UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington,

D.C. 20549

_________________

FORM 6-K

REPORT OF FOREIGN PRIVATE

ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

Date: ~~February~~March 279, 2026

UBS Group AG

(Registrant's Name)

Bahnhofstrasse 45, 8001 Zurich, Switzerland

(Address of principal executive office)

Commission File Number: 1-36764

UBS AG

(Registrant's Name)

Bahnhofstrasse 45, 8001 Zurich, Switzerland

Aeschenvorstadt 1, 4051 Basel, Switzerland

(Address of principal executive offices)

Commission File Number: 1-15060

Indicate by check mark whether the registrants file or will file annual reports under cover of Form 20-F or Form

~~20-F or Form~~ 40-

Form 20-F

☒

Form 40-F

☐

This Form 6-K

consists of the

31 December 2025

Pillar 3 Report

of UBS Group

and significant regulated

subsidiaries

~~This~~and ~~Form 6~~sub-Kgroups, ~~consists of the news releases~~ which ~~appear~~appears immediately following this page.

Pillar 3 Report

31 December 2025

UBS Group and significant regulated subsidiaries

and sub-groups

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” and “UBS AG consolidated”

UBS AG and its consolidated subsidiaries

“Credit Suisse Group” and “Credit Suisse”

Credit Suisse Group AG and its consolidated subsidiaries,

before the acquisition by UBS

“UBS Group AG” and “UBS Group AG standalone”

UBS Group AG on a standalone basis

“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” and “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.

Table of contents

UBS Group

Section 1

Introduction and basis for preparation

Section 2

Key metrics

Section 3

Overview of risk-weighted assets

Section 4

Linkage between financial statements and

regulatory exposures

Section 5

Credit risk

Section 6

Counterparty credit risk

Section 7

Credit valuation adjustment

Section 8

Securitizations

Section 9

Market risk

Section 10

Operational risk

Section 11

Interest rate risk in the banking book

Section 12

Going and gone concern requirements

and eligible capital

Section 13

Total loss-absorbing capacity

Section 14

Leverage ratio

Section 15

Liquidity and funding

Section 16

Remuneration

Section 17

Requirements for global systemically

important banks and related indicators

Significant regulated subsidiaries and sub-groups

Section 1

Section 2

Section 3

Section 4

UBS Switzerland AG standalone

108

Section 5

UBS Europe SE consolidated

109

Section 6

UBS Americas Holding LLC consolidated

112

Section 7

Credit Suisse International standalone

Appendix

114

Abbreviations frequently used in our financial reports

116

Cautionary statement

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

27media ~~February~~and ~~2026~~journalists.

Adubs.com/media ~~hoc announcement pursuant to article 53 of the SIX Exchange Regulation Listing Rules~~

~~News~~Zurich ~~release~~+41-44-234-8500

~~Changes~~mediarelations@ubs.com ~~to the UBS Board of Directors~~

London +44-20-7567-4714

~~Agustín~~ubs-media-relations@ubs.com ~~Carstens and Luca Maestri nominated for election to the Board of Directors of UBS Group~~

New York +1-212-882-5858

AGmediarelations@ubs.com ~~and UBS AG at the 2026 Annual General Meetings in April~~

●Hong Kong SAR +852-2971-8200

●sh-mediarelations-ap@ubs.com

AsOffice ~~previously~~of ~~announced,~~the ~~Vice~~Group ~~Chairman~~Company ~~Lukas Gähwiler will be stepping down from the~~

~~Board~~Secretary ~~and Markus Ronner was nominated for election to the Board~~

~~Zurich/Basel, 27 February 2026 –~~ The ~~Board of Directors of UBS~~ Group AGCompany ~~announces~~Secretary ~~today the nomination~~

ofhandles ~~Agustín~~inquiries ~~Carstens~~directed ~~and Luca Maestri for election~~ to the ~~Board at the Annual General Meeting (AGM) on 15~~

~~April~~Chairman ~~2026.~~or ~~William C. Dudley and Jeanette Wong have decided not~~ to ~~stand~~other ~~for~~members ~~re-election.~~

~~Agustín Carstens (born 1958) served as General Manager~~ of the ~~Bank~~Board of ~~International~~Directors. ~~Settlements (BIS) from~~

UBS Group AG, Office of the

~~2017~~Group toCompany ~~June~~Secretary ~~2025. Prior to that, he was Governor of the Bank of Mexico from 2010 to 2017. During his time~~

~~policy~~PO ~~advisory committee of the International Monetary Fund (IMF)~~Box, ~~from~~CH-8098 ~~2015 to 2017. Earlier in his career~~Zurich, Switzerland

~~Carstens began his career in 1980 at the Bank of Mexico~~sh-company-secretary@ubs.com ~~He holds a Master’s degree and a PhD in Economics~~

~~accomplished~~Zurich ~~career.~~+41-44-235-6652

~~Luca~~Shareholder ~~Maestri (born 1963) is currently Vice President of Apple Inc’s Corporate~~ Services, ~~reporting to the CEO.~~

UBS’s Shareholder Services team,

~~2008~~a tounit ~~2011,~~of hethe ~~was~~Group ~~Senior~~Company ~~Vice President and CFO at Nokia Siemens Networks. Mr. Maestri spent two~~

~~decades~~Secretary’s ~~at General Motors (GM)~~office, ~~holding~~manages ~~various finance leadership roles across multiple countries, including~~

~~CFO~~relationships ~~for~~with GMshareholders ~~Europe based in Zurich~~ and ~~CFO for GM Brazil in Sao Paulo. He also led the Fiat Alliance at GM~~

~~Maestri~~the isregistration aof ~~highly~~UBS ~~renowned~~Group ~~executive~~AG ~~and leader in the technology industry.~~

~~UBS~~registered ~~Chairman~~shares. ~~Colm Kelleher commented: “I am delighted to share the nomination of Agustín Carstens and~~

~~Luca~~UBS ~~Maestri~~Group ~~for~~AG, ~~election~~Shareholder toServices ~~the Board. The addition of these two highly experienced leaders will further~~

~~strengthen~~PO ~~the~~Box, ~~Board’s~~CH-8098 ~~expertise~~Zurich, ~~bringing~~Switzerland ~~outstanding regulatory knowledge and extensive CFO skills. This~~

~~follows~~sh-shareholder-services@ubs.com ~~the earlier announcement of former UBS Group Executive Board member Markus Ronner’s~~

~~nomination~~Zurich as+41-44-235-6652 ~~Vice Chairman. I very much look forward to collaborating with them on the Board.”~~

~~Investor~~US ~~Relations~~Transfer Agent

~~Media~~For ~~Relations~~global registered share-related

Asinquiries ~~previously~~in ~~communicated,~~the ~~Lukas~~US. ~~Gähwiler has decided, after an exceptionally successful career spanning~~

45Computershare ~~years,~~Trust toCompany ~~retire~~NA ~~from his role as Vice Chairman of the Board of Directors and concluding his long career in~~

~~banking.~~PO HeBox ~~was~~43006 ~~appointed Vice Chairman in 2022 and acted as UBS’s representative within Switzerland’s~~

~~leading~~Providence, ~~trade~~RI, ~~associations and financial industry bodies. Furthermore~~02940-3006, asUSA ~~the final Chairman of Credit Suisse~~

~~William~~Shareholder C.online ~~Dudley~~inquiries: ~~and Jeanette Wong have also decided to step down after seven years on the Board. During~~

~~the Governance and Nominating Committee~~www. Mscomputershare.com/us/ ~~Wong was a member of the Audit Committee, the~~

~~Corporate~~investor-inquiries ~~Culture and Responsibility Committee and the Compensation Committee.~~

~~Chairman~~Shareholder ~~Colm~~website: ~~Kelleher and the members of the Board extend their gratitude to Lukas Gähwiler, William C.~~

~~Dudley~~computershare.com/investor ~~and Jeanette Wong for their unwavering commitment and significant contributions over the past~~

Calls from the US

~~UBS~~+1-866-305-9566 ~~Group AG and UBS AG~~

Calls from outside the US

~~Investor~~+1-781-575-2623 ~~contact~~

~~Media~~TDD ~~contact~~for hearing impaired

~~www.ubs.com/media~~+1-800-231-5469

~~Investor~~TDD ~~Relations~~for foreign shareholders

~~Media~~+1-201-680-6610 ~~Relations~~

~~(Registration~~Imprint ~~Number 033-91744 and 033-91744-05).~~

~~Investor~~Publisher: ~~Relations~~UBS Group AG, Zurich, Switzerland | ubs.com

~~Media~~Language: ~~Relations~~English

31 December 2025 Pillar 3 Report |

UBS Group | Introduction and basis for preparation

UBS Group

Introduction and basis for preparation

Scope of Basel III Pillar 3 disclosures

The

Basel

Committee

Banking

Supervision

(the

BCBS)

Basel III

capital

adequacy

framework

consists

three

complementary pillars. Pillar 1 provides a framework for measuring

minimum capital requirements for the credit, market

and operational risks faced by banks. Pillar 2 addresses the principles

of the supervisory review process, emphasizing the

need for

a qualitative

approach

to supervising

banks. Pillar 3

requires

banks to

publish a

range of

disclosures, mainly

covering risk, capital, leverage, liquidity and remuneration.

This

report

provides

Pillar 3

disclosures

for

the

UBS

Group

and

prudential

key

figures

and

regulatory

information

for

UBS AG consolidated and standalone, UBS Switzerland AG standalone, UBS Europe SE consolidated, and UBS

Americas

Holding LLC consolidated, as well as Credit Suisse International standalone, in the respective sections under “Significant

regulated subsidiaries and sub-groups”.

This

Pillar 3

Report

has

been

prepared

accordance

with

the

Swiss

Financial

Market

Supervisory

Authority

(FINMA)

Ordinance on the Disclosure Obligations of Banks and Securities Firms (the DisO-FINMA), the corresponding explanatory

notes and the underlying

BCBS Basel framework disclosure requirements.

The revised Capital Adequacy

Ordinance (the

CAO) that

incorporates the

final Basel III

standards into

Swiss law,

and the

five new

FINMA ordinances

(including the

DisO-FINMA) that contain the

implementing provisions for the

revised CAO, entered into

force on 1 January 2025.

The

DisO-FINMA

replaces

FINMA

Circular

2016/1

“Disclosure

–

banks”

and

incorporates

particular

new

and

revised

disclosure tables on risks and capital requirements.

As UBS

is a

systemically relevant

bank (an

SRB) under

Swiss banking

law, UBS

Group AG and

UBS AG are

required to

comply with regulations based on the Basel III framework as applicable to Swiss SRBs on a consolidated basis.

Local

regulators

may

also

require

the

publication

Pillar 3

information

subsidiary

sub-group

level.

Where

applicable, these local disclosures are provided under “Holding company and

significant regulated subsidiaries and sub-

groups” at

ubs.com/investors

Changes to Pillar 3 disclosure requirements

The DisO-FINMA includes new and revised annual tables as a result of the implementation of the final Basel III standards

in Switzerland.

›

Refer to “Changes to Pillar 3 disclosure requirements” in the “Introduction

and basis for preparation” section of the 31 March

2025 Pillar 3 Report, available under “Pillar 3 disclosures” at

ubs.com/investors

, for information about new and revised quarterly

tables as a result of the implementation of the final Basel III standards in Switzerland

›

Refer to “Changes to Pillar 3 disclosure requirements” in the “Introduction

and basis for preparation” section of the 30 June 2025

Pillar 3 Report, available under “Pillar 3 disclosures” at

ubs.com/investors

, for information about new and revised semi-annual

tables as a result of the implementation of the final Basel III standards in Switzerland

New annual tables

The following new tables have been introduced on an annual basis.

–

CVAA: General qualitative disclosure requirements related to CVA

–

CVAB: Qualitative disclosures for banks using the SA-CVA

–

OR1: Historical losses

–

OR2: Business indicator and subcomponents

–

OR3: Minimum required operational risk capital

The new

“MRB: Qualitative

disclosures for

banks using

the internal

models approach

(IMA)” annual

table is

not applicable

to UBS, as UBS does not apply the IMA for market risk.

Revised annual tables

The following annual tables have been revised.

–

CR9: IRB – Backtesting of probability of default (PD)

per portfolio. This table has been revised to reflect

the amended

definition of asset classes included in the DisO-FINMA.

–

ORA: General

qualitative information

on a

bank’s operational

risk framework.

This disclosure

has been

amended to

reflect

the

replacement

the

advanced

measurement

method

the

standardized

approach

for

determining

operational risk regulatory capital.

›

Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation”

section of the 30 June 2025

Pillar 3 Report, available under “Pillar 3 disclosures” at

ubs.com/investors

, for information about the amended definition of asset

classes as a result of the implementation of the final Basel III standards in Switzerland

31 December 2025 Pillar 3 Report |

UBS Group | Introduction and basis for preparation

Significant regulatory developments, disclosure requirements and other changes

Developments in Switzerland

In June 2025, the

Swiss Federal Council published regulatory

proposals that aim to

further strengthen banking stability

in Switzerland. Proposed measures to be submitted to the

Swiss Parliament for enactment would exclude

from common

equity tier 1 (CET1)

capital investments in

foreign subsidiaries

of systemically important

banks (SIBs), include

additional

requirements for

the recovery

and resolution

of SIBs,

add measures

to increase

the potential

for obtaining liquidity

via

the Swiss

National Bank

(the SNB),

introduce a

Senior Managers

Regime for

banks, and

provide additional

powers for

FINMA.

Proposed measures

at the

ordinance level

would exclude

capitalized software

and deferred

tax assets

(DTAs) on

temporary

differences

from

CET1

capital,

add

stricter

requirements

for

prudential

valuation

adjustments

(PVAs)

assets

and

liabilities,

require

suspension

interest

payments

for

additional

tier 1

(AT1)

capital

instruments

the

event

cumulative loss

over four

quarters, and

introduce measures

that aim

to enable

FINMA and

other authorities

to better

assess the

situation of

banks in

a liquidity

crisis. The

Swiss Federal

Council has

proceeded towards

implementation of

these recommendations through several legislative and regulatory packages.

A public consultation on proposed measures at

the ordinance level ended in September

2025. The Swiss Federal Council

is expected

to publish

final amendments

to the

ordinance in

the first

half of

2026, with

entry into

force not

expected

before January 2027.

A separate

public consultation

on proposed legislative

amendments to

capital requirements related

to foreign subsidiaries

ended in January 2026.

The proposed changes would

require the deduction of investments

in foreign subsidiaries of

SIBs

from CET1 capital. The

proposal states that the

amendments would enter

into force in 2028,

at the earliest,

starting with

a 65% deduction requirement in the

first year and increasing to 100%

by 5-percentage-point increments each year over

seven years. The Swiss Federal

Council is expected to submit

its proposal to the Swiss

Parliament in the first

half of 2026.

The Swiss Federal

Council is also

expected to launch

consultations on additional

legislative measures in

the summer of

2026, including

incremental requirements

for the

recovery and

resolution plans

of SIBs,

measures aimed

at increasing

the potential

for obtaining

liquidity via

the SNB,

the introduction

of an

enhanced accountability

framework for

senior

managers of banks,

and the provision

of additional powers

for FINMA. Following

the consultation, these

measures

are

expected to be submitted to the Parliament in

the first half of 2027, with entry into

force expected in 2028 or 2029.

addition, a public consultation on amendments to the Liquidity Ordinance

is expected to be launched in the summer of

2026.

The

proposals

are

expected

set

minimum

requirements

for

maintaining

borrowing

capacity

for

emergency

liquidity assistance

Estimated incremental capital from proposed changes to the capital framework

We currently estimate that UBS AG would

be required to hold additional CET1 capital

of around USD 22bn if all capital

measures were implemented as proposed by the Swiss Federal Council. This estimate includes around USD 20bn related

to the full

deduction of

UBS AG’s investments

in foreign subsidiaries,

of which

approximately USD 6bn would

be required

at the start

of the proposed

phase-in period and

around USD 3bn from

the potential deduction of

DTAs

on temporary

differences, capitalized software and PVAs.

The

incremental

CET1

capital

USD 22bn

UBS AG

would

increase

UBS Group AG’s

CET1

capital

ratio

around

18.5%, calculated

from its

target ratio

of around

14%. The

proposed measures

related to

DTAs on temporary

differences,

capitalized software

and PVAs

would eliminate

around

USD 11bn of

net CET1

capital at

UBS Group

AG, which,

as a

result of this elimination, would reduce the estimated CET1 capital ratio for the Group from 18.5% to 16.5%.

This

current

estimated

incremental

capital

USD 22bn

resulting

from

the

proposed

changes

Swiss

capital

requirements would be on top of the

additional capital UBS is required to hold

as a result of the acquisition

of the Credit

Suisse Group.

This includes around USD 9bn to remove the

regulatory concessions granted to Credit Suisse and around

USD 6bn to meet the

progressive add-on due to the

increased leverage ratio denominator

(LRD) and higher

market share

of the

combined business.

The phase-in

of the

capital requirements

relating to

the increases

in LRD

and market

commenced on 1 January 2026 and will be completed by 1 January 2030.

Altogether, if the proposed changes by the Swiss Federal Council were adopted as proposed,

UBS would be required to

hold around USD 37bn in additional CET1 capital.

These estimates

have been

calculated based

on our

balance sheet

at 31 December

2025, assume

that all

capital measures

are adopted as

currently proposed and

use an assumed CET1

capital ratio of 12.5%

for UBS AG, the

lower end of our

target

range

12.5–13.0%,

and

14.0%

for

UBS

Group

overall.

The

estimates

also

reflect

capital

repatriations

USD 3bn from UK subsidiaries planned for 2026.

The estimate

of UBS AG‘s

incremental

capital requirements

at 31 December

2025 is

around

USD 2bn lower

than the

estimate of USD 24bn we

published on 6 June 2025

in response to the Swiss

Federal Council proposal, which was

based

on our first quarter 2025

balance sheet (and USD 4bn lower

than the estimate of USD 26bn

based on UBS AG’s target

capital ratio of 12.5%). The reduction primarily results from accelerated repatriation of capital from UBS AG subsidiaries

enabled by the rapid wind-down of Non-core and Legacy, timely and successful execution of our integration plans, and,

in the

case of

the US,

improving profitability

expectations and

improvements in

our most

recent Internal

Capital Adequacy

Assessment Process (ICAAP) and Dodd-Frank Act Stress Test

(DFAST) results.

