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: March 9, 2026

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 registrant files or will file annual reports under cover of Form 20-F or Form

40-F.

Form 20-F

☒

Form 40-F

☐

This

Form

6-K consists

the

UBS AG

audited

standalone

financial statements

for

the

year ended

31 December

2025, as

well as

the consent

of Ernst

& Young

Ltd. with

respect thereto,

which appear

immediately following

this

page.

UBS AG

Standalone financial statements and regulatory

information for the year ended

31 December 2025

Table of contents

Report of the statutory auditor

UBS AG standalone financial statements (audited)

Income statement

Balance sheet

Off-balance sheet

Statement of changes in equity

Name, legal form and registered office

Accounting policies

Net trading income by business

Net trading income by underlying risk category

Investments in subsidiaries and other participations

Sundry ordinary income and expenses

Personnel expenses

General and administrative expenses

Changes in provisions for litigation, regulatory and

similar matters, and other provisions

Extraordinary income and expenses

Taxes

Securities financing transactions

12a

Collateral for loans and off-balance sheet

transactions

12b

Credit-impaired financial instruments

Allowances and provisions

13a

Allowances for credit losses

13b

Provisions

13c

Development of allowances and provisions for credit

losses

13d

Balance sheet and off-balance sheet positions subject

to expected credit losses

13e

Financial assets subject to credit risk, by rating

category

Trading portfolio and other financial instruments

measured at fair value

Derivative instruments

16a

Financial investments by instrument type

16b

Financial investments by counterparty rating – debt

17a

17b

Country risk of total assets

Structured debt instruments

Funding eligible as total loss-absorbing capacity at

the UBS AG level

22a

Share capital

22b

Significant shareholders

Post-employment benefit plans

Related parties

Fiduciary transactions

26a

Invested assets and net new money

26b

Development of invested assets

Statement of proposed appropriation of total profit

and dividend distribution

UBS AG standalone regulatory information

Key metrics for the fourth quarter of 2025

Swiss systemically relevant bank going and gone concern

requirements and information

Sustainability and climate risk

Cautionary statement

UBS AG standalone financial statements (audited)

UBS AG standalone financial statements (audited)

UBS AG standalone financial statements (audited)

UBS AG standalone financial statements (audited)

UBS AG standalone financial statements (audited)

UBS AG standalone financial statements (audited)

Income statement

USD m

CHF m

For the year ended

Note

31.12.25

31.12.24

31.12.25

31.12.24

Interest and discount income

23,937

30,753

18,980

27,217

Interest and dividend income from trading portfolio

3,708

4,063

2,940

3,607

Interest and dividend income from financial investments

1,698

1,544

1,347

1,364

Interest expense

(31,074)

(39,684)

(24,639)

(35,129)

Gross interest income

(1,731)

(3,324)

(1,373)

(2,940)

Credit loss (expense) / release

535

(206)

424

(179)

Net interest income

(1,196)

(3,531)

(948)

(3,120)

Fee and commission income from securities and investment business and other fee and

commission income

5,686

4,256

4,509

3,760

Credit-related fees and commissions

299

330

237

292

Fee and commission expense

(1,201)

(1,041)

(953)

(920)

Net fee and commission income

4,784

3,545

3,793

3,132

Net trading income

9,442

9,451

7,487

8,334

Net income from disposal of financial investments

Dividend income from investments in subsidiaries and other participations

10,812

6,275

8,573

5,730

Income from real estate holdings

550

463

436

409

Sundry ordinary income

2,985

2,814

2,367

2,470

Sundry ordinary expenses

(1,927)

(800)

(1,528)

(700)

Other income from ordinary activities

12,518

8,821

9,926

7,960

Total operating income

25,548

18,286

20,258

16,307

Personnel expenses

5,657

5,511

4,486

4,868

General and administrative expenses

7,335

8,097

5,816

7,144

Subtotal operating expenses

12,992

13,608

10,302

12,012

Impairment of investments in subsidiaries and other participations

2,808

543

2,226

500

Depreciation, amortization and impairment of property, equipment, software and intangible

assets

925

1,028

734

907

Changes in provisions for litigation, regulatory and similar matters, and other provisions

323

1,078

256

942

Total operating expenses

17,048

16,258

13,517

14,361

Operating profit

8,501

2,028

6,740

1,946

Extraordinary income

904

4,211

716

3,693

Extraordinary expenses

600

505

Tax expense / (benefit)

238

501

189

451

Net profit / (loss)

9,149

5,138

7,254

4,684

UBS AG standalone financial statements (audited)

Balance sheet

USD m

CHF m

Note

31.12.25

31.12.24

31.12.25

31.12.24

Assets

Cash and balances at central banks

68,630

69,614

54,418

63,217

Due from banks

13, 24

102,570

96,243

81,330

87,399

Receivables from securities financing transactions

11, 13, 24

90,565

117,338

71,811

106,555

Due from customers

12, 13, 24

160,471

148,955

127,241

135,266

Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity

12, 13, 24

45,085

43,652

35,749

39,640

Mortgage loans

12, 13

8,695

8,438

6,894

7,662

Trading portfolio assets

162,706

148,686

129,013

135,022

Derivative financial instruments

14,034

21,941

11,128

19,925

Financial investments

52,625

39,850

41,727

36,188

Accrued income and prepaid expenses

3,918

4,194

3,107

3,808

Investments in subsidiaries and other participations

66,093

73,103

52,406

66,385

Property, equipment and software

5,471

5,364

4,338

4,871

Other assets

12, 13, 17

11,478

13,918

9,101

12,638

Total assets

792,341

791,297

628,262

718,576

of which: subordinated assets

35,593

34,918

28,222

31,709

of which: subject to mandatory conversion and / or debt waiver

34,389

33,344

27,268

30,279

Liabilities

Due to banks

83,924

87,538

66,545

79,493

Payables from securities financing transactions

11,24

28,091

42,638

22,274

38,720

Due to customers

237,917

227,493

188,649

206,587

Funding received from UBS Group AG measured at amortized cost

21, 24

114,423

113,898

90,728

103,431

Trading portfolio liabilities

47,268

29,316

37,480

26,622

Derivative financial instruments

16,476

14,005

13,064

12,718

Financial liabilities designated at fair value

14, 20

110,126

102,901

87,321

93,444

of which: funding received from UBS Group AG

20, 21, 24

6,430

4,998

5,098

4,539

Bonds issued

61,634

72,673

48,871

65,994

Accrued expenses and deferred income

7,062

8,230

5,600

7,474

Other liabilities

3,213

5,196

2,548

4,718

Provisions

1,751

3,101

1,388

2,816

Total liabilities

711,884

706,989

564,467

642,016

Equity

Share capital

386

306

380

Statutory capital reserve

65,627

52,037

60,185

of which: capital contribution reserve

77,661

61,579

70,626

of which: other statutory capital reserve

(12,034)

(9,542)

(10,441)

Voluntary earnings reserve

5,295

13,157

4,199

11,311

Net profit / (loss) for the period

9,149

5,138

7,254

4,684

Total equity

80,457

84,308

63,796

76,560

Total liabilities and equity

792,341

791,297

628,262

718,576

of which: subordinated liabilities

123,199

121,588

97,687

110,414

of which: subject to mandatory conversion and / or debt waiver

122,830

120,865

97,394

109,757

1 Represents the

Swiss GAAP

carrying amount

of instruments

qualifying as

total loss-absorbing

capital at

the level

of the

respective subsidiaries.

2 The capital

contribution reserve

balance of

USD 77,661m

(CHF 61,579m) as of 31

December 2025 includes

an amount of USD 53,533m

(CHF 42,447m) that the

Swiss Federal

Tax Administration

has assessed as

available for distribution

to the shareholder

free of Swiss

withholding tax.

UBS AG standalone financial statements (audited)

Balance sheet (continued)

USD m

CHF m

31.12.25

31.12.24

31.12.25

31.12.24

Off-balance sheet items

Contingent liabilities, gross

45,623

34,989

36,176

31,773

Sub-participations

(208)

(1,141)

(165)

(1,036)

Contingent liabilities, net

45,415

33,848

36,010

30,737

of which: guarantees to third parties related to subsidiaries

11,911

8,389

9,445

7,618

Irrevocable loan commitments, gross

43,644

44,469

34,606

40,382

Sub-participations

(32)

(26)

(25)

(24)

Irrevocable loan commitments, net

43,613

44,443

34,581

40,359

Forward starting transactions

100,493

101,465

79,683

92,140

of which: forward starting reverse repurchase agreements

56,836

64,036

45,067

58,151

of which: repurchase agreements

43,657

37,428

34,616

33,989

Liabilities for calls on shares and other equity instruments

1 Cash to be paid in the future by either UBS AG or the counterparty.

Off-balance sheet items

Contingent liabilities include indemnities and

guarantees issued by UBS

AG for the benefit

of subsidiaries and creditors

of subsidiaries.

Where

the

indemnity

amount

issued

UBS

not

specifically

defined,

the

indemnity

relates

the

solvency

minimum capitalization of a subsidiary, and therefore no amount is included in the table above.

Joint and several liability – value-added tax

UBS AG is jointly

and severally liable for the

combined value-added tax (

VAT

) liability of UBS entities

that belong to the

VAT

group of UBS in Switzerland. This contingent liability is not included in the table above.

Guarantees – UBS Europe SE

Following the

combined UK

business transfer

and cross-border merger

of UBS Limited

into UBS

Europe SE in

March 2019,

UBS AG issued a guarantee for the benefit of

counterparties of UBS Europe SE’s investment banking business, covering

transactions subject to master netting agreements.

A similar guarantee that UBS

AG issued in 2003 for

the benefit of each counterparty

of UBS Limited also continues

to be

effective. This guarantee covers

transactions in accordance with

and contemplated under any agreement

entered into by

UBS Limited prior

to the

merger into UBS

Europe SE, to

the extent that

such an agreement

has not been

amended by

UBS Europe SE thereafter.

Under both guarantees,

UBS AG promises

to pay to

the beneficiary counterparties

any unpaid

liabilities covered under

the terms of the guarantees on demand. These guarantees are included as contingent liabilities in the off-balance sheet

items table above.

Indemnities – UBS Europe SE

In connection

with the

establishing of

UBS Europe

SE in

2016, UBS

AG entered

into agreements

with UBS

Europe SE

under which UBS AG would

provide UBS Europe

SE with limited indemnification of payment

obligations that may arise

from certain litigation, regulatory and similar matters.

As of

31 December 2025,

the amount

of such

potential payment

obligations could

not be

reliably estimated

and the

likelihood of

an outflow

is not

considered to be

probable or

the probability of

an outflow

was assessed to

be remote;

therefore, the table above does not include any amount related to this limited indemnification.

In addition, in accordance with the bylaws of the Deposit Protection Fund of the Association of German Banks, UBS AG

issued an indemnity in favor of

this fund on behalf of UBS

Europe SE. The probability of an

outflow was assessed to be

remote, and as a result, the table above does not include any exposure arising under this indemnity.

UBS AG standalone financial statements (audited)

Statement of changes in equity

USD m

Share capital

Statutory

capital

reserve

of which:

capital

contribution

reserve

of which:

other

statutory

capital

reserve

Voluntary

earnings

reserve and

profit / (loss)

carried

forward

Net profit /

(loss)

for the period

Total equity

Balance as of 1 January 2025

386

65,627

77,661

(12,034)

13,157

5,138

84,308

Net profit / (loss) appropriation

5,138

(5,138)

Dividend distribution

(13,000)

Net profit / (loss) for the period

9,149

Balance as of 31 December 2025

386

65,627

77,661

(12,034)

5,295

9,149

80,457

1 Includes ordinary dividend distribution of USD 6,500m and supplementary dividend distribution of USD 6,500m out of special dividend reserve within the

voluntary earnings reserve.

Statement of changes in equity

CHF m

Share capital

Statutory

capital

reserve

of which:

capital

contribution

reserve

of which:

other

statutory

capital

reserve

Voluntary

earnings

reserve and

profit / (loss)

carried

forward

Net profit /

(loss)

for the period

Total equity

Balance as of 1 January 2025

380

60,185

70,626

(10,441)

11,311

4,684

76,560

Effect of translating opening balance at closing rate

(74)

(8,149)

(9,047)

899

(878)

(610)

(9,710)

Net profit / (loss) appropriation

4,074

(4,074)

Dividend distribution

(10,308)

Net profit / (loss) for the period

7,254

Balance as of 31 December 2025

306

52,037

61,579

(9,542)

4,199

7,254

63,796

1 Refer to “Presentation currencies” in Note 2a for more information.

2 Includes ordinary dividend distribution of CHF 5,154m and supplementary dividend distribution of CHF 5,154m out

of special dividend reserve

within the voluntary earnings reserve.

UBS AG standalone financial statements (audited)

Note 1

Name, legal form and registered office

UBS AG

is incorporated

and domiciled

in Switzerland.

Its registered

offices are

at Bahnhofstrasse 45,

CH-8001 Zurich

and

Aeschenvorstadt

CH-4051

Basel,

Switzerland.

UBS

operates

under

Art.

620

seq.

the

Swiss

Code

Obligations and Swiss banking law as an

Aktiengesellschaft

, a corporation limited by shares.

UBS AG is

a regulated bank

in Switzerland and

is 100% owned

by UBS Group

AG, the ultimate

parent of the

UBS Group.

UBS AG holds

investments in and

provides funding to

subsidiaries, including the

other banking subsidiaries

of the UBS

Group. In addition, UBS AG operates globally, including business activities from all five UBS business divisions (which are

supported

Group

functions

which

mainly

include

Group

Services

and

Group

Treasury).

the

ordinary

course

business, the main contributors to the

net profit / (loss) of

UBS AG are Group Treasury

(including dividend income from

investments

subsidiaries

and

other

participations),

Global

Wealth

Management,

the

Investment

Bank

and

Group

Services. The balance

sheet is mainly

composed of financial

assets and liabilities

from the Investment

Bank, Global Wealth

Management and Group Treasury,

as well as investments

in subsidiaries and other

participations in Group Treasury

and

fixed assets of Group Services.

UBS AG

employed 15,045

personnel on

a full-time

equivalent basis

as of

31 December

2025, compared

with 18,161

personnel as of 31 December 2024.

Note 2

Accounting policies

a) Significant accounting policies

UBS AG

standalone financial

statements are prepared

in accordance

with Swiss

GAAP (the

FINMA Accounting

Ordinance,

FINMA Circular 2020/1 “Accounting – banks” and the Banking Ordinance) and represent “reliable assessment statutory

single-entity financial

statements”. The

accounting policies

are principally

the same

as those

outlined in

Note 1

to the

consolidated financial statements

of UBS AG

included in the

UBS AG Annual Report

2025. Major differences

between

the

Swiss

GAAP

requirements

and

IFRS

Accounting

Standards

are

described in

Note

the consolidated

financial

statements of UBS AG. The

significant accounting policies applied

for the standalone financial

statements of UBS AG

are

discussed below.

›

Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2025, available under “Annual reporting”

ubs.com/investors

, for more information

Compensation policy

The compensation structure

and processes

of UBS AG

conform to the

compensation principles and

framework of UBS

Group AG.

›

Refer to the UBS Group AG Compensation Report 2025, available under “Annual reporting”

ubs.com/investors

, for more

information

Deferred compensation

Expenses for

deferred compensation

awards granted

by UBS

Group AG

to employees

of UBS

AG in

the form

of UBS

shares, notional additional tier 1 (AT1) capital instruments and notional investment funds

are charged by UBS Group AG

to UBS AG.

