deposits
 
are
deposits that
 
are in
 
excess of
 
local deposit
 
insurance or
 
protection scheme
 
limits in
 
the key locations
 
in which
 
UBS AG
operates, calculated based on the
 
respective local regulations, as
 
well as deposits in
 
uninsured accounts. The main deposit
insurance
 
schemes
 
applicable
 
to
 
UBS
 
AG
 
deposits
 
are
 
the
 
Swiss
 
depositor
 
protection
 
scheme
 
in
 
Switzerland
 
(which
protects
 
applicable
 
deposits
 
up
 
to
 
a
 
maximum
 
of
 
CHF 100,000
 
per
 
client
 
and
 
per
 
bank
 
or
 
securities
 
firm),
 
the
Compensation Scheme of German Banks, in combination with the Deposit Protection
 
Fund of the Association of German
Banks in Germany (which protects applicable deposits up to
 
a maximum of EUR 456m per client) and the Federal Deposit
Insurance
 
Corporation
 
(the
 
FDIC)
 
scheme
 
in
 
the
 
Americas
 
(which
 
protects
 
applicable
 
deposits
 
up
 
to
 
a
 
maximum
 
of
USD 250,000 per depositor,
 
per insured bank, for each account ownership
 
category).
The table below presents the maturity of estimated uninsured time deposits as
 
of 31 December 2022. Where a depositor
holds multiple accounts, which
 
in aggregate are in excess of a deposit
 
insurance or protection limit, the insured
 
amount
is first allocated to the account with the shortest
 
time to maturity.
 
USD m
 
Uninsured time deposits
1
Within 3 months
 
93,308
3 to 6 months
 
10,963
6 to 12 months
 
7,564
Over 12 months
 
1,148
Total uninsured time deposits
 
as of 31 December 2022
 
112,983
1 Amounts are estimated based on the methodologies
 
defined in each local jurisdiction. As of 31
 
December 2022, there were
 
no US time deposits subject
 
to the FDIC scheme that were in excess
 
of the FDIC insurance
limit.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Additional
 
regulatory
 
information
 
|
 
UBS
 
AG
 
consolidated
 
supplemental
 
disclosures
 
required
 
under
 
SEC
 
regulations
 
509
 
Investments in debt instruments
The table below presents the carrying
 
amount and weighted average yield of
 
debt instruments presented within Financial
assets measured
 
at
 
fair value
 
through
 
other comprehensive
 
income and
 
Other financial
 
assets
 
measured
 
at amortized
cost on the balance sheet by contractual
 
maturity bucket. The yield for each
 
range of maturities is calculated by
 
dividing
the annualized
 
interest income by
 
the average balance
 
of the investment
 
per contractual maturity
 
bucket. The
 
maturity
information
 
presented
 
does not
 
consider any
 
early redemption
 
features and
 
debt instruments
 
without
 
fixed maturities
are not included.
 
Within 1 year
1 to 5 years
5 to 10 years
Over 10 years
USD m, except where indicated
Carrying
amount
Yield (%)
Carrying
amount
Yield (%)
Carrying
amount
Yield (%)
Carrying
amount
Yield (%)
Total
carrying
amount
Debt instruments measured at fair value
through other comprehensive income
Government bills / bonds
26
 
0.73
26
Corporate and other
2,093
 
2.64
119
 
2.48
2,213
Subtotal as of 31 December 2022
2,120
119
2,239
Debt securities measured at amortized
 
cost
 
Asset-backed securities
 
117
 
1.97
1,588
 
2.33
6,735
 
2.37
8,440
Government bills / bonds
8,584
 
1.27
6,236
 
1.97
4,403
 
1.67
1,837
 
2.46
21,060
Corporate and other
2,005
 
0.53
9,662
 
1.24
3,410
 
1.33
16
 
1.95
15,094
Subtotal as of 31 December 2022
10,589
16,015
9,402
8,588
44,594
Total as of 31 December 2022
12,708
16,135
9,402
8,588
46,833
 
 
 
 
Loan portfolio
The table below provides
 
the maturity profile of
 
UBS AG’s core loan
 
portfolio as of 31
 
December 2022. The
 
contractual
maturity
 
is
 
based
 
on
 
carrying
 
amounts
 
and
 
includes
 
the
 
effect
 
of
 
callable
 
features.
 
For
 
loans
 
due
 
after
 
one
 
year,
 
a
breakdown between
 
fixed and adjustable or floating interest rates
 
is also provided.
 