31 December 2025 Pillar 3 Report |

UBS Group | Introduction and basis for preparation

UBS AG’s CET1 capital

ratio of 14.2%

at 31 December 2025

reflects these accelerated

capital repatriations. As

previously

communicated, we expect UBS AG’s CET1 capital

ratio to remain above our target levels in the

near term, mainly due to

leverage ratio considerations driven by the weakening of the US dollar.

UBS’s position

UBS has

submitted responses

to the

consultations on

the proposed

measures at

the ordinance

level and

on legislative

amendments. UBS overall supports the Swiss Federal Council's objective of drawing lessons from the Credit Suisse

crisis

and

strengthening

the

regulatory

framework

with

targeted,

proportionate

and

internationally

aligned

measures.

However,

the proposed full deduction of foreign

subsidiaries from CET1 capital clearly does

not meet these criteria and

excessive.

addition,

UBS

has

outlined

that

the

proposed

regulatory

treatment

capitalized

software,

DTAs

temporary differences

and PVAs

is a

combination of

the maximum

requirements of

various jurisdictions

and does

not

give due consideration

to the ultimate

impact of

the overall

package, comparisons

to the capital

regimes in peer

countries

the

cost

such

extreme

measures.

Switzerland

already

has

one

the

strictest

regulatory

capital

regimes,

with

substantial progressive

capital surcharges

and a

conservative and

early implementation

the final

Basel III rules.

The

Swiss

Federal

Council’s

proposals

would

significantly

increase

the

requirements

and

would

contrast

sharply

with

developments across Europe, and in the

US, which have proposed,

or are expected to implement, less restrictive

capital

regimes.

›

Refer to “Developments in Switzerland” in the “Regulatory and legal developments” section of the UBS Group

Annual Report

2025, available under “Annual reporting” at

ubs.com/investors

, for more information

Developments related to the implementation of the final Basel III standards

In Switzerland,

the amendments

to the

CAO that

incorporate the

final Basel III

standards

into Swiss

law entered

into

force on 1 January 2025. The adoption of the final Basel III standards led to an USD 8.6bn reduction in the UBS Group’s

risk-weighted

assets

(RWA).

USD 6.5bn

increase

market

risk

RWA

resulting

from

the

implementation

the

Fundamental

Review

the

Trading

Book

(the

FRTB)

framework

was

than

offset

USD 9.0bn

reduction

operational risk RWA and

a USD 6.1bn reduction in credit

and counterparty credit risk RWA.

The output floor,

which is

being phased in until 2028, is currently not binding for the UBS Group. The final Basel III implementation in Switzerland

had a

cumulative net

impact on

UBS Group

of adding

around

USD 60bn of

RWA

since UBS

started preparing

for its

adoption with a series of model updates and methodology changes over the last ten years.

In January

2026, the

Prudential Regulation

Authority (the

PRA) published

its final

policy statements

implementing the

Basel 3.1 standards

in the

UK. Implementation

remains

set for

1 January 2027,

with full

phase-in by

1 January 2030,

except for the

implementation of the

internal model

approach for market

risk (the FRTB

Internal Model

Approach), which

has been

postponed to

1 January 2028.

The FRTB

regulation for

standardized and

advanced standardized

approaches

will apply from 1 January 2027. The impact of the UK Basel 3.1 regulations on UBS is expected to be immaterial.

In the

EU, the

final Basel III

requirements became

applicable as

of 1 January

2025, except

for the

FRTB regulation,

the

implementation of which has been delayed until 1 January 2027, as confirmed by the European Commission (the EC) in

September 2025. In addition, the

EC conducted a public consultation,

concluded in January 2026, on

policy options to

temporarily

mitigate

negative

impacts

stemming

from

the

absence

level

playing

field

with

regard

the

implementation of FRTB rules. UBS Europe SE is subject to Basel III regulations in the EU. The impact on UBS can only be

determined once the EC publishes its final decision.

In the

US, banking

agencies, including

the Federal

Reserve Board,

have been

discussing amendments

to their

original

proposals regarding the implementation of

the final Basel III standards.

We expect that a re-proposal will

be issued in the

first half

of 2026.

UBS Americas

Holding LLC

is subject

to the

US requirements.

The impact

on UBS

can only

be determined

once the US publishes its final rules.

Significant BCBS consultation papers

Machine-readable Pillar 3 disclosures

December

2025,

the

BCBS

issued

public

consultation

machine-readable

Pillar 3

disclosures.

The

consultation

proposes

make

the

data

disclosed

banks

available

machine-readable

format.

Pillar 3

disclosures

internationally active banks under the BCBS’s standards are an important source of their key risk metrics.

To make Pillar 3 disclosure data more accessible, the Committee is

proposing that such data should be made available in

standardized

machine-readable

formats

across

its

member

jurisdictions.

The

proposed

standard

would

introduce

requirement and technical specifications

to produce machine-readable quantitative

Pillar 3 disclosures, without changing

the

underlying

disclosure

requirements

for

banks.

National

supervisors

would

decide

whether

banks

should

publish

machine-readable Pillar 3 disclosures on their own websites or via a centralized data repository.

Other developments

Simplification of Pillar 3 disclosures

Starting

with

the

31 December

2025

Pillar 3

Report,

have

discontinued

the

annual

disclosure

the

section

“Comparison

A-IRB

approach

and

standardized

approach

for

credit

risk”.

This

section

has

been

replaced

the

quarterly “CMS1 –

Comparison of modelled

and standardized

RWA at

risk level”

table and

the semi-annual

“CMS2 –

Comparison of modelled and standardized RWA for credit risk at asset class level” table.

›

Refer to “Comparison of modelled and standardized RWA

at risk level” in the “Overview of risk-weighted assets” section of this

report for more information

31 December 2025 Pillar 3 Report |

UBS Group | Introduction and basis for preparation

Starting with

the 30 June

2025 Pillar 3

Report, we

have replaced

the “SEC2:

Securitization exposures

in the

trading book”

semi-annual table

with a

qualitative statement,

based on

immateriality, as

permitted by

the DisO-FINMA

general principles

of disclosure.

›

Refer to “Securitization exposures in the banking and trading books” in the “Securitizations” section of this

report for more

information

Capital returns

For the 2025 financial year, the Board of Directors (the BoD) plans to propose a dividend to UBS Group AG shareholders

of USD 1.10

per share.

Subject to approval

at the

Annual General Meeting,

scheduled for 15 April

2026, the dividend

will be paid on 23 April 2026 to shareholders of record on 22 April 2026. The ex-dividend date will be 21 April 2026 on

the SIX Swiss Exchange

and 22 April 2026 on

the New York Stock Exchange. We are committed

to progressive dividends

and plan to accrue for a mid-teens percent increase in dividend per share in 2026.

the

fourth

quarter

2025,

completed

our

planned

repurchases

USD 3bn.

intend

repurchase

USD 3bn of shares

in 2026 with

the aim to

do more. The

amount of additional

repurchases is subject

to further clarity

around the

future regulatory regime

in Switzerland, our

financial performance and

maintaining a CET1

capital ratio of

around 14%.

Beyond 2026, we intend to

continue to pursue a

progressive dividend complemented by share

repurchases that will be

calibrated based on our

financial results, our capital

ratio and the final

outcome and timing of

the implementation of the

new regulatory regime in Switzerland.

Frequency and comparability of Pillar 3 disclosures

The table

below summarizes

the reporting

frequency for

each disclosure

as per

the current

DisO-FINMA requirements

applicable to UBS.

In line

with these

FINMA-specified disclosure

requirements, including

with regard

to comparative

periods, we

provide

quantitative comparative

information as

of 30 September

2025 for

disclosures required

on a

quarterly basis,

as of

30 June

2025 for disclosures required on a semi-annual basis and as of 31 December 2024, prepared in accordance with FINMA

Circular 2016/1 “Disclosure – banks”, for disclosures required on an annual basis. Where specifically required by

FINMA

and / or the BCBS, we disclose comparative information for additional reporting dates.

Where required, movement commentary is aligned with the corresponding disclosure frequency required by FINMA and

always

refers to

the

latest comparative

period.

Throughout this

report, signposts

are

displayed at

the

beginning of

section, table or chart –

Annual |

Semi-annual |

Quarterly |

– indicating whether the disclosure

is provided annually, semi-annually

quarterly. A triangle symbol –



– indicates the end of the signpost.

›

Refer to the 31 March 2025, 30 June 2025 and 30 September 2025 Pillar 3 Reports, available under

“Pillar 3 disclosures” at

ubs.com/investors

, for more information about previously published quarterly movement commentary

›

Refer to the 30 June 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at

ubs.com/investors

, for more information about

previously published semi-annual movement commentary

31 December 2025 Pillar 3 Report |

UBS Group | Introduction and basis for preparation

The table below

outlines the annual,

semi-annual and quarterly

disclosure requirements

that are

satisfied in this

report

for UBS Group and significant regulated subsidiaries and sub-groups as applicable. Certain disclosure requirements may

met

inclusion

the

UBS

Group

Annual

Report

2025,

permitted

the

DisO-FINMA

general

principles

disclosure. In this case, references are provided to the respective pages in the UBS Group Annual Report 2025.

FINMA

reference

Disclosure title in this report

Section of this report

Page number

in this report

Annual disclosure requirements

OVA

Bank risk management approach

Section 1 Introduction and basis for preparation

10–11

LI1

Differences between accounting and regulatory scopes of consolidation and

mapping of financial statement categories with regulatory risk categories

Section 4 Linkage between financial statements and

regulatory exposures

23–24

LI2

Main sources of differences between regulatory exposure amounts and

carrying values in financial statements (under the regulatory scope of

consolidation)

Section 4 Linkage between financial statements and

regulatory exposures

LIA

–

Explanation of the differences between the IFRS Accounting Standards and

regulatory scopes of consolidation

–

Fair value measurement

Section 4 Linkage between financial statements and

regulatory exposures

CRA

General qualitative information about credit risk

Section 5 Credit risk

CRB

Additional disclosure related to the credit quality of assets:

–

Breakdown of exposures by industry

–

Breakdown of exposures by geographical area

–

Breakdown of exposures by residual maturity

–

Policies for past due, non-performing and credit-impaired claims

–

Credit-impaired exposures by industry

–

Credit-impaired exposures by geographical area

–

Past due exposures

–

Definition of restructured exposure

–

Breakdown of restructured exposures between credit-impaired and non-

credit-impaired

Section 5 Credit risk

CRC

Qualitative disclosure requirements related to credit risk mitigation

techniques

Section 5 Credit risk

CRD

Qualitative disclosures on banks’ use of external credit ratings under the

standardized approach for credit risk

Section 5 Credit risk

CRE

Qualitative disclosure related to IRB models:

–

Main features of our key credit risk models

–

Additional qualitative disclosure related to IRB models

Section 5 Credit risk

39–40

CR9

IRB – Backtesting of probability of default (PD) per portfolio

Section 5 Credit risk

50–53

CCRA

Qualitative disclosure related to CCR

Section 6 Counterparty credit risk

CVAA

General qualitative disclosure requirements related to CVA

Section 7 Credit valuation adjustment

CVAB

Qualitative disclosures for banks using the SA-CVA

Section 7 Credit valuation adjustment

SECA

Qualitative disclosure requirements related to securitization exposures

Section 8 Securitizations

64–65

MRA

Qualitative disclosure requirements related to market risk

Section 9 Market risk

ORA

General qualitative information on a bank’s operational

risk framework

Section 10 Operational risk

OR1

Historical losses

Section 10 Operational risk

72–73

OR2

Business indicator and subcomponents

Section 10 Operational risk

OR3

Minimum required operational risk capital

Section 10 Operational risk

IRRBBA

IRRBB risk management objectives and policies

Section 11 Interest rate risk in the banking book

IRRBB1

Quantitative information on IRRBB

Section 11 Interest rate risk in the banking book

74–75

IRRBBA1

Quantitative disclosures relating to the position structure and interest rate

reset of IRRBB risk

Section 11 Interest rate risk in the banking book

75–76

PV1

Prudent valuation adjustments (PVA)

Section 12 Going and gone concern requirements and

eligible capital

LIQA

Liquidity risk management

Section 15 Liquidity and funding

REMA

REM1

REM2

REM3

Remuneration policy

Remuneration awarded during the financial year

Special payments

Deferred remuneration

Section 16 Remuneration

GSIB1

Disclosure of G-SIB indicators

Section 17 Requirements for global systemically important

banks and related indicators

31 December 2025 Pillar 3 Report |

UBS Group | Introduction and basis for preparation

FINMA

reference

Disclosure title in this report

Section of this report

Page number

in this report

Semi-annual disclosure requirements

CMS2

Comparison of modelled and standardized RWA for credit risk at asset class

level

Section 3 Overview of risk-weighted assets

20–21

CR1

Credit quality of assets

Section 5 Credit risk

CR2

Changes in stock of defaulted loans, debt securities and off-balance sheet

exposures

Section 5 Credit risk

CR3

Credit risk mitigation techniques – overview

Section 5 Credit risk

31–32

CR4

Standardized approach – credit risk exposure and credit risk mitigation (CRM)

effects

Section 5 Credit risk

33–34

CR5

Standardized approach – exposures by asset classes and risk weights

Section 5 Credit risk

35–38

CR5

Exposure amounts and CCFs applied to off-balance sheet exposures,

categorised based on risk bucket of converted exposures

Section 5 Credit risk

CR6

IRB – Credit risk exposures by portfolio and PD range

Section 5 Credit risk

41–47

CR7

Qualitative statement about the materiality of the impact on RWA of credit

derivatives

used as CRM techniques

Section 5 Credit risk

CR10

IRB – specialized lending under the slotting approach

Section 5 Credit risk

CCR1

Analysis of counterparty credit risk (CCR) exposure by approach

Section 6 Counterparty credit risk

CCR3

Qualitative statement about the materiality of CCR exposures subject to the

standardized approach

Section 6 Counterparty credit risk

CCR4

IRB – CCR exposures by portfolio and PD scale

Section 6 Counterparty credit risk

57–59

CCR5

Composition of collateral for CCR exposure

Section 6 Counterparty credit risk

CCR6

Credit derivatives exposures

Section 6 Counterparty credit risk

CCR8

Exposures to central counterparties

Section 6 Counterparty credit risk

CVA2

The full basic approach for CVA (BA-CVA)

Section 7 Credit valuation adjustment

63–64

CVA3

The standardized approach for CVA (SA-CVA)

Section 7 Credit valuation adjustment

SEC1

SEC2

SEC3

SEC4

Securitization exposures in the banking book

Qualitative statement about the materiality of securitization exposures in the

trading book

Securitization exposures in the banking book and associated regulatory

capital requirements – bank acting as originator or as sponsor

Securitization exposures in the banking book and associated regulatory

capital requirements – bank acting as investor

Section 8 Securitizations

67–68

69–70

MR1

Market risk under standardized approach

Section 9 Market risk

CC1

Composition of regulatory capital

Section 12 Going and gone concern requirements and

eligible capital

81–82

CC2

Reconciliation of accounting balance sheet to balance sheet under the

regulatory scope of consolidation

Section 12 Going and gone concern requirements and

eligible capital

79–80

CCA

Main features of regulatory capital instruments and of other TLAC-eligible

instruments

n/a – The CCA table is published on our website. Refer to

the document titled “Capital and total loss-absorbing

instruments of UBS Group AG consolidated, UBS AG

consolidated and standalone – Key features”, available

under “Bondholder information” at

ubs.com/investors

, for

more information.

n/a

CCyB1

Geographical distribution of credit exposures used in the countercyclical

capital buffer

Section 12 Going and gone concern requirements and

eligible capital

TLAC1

TLAC composition for G-SIBs (at resolution group level)

Section 13 Total loss-absorbing capacity

TLAC2

Material sub-group entity – creditor ranking at legal entity level

Significant regulated subsidiaries and sub-groups:

Section 6 UBS Americas Holding LLC consolidated

Section 7 Credit Suisse International standalone

111

113

TLAC3

Creditor ranking at legal entity level for the resolution entity,

UBS Group AG

Section 13 Total loss-absorbing capacity

LIQ2

Net stable funding ratio (NSFR)

Section 15 Liquidity and funding

ENC

Asset encumbrance

Section 15 Liquidity and funding

92–93

–

Definitions of credit risk and counterparty credit risk RWA movement table

components for CR8 and CCR7

Section 5 Credit risk

31 December 2025 Pillar 3 Report |

UBS Group | Introduction and basis for preparation

FINMA

reference

Disclosure title in this report

Section of this report

Page number

in this report

Quarterly disclosure requirements

KM1

Key metrics

UBS Group:

Section 2 Key metrics

Significant regulated subsidiaries and sub-groups:

Section 2 UBS AG consolidated

Section 3 UBS AG standalone

Section 4 UBS Switzerland AG standalone

Section 5 UBS Europe SE consolidated

Section 6 UBS Americas Holding LLC consolidated

Section 7 Credit Suisse International standalone

14–15

96–97

100–101

104–105

108

109–110

112

KM2

Key metrics – TLAC requirements (at resolution group level)

Section 2 Key metrics

14–15

OV1

Overview of RWA

Section 3 Overview of risk-weighted assets

16–17

CMS1

Comparison of modelled and standardized RWA at risk level

Section 3 Overview of risk-weighted assets

17–20

CR8

RWA flow statements of credit risk exposures under IRB

Section 5 Credit risk

CCR7

RWA flow statements of CCR exposures under internal model method (IMM)

and value-at-risk (VaR)

Section 6 Counterparty credit risk

CVA4

RWA flow statements of CVA risk exposures under SA-CVA

Section 7 Credit valuation adjustment

LR1

Summary comparison of accounting assets vs leverage ratio exposure

measure

Section 14 Leverage ratio

85–86

LR2

Leverage ratio common disclosure

Section 14 Leverage ratio

87–88

LIQ1

Liquidity coverage ratio (LCR)

Section 15 Liquidity and funding

Annex 3

Swiss SRB going and gone concern requirements and information

UBS Group:

Section 12 Going and gone concern requirements and

eligible capital

Significant regulated subsidiaries and sub-groups:

Section 2 UBS AG consolidated

Section 3 UBS AG standalone

Section 4 UBS Switzerland AG standalone

98–99

101–103

106–107

–

High-quality liquid assets (HQLA)

Section 15 Liquidity and funding

Disclosure requirement per DisO-FINMA.