›

Refer to “Note 26 Employee benefits: variable compensation”

in the “Consolidated financial statements” section of the UBS AG

Annual Report 2025, available under “Annual reporting” at

ubs.com/investors

, for more information

Foreign currency translation

Non-US-dollar-denominated

transactions

are

translated into

dollars

the

spot

exchange

rate

the

date

the

transaction. At the balance sheet date, all

non-US-dollar-denominated monetary assets and liabilities, as well as non-US-

dollar-denominated equity instruments recorded in

Trading portfolio assets

and

Financial investments

, are translated into

dollars

using

the

closing exchange

rate.

Non-monetary

items

measured

historic

cost

are

translated

the

spot

exchange rate on the date of the transaction. Assets and liabilities of branches with functional currencies other than the

US dollar

are translated

into US

dollars at

the closing

exchange rate.

Income and

expense items

of such

branches are

translated

weighted-average

exchange

rates

for

the

period.

All

currency

translation

effects

are

recognized

the

income statement.

›

Refer to Note 2c for information about the retroactive translation of Credit

Suisse AG’s financial information in 2024 following

the merger of UBS AG and Credit Suisse AG

The

main

currency

translation

rates

used

UBS

are

provided

Note

the

UBS

consolidated

financial

statements in the UBS AG Annual Report 2025.

›

Refer to “Note 31 Currency translation rates” in the “Consolidated financial statements” section of the UBS

AG Annual Report

2025, available under “Annual reporting” at

ubs.com/investors

, for more information

UBS AG standalone financial statements (audited)

Note 2

Accounting policies (continued)

Presentation currencies

The primary presentation

currency of the

financial statements of

UBS AG is

the US dollar.

Amounts in Swiss

francs are

additionally presented for each component of the financial statements.

As of 1

January 2025, UBS

AG has prospectively

adopted the closing

rate method for

presenting US dollar

amounts in

Swiss francs. Under

this method, all assets,

liabilities and equity positions,

as well as

income and expense items

and other

movements, are

translated at

the closing

rate. For

movement tables,

such as

the statement

of changes

in equity,

the

opening balance is remeasured at the closing rate, with

the resulting currency translation effect presented in a separate

row or column as

Effect of translating opening balance at closing rate

In the comparative period,

UBS AG applied the

modified closing rate method

for converting the US

dollar presentation

currency amounts into

Swiss francs: assets

and liabilities were

converted at the

closing rate, equity

positions at historic

rates

and

income

and

expense

items

the

weighted-average

rate

for

the

period.

The

resulting

currency

translation

effects were recognized separately in

Voluntary earnings reserve

UBS AG

has updated

the accounting

policy as

it provides

a more

current and

more relevant

presentation of

the Swiss

franc

equivalents

the

underlying

dollar

amounts.

The

change

the

accounting

policy

had

impact

the

amounts presented in the primary presentation currency, the US dollar.

›

Refer to Note 2c for information about the retroactive translation of Credit

Suisse AG’s financial information in 2024 following

the merger of UBS AG and Credit Suisse AG

Structured debt instruments

Structured

debt

instruments

consist

debt

instruments

issued

and

transacted

over

the

counter

and

include

host

contract and one

or more embedded

derivatives that do

not relate

to UBS AG’s

own equity.

By applying the

fair value

option, the vast

majority of structured debt

instruments are measured at

fair value as

a whole and

recognized in

Financial

liabilities designated

at fair

value

. The

fair value

option for

structured debt

instruments can

be applied

only if

the following

criteria are cumulatively met:

–

the structured debt instrument is measured on a

fair value basis and is subject to

risk management that is equivalent

to risk management for trading activities;

–

the

application

the

fair

value

option

eliminates

significantly

reduces

accounting

mismatch

that

would

otherwise arise; and

–

changes in fair value attributable to changes in unrealized own credit are not recognized.

Fair value changes related to

Financial liabilities designated at fair value

, excluding changes in unrealized own credit, are

recognized in

Net trading income

. Interest expense on

Financial liabilities designated at

fair value

is recognized in

Interest

expense

Where the

designation criteria

for the

fair value

option are

not met,

the embedded

derivatives are

assessed for

bifurcation

for

measurement

purposes.

Bifurcated

embedded

derivatives

are

measured

fair

value

through

profit

loss

and

presented in the same balance sheet line as the host contract.

›

Refer to Note 20 for more information

Group-internal funding

UBS AG obtains

funding from UBS Group

AG in the

form of loans

that are subject to

mandatory conversion and

/ or debt

waiver, as explained below, and generally either qualify

as loss-absorbing tier

1 capital or as

gone concern loss-absorbing

capacity,

i.e. total funding

eligible as total

loss-absorbing capacity (TLAC),

at the

UBS AG consolidated

and standalone

levels. A portion of

Group-internal funding obtained is

further on lent by

UBS AG to certain

subsidiaries in the form

loans.

›

Refer to Note 21 for information about funding eligible as total loss-absorbing capacity at the UBS AG level

UBS AG’s

obligations arising

from Group-internal

funding it

has received

are presented

Funding received

from UBS

Group AG measured at amortized

cost

and

Funding received from UBS Group AG

within

Financial liabilities designated

at fair value.

UBS AG’s claims arising from the Group-internal

funding it has provided are presented as

Funding provided

to significant regulated subsidiaries eligible as total loss-absorbing capacity

and are measured at amortized cost less any

allowance for expected credit losses.

UBS AG standalone financial statements (audited)

Note 2

Accounting policies (continued)

Subordinated assets and liabilities

Subordinated assets

are composed of

claims that, based

on an irrevocable

written declaration, in

the event of

liquidation,

bankruptcy or

composition concerning

the debtor

rank after

the claims

of all

other creditors

and may

not be

offset against

amounts

payable

the

debtor

nor

secured

its

assets.

Subordinated

liabilities

are

composed

corresponding

obligations.

Subordinated

assets

and

liabilities

that

contain

point-of-non-viability

clause

accordance

with

Swiss

capital

requirements pursuant to

Art. 29 and

30 of the

Capital Adequacy Ordinance

are disclosed as

being

Subject to mandatory

conversion and / or debt waiver

and provide for the claim or the obligation to be

written off or converted into equity in

the event that the issuing bank reaches a point of non-viability.

Investments in subsidiaries and other participations

are equity interests that are held to carry on the business of UBS AG

or for other strategic purposes. They include all subsidiaries directly held

by UBS AG through which UBS AG conducts its

business on a

global basis. The

investments are measured individually

and carried at

cost less impairment.

The carrying

amount is

tested for

impairment when

indicators of

a potential

decrease in

value exist,

which include

significant operating

losses incurred

or a

severe depreciation

of the

currency in

which the

investment is

denominated. If

an investment

in a

subsidiary is impaired, its value is generally written down to

the net asset value or a value above the net asset

value if, in

the opinion of

management, forecasts of

future profitability provide

sufficient evidence that

a carrying amount

above net

assets

supported.

Subsequent

recoveries

value

are

recognized

the

original

cost

value

based

either

increased net asset value or

a value above the

net asset value if

aforementioned conditions are met. Management

may

exercise its

discretion as

to what

extent, and

in which

period, a

recovery in

value is

recognized. Impairments

of investments

are

presented as

Impairment

investments in

subsidiaries

and

other

participations

and

reversals

impairments

are

presented as

Extraordinary income

in the income statement. Impairments and partial or full reversals of impairments for

a subsidiary during the same annual period are determined on a net basis.

›

Refer to Note 4 for more information

Hedge accounting for Investments in subsidiaries and other participations

UBS

applies

hedge

accounting

for

certain

investments

subsidiaries

and

other

participations

denominated

currencies

other

than

the

dollar,

which

are

designated

hedged

items.

For

this

purpose,

foreign

exchange

(FX)

derivatives, mainly FX forwards and FX swaps, are used and designated as hedging instruments.

The hedged risk is

determined as the change

in the carrying amount

of the hedged item

arising solely from changes

spot FX

rates. Consequently,

UBS AG

only designates

the spot

element of

the FX

derivatives as

hedging instruments.

Changes in the fair value

of the hedging instruments attributable

to changes in forward points

are not part of a

hedge

accounting designation. These amounts, therefore, do not

form part of the effectiveness assessment and

are recognized

Net trading income

The effective portion of gains

and losses of these FX

derivatives is deferred on the

balance sheet as

Other assets

Other

liabilities

to the extent no change is recognized in the carrying amount of the hedged item arising from changes in

spot

FX rates. Otherwise, the effective portion of

gains and losses of these FX derivatives

is matched with the corresponding

valuation

adjustments

the

hedged

item

recorded

the

income

statement

and

recorded

either

reduction

Impairment of investments in subsidiaries and other participations

or as

Extraordinary income

Revenue and expense transfers with other Group entities

UBS

pays

and

receives

amounts

from

other

Group

entities

connection

with

revenue-sharing

arrangements.

Revenues transferred to and received from Group entities are settled in cash as entity revenue transfers

paid or received.

When

the

nature

the

underlying

transaction

between

UBS

and

the

Group

entity

contains

single,

clearly

identifiable service component,

related income and expenses are

presented in the respective income

statement line item,

e.g.

Fee and commission

income from securities

and investment business

and other fee

and commission income

Fee and

commission

expense

Net

trading

income

the

extent

the

nature

the

underlying

transaction

contains

various

service components

and is

not clearly

attributable to

a particular

income statement

line item,

related income

and expenses

are presented in

Sundry ordinary income

and

Sundry ordinary expenses

UBS AG

receives services

from UBS

Business Solutions

AG, mainly

relating to

the Group

Operations and

Technology Office,

as well as certain other services from other Group entities.

UBS AG provides services to Group entities, mainly relating to real estate and selected other Group Services functions.

Services received from and provided

to Group entities are

settled in cash as

entity cost transfers paid

or received. Entity

cost

transfers

paid

are

presented

within

General

and

administrative

expenses

and

entity

cost

transfers

received

are

presented within

Sundry ordinary income

Income from real estate holdings

›

Refer to Notes 5 and 7 for more information

UBS AG standalone financial statements (audited)

Note 2

Accounting policies (continued)

Post-employment benefit plans

Swiss GAAP

permit the

use of

IFRS Accounting

Standards or

Swiss accounting

standards for

post-employment benefit

plans, with the election made on a plan-by-plan basis.

UBS AG

has elected

to apply

Swiss accounting

standards for

the Swiss

pension plans

in its

standalone financial

statements.

The requirements of the

Swiss accounting standards are

better aligned with the

specific nature of

Swiss pension plans,

which are

hybrid in

that they

combine elements

of defined

contribution and

defined benefit

plans but

are treated

defined

benefit

plans

under

IFRS

Accounting

Standards.

Swiss

accounting

standards

require

that

the

employer

contributions

the

pension

fund

are

recognized

Personnel

expenses

the

income

statement.

The

employer

contributions to

the Swiss

pension fund

are determined

as a

percentage of

contributory compensation.

Furthermore,

Swiss accounting standards require

an assessment as to

whether, based on the financial

statements of the pension funds

prepared in accordance with Swiss accounting standards (Swiss GAAP FER 26), an economic benefit to, or obligation of,

UBS AG arises from

the pension funds that is

recognized in the balance sheet

when conditions are met. Conditions

for

recording a

pension asset

or liability

would be

met if,

for example,

an employer

contribution reserve

was available

UBS AG was required

to contribute to

the reduction of

a pension deficit

(on the pension

plan’s Swiss GAAP

FER 26 basis).

Key differences between

Swiss accounting standards

and IFRS Accounting

Standards include the

treatment of dynamic

elements, such

as future

salary increases

and future

interest credits

on retirement

savings, which

are not

considered under

the static

method used

in accordance

with Swiss

accounting standards.

Also, the

discount rate

used to

determine the

defined benefit obligation in accordance with IFRS Accounting Standards is based on the yield of high-quality corporate

bonds of the market in the respective pension plan

country. The discount rate used in accordance

with Swiss accounting

standards, i.e. the technical interest rate, is determined by the Pension Foundation Boards.

›

Refer to Note 23 for more information

UBS

has

elected

apply

IFRS

Accounting

Standards

(IAS 19)

for

its

non-Swiss

defined

benefit

plans.

However,

remeasurements of

the defined

benefit obligation

and the

plan assets

are recognized

in the

income statement

rather

than directly in equity.

›

Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2025, available under “Annual reporting”

ubs.com/investors

, for more information

Deferred taxes

Deferred tax assets are not recognized

in UBS AG’s standalone financial

statements. However, deferred tax liabilities

may

recognized

for

taxable

temporary

differences.

Changes

the

deferred

tax

liability

balance

are

recognized

the

income statement.

Allowances and provisions for expected credit losses

UBS AG is required to

apply expected credit loss (ECL)

approaches for credit-impaired and non-credit-impaired

financial

instruments in its standalone financial statements.

For

the substantial

majority of

non-credit-impaired exposures

within the

scope of

the Swiss

GAAP ECL

requirements,

UBS AG

has

chosen

apply

the

IFRS

Accounting

Standards

ECL

approach,

which

also

applied

its

consolidated

financial

statements.

These

exposures

include

all

financial

assets

that

are

measured

amortized

cost

under

both

frameworks, Swiss GAAP

and IFRS Accounting

Standards, fee and

lease receivables, claims

arising from Group-internal

funding

presented

Funding

provided

significant

regulated

subsidiaries

eligible

total

loss-absorbing

capacity

guarantees, irrevocable loan commitments, revolving revocable credit lines, and forward starting reverse repurchase and

securities

borrowing

agreements.

Further

information

about

the

ECL

approach

under

IFRS

Accounting

Standards

provided in Note 1 to the consolidated financial statements of UBS AG.

›

Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2025, available under “Annual reporting”

ubs.com/investors

, for more information

For the

small residual

population of

exposures within

the scope

of the

Swiss GAAP

ECL requirements,

which are

not

subject to ECL under IFRS Accounting Standards due to classification differences, alternative approaches are applied.

–

For exposures for which

Pillar 1 internal ratings-based

models are applied for

measurement of credit

risk risk-weighted

assets (RWA), ECL for such exposures is calculated as the regulatory expected

loss (EL), with an add-on to scale up to

the residual maturity

of exposures maturing

beyond the next

12 months. This

approach is mainly

applied for brokerage

receivables presented within

Due from customers

, which

generally mature within 12

months. For detailed information

about regulatory EL, refer to the “Risk management and control” section of the UBS AG Annual Report 2025.

–

For

exposures

for

which

the

standardized

approach

applied

for

the

measurement

credit

risk

RWA,

ECL

determined using a

portfolio approach that

derives a conservative

probability of default

(PD) and a

conservative loss

given

default

(LGD)

for

the

entire

portfolio.

This

approach

mainly

applied

for

small

number

loans

large

corporate clients presented within

Due from customers

UBS AG standalone financial statements (audited)

Note 2

Accounting policies (continued)

UBS

applies a

single

definition of

default for

credit

risk management

purposes, regulatory

reporting and

ECL, with

counterparty classified as defaulted based on quantitative and qualitative criteria.

›

Refer to the “Risk management and control” section of the UBS AG Annual Report 2025, available

under “Annual reporting” at

ubs.com/investors

, for more information

An allowance

for credit

losses is

reported as

a decrease

in the

carrying amount of

a financial

asset. For

an off-balance

sheet

item, such

as a

commitment, a

provision for

credit losses

is reported

Provisions

. Changes

to allowances

and

provisions for credit losses are recognized in

Credit loss (expense) / release

›

Refer to Note 13 for more information

Dispensations in the standalone financial statements

As UBS AG prepares consolidated

financial statements in accordance

with IFRS Accounting Standards, UBS

AG is exempt

from various disclosures

in the standalone

financial statements. The dispensations

include the management

report, the

statement of cash flows and various note disclosures, as well as the publication of full interim financial statements.

b) Changes in accounting policies

As of 1 January 2025, UBS AG has prospectively adopted the closing rate method for translating the US dollar amounts

included in the financial statements into the additional presentation currency,

i.e. the Swiss franc.