 
USD m
31.12.22
Within 1 year
 
1 to 5 years
5 to 15 years
Over 15 years
Total
 
of which: over 1 year
Fixed rate
Adjustable or
floating rate
Private clients with mortgages
 
15,056
 
83,223
 
31,854
 
26,797
 
156,930
 
76,707
 
65,166
Real estate financing
 
19,130
 
19,146
 
8,153
 
40
 
46,470
 
17,435
 
9,904
Large corporate clients
 
4,423
 
6,876
 
926
 
1
 
12,226
 
2,791
 
5,012
SME clients
 
6,647
 
4,644
 
2,612
 
0
 
13,903
 
3,393
 
3,863
Lombard
 
124,695
 
7,178
 
414
 
0
 
132,287
 
6,975
 
617
Credit cards
 
1,834
 
0
 
0
 
0
 
1,834
 
0
 
0
Commodity trade finance
 
3,158
 
110
 
4
 
0
 
3,272
 
4
 
110
Other loans and advances to customers
 
11,570
 
9,382
 
2,135
 
19
 
23,107
 
1,609
 
9,927
Loans to financial advisors
 
134
 
975
 
1,278
 
223
 
2,611
 
2,476
 
0
Total
 
186,648
 
131,535
 
47,376
 
27,080
 
392,638
 
111,391
 
94,600
 
 
 
Allowance for credit losses
For the years ended
 
31 December 2022
 
,
 
2021
 
and 2020,
 
the ratio of net
 
charge-offs (i.e.,
 
write-offs of expected
 
credit
loss allowances
 
to gross carrying
 
amount of
 
the average loans outstanding)
 
during the period was
 
not material for UBS
AG’s
 
core
 
loan
 
portfolio,
 
both
 
on
 
an
 
overall
 
basis
 
and
 
on
 
an
 
individual
 
loan
 
category
 
basis.
 
Total
 
write-offs
 
for
31 December
 
2022
 
were
 
USD 95m
 
(31 December
 
2021:
 
USD 137m,
 
31 December
 
2020:
 
USD 356m).
 
Refer
 
to
 
the
coverage ratio
 
tables in
 
“Note 9
 
Financial assets
 
at amortized
 
cost and
 
other positions
 
in scope
 
of expected
 
credit loss
measurement”
 
in
 
the
 
“Consolidated
 
financial
 
statements”
 
section
 
of
 
this
 
report
 
for
 
the
 
ratio
 
of
 
expected
 
credit
 
loss
allowances to total loans outstanding
 
at each period end.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Appendix
 
510
 
 
Appendix
Alternative performance measures
Alternative performance
 
measures
An alternative
 
performance measure (an APM)
 
is a
 
financial measure of
 
historical or
 
future financial performance, financial
position
 
or
 
cash
 
flows
 
other
 
than
 
a
 
financial
 
measure
 
defined
 
or
 
specified
 
in
 
the
 
applicable
 
recognized
 
accounting
standards or in other applicable regulations. We report
 
a number of APMs
 
in the discussion of the
 
financial and operating
performance of
 
the Group,
 
our business
 
divisions and our
 
Group Functions.
 
We use APMs
 
to provide
 
a more complete
picture
 
of
 
our
 
operating
 
performance
 
and
 
to
 
reflect
 
management’s
 
view of
 
the
 
fundamental
 
drivers
 
of
 
our
 
business
results.
 
A
 
definition
 
of
 
each
 
APM,
 
the
 
method
 
used
 
to
 
calculate
 
it
 
and
 
the
 
information
 
content
 
are
 
presented
 
in
alphabetical order
 
in the
 
table
 
below.
 
Our
 
APMs
 
may qualify
 
as non
 
-GAAP measures
 
as defined
 
by US
 
Securities
 
and
Exchange Commission (SEC) regulations.
 
 
APM label
Calculation
Information content
Active Digital Banking clients
 
in
Corporate & Institutional Clients (%)
– Personal & Corporate Banking
Calculated as the average number
 
of active clients for
each month in the relevant
 
period divided by the
average number of total clients. “Clients”
 
refers to the
number of unique business relationships
 
or legal
entities operated by Corporate
 
& Institutional Clients,
excluding clients that do not have
 
an account, mono-
product clients and
 
clients that have defaulted on loans
or credit facilities. At the end
 
of each month, any client
that has logged on at least
 
once in that month is
determined to be “active” (a log
 
-in time stamp is
allocated to all business relationship
 
numbers or per
legal entity in a digital banking contract).
This measure provides information
 
about the
proportion of active
 
Digital Banking clients in the total
number of UBS clients (within
 
the aforementioned
meaning) which are
 
serviced by Corporate &
Institutional Clients.
Active Digital Banking clients
 
in
Personal Banking (%)
– Personal & Corporate Banking
Calculated as the average number
 
of active clients for
each month in the relevant
 
period divided by the
average number of total clients. “Clients”
 