Format of Pillar 3 disclosures

As defined by FINMA, certain

Pillar 3 disclosures follow a fixed format,

whereas other disclosures are flexible and may be

modified to

a certain

degree

to present

the most

relevant

information. Pillar 3

requirements

are

presented

under the

relevant FINMA table / template reference (e.g.

OVA, OV1, LI1, etc.). Pillar 3 disclosures may

also include row labeling (1,

2, 3, etc.)

as prescribed by FINMA.

Naming conventions used

in our Pillar 3

disclosures are based on

FINMA guidance and

may not reflect UBS naming conventions.

31 December 2025 Pillar 3 Report |

UBS Group | Introduction and basis for preparation

Asset classes used in the Pillar 3 Report

The DisO-FINMA includes an amended definition of asset classes.

›

Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation”

section of the 30 June 2025

Pillar 3 Report, available under “Pillar 3 disclosures” at

ubs.com/investors

, for more information about the amended definition of

asset classes as a result of the implementation of the final Basel III standards in

Switzerland

The amended FINMA-defined asset classes used within this Pillar 3 Report are as follows.

Asset classes under the standardized approach

–

Central governments,

central banks and supranational organizations,

consisting of exposures relating to

governments

the

level

the

nation

state

and

their

central

banks,

well

supranational

organizations.

Supranational

organizations include the Bank for International Settlements, the

International Monetary Fund, the European Central

Bank and the European Union.

–

Public sector entities, consisting

of exposures to institutions

established on the basis

of public law in

different forms,

such as administrative entities and public companies, as well as regional governments.

–

Multilateral development banks, consisting of exposures

relating to supranational financial institutions recognized

FINMA.

–

Banks and securities firms, consisting of exposures to financial institutions that

are licensed to take deposits from the

public and

are subject

to appropriate

prudential standards

and levels

of supervision.

Non-Swiss financial

institutions

other than

banks may

be assigned

to this

asset class

if they

are subject

to prudential

standards and

a level

of supervision

equivalent to that of banks.

–

Covered bonds, consisting

of Swiss covered

bonds issued under

the Swiss covered

bonds regulation (

Pfandbriefgesetz

)

and foreign covered bonds that meet the requirements for risk weighting as such.

–

Corporates,

consisting

general

corporate

exposures,

specialized

lending

exposures

and

exposures

small

and

medium-sized entities (SMEs) that are considered corporate SMEs.

–

Retail, consisting of exposures to natural persons and to SMEs that meet the “regulatory retail” criteria.

–

Real estate, consisting of exposures secured directly or indirectly by real estate.

–

Equity, consisting of

instruments that have

no stated or

predetermined maturity and

represent a residual

interest in the

net assets of an entity.

–

Subordinated claims, consisting of subordinated debt and capital instruments other than equities.

–

Defaulted exposures, consisting of exposures that are past due or are exposures to defaulted borrowers.

–

Other assets, consisting of

the remainder of exposures

that UBS is exposed

to, mainly non-counterparty-related

assets.

Asset classes under the advanced internal ratings-based approach

–

Central governments,

central banks and supranational organizations.

–

Corporates:

specialized

lending,

consisting

exposures

relating

income-producing

real

estate

lending,

project

finance, object finance and commodities finance.

–

Corporates: other lending,

consisting of all

exposures to corporates

that are

not specialized lending.

This asset

class

includes private commercial

entities, such as

corporations, partnerships or

proprietorships, insurance companies

and

funds (including managed funds).

–

Retail: exposures

secured by

real estate,

consisting of

exposures secured

directly or

indirectly by

mortgages that

are

secured fully or partially by residential or commercial real estate.

–

Retail:

qualifying

revolving

retail

exposures

(QRRE),

consisting

unsecured

and

revolving

credits

individuals,

including credit card receivables.

–

Retail: other retail, consisting

primarily of Lombard lending

that represents loans made

against the pledge of

eligible

marketable

securities

cash,

well

exposures

small

businesses,

private

clients

and

other

retail

customers,

excluding exposures secured by real estate.

Asset classes

under the foundation internal ratings-based approach

–

Banks, consisting of exposures to banks, securities firms and other financial institutions treated as banks.

–

Public sector entities, multilateral development banks.

–

Corporates: other lending, consisting of exposures to large corporate clients.

Governance over Pillar 3 disclosures

The BoD and senior management are responsible for establishing and maintaining an effective internal control structure

over the disclosure

of financial information,

including Pillar 3 disclosures.

In line with

BCBS and FINMA

requirements, UBS

has

BoD-approved

Pillar 3 disclosure

governance policy

in place,

which

includes information

about

the key

internal

controls

and procedures

designed to

govern the

preparation, review

and sign-off

of Pillar 3

disclosures. UBS’s

Pillar 3

framework has been

amended to take

account of the

Group structure

after the acquisition

of the Credit

Suisse Group

and will continue to be refined

as the integration progresses.

This Pillar 3 Report has been verified and

approved in line

with UBS’s Pillar 3 framework.

31 December 2025 Pillar 3 Report |

UBS Group | Introduction and basis for preparation

Risk management framework

Our Group-wide

risk management framework

is applied

across all

risk types.

The table

below presents

an overview

risk management

disclosures that

are provided separately

in the

UBS Group

Annual Report

2025, available

under “Annual

reporting” at

ubs.com/investors

Annual |

OVA: Bank risk management approach

Pillar 3 disclosure requirement

UBS Group Annual Report 2025 section

Disclosure

UBS Group Annual Report 2025

page number

Interaction between business

model, risk profile and risk

tolerance

Our strategy, business model and

environment

–

Market environment,

Industry trends

–

Risk factors

28–33

50–61

Risk management and control

–

Top and emerging risks

–

Risk identification

–

Risk categories

–

Overview of risks arising from our business

activities

–

Risk appetite framework

–

Risk management and control principles

–

Risk measurement

–

Credit risk

–

Main sources of credit risk, Overview

of measurement, monitoring and management

techniques, Credit risk profile of the Group

–

Market risk

–

Main sources of market risk,

Overview of measurement, monitoring and

management techniques

–

Interest rate risk in the banking book

–

Other market risk exposures

–

Country risk framework, Country risk exposure

–

Non-financial risk framework

88–89

90–91

94–96

96–98

111–112

115–117

117–118

118–120

127

Risk governance structure

Risk management and control

–

Risk categories

–

Risk governance

–

Interest rate risk in the banking book

–

Risk

management and governance

90–91

92–94

115

Capital management

–

Capital management objectives, planning and

activities

131

Liquidity and funding management

–

Strategy, objectives and governance

142

Communication and enforcement

of risk culture within the bank

Risk management and control

–

Risk governance

–

Internal risk reporting

–

Risk appetite framework

–

Non-financial risk framework

92–94

94–96

127

Scope and main features of risk

measurement systems

Risk management and control

–

Risk measurement

–

Credit risk

–

Overview of measurement, monitoring

and management techniques

–

Market risk

–

Overview of measurement,

monitoring and management techniques

–

Country risk exposure measure

–

Non-financial risk capital measurement

96–98

112

119

129

Risk information reporting provided

to the BoD and senior

management

Risk management and control

–

Risk governance

–

Internal risk reporting

–

Risk management and control principles

92–94

Stress testing

Risk management and control

–

Risk appetite framework

–

Stress testing

–

Credit risk models

–

Stress loss

–

Market risk stress loss

–

Interest rate risk in the banking book

–

Other market risk exposures

94–96

97–98

108

112

115–117

117–118

Liquidity and funding management

–

Liquidity and funding stress testing

142–143

31 December 2025 Pillar 3 Report |

UBS Group | Introduction and basis for preparation

Pillar 3 disclosure requirement

UBS Group Annual Report 2025 section

Disclosure

UBS Group Annual Report 2025

page number

Strategies and processes applied to

manage, hedge and mitigate risks

Risk management and control

–

Risk management and control principles

–

Credit risk

–

Overview of measurement, monitoring

and management techniques

–

Credit risk mitigation

–

Market risk

–

Overview of measurement,

monitoring and management techniques

–

Market risk

–

Value-at-risk

–

Interest rate risk in the banking book

–

Other market risk exposures

–

Country risk exposure

–

Non-financial

risk framework

104–106

112

112–115

115–117

117–118

119–120

127

Liquidity and funding management

–

Strategy, objectives and governance

–

Management of liquidity and funding risk

142

143–144

Currency management

–

Strategy, objectives and governance

151

Consolidated financial

statements

–

Note 10 Derivative instruments

–

Note 20 h) Maximum exposure to credit risk for

financial

instruments

measured

fair value

–

Note 21 Offsetting

financial

assets and

financial

liabilities

289–290

328

330–331



Our approach to measuring risk exposure and risk-weighted assets

Depending on

the intended

purpose, the

measurement of

risk exposure

that we

apply may

differ.

Exposures may

measured

for

financial

accounting

purposes

under

IFRS

Accounting

Standards

for

deriving

our

regulatory

capital

requirement

for

internal

risk

management

and

control

purposes.

Our

Pillar 3

disclosures

are

generally

based

measures of risk exposure

used to derive

the regulatory capital

required under Pillar 1. Our

RWA are calculated according

the

revised

CAO

that

incorporates

the

BCBS

final

Basel III

framework

into

Swiss

law,

including

the

new

FINMA

ordinances containing the implementing provisions for the revised CAO.

The table below provides a summary of the approaches we use for the

main risk categories to determine the regulatory

risk exposure and RWA.

Category

Definition of risk

Regulatory risk exposure

Risk-weighted assets

Securitization exposures in the banking book

Securitization

exposures in the

banking book

Exposures arising from traditional and

synthetic securitizations held in our banking

book.

Refer to section 8, Securitizations.

The balance sheet carrying amount in line with

IFRS Accounting Standards after eligible

regulatory credit risk mitigation and credit

conversion factors is used for measuring

securitization exposures. For synthetic

securitization transactions, the exposure is

equal to the net exposure at default on

retained positions. Exposure values consist of

securitization exposures that UBS has retained

or purchased into the banking book when

acting as originator and / or sponsor.

Consistent with the BCBS, we apply the FINMA-

defined hierarchy of approaches for banking book

securitizations to measure RWA.

–

Securitization internal ratings-based approach

(SEC-IRBA)

, considering the advanced IRB risk

weights, if the securitized pool largely consists of

IRB positions and internal ratings are available.

–

Securitization external ratings-based approach

(SEC-ERBA)

, if the IRB approach cannot be

applied, risk weights are applied based on

external ratings if we are able to demonstrate our

expertise in critically reviewing and challenging

the external ratings.

–

Securitization standardized approach (SEC-SA) or

1,250% risk weight factor

, if none of the

aforementioned approaches can be applied, we

apply the standardized approach where the

delinquency status of a significant portion of the

underlying exposure can be determined or

otherwise a risk weight of 1,250%.

For re-securitization exposures we apply either the

standardized approach or a risk weight factor of

1,250%.

VI. Market risk

Market risk

Market risk is the risk of loss resulting from

adverse movements in market variables.

Market variables include observable factors,

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.

Refer to section 9, Market risk.

We apply the standardized approach which

encompasses three components: the sensitivities-

based method (the SBM), the default risk charge (the

DRC) and the residual risk add-on (the RRAO). The

SBM captures the delta, vega and curvature risk of

the underlying trading positions, and the DRC

captures the jump-to-default risk in positions subject

to equity and credit risk. In addition, positions that

may not be adequately capitalized by the SBM and

the DRC additionally attract an RRAO charge.

Securitization /

re-securitization in

the trading book

Risk arising from traditional and synthetic

securitizations held in our trading book.

Refer to section 8, Securitizations and

section 9, Market risk.

The exposure is equal to the fair value of the

net long or short securitization position.

We measure trading book securitization RWA using

the

standardized approach

VII. Operational risk

Operational

risk

Operational risk is the risk of loss resulting

from inadequate or failed internal processes,

people or systems, or from external causes

(deliberate, accidental or natural), including

cybersecurity and information-security risk.

Operational risk includes, among others,

legal

risk, conduct risk and compliance risk.

Refer to section 10, Operational risk.

We use the

standardized approach

to measure

operational risk RWA in accordance with FINMA

requirements.

31 December 2025 Pillar 3 Report |

UBS Group | Key metrics

Key metrics

Key metrics for the fourth quarter of 2025

Quarterly |

The KM1

and KM2

tables below

are based

on the

Swiss Financial

Market Supervisory

Authority (FINMA)

Ordinance

on the

Disclosure Obligations of

Banks and Securities

Firms (DisO-FINMA) rules.

The KM2 table

includes a reference

the total loss-absorbing capacity (TLAC)

term sheet, published by the

Financial Stability Board (the FSB).

The FSB provides

this term sheet at

fsb.org/2015/11/total-loss-absorbing-capacity-tlac-principles-and-term-sheet

Our capital ratio decreased, reflecting a decrease

in our tier 1 capital, partly offset by

a decrease in risk-weighted assets

(RWA). Our

leverage ratio

decreased, reflecting

a decrease

in tier 1

capital, partly

offset by

a decrease

in the

leverage

ratio denominator (the LRD).

Our

common

equity

tier 1

(CET1)

capital

decreased

USD 3.4bn

USD 71.3bn,

mainly

reflecting

operating

profit

before tax of

USD 1.7bn, which was

more than offset

by the recognition

of a new

USD 3.0bn capital reserve

for expected

future share

repurchases in

2026, dividend

accruals of

USD 1.1bn, a

negative USD 0.3bn

impact from

compensation-

and own-share-related

capital components,

a USD 0.3bn

decrease in

eligible deferred

tax assets

on temporary

differences,

and current

tax expenses

of USD 0.3bn.

Share repurchases

of USD 0.9bn

made under

our 2025

share repurchase

program

in the

fourth quarter

of 2025

did not

affect our

CET1 capital

position, as

there was

an equal

reduction in

the capital

reserve

for

expected

future

repurchases

2025.

The

remaining

capital

reserve

for

expected

future

repurchases in 2025 was

fully utilized in the

fourth quarter of 2025

with the completion of

our 2025 share repurchase

program on 20 November 2025.

Our tier 1 capital decreased by USD 3.8bn to USD 91.2bn, reflecting the aforementioned decrease in CET1 capital and a

USD 0.4bn decrease in additional tier 1 (AT1) capital. The AT1 capital decrease was mainly

driven by the call of one AT1

capital instrument equivalent to USD 0.4bn.

The TLAC available as of 31 December 2025 included CET1 capital, AT1 capital, tier 2 capital and non-regulatory capital

elements of TLAC.

Our available TLAC

decreased by USD 12.0bn

to USD 187.3bn, mainly

reflecting the aforementioned decrease

in tier 1

capital and an

USD 8.3bn decrease in

non-regulatory capital elements

of TLAC.

The decrease

in non-regulatory capital

elements of TLAC mainly

reflected USD 5.8bn of TLAC-eligible

senior unsecured debt instruments

that we repurchased

in November 2025 under

tender offers and the

redemption of TLAC-eligible senior

unsecured debt instruments for

the

equivalent of USD 5.5bn

(including one instrument,

ISIN US902613AU26, that

ceased to be

eligible when we

issued a

notice

redemption

the

instrument

the

fourth

quarter

2025).

These

decreases

were

partly

offset

new

issuances of TLAC-eligible senior unsecured debt instruments totaling the equivalent of USD 3.3bn.

During

the

fourth

quarter

2025,

RWA

decreased

USD 11.5bn

to USD 493.4bn,

mainly

driven

decreases

USD 4.5bn

from

market

risk

RWA,

USD 2.5bn

from

counterparty

credit

risk

RWA,

USD 2.3bn

from

credit

valuation

adjustment RWA,

USD 1.0bn from

operational risk

RWA and

USD 0.9bn from

RWA on

securitization exposures

in banking

book. The remaining variance was spread across other risk types.

During

the

fourth

quarter

2025,

the

LRD

decreased

USD 18.0bn

USD 1,622.4bn,

driven

USD 18.9bn

decrease from asset size and other movements, partly offset by a USD 0.8bn increase from currency effects.

The

quarterly average

liquidity coverage

ratio

the

UBS Group

remained broadly

unchanged at

182.6%, remaining

above

the

prudential

requirement

communicated

FINMA.

Average

net

cash

outflows

decreased

USD 8.7bn

USD 181.7bn, reflecting

higher net

inflows from

securities financing

transactions and

lower net

outflows from

derivatives.

The effect of

the decrease in

net cash outflows

was offset by

a USD 15.0bn decrease

in average high-quality

liquid assets,

mainly reflecting lower cash

available, due to

higher lending assets and

brokerage receivables, and lower

amounts due

to banks.

As of

31 December 2025, the

net stable funding

ratio of

the UBS Group

decreased 3.6 percentage points

to 116.1%,

remaining above

the prudential

requirement communicated

by FINMA.

Available stable

funding decreased

by USD 16.7bn

to USD 882.0bn, mainly driven by decreases in debt issued measured at amortized cost and regulatory capital. Required

stable funding

increased by

USD 8.9bn to

USD 759.8bn, mainly

reflecting higher

lending assets,

partly offset

by lower

derivatives and cash collateral receivables on derivative instruments.

