Regulatory News:
Ad hoc announcement pursuant to Article 53 of the SIX Exchange
Regulation Listing Rules
UBS AG (NYSE:UBS) (SWX:UBSN) today published its second-quarter
2024 financial report and Pillar 3 report. UBS Group AG previously
reported its second quarter results on a consolidated basis on 14
August 2024. These reports are available for download on the UBS
website.
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains statements that constitute
“forward-looking statements,” including but not limited to
management’s outlook for UBS’s financial performance, statements
relating to the anticipated effect of transactions and strategic
initiatives on UBS’s business and future development and goals or
intentions to achieve climate, sustainability and other social
objectives. While these forward-looking statements represent UBS’s
judgments, expectations and objectives concerning the matters
described, a number of risks, uncertainties and other important
factors could cause actual developments and results to differ
materially from UBS’s expectations. In particular, terrorist
activity and conflicts in the Middle East, as well as the
continuing Russia–Ukraine war, may have significant impacts on
global markets, exacerbate global inflationary pressures, and slow
global growth. In addition, the ongoing conflicts may continue to
cause significant population displacement, and lead to shortages of
vital commodities, including energy shortages and food insecurity
outside the areas immediately involved in armed conflict.
Governmental responses to the armed conflicts, including, with
respect to the Russia–Ukraine war, coordinated successive sets of
sanctions on Russia and Belarus, and Russian and Belarusian
entities and nationals, and the uncertainty as to whether the
ongoing conflicts will widen and intensify, may continue to have
significant adverse effects on the market and macroeconomic
conditions, including in ways that cannot be anticipated. UBS’s
acquisition of the Credit Suisse Group has materially changed its
outlook and strategic direction and introduced new operational
challenges. The integration of the Credit Suisse entities into the
UBS structure is expected to take between three and five years and
presents significant risks, including the risks that UBS Group AG
may be unable to achieve the cost reductions and other benefits
contemplated by the transaction. This creates significantly greater
uncertainty about forward-looking statements. Other factors that
may affect UBS’s performance and ability to achieve its plans,
outlook and other objectives also include, but are not limited to:
(i) the degree to which UBS is successful in the execution of its
strategic plans, including its cost reduction and efficiency
initiatives and its ability to manage its levels of risk-weighted
assets (RWA) and leverage ratio denominator (LRD), liquidity
coverage ratio and other financial resources, including changes in
RWA assets and liabilities arising from higher market volatility
and the size of the combined Group; (ii) the degree to which UBS is
successful in implementing changes to its businesses to meet
changing market, regulatory and other conditions, including as a
result of the acquisition of the Credit Suisse Group; (iii)
increased inflation and interest rate volatility in major markets;
(iv) developments in the macroeconomic climate and in the markets
in which UBS operates or to which it is exposed, including
movements in securities prices or liquidity, credit spreads,
currency exchange rates, deterioration or slow recovery in
residential and commercial real estate markets, the effects of
economic conditions, including elevated inflationary pressures,
market developments, increasing geopolitical tensions, and changes
to national trade policies on the financial position or
creditworthiness of UBS’s clients and counterparties, as well as on
client sentiment and levels of activity; (v) changes in the
availability of capital and funding, including any adverse changes
in UBS’s credit spreads and credit ratings of UBS, Credit Suisse,
sovereign issuers, structured credit products or credit-related
exposures, as well as availability and cost of funding to meet
requirements for debt eligible for total loss-absorbing capacity
(TLAC), in particular in light of the acquisition of the Credit
Suisse Group; (vi) changes in central bank policies or the
implementation of financial legislation and regulation in
Switzerland, the US, the UK, the EU and other financial centers
that have imposed, or resulted in, or may do so in the future, more
stringent or entity-specific capital, TLAC, leverage ratio, net
stable funding ratio, liquidity and funding requirements,
heightened operational resilience requirements, incremental tax
requirements, additional levies, limitations on permitted
activities, constraints on remuneration, constraints on transfers
of capital and liquidity and sharing of operational costs across
the Group or other measures, and the effect these will or would
have on UBS’s business activities; (vii) UBS’s ability to
successfully implement resolvability and related regulatory
requirements and the potential need to make further changes to the
legal structure or booking model of UBS in response to legal and
regulatory requirements and any additional requirements due to its
acquisition of the Credit Suisse Group, or other developments;
(viii) UBS’s ability to maintain and improve its systems and
controls for complying with sanctions in a timely manner and for
the detection and prevention of money laundering to meet evolving
regulatory requirements and expectations, in particular in current
geopolitical turmoil; (ix) the uncertainty arising from domestic
stresses in certain major economies; (x) changes in UBS’s
competitive position, including whether differences in regulatory