›

Refer to Note 2a Presentation currencies for more information

c) Changes in organization and other events affecting profitability

2025,

UBS

continued

the

integration

Credit

Suisse,

with

focus

client

account

migrations,

infrastructure

decommissioning and legal entity integration.

›

Refer to the “Our business model and environment” section of the UBS AG Annual Report 2025,

available under “Annual

reporting” at

ubs.com/investors

, for more information

Transfer of Global Wealth Management International and Global Financial Intermediaries businesses

In 2025, UBS decided to consolidate the

Wealth Management International business, the

Global Financial Intermediaries

business, and other related businesses

booked in Switzerland in UBS

AG to further optimize Group

legal and operational

structures and to address regulatory considerations.

In the

second quarter

of 2025,

UBS Switzerland

AG transferred

the beneficial

ownership of

the Wealth

Management

International business and the Global Financial

Intermediaries business booked in UBS Switzerland AG

to UBS AG, with

effect

from

January

2025.

The

transfer

was

made

the

form

dividend

kind

amounting

USD

126m

(CHF 100m), reflecting the net

asset value of the

in-scope businesses. In the

fourth quarter of 2025,

UBS Switzerland AG

transferred the beneficial ownership

of the related businesses

to UBS AG, with

effect from 1 May

2025. The transfer was

made in

the form

of a

dividend in

kind amounting

to USD 1,261

(CHF 1,000), reflecting

the net

asset value

of the

in-

scope businesses.

UBS

Switzerland

will

continue to

manage

the

businesses

under

contractual

relationship

with

UBS

until

the

completion of legal

transfer, which is

expected to take

place in 2028,

and will continue

to recognize the

underlying assets

and liabilities of the

relevant businesses until then.

UBS AG’s share of

the net profits of

USD 695m (CHF 551m) for the

full year of 2025

is reflected in

Fee and commission income

from securities and investment

business and other fee

and

commission income

Merger of UBS AG and Credit Suisse AG, completed in 2024

In December 2023, the Board of Directors of UBS Group

AG approved the merger of UBS AG and Credit Suisse

AG, and

both

entities entered

into

definitive merger

agreement, as

amended on

April 2024.

On 31

May 2024,

UBS

formally completed the merger

by absorption of Credit

Suisse AG. In the standalone

financial statements of UBS

AG, the

acquisition has been accounted for

retroactively as of 1 January

2024, applying the previous book

values of Credit Suisse

AG.

The

merger

balance

sheet

with

assets

USD

306,447m

(CHF

257,935m)

and

liabilities

USD 275,105m

(CHF 231,554m)

was

recognized,

together

with

corresponding

increase

Statutory

capital

reserves

equity

USD 31,343m (CHF 26,381m),

of which

USD 55,471m

(CHF 46,690m) was

attributed to

Capital contribution

reserve

and

negative USD 24,129m (negative CHF 20,309m) to

Other statutory capital reserve

UBS AG’s

accounting policies

and methodologies

were applied

retroactively from

1 January

2024. This

resulted in

adjustment, which was recorded in

Extraordinary expenses

of USD 598m (CHF 504m).

›

Refer to Note 9 for more information

UBS AG standalone financial statements (audited)

Note 2

Accounting policies (continued)

Furthermore, the retroactive translation of Credit Suisse AG’s financial information, previously expressed in Swiss francs,

(i.e. the merger balance sheet, the accounting

policy application and the activity from 1 January

2024 to 31 May 2024)

UBS

AG’s

presentation

currency,

the

dollar,

resulted

foreign

currency

translation

effect

USD 2,049m

(CHF 1,851m), which was recorded as a reduction of

Other statutory capital reserves

within

Statutory capital reserves

Profit and loss information for 2024 includes the full-year profit and loss of the merged Credit Suisse AG.

d) Events after the reporting period

Transfer of Global Wealth Management International and Global Financial Intermediaries businesses

In connection with the migration of

legacy Credit Suisse clients to UBS’s

client platform, UBS has decided to

transfer to

UBS Switzerland AG,

the Wealth Management

International business, the

Global Financial Intermediaries

business and

other

businesses

booked

UBS

Switzerland

that

are

associated

with

legacy

Credit

Suisse

clients.

The

beneficial ownership of

these businesses is

retained by

UBS AG.

The execution

of the

transfer is

effected through two

statutory bulk transfers pursuant to the Swiss Merger Act,

both with effect as of 1 January 2026. The combined

transfer

balance sheets consist

of assets of

USD 16.5bn (CHF 13.1bn) (mainly

loans) and liabilities

of USD 15.9bn (CHF 12.6bn)

(mainly customer deposits).

e) Risk management

UBS

fully

integrated

into

the

Group-wide

risk

management

process

described

the

audited

part

the

“Risk

management and control” section of the UBS AG Annual Report 2025.

Further information about

the use

of derivative

instruments and

hedge accounting

is provided

on the

following pages

and in Notes 1, 10 and 24 to the consolidated financial statements of UBS AG.

›

Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2025, available under “Annual reporting”

ubs.com/investors

, for more information

Note 3a

Net trading income by business

USD m

CHF m

For the year ended

31.12.25

31.12.24

31.12.25

31.12.24

Investment Bank

8,295

7,450

6,577

6,586

Other business divisions and Group Items

1,147

2,001

910

1,748

Total net trading income

9,442

9,451

7,487

8,334

1 Almost entirely Global Markets.

2 Group Items reflects the residual amount of Group functions which is not allocated to the business divisions.

Note 3b

Net trading income by underlying risk category

USD m

CHF m

For the year ended

31.12.25

31.12.24

31.12.25

31.12.24

Equity instruments (including funds)

6,406

6,198

5,080

5,485

Foreign exchange instruments

1,650

1,588

1,309

1,397

Interest rate and credit instruments (including funds)

1,261

1,780

1,000

1,551

Other

124

(114)

(99)

Total net trading income

9,442

9,451

7,487

8,334

of which: net gains / (losses) from financial liabilities designated at fair value

(4,584)

(981)

(3,635)

(829)

1 Excludes fair value changes of hedges related to financial

liabilities designated at fair value and foreign currency effects

arising from translating foreign currency transactions

into the respective functional currency,

both of which are reported within Net trading income.

UBS AG standalone financial statements (audited)

Note 4

Investments in subsidiaries and other participations

The table

below provides

the carrying

amount, the

equity interest

and the

registered office

information regarding

the

investments in subsidiaries and other participations.

Investments in subsidiaries and other participations

Registered office

Equity interest

accumulated in %

Carrying amount in USD m

Carrying amount in CHF m

31.12.25

31.12.24

31.12.25

31.12.24

UBS Americas Holding LLC

Wilmington, Delaware, USA

100

28,835

31,834

22,864

28,908

UBS Switzerland AG

Zurich, Switzerland

100

20,997

20,996

16,649

19,066

UBS Europe SE

Frankfurt, Germany

100

4,686

4,175

3,716

3,791

UBS Asset Management AG

Zurich, Switzerland

100

2,648

2,260

2,099

2,053

Credit Suisse International

London, United Kingdom

2,633

5,040

2,088

4,577

Other

6,295

8,799

4,991

7,990

Total investments in subsidiaries and other participations

66,093

73,103

52,406

66,385

Impairments and reversal of impairments

2025,

UBS

recognized

Impairments

investments

subsidiaries

and

other

participations

USD 2,808m

(CHF 2,226m), mainly

due to

impairments of

the investments

in Credit

Suisse International

(USD 1,073m (CHF 851m))

and Credit Suisse

Investments (UK),

the indirect holding

company of Credit

Suisse Securities (Europe)

Limited, (USD 581m

(CHF 461m)), which

partly offset

the dividends

received from

those subsidiaries.

In 2024,

UBS AG

recognized

Impairments

of investments in subsidiaries and other participations

of USD 543m (CHF 500m).

In 2025,

UBS AG

recognized

Reversal of impairments

of investments

in subsidiaries

and other participations

of USD 889m

(CHF 705m). In 2024, UBS

AG recognized

Reversal of impairments of

investments in subsidiaries and

other participations

of USD 3,996m (CHF 3,497m),

mainly due to

a reversal of

an impairment of

the investment in

Credit Suisse International,

as the

recoverable amount

of this

participation increased,

mainly due

to the

progression of

the integration,

including

improved actual financials and forecasted financial performance.

Dividends and capital repayments

Dividend income from investments

in subsidiaries and other

participations

of USD 10,812m (CHF 8,573m) in

2025 and

USD 6,275m

(CHF 5,730m)

2024

was

mainly

attributable

UBS Switzerland AG,

Credit

Suisse

International,

UBS

Europe SE and Credit Suisse Securities (Europe) Limited.

In December 2025, UBS

Americas Holding LLC repaid

capital of USD 3.0bn (CHF 2.4bn)

and Credit Suisse International

repaid capital

of USD 1.3bn

(CHF 1.1bn) to

UBS AG.

In December

2024, UBS

Americas Holding

LLC repaid

capital of

USD 6.0bn (CHF 5.4bn) and Credit Suisse International repaid capital of USD 7.0bn (CHF 6.3bn) to UBS AG.

Note 5

Sundry ordinary income and expenses

USD m

CHF m

For the year ended

31.12.25

31.12.24

31.12.25

31.12.24

Income from services provided to UBS Group AG or its subsidiaries

2,513

2,779

1,993

2,436

Net unrealized gains on financial investments

Other

454

360

Total sundry ordinary income

2,985

2,814

2,367

2,470

Loss on repurchase of debt

(960)

(762)

Expenses from revenue transfers to UBS Group AG or its subsidiaries

(877)

(641)

(696)

(566)

Net unrealized losses on financial investments

(116)

(98)

Other

(89)

(42)

(71)

(36)

Total sundry ordinary expenses

(1,927)

(800)

(1,528)

(700)

1 Services provided by UBS

AG primarily related to Group

Services.

2 2025 includes a gain

of USD 407m (CHF 322m)

arising from the derecognition

of an amortized cost liability

below book value.

3 For 2025

reflects a loss from the repurchase of legacy Credit Suisse debt instruments. The

debt repurchased included instruments issued directly by UBS AG and instruments on lent from UBS Group AG.

UBS AG standalone financial statements (audited)

Note 6

Personnel expenses

USD m

CHF m

For the year ended

31.12.25

31.12.24

31.12.25

31.12.24

Salaries

2,741

2,929

2,173

2,588

Variable compensation – performance awards

1,791

1,450

1,420

1,280

Variable compensation – other

242

308

192

274

Contractors

Social security

387

340

307

300

Post-employment benefit plans

255

277

202

243

of which: value adjustments for economic benefits or obligations from non-Swiss pension funds

Other personnel expenses

181

152

144

134

Total personnel expenses

5,657

5,511

4,486

4,868

1 Reflects the remeasurement of the defined benefit obligation and return on plan assets excluding amounts included in interest income for the non-Swiss

defined benefit plans, for which IAS 19 is applied.

Note 7

General and administrative expenses

USD m

CHF m

For the year ended

31.12.25

31.12.24

31.12.25

31.12.24

Real estate

661

630

524

556

Outsourcing costs

162

275

128

243

Technology costs

218

242

173

214

Market data services

211

229

167

202

Travel and entertainment

107

101

Marketing and communication

Fees to audit firms

of which: financial and regulatory audits

of which: audit-related services

of which: tax and other services

Other professional fees

323

487

256

431

Other

5,556

5,997

4,405

5,288

of which: shared services costs charged by UBS Group AG or its subsidiaries

5,027

5,572

3,986

4,911

Total general and administrative expenses

7,335

8,097

5,816

7,144

UBS AG standalone financial statements (audited)

Note 8

Changes in provisions for litigation, regulatory and similar matters, and other provisions

Included

2025

were

litigation

expenses

USD

256m

(CHF

203m)

and

2024

included

litigation

expenses

USD 1,005m (CHF 905m), largely in the Non-core and Legacy business division.

›

Refer to “Note 17 Provisions and contingent liabilities” in the “Consolidated financial statements” section

of the UBS AG Annual

Report 2025, available under “Annual reporting” at

ubs.com/investors

, for more information

Note 9

Extraordinary income and expenses

USD m

CHF m

For the year ended

31.12.25

31.12.24

31.12.25

31.12.24

Reversal of impairments of subsidiaries and other participations

889

3,996

705

3,497

Gains from disposals of subsidiaries and other participations

198

181

Net gains from disposals of properties

Other extraordinary income

Total extraordinary income

904

4,211

716

3,693

Accounting policy and methodology alignment effect upon merger of UBS AG and Credit Suisse AG

598

504

Other extraordinary expense

Total extraordinary expenses

600

505

1 Refer to Note 4 for more information.

2 Refer to Note 2c for more information.

Gains from disposals of

subsidiaries and other participations

in 2024 included a

gain of USD

169m (CHF 155m) on

the

sale of Credit Suisse Services India Ltd, a former subsidiary of Credit Suisse AG, to UBS Business Solutions AG.

2024 accounting policy and methodology alignment effect upon merger of UBS AG and Credit Suisse AG

As a

result of the

merger of

UBS AG

and Credit Suisse

AG, UBS

AG’s accounting

policies and

methodologies were

applied

to the merger balance sheet of Credit Suisse AG as of 1 January 2024.

This resulted in a merger adjustment of USD 598m (CHF 504m), which was recorded in

Extraordinary expenses

in 2024.

The

adjustment

included

the

alignment

methodologies

credit

allowances

and

provisions

(USD –559m

(CHF –

471m)), which

Credit Suisse

AG generally

accounted for

by reference

to US

GAAP compared

with UBS

AG’s general

application

IFRS

Accounting

Standards,

own

credit

adjustment

curves

(USD

–537m

(CHF –452m))

and

smaller

adjustments related to the classification of certain debt instruments at

fair value compared to a legacy Credit Suisse AG

amortized cost

treatment, and

full expense

recognition of

certain loan

origination costs

and fees at

inception, which

were

previously deferred

and recognized

over time

by Credit

Suisse AG.

These effects

were partly

reduced by

the effects

electing the

fair value

option for

certain structured

TLAC instruments

under UBS

AG’s accounting

policies (USD

513m

(CHF 432m)),

and

smaller adjustments

the measurement

real

estate and

the

recognition

net defined

benefit assets.

UBS AG standalone financial statements (audited)

Note 10

Taxes

USD m

CHF m

For the year ended

31.12.25

31.12.24

31.12.25

31.12.24

Income tax expense / (benefit)

232

461

184

416

of which: current

240

492

190

443

of which: deferred

(7)

(31)

(6)

(28)

Capital tax

Total tax expense / (benefit)

238

501

189

451

A net

income tax expense

of USD

232m (CHF 184m)

was recognized for

UBS AG in

2025, compared

with USD 461m

(CHF 416m) for 2024. The income tax expense for 2025 was reduced by a

benefit of USD 62m (CHF 49m) in respect of

the utilization of tax losses carried forward, primarily in Jersey and Singapore.

The income tax

expense for 2024

was reduced by

a benefit of

USD 36m (CHF

32m) in respect

of the utilization

of tax

losses carried forward, primarily in Jersey and Singapore.

The income tax expenses for 2025 and 2024 related to UBS AG’s taxable profits that

are not offset by tax losses carried

forward.

For

2025,

the

average

tax

rate,

defined

net

income

tax

expense

divided

the

sum

operating

profit

and

extraordinary

income

minus

extraordinary

expenses

and

capital

tax,

was

2.5%

(2024:

8.2%).

This

reflected

the

aforementioned

benefit

respect

the

utilization

tax

losses

carried

forward

and

also

that

tax

expense

was

recognized in respect of dividends that UBS AG received from its subsidiaries.