31 December 2025 Pillar 3 Report |

UBS Group | Key metrics

KM1: Key metrics

USD m, except where indicated

31.12.25

30.9.25

30.6.25

31.3.25

31.12.24

Available capital (amounts)

Common Equity Tier 1 (CET1)

71,262

74,655

72,709

69,152

71,367

Tier 1

91,176

94,950

91,721

87,837

87,739

Total capital

91,201

94,950

91,721

87,837

87,739

Risk-weighted assets (amounts)

Total risk-weighted assets (RWA)

493,397

504,897

504,500

483,276

498,538

Total risk-weighted assets (pre-floor)

493,397

504,897

504,500

483,276

Minimum capital requirement

39,472

40,392

40,360

38,662

39,883

Risk-based capital ratios as a percentage of RWA

Common equity tier 1 ratio (%)

14.44

14.79

14.41

14.31

14.32

Common equity tier 1 ratio (%) (pre-floor)

14.44

14.79

14.41

14.31

Tier 1 ratio (%)

18.48

18.81

18.18

17.60

Tier 1 ratio (%) (pre-floor)

18.48

18.81

18.18

Total capital ratio (%)

18.48

18.81

18.18

17.60

Total capital ratio (%) (pre-floor)

18.48

18.81

18.18

Additional CET1 buffer requirements as a percentage of RWA

Capital conservation buffer requirement (%)

2.50

Countercyclical buffer requirement (%)

0.11

0.12

0.13

0.16

Additional countercyclical buffer for Swiss mortgage loans (%)

0.38

0.32

0.33

0.31

0.37

Bank G-SIB and / or D-SIB additional requirements (%)

1.50

1.00

Total of bank CET1 specific buffer requirements (%)

4.11

4.12

4.13

3.66

CET1 available after meeting the bank’s minimum capital requirements (%)

9.94

10.29

9.91

9.81

9.60

Basel III leverage ratio

Total Basel III leverage ratio exposure measure

1,622,438

1,640,464

1,658,089

1,561,583

1,519,477

Basel III leverage ratio (%) (including the impact of any applicable temporary

exemption of central bank reserves)

5.62

5.79

5.53

5.62

5.77

14b

Basel III leverage ratio (%) (excluding the impact of any applicable

temporary exemption of central bank reserves)

5.62

5.79

5.53

5.62

14c

Basel III leverage ratio (%) (including the impact of any applicable temporary

exemption of central bank reserves) incorporating mean values for SFT

assets

5.58

5.77

5.54

5.60

14d

Basel III leverage ratio (%) (excluding the impact of any applicable

temporary exemption of central bank reserves) incorporating mean values for

SFT assets

5.58

5.77

5.54

5.60

14e

Minimum capital requirements

48,673

49,214

49,743

46,848

Liquidity coverage ratio (LCR)

Total high-quality liquid assets (HQLA)

331,568

346,550

358,759

318,735

331,481

Total net cash outflow

181,693

190,359

196,846

176,190

176,008

16a

of which: cash outflows

390,134

388,343

385,105

362,013

347,761

16b

of which: cash inflows

208,441

197,984

188,259

185,823

171,753

LCR (%)

182.64

182.12

182.31

180.96

188.37

Net stable funding ratio (NSFR)

Total available stable funding

882,039

898,762

904,703

861,717

856,804

Total required stable funding

759,829

750,960

738,891

693,777

682,508

NSFR (%)

116.08

119.68

122.44

124.21

125.54

1 Calculated as 8% of total RWA,

based on total capital minimum requirements,

excluding CET1 buffer requirements.

2 Excludes non-BCBS capital buffer requirements

for risk-weighted positions that are directly

or indirectly backed by residential

properties in Switzerland.

3 Represents the CET1 ratio that

is available to meet buffer

requirements. Calculated as the

CET1 ratio minus the BCBS

CET1 capital requirement and,

where applicable, minus the BCBS

tier 2 capital requirement met with

CET1 capital.

4 There is currently no

temporary exemption of central bank

reserves for UBS.

5 The higher of capital

requirements based on

8% of RWA

or 3% of LRD.

6 Calculated after the application

of haircuts and

inflow and outflow rates,

as well as,

where applicable, caps

on Level 2 assets

and cash inflows.

Calculated based on an

average of

64 data points

in the

fourth quarter

of 2025

and 65

data points

in the

third quarter

of 2025.

For the

prior-quarter

data points,

refer to

the respective

Pillar 3

Report, available

under “Pillar

3 disclosures”

ubs.com/investors, for more information.

KM2: Key metrics – TLAC requirements (at resolution group level)

USD m, except where indicated

31.12.25

30.9.25

30.6.25

31.3.25

31.12.24

Total loss-absorbing capacity (TLAC) available

187,307

199,329

191,171

187,168

185,395

Total RWA at the level of the resolution group

493,397

504,897

504,500

483,276

498,538

TLAC as a percentage of RWA (%)

37.96

39.48

37.89

38.73

37.19

Leverage ratio exposure measure at the level of the resolution group

1,622,438

1,640,464

1,658,089

1,561,583

1,519,477

TLAC as a percentage of leverage ratio exposure measure (%)

11.54

12.15

11.53

11.99

12.20

Does the subordination exemption in the antepenultimate paragraph of

Section 11 of the FSB TLAC Term Sheet apply?

Does the subordination exemption in the penultimate paragraph of

Section 11 of the FSB TLAC Term Sheet apply?

If the capped subordination exemption applies, the amount of funding

issued that ranks pari passu with excluded liabilities and that is

recognized as external TLAC, divided by funding issued that ranks pari

passu with excluded liabilities and that would be recognized as external

TLAC if no cap was applied (%)

N/A – Refer to our response to 6b.

1 Resolution group level is defined as the UBS Group AG consolidated level.



31 December 2025 Pillar 3 Report |

UBS Group | Overview of risk-weighted assets

Overview of risk-weighted assets

Overview of risk-weighted assets and capital requirements

Quarterly |

The OV1 table

below provides an

overview of our

risk-weighted assets (RWA)

and the related

minimum capital

requirements by

risk type.

The table

presented is

based on

the respective Swiss

Financial Market Supervisory

Authority

(FINMA) template and empty rows indicate current non-applicability to UBS.

During

the

fourth

quarter

2025,

RWA

decreased

USD 11.5bn

USD 493.4bn,

mainly

driven

decreases

USD 4.5bn from market risk

RWA, USD 2.5bn from counterparty

credit risk (CCR) RWA,

USD 2.3bn from credit valuation

adjustment (CVA) RWA, USD 1.0bn from operational risk RWA and USD 0.9bn from RWA on securitization exposures in

banking book. The remaining variance was spread across other risk types.

Market

risk

RWA

decreased

USD 4.5bn,

due

asset

size

and

other

movements

the

Investment

Bank’s

Global

Markets business and, to a lesser extent, from de-risking within Non-core and Legacy.

CCR RWA decreased by USD 2.5bn, mainly

driven by decreases of USD 1.9bn related to

asset size and other movements

and USD 0.6bn related

to model

updates and methodology

changes. The decrease

in asset

size and other

movements

largely reflected roll-offs and market-driven movements in the Investment Bank and Global Wealth Management.

CVA RWA decreased by USD 2.3bn, primarily due to risk mitigation, roll-offs and market-driven movements, primarily in

the Investment Bank.

Operational risk RWA

decreased by USD 1.0bn

to USD 135.4bn, mainly

driven by a

reduction in the

business indicator

component.

RWA

securitization

exposures

banking

book

decreased

USD 0.9bn,

primarily

driven

asset

size

and

other

movements in Personal & Corporate Banking.

The flow

tables for credit

risk, CCR

and CVA RWA

in the respective

sections of

this report

provide further

details regarding

the movements in RWA in the fourth quarter of 2025.

›

Refer to the “Introduction and basis for preparation” section of this report

for more information about the applied regulatory

standards

›

Refer to the “Capital management”

section of the UBS Group Annual Report 2025, available under

”Annual reporting” at

ubs.com/investors

, for more information about capital management and RWA,

including details regarding movements in RWA

during 2025

Material model updates and methodology changes

Model

updates

and

methodology

changes

implemented

during

the

second

half

2025

resulted

USD 2.8bn

reduction

RWA.

The

decrease

primarily

reflected

updates

Lombard

lending

and

concentrated

equity

lending

Global Wealth

Management, as

well as

an update

to loss

given default

(LGD) for

cash and

balances at

central banks.

These reductions

were partially

offset by

an increase

in RWA

following the

migration of

exposures from

Credit Suisse

models. The updates

also affected Pillar 3

tables, due to

asset class reclassifications

and the movement

of exposures from

the internal ratings-based (IRB) approach to the standardized approach.

›

Refer to “Credit risk exposure and CRM effects” and “Credit

risk exposures by portfolio and PD range” in the “Credit risk” section

of this report for more information

31 December 2025 Pillar 3 Report |

UBS Group | Overview of risk-weighted assets

OV1: Overview of RWA

Section or table

reference

Minimum

capital

requirements

USD m, except where indicated

31.12.25

30.9.25

30.6.25

31.3.25

31.12.24

31.12.25

Credit risk (excluding counterparty credit risk)

257,192

257,432

258,111

239,547

235,955

CMS1, CMS2, 5

20,575

of which: standardized approach (SA)

61,983

61,791

61,170

57,511

51,817

CMS1, CMS2, CR4

4,959

of which: non-counterparty-related risk

16,144

16,178

16,553

15,712

15,667

1,292

of which: foundation internal ratings-based (F-IRB) approach

40,713

41,364

38,599

38,171

CR6

3,257

of which: supervisory slotting approach

1,417

1,533

1,638

1,632

1,745

CR10

113

of which: advanced internal ratings-based (A-IRB) approach

153,078

152,743

156,704

142,233

182,393

CR6

12,246

of which: adjustments related to the Swiss sectoral real estate floor for

exposures secured by real estate in Switzerland

3,4

Counterparty credit risk

33,037

35,497

31,903

30,135

37,182

CMS1, 6

2,643

of which: SA for counterparty credit risk (SA-CCR)

6,668

7,586

7,708

7,155

8,315

533

of which: internal model method (IMM)

14,623

14,941

13,197

12,684

16,397

CCR7

1,170

of which: value-at-risk (VaR)

6,798

8,253

6,544

6,358

8,107

CCR7

544

of which: other CCR

4,948

4,717

4,454

3,937

4,364

396

Credit valuation adjustment (CVA)

8,874

11,140

9,904

9,322

8,735

CMS1, 7

710

10a

of which: full basic approach (BA-CVA)

4,274

5,798

5,566

5,066

CVA2

342

10b

of which: standardized approach (SA-CVA)

4,600

5,342

4,338

4,256

CVA3, CVA4

368

Equity positions under the simple risk weight approach during the five-year

transitional period

5,544

Equity investments in funds – look-through approach

1,797

1,885

2,023

2,046

2,400

CMS1

144

Equity investments in funds – mandate-based approach

1,046

1,011

1,070

1,121

789

CMS1

Equity investments in funds – fallback approach

781

520

610

456

452

CMS1

Settlement risk

156

202

243

343

184

CMS1

Securitization exposures in banking book

4,801

5,678

6,529

6,739

7,433

CMS1, 8

384

of which: securitization internal ratings-based approach (SEC-IRBA)

1,302

2,191

3,022

3,550

3,547

104

of which: securitization external ratings-based approach (SEC-ERBA),

including internal assessment approach (IAA)

835

812

801

971

977

of which: securitization standardized approach (SEC-SA)

2,664

2,675

2,706

2,219

2,909

213

Market risk

23,756

28,208

30,469

31,352

27,189

CMS1, 9

1,900

of which: standardized approach (SA)

23,756

28,208

30,469

31,352

337

MR1

1,900

of which: internal models approach (IMA)

26,852

Capital charge for switch between trading book and banking book

Operational risk

135,425

136,394

145,426

CMS1, 10

10,834

Amounts below thresholds for deduction (250% risk weight)

26,534

26,930

27,243

25,820

27,249

CMS1

2,123

25a

of which: deferred tax assets

18,128

18,932

18,436

17,553

18,066

1,450

Output floor applied (%)

3,8

Floor adjustment (before application of transitional cap)

3,9

Floor adjustment (after application of transitional cap)

Total

493,397

504,897

504,500

483,276

498,538

39,472

1 Calculated based on 8%

of RWA.

2 Non-counterparty-related risk includes

property, equipment, software

and other items.

3 Disclosure is based on

the final Basel III standards

implemented with effect as

1 January 2025.

4 The Swiss sectoral real

estate floor is not applicable

at the level of UBS Group

AG consolidated.

5 Excludes settlement risk, which

is separately reported in

line 15 “Settlement risk”. Includes

RWA with central counterparties. The

split between the sub-components of counterparty credit

risk refers to the calculation of the exposure measure.

6 The simple risk-weight approach is no longer

applicable at

UBS, and equity positions in the banking

book are included in row 2. The

five-year transitional period is effective as of

1 January 2025 but is not applicable to

UBS.

7 Includes items subject to threshold deduction

treatment that do not exceed their respective threshold and are risk weighted at 250%. Items subject to threshold deduction treatment include significant investments in common shares of non-consolidated financial

institutions (banking, insurance and financial entities)

and deferred tax assets arising from temporary

differences.

8 The overall output floor of

72.5% is subject to a phase-in until 1

January 2028. As of 1 January

2025, the applicable overall output floor at the level of UBS Group AG

consolidated is 60%. As of 1 January 2026, the output floor increased

to 65%, and will increase to 70% in 2027.

9 FINMA has not opted to

implement a transitional cap that would limit the

increase in RWA to 25% of a bank’s

RWA before the application of the output floor.

10 The total of our actual final

Basel III RWA is higher than 60% of our

final

Basel III RWA calculated using the full standardized approach. Therefore,

the overall output floor is not binding, and our RWA before and after the effects of the overall output floor

are equal.



Comparison of modelled and standardized RWA at risk level

Quarterly |

The CMS1 table compares RWA determined using models approved by FINMA with RWA determined under the

full

standardized

approach.

The

table

also

provides

the

full

standardized

approach

for

RWA

that

are

the

base

the

phased-in overall output

floor. The purpose

of the overall

output floor is

to ensure that

banks’ capital requirements

based

on modelled approaches

where permitted do

not fall below

a certain percentage

of capital requirements

based on the

full standardized approach, thereby reducing excessive variability of RWA and enhancing the comparability of risk-based

capital ratios across

banks. The impact

of the output

floor, if applicable,

will be disclosed

in the “OV1:

Overview of RWA”

table in rows 27 and 28.

The applicable threshold pursuant to

the reporting date is disclosed

in row 26 of the

OV1 table,

and in

column e

in the

CMS1 table

below. The

output floor

was set

at 60%

during 2025.

As of

1 January 2026,

the

output floor increased

to 65% and

will incrementally increase

to a level

of 72.5% by

2028. As of

31 December 2025,

the floor is not binding at the level of UBS Group, i.e. the total of our actual RWA shown in column c in the CMS1 table

below is

greater than

60% of

the RWA

calculated under

the full

standardized approach

shown in

column e,

and therefore

no adjustment is required. UBS is undertaking mitigating actions with respect to RWA under the standardized approach

to minimize a future floor adjustment required as the level of the output floor increases.

›

Refer to “Overview of risk-weighted assets and capital requirements” in this section for information

about the OV1 table

The table

below provides

a summary

of the

key conceptual

differences between

the internal

model approach

and the

standardized approach.

31 December 2025 Pillar 3 Report |

UBS Group | Overview of risk-weighted assets

Key differences between the internal model approach and the standardized approach

Internal model approach

Standardized approach

Key impact

Risk weighting

Reliance on internal ratings where each

counterparty / transaction receives a rating.

Reliance on external credit assessment institutions

where permitted in the regulatory framework.

Modelled approach produces RWA that is more risk

sensitive.

Granular risk-sensitive risk weight differentiation

via individual probability of default (PD) and LGD

for mortgages.

Less granular risk weights based on loan-to-value

(LTV)

bands for mortgages.

The Group’s residential mortgage portfolio is

focused on the Swiss market, and the Group has

robust review processes in place concerning

borrowers’ ability to repay. This results in the

Group’s residential mortgage portfolio having a low

average LTV and results in an average risk

weight

of around 20% under the advanced IRB (A-IRB)

approach.

Modelled LGD captures transaction quality

features including collateralization. Under the

foundation internal ratings-based (F-IRB)

approach, the LGD values are calculated based

on the rules set by FINMA.

No differentiation for transaction features (except

where claim is subordinated).

Impact relevant across all asset classes.

Credit risk mitigation

Credit risk mitigation recognized via risk-sensitive

LGD or exposure at default (EAD).

Limited recognition of credit risk mitigation.

Standardized approach RWA is higher than

modelled RWA for most transaction types.

Wider variety of eligible collateral.

Restricted list of eligible collateral.

Limited recognition of collateral results in higher

RWA for Lombard lending and securities financing

transactions (SFTs).

Repo value-at-risk (VaR)

permits the use of VaR

models to estimate exposure and collateral for

SFTs. Approach permits full diversification and

netting across all collateral types.

Conservative and crude regulatory haircuts with

limited risk sensitivity.

The effects of guarantees and credit derivatives

are considered through either adjusting PD

and / or LGD estimates. UBS applies the F-IRB

approach for guarantee recognition.

In case of eligible guarantees and credit derivatives,

substitution is applied and the risk weight

applicable to the protection provider can be

assigned to the protected portion of the underlying

exposure.

CCF

A credit conversion factor (CCF) is applied to

model expected future drawdowns over the

12-month period, irrespective of the actual

maturity of a particular transaction. The CCF

includes downturn adjustments and is the result

of analysis of internal data and expert opinion.

Credit exposure equivalents are determined by

applying CCFs to off-balance sheet items. The CCFs

vary based on product type, maturity and the

underlying contractual agreements.

Modelled CCFs can be more tailored and

differentiated.

EAD for derivatives

Internal model method (IMM) facilitates the use

of a Monte Carlo simulation to estimate

exposure.

The standardized approach for CCR is calculated as

the replacement costs plus regulatory add-ons that

take into account potential future market moves at

predetermined fixed rates.

For large, diversified derivatives portfolios,

standardized EAD is higher than modelled EAD.

Application of multiplier on IMM exposure

estimate.

Differentiates add-ons by five exposure types and

three maturity buckets only.

Variability in holding period applied to

collateralized transactions, reflecting liquidity

risks.

Limited netting can be recognized.

EAD for SFTs

The repo VaR approach is a model based on a

Monte Carlo simulation and historical calibration

to estimate exposure, computed as quantile

exposure.

The comprehensive approach considers the adjusted

exposure after applicable supervisory haircuts on

both the exposure and the collateral received to

take account of possible future fluctuations in the

value of either the exposure or the collateral.

For large, diversified SFT portfolios, standardized

EAD is higher than modelled EAD.

Maturity in risk weight

Regulatory RWA function considers maturity: the

longer the maturity, the higher the risk weight.

No differentiation for maturity of transactions,

except for interbank exposures.

Model approach produces lower RWA for high-

quality, short-term transactions.

Credit valuation

adjustment

Not applicable under the final Basel III standards.

UBS calculates the CVA risk capital requirement

using both the standardized approach (SA-CVA)

and the full basic approach (BA-CVA) in line with

the final Basel III standards. The SA-CVA uses

sensitivities to market risk factors (e.g. interest rates

and credit spreads) and uses those sensitivities with

regulatory-prescribed risk weights and correlations

to arrive at a capital charge. The BA-CVA approach

is simpler and less risk sensitive.

Where the BA-CVA and the SA-CVA are applied

under the output floor calculation, the application

of internal ratings is not permitted.

Securitization exposures

in the banking book

The regulatory capital requirements are

calculated using a hierarchy of approaches. First,

the securitization internal ratings-based approach

(SEC-IRBA) is applied, if possible. If this approach

cannot be applied, one of the standardized

approaches is applied.