capital and other requirements among the major financial centers
adversely affect UBS’s ability to compete in certain lines of
business; (xi) changes in the standards of conduct applicable to
its businesses that may result from new regulations or new
enforcement of existing standards, including measures to impose new
and enhanced duties when interacting with customers and in the
execution and handling of customer transactions; (xii) the
liability to which UBS may be exposed, or possible constraints or
sanctions that regulatory authorities might impose on UBS, due to
litigation, contractual claims and regulatory investigations,
including the potential for disqualification from certain
businesses, potentially large fines or monetary penalties, or the
loss of licenses or privileges as a result of regulatory or other
governmental sanctions, as well as the effect that litigation,
regulatory and similar matters have on the operational risk
component of its RWA, including as a result of its acquisition of
the Credit Suisse Group, as well as the amount of capital available
for return to shareholders; (xiii) the effects on UBS’s business,
in particular cross-border banking, of sanctions, tax or regulatory
developments and of possible changes in UBS’s policies and
practices; (xiv) UBS’s ability to retain and attract the employees
necessary to generate revenues and to manage, support and control
its businesses, which may be affected by competitive factors; (xv)
changes in accounting or tax standards or policies, and
determinations or interpretations affecting the recognition of gain
or loss, the valuation of goodwill, the recognition of deferred tax
assets and other matters; (xvi) UBS’s ability to implement new
technologies and business methods, including digital services and
technologies, and ability to successfully compete with both
existing and new financial service providers, some of which may not
be regulated to the same extent; (xvii) limitations on the
effectiveness of UBS’s internal processes for risk management, risk
control, measurement and modeling, and of financial models
generally; (xviii) the occurrence of operational failures, such as
fraud, misconduct, unauthorized trading, financial crime,
cyberattacks, data leakage and systems failures, the risk of which
is increased with cyberattack threats from both nation states and
non-nation-state actors targeting financial institutions; (xix)
restrictions on the ability of UBS Group AG and UBS AG to make
payments or distributions, including due to restrictions on the
ability of its subsidiaries to make loans or distributions,
directly or indirectly, or, in the case of financial difficulties,
due to the exercise by FINMA or the regulators of UBS’s operations
in other countries of their broad statutory powers in relation to
protective measures, restructuring and liquidation proceedings;
(xx) the degree to which changes in regulation, capital or legal
structure, financial results or other factors may affect UBS’s
ability to maintain its stated capital return objective; (xxi)
uncertainty over the scope of actions that may be required by UBS,
governments and others for UBS to achieve goals relating to
climate, environmental and social matters, as well as the evolving
nature of underlying science and industry and the possibility of
conflict between different governmental standards and regulatory
regimes; (xxii) the ability of UBS to access capital markets;
(xxiii) the ability of UBS to successfully recover from a disaster
or other business continuity problem due to a hurricane, flood,
earthquake, terrorist attack, war, conflict (e.g., the
Russia–Ukraine war), pandemic, security breach, cyberattack, power
loss, telecommunications failure or other natural or man-made
event, including the ability to function remotely during long-term
disruptions such as the COVID-19 (coronavirus) pandemic; (xxiv) the
level of success in the absorption of Credit Suisse, in the
integration of the two groups and their businesses, and in the
execution of the planned strategy regarding cost reduction and
divestment of any non-core assets, the existing assets and
liabilities of Credit Suisse, the level of resulting impairments
and write-downs, the effect of the consummation of the integration
on the operational results, share price and credit rating of UBS –
delays, difficulties, or failure in closing the transaction may
cause market disruption and challenges for UBS to maintain
business, contractual and operational relationships; and (xxv) the
effect that these or other factors or unanticipated events,
including media reports and speculations, may have on its
reputation and the additional consequences that this may have on
its business and performance. The sequence in which the factors
above are presented is not indicative of their likelihood of
occurrence or the potential magnitude of their consequences. UBS’s
business and financial performance could be affected by other
factors identified in its past and future filings and reports,
including those filed with the US Securities and Exchange
Commission (the SEC). More detailed information about those factors
is set forth in documents furnished by UBS and filings made by UBS
with the SEC, including the UBS Group AG and UBS AG Annual Reports
on Form 20- F for the year ended 31 December 2023. UBS is not under
any obligation to (and expressly disclaims any obligation to)
update or alter its forward-looking statements, whether as a result
of new information, future events, or otherwise.
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UBS AG Investor contact Switzerland: +41-44-234 41 00
Americas: +1-212-882 57 34 Media contact Switzerland: +41-44-234 85
00 UK: +44-207-567 47 14 Americas: +1-212-882 58 58 APAC:
+852-297-1 82 00
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