Note 11

Securities financing transactions

USD bn

CHF bn

31.12.25

31.12.24

31.12.25

31.12.24

On-balance sheet

Receivables from securities financing transactions, gross

188.8

200.9

149.7

182.4

Netting of securities financing transactions

(98.2)

(83.5)

(77.9)

(75.8)

Receivables from securities financing transactions, net

90.6

117.3

71.8

106.6

Payables from securities financing transactions, gross

126.3

126.2

100.2

114.6

Netting of securities financing transactions

(98.2)

(83.5)

(77.9)

(75.8)

Payables from securities financing transactions, net

28.1

42.6

22.3

38.7

Assets pledged as collateral in connection with securities financing transactions

87.4

74.8

69.3

67.9

of which: trading portfolio assets

74.6

61.8

59.1

56.1

of which: assets that may be sold or repledged by counterparties

51.3

44.5

40.7

40.4

of which: financial investments

12.8

13.0

10.2

11.8

of which: assets that may be sold or repledged by counterparties

12.0

12.8

9.6

11.7

Off-balance sheet

Fair value of assets received as collateral in connection with securities financing transactions

504.1

425.2

399.7

386.1

of which: repledged

339.6

266.1

269.2

241.6

of which: sold in connection with short sale transactions

47.3

29.3

37.5

26.6

UBS AG standalone financial statements (audited)

Note 12a

Collateral for loans and off-balance sheet transactions

31.12.25

31.12.24

Secured

Unsecured

Total

Secured

Unsecured

Total

Secured by collateral

Secured by

other credit

enhancements

Secured by collateral

Secured by

other credit

enhancements

USD m

Real estate

Other

collateral

Real estate

Other

collateral

On-balance sheet

Due from customers, gross

120,805

1,809

38,846

161,480

102,479

4,515

43,630

150,665

Mortgage loans, gross

8,715

8,446

of which: residential mortgages

4,770

5,242

of which: other mortgages

3,945

3,204

Funding provided to significant

regulated subsidiaries eligible as

total loss-absorbing capacity, gross

45,106

43,675

Total on-balance sheet, gross

8,735

120,805

1,809

83,952

215,301

8,486

102,479

4,515

87,305

202,786

Allowances

(20)

(255)

(66)

(709)

(1,049)

(7)

(109)

(40)

(1,584)

(1,740)

Total on-balance sheet, net

8,715

120,550

1,744

83,243

214,252

8,479

102,370

4,475

85,721

201,045

Off-balance sheet

Contingent liabilities, gross

30,055

211

15,355

45,623

20,590

1,276

13,092

34,989

Irrevocable commitments, gross

1,114

26,380

1,924

14,227

43,644

737

23,883

2,728

17,120

44,469

Forward starting reverse repurchase

and securities borrowing

transactions

56,836

64,036

Liabilities for calls on shares and

other equities

Total off-balance sheet

1,116

113,271

2,135

29,587

146,109

768

108,510

4,004

30,217

143,499

1 Mainly includes cash

and securities.

2 Includes guarantees.

3 Includes prime brokerage

margin lending receivables

and prime brokerage

receivables relating to

securities financing transactions.

4 Primarily

consists of amounts due from subsidiaries and other Group entities.

5 Consists of office and business premises, industrial premises, and other

mortgages.

Collateral for loans and off-balance sheet transactions

31.12.25

31.12.24

Secured

Unsecured

Total

Secured

Unsecured

Total

Secured by collateral

Secured by

other credit

enhancements

Secured by collateral

Secured by

other credit

enhancements

CHF m

Real estate

Other

collateral

Real estate

Other

collateral

On-balance sheet

Due from customers, gross

95,789

1,434

30,801

128,041

93,061

4,100

39,620

136,818

Mortgage loans, gross

6,910

7,669

of which: residential mortgages

3,783

4,760

of which: other mortgages

3,128

2,908

Funding provided to significant

regulated subsidiaries eligible as

total loss-absorbing capacity, gross

35,765

39,662

Total on-balance sheet, gross

6,926

95,789

1,434

66,567

170,716

7,706

93,061

4,100

79,281

184,148

Allowances

(16)

(202)

(52)

(562)

(832)

(6)

(99)

(37)

(1,438)

(1,580)

Total on-balance sheet, net

6,910

95,587

1,382

66,005

169,884

7,699

92,962

4,064

77,843

182,568

Off-balance sheet

Contingent liabilities, gross

23,831

167

12,175

36,176

18,698

1,159

11,888

31,773

Irrevocable commitments, gross

883

20,917

1,526

11,281

34,606

670

21,688

2,477

15,547

40,382

Forward starting reverse repurchase

and securities borrowing

transactions

45,067

58,151

Liabilities for calls on shares and

other equities

Total off-balance sheet

885

89,815

1,693

23,460

115,853

698

98,538

3,636

27,440

130,311

1 Mainly includes

cash and securities.

2 Includes guarantees.

3 Includes prime

brokerage margin

lending receivables and

prime brokerage

receivables relating to

securities financing transactions.

4 Primarily

consists of amounts due from subsidiaries and other Group entities.

5 Consists of office and business premises, industrial premises, and other

mortgages.

UBS AG standalone financial statements (audited)

Note 12b

Credit-impaired financial instruments

31.12.25

31.12.24

USD m

Gross credit-

impaired financial

instruments

Allowances

and

provisions

Estimated

liquidation

proceeds of

collateral

Net credit-

impaired

financial

instruments

Gross credit-

impaired

financial

instruments

Allowances

and

provisions

Estimated

liquidation

proceeds of

collateral

Net credit-

impaired

financial

instruments

Amounts due from customers

1,628

827

757

3,329

1,496

894

939

Mortgage loans

329

311

206

201

Other assets

Guarantees and loan commitments

147

167

117

Total credit-impaired financial instruments

2,107

879

1,157

3,708

1,520

1,212

976

1 Credit-impaired

financial instruments

are financial

assets and

off-balance sheet

positions subject

to incurred

credit losses,

also referred

to as

stage 3

positions.

The net

carrying amount

of amounts

due from

customers, mortgage loans, and other assets is USD 1,111m.

Credit-impaired financial instruments

31.12.25

31.12.24

CHF m

Gross credit-

impaired financial

instruments

Allowances

and

provisions

Estimated

liquidation

proceeds of

collateral

Net credit-

impaired

financial

instruments

Gross credit-

impaired

financial

instruments

Allowances

and

provisions

Estimated

liquidation

proceeds of

collateral

Net credit-

impaired

financial

instruments

Amounts due from customers

1,291

656

600

3,023

1,358

812

853

Mortgage loans

261

246

187

183

Other assets

Guarantees and loan commitments

116

152

106

Total credit-impaired financial instruments

1,670

697

917

3,367

1,380

1,100

887

1 Credit-impaired

financial instruments

are financial

assets and

off-balance sheet

positions subject

to incurred

credit losses,

also referred

to as

stage 3

positions. The

net carrying

amount of

amounts due

from

customers, mortgage loans, and other assets is CHF 881m.

Note 13

Allowances and provisions

of USD 2,817m

(CHF 2,233m) as of

31 December 2025 included

allowances and provisions

for credit losses of

USD 1,221m (CHF 968m).

Allowances and provisions

of as of 31 December

2024 included allowances

and provisions for credit losses of USD 1,896m (CHF 1,722m).

The decrease

in allowances

and provisions

for credit

losses in

2025 of

USD 676m

(CHF 536m)

included net

credit loss

releases of

USD 535m

(CHF 424m)

recognized in

the income

statement, primarily

related to

credit-impaired positions.

Additionally,

there

were

USD

140m

(CHF

111m)

other

allowance

and

provision

movements

without

credit

loss

expenses/

releases

impact,

mainly

from

write-offs

and

other

movements

that

did

not

affect

the

credit

loss

expenses/

releases in the income statement.

The 2025 net credit loss releases

of USD 535m (CHF 424m) mainly reflect

a release from a loan to a

subsidiary, following

capital

injection

and

impairment

recognized

Impairments

investments

subsidiaries

and

other

participations

›

Refer to Note 4 for more information

UBS AG standalone financial statements (audited)

Note 13a

Allowances for credit losses

USD m

Balance

as of

31.12.24

Increase

recognized

in the

income

statement

Release

recognized

in the

income

statement

Write-offs

Recoveries

and past

due interest

Reclassifications

/ other

Foreign

currency

translation

Balance

as of

31.12.25

Default risk relating to on-balance sheet exposures

1,762

193

(778)

(150)

(31)

1,066

of which: incurred credit losses

1,504

193

(750)

(150)

(19)

848

of which: expected credit losses

258

(28)

(12)

218

Other

(6)

Total allowances

1,768

193

(784)

(150)

(31)

1,066

Allowances for credit losses

CHF m

Balance

as of

31.12.24

Effect of

translating

opening

balance at

closing rate

Increase

recognized

in the

income

statement

Release

recognized

in the

income

statement

Write-offs

Recoveries

and past

due interest

Reclassifications

/ other

Foreign

currency

translation

Balance

as of

31.12.25

Default risk relating to on-balance sheet exposures

1,600

(204)

153

(617)

(119)

(24)

846

of which: incurred credit losses

1,366

(174)

153

(595)

(119)

(15)

673

of which: expected credit losses

235

(31)

(22)

(9)

173

Other

(6)

Total allowances

1,606

(204)

153

(623)

(119)

(24)

846

1 Refer to “Presentation currencies” in Note 2a for more information.

Note 13b

Provisions

USD m

Balance

as of

31.12.24

Increase

recognized

in the

income

statement

Release

recognized

in the

income

statement

Provisions

used in

conformity

with

designated

purpose

Recoveries

Reclassifications

/ other

Foreign

currency

translation

Balance

as of

31.12.25

Default risk related to off-balance sheet items and

credit lines

134

(29)

154

of which: incurred credit losses

(11)

of which: expected credit losses

118

(18)

124

Litigation, regulatory and similar matters

2,492

650

(525)

(1,868)

177

929

Restructuring

107

348

(55)

(302)

122

233

Real estate

191

(2)

(41)

217

Employee benefits

(13)

(8)

Deferred taxes

(11)

116

Other

(27)

(63)

Total provisions

3,101

1,143

(632)

(2,282)

222

200

1,751

1 Refer to “Note 17 Provisions

and contingent liabilities” in the

“Consolidated financial statements” section of

the UBS AG Annual Report

2025, available under “Annual

reporting” at ubs.com/investors,

for more

information.

2 Includes provisions transferred to UBS

AG.

3 Includes provisions for onerous contracts

of USD 79m as of 31 December

2025 (31 December 2024: USD 87m) and reinstatement

cost provisions for

leasehold improvements of USD 138m

as of 31 December 2025 (31 December

2024: USD 103m).

4 Includes a USD 61m

deferred tax liability resulting

from the transfer of

the Credit Suisse International

pension

scheme to UBS AG. Refer to Note 23 for more information.

Provisions

CHF m

Balance

as of

31.12.24

Effect of

translating

opening

balance at

closing rate

Increase

recognized

in the

income

statement

Release

recognized

in the

income

statement

Provisions

used in

conformity

with

designated

purpose

Recoveries

Reclassifications

/ other

Foreign

currency

translation

Balance

as of

31.12.25

Default risk related to off-balance sheet items

and credit lines

122

(16)

(23)

122

of which: incurred credit losses

(2)

(8)

of which: expected credit losses

107

(13)

(14)

Litigation, regulatory and similar matters

2,263

(287)

515

(416)

(1,481)

141

737

Restructuring

(12)

276

(43)

(240)

185

Real estate

173

(22)

(2)

(33)

172

Employee benefits

(5)

(10)

(6)

Deferred taxes

(7)

(8)

Other

(8)

(21)

(50)

Total provisions

2,816

(358)

906

(501)

(1,810)

176

158

1,388

1 Refer to “Presentation

currencies” in Note 2a for

more information.

2 Refer to “Note 17

Provisions and contingent liabilities”

in the “Consolidated financial

statements” section of the

UBS AG Annual Report

2025, available under

“Annual reporting”

at ubs.com/investors,

for more information.

3 Includes provisions transferred

to UBS AG.

4 Includes provisions for

onerous contracts of

CHF 63m as of 31

December

2025 (31 December 2024:

CHF 79m) and reinstatement

cost provisions for

leasehold improvements of

CHF 109m as

of 31 December 2025

(31 December 2024: CHF 94m).

5 Includes a

CHF 48m deferred

tax

liability resulting from the transfer of the Credit Suisse International pension scheme to UBS AG.

Refer to Note 23 for more information.

UBS AG standalone financial statements (audited)

Note 13c

Development of allowances and provisions for credit losses

USD m

Total

Stage 1

Stage 2

Stage 3

Balance as of 31 December 2024

(1,896)

(226)

(150)

(1,520)

Net movement from new and derecognized transactions

(10)

(9)

(6)

of which: Large corporate clients

(12)

(11)

(1)

Remeasurements with stage transfers

586

(40)

604

of which: Large corporate clients

(81)

(36)

(65)

of which: Other

669

Remeasurements without stage transfers

(47)

(2)

(66)

of which: Large corporate clients

(44)

(6)

(39)

Model changes

(1)

Total ECL allowance movements with profit or loss impact

535

(6)

533

Movements without profit or loss impact (write-off, FX and other)

140

(3)

109

Balance as of 31 December 2025

(1,221)

(221)

(121)

(879)

1 Represents the

increase and decrease

in allowances and

provisions resulting from

financial instruments (including

guarantees and facilities)

that were newly

originated, purchased or

renewed and from

the final

derecognition of loans

or facilities on

their maturity

date or earlier.

2 Represents the

remeasurement between

12-month and

lifetime ECL due

to stage transfers.

3 Represents the

change in allowances

and

provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure

profile, PD and LGD changes, and unwinding of the time value.

4 Represents the change in the allowances

and provisions related to changes in

models and methodologies.

5 Represents the decrease in allowances

and provisions resulting from write-offs of

the ECL allowance

against the gross carrying amount when all or part of a financial asset is deemed uncollectible or forgiven and movements in foreign exchange rates.

Development of allowances and provisions for credit losses

CHF m

Total

Stage 1

Stage 2

Stage 3

Balance as of 31 December 2024

(1,722)

(205)

(136)

(1,380)

Effect of translating opening balance at closing rate

219

175

Net movement from new and derecognized transactions

(8)

(7)

(5)

of which: Large corporate clients

(9)

(8)

Remeasurements with stage transfers

464

(32)

479

of which: Large corporate clients

(64)

(29)

(51)

of which: Other

530

Remeasurements without stage transfers

(37)

(2)

(52)

of which: Large corporate clients

(35)

(5)

(31)

Model changes

(1)

Total ECL allowance movements with profit or loss impact

424

(5)

422

Movements without profit or loss impact (write-off, FX and other)

111

(3)

Balance as of 31 December 2025

(968)

(175)

(96)

(697)

1 Refer to “Presentation currencies” in Note 2a for

more information.

2 Represents the increase and decrease in allowances

and provisions resulting from financial instruments (including

guarantees and facilities)

that were newly originated, purchased or renewed

and from the final derecognition of loans or

facilities on their maturity date or earlier.

3 Represents the remeasurement between 12-month and

lifetime ECL due

to stage transfers.

4 Represents the change in allowances and provisions related

to changes in model inputs or

assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure

profile, PD and LGD changes, and unwinding of the time value.

5 Represents the change in the allowances and provisions related to

changes in models and methodologies.

6 Represents the decrease in allowances

and provisions resulting from write-offs of the ECL allowance against the gross carrying amount when all or part of a financial asset

is deemed uncollectible or forgiven and movements in foreign exchange rates.

