UBS Concerns Over Proposed Swiss Regulatory Changes

UBS has voiced its concerns regarding the Swiss government's recent regulatory proposals, noting the extreme increase in capital requirements as disproportionate and misaligned with international standards. Proposed measures include full deductions of investments in foreign subsidiaries and deferred tax assets from CET1 capital.

If implemented, UBS AG would need an additional USD 24bn to maintain its CET1 capital ratio, affecting its Group level capital ratio adversely. This would be on top of the USD 18bn needed due to the Credit Suisse acquisition.

The proposed changes won't take effect before 2027, allowing UBS time to maintain its return on capital goals. Meanwhile, UBS plans to engage in the consultation process, aiming to mitigate negative impacts on shareholders and uphold its financial objectives.