If the SEC-IRBA cannot be applied, the regulatory

capital requirements are calculated using the

following hierarchy of approaches: the securitization

external ratings-based approach or the

securitization standardized approach (SEC-SA).

Otherwise, a 1,250% risk weight is applied as a

fallback.

31 December 2025 Pillar 3 Report |

UBS Group | Overview of risk-weighted assets

Key differences between the internal model approach and the standardized approach (continued)

Internal model approach

Standardized approach

Key impact

Market risk

UBS does not apply the internal model approach

for market risk.

UBS currently applies the standardized approach of

the Fundamental Review of the Trading Book (the

FRTB)

framework, in which minimum market risk

capital requirements are computed on the basis of

three components: the sensitivities-based method

(the SBM), the default risk charge (the DRC) and

the residual risk add-on (the RRAO). The SBM

captures delta, vega and curvature risk of the

underlying trading positions, the DRC uses the

jump-to-default risk in positions subject to equity

and credit risk, and positions that may not be

adequately capitalized by the SBM and the DRC

additionally attract an RRAO charge.

Where the standardized approach is applied under

the output floor calculation, the application of

internal ratings is not permitted.

The new FRTB framework replaced the VaR

and

stressed VaR-based Basel 2.5 market risk

framework.

Operational risk

Not applicable under the final Basel III standards.

The standardized approach is based on the business

indicator component, derived from financial

statement metrics, as well as the internal loss

multiplier, derived from average historical

operational losses. The new framework replaced the

advanced measurement approach.

As of

31 December 2025,

the output

floor is

set at

USD 433.6bn, representing

60% of

RWA calculated

using the

full

standardized approach effective for the full year 2025. This floor is USD 59.8bn below the actual RWA of USD 493.4bn.

During the

fourth quarter

of 2025,

the difference

between RWA

calculated using

the full

standardized approach

and

actual RWA decreased by USD 10.2bn, to

USD 229.3bn from USD 239.6bn. This decrease was

primarily driven by RWA

mitigation actions

undertaken during the

quarter, changes

in asset

size and

other movements, which

contributed to

decrease in RWA calculated using the full standardized approach.

Credit risk RWA under the full

standardized approach were higher than actual RWA.

Under the standardized approach,

fixed

risk

weights

are

applied

residential

mortgage

exposures,

depending

the

LTV.

The

internal

model-based

approach considers

borrowers’ ability

to service

debt more

accurately, including

mortgage affordability

and calibration

based on

historic data. The

Group’s residential mortgage

portfolio is focused

on the Swiss

market, and the

Group has

robust review processes in place

concerning borrowers’ ability to repay.

This results in the Group’s

residential mortgage

portfolio having a low

average LTV and consequently

a lower average risk

weight under the A-IRB

approach compared

with the standardized approach.

For Lombard lending, the

average risk weight using

internal models is lower

than under

the standardized

approach, primarily

due to

differences in

collateral treatment.

Additionally, corporate

exposures have

higher risk weights under the standardized approach compared with the average risk density in the modelled approach.

CCR RWA

under the

full standardized

approach were

higher than

actual RWA,

primarily reflecting

higher risk

weights

under the standardized

approach compared with

the IRB risk

weights mainly in

the corporate asset

class, especially on

managed funds. In addition

to risk weights, exposures

calculated under the standardized

approach are higher, because

the standardized approach does not fully recognize the benefits of netting, portfolio diversification and collateral.

CVA RWA calculated

using the full

standardized approach were

higher than actual

RWA, as the

application of internal

ratings is not permitted under the standardized approach for output floor calculations.

RWA on securitization

exposure in banking

book calculated using

the full standardized

approach were higher

than actual

RWA,

due

conservative

assumptions

and

less

granular

risk

assessments

permitted

under

the

SEC-SA

when

compared with the SEC-IRBA framework.

31 December 2025 Pillar 3 Report |

UBS Group | Overview of risk-weighted assets

CMS1: Comparison of modelled and standardized RWA at risk level

USD m

RWA for modelled

approaches that UBS has

FINMA approval to use

RWA for portfolios

where standardized

approaches are used

Total Actual RWA

(i.e. RWA which banks

report as current

requirements)

RWA calculated using

full standardized

approach

(i.e. used in the base

of the output floor)

Output floor base

(60% of RWA

calculated using full

standardized

approach)

31.12.25

Credit risk (excluding counterparty credit risk)

195,209

61,983

257,192

378,379

227,028

Counterparty credit risk

26,465

6,572

33,037

133,981

80,389

Credit valuation adjustment (CVA)

8,874

13,793

8,276

Securitization exposures in banking book

1,302

3,499

4,801

6,072

3,643

Market risk

23,756

24,127

14,476

Operational risk

135,425

81,255

Residual RWA

1,814

28,500

30,313

30,948

18,569

Total

224,790

268,608

493,397

722,726

433,635

30.9.25

Credit risk (excluding counterparty credit risk)

195,641

61,791

257,432

379,571

227,743

Counterparty credit risk

28,705

6,792

35,497

143,077

85,846

Credit valuation adjustment (CVA)

11,140

17,252

10,351

Securitization exposures in banking book

2,191

3,487

5,678

8,944

5,366

Market risk

28,208

28,060

16,836

Operational risk

136,394

81,836

Residual RWA

1,971

28,577

30,548

31,169

18,701

Total

228,508

276,389

504,897

744,466

446,680

30.6.25

Credit risk (excluding counterparty credit risk)

196,941

61,170

258,111

383,454

230,072

Counterparty credit risk

25,025

6,878

31,903

138,977

83,386

Credit valuation adjustment (CVA)

9,904

16,284

9,770

Securitization exposures in banking book

3,022

3,507

6,529

13,325

7,995

Market risk

30,469

30,353

18,212

Operational risk

136,394

81,836

Residual RWA

2,096

29,093

31,189

31,931

19,159

Total

227,085

277,415

504,500

750,719

450,431

31.3.25

Credit risk (excluding counterparty credit risk)

182,036

57,511

239,547

365,925

219,555

Counterparty credit risk

24,141

5,994

30,135

138,962

83,377

Credit valuation adjustment (CVA)

9,322

15,012

9,007

Securitization exposures in banking book

3,550

3,189

6,739

15,211

9,126

Market risk

31,352

31,208

18,725

Operational risk

136,394

81,836

Residual RWA

2,213

27,573

29,787

30,307

18,184

Total

211,940

271,336

483,276

733,019

439,811

1 Includes settlement risk, equity investments in funds and deferred tax assets arising from temporary differences.

2 The output floor is applied to total RWA, and not for each individual risk category.



Comparison of modelled and standardized RWA for credit risk at asset class level

Semi-annual |

The CMS2 table below elaborates

on the comparison between RWA calculated

under the full standardized and

the internally modelled approaches (including the IRB

approach for credit risk and

the supervisory slotting approach) by

focusing on RWA for credit risk at the asset class and sub-asset class levels.

During the second half of 2025, the difference between credit risk RWA calculated using the full standardized approach

and actual credit risk RWA decreased by USD 4.2bn, to USD 121.2bn from USD 125.3bn.

›

Refer to “Comparison of modelled and standardized RWA

at risk level” in this section for information about the overall output

floor

RWA in

the Retail

asset class

calculated using

the full

standardized approach

were higher

than actual

such RWA.

The

largest component of the

difference is observed primarily

within Retail: exposures secured

by real estate and

Retail: other

retail, which

includes Lombard

lending. Under

the standardized

approach, fixed

risk weights

are applied

to exposures

secured by real estate, depending on the LTV. The internal model-based

approach considers borrowers’ ability to service

debt more accurately, including calibration based on historic data. The Group’s residential mortgage portfolio is focused

on the

Swiss market,

and the

Group has

robust review

processes in

place concerning

borrowers’ ability

to repay.

This

results in

the Group’s

residential mortgage

portfolio having

a low

average LTV

and consequently

a lower

average risk

weight

under

the

A-IRB

approach

compared

with

the

standardized

approach.

For

Lombard

lending

the

average

risk

weight using internal models is significantly lower than under the standardized

approach, primarily due to differences in

collateral treatment.

RWA in the Corporates:

other lending asset class

calculated using the

full standardized approach

were higher than

actual

such RWA.

The difference is

primarily driven

by exposures

to large corporate

clients, which

have higher

risk weights

under

the standardized approach compared with the average risk weight under the modelled approach.

31 December 2025 Pillar 3 Report |

UBS Group | Overview of risk-weighted assets

RWA in the Corporates: specialized lending asset class calculated using the full standardized approach were higher than

actual such RWA.

The difference is

primarily driven

by exposures related

to income-producing real

estate (IPRE) and

object

financing. Under the

standardized approach, fixed

LTV-dependent risk weights are

applied to exposures

related to IPRE

resulting in a higher average risk weight than under the modelled approach.

CMS2: Comparison of modelled and standardized RWA for credit risk at asset class level

USD m

RWA for modelled

approaches that UBS

has FINMA approval

to use

RWA for column (a) if

re-computed using the

standardized approach

Total Actual RWA

(i.e. RWA which banks

report as current

requirements)

RWA calculated using

full standardized

approach

(i.e. used in the base

of the output floor)

Output floor base

(60% of RWA

calculated using full

standardized

approach)

31.12.25

Central governments, central banks and

supranational organizations

7,033

2,963

7,033

2,963

1,778

of which: Central governments, central banks and

supranational organizations (F-IRB)

of which: Central governments, central banks and

supranational organizations (A-IRB)

7,033

2,963

7,033

2,963

1,778

Banks

5,983

6,382

5,983

6,382

3,829

Public sector entities and multilateral development

banks

1,448

2,762

1,448

2,762

1,657

Corporates: specialized lending

28,994

44,393

28,994

44,393

26,636

of which: Corporates: specialized lending under the

supervisory slotting approach

1,417

1,611

1,417

1,611

967

of which: Corporates: specialized lending (F-IRB)

of which: Corporates: specialized lending (A-IRB)

27,577

42,781

27,577

42,781

25,669

Corporates: other lending

62,523

94,716

62,523

94,716

56,830

of which: Corporates: other lending (F-IRB)

33,283

57,205

33,283

57,205

34,323

of which: Corporates: other lending (A-IRB)

29,240

37,512

29,240

37,512

22,507

Retail

89,228

165,180

89,228

165,180

99,108

of which: Retail: exposures secured by real estate

62,321

106,615

62,321

106,615

63,969

of which: Retail: qualifying revolving retail

exposures (QRRE)

1,590

1,788

1,590

1,788

1,073

of which: Retail: other retail

25,318

56,777

25,318

56,777

34,066

Equity exposures

4,778

2,867

Other

57,204

34,323

Total

195,209

316,397

257,192

378,379

227,028

30.6.25

Central governments, central banks and

supranational organizations

7,077

3,823

7,077

3,823

2,294

of which: Central governments, central banks and

supranational organizations (F-IRB)

of which: Central governments, central banks and

supranational organizations (A-IRB)

7,077

3,823

7,077

3,823

2,294

Banks

5,669

6,285

5,669

6,285

3,771

Public sector entities and multilateral development

banks

1,506

3,174

1,506

3,174

1,905

Corporates: specialized lending

31,857

48,060

31,857

48,060

28,836

of which: Corporates: specialized lending under the

supervisory slotting approach

1,638

1,599

1,638

1,599

960

of which: Corporates: specialized lending (F-IRB)

of which: Corporates: specialized lending (A-IRB)

30,219

46,460

30,219

46,460

27,876

Corporates: other lending

58,270

90,111

58,270

90,111

54,066

of which: Corporates: other lending (F-IRB)

31,424

55,774

31,424

55,774

33,465

of which: Corporates: other lending (A-IRB)

26,846

34,336

26,846

34,336

20,602

Retail

92,561

170,831

92,561

170,831

102,499

of which: Retail: exposures secured by real estate

61,428

107,166

61,428

107,166

64,300

of which: Retail: qualifying revolving retail

exposures (QRRE)

1,974

2,577

1,974

2,577

1,546

of which: Retail: other retail

29,160

61,088

29,160

61,088

36,653

Equity exposures

3,852

2,311

Other

57,317

34,390

Total

196,941

322,284

258,111

383,454

230,072

1 Although the output floor is

applied to total RWA, the output floor

disclosed in the CMS2 table reflects only

RWA attributable to credit risk exposures. Refer to the

“CMS1: Comparison of modelled and standardized

RWA at risk level” table in this section for information about non-credit risk exposures.



31 December 2025 Pillar 3 Report |

UBS Group | Linkage between financial statements and regulatory exposures

Linkage between financial statements and regulatory

exposures

Annual |

This section provides

information about the

differences between

our regulatory exposures

and carrying amounts

presented

our

financial

statements

prepared

accordance

with

IFRS

Accounting

Standards.

Assets

and

liabilities

presented in

our IFRS

Accounting Standards

financial statements

may be

subject to

more than

one risk

framework, as

explained further below.

LIA: Explanation of the differences between the IFRS Accounting Standards and regulatory scopes of

consolidation

The

scope

consolidation

for

the

purpose

calculating

Group

regulatory

capital

generally

the

same

the

consolidation scope under

IFRS Accounting Standards

and includes subsidiaries

that are

directly or

indirectly controlled

UBS Group AG

and

are

active

banking

and

finance.

However,

subsidiaries

consolidated

under

IFRS

Accounting

Standards

whose

business

outside

banking

and

finance

are

generally

excluded

from

the

regulatory

scope

consolidation.

Subject

the

regulatory

auditor’s

consent,

subsidiary

fully

consolidated

under

IFRS

Accounting

Standards

may

proportionately

consolidated

under

the

regulatory

scope

consolidation

exceptional

basis

provided

that

(i) the

bank’s

obligation

support

the

company

subject to

consolidation

limited

the

bank’s

own

holding

quota

and

(ii) the

remaining

shareholders

partners

are

required

provide

support

proportion

their

holding

quota

and

are

legally

and

financially

able

fulfill

their

obligations.

The

key

difference

between

the

IFRS

Accounting

Standards

and

regulatory

scopes

consolidation

31 December

2025

relates

investments

insurance,

real

estate

and

commercial

companies,

well

investment

vehicles,

that

are

consolidated

under

IFRS

Accounting Standards

but may

be either

proportionately consolidated

or not

consolidated for

regulatory capital

purposes,

in which case they are subject to risk weighting.

As of 31 December 2025, UBS Asset Management Life Ltd (total assets on a standalone

basis as of 31 December 2025:

USD 21,036m; total

equity on

a standalone

basis as

of 31 December

2025: USD 33m)

was the

most significant

entity

included in the IFRS Accounting Standards scope

of consolidation but not in the

regulatory scope of consolidation. This

life insurance entity accounts for most of the difference between the “Carrying values as reported in published financial

statements” and the

“Carrying values under

the scope of

regulatory consolidation” columns

in the LI1

table below, as

well

between

the

“Balance

sheet

accordance

with

IFRS

Accounting

Standards

scope

consolidation”

and

the

“Balance sheet in

accordance with regulatory

scope of consolidation”

columns in the

“CC2: Reconciliation of

accounting

balance

sheet

balance

sheet

under

the

regulatory

scope

consolidation” table

the

“Going

and

gone

concern

requirements and eligible

capital“ section of

this report. The

difference is mainly related

to financial assets

at fair value

not held for trading and other financial liabilities designated at fair value. Further differences are mainly related to other

entities that

are not

active in

banking and

finance and

are, therefore,

generally not

consolidated under

the regulatory

scope of

consolidation. As

of 31 December

2025, entities

consolidated under

either IFRS

Accounting Standards or

the

regulatory scope of consolidation did not report any significant capital deficiencies.

In the banking

book, certain equity

investments are not consolidated

under either IFRS

Accounting Standards or under

the regulatory scope. As of

31 December 2025, these investments

mainly consisted of infrastructure holdings

and joint

operations

(e.g.

settlement

and

clearing

institutions,

and

stock

and

financial

futures

exchanges)

and

included

our

participation in SIX Group. These investments are risk weighted based on applicable threshold rules.

More information about the legal structure of the UBS

Group and the IFRS Accounting Standards scope of

consolidation

is provided in

the “Our evolution”

section and in

“Note 1 Summary

of material

accounting policies”

in the “Consolidated

financial statements” section,

respectively, of the

UBS Group Annual

Report 2025, available

under “Annual reporting”

ubs.com/investors



31 December 2025 Pillar 3 Report |

UBS Group | Linkage between financial statements and regulatory exposures

Fair value measurement

Annual |

The table

below refers to

additional information about

fair value

measurement that is

provided separately in

the

UBS Group Annual Report 2025, available under “Annual reporting” at

ubs.com/investors

›

Refer to “Prudent valuation adjustments” in the “Going and gone concern requirements and eligible capital”

section of this report

for information about prudent valuation adjustments to common equity tier 1 capital

LIA: Fair value measurement

Pillar 3 disclosure requirement

UBS Group Annual Report 2025 section

Disclosure

UBS Group Annual

Report 2025 page

number

Valuation methodologies applied,

including mark-to-market and

mark-to-model methodologies in

use

Consolidated financial statements

–

Note 20 a) Valuation principles

–

Note 20 c) Fair value hierarchy

–

Note 20 e) Level 3 instruments: valuation techniques and

inputs

316

317–321

323–325

Description of the independent

price verification process

Consolidated financial statements

–

Note 20 b) Valuation governance

316

Procedures for valuation

adjustments or reserves for valuing

trading positions by type of

instrument

Consolidated financial statements

–

Note 20 d) Valuation adjustments and other items

322–323



Differences between accounting and regulatory scopes of consolidation and mapping of financial statement

categories with regulatory risk categories

Annual |

The LI1

table below

provides the

differences between

accounting and

regulatory scopes

of consolidation

and a

breakdown of the

IFRS Accounting Standards

balance sheet categories

into the risk

types used to

calculate our regulatory

capital requirements. Cash collateral receivables and payables on derivative instruments, derivative financial

instruments

and

financial assets

at fair

value not

held for

trading are

subject to

capital

requirements under

both

market risk

and

counterparty

credit

risk

frameworks.

addition,

other

financial

assets

measured

amortized

cost,

financial

assets

measured at

fair value

through profit

or loss

and financial

assets measured

at fair

value through

other comprehensive

income include securities

that have been

pledged as collateral.

These securities are

also considered in

the counterparty

credit risk framework,

as collateral pledged

is subject to

counterparty credit risk.