refers to the
number of unique business relationships
 
operated by
Personal Banking, excluding persons under
 
the age of
15, clients who do not have a
 
private account, clients
domiciled outside Switzerland
 
and clients who have
defaulted on loans or credit
 
facilities. At the end of
each month, any client
 
that has logged on at least once
in that month is determined
 
to
 
be “active” (a log-in
time stamp is allocated
 
to all business relationship
numbers in a digital banking contract).
This measure provides information
 
about the
proportion of active
 
Digital Banking clients in the total
number of UBS clients (within
 
the aforementioned
meaning) who are serviced
 
by Personal Banking.
Active Mobile Banking clients in
Personal Banking (%)
– Personal & Corporate Banking
Calculated as the average number
 
of active clients for
each month in the relevant
 
period divided by the
average number of total clients. “Clients”
 
refers to the
number of unique business relationships
 
operated by
Personal Banking, excluding persons under
 
the age of
15, clients who do not have a
 
private account, clients
domiciled outside Switzerland
 
and clients who have
defaulted on loans or credit
 
facilities. At the end of
each month, any client
 
that has logged on via the
mobile app at least once in that month
 
is determined
to be “active” (a log
 
-in time stamp is allocated to all
business relationship numbers
 
in a digital banking
contract).
This measure provides information
 
about the
proportion of active Mobile Banking
 
clients in the
total number of UBS clients
 
(within the
aforementioned meaning)
 
who are serviced by
Personal Banking.
Cost / income ratio (%)
Calculated as operating expenses divided
 
by total
revenues.
This measure provides information
 
about the
efficiency of the business by comparing
 
operating
expenses with gross income.
Fee and trading income
 
for Corporate
& Institutional Clients (USD and CHF)
– Personal & Corporate Banking
Calculated as the total of
 
recurring net fee and
transaction-based income for
 
Corporate & Institutional
Clients.
This measure provides information
 
about the amount
of fee and trading income for
 
Corporate &
Institutional Clients.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Appendix
 
511
 
APM label
Calculation
 
Information content
Fee-generating assets (USD)
– Global Wealth
 
Management
Calculated as the sum of discretionary
 
and
nondiscretionary wealth
 
management portfolios
(mandate volume) and assets
 
where generated
revenues are predominantly
 
of a recurring nature, i.e.,
mainly investment, mutual, hedge and
 
private-market
funds where we have a distribution
 
agreement,
including client commitments into
 
closed-ended
private-market funds from
 
the date that recurring
fees are charged. Assets related
 
to our Global
Financial Intermediaries business are
 
excluded, as are
assets of sanctioned clients.
This measure provides information
 
about the volume
of invested assets that create a
 
revenue stream,
whether as a result of the nature
 
of the contractual
relationship with clients or
 
through the fee structure
of the asset. An increase
 
in the level of fee-generating
assets results in an increase
 
in the associated revenue
stream. Assets of sanctioned
 
clients are excluded from
fee-generating assets.
Fee-generating asset margin
 
(bps)
– Global Wealth
 
Management
Calculated as revenues from
 
fee-generating assets (a
portion of which is included in
 
recurring fee income
and a portion of which is included
 
in transaction-
based income, annualized as applicable)
 
divided by
average fee-generating assets
 
for the relevant
mandate fee billing period. For the
 
US, fees have
been billed on daily balances since
 
the fourth quarter
of 2020 and average fee-generating
 
assets are
calculated as the average of the monthly
 
average
balances. Prior to the fourth quarter
 
of 2020, billing
was based on prior quarter-end
 
balances, and the
average fee-generating assets
 
were thus the prior
quarter-end balance. For balances
 
outside of the US,
billing is based on prior month
 
-end balances and
average fee-generating assets are
 
thus the average of
the prior month-end balances.
This measure provides information
 
about the revenues
from fee-generating assets
 
in relation to their average
volume during the relevant
 
mandate fee billing
period.
Gross margin on invested assets (bps)
– Asset Management
Calculated as total revenues (annualized
 
as applicable)
divided by average invested assets.
This measure provides information
 
about the total
revenues of the business
 
in relation to invested assets.
Impaired loan portfolio as
 
a percentage
of total loan portfolio, gross (%)
– Global Wealth
 
Management,
 
Personal & Corporate Banking
Calculated as impaired loan
 
portfolio divided by total
gross loan portfolio.
This measure provides information
 
about the
proportion of impaired loan
 
portfolio in the total gross
loan portfolio.
Invested assets (USD and CHF)
– Global Wealth
 
Management,
 
Personal & Corporate Banking,
 
Asset Management
Calculated as the sum of managed
 
fund assets,
managed institutional assets,
 
discretionary and
advisory wealth management portfolios,
 
fiduciary
deposits, time deposits, savings
 
accounts, and wealth
management securities or brokerage
 
accounts.
This measure provides information
 
about the volume
of client assets managed by or deposited
 
with UBS for
investment purposes.
Investment products for Personal
Banking (USD and CHF)
 