UBS AG standalone financial statements (audited)

Note 13c

Development of allowances and provisions for credit losses (continued)

Development of allowances and provisions for credit losses

USD m

Total

Stage 1

Stage 2

Stage 3

Balance as of 31 December 2023

(294)

(133)

(41)

(120)

Balance recognized upon the merger with Credit Suisse AG as of 1.1.24

(1,551)

(165)

(48)

(1,338)

Net movement from new and derecognized transactions

(31)

of which: Large corporate clients

(31)

Remeasurements with stage transfers

(210)

(1)

(213)

of which: Large corporate clients

(116)

(2)

(118)

Remeasurements without stage transfers

(10)

(23)

of which: Large corporate clients

(23)

(43)

Model changes

(52)

(17)

(34)

Total ECL allowance movements with profit or loss impact

(206)

(64)

(226)

Movements without profit or loss impact (write-off, FX and other)

155

(12)

164

Balance as of 31 December 2024

(1,896)

(226)

(150)

(1,520)

1 Represents the

increase and decrease

in allowances and

provisions resulting from

financial instruments (including

guarantees and facilities)

that were newly

originated, purchased or

renewed and from

the final

derecognition of loans

or facilities on

their maturity

date or earlier.

2 Represents the

remeasurement between

12-month and

lifetime ECL due

to stage transfers.

3 Represents the

change in allowances

and

provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure

profile, PD and LGD changes, and unwinding of the time value.

4 Represents the change in the allowances

and provisions related to changes in

models and methodologies.

5 Represents the decrease in allowances

and provisions resulting from write-offs of

the ECL allowance

against the gross carrying amount when all or part of a financial asset is deemed uncollectible or forgiven and movements in foreign exchange rates.

Development of allowances and provisions for credit losses

CHF m

Total

Stage 1

Stage 2

Stage 3

Balance as of 31 December 2023

(247)

(112)

(34)

(101)

Balance recognized upon the merger with Credit Suisse AG as of 1.1.24

(1,305)

(139)

(40)

(1,126)

Net movement from new and derecognized transactions

(27)

of which: Large corporate clients

(27)

Remeasurements with stage transfers

(183)

(1)

(185)

of which: Large corporate clients

(101)

(2)

(102)

Remeasurements without stage transfers

(9)

(20)

of which: Large corporate clients

(20)

(38)

Model changes

(45)

(15)

(30)

Total ECL allowance movements with profit or loss impact

(179)

(55)

(196)

Movements without profit or loss impact (write-off, FX and other)

(27)

(6)

Balance as of 31 December 2024

(1,722)

(205)

(136)

(1,380)

1 Represents the

increase and decrease

in allowances and

provisions resulting from

financial instruments (including

guarantees and facilities)

that were newly

originated, purchased or

renewed and from

the final

derecognition of loans

or facilities on

their maturity

date or earlier.

2 Represents the

remeasurement between

12-month and

lifetime ECL due

to stage transfers.

3 Represents the

change in allowances

and

provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure

profile, PD and LGD changes, and unwinding of the time value.

4 Represents the change in the allowances

and provisions related to changes in

models and methodologies.

5 Represents the decrease in allowances

and provisions resulting from write-offs of

the ECL allowance

against the gross carrying amount when all or part of a financial asset is deemed uncollectible or forgiven and movements in foreign exchange rates.

UBS AG standalone financial statements (audited)

Note 13d

Balance sheet and off-balance sheet positions subject to expected credit losses

The

tables

below

provide

information

about

ECL

exposures,

allowances

and

provisions

for

financial

instruments

and

certain non-financial instruments that are subject to ECL.

Balance sheet and off-balance sheet positions subject to expected credit losses

USD m

31.12.25

Carrying amount

ECL allowances

Financial instruments measured at amortized cost

Total

Stage 1

Stage 2

Stage 3

Total

Stage 1

Stage 2

Stage 3

Cash and balances at central banks

68,630

Due from banks

102,570

(14)

Receivables from securities financing transactions

90,565

(1)

Due from customers

160,471

156,682

2,988

801

(1,009)

(116)

(65)

(827)

Funding provided to significant regulated subsidiaries eligible as total loss-absorbing

capacity

45,085

(20)

Mortgage loans

8,695

8,315

310

(20)

(1)

(19)

Accrued income and prepaid expenses

2,635

2,627

Other assets

1,688

1,678

(2)

Total on-balance sheet financial assets within the scope of ECL

480,340

476,152

3,075

1,112

(1,066)

(153)

(65)

(848)

Total exposure

ECL provisions

Off-balance sheet (within the scope of ECL)

Total

Stage 1

Stage 2

Stage 3

Total

Stage 1

Stage 2

Stage 3

Contingent liabilities, gross

45,623

45,434

169

(7)

(2)

(4)

Irrevocable commitments, gross

43,644

40,044

3,474

127

(144)

(63)

(56)

(26)

Forward starting transactions (securities financing transactions)

10,750

Credit lines

38,728

38,682

(3)

Irrevocable committed prolongation of existing loans

1,487

Total off-balance sheet financial instruments and credit lines within the scope of

ECL

140,232

136,396

3,684

152

(154)

(68)

(56)

(30)

Total allowances and provisions

(1,221)

(221)

(121)

(879)

1 The carrying amount of financial assets measured at

amortized cost represents the total gross exposure net of the respective ECL

allowances.

2 Includes components of accrued interest assets within the scope of

ECL.

3 Includes components of other receivables due from UBS Group AG

and subsidiaries in the UBS Group and other assets within the scope of ECL.

Refer to Note 17a for more information.

4 Includes forward

starting reverse repurchase agreements within the scope of ECL.

Balance sheet and off-balance sheet positions subject to expected credit losses

CHF m

31.12.25

Carrying amount

ECL allowances

Financial instruments measured at amortized cost

Total

Stage 1

Stage 2

Stage 3

Total

Stage 1

Stage 2

Stage 3

Cash and balances at central banks

54,418

Due from banks

81,330

(11)

Receivables from securities financing transactions

71,811

(1)

Due from customers

127,241

124,236

2,370

635

(800)

(92)

(52)

(656)

Funding provided to significant regulated subsidiaries eligible as total loss-absorbing

capacity

35,749

(16)

Mortgage loans

6,894

6,593

246

(16)

(1)

(15)

Accrued income and prepaid expenses

2,090

2,083

Other assets

1,338

1,330

(2)

Total on-balance sheet financial assets within the scope of ECL

380,871

377,551

2,438

882

(846)

(121)

(52)

(673)

Total exposure

ECL provisions

Off-balance sheet (within the scope of ECL)

Total

Stage 1

Stage 2

Stage 3

Total

Stage 1

Stage 2

Stage 3

Contingent liabilities, gross

36,176

36,025

134

(5)

(2)

(3)

Irrevocable commitments, gross

34,606

31,751

2,755

101

(115)

(50)

(44)

(21)

Forward starting transactions (securities financing transactions)

8,524

Credit lines

30,708

30,672

(3)

(2)

Irrevocable committed prolongation of existing loans

1,179

Total off-balance sheet financial instruments and credit lines within the scope of

ECL

111,193

108,151

2,921

121

(122)

(54)

(44)

(24)

Total allowances and provisions

(968)

(175)

(96)

(697)

1 The carrying amount of financial assets measured at amortized cost represents the total gross

exposure net of the respective ECL allowances.

2 Includes components of accrued interest assets within the scope of

ECL.

3 Includes components of other receivables due from UBS Group AG and subsidiaries

in the UBS Group and other assets within the scope of ECL. Refer to Note 17a for more information.

4 Includes forward

starting reverse repurchase agreements within the scope of ECL.

UBS AG standalone financial statements (audited)

Note 13d

Balance sheet and off-balance sheet positions subject to expected credit losses (continued)

Balance sheet and off-balance sheet positions subject to expected credit losses

USD m

31.12.24

Carrying amount

ECL allowances

Financial instruments measured at amortized cost

Total

Stage 1

Stage 2

Stage 3

Total

Stage 1

Stage 2

Stage 3

Cash and balances at central banks

69,614

Due from banks

96,243

96,164

(14)

(1)

Receivables from securities financing transactions

117,338

(2)

Due from customers

148,955

143,834

3,288

1,833

(1,710)

(106)

(108)

(1,496)

Funding provided to significant regulated subsidiaries eligible as total loss-absorbing

capacity

43,652

(23)

Mortgage loans

8,438

7,880

356

201

(7)

(2)

(1)

(4)

Accrued income and prepaid expenses

3,091

3,081

Other assets

2,172

2,170

(5)

(1)

(4)

Total on-balance sheet financial assets within the scope of ECL

489,504

483,734

3,733

2,037

(1,762)

(148)

(109)

(1,504)

Total exposure

ECL provisions

Off-balance sheet (within the scope of ECL)

Total

Stage 1

Stage 2

Stage 3

Total

Stage 1

Stage 2

Stage 3

Contingent liabilities, gross

34,989

34,799

147

(7)

(4)

(3)

Irrevocable commitments, gross

44,469

40,818

3,526

125

(128)

(74)

(40)

(14)

Forward starting transactions (securities financing transactions)

22,954

Credit lines

39,291

39,239

Irrevocable committed prolongation of existing loans

245

Total off-balance sheet financial instruments and credit lines within the scope of

ECL

141,947

138,055

3,718

173

(134)

(78)

(40)

(16)

Total allowances and provisions

(1,896)

(226)

(150)

(1,520)

1 The carrying amount of financial assets measured

at amortized cost represents the total gross exposure net of the

respective ECL allowances.

2 Includes components of other receivables due from UBS

Group AG

and subsidiaries in the UBS Group and other assets within the scope of ECL. Refer to Note 17a for more information.

3 Includes forward starting reverse repurchase agreements within the scope of ECL.

Balance sheet and off-balance sheet positions subject to expected credit losses

CHF m

31.12.24

Carrying amount

ECL allowances

Financial instruments measured at amortized cost

Total

Stage 1

Stage 2

Stage 3

Total

Stage 1

Stage 2

Stage 3

Cash and balances at central banks

63,217

Due from banks

87,399

87,327

(13)

(12)

(1)

Receivables from securities financing transactions

106,555

(2)

Due from customers

135,266

130,616

2,985

1,664

(1,553)

(96)

(98)

(1,358)

Funding provided to significant regulated subsidiaries eligible as total loss-absorbing

capacity

39,640

(21)

Mortgage loans

7,662

7,156

324

183

(6)

(2)

(1)

(4)

Accrued income and prepaid expenses

2,807

2,798

Other assets

1,972

1,970

(4)

(1)

(3)

Total on-balance sheet financial assets within the scope of ECL

444,518

439,279

3,390

1,849

(1,600)

(134)

(100)

(1,366)

Total exposure

ECL provisions

Off-balance sheet (within the scope of ECL)

Total

Stage 1

Stage 2

Stage 3

Total

Stage 1

Stage 2

Stage 3

Contingent liabilities, gross

31,773

31,601

134

(6)

(4)

(2)

Irrevocable commitments, gross

40,382

37,067

3,202

113

(116)

(67)

(37)

(12)

Forward starting transactions (securities financing transactions)

20,844

Credit lines

35,680

35,633

Irrevocable committed prolongation of existing loans

222

Total off-balance sheet financial instruments and credit lines within the scope of

ECL

128,901

125,367

3,377

157

(122)

(71)

(36)

(15)

Total allowances and provisions

(1,722)

(205)

(136)

(1,380)

1 The carrying amount of financial assets measured at

amortized cost represents the total gross exposure net of the respective ECL

allowances.

2 Includes components of other receivables due from UBS Group AG

and subsidiaries in the UBS Group and other assets within the scope of ECL. Refer to Note 17a for more information.

3 Includes forward starting reverse repurchase agreements within the scope of ECL.

UBS AG standalone financial statements (audited)

Note 13e

Financial assets subject to credit risk, by rating category

The table below shows the credit

quality and the maximum exposure to

credit risk based on the Group’s

internal credit

rating system and year-end stage classification.

Financial assets subject to credit risk, by rating category

USD m

31.12.25

Rating category

0–1

2–3

4–5

6–8

9–13

Credit-

impaired

(defaulted)

Total

gross

carrying

amount

ECL

allowances

Net carrying

amount

(maximum

exposure to

credit risk)

Financial instruments measured at amortized cost

Cash and balances at central banks

68,386

217

68,630

of which: stage 1

68,386

217

68,630

Due from banks

4,842

90,856

2,511

4,068

308

102,584

(14)

102,570

of which: stage 1

4,842

90,856

2,511

4,068

308

102,584

(14)

102,570

Receivables from securities financing transactions

23,248

24,013

10,212

32,092

1,001

90,566

(1)

90,565

of which: stage 1

23,248

24,013

10,212

32,092

1,001

90,566

(1)

90,565

Due from customers

4,756

45,792

14,722

78,988

15,594

1,628

161,480

(1,009)

160,471

of which: stage 1

4,756

45,755

14,269

78,366

13,651

156,798

(116)

156,682

of which: stage 2

452

621

1,943

3,054

(65)

2,988

of which: stage 3

1,628

(827)

801

Funding provided to significant regulated subsidiaries eligible

as total loss-absorbing capacity

45,106

(20)

45,085

of which: stage 1

45,106

(20)

45,085

Mortgage loans

299

1,626

5,652

807

329

8,715

(20)

8,695

of which: stage 1

295

1,622

5,606

792

8,316

(1)

8,315

of which: stage 2

of which: stage 3

329

(19)

310

Accrued income and prepaid expenses

175

1,177

164

1,033

2,635

of which: stage 1

175

1,177

159

1,033

2,627

of which: stage 2

of which: stage 3

Other assets

585

1,005

1,690

(2)

1,688

of which: stage 1

578

1,003

1,678

of which: stage 2

of which: stage 3

(2)

Total in scope of ECL assets / ECL amounts by stages

101,459

208,045

29,299

122,838

17,805

1,960

481,406

(1,066)

480,340

Off-balance sheet positions and credit lines subject to expected credit loss, by rating category

USD m

31.12.25

Rating category

0–1

2–3

4–5

6–8

9–13

Credit-

impaired

(defaulted)

Total off-

balance sheet

exposure

(maximum

exposure to

credit risk)

ECL provisions

Off-balance sheet (within the scope of ECL)

Contingent liabilities, gross

25,709

7,812

363

2,222

9,496

45,623

(7)

of which: stage 1

25,709

7,812

343

2,194

9,376

45,434

(2)

of which: stage 2

120

169

of which: stage 3

(4)

Irrevocable commitments, gross

468

8,642

9,990

6,736

17,681

127

43,644

(144)

of which: stage 1

468

8,477

9,930

6,664

14,505

40,044

(63)

of which: stage 2

165

3,176

3,474

(56)

of which: stage 3

127

(26)

Forward starting transactions (securities financing transactions)

2,050

8,687

10,750

of which: stage 1

2,050

8,687

10,750

Credit lines

33,601

814

4,217

38,728

(3)

of which: stage 1

33,584

807

4,217

38,682

(3)

of which: stage 2

of which: stage 3

Irrevocable committed prolongation of existing loans

1,483

1,487

of which: stage 1

1,483

1,487

Total off-balance sheet financial instruments and credit lines

26,182

53,587

11,181

21,866

27,263

152

140,232

(154)

UBS AG standalone financial statements (audited)

Note 13e

Financial assets subject to credit risk, by rating category (continued)

Financial assets subject to credit risk, by rating category

CHF m

31.12.25

Rating category

0–1

2–3

4–5

6–8

9–13

Credit-

impaired

(defaulted)

Total

gross

carrying

amount

ECL

allowances

Net carrying

amount

(maximum

exposure to

credit risk)

Financial instruments measured at amortized cost

Cash and balances at central banks

54,225

172

54,418

of which: stage 1

54,225

172

54,418

Due from banks

3,840

72,041

1,991

3,225

244

81,341

(11)

81,330

of which: stage 1

3,840

72,041

1,991

3,225

244

81,341

(11)

81,330

Receivables from securities financing transactions

18,434

19,040

8,097

25,446

794

71,811

(1)