Carrying values subject

to the market

risk framework do not include foreign exchange risk on banking book positions.

›

Refer to “LIA: Explanation of the differences between the IFRS Accounting Standards

and regulatory scopes of consolidation” in

this section for information about the differences between the accounting and

regulatory scopes of consolidation

31 December 2025 Pillar 3 Report |

UBS Group | Linkage between financial statements and regulatory exposures

LI1: Differences between accounting and regulatory scopes of consolidation and mapping of financial statement

categories with regulatory risk categories

31.12.25

Carrying values

as reported in

published

financial

statements

Carrying values

under scope of

regulatory

consolidation

Carrying values of items:

USD m

Subject to

credit risk

framework

Subject to

counterparty

credit risk

framework

Subject to

securitization

framework

Subject to

market risk

framework

Not subject to

capital

requirements

or subject to

deduction

from capital

Assets

Cash and balances at central banks

209,858

Amounts due from banks

19,649

19,562

19,435

128

Receivables from securities financing transactions measured

at amortized cost

83,656

83,636

79,117

4,519

Cash collateral receivables on derivative instruments

41,552

980

Loans and advances to customers

653,846

654,920

640,392

2,993

11,535

Other financial assets measured at amortized cost

71,897

72,075

69,090

12,457

1,842

Total financial assets measured at amortized cost

1,080,458

1,081,602

938,775

136,247

17,895

980

Financial assets at fair value held for trading

174,699

174,701

4,381

44,627

170,253

of which: assets pledged as collateral that may be sold or

repledged by counterparties

44,627

163

44,627

44,465

Derivative financial instruments

147,778

147,786

138,687

Brokerage receivables

35,579

4,900

30,679

Financial assets at fair value not held for trading

107,575

86,643

56,951

26,437

5,8

378

31,527

Total financial assets measured at fair value through profit

or loss

465,631

444,708

66,233

249,528

444

340,467

Financial assets measured at fair value through other

comprehensive income

13,868

13,803

Investments in associates

2,332

2,849

Property, equipment and software

16,057

15,854

Goodwill and intangible assets

6,948

6,899

6,896

Deferred tax assets

11,525

11,509

7,007

4,502

Other non-financial assets

20,609

19,876

5,885

12,996

995

Total assets

1,617,427

1,597,100

1,050,410

385,819

18,340

354,443

12,393

Liabilities

Amounts due to banks

24,434

24,465

Payables from securities financing transactions measured at

amortized cost

16,225

Cash collateral payables on derivative instruments

34,222

671

Customer deposits

788,367

789,073

Debt issued measured at amortized cost

214,706

Other financial liabilities measured at amortized cost

15,862

16,087

Total financial liabilities measured at amortized cost

1,093,816

1,094,779

50,447

671

1,044,332

Financial liabilities at fair value held for trading

53,700

Derivative financial instruments

156,243

156,249

156,222

146,616

Brokerage payables designated at fair value

62,202

45,566

16,636

Debt issued designated at fair value

113,794

113,796

105,953

7,843

Other financial liabilities designated at fair value

28,184

7,132

4,755

7,130

Total financial liabilities measured at fair value through

profit or loss

414,123

393,079

206,544

313,399

24,509

Provisions and contingent liabilities

5,035

4,558

Other non-financial liabilities

13,970

13,985

308

13,677

Total liabilities

1,526,944

1,506,401

308

256,991

314,070

1,087,076

1 Includes non-counterparty

-related risk,

equity investments

in funds

and equity

positions in

the banking

book which

are excluded

from the

CR1, CR2,

CR3 and

CRB credit

risk tables

in section

5 of this

report.

2 Includes settlement risk, which is

not included in section 5

of this report.

3 This column only consists

of securitization positions in the

banking book. Trading

book securitizations are included in

the “Subject to

market risk

framework” column.

4 Consists of margin

loans, which

are subject to

counterparty credit risk.

5 Consists of default

fund contributions and

assets pledged as

collateral, which are

both subject to

counterparty credit risk.

6 Includes trading portfolio assets in the banking

book and traded loans.

7 Funded collar trades without rehypothecation rights are treated

as non-credit-bearing exposures and are excluded

from the “Subject to credit risk framework” column.

8 Includes securities financing transactions (SFTs), as well as other exposures subject to the counterparty credit risk framework.

9 Net of deferred tax liabilities,

which are offset

against prudential filters

(e.g. goodwill

and intangibles,

as well as

cash flow hedges)

in the regulatory

capital calculation.

10 Relates to the

carrying values of

derivative loan commitments

and

forward starting SFTs that are measured at fair value. The

replacement values on these products represent a small fraction of the commitment amounts considered for RWA

calculations.



31 December 2025 Pillar 3 Report |

UBS Group | Linkage between financial statements and regulatory exposures

Regulatory exposures

Annual |

The LI2 table below illustrates the

key differences between regulatory exposure amounts and

accounting carrying

amounts under

the regulatory

scope of

consolidation. In

addition to

the accounting

carrying amounts,

the regulatory

exposure amounts include:

–

off-balance sheet amounts not related to derivatives and securities financing transactions (row 4);

–

potential future exposure for derivatives, offset by eligible financial collateral deductions (row 6);

–

effects from the model calculation of effective expected positive exposure applied to derivatives (row 6);

–

any collateral mitigation

through the application

of the close-out

period approach or

the comprehensive measurement

approach (row 7); and

–

effects of collateral mitigation in the banking book (row 8).

The regulatory exposure amount

excludes prudential filters (row

5), consisting of items

subject to deduction from

capital,

which are not risk weighted.

LI2: Main sources of differences between regulatory exposure amounts and carrying values in financial statements

(under the regulatory scope of consolidation)

31.12.25

Total

Items subject to:

USD m

Credit risk

framework

Counterparty

credit risk

framework

Securitization

framework

Market risk

framework

Asset carrying value amount under scope of regulatory consolidation (as per template LI1)

1,597,100

1,050,410

385,819

18,340

354,443

Liabilities carrying value amount under scope of regulatory consolidation

419,325

308

256,991

314,070

Total net amount under regulatory scope of consolidation

1,177,775

1,050,101

128,828

18,340

40,374

Off-balance sheet amounts (post-CCF; e.g. guarantees, commitments)

115,704

108,997

6,707

Differences due to prudential filters

(12,393)

Derivatives: PFE and collateral mitigation (including off-balance sheet exposures)

120,362

SFTs: Collateral mitigation (including off-balance sheet exposures)

(89,373)

Other differences including collateral mitigation in the banking book

22,760

(7,701)

(1,427)

Exposure amounts considered for regulatory purposes

1,334,835

1,151,397

159,817

23,620

1 Mainly includes exposures subject to more than one risk framework

in the LI1 table and net balances under market risk framewo

rk.

2 Counterparty credit risk exposures include client-cleared exposures,

whereas

such agency exposures

are not reported

in the financial

statements.

3 Exposure amounts

considered for regulatory

purposes are generally

not applicable under

the market

risk framework, with

the exception of

securitization exposures in the trading book.



Credit risk

Introduction

Semi-annual

The

parameters

applied

under

the

internal

ratings-based

(IRB)

approach

are

generally

based

the

same

methodologies,

data

and

systems

use

for

internal

credit

risk

quantification,

except

where

certain

treatments

are

specified

regulatory

requirements.

These

include,

for

example,

the

application

regulatory

prescribed

floors

and

multipliers, and

differences with

respect to

eligibility criteria

and exposure

definitions. The

exposure information

presented

in this

section may

thus

differ from

our

internal management

view

disclosed in

the

“Risk management

and control”

sections of the

quarterly and annual

reports. Similarly, the

regulatory capital prescribed

measure of credit

risk exposure

also differs from how it is defined under IFRS Accounting Standards.

Credit risk exposure categories

The definitions

of the

Pillar 3 credit

risk exposure

categories “Loans”

and “Debt

securities” below

as specified

by the

Swiss Financial Market

Supervisory Authority (FINMA),

which are

referred to

in the “CR1:

Credit quality

of assets” and

“CR3: Credit risk

mitigation techniques

– overview” tables

in this section,

provide a link

to the IFRS

Accounting Standards

balance sheet structure.

31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

The Pillar 3 category “Loans” consists of financial instruments held with the intent to collect their contractual payments

and

includes

the

following

IFRS

Accounting

Standards

balances

the

extent

that

they

are

subject

the

credit

risk

framework:

–

Cash and balances at central banks

;

–

Amounts due from banks

;

–

Loans and advances to customers

;

–

Other financial assets measured

at amortized cost

, excluding money market

instruments, checks and bills, and

other

debt instruments;

–

traded loans in the banking book that are included within

Financial assets at fair value held for trading

;

–

Brokerage receivables

;

–

loans including structured loans that are included within

Financial assets at fair value not held for trading

;

and

–

Other non-financial assets

The Pillar 3 category “Debt

securities” includes the following

IFRS Accounting Standards balances

to the extent that

they

are subject to the credit risk framework:

–

money market

instruments, checks

and bills, and

other debt instruments

that are included

within

Other financial

assets

measured at amortized cost

;

–

Financial assets at fair value held for trading

, excluding traded loans;

–

Financial assets at fair value not held for trading

, excluding loans; and

–

Financial assets measured at fair value through other comprehensive income



General information about credit risk

Annual |

The table below presents an overview of Pillar 3 disclosures that are provided separately in the UBS Group

Annual

Report 2025, available under “Annual reporting” at

ubs.com/investors

CRA: General qualitative information about credit risk

Pillar 3 disclosure requirement

UBS Group Annual Report 2025 section

Disclosure

UBS Group Annual

Report 2025 page

number

Translation of the business model

into the components of the bank’s

credit risk profile

Risk management and control

–

Risk identification

–

Risk categories

–

Key risks by business division and Group functions

–

Main sources of credit risk

–

Credit risk profile of the Group

90–91

Consolidated financial statements

–

Note 19 d) Maximum exposure to credit risk

309–310

Criteria and approach used for

defining credit risk management

policy and for setting credit risk

limits

Risk management and control

–

Risk governance

–

Risk appetite framework

–

Risk measurement

–

Credit risk

–

Overview of measurement, monitoring and

management techniques

92–94

94–96

96–98

Structure and organization of the

credit risk management and control

function

Risk management and control

–

Risk governance

92–94

Interaction between the credit risk

management, risk control,

compliance, and internal audit

functions

Risk management and control

–

Risk governance

–

Risk appetite framework

92–94

94–96

Scope and content of the reporting

on credit risk exposure to executive

management and to the Board of

Directors

Risk management and control

–

Risk governance

–

Internal risk reporting

–

Risk appetite framework

–

Credit risk profile of the Group

92–94

94–96



31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

Credit quality of assets

Semi-annual |

The

CR1

table

below

provides

breakdown

defaulted and

non-defaulted

loans,

debt

securities

and

off-

balance sheet

exposures.

The table

also includes

a breakdown

of expected

credit

loss (ECL)

accounting provisions

exposures subject to the standardized approach and the IRB approach.

Compared with

30 June 2025,

the net

carrying amount

of loans

decreased by

USD 17.9bn to

USD 896.2bn, primarily

driven by a decrease in cash and balances at

central banks, partly offset by an increase in lending

assets mainly in Global

Wealth Management and the Investment Bank.

The net

carrying amount

of debt

securities increased

by USD 6.8bn

to USD 122.5bn,

primarily driven

by purchases

high-quality liquid asset (HQLA) portfolio securities.

The net carrying

amount of off-balance

sheet exposures increased

by USD 4.2bn to

USD 101.1bn, mainly driven

by an

increase in loan commitments.

›

Refer to the “CR3: Credit risk mitigation techniques – overview” table in this section for more information

about the net value

movements related to Loans and Debt securities shown in the table below

›

Refer to “Credit risk” in the “Risk management and control” section of the UBS

Group Annual Report 2025, available under

”Annual reporting” at

ubs.com/investors

, for more information about the definitions of default and credit impairment and

“Credit risk exposure categories” in this section for more information about

the classification of Loans and Debt securities

CR1: Credit quality of assets

Gross carrying amounts of:

Allowances /

impairments

Of which: ECL accounting provisions

for credit losses on SA exposures

Of which: ECL

accounting

provisions for

credit losses on

IRB exposures

Net values

USD m

Defaulted

exposures

Non-defaulted

exposures

Allocated in

regulatory

category of

Specific

Allocated in

regulatory

category of

General

31.12.25

Loans

7,168

891,719

(2,676)

(128)

(50)

(2,497)

896,211

Debt securities

122,520

(8)

122,512

Off-balance sheet exposures

308

100,995

(243)

(3)

(4)

(236)

101,060

Total

7,476

1,115,234

(2,927)

(131)

(62)

(2,734)

1,119,783

30.6.25

Loans

6,463

910,064

(2,432)

(281)

(49)

(2,102)

914,095

Debt securities

115,749

(4)

115,757

Off-balance sheet exposures

346

96,771

(272)

(26)

(134)

(112)

96,845

Total

6,820

1,122,584

(2,708)

(307)

(187)

(2,214)

1,126,697

31.12.24

Loans

5,962

832,251

(2,095)

(104)

(40)

(1,950)

836,119

Debt securities

88,600

(4)

88,644

Off-balance sheet exposures

329

90,663

(250)

(2)

(4)

(244)

90,743

Total

6,339

1,011,515

(2,349)

(107)

(49)

(2,194)

1,015,505

1 Defaulted exposures

include stage 3

and defaulted purchased

credit-impaired (PCI)

assets under IFRS

9. Refer to

“Note 9 Financial

assets at amortized

cost and other

positions in scope

of expected credit

loss

measurement” in the “Consolidated financial statements”

section of the UBS Group Annual Report

2025, available under "Annual reporting" at

ubs.com/investors, for more information

about IFRS 9.

2 Expected

credit loss

(ECL) allowances

and provisions

amounted to

USD 3,058m

as of

31 December 2025,

as disclosed

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 the UBS Group

Annual Report 2025, available under "Annual reporting"

at ubs.com/investors. This Pillar 3 table excludes ECL toward securitization

exposures, revocable off-balance sheet exposures, ECL on irrevocable committed prolongation of loans that do not give rise to additional credit exposures and exposures subject to counterparty credit risk.

3 Specific

provisions include stage 3 ECL allowances and additional ECL allowances on defaulted PCI assets. General provisions include stage 1

and 2 ECL allowances and additional ECL allowances on non-defaulted PCI assets.

4 Loan exposure is reported in line with the Pillar 3 definition. Refer to “Credit risk exposure categories” in this section for

more information about the classification of Loans and Debt securities.

5 Off-balance sheet

exposures include unutilized credit facilities, guarantees provided and forward starting loan commitments but exclude prolongations of loans that do not increase the initially committed loan amount. Unutilized credit

facilities exclude unconditionally revocable and uncommitted credit facilities, even if they attract RWA.



Semi-annual

The

CR2

table

below

presents

changes

stock

defaulted

loans,

debt

securities

and

off-balance

sheet

exposures for the second half of 2025. The total amount of defaulted loans and debt securities increased by USD 0.7bn

to USD 7.5bn compared with 30 June 2025.

CR2: Changes in stock of defaulted loans, debt securities and off-balance sheet exposures

USD m

For the half year

ended 31.12.25

For the half year

ended 30.6.25

Defaulted loans, debt securities and off-balance sheet exposures as of the beginning of the half year

6,820

6,339

Loans, debt securities and off-balance sheet exposures that have defaulted since the last reporting period

1,631

1,214

Returned to non-defaulted status

(401)

(210)

Amounts written off

(237)

(136)

Other changes

(337)

(387)

Defaulted loans, debt securities and off-balance sheet exposures as of the end of the half year

7,476

6,820

1 Off-balance sheet

exposures include

unutilized credit

facilities, guarantees

provided and forward

starting loan commitments

but exclude

prolongations of loans

that do not

increase the initially

committed loan

amount. Unutilized credit facilities exclude unconditionally revocable and uncommitted credit facilities, even if they attract

RWA.

2 Includes primarily partial or full repayments, as well as currency effects.



31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

Credit risk exposures

Amounts shown

in the

following tables

relate to

on-balance sheet

IFRS Accounting

Standards carrying

amounts, as

well as

off-balance sheet

items according

to the

regulatory

scope of consolidation that give rise to credit risk exposure under the Basel III framework.

Compared

with

31 December

2024,

credit

risk

exposure

increased by

USD 104.3bn

USD 1,119.8bn, mainly

reflecting

the

weakening

the

dollar

against

other

major

currencies and increases in HQLA portfolio securities, net new loans and loan commitments.

›

Refer to “Credit risk” in the “Risk management and control” section of the UBS Group

Annual Report 2025, available under ”Annual reporting” at

ubs.com/investors

, for more information

Annual |

The table below provides a breakdown of our credit risk exposures by industry.

CRB: Breakdown of exposures by industry

USD m

Central

banks

Banks

Construc-

tion

Electricity,

gas, water

supply

Financial

services

Hotels and

restaurants

Manufac-

turing

Mining

Private

households

Public

authorities

Real estate

and rentals

Retail and

wholesale

Services

Other

Total carrying

amount

31.12.25

Loans

209,052

20,717

5,045

1,170

102,678

2,838

9,492

406

433,948

4,448

48,011

13,473

26,454

18,478

896,211

Debt securities

9,012

20,996

585

18,726

63,257

4,696

5,166

122,512

Off-balance sheet exposures

3,685

1,807

2,503

25,918

296

15,549

848

6,793

2,026

2,579

16,727

13,972

8,355

101,060

Total

218,064

45,399

6,907

4,259

147,323

3,134

25,051

1,256

440,741

69,732

50,594

30,203

45,122

31,999

1,119,783

31.12.24

Loans

222,403

21,857

3,925

725

93,550

2,849

10,895

625

378,177

4,344

41,766

11,350

22,880

20,771

836,119

Debt securities

5,697

19,012

1,105

16,576

42,167

3,508

511

88,644

Off-balance sheet exposures

3,546

2,093

2,470

24,963

313

19,446

1,007

4,448

2,591

1,411

10,734

9,472

8,248

90,743

Total

228,101

44,414

6,019

4,301

135,088

3,163

30,373

1,633

382,625

49,102

43,212

22,084

35,859

29,530

1,015,505

1 The classification of each industry is

based on the Global Industry Classification Standard (GICS).

2 Includes the chemicals industry.

3 Includes the food and beverages industry.

4 Consists of transport, storage,

communications and other.