– Personal & Corporate Banking
Calculated as the sum of investment
 
funds (including
UBS Vitainvest third-pillar
 
pension funds),
 
mandates
and third-party life insurance operated
 
in Personal
Banking.
This measure provides information
 
about the volume
of investment funds (including
 
UBS Vitainvest third-
pillar pension funds), mandates
 
and third-party life
insurance operated in Personal
 
Banking.
Net interest margin (bps)
– Personal & Corporate Banking
Calculated as net interest
 
income (annualized as
applicable) divided by average loans.
This measure provides information
 
about the
profitability of the business
 
by calculating the
difference between
 
the price charged for lending and
the cost of funding, relative
 
to loan value.
Net new fee-generating assets (USD)
– Global Wealth
 
Management
Calculated as the sum of the net amount
 
of fee-
generating asset inflows and outflows,
 
including
dividend and interest inflows into mandates
 
and
outflows from mandate
 
fees paid by clients during a
specific period. Excluded from
 
the calculation are the
effects on fee-generating assets
 
of strategic decisions
by UBS to exit markets
 
or services.
This measure provides information
 
about the
development of fee-generating assets
 
during a
specific period as a result of
 
net flows, excluding
movements due to market performance
 
and foreign
exchange translation, as well as the effects
 
on fee-
generating assets of strategic decisions
 
by UBS to exit
markets
 
or services.
Net new fee-generating asset
 
growth rate (%)
– Global Wealth
 
Management
Calculated as the sum of the net amount
 
of fee-
generating asset inflows and outflows
 
recorded
during a specific period (annualized
 
as applicable)
divided by total fee-generating
 
assets at the
beginning of the period.
This measure provides information
 
about the growth
of fee-generating assets during a
 
specific period as a
result of net new fee-generating
 
asset flows.
Net new investment products for
Personal Banking (USD and CHF)
– Personal & Corporate Banking
Calculated as the sum of the net amount
 
of inflows
and outflows of investment
 
products during a specific
period.
This measure provides information
 
about the
development of investment products
 
during a specific
period as a result of net
 
new investment product
flows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report 2022 |
Appendix
 
512
 
APM label
Calculation
 
Information content
Net new money (USD)
– Global Wealth
 
Management,
 
Asset Management
Calculated as the sum of the net amount
 
of inflows
and outflows of invested assets
 
(as defined in UBS
policy) recorded during
 
a specific period. Excluded
from the calculation are
 
the effects on invested assets
of strategic decisions by UBS to
 
exit markets
 
or
services. Net new money for
 
Global Wealth
Management is disclosed
 
on an annual basis. Net new
money is not measured for
 
Personal & Corporate
Banking.
This measure provides information
 
about the
development of invested assets
 
during a specific
period as a result of net
 
new money flows and
excludes movements due
 
to market performance,
foreign exchange translation,
 
dividends, interest and
fees, as well as the effects on
 
invested assets of
strategic decisions by UBS
 
to exit markets
 
or services.
Net profit growth (%)
Calculated as the change in net profit
 
attributable to
shareholders from continuing
 
operations between
current and comparison
 
periods divided by net profit
attributable to shareholders
 
from continuing
operations of the comparison period.
This measure provides information
 
about profit
growth since the
 
comparison period.
Pre-tax profit growth
 
(%)
Calculated as the change in net profit
 
before tax
attributable to shareholders
 
from continuing
operations between current
 
and comparison periods
divided by net profit before
 
tax attributable to
shareholders from continuing
 
operations of the
comparison period.
This measure provides information
 
about pre-tax
profit growth since the
 
comparison period.
Recurring net fee income
(USD and CHF)
– Global Wealth
 
Management,
 
Personal & Corporate Banking
Calculated as the total of
 
fees for services provided on
an ongoing basis, such as portfolio management
 
fees,
asset-based investment fund fees and
 
custody fees,
which are generated on
 
client assets, and
administrative fees for accounts.
This measure provides information
 
about the amount
of recurring net fee income.
Return on attributed equity (%)
Calculated as annualized business
 
division operating
profit before tax
 
divided by average attributed equity.
This measure provides information
 
about the
profitability of the business
 
divisions in relation to
attributed equity.
Return on common
 
equity tier 1
 
capital (%)
Calculated as annualized net profit
 
attributable to
shareholders divided by average
 
common equity tier 1
capital.
This measure provides information
 
about the
profitability of the business
 
in relation to common
equity tier 1 capital.
Return on equity (%)
Calculated as annualized net profit
 
attributable to
shareholders divided by average equity
 
attributable to
shareholders.
This measure provides information
 
about the
profitability of
 
the business in relation to equity.
Return on leverage ratio denominator,
gross (%)
Calculated as annualized total revenues
 