71,811

of which: stage 1

18,434

19,040

8,097

25,446

794

71,811

(1)

71,811

Due from customers

3,771

36,310

11,673

62,631

12,365

1,291

128,041

(800)

127,241

of which: stage 1

3,771

36,280

11,314

62,138

10,824

124,328

(92)

124,236

of which: stage 2

359

493

1,540

2,421

(52)

2,370

of which: stage 3

1,291

(656)

635

Funding provided to significant regulated subsidiaries eligible

as total loss-absorbing capacity

35,765

(16)

35,749

of which: stage 1

35,765

(16)

35,749

Mortgage loans

237

1,289

4,482

640

261

6,910

(16)

6,894

of which: stage 1

234

1,286

4,445

628

6,594

(1)

6,593

of which: stage 2

of which: stage 3

261

(15)

246

Accrued income and prepaid expenses

139

933

130

819

2,090

of which: stage 1

139

933

126

819

2,083

of which: stage 2

of which: stage 3

Other assets

464

797

1,340

(2)

1,338

of which: stage 1

458

796

1,330

of which: stage 2

of which: stage 3

(2)

Total in scope of ECL assets / ECL amounts by stages

80,449

164,963

23,232

97,401

14,118

1,554

381,717

(846)

380,871

Off-balance sheet positions and credit lines subject to expected credit loss, by rating category

CHF m

31.12.25

Rating category

0–1

2–3

4–5

6–8

9–13

Credit-

impaired

(defaulted)

Total off-

balance sheet

exposure

(maximum

exposure to

credit risk)

ECL provisions

Off-balance sheet (within the scope of ECL)

Contingent liabilities, gross

20,385

6,195

288

1,762

7,530

36,176

(5)

of which: stage 1

20,385

6,194

272

1,740

7,434

36,025

(2)

of which: stage 2

134

of which: stage 3

(3)

Irrevocable commitments, gross

371

6,852

7,922

5,341

14,020

101

34,606

(115)

of which: stage 1

371

6,721

7,874

5,284

11,502

31,751

(50)

of which: stage 2

131

2,518

2,755

(44)

of which: stage 3

101

(21)

Forward starting transactions (securities financing transactions)

1,625

6,888

8,524

of which: stage 1

1,625

6,888

8,524

Credit lines

26,643

646

3,344

30,708

(3)

of which: stage 1

26,629

640

3,344

30,672

(2)

of which: stage 2

of which: stage 3

Irrevocable committed prolongation of existing loans

1,176

1,179

of which: stage 1

1,176

1,179

Total off-balance sheet financial instruments and credit lines

20,760

42,490

8,866

17,338

21,617

121

111,193

(122)

›

Refer to “Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss measurement”

and

“Note 19 Expected credit loss measurement”

in the “Consolidated financial statements” section of the UBS AG Annual Report

2025, available under “Annual reporting” at

ubs.com/investors

, for more information about ECL in accordance with IFRS

Accounting Standards

UBS AG standalone financial statements (audited)

Note 13e

Financial assets subject to credit risk, by rating category (continued)

Financial assets subject to credit risk, by rating category

USD m

31.12.24

Rating category

0–1

2–3

4–5

6–8

9–13

Credit-

impaired

(defaulted)

Total gross

carrying

amount

ECL

allowances

Net carrying

amount

(maximum

exposure to

credit risk)

Financial instruments measured at amortized cost

Cash and balances at central banks

69,375

216

69,614

of which: stage 1

69,375

216

69,614

Due from banks

10,103

82,957

1,501

1,572

124

96,257

(14)

96,243

of which: stage 1

10,103

82,957

1,483

1,570

96,178

(14)

96,164

of which: stage 2

(1)

Receivables from securities financing transactions

50,251

23,557

12,213

29,796

1,523

117,340

(2)

117,338

of which: stage 1

50,251

23,557

12,213

29,796

1,523

117,340

(2)

117,338

Due from customers

5,426

52,373

18,111

64,292

7,136

3,326

150,665

(1,710)

148,955

of which: stage 1

5,426

52,252

17,718

63,125

5,419

143,940

(106)

143,834

of which: stage 2

121

392

1,167

1,715

3,396

(108)

3,288

of which: stage 3

3,326

3,329

(1,496)

1,833

Funding provided to significant regulated subsidiaries eligible

as total loss-absorbing capacity

43,675

(23)

43,652

of which: stage 1

43,675

(23)

43,652

Mortgage loans

599

1,653

4,518

1,468

206

8,446

(7)

8,438

of which: stage 1

582

1,628

4,309

1,362

7,883

(2)

7,880

of which: stage 2

209

106

357

(1)

356

of which: stage 3

206

(4)

201

Accrued income and prepaid expenses

373

1,512

296

839

3,091

of which: stage 1

373

1,512

290

838

3,081

of which: stage 2

Other assets

348

416

1,349

2,177

(5)

2,172

of which: stage 1

348

416

1,349

2,170

(1)

2,170

of which: stage 3

(4)

Total in scope of ECL assets / ECL amounts by stages

135,879

205,306

33,837

102,366

10,339

3,538

491,265

(1,762)

489,504

Off-balance sheet positions and credit lines subject to expected credit loss, by rating category

USD m

31.12.24

Rating category

0–1

2–3

4–5

6–8

9–13

Credit-

impaired

(defaulted)

Total carrying

amount

(maximum

exposure to

credit risk)

ECL provision

Off-balance sheet (in scope of ECL)

Contingent liabilities, gross

16,706

12,865

3,204

1,486

684

34,989

(7)

of which: stage 1

16,706

12,862

3,195

1,471

564

34,799

(4)

of which: stage 2

120

147

of which: stage 3

(3)

Irrevocable commitments, gross

1,447

10,520

10,045

7,549

14,827

44,469

(128)

of which: stage 1

1,447

10,354

9,889

7,320

11,808

40,818

(74)

of which: stage 2

165

156

229

2,975

3,526

(40)

of which: stage 3

125

(14)

Forward starting transactions (securities financing transactions)

22,954

of which: stage 1

22,954

Credit lines

34,857

784

3,522

115

39,291

of which: stage 1

34,838

776

3,522

39,239

of which: stage 2

of which: stage 3

Irrevocable committed prolongation of existing loans

245

of which: stage 1

245

Total off-balance sheet financial instruments and credit lines

18,160

58,486

14,033

35,511

15,626

130

141,947

(134)

UBS AG standalone financial statements (audited)

Note 13e

Financial assets subject to credit risk, by rating category (continued)

Financial assets subject to credit risk, by rating category

CHF m

31.12.24

Rating category

0–1

2–3

4–5

6–8

9–13

Credit-

impaired

(defaulted)

Total gross

carrying

amount

ECL

allowances

Net carrying

amount

(maximum

exposure to

credit risk)

Financial instruments measured at amortized cost

Cash and balances at central banks

62,999

196

63,217

of which: stage 1

62,999

196

63,217

Due from banks

9,175

75,334

1,363

1,427

112

87,411

(13)

87,399

of which: stage 1

9,175

75,334

1,347

1,426

87,339

(12)

87,327

of which: stage 2

(1)

Receivables from securities financing transactions

45,633

21,392

11,090

27,058

1,383

106,557

(2)

106,555

of which: stage 1

45,633

21,392

11,090

27,058

1,383

106,557

(2)

106,555

Due from customers

4,928

47,560

16,446

58,384

6,481

3,020

136,818

(1,553)

135,266

of which: stage 1

4,928

47,450

16,090

57,324

4,921

130,712

(96)

130,616

of which: stage 2

110

356

1,059

1,558

3,084

(98)

2,985

of which: stage 3

3,020

3,023

(1,358)

1,664

Funding provided to significant regulated subsidiaries eligible

as total loss-absorbing capacity

39,662

(21)

39,640

of which: stage 1

39,662

(21)

39,640

Mortgage loans

544

1,501

4,102

1,333

187

7,669

(6)

7,662

of which: stage 1

528

1,478

3,913

1,237

7,159

(2)

7,156

of which: stage 2

189

324

(1)

324

of which: stage 3

187

(4)

183

Accrued income and prepaid expenses

338

1,373

269

762

2,807

of which: stage 1

338

1,373

263

761

2,798

of which: stage 2

Other assets

316

378

1,225

1,977

(4)

1,972

of which: stage 1

316

378

1,225

1,971

(1)

1,970

of which: stage 3

(3)

Total in scope of ECL assets / ECL amounts by stages

123,392

186,439

30,727

92,959

9,388

3,213

446,118

(1,600)

444,518

Off-balance sheet positions and credit lines subject to expected credit loss, by rating category

CHF m

31.12.24

Rating category

0–1

2–3

4–5

6–8

9–13

Credit-

impaired

(defaulted)

Total carrying

amount

(maximum

exposure to

credit risk)

ECL provision

Off-balance sheet (in scope of ECL)

Contingent liabilities, gross

15,171

11,683

2,910

1,350

621

31,773

(6)

of which: stage 1

15,171

11,680

2,902

1,336

513

31,601

(4)

of which: stage 2

109

134

of which: stage 3

(2)

Irrevocable commitments, gross

1,314

9,553

9,122

6,855

13,464

40,382

(116)

of which: stage 1

1,314

9,403

8,980

6,647

10,723

37,067

(67)

of which: stage 2

150

141

208

2,702

3,202

(37)

of which: stage 3

113

(12)

Forward starting transactions (securities financing transactions)

20,844

of which: stage 1

20,844

Credit lines

31,654

712

3,198

104

35,680

of which: stage 1

31,637

705

3,198

35,633

of which: stage 2

of which: stage 3

Irrevocable committed prolongation of existing loans

222

of which: stage 1

222

Total off-balance sheet financial instruments and credit lines

16,491

53,111

12,744

32,248

14,190

118

128,901

(122)

UBS AG standalone financial statements (audited)

Note 14

Trading portfolio and other financial instruments measured at fair value

USD m

CHF m

31.12.25

31.12.24

31.12.25

31.12.24

Assets

Trading portfolio assets

162,706

148,686

129,013

135,022

of which: debt instruments

32,795

30,308

26,004

27,523

of which: listed

28,458

21,960

22,565

19,942

of which: equity instruments

119,796

113,185

94,988

102,783

of which: precious metals and other physical commodities

10,116

5,193

8,021

4,715

Total assets measured at fair value

162,706

148,686

129,013

135,022

of which: fair value derived using a valuation model

29,314

27,939

23,243

25,371

of which: securities eligible for repurchase transactions in accordance with liquidity regulations

21,469

15,542

17,023

14,113

Liabilities

Trading portfolio liabilities

47,268

29,316

37,480

26,622

of which: debt instruments

16,615

11,884

13,174

10,792

of which: listed

16,027

11,157

12,708

10,131

of which: equity instruments

30,654

17,431

24,306

15,829

Financial liabilities designated at fair value

110,126

102,901

87,321

93,444

Total liabilities measured at fair value

157,394

132,216

124,801

120,065

of which: fair value derived using a valuation model

123,572

112,247

97,983

101,931

1 Includes money

market paper.

2 Consists of

high-quality liquid

debt securities that

are eligible for

repurchase transactions

at the Swiss

National Bank or

other central

banks.

3 Refer to

Note 20 for

information.

UBS AG standalone financial statements (audited)

Note 15

Derivative instruments

31.12.25

31.12.24

USD bn

Derivative

financial

assets

Derivative

financial

liabilities

Total notional

values

Derivative

financial

assets

Derivative

financial

liabilities

Total notional

values

Interest rate contracts

Forwards

0.2

0.1

1,333

0.2

602

Swaps

27.3

21.6

20,911

32.7

25.8

15,269

of which: designated in hedge accounting relationships

0.0

197

0.0

197

Futures

0.0

918

0.0

802

Over-the-counter (OTC) options

11.8

13.1

2,081

11.6

13.2

1,963

Exchange-traded options

0.0

0.1

247

0.1

0.2

198

Total

39.4

34.8

25,490

44.6

39.4

18,834

Foreign exchange contracts

Forwards

18.7

18.3

3,166

37.2

32.5

2,290

of which: designated in hedge accounting relationships

0.0

0.2

0.0

Swaps

24.7

26.1

4,056

53.1

51.4

4,012

of which: designated in hedge accounting relationships

0.3

0.4

0.9

Futures

0.0

Over-the-counter (OTC) options

6.2

6.3

1,005

9.5

9.7

1,157

Exchange-traded options

0.0

0.1

Total

49.7

50.7

8,236

99.9

93.7

7,469

Equity contracts

Forwards

1.1

0.9

0.3

Swaps

6.5

12.9

484

6.1

8.6

363

Futures

0.0

Over-the-counter (OTC) options

7.6

13.0

411

4.4

8.5

229

Exchange-traded options

15.1

15.6

784

13.2

12.9

778

Total

30.3

42.4

1,818

24.1

30.3

1,479

Credit derivative contracts

Credit default swaps

3.0

3.7

155

2.4

3.0

133

Total return swaps

0.0

0.4

0.1

0.4

Other

0.7

0.0

0.3

0.0

Total

3.7

4.0

164

2.8

3.3

139

Commodity, precious metals and other contracts

Forwards

1.5

0.6

0.4

Swaps

3.9

3.7

0.9

1.1

Futures

0.0

Over-the-counter (OTC) options

2.7

2.1

0.8

0.4

Exchange-traded options

1.0

0.6

0.3

0.4

Total

9.1

7.9

269

2.6

2.3

200

Total before netting

132.2

140.0

35,977

173.9

169.1

28,120

of which: trading derivatives

131.8

139.6

172.9

168.1

of which: fair value derived using a valuation model

131.3

138.9

171.9

167.2

of which: derivatives designated in hedge accounting relationships

0.3

0.4

1.0

0.9

of which: fair value derived using a valuation model

0.3

0.4

1.0

0.9

Netting with cash collateral payables / receivables

(17.7)

(23.1)

(20.2)

(23.4)

Replacement value netting

(100.4)

(131.8)

(131.7)

Total after netting

14.0

16.5

21.9

14.0

of which: with central clearing counterparties

0.5

0.0

0.6

0.3

of which: with bank and broker-dealer counterparties

1.9

3.6

3.0

4.2

of which: other client counterparties

11.6

12.9

18.3

9.5

1 Bifurcated embedded derivatives are presented on the same balance sheet lines as their host contracts and are excluded from this table. The replacement values and related notional values of these derivatives were

not material for the periods presented.

2 Total notional values

include USD 23.2trn (31 December 2024:

USD 15.5trn) relating to derivatives that

are cleared through either a central

counterparty or an exchange.

The fair value of these derivatives net of the corresponding cash margin was not material for any of the periods

presented.

3 Includes forward rate agreements.

4 Notional amounts related to interest rate contracts

increased by USD 6.7trn

compared with 31 December

2024, mainly due to

higher business volume in

the Investment Bank.

5 Includes derivative loan commitments with

notional values of USD 20bn as

of 31 December

2025 (31 December 2024: USD 23bn) and negative replacement values of USD 33m (31 December 2024: USD 137m).