5 Loan exposure is reported in line with the Pillar

3 definition. Refer to

“Credit risk exposure categories” in this section for more information about the classification of Loans

and Debt securities.

6 Off-balance sheet exposures include unutilized credit facilities, guarantees

provided and forward starting loan commitments but exclude prolongations of loans

that do not increase the initially

committed loan amount. Unutilized credit facilities exclude unconditionally revocable and uncommitted credit facilities, even

if they attract RWA.



Annual |

The table below provides a breakdown of our credit risk exposures by geographical area. The geographical distribution is based on the legal domicile of the counterparty or

issuer.

CRB: Breakdown of exposures by geographical area

USD m

Switzerland

Americas

Asia Pacific

EMEA

Total carrying amount

31.12.25

Loans

521,578

205,532

70,100

99,002

896,211

Debt securities

12,024

65,723

13,139

31,626

122,512

Off-balance sheet exposures

36,554

35,915

7,167

21,424

101,060

Total

570,156

307,169

90,406

152,051

1,119,783

31.12.24

Loans

445,088

211,027

62,970

117,034

836,119

Debt securities

6,754

44,569

13,188

24,133

88,644

Off-balance sheet exposures

31,274

30,893

6,325

22,251

90,743

Total

483,116

286,489

82,484

163,418

1,015,505

1 Loan exposure is reported in line with

the Pillar 3 definition. Refer to “Credit risk

exposure categories” in this section for more information

about the classification of Loans and Debt securities.

2 Off-balance sheet exposures include unutilized credit facilities, guarantees provided and forward starting loan

commitments

but exclude prolongations of loans that do not increase the initially committed loan amount. Unutilized credit facilities exclude unconditionally revocable and

uncommitted credit facilities, even if they attract RWA.



31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

Annual

The

table

below

provides

breakdown

our

credit

risk

exposure

residual

contractual

maturity

the

reporting date. The residual contractual maturity of assets includes the effect of callable features.

CRB: Breakdown of exposures by residual maturity

USD m

Due in

1 year or less

Due between

1 year and 5 years

Due over

5 years

Total carrying

amount

31.12.25

Loans

520,684

261,284

114,243

896,211

Debt securities

26,199

63,221

33,092

122,512

Off-balance sheet exposures

37,592

52,828

10,640

101,060

Total

584,475

377,333

157,974

1,119,783

31.12.24

Loans

500,273

229,206

106,640

836,119

Debt securities

24,091

43,497

21,056

88,644

Off-balance sheet exposures

38,328

43,625

8,790

90,743

Total

562,692

316,328

136,486

1,015,505

1 Loan exposure is reported in line with the Pillar 3 definition. Refer to “Credit risk exposure categories” in this section for more information about the

classification of Loans and Debt securities.

2 Off-balance sheet

facilities exclude unconditionally revocable and uncommitted credit facilities, even if they attract RWA.



Past due, non-performing and credit-impaired exposures

Annual |

The table below

refers to

information about credit

policies for distressed

assets that is

provided separately in

the

UBS Group Annual Report 2025, available under “Annual reporting” at

ubs.com/investors

CRB: Policies for past due, non-performing and credit-impaired claims

Pillar 3 disclosure requirement

UBS Group Annual Report 2025 section

Disclosure

UBS Group Annual

Report 2025 page

number

Policies for past due, non-perfor-

ming and credit-impaired claims

Risk management and control

–

Credit risk: Non-performing

–

Credit risk: Default and credit-impaired

109

109–110



Annual |

The table below provides a breakdown of our credit-impaired exposures by

industry. The amounts shown are IFRS

Accounting Standards carrying amounts.

CRB: Credit-impaired exposures by industry

USD m

Credit-impaired exposures,

gross

Allowances and

provisions for credit-

impaired exposures

Credit-impaired

exposures net of

allowances and

provisions

Write-offs for the

year ended

31.12.25

Central banks

(52)

Banks

(1)

Construction

110

(52)

Electricity, gas, water supply

(2)

Financial services

2,015

(663)

1,351

(108)

Hotels and restaurants

(3)

(2)

Manufacturing

662

(268)

394

(51)

Mining

(6)

Private households

2,222

(280)

1,942

(118)

Public authorities

Real estate and rentals

811

(177)

634

(30)

Retail and wholesale

587

(325)

262

(33)

Services

518

(191)

327

(20)

Other

420

(35)

385

(11)

Total

7,530

(2,053)

5,477

(374)

31.12.24

Central Banks

Banks

Construction

210

(46)

164

(2)

Electricity, gas, water supply

Financial services

1,148

(304)

844

Hotels and restaurants

273

(18)

256

Manufacturing

522

(171)

351

(34)

Mining

(6)

Private households

1,745

(268)

1,477

(235)

Public authorities

(6)

Real estate and rentals

726

(91)

635

(4)

Retail and wholesale

622

(227)

395

(46)

Services

413

(96)

317

(8)

Other

530

(252)

277

(19)

Total

6,362

(1,511)

4,852

(348)

1 The classification of each industry is based on the Global Industry Classification (GIC) standard.

2 Includes the chemicals industry.

3 Includes the food and beverages industry.

4 Consists of transport, storage,

communications and other.



31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

Annual |

The table below provides

a breakdown of

our credit-impaired exposures

by geographical area.

The amounts shown

are

IFRS

Accounting Standards

carrying amounts.

The

geographical distribution

is based

the

legal

domicile of

the

counterparty or issuer.

CRB: Credit-impaired exposures by geographical area

USD m

Credit-impaired exposures,

gross

Allowances and provisions for

credit-impaired exposures

Credit-impaired exposures net

of allowances and provisions

Write-offs for the year ended

31.12.25

Switzerland

4,211

(1,236)

2,975

(163)

Americas

1,144

(282)

862

(89)

Asia Pacific

1,043

(173)

870

(112)

EMEA

1,132

(361)

770

(10)

Total

7,530

(2,053)

5,477

(374)

31.12.24

Switzerland

3,784

(901)

2,724

(235)

Americas

781

(117)

664

(63)

Asia Pacific

879

(198)

681

(16)

EMEA

919

(295)

624

(34)

Total

6,362

(1,511)

4,852

(348)



Annual |

The table

below provides

a breakdown

of total

loan balances

where payments

have been

missed. The

past due

amounts increased

to USD 3.0bn,

compared with

USD 2.2bn in

2024, primarily

driven by

migration of

positions from

legacy Credit Suisse.

CRB: Past due exposures

USD m

31.12.25

31.12.24

1–30 days

417

557

31–60 days

236

108

61–90 days

125

>90 days

2,223

1,473

Total

3,001

2,198

1 For legacy Credit Suisse components excluding stage 3 exposures.



Restructured exposures

Annual |

The table

below refers

to additional

information about

restructured exposures

that is

provided separately

in the

UBS Group Annual Report 2025, available under “Annual reporting” at

ubs.com/investors

CRB: Definition of restructured exposures

Pillar 3 disclosure requirement

UBS Group Annual Report 2025 section

Disclosure

UBS Group Annual

Report 2025 page

number

Definition of restructured exposures

Risk management and control

–

Credit risk: Forbearance (credit restructuring)

110



Annual |

The

table

below provides

breakdown

our

restructured

exposures

between

credit-impaired

and non-credit-

impaired as of 31 December 2025.

The exposures decreased to USD 2.7bn, compared with USD 3.0bn in 2024.

CRB: Breakdown of restructured exposures between credit-impaired and non-credit

-impaired

Credit-impaired

Non-credit-impaired

Total

USD m

31.12.25

31.12.24

31.12.25

31.12.24

31.12.25

31.12.24

Restructured exposures

2,669

3,033

2,672

3,034



31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

Credit risk mitigation

Annual |

The table below presents an overview of Pillar 3 disclosures that are provided separately in the UBS Group Annual

Report 2025, available under “Annual reporting” at

ubs.com/investors

CRC: Qualitative disclosure requirements related to credit risk mitigation techniques

Pillar 3 disclosure requirement

UBS Group Annual Report 2025 section

Disclosure

UBS Group Annual

Report 2025 page

number

Core features of policies and

processes for, and an indication of

the extent to which the bank makes

use of, on- and off-balance sheet

netting

Risk management and control

–

Traded products

103–104

Consolidated financial statements

–

Note 1 a) item 2) i. Offsetting

–

Note 10 Derivative instruments

–

Note 21 Offsetting financial assets and financial liabilities

271

289–290

330–331

Core features of policies and

processes for collateral evaluation

and management

Risk management and control

–

Credit risk mitigation

104–106

Information about market or credit

risk concentrations under the credit

risk mitigation instruments used

Risk management and control

–

Risk concentrations

–

Credit risk mitigation

104–106

Consolidated financial statements

–

Note 10 Derivative instruments

–

Note 19 d) Maximum exposure to credit risk

–

Note 20 h) Maximum exposure to credit risk for financial

instruments measured at fair value

–

Note 21 Offsetting financial assets and financial liabilities

289–290

309–310

328

330–331



Additional

information

about

counterparty

credit

risk

mitigation

(CRM)

provided

the

“Counterparty

credit

risk”

section of this report.

Semi-annual |

The CR3

table below

provides a

breakdown of

loans and

debt securities

into unsecured

and partially

or fully

secured exposures, with additional information about the security type.

Compared

with

30 June

2025,

the

carrying

amount

unsecured

loans

decreased

USD 32.1bn

USD 271.8bn,

primarily driven by decreases in cash and balances at central banks and loans in Personal & Corporate Banking.

The

carrying

amount

partially

fully

secured

loans

increased

USD 14.2bn

USD 624.5bn,

mainly

due

increase in lending assets in Global Wealth Management.

The carrying amount of unsecured debt securities increased

by USD 7.1bn to USD 121.9bn, primarily driven by increases

in HQLA portfolio securities.

31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

CR3: Credit risk mitigation techniques – overview

Secured portion of exposures partially or fully secured:

USD m

Exposures fully

unsecured: carrying

amount

Exposures partially

or fully secured:

carrying amount

Total: carrying

amount

Exposures secured

by collateral

Exposures secured

by financial

guarantees

Exposures secured

by credit derivatives

31.12.25

Loans

271,756

624,455

896,211

605,131

4,799

of which: cash and balances at central

banks

209,010

Debt securities

121,935

577

122,512

Total

393,691

625,032

1,018,723

605,131

4,799

of which: defaulted

304

4,910

5,215

4,089

221

30.6.25

Loans

303,807

610,288

914,095

587,778

5,214

of which: cash and balances at central

banks

235,346

Debt securities

114,839

918

115,757

Total

418,645

611,206

1,029,852

587,797

5,214

of which: defaulted

277

4,384

4,661

2,534

148

31.12.24

Loans

282,902

553,216

836,119

507,544

7,642

of which: cash and balances at central

banks

222,422

Debt securities

87,656

988

88,644

Total

370,559

554,204

924,763

507,563

7,642

of which: defaulted

440

4,063

4,503

2,699

268

1 Exposures in this table represent carrying amounts

in accordance with the regulatory scope of

consolidation.

2 Loan exposure is reported in line with the

Pillar 3 definition. Refer to “Credit risk exposure

categories”

in this section for more information about the classification of Loans and Debt securities.

3 Eligible financial collateral under the IRB approach is recognized in the LGD parameter. The

exposure secured by collateral

for IRB represents the collateral amounts received prior to any haircuts but subject to the maximum of the exposure carrying value.

4 Includes purchased credit-impaired assets when subject to default.



Credit risk under the standardized approach

Introduction

Annual |

The standardized

approach is

generally applied

where using

the IRB

approach is

not feasible.

Under the

standardized

approach we use, where possible,

credit ratings from external

credit assessment institutions (ECAIs)

to determine the risk

weightings applied

rated counterparties.

use three

FINMA-recognized ECAIs

determine the

risk weights

for

certain counterparties according to the FINMA-defined asset classes: S&P,

Moody’s Investors Service and Fitch Ratings.

The mapping of external ratings to the standardized

approach risk weights is determined by FINMA and published

on its

website. There were no changes in the ECAIs used compared with 31 December 2024.

Debt instruments

are risk

weighted in

accordance with

the specific

issue ratings

available. If

there is

no specific

issue

rating

published

ECAI,

the

issuer

rating

applied

the

senior

unsecured

claims

that

issuer

subject

the

conditions prescribed by FINMA. For the Retail, Equity and Other assets asset classes, we apply the regulatory prescribed

risk weights independent of an external credit rating.

CRD: Qualitative disclosures on banks’ use of external credit ratings under the standardized approach for credit risk

31.12.25

External ratings used

Asset classes

Moody’s

S&P

Fitch

Central governments, central banks and supranational organizations

Banks

Public-sector entities

Multilateral development banks

Corporates



31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

Credit risk exposure and CRM effects

Semi-annual

The

CR4

table

below

illustrates

the

credit

risk

exposure

and

effect

CRM

the

calculation

capital

requirements under the standardized approach.

With the adoption

of the final

Basel III standards on

1 January 2025, including

the FINMA Ordinance

on the Disclosure

Obligations

Banks

and

Securities

Firms

(the

DisO-FINMA),

new

standardized

asset

classes

have

been

introduced.

Consequently, this semi-annually disclosed table is limited to the 2025 reporting period.

›

Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation”

section of the 30 June 2025

Pillar 3 Report, available under “Pillar 3 disclosures” at

ubs.com/investors

, for more information about the amended definition of

asset classes as a result of the implementation of the final Basel III standards in

Switzerland

›

Refer to the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at

ubs.com/investors

, for information about

previously published CR4 disclosures

As of

31 December 2025,

the asset

class with

the largest

exposure, after

applying credit

conversion factors

(CCF) and

CRM, was the Corporates asset

class, mainly through loans and

loan commitments within Global Wealth

Management

and

Personal

Corporate

Banking,

well

debt

securities

managed

Group

Treasury.

Additionally,

there

are

significant exposures

in the

Central governments,

central banks

and supranational

organizations asset

class, primarily

consisting of cash

and balances at

central banks. Exposures

to the Banks

and Public sector

entities asset classes

largely

consist

holdings

debt

securities.

Exposures

Other

assets

primarily

include

non-counterparty-related

items,

including property, equipment, and software.

Compared

with

30 June

2025,

on-balance

sheet

exposures

before

CCF

and

CRM

decreased

USD 7.9bn,

and

on-

balance sheet exposures post-CCF and post-CRM decreased by USD 7.1bn.

In addition, RWA increased by USD 0.8bn to

USD 62.0bn.

On-balance

sheet

exposures

before

CCF

and

CRM

the

Central

governments,

central

banks

and

supranational

organizations asset class decreased by USD 5.2bn to USD 19.7bn. On-balance sheet exposures

post-CCF and post-CRM

decreased by USD 4.9bn to USD 20.0bn, mainly due to

a decrease in cash and balances at central banks.

The increase in

RWA of USD 0.6bn for this asset class was primarily

due to methodology changes following the migration of exposures

from Credit Suisse models.

On-balance sheet exposures post-CCF and post-CRM in the Public sector

entities asset class decreased by USD 3.1bn to

USD 9.0bn, mainly driven by decreases in HQLA.

RWA in

the Subordinated

debt, equity

exposures and

other capital

instruments asset

class increased

by USD 0.9bn

USD 4.8bn, primarily due to an increase in equity holdings in Global Wealth Management.

On-balance sheet

exposures before

CCF and

CRM in

the Retail

asset class

increased by

USD 1.1bn to

USD 6.1bn, and

RWA increased by USD 0.8bn

to USD 6.3bn. On-balance sheet

exposures before CCF and

CRM in the Real

estate asset

class increased by USD 1.3bn to USD 7.7bn, and RWA

increased by USD 0.6bn to USD 2.8bn. These increases across the

Retail and

Real estate

asset classes

were primarily

due to

methodology changes

following the

migration of

exposures

from Credit Suisse

models to the

standardized approach. This

resulted in an

increase in exposures

reported in the

CR4

and CR5 tables below and a corresponding reduction in exposures reported in the CR6 table in this section.

31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

CR4: Standardized approach – credit risk exposure and credit risk mitigation (CRM) effects

Exposures

before CCF and CRM

Exposures

post-CCF and post-CRM

RWA and RWA density

USD m, except where indicated

On-balance

sheet

amount

Off-balance

sheet

amount

Total

On-balance

sheet

amount

Off-balance

sheet

amount

Total

RWA

RWA density

in %

31.12.25

Asset classes

Central governments, central banks and supranational

organizations

19,735

19,766

20,038

20,073

1,034

5.2

Public sector entities

9,006

2,049

11,055

9,007

493

9,499

2,576

27.1

Multilateral development banks

Banks

18,455

2,593

21,047

18,499

1,018

19,517

6,931

35.5

of which: Swiss account-holding securities firms and other

non-bank financial institutions subject to equivalent

prudential standards and supervision

426

340

79.8

Covered bonds

6,391

639

10.0

of which: Swiss covered bonds

6,391

639

10.0

Corporates

24,160

10,054

34,214

23,139

3,212

26,351

19,780

75.1

of which: Swiss non-account-holding securities firms and

other financial institutions not subject to equivalent

prudential standards and supervision

100.0

of which: specialized lending

100.0

Subordinated debt, equity exposures and other capital

instruments

1,858

1,786

4,778

267.6

Retail

6,053

4,264

10,317

6,002

484

6,486

6,348

97.9

Real estate

7,703

657

8,360

7,275

271

7,546

2,801

37.1

of which: own-used RRE

5,383

524

5,907

5,056

220

5,276

1,713

32.5

of which: IPRRE

2,014

106

2,120

1,918

1,960

866

44.2

of which: own-used CRE

72.3

of which: IPCRE

163

180

161

167

126

75.5

of which: land acquisition, development and construction

58.0

Defaulted exposures

647

663

644

649

795

122.5

Other assets

16,970

178

17,148

16,970

178

17,148

16,301

95.1

Total

111,007

19,841

130,849

109,782

5,694

115,475

61,983

53.7

30.6.25

Asset classes

Central governments, central banks and supranational

organizations

24,910

24,945

24,910

24,912

457

1.8

Public sector entities

12,126

2,558

14,684

12,127

758

12,885

3,192

24.8

Multilateral development banks

99.7

Banks

19,085

2,817

21,901

18,804

1,009

19,813

7,085

35.8

of which: Swiss account-holding securities firms and other

non-bank financial institutions subject to equivalent

prudential standards and supervision

396

238

60.1

Covered bonds

6,713

671

10.0

of which: Swiss covered bonds

6,713

671

10.0

Corporates

24,817

9,858

34,675

23,544

2,963

26,507

20,048

75.6

of which: Swiss non-account-holding securities firms and

other financial institutions not subject to equivalent

prudential standards and supervision

594

242

37.8

of which: specialized lending

Subordinated debt, equity exposures and other capital

instruments

1,463

1,410

3,852

273.2

Retail

4,983

3,846

8,829

4,945

413

5,358

5,551

103.6

Real estate

6,382

201

6,583

5,963

6,050

2,222

36.7

of which: own-used RRE

4,570

149

4,718

4,255

4,319

1,312

30.4

of which: IPRRE

1,468

1,505

1,366

1,381

635

46.0

of which: own-used CRE

71.9

of which: IPCRE

276

287

275

282

224

79.7

of which: land acquisition, development and construction

80.2

Defaulted exposures

824

836

822

827

1,021

123.5

Other assets

17,636

205

17,840

17,636

205

17,840

17,070

95.7

Total

118,939

19,533

138,471

116,873

5,442

122,315

61,170

50.0

1 Covered bond exposures reported under the preferential risk weight treatment relate exclusively to Swiss covered bonds issued under the Swiss covered bonds regulation (Pfandbriefgesetz). All other covered bonds

are presented in the asset classes based on the issuer counterparty.