divided by
average leverage ratio denominator.
This measure provides information
 
about the revenues
of the business in relation to
 
the leverage ratio
denominator.
Return on tangible equity (%)
Calculated as annualized net profit
 
attributable to
shareholders divided by average equity
 
attributable to
shareholders less average
 
goodwill and intangible
assets.
This measure provides information
 
about the
profitability of the business
 
in relation to tangible
equity.
Tangible
 
book value per share
(USD)
Calculated as equity attributable to
 
shareholders less
goodwill and intangible assets divided
 
by the number
of shares outstanding.
This measure provides information
 
about tangible net
assets on a per-share basis.
Total
 
book value per share
 
(USD)
Calculated as equity attributable to
 
shareholders
divided by the number of shares
 
outstanding.
This measure provides information
 
about net assets
on a per-share
 
basis.
Transaction-based
 
income
 
(USD and CHF)
– Global Wealth
 
Management,
 
Personal & Corporate Banking
Calculated as the total of
 
the non-recurring portion of
net fee and commission income, mainly
 
composed of
brokerage and
 
transaction-based investment fund
fees, and credit
 
card fees, as well as fees for payment
and foreign exchange transactions,
 
together with
other net income from financial
 
instruments
measured at fair value
 
through profit or loss.
This measure provides information
 
about the amount
of the non-recurring portion
 
of net fee and
commission income, together
 
with other net income
from financial instruments
 
measured at fair value
through profit or loss.
 
 
 
 
 
 
 