UBS AG standalone financial statements (audited)

Note 15

Derivative instruments (continued)

Derivative instruments

31.12.25

31.12.24

CHF bn

Derivative

financial

assets

Derivative

financial

liabilities

Total notional

values

Derivative

financial

assets

Derivative

financial

liabilities

Total notional

values

Interest rate contracts

Forwards

0.2

0.1

1,057

0.2

547

Swaps

21.7

17.1

16,581

29.7

23.4

13,865

of which: designated in hedge accounting relationships

0.0

156

0.0

179

Futures

0.0

728

0.0

728

Over-the-counter (OTC) options

9.3

10.4

1,650

10.6

12.0

1,782

Exchange-traded options

0.0

196

0.1

180

Total

31.2

27.6

20,212

40.5

35.8

17,103

Foreign exchange contracts

Forwards

14.9

14.5

2,511

33.8

29.5

2,080

of which: designated in hedge accounting relationships

0.0

0.1

0.0

Swaps

19.6

20.7

3,216

48.2

46.7

3,643

of which: designated in hedge accounting relationships

0.2

0.3

0.8

0.9

Futures

0.0

Over-the-counter (OTC) options

5.0

797

8.7

8.8

1,050

Exchange-traded options

0.0

0.1

Total

39.4

40.2

6,530

90.7

85.1

6,783

Equity contracts

Forwards

0.9

0.7

0.3

Swaps

5.2

10.2

384

5.5

7.8

329

Futures

0.0

Over-the-counter (OTC) options

6.0

10.3

326

4.0

7.7

208

Exchange-traded options

11.9

12.4

621

12.0

11.7

706

Total

24.0

33.6

1,442

21.9

27.5

1,343

Credit derivative contracts

Credit default swaps

2.3

2.9

123

2.2

2.7

121

Total return swaps

0.0

0.3

0.0

0.3

Other

0.5

0.0

0.3

0.0

Total

2.9

3.2

130

2.5

3.0

126

Commodity, precious metals and other contracts

Forwards

1.2

0.5

0.3

Swaps

3.1

2.9

0.8

1.0

Futures

0.0

Over-the-counter (OTC) options

2.2

1.6

0.7

0.4

Exchange-traded options

0.8

0.5

0.3

0.4

Total

7.2

6.3

213

2.3

2.1

181

Total before netting

104.8

111.0

28,527

157.9

153.5

25,536

of which: trading derivatives

104.5

110.7

157.0

152.7

of which: fair value derived using a valuation model

104.1

110.1

156.1

151.9

of which: derivatives designated in hedge accounting relationships

0.2

0.3

1.0

0.9

of which: fair value derived using a valuation model

0.2

0.3

1.0

0.9

Netting with cash collateral payables / receivables

(14.0)

(18.3)

(18.4)

(21.2)

Replacement value netting

(79.6)

(119.7)

(119.6)

Total after netting

11.1

13.1

19.9

12.7

of which: with central clearing counterparties

0.4

0.0

0.6

0.2

of which: with bank and broker-dealer counterparties

1.5

2.8

2.7

3.8

of which: other client counterparties

9.2

10.2

16.6

8.7

not material for the periods presented.

2 Total notional values include

CHF 18.4trn (31 December 2024: CHF

14.1trn) relating to derivatives that

are cleared through either a central

counterparty or an exchange.

The fair value of these derivatives net of the corresponding cash margin was not material for any of the periods presented.

3 Includes forward rate agreements.

4 Notional amounts related to interest rate contracts

increased by CHF 5.3trn

compared with 31 December 2024,

mainly due to higher

business volume in the

Investment Bank.

5 Includes derivative loan commitments with

notional values of CHF 16bn as

of 31 December

2025 (31 December 2024: CHF 20bn) and negative replacement values of CHF 26m (31 December 2024: CHF 125m).

UBS AG standalone financial statements (audited)

Note 16a

Financial investments by instrument type

31.12.25

31.12.24

USD m

Carrying amount

Fair value

Carrying amount

Fair value

Debt instruments

52,554

52,478

38,710

38,190

of which: held to maturity

23,759

23,462

21,095

20,413

of which: available for sale

28,795

29,016

17,615

17,776

Equity instruments

1,140

1,144

of which: qualified participations

Other

Total financial investments

52,625

52,553

39,850

39,334

of which: securities eligible for repurchase transactions in accordance with liquidity regulations

47,310

47,162

34,381

33,744

1 Qualified participations

are investments in which

UBS AG holds

10% or more of

the total capital

or has at least

10% of total

voting rights.

2 Consists of high-quality

liquid debt securities

that are eligible for

repurchase transactions at the Swiss National Bank or other central banks.

Financial investments by instrument type

31.12.25

31.12.24

CHF m

Carrying amount

Fair value

Carrying amount

Fair value

Debt instruments

41,671

41,611

35,153

34,680

of which: held to maturity

18,839

18,603

19,157

18,537

of which: available for sale

22,832

23,008

15,996

16,143

Equity instruments

1,035

1,038

of which: qualified participations

Other

Total financial investments

41,727

41,670

36,188

35,719

of which: securities eligible for repurchase transactions in accordance with liquidity regulations

37,513

37,395

31,221

30,643

1 Qualified participations

are investments in which

UBS AG holds

10% or more of

the total capital

or has at least

10% of total

voting rights.

2 Consists of high-quality

liquid debt securities

that are eligible for

repurchase transactions at the Swiss National Bank or other central banks.

Note 16b

Financial investments by counterparty rating – debt instruments

USD m

CHF m

31.12.25

31.12.24

31.12.25

31.12.24

Internal UBS rating

0–1

23,873

25,113

18,929

22,805

2–3

28,103

13,231

22,283

12,015

4–5

579

363

459

330

6–8

9–13

Non-rated

Total financial investments

52,554

38,710

41,671

35,153

1 Refer to Note 19 for more information.

Note 17a

Other assets

USD m

CHF m

31.12.25

31.12.24

31.12.25

31.12.24

Deferral position for hedging instruments

7,249

9,129

5,748

8,290

Deposits and collateral provided in connection with litigation, regulatory and similar matters

209

1,290

166

1,172

Fee-

and commission-related receivables

190

282

151

256

Net assets for defined benefit plans

903

428

716

388

VAT,

withholding tax and other tax receivables

1,217

823

965

747

Other

1,709

1,966

1,355

1,784

of which: other receivables due from UBS Group AG and subsidiaries in the UBS Group

1,212

1,459

961

1,325

Total other assets

11,478

13,918

9,101

12,638

1 Includes components of other receivables due from UBS Group AG and subsidiaries in the UBS

Group and other assets totaling USD 1,688m (CHF 1,338m) as of 31 December 2025 (USD 2,172m (CHF 1,972m)

of 31 December 2024), which are within the scope of expected credit loss accounting. Refer to Note 13d for more information.

UBS AG standalone financial statements (audited)

Note 17b

Other liabilities

USD m

CHF m

31.12.25

31.12.24

31.12.25

31.12.24

Settlement and clearing accounts

401

364

Net defined benefit liabilities

VAT,

withholding tax and other tax payables

224

108

177

Other

2,918

4,626

2,313

4,201

of which: other payables due to UBS Group AG and subsidiaries in the UBS Group

1,895

1,885

1,502

1,712

Total other liabilities

3,213

5,196

2,548

4,718

1 Excludes capital tax payables.

Note 18

Pledged assets

The

table

below

provides

information

about

pledged

assets,

other

than

assets

placed

with

central

banks

undrawn credit

lines and for

payment, clearing and

settlement purposes (31 December

2025: USD 5.4bn (CHF 4.3bn),

31 December 2024: USD 1.1bn (CHF 0.9bn)) and those pledged in connection with securities financing transactions.

›

Refer to Note 11 for more information

Pledged assets

31.12.25

31.12.24

USD m

Carrying amount of

pledged assets

Carrying amount of

pledged assets

Securities

10,455

12,112

Property

2,025

Total pledged assets

10,455

14,137

1 Includes securities pledged for derivative transactions, where the replacement values are managed on a

portfolio basis across counterparties and product types, and therefore there is no

direct relationship between

the specific collateral pledged and

the associated liability.

2 As of 31 December 2024,

these pledged properties served as collateral

for a mortgage loan from UBS

Switzerland AG, the carrying

amount of which

was USD 2,521m. As of 31 December 2025, the properties were no longer pledged following the expiry of the mortgage during 2025.

Pledged assets

31.12.25

31.12.24

CHF m

Carrying amount of

pledged assets

Carrying amount of

pledged assets

Securities

8,290

10,999

Property

1,839

Total pledged assets

8,290

12,838

1 Includes securities pledged for derivative transactions, where the replacement values are managed on a

portfolio basis across counterparties and product types, and therefore there is no

direct relationship between

the specific collateral pledged and

the associated liability.

2 As of 31 December 2024,

these pledged properties served as collateral

for a mortgage loan from UBS

Switzerland AG, the carrying

amount of which

was CHF 2,289m. As of 31 December 2025, the properties were no longer pledged following the expiry of the mortgage during 2025.

UBS AG standalone financial statements (audited)

Note 19

Country risk of total assets

The table below provides a breakdown of total non-Swiss assets by

credit rating, after netting of assets and liabilities as

recognized on the balance sheet

but before other risk mitigants.

The credit ratings reflect the

sovereign credit rating of

the country to which the ultimate risk of the

underlying asset is related. The ultimate country of risk for

unsecured loan

positions is the domicile

of the immediate borrower or,

in the case of

a legal entity, the

domicile of the ultimate parent

entity.

For

collateralized

guaranteed

positions,

the

ultimate

country

risk

the

domicile

the

provider

the

collateral or

guarantor or,

applicable, the

domicile of

the

ultimate parent

entity of

the

provider of

the collateral

guarantor. For mortgage loans, the ultimate

country of risk is the

country where the real estate is

located. Similarly, the

ultimate country of

risk for property and

equipment is the country

where the property

and equipment are

located. Assets

for which Switzerland

is the ultimate

country of risk

are provided separately

at the bottom

of the table

in order to

provide

a reconciliation to total balance sheet assets.

›

Refer to the “Risk management and control” section of the UBS AG Annual Report 2025, available

under “Annual reporting” at

ubs.com/investors

, for more information

Country risk of total assets

31.12.25

31.12.24

Classification

Internal UBS rating

Description

Moody’s Investors

Service

S&P

Fitch

USD m

Low risk

0 and 1

Investment grade

Aaa

AAA

75,156

343,884

Aa1 to Aa3

AA+ to AA–

363,005

134,479

Medium risk

A1 to A3

A+ to A–

125,201

93,246

Baa1 to Baa2

BBB+ to BBB

20,842

18,082

Baa3

BBB–

8,115

6,872

High risk

Sub-investment grade

Ba1

BB+

447

828

Ba2

3,825

2,765

Ba3

BB–

246

B+

1,422

1,805

Very high risk

382

454

B–

491

129

Caa1 to Caa2

CCC+ to CCC

5,498

4,659

Caa3 to C

CCC– to C

157

121

Distressed

Default

Defaulted

119

Subtotal

604,636

607,688

Switzerland

187,705

183,608

Total assets

792,341

100

791,297

100

1 Internal ratings are mapped to the external ratings in line with the table published in the “Risk management and control”

section of the UBS AG Consolidated Annual Report 2025.

Country risk of total assets

31.12.25

31.12.24

Classification

Internal UBS rating

Description

Moody’s Investors

Service

S&P

Fitch

CHF m

Low risk

0 and 1

Investment grade

Aaa

AAA

59,592

312,281

Aa1 to Aa3

AA+ to AA–

287,834

122,121

Medium risk

A1 to A3

A+ to A–

99,275

84,676

Baa1 to Baa2

BBB+ to BBB

16,526

16,420

Baa3

BBB–

6,435

6,240

High risk

Sub-investment grade

Ba1

BB+

355

752

Ba2

3,033

2,511

Ba3

BB–

223

B+

1,128

1,639

Very high risk

303

412

B–

389

117

Caa1 to Caa2

CCC+ to CCC

4,359

4,231

Caa3 to C

CCC– to C

124

110

Distressed

Default

Defaulted

108

Subtotal

479,427

551,841

Switzerland

148,835

166,734

Total assets

628,262

100

718,576

100

1 Internal ratings are mapped to the external ratings in line with the table published in the “Risk management and control”

section of the UBS AG Consolidated Annual Report 2025.

UBS AG standalone financial statements (audited)

Note 20

Structured debt instruments

The table below provides a breakdown of financial liabilities designated at fair value that are considered structured debt

instruments.

Structured debt instruments

USD m

CHF m

31.12.25

31.12.24

31.12.25

31.12.24

Fixed-rate bonds with structured features

8,275

8,684

6,561

7,886

Structured debt instruments issued:

Equity-linked

60,278

53,917

47,795

48,962

Rates-linked

25,545

22,373

20,255

20,316

Credit-linked

2,990

4,787

2,371

4,347

Commodity-linked

3,032

3,620

2,404

3,288

FX-linked

1,467

1,253

1,163

1,138

Funding received from UBS Group AG designated at fair value

6,430

4,998

5,098

4,539

Structured over-the-counter (OTC) debt instruments

2,109

3,268

1,672

2,968

Total financial liabilities designated at fair value

110,126

102,901

87,321

93,444

1 Includes precious metals-linked debt instruments issued.

2 Refer to Note 21 for more information.

In addition to

Financial liabilities designated

at fair value

, certain structured

debt instruments were

reported within the

balance

sheet

lines

Due

banks

Due

customers

and

Bonds

issued

These

instruments

were

bifurcated

for

measurement purposes. As of 31 December 2025, the total carrying amount

of the host instruments was USD 11,864m

(CHF 9,407m)

(31 December

2024:

USD 8,258m

(CHF 7,499m))

and

the

total

carrying

amount

the

bifurcated

embedded derivatives was positive USD 91m (CHF 72m) (31 December 2024: positive USD 63m (CHF 57m)).

Note 21

Funding eligible as total loss-absorbing capacity at the UBS AG level

USD m

CHF m

31.12.25

31.12.24

31.12.25

31.12.24

Funding eligible as total loss-absorbing capacity at the UBS AG level included in:

Funding received from UBS Group AG measured at amortized cost

107,016

108,185

84,855

98,243

Funding received from UBS Group AG designated at fair value

6,430

4,998

5,098

4,539

Bonds issued

218

198

Total funding eligible as total loss-absorbing capacity at the UBS AG level

113,446

113,401

89,953

102,980

1 Represents the

Swiss GAAP carrying

amount of instruments

qualifying as

total loss-absorbing capital.

In accordance with

the Basel III

framework, as

applicable to Swiss

systemically relevant

banks (SRB), total

funding eligible

as total

loss-absorbing capacity

at the

UBS AG

level was

USD 109,738m

(CHF 87,014m)

as of

31 December

2025 (31

December 2024:

USD 108,004m

(CHF 98,079m)).

Refer to

the “UBS

standalone regulatory information” section of this report for more information about Swiss SRB going and gone concern capital.

UBS AG standalone financial statements (audited)

Note 22a

Share capital

UBS AG shares issued and outstanding

As of

31 December

2025, UBS AG’s

share capital of

USD 386m

(CHF 306m) consisted

of 3,858,408,466 fully

paid-up

registered issued and outstanding shares with

a nominal value of USD 0.10, which

each entitle the holder to one vote

the meeting

of the

shareholders of

UBS AG,

if entered

into the

share register

as having

the right

to vote,

as well

as a

proportionate share of distributed

dividends (unchanged from 31

December 2024). UBS AG’s

shares are not

subject to

any restrictions or limitations on their transferability. All shares were held by UBS Group AG.

Conditional share capital

As of

31 December

2025, the

following conditional

share capital

was available

to the

Board of

Directors (the

BoD) of

UBS AG:

–

Conditional

capital

the

amount

USD

38,000,000,

for

the

issuance

maximum

380,000,000

fully

paid

registered shares with a nominal value of USD 0.10 each (unchanged from 31 December 2024), to be issued through

the voluntary or mandatory exercise of conversion

rights and / or warrants granted in connection

with the issuance of

bonds or similar financial

instruments on national or

international capital markets. This

conditional capital allowance

was approved at the

Extraordinary General Meeting held

on 26 November 2014,

having originally been approved

the Annual General Meeting (the AGM) of UBS AG on 14 April 2010. The BoD has not made use of such allowance.