31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

Exposures by asset classes and risk weights

Semi-annual |

The CR5

table below

shows credit

risk exposures

under the

standardized approach

by asset

classes and

risk weights

applied. Asset

classes and,

to some

extent, risk

weights changed with the adoption of the

final Basel III standards on 1 January 2025. Consequently, this semi-annually disclosed table is

limited to the 2025 reporting period. The

credit risk exposures in the CR5 table are post-CCF and post-CRM credit risk exposures.

›

Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation”

section of the 30 June 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at

ubs.com/investors

, for more information about the amended definition of asset classes as a result of the implementation

of the final Basel III standards in Switzerland

›

Refer to the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at

ubs.com/investors

, for information about previously published CR5 disclosures

CR5: Standardized approach – exposures by asset classes and risk weights – excluding Real estate

USD m

Risk weight

10%

15%

20%

25%

30%

35%

40%

45%

50%

65%

75%

80%

85%

100%

130%

150%

250%

400%

1,250%

Other

Total

credit

exposures

amount

31.12.25

Asset class

Central governments, central banks

and supranational organizations

18,683

682

665

20,073

Public sector entities

7,693

1,538

268

9,499

Multilateral development banks

Banks

16,548

440

288

2,226

19,517

of which: Swiss account-holding

securities firms and other non-bank

financial institutions subject to

equivalent prudential standards and

supervision

230

196

426

Covered bonds

6,391

of which: Swiss Covered Bonds

6,391

Corporates

7,838

618

118

17,620

26,351

of which: Swiss non-account-

holding securities firms and other

financial institutions not subject to

equivalent prudential standards and

supervision

of which: specialized lending

Subordinated debt, equity exposures

and other capital instruments

1,576

209

1,786

Retail

373

857

5,256

6,486

Defaulted exposures

356

293

649

Other assets

848

16,300

17,148

Total

19,562

6,391

32,106

440

373

3,128

975

40,480

2,623

1,576

209

107,929

31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

CR5: Standardized approach – exposures by asset classes and risk weights – Real estate (continued)

USD m

Risk weight

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

85%

90%

100%

105%

110%

115%

150%

Other

Total

credit

exposures

amount

31.12.25

Asset class

Real estate

1,795

1,278

799

2,068

117

866

155

137

196

7,546

of which: own-used RRE

1,795

1,278

1,680

117

217

189

5,276

of which: IPRRE

799

388

649

1,960

of which: own-used CRE

of which: IPCRE

137

167

of which: land acquisition,

development and construction

31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

CR5: Standardized approach – exposures by asset classes and risk weights – excluding Real estate (continued)

USD m

Risk weight

10%

15%

20%

25%

30%

35%

40%

45%

50%

65%

75%

80%

85%

100%

130%

150%

250%

400%

1,250%

Other

Total

credit

exposures

amount

30.6.25

Asset class

Central governments, central banks

and supranational organizations

24,041

605

218

24,912

Public sector entities

11,230

1,416

238

12,885

Multilateral development banks

Banks

17,043

386

2,290

19,813

of which: Swiss account-holding

securities firms and other non-bank

financial institutions subject to

equivalent prudential standards and

supervision

273

122

395

Covered bonds

6,713

of which: Swiss Covered Bonds

6,713

Corporates

6,895

1,912

138

17,366

109

26,507

of which: Swiss non-account-

holding securities firms and other

financial institutions not subject to

equivalent prudential standards and

supervision

188

242

of which: specialized lending

Subordinated debt, equity exposures

and other capital instruments

1,235

175

1,410

Retail

371

4,987

5,358

Defaulted exposures

438

389

827

Other assets

853

16,980

17,840

Total

24,894

6,713

35,171

4,318

459

138

40,247

2,833

1,235

175

116,265

31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

CR5: Standardized approach – exposures by asset classes and risk weights – Real estate (continued)

USD m

Risk weight

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

85%

90%

100%

105%

110%

115%

150%

Other

Total

credit

exposures

amount

30.6.25

Asset class

Real estate

1,604

1,080

590

1,730

515

115

216

6,050

of which: own-used RRE

1,603

1,080

1,538

4,319

of which: IPRRE

590

193

504

1,381

of which: own-used CRE

of which: IPCRE

216

282

of which: land acquisition,

development and construction



31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

Semi-annual |

The CR5

table below

presents on-

and off-balance

sheet exposures

distributed across

regulatory risk

weight

buckets, including what average CCFs are applied to off-balance sheet exposures.

CR5: Exposure amounts and CCFs applied to off-balance sheet exposures, categorised based on risk bucket of

converted exposures

USD m, except where indicated

On-balance sheet

exposure (pre-CRM)

Off-balance sheet

exposure (pre-CCF and

pre-CRM)

Weighted average CCF

in %

Exposure (post-CCF and

post-CRM)

31.12.25

Risk weight

Less than 40%

63,635

4,953

64,471

40-70%

4,411

847

4,778

75%

1,022

502

1,172

85%

90-100%

37,528

12,944

40,536

105-130%

150%

2,474

536

2,641

250%

1,597

1,576

400%

260

209

1,250%

Total

111,007

19,841

115,475

30.6.25

Risk weight

Less than 40%

71,389

4,831

71,856

40-70%

4,444

1,534

5,202

75%

406

732

520

85%

117

137

141

90-100%

38,515

11,600

40,284

105-130%

150%

2,551

698

2,846

250%

1,235

400%

229

175

1,250%

Total

118,939

19,533

122,315



Credit risk under the IRB approach

Introduction

Annual |

The IRB

approach includes

the advanced

IRB (A-IRB)

approach and,

under the

final Basel III

standards from

1 January

2025

onward,

the

foundation

IRB

(F-IRB)

approach

for

exposures

banks,

public

sector

entities

and

multilateral

development banks,

and large

corporate clients.

Under the

A-IRB approach the

required capital for

credit risk is

quantified

through empirical models

that we have

developed to estimate

the probability of

default (PD), loss

given default (LGD),

exposure

default

(EAD)

and

other

parameters,

subject

FINMA

approval.

Under

the

F-IRB

approach

banks

are

permitted to use their own internal estimates for the PD.

The table

below shows

the main

features of

our key

credit risk

models, including

numbers of

key models

used by

portfolio

and the main differences between models, as well as the description of the main characteristics of approved models.

31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

CRE: Qualitative disclosure related to IRB-models – Main features of our key credit risk models

Portfolio in scope

Major asset classes

Model

approach

Number of key

models

Main drivers

Number of

years of loss

data

Probability of

default

Sovereigns and central banks

Central governments,

central banks and

supranational organizations

– A-IRB; Public sector

entities, multilateral

development banks – F-IRB

Scorecard

Political, institutional and economic indicators including

qualitative factors

>15

Banks and other financial

institutions

Banks – F-IRB; Corporates:

other lending – F-IRB

Scorecard

Financial data including balance sheet ratios, profit and

loss data and qualitative factors

>15

Funds

Corporates: other lending –

F-IRB

Scorecard

Financial data and ratios constructed from it (such as net

asset value, volatility of returns), qualitative factors

>15

Large corporates and

internationals

Corporates: other lending –

F-IRB; Corporates: other

lending – A-IRB

Scorecard,

market data

Financial data including balance sheet ratios and profit

and loss, market data

>15

Enterprises in Switzerland

Corporates: other lending –

A-IRB; Retail: other retail –

A-IRB

Scorecard

Financial data including balance sheet ratios and profit

and loss, behavioral data

>25

Commodity traders

Corporates: specialized

lending – A-IRB

Scorecard

Financial data including balance sheet ratios and profit

and loss, as well as non-financial criteria

>25

Ship finance

Corporates: specialized

lending – A-IRB

Scorecard

Freight rates, ship market values,

operational expenses

and group information

>15

Owner-occupied mortgages in

Switzerland

Retail: exposure secured by

real estate – A-IRB

Scorecard

Behavioral data, affordability relative to income, property

type, loan-to-value

>25

Income producing real estate

mortgages in Switzerland

Retail: exposure secured by

real estate – A-IRB;

Corporates: specialized

lending – A-IRB

Scorecard

Loan-to-value, debt-service-coverage, behavioral data,

financial data (for large corporates only)

>25

Owner-occupied mortgages in the

US, and other wealth-

management financing

Retail: exposure secured by

real estate – A-IRB;

Corporates: specialized

lending – A-IRB;

Scorecard

Behavioral data, affordability relative to income, property

type, loan-to-value, assets and qualitative factors

>15

Commercial real estate in the US

Corporates: specialized

lending – A-IRB

Scorecard

Financial data and ratios constructed from it, qualitative

characteristics

>10

Lombard lending and

concentrated equity-based

lending

Retail: other retail – A-IRB;

Corporates: other lending –

A-IRB

Simulation

approach based

on historical

returns

Lending value ratio, collateral asset class, historical asset

returns, counterparty factors

>15

Credit cards, consumer loans and

leases in Switzerland

Retail: qualifying revolving

retail exposures (QRRE) –

A-IRB; Retail: other retail –

A-IRB

Scorecard

Client type and characteristics and behavioral data

>10

Other portfolios

Central governments,

central banks and

supranational organizations

– A-IRB; Public sector

entities, multilateral

development banks – F-IRB

Scorecard,

pooled rating

approach,

rating template

Financial data including balance sheet ratios and profit

and loss, qualitative factors and reference data. Separate

models for Public sector entities, Public sector

institutions, and Supranationals.

>25

Loss given default

Large corporates, internationals,

financial institutions, and

sovereigns

Corporates: other lending –

A-IRB; Central

governments, central banks

and supranational

organizations – A-IRB

Statistical

model

Counterparty and facility specific, including industry

segment, region, collateral, seniority, legal environment,

bankruptcy procedures and macro-economic factors

>15

Swiss corporate and mortgage

lending portfolios

Corporates: other lending –

A-IRB; Corporates:

specialized lending – A-

IRB; Retail: exposure

secured by real estate – A-

IRB; Retail: other retail – A-

IRB

Statistical

model

Collateral type and client segment, loan-to-value, time

since last valuation, location indicator

>15

Commodity traders

Corporates: specialized

lending – A-IRB

Statistical

model

Collateral type, loan-to-value

>25

Ship finance

Corporates: specialized

lending – A-IRB

Statistical

model

Loan-to-value of ship and financial collaterals

>15

Owner-occupied mortgages in the

US, and other wealth-

management financing

Retail: exposure secured by

real estate – A-IRB;

Corporates: specialized

lending – A-IRB

Statistical

model

Loan-to-value, market value shock

>15

Commercial real estate in the US

Corporates: specialized

lending – A-IRB

Statistical

model

Loan-to-value, debt-service-coverage, occupancy,

property type and region

>10

Lombard lending and

concentrated equity-based

lending

Retail: other retail – A-IRB;

Corporates: other lending –

A-IRB

Simulation

approach based

on historical

returns

Loan-to-value, collateral asset class and liquidity,

historical asset returns, counterparty factors

>15

Credit cards, consumer loans and

leases in Switzerland

Retail: qualifying revolving

retail exposures (QRRE) –

A-IRB; Retail: other retail –

A-IRB

Statistical

model

Collateral, accrued interests, client & product

characteristics, changes in original payment plan

>10

Exposure at default

Banking products

Across the A-IRB asset

classes

Statistical

model

Facility type, commitment type, client segment, drawn

amount, undrawn amount, and limit amount

>15

Traded products

Across the A-IRB and F-IRB

asset classes

Statistical

model

Product specific market drivers, e.g. interest rates.

Separate models for OTC/ETD and SFT that generate the

simulation of risk factors used for the credit exposure

measure.

n/a

1 Table captures the model

landscape of UBS Group AG,

excluding non-key models that are applied

to certain remaining exposure in legacy Credit

Suisse infrastructure.

LGD models and EAD models relating to

banking products apply only to A-IRB portion of portfolios. For portfolios under

F-IRB asset classes, supervisory LGDs and CCFs are applied in line with regulation.

31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

The table

below presents

an overview

of additional

Pillar 3 disclosures

that are

provided separately

in the

UBS Group

Annual Report 2025, available under “Annual reporting” at

ubs.com/investors

CRE: Additional qualitative disclosures related to IRB models

Pillar 3 disclosure requirement

UBS Group Annual Report 2025 section

Disclosure

UBS Group Annual

Report 2025 page

number

Internal model development,

controls and changes

Risk management and control

–

Risk governance

–

Risk measurement

–

Credit risk models

–

Model risk

92–94

96–98

106–109

130

Relationships between risk

management and internal audit and

independent review of IRB models

Risk management and control

–

Risk governance

–

Risk measurement

–

Model risk

92–94

96–98

130

Scope and content of the reporting

related to credit risk models

Risk management and control

–

Risk measurement

–

Credit risk

–

Overview of measurement, monitoring and

management techniques

–

Credit risk models

–

Model risk

96–98

106–109

130

Supervisor approval of applied

approaches

Risk management and control

–

Risk measurement

–

Changes to models and model parameters during the period

–

Stress testing

96–98

109

97–98



Credit risk exposures by portfolio and PD range

Semi-annual |

The CR6

table

below provides

information about

credit

risk exposures

under the

IRB approach,

including a

breakdown of the main parameters used in IRB models to calculate the capital requirements, presented by portfolio and

PD range across FINMA-defined asset classes. EAD in the following comments represents exposure at default post credit

conversion factors and credit risk mitigation.

With the

adoption of

the final

Basel III standards

on 1 January

2025, including

the DisO-FINMA,

new IRB

asset classes

have been introduced, including

asset classes subject to

the F-IRB approach, such

as ”Banks – F-IRB”

and ”Corporates:

other lending – F-IRB” reflecting

large corporate clients. Consequently,

this semi-annually disclosed table is

limited to the

2025 reporting period.

›

Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation”

section of the 30 June 2025

Pillar 3 report, available under “Pillar 3 disclosures” at

ubs.com/investors

, for more information about the amended definition of

asset classes as a result of the implementation of the final Basel III standards in

Switzerland

›

Refer to the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at

ubs.com/investors

, for information about

previously published CR6 disclosures

31 December

2025,

the

asset

class

with

the

largest

exposure,

after

applying

CCF

and

CRM,

was

the

Retail:

exposures secured by real

estate – A-IRB

asset class, reflecting our

residential mortgage lending activity

within Personal

& Corporate Banking and Global Wealth Management.

The UBS Group also has a significant portion

of exposures in the

Central governments, central banks and supranational organizations – A-IRB asset class, reflecting balances with central

banks

Group

Treasury.

addition,

there

are

significant

exposures

the

Retail:

other

retail

–

A-IRB

asset

class,

representing

our

Lombard

lending

business

Global

Wealth

Management.

The

F-IRB

approach,

which

UBS

has

implemented as part of

the final Basel III standards,

predominantly applies to

exposures against Banks

and other financial

institutions, including public sector entities, as well as large

corporate clients

in the Corporates: other lending asset class

in Personal & Corporate Banking and the Investment Bank.

Compared with 30 June 2025, EAD decreased by USD 44.9bn to USD 1,022.2bn, and RWA decreased by USD 1.5bn to

USD 193.8bn across various asset classes.

the

Central

governments,

central

banks

and

supranational

organizations

–

A-IRB

asset

class,

EAD

decreased

USD 10.3bn to

USD 271.3bn, primarily

driven by

lower cash

and balances

at central

banks. RWA

were unchanged

USD 7.0bn.

the

Corporates:

specialized

lending

–

A-IRB

asset

class,

EAD

decreased

USD 2.4bn

USD 63.4bn,

and

RWA

decreased

USD 2.6bn

USD 27.6bn,

primarily

due

decreases

loan

balances

mainly

Global

Wealth

Management and Personal & Corporate Banking.

In the Corporates: other lending –

A-IRB asset class, EAD increased

by USD 8.2bn to USD 51.6bn, and RWA

increased by

USD 2.4bn

USD 29.2bn,

driven

by updates

the

model

for

concentrated

equity

lending

Global

Wealth

Management.

In the Retail:

exposures secured

by real estate

– A-IRB asset

class, EAD

increased by USD 0.6bn

to USD 325.8bn, and

RWA

increased by USD 0.9bn to USD 62.3bn following the migration of exposures from Credit Suisse models.

31 December 2025 Pillar 3 Report |

UBS Group | Credit risk

In the Retail: qualifying revolving

retail exposures (QRRE) – A-IRB

asset class, EAD decreased by

USD 1.5bn to USD 7.4bn,

and RWA decreased

by USD 0.4bn to

USD 1.6bn following the

migration of exposures

from Credit Suisse

models. This

resulted in a decrease in

exposure reported in the CR6

table below and a corresponding

increase in exposures reported

in the CR4 and CR5 tables in this section.

In the

Retail: other

retail –

A-IRB asset

class, EAD

decreased by

USD 38.1bn to

USD 219.6bn, and

RWA decreased

USD 3.8bn to

USD 25.3bn. The

decreases were

mainly driven

by methodology

changes impacting

Lombard lending

Global

Wealth

Management.

Additionally,

the

decreases

were

due

the

aforementioned

updates

the

model

for

concentrated equity lending.

the

Ban

Filing Compare · UBS Group AG