Annual Report 2022 |
Appendix
 
513
 
 
Abbreviations frequently
 
used in our financial
 
reports
 
A
ABS
 
asset
-
backed securities
 
AG
 
Aktiengesellschaft
 
AGM
 
Annual General
 
Meeting of
shareholders
A
-
IRB
 
advanced internal ratings
-
based
AIV
 
alternative investment
vehicle
ALCO
 
Asset and Liability
Committee
AMA
 
advanced measurement
approach
AML
 
anti
-
money laundering
 
AoA
 
Articles of Association
 
APM
 
alternative performance
measure
ARR
 
alternative reference
 
rate
 
ARS
 
auction rate securities
 
ASF
 
available stable
 
funding
 
AT1
 
additional tier 1
 
AuM
 
assets under management
 
 
B
BCBS
 
Basel Committee
 
on
Banking Supervision
BIS
 
Bank for International
Settlements
BoD
 
Board of Directors
 
 
C
CAO
 
Cap
ital Adequacy
Ordinance
CCAR
 
Comprehensive
 
Capital
Analysis and
 
Review
CCF
 
credit conversion
 
factor
 
CCP
 
central counterparty
 
CCR
 
counterparty credit risk
 
CCRC
 
Corporate Culture
 
and
Responsibility
 
Committee
CDS
 
credit default swap
 
CEA
 
Commodity Exchange Act
 
CEO
 
Chief Executive Officer
 
CET1
 
common equity tier 1
 
CFO
 
Chief Financial
 
Officer
 
CGU
 
cash
-
generating unit
 
CHF
 
Swiss franc
 
CIO
 
Chief Investment Office
 
C&ORC
 
Compliance &
 
Operational
Risk Control
CRM
 
credit risk mitigation
 
(credit
risk) or comprehensive
 
risk
measure (market
 
risk)
CST
 
combined stress test
 
CUSIP
 
Committee on Uniform
Security Identification
Procedures
CVA
 
credit valuation adjustment
 
 
D
DBO
 
defined benefit obligation
 
DCCP
 
Deferred Contingent
Capital Plan
 
DE&I
 
diversity,
 
equity
and
inclusion
DFAST
 
Dodd
–
Frank act stress test
 
DM
 
discount margin
 
DOJ
 
US Department of
 
Justice
 
DTA
 
deferred tax asset
 
DVA
 
debit valuation adjustment
 
 
E
EAD
 
exposure at default
 
EB
 
Executive Board
 
EC
 
European Commission
 
ECB
 
European Central
 
Bank
 
ECL
 
expected credit loss
 
EGM
 
Extraordinary General
Meeting of shareholders
EIR
 
effective interest
 
rate
 
EL
 
expected loss
 
EMEA
 
Europe, Middle
 
East and
Africa
EOP
 
Equity Ownership Plan
 
EPS
 
earnings per share
 
ESG
 
environmental, social
 
and
governance
ESR
 
environme
ntal and social
risk
ETD
 
exchange
-
traded derivatives
 
ETF
 
exchange
-
traded fund
 
EU
 
European Union
 
EUR
 
euro
 
EURIBOR
 
Euro Interbank Offered
 
Rate
 
EVE
 
economic value of equity
 
EY
 
Ernst & Young
 
Ltd
 
 
F
FA
 
financial advisor
 
FCA
 
UK Financial Conduct
Authority
FDIC
 
F
ederal Deposit
 
Insurance
Corporation
FINMA
 
Swiss Financial
 
Market
Supervisory Authority
FMIA
 
Swiss Financial
 
Market
Infrastructure Act
FSB
 
Financial Stability
 
Board
 
FTA
 
Swiss Federal Tax
Administration
FVA
 
funding valuation
adjustment
FVOCI
 
fair value thr
ough other
comprehensive income
FVTPL
 
fair value through profit
 
or
loss
FX
 
foreign exchange
 
 
G
GAAP
 
generally accepted
accounting principles
GBP
 
pound sterling
 
GCRG
 
Group Compliance,
Regulatory & Governance
GDP
 
gross domestic product
 
GEB
 
Group
Executive Board
 
GHG
 
greenhouse gas
 
GIA
 
Group Internal Audit
 
GRI
 
Global Reporting Initiative
 
G
-
SIB
 
global systemically
important bank
 
H
HQLA
 
high-quality liquid
 
assets
 
I
IAS
 
International Accounting
Standards
IASB
 
International Accounting
Standards Board
IBOR
 
interbank offered
 
rate
 
IFRIC
 
International Financial
Reporting Interpretations
Committee
IFRS
 
International Financial
Reporting Standards
IRB
 
internal ratings
-
based
 
IRRBB
 
interest rate risk in
 
the
banking book
ISDA
 
International Swaps
 
and
Derivatives Association
ISIN
 
International Securities
Identification Number
 
 
 
 
Annual Report 2022 |
Appendix
 
514
 
 
Abbreviations frequently
 
used in our financial
 
reports (continued)
 
K
KRT
 
Key Risk Taker
 
 
L
LAS
 
liquidity
-
adjusted stress
 
LCR
 
liquidity coverage
 
ratio
 
LGD
 
loss given default
 
LIBOR
 
London Interbank Offered
Rate
LLC
 
limited liability company
 
LoD
 
lines of defense
 
LRD
 
leverage ratio denominator
 
LTIP
 
Long
-
Term
 
Incentive Plan
 
LTV
 
loan
-
to
-
value
 
 
M
M&A
 
mergers and acquisitions
 
MRT
 
Material Risk
 
Taker
 
 
N
NII
 
net interest income
 
NSFR
 
net stable funding ratio
 
NYSE
 
New York Stock
 
Exchange
 
 
O
OCA
 
own credit
adjustment
 
OCI
 
other comprehensive
income
OECD
 
Organisation for Economic
Co-operation and
Development
OTC
 
over
-
the
-
counter
 
 
P
PD
 
probability of default
 
PIT
 
point in time
 
P&L
 
profit or loss
 
POCI
 
purchased or originated
credit-impaired
 
Q
 
QCCP
 
Qualifying central
counterparty
R
RBC
 
risk
-
based capital
 
RbM
 
risk
-
based monitoring
 
REIT
 
real estate investment
 
trust
 
RMBS
 
residential
 
mortgage
-
backed securities
RniV
 
risks not in VaR
 
RoCET1
 
return on CET1 capital
 
RoU
 
right
-
of
-
use
 
rTSR
 
relative total shar
eholder
return
RWA
 
risk
-
weighted assets
 
 
S
SA
 
standardized approach
 
or
société anonyme
SA
-
CCR
 
standardized approach
 
for
counterparty credit risk
SAR
 
Special Administrative
Region of the People’s
Republic of China
SDG
 
Sustainable
 
Development
Goal
SEC
 
US
Securities and Exchange
Commission
SFT
 
securities financing
transaction
SI
 
sustainable
 
investing or
sustainable
 
investment
SIBOR
 
Singapore Interbank
Offered Rate
SICR
 
significant increase
 
in credit
risk
SIX
 
SIX Swiss Exchange
 
SME
 
small and
medium
-
sized
entities
SMF
 
Senior Management
Function
SNB
 
Swiss National
 
Bank
 
SOR
 
Singapore Swap
 
Offer Rate
 
SPPI
 
solely payments
 
of principal
and interest
SRB
 
systemically relevant
 
bank
 
SRM
 
specific risk measure
 
SVaR
 
stressed value
-
at
-
risk
 
T
TBTF
 
too big t
o fail
 
TCFD
 
Task
 
Force on Climate
-
related Financial
 
Disclosures
TIBOR
 
Tokyo
 
Interbank Offered
Rate
TLAC
 
total loss
-
absorbing capacity
 
TTC
 
through the cycle
 
 
U
USD
 
US dollar
 
 
V
VaR
 
value
-
at
-
risk
 
VAT
 
value added tax
 
 
 
 
 
This is a general list of the abbreviations frequently used in our financial reporting. Not all of the listed abbreviations may
appear in this particular report.
 
 
 
 
Annual Report 2022 |
Appendix
 
515
 
Information sources
 
Reporting publications
Annual publications
Annual
 
Report:
 
Published
 
in
 
English
,
 
this
 
single
-
volume
 
report
 
provides
 
descriptions
 
of:
 
our
 
Group
 
strategy
 
and
performance;
 
the
 
strategy
 
and
 
performance
 
of
 
the
 
business
 
divisions
 
and
 
Group
 
Functions;
 
risk,
 
treasury
 
and
 
capital
management; corporate
 
governance, corporate
 
responsibility and
 
our compensation
 
framework, including
 
information
about
 
compensation
 
for
 
the
 
Board
 
of
 
Directors
 
and
 
the
 
Group
 
Executive Board
 
members;
 
and
 
financial
 
information,
including the financial statements.
 
“Auszug aus
 
dem Geschäftsbericht
”:
 
This publication
 
provides a
 
German translation
 
of selected sections
 
of our
 
Annual
Report.
 
Compensation Report
: This report discusses our
 
compensation framework and provides information about compensation
for
 
the
 
Board
 
of
 
Directors
 
and
 
the
 
Group
 
Executive
 
Board
 
members.
 
It
 
is
 
available
 
in
 
English
 
and
 
German
(
“Vergütungsbericht
”) and represents
 
a component of the Annual Report.
Sustainability
 
Report
:
 
Published
 
in English,
 
our
 
Sustainability Report
 
provides
 
disclosures
 
on
 
environmental,
 
social
 
and
governance topics related to UBS
 
Group.
Diversity,
 
Equity
 
and
 
Inclusion
 
Report
:
 
This
 
report details
 
our
 
DE&I
 
priority areas
 
of focus,
 
our
 
strategic goals
 
and
 
our
approach to achieving them at UBS.
Quarterly publications
 
Quarterly financial
 
report:
 
This report
 
provides
 
an update
 
on
 
our performance
 
and
 
strategy (where
 
applicable) for
 
the
respective quarter. It is available in English.
 
The annual and
 
quarterly publications are
 
available in a fully
 
digital and .pdf
 
format at
ubs.com/investors
, under “Financial
information.”
 
Starting
 
with
 
our
 
Annual
 
Report
 
2022,
 
we
 
no
 
longer
 
provide
 
printed
 
copies,
 
in
 
any
 
language,
 
of
 
the
aforementioned annual
 
publications.
 
Other information
Website
The “Investor
 
Relations” website at
ubs.com/investors
 
provides the following information about
 
UBS: results-related news
releases;
 
financial
 
information,
 
including
 
results-related
 
filings
 
with
 
the
 
US
 
Securities
 
and
 
Exchange
 
Commission
 
(the
SEC); information
 
for shareholders,
 
including UBS
 
share price charts,
 
as well as
 
data
 
and dividend
 
information, and
 
for
bondholders; our corporate calendar; and presentations by management for investors and financial analysts. Information
is available online in English, with
 
some information also available in German.
Results presentations
Our
 
quarterly
 
results
 
presentations
 
are
 
webcast
 
live.
 
Recordings
 
of
 
most
 
presentations
 
can
 
be
 
downloaded
 
from
ubs.com/presentations
.
Messaging service
Email
 
alerts
 
to
 
news
 
about
 
UBS
 
can
 
be
 
subscribed
 
for
 
under
 
“UBS
 
News
 
Alert”
 
at
ubs.com/global/en/investor-
relations/contact/investor-services.html
. Messages are sent in English,
 
German, French or Italian, with an option
 
to select
theme preferences for such alerts.
Form 20-F
 
and other submissions to the US
 
Securities and Exchange
 
Commission
We file periodic reports and
 
submit other information
 
about UBS to the SEC.
 
Principal among these filings
 
is the annual
report on Form 20-F, filed pursuant
 
to the US
 
Securities Exchange Act of 1934.
 
The filing of Form 20
 
-F is structured as a
wraparound
 
document.
 
Most
 
sections
 
of
 
the
 
filing
 
can
 
be
 
satisfied by
 
referring
 
to
 
the
 
combined
 
UBS Group AG
 
and
UBS AG Annual
 
Report. However,
 
there is a
 
small amount
 
of additional
 
information in
 
Form 20-F
 
that is not
 
presented
elsewhere and is particularly targeted
 
at readers in the US. Readers
 
are encouraged to
 
refer to this additional disclosure.
Any document that we
 
file with the SEC is
 
available on the SEC’s
 
website:
sec.gov
. Refer to
ubs.com/investors
 
for more
information.
 
 
 
 
Annual Report 2022 |
Appendix
 
516
 
 
 
 
 
 
 
 
 
 
 
 
 
Cautionary Statement
 
Regarding Forward
 
-Looking Statements |
 
This report
 
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. Wh
 
ile 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.
 
The Russia–Ukraine war
 
has led to heightened volatility
 
across
global markets, exacerbated
 
global inflation, and slowed
 
global growth. In addition,
 
the war has caused significant population
 
displacement, and if the conflict
continues or escalates, the scale of disruption will increase and continue to cause shortages of vital commodities, including energy shortages and food insecurity,
and
 
may lead
 
to recessions
 
in OECD economies.
 
The coordinated
 
sanctions on
 
Russia and
 
Belarus, and
 
Russian and
 
Belarusian entities
 
and nationals,
 
and the
uncertainty as to whether the war will widen and intensify, may have significant adverse effects
 
on the market and macroeconomic conditions, including in ways
that cannot be
 
anticipated. This creates
 
significantly greater uncertainty
 
about forward
 
-looking statements. Other factors that
 
may affect our
 
performance and
ability to achieve
 
our plans, outlook and
 
other objectives also include,
 
but are not limited
 
to: (i) the degree to
 
which UBS is successful in
 
the ongoing 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;
(ii) the degree
 
to which
 
UBS is
 
successful in
 
implementing
 
changes to
 
its businesses
 
to meet
 
changing market, regulatory
 
and other
 
conditions; (iii)
 
increased
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, the effects of economic conditions, including increasing
 
inflationary
pressures,
 
market developments,
 
increasing geopolitical
 
tensions,
 
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,
 
including the COVID
 
-19 pandemic and the
 
measures taken to
 
manage it, which
have had and
 
may also continue to have
 
a significant adverse effect on
 
global and regional economic
 
activity, including
 
disruptions to global supply
 
chains and
labor market displacements; (v) changes in the availability of capital and funding, including any
 
changes in UBS’s credit spreads and ratings, 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 European
 
Union 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 Group in response
 
to legal and regulatory requirements, or other external 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
 
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 our
 
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; (xi
 
i) 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
 
our RWA,
 
as well
 
as the
 
amount
 
of capital
 
available
 
for return
 
to
shareholders; (xiii) the effects on UBS’s business, in particular cross-border banking, of sanctions, tax or regulatory
 
developments and of possible changes in UBS’s
policies and practices;
 
(xiv) 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;
 
(xv) 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; (xvi) UBS’s ability to implement new technologies
and business
 
methods, including
 
digital services
 
and
 
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;
 
(xvii) limitations
 
on the
 
effectiveness of
 
UBS’s internal
 
processes for
 
risk management,
 
risk control,
measurement
 
and modeling,
 
and of financial
 
models generally;
 
(xviii) 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 cyberattack threats from nation states; (xix) restrictions on the
ability of UBS Group
 
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; (xx) 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;
 
(xxi) 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 regulator
 
y
 
regimes; and (xxii) the effect
 
that these
or other factors or unanticipated events may
 
have on our reputation and the additional consequences
 
that this may have on our 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. Our
business and
 
financial performance
 
could be
 
affected
 
by other
 
factors identified
 
in
 
our 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 UBS’s Annual
 
Report on Form 20-F for the
 
year ended 31 December 2022. 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.
Rounding |
 
Numbers presented throughout this
 
report may not add up precisely to
 
the totals provided in the tables
 
and text. Percentages and percent
 
changes
disclosed in
 
text and tables
 
are calculated
 
on the basis
 
of unrounded
 
figures. Absolute changes
 
between reporting periods
 
disclosed in the
 
text, which
 
can be
derived from numbers presented
 
in related tables, are calculated on a rounded
 
basis.
Tables
 
|
 
Within tables, blank
 
fields generally indicate non
 
-applicability or that presentation
 
of any content would not
 
be meaningful, or
 
that information is not
available as
 
of the relevant date or
 
for the relevant period.
 
Zero values generally indicate
 
that the respective figure
 
is zero on an actual
 
or rounded basis. Values
that are zero on a
 
rounded basis can be either negative or
 
positive on an actual basis.
 
 
dev_UBS_AR_2022p545i0.gif
 
 
 
 
UBS Group AG
 
P.O. Box, CH-8098
 
Zurich
 
 
UBS AG
P.O. Box, CH-8098
 
Zurich
P.O. Box, CH-4002
 
Basel
 
ubs.com
 
 
 
 
 

What is the market capitalization of a company?

The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company.
In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares.

DISCLAIMER

CompaniesMarketCap is not associated in any way with CoinMarketCap.com
Stock prices are delayed, the delay can range from a few minutes to several hours.
Company logos are from the CompaniesLogo.com logo database and belong to their respective copyright holders. Companies Marketcap displays them for editorial purposes only.

Contact

For inquiries or if you want to report a problem write to hello@8marketcap.com

Links

- Privacy policy

- Terms and conditions

© 2025 CompaniesMarketcap.com