Conversion capital

December

2025,

UBS

had

conversion

capital

the

amount

USD

70,000,000,

for

the

issuance

maximum

700,000,000

fully

paid

registered

with

nominal

value

USD

0.10

each

(unchanged

from

31 December 2024). The issuance

of fully paid registered

shares only occurs through

the mandatory conversion of

claims

arising upon

occurrence of

one or

more trigger

events under

financial market

instruments with

contingent conversion

features issued by UBS AG. The creation of this conversion capital was approved at the AGM held on 23 April 2024.

Non-distributable reserves

consist of

50% of

the share

capital of

UBS AG, amounting

to USD 193m

(CHF 153m) as of

31 December 2025 (unchanged from 31 December 2024).

Note 22b

Significant shareholders

The sole direct shareholder of UBS AG is

UBS Group AG, which holds 100% of UBS

AG shares. These shares are entitled

to voting

rights. Indirect

shareholders of

UBS AG

included in

the table

below are

the direct

shareholders of

UBS Group AG

(acting in their own name or in their capacity as nominees for other investors or beneficial owners) that were registered

in the UBS Group AG share register with 3% or more of the share capital of UBS Group AG as of 31 December 2025 or

as of 31 December

2024. The shares

and share capital

of UBS AG

held by indirect

shareholders, as shown

in the table

below, represent their relative holding of UBS Group AG shares.

They do not have voting rights in UBS AG.

Significant shareholders

31.12.25

31.12.24

USD m, except where indicated

Share capital held

Shares held (%)

Share capital held

Shares held (%)

Significant direct shareholder of UBS AG

UBS Group AG

386

100

386

100

Significant indirect shareholders of UBS AG

DTC (Cede & Co.), New York

The Bank of New York Mellon, Everett

Nortrust Nominees Ltd., London

1 DTC (Cede & Co.), New York, “The

Depository Trust Company”, is a US securities clearing organization.

Significant shareholders

31.12.25

31.12.24

CHF m, except where indicated

Share capital held

Shares held (%)

Share capital held

Shares held (%)

Significant direct shareholder of UBS AG

UBS Group AG

306

100

380

100

Significant indirect shareholders of UBS AG

DTC (Cede & Co.), New York

The Bank of New York Mellon, Everett

Nortrust Nominees Ltd., London

1 DTC (Cede & Co.), New York, “The

Depository Trust Company”, is a US securities clearing organization.

UBS AG standalone financial statements (audited)

Note 23

Post-employment benefit plans

a) Assets related to defined benefit plans

USD m

CHF m

31.12.25

31.12.24

31.12.25

31.12.24

Net defined benefit assets for defined benefit plans

903

428

716

388

Total assets for defined benefit plans

903

428

716

388

1 As of 31 December 2025, USD 903m

(CHF 716m) mainly reflected USD 833m (CHF

660m) for the UBS and Credit Suisse

UK defined benefit plans (including USD 444m

(CHF 352m) transferred from Credit Suisse

International in 2025), USD 34m (CHF 27m) for the Credit Suisse Guernsey defined benefit plan,

USD 29m (CHF 23m) for the UBS US Investment Bank defined benefit plan, and USD 8m

(CHF 6m) for the Credit Suisse

Swiss pension plan. As of 31 December 2024, USD 428m (CHF 388m) mainly reflected USD 362m

(CHF 329m) for the UBS UK defined benefit plan, USD 36m (CHF 33m) for the Credit Suisse Guernsey defined benefit

plan, USD 22m (CHF 20m) for the UBS US Investment Bank defined benefit plan, and USD 6m (CHF 6m) for the Credit Suisse Swiss pension plan.

b) Liabilities related to defined benefit plans

USD m

CHF m

31.12.25

31.12.24

31.12.25

31.12.24

Provision for Swiss pension plans

Net defined benefit liabilities for defined benefit plans

Total provision for defined benefit plans

Bank accounts at UBS and UBS debt instruments held by Swiss pension funds

293

266

UBS derivative financial instruments held by Swiss pension funds

Total liabilities related to defined benefit plans

165

369

131

335

1 As of

31 December 2025,

USD 61m (CHF

48m) mainly

reflected USD 35m

(CHF 28m) for

the UBS

US plans,

USD 13m (CHF 10m)

for the UBS

UK plan,

and USD 8m

(CHF 6m)

for the UBS

Taiwan

plan. As of

31 December 2024, USD 61m (CHF 55m) mainly reflected USD 35m (CHF 32m) for the UBS US plans, USD 12m (CHF

11m) for the UBS UK plan, and USD 8m (CHF 7m) for the UBS Taiwan

plan.

c) Swiss pension plans

USD m

CHF m

As of or for the year ended

31.12.25

31.12.24

31.12.25

31.12.24

Pension plan surplus

832

1,195

660

1,085

Economic benefit / (obligation) of UBS AG

Change in economic benefit / (obligation) recognized in the income statement

Employer contributions in the period recognized in the income statement

102

177

157

Performance awards-related employer contributions accrued

Total pension expense recognized in the income statement within Personnel expenses

114

184

163

1 The pension

plan surplus is

determined in accordance

with Swiss GAAP

(FER 26) and

consists of the

reserve for the

fluctuation in asset

value and a

prepaid contribution. The

reserve for the

fluctuation did not

represent an economic benefit for UBS AG in accordance with Swiss accounting standards as of both 31 December 2025 and 31

December 2024.

UBS AG has elected to apply

Swiss accounting standards for its Swiss

pension plan and IFRS Accounting Standards

(IAS

19) for its non-Swiss defined benefit

plans. However,

remeasurements of the defined

benefit obligations and assets for

non-Swiss defined benefit plans are recognized in the income statement rather than directly in equity.

In 2025,

an expense

of USD

255m (CHF

202m) was

recognized in

the income

statement, driven

by expenses

of USD 136m

(CHF 108m) related to

defined contribution plans and

USD 119m (CHF 94m)

related to defined benefit

plans. In 2024,

expense

USD

277m

(CHF

243m)

was

recognized

the

income

statement,

driven

expenses

USD

130m

(CHF 116m) related to defined contribution plans and USD 148m (CHF 127m) related to defined benefit plans.

In 2025, as part of

the process of winding down

Credit Suisse International, Credit

Suisse International transferred its

pension scheme to UBS

AG via dividend in

kind, with UBS AG

becoming the new principal

employer of the former

Credit

Suisse International UK pension scheme.

The Swiss pension

plans had an

employer contribution reserve of

USD 8m as

of 31 December 2025

and USD 6m

as of

31 December 2024.

›

Refer to Note 2 for more information

›

Refer to “Note 25 Post-employment benefit plans” in the “Consolidated financial statements” section of the UBS

AG Annual

Report 2025, available under “Annual reporting” at

ubs.com/investors

, for more information about defined benefit plans in

accordance with IFRS Accounting Standards

UBS AG standalone financial statements (audited)

Note 24

Related parties

Transactions with

related parties are conducted at

internally agreed transfer prices or at arm’s-length terms

and neither

involve more than

the normal risk of

collectability nor contain any

other unfavorable features

for the firm.

Loans, fixed

advances

and

mortgages

granted

non-independent

members

the

governing

bodies

the

ordinary

course

business are also on substantially

the same terms and conditions

that are available to other

employees, including interest

rates and

collateral. Independent

members of

the governing

bodies are

granted loans

and mortgages

in the

ordinary

course of business at general market conditions.

Related parties

31.12.25

31.12.24

USD m

Amounts due from

Amounts due to

Amounts due from

Amounts due to

Qualified shareholders

1,551

128,815

3,099

123,802

of which: due from / to customers

869

5,915

2,047

2,590

of which: funding received from UBS Group AG measured at amortized cost

114,423

113,898

of which: funding received from UBS Group AG designated at fair value

6,430

4,998

Subsidiaries

188,199

95,774

187,707

116,401

of which: due from / to banks

94,139

66,566

88,211

73,492

of which: due from / to customers

28,842

5,845

33,376

4,869

of which: receivables / payables from securities financing transactions

16,778

20,614

17,475

35,526

of which: funding provided to significant regulated subsidiaries eligible as total loss-

absorbing capacity

45,085

43,652

Affiliated entities

173

1,635

502

1,397

of which: due from / to customers

109

1,081

416

889

External auditors

Other related parties

1 The qualified shareholder of UBS AG is UBS Group AG.

2 Affiliated entities of UBS AG are all direct subsidiaries of UBS Group AG.

3 Includes amounts due to / from other participations.

Related parties

31.12.25

31.12.24

CHF m

Amounts due from

Amounts due to

Amounts due from

Amounts due to

Qualified shareholders

1,230

102,140

2,815

112,424

of which: due from / to customers

689

4,690

1,859

2,352

of which: funding received from UBS Group AG measured at amortized cost

90,728

103,431

of which: funding received from UBS Group AG designated at fair value

5,098

4,539

Subsidiaries

149,226

75,941

170,457

105,704

of which: due from / to banks

74,645

52,782

80,105

66,738

of which: due from / to customers

22,869

4,635

30,309

4,422

of which: receivables / payables from securities financing transactions

13,303

16,346

15,869

32,261

of which: funding provided to significant regulated subsidiaries eligible as total loss-

absorbing capacity

35,749

39,640

Affiliated entities

137

1,296

456

1,268

of which: due from / to customers

857

378

808

External auditors

Other related parties

1 The qualified shareholder of UBS AG is UBS Group AG.

2 Affiliated entities of UBS AG are all direct subsidiaries of UBS Group AG.

3 Includes amounts due to / from other participations.

31 December

2025,

off-balance

sheet

positions

subsidiaries

amounted

USD 16.0bn

(CHF 12.7bn)

(31 December 2024: USD 14.2bn (CHF 12.9bn)),

of which USD 11.9bn

(CHF 9.4bn) related to

guarantees to third

parties

(31 December 2024: USD

8.4bn (CHF 7.6bn)) and

USD 1.1bn (CHF 0.8bn) related

to loan commitments

(31 December

2024: USD 1.9bn (CHF 1.7bn)).

Loans to and deposits from members of governing bodies were immaterial for all periods presented.

UBS AG standalone financial statements (audited)

Note 25

Fiduciary transactions

USD m

CHF m

31.12.25

31.12.24

31.12.25

31.12.24

Fiduciary deposits

3,997

2,435

3,169

2,211

of which: placed with third-party banks

3,997

2,435

3,169

2,211

of which: placed with subsidiaries and affiliated entities

Total fiduciary transactions

3,997

2,435

3,169

2,211

Fiduciary transactions encompass transactions entered into by UBS AG

that result in holding or placing assets

on behalf

individuals,

trusts,

defined

benefit

plans

and

other

institutions.

Unless

the

recognition

criteria

for

the

assets

are

satisfied, these assets and the related income are excluded from UBS AG’s balance sheet and

income statement but are

disclosed

this

Note

off-balance

sheet

fiduciary

transactions.

Client

deposits

that

are

initially

placed

fiduciary

transactions with

UBS AG

may be

recognized on

UBS AG’s

balance sheet

in situations

in which

the deposit

is subsequently

placed within UBS AG. In such cases, these deposits are not reported in the table above.

Note 26a

Invested assets and net new money

USD bn

CHF bn

As of or for the year ended

31.12.25

31.12.24

31.12.25

31.12.24

Discretionary assets

127

106

101

Other invested assets

922

799

731

726

Total invested assets

1,049

905

832

822

of which: double counts

Net new money

(12)

(11)

1 Includes double counts.

Note 26b

Development of invested assets

USD bn

CHF bn

31.12.25

31.12.24

31.12.25

31.12.24

Total invested assets at the beginning of the year

905

494

822

416

Effect of translating opening balance at closing rate

(104)

Invested assets recognized upon the merger of UBS AG and Credit Suisse AG

382

345

Net new money

(12)

(11)

Market movements

107

Foreign currency translation

(10)

Other effects

(11)

(16)

(9)

(14)

Total invested assets at the end of the year

1,049

905

832

822

1 Refer to “Presentation currencies” in Note

2a for more information.

2 Invested assets recognized upon the

merger of UBS AG and

Credit Suisse AG were measured

and reported as of 31 May

2024, the merger

effective date, in alignment with UBS accounting policies

outlined in Note 30 to the

UBS AG consolidated financial statements in the

UBS AG Annual Report 2025.

3 Includes interest and dividend income.

4 Includes

double counts.

›

Refer to “Note 30 Invested assets and net new money” in the “Consolidated financial statements” section of the UBS AG Annual

Report 2025, available under “Annual reporting” at

ubs.com/investors

, for more information

UBS AG standalone financial statements (audited)

Statement of proposed appropriation of total profit

and dividend distribution

The Board of

Directors (the BoD)

proposes that the

Annual General Meeting

of Shareholders (the

AGM) on 14 April

2026

approve the

appropriation of

total profit

and an

ordinary dividend

distribution of

USD 4,500m out

of the

total profit.

Furthermore, the BoD proposes the

appropriation of an amount of

USD 4,500m out of the

Voluntary earnings reserve

a special dividend reserve within the

Voluntary earnings reserve

Appropriation of and distribution out of total profit

USD m

CHF m

For the year ended

31.12.25

Net profit for the period

9,149

7,254

Profit / (loss) carried forward

Total profit available for appropriation

9,149

7,254

Appropriation of total profit

Appropriation to voluntary earnings reserve

(4,649)

(3,686)

Dividend distribution

(4,500)

(3,568)

Profit / (loss) carried forward

Proposed appropriation to voluntary earnings reserve

Total voluntary earnings reserve before appropriation

5,295

4,199

Appropriation to voluntary earnings reserve

4,649

3,686

Total voluntary earnings reserve after appropriation

9,944

7,885

of which: appropriation to special dividend reserve within voluntary earnings reserve

4,500

3,568

1 For

illustrative purposes,

converted at

the closing

exchange rate

as of

31 December

2025.

2 The

Voluntary earnings

reserve includes

a special

dividend reserve

of USD

4,500m (CHF

3,568m) available

for

appropriation. The decision

on the special dividend

payment is intended to

be made at an Extraordinary

General Meeting in the

second half of 2026

and is subject to UBS

AG meeting its capital

requirements on a

standalone and consolidated level, and the outcome and timing of the implementation of the new regulatory regime in Switzerland.

UBS AG standalone regulatory information

Key metrics for the fourth quarter of 2025

The

table

below

based

the

Swiss

Financial

Market

Supervisory

Authority

(FINMA)

Ordinance

the

Disclosure

Obligations of Banks and Securities Firms (DisO-FINMA) rules and IFRS Accounting Standards.

During the fourth quarter

of 2025, tier 1 capital

increased by USD 0.4bn to

USD 93.7bn. Common equity tier 1

(CET1)

capital increased by USD 0.7bn to USD 74.1bn, mainly

reflecting operating profit before tax of USD

1.6bn, partly offset

by additional accruals for capital returns

to UBS Group AG of USD 1.0bn. As of

31 December 2025, accruals for capital

returns to

UBS Group AG

amounted to

USD 9.0bn, reflecting

a proposed

ordinary dividend

distribution of

USD 4.5bn

and the

appropriation of

USD 4.5bn to

a special

dividend reserve,

both subject

to approval

at the

Annual General

Meeting

in the

second quarter

of 2026.

The decision

on the

distribution of

the special

dividend is

intended to

be made

at an

Extraordinary General Meeting in the second half of 2026 and is subject to UBS AG meeting

its capital requirements on

a standalone

and consolidated

level, as

well as

the outcome

and timing

of the

implementation of

the new

regulatory

regime in Switzerland.

Additional tier 1

(AT1) capital

issued by

the Group

and on

lent to UBS

AG decreased

by USD 0.4bn

to USD 19.6bn,

mainly

reflecting the call of one AT1 capital instrument equivalent to USD 0.4bn that was on lent from the Group.

Risk-weighted assets

(RWA) decreased

by USD 26.3bn

to USD 491.6bn

during the

fourth quarter

of 2025,

primarily driven

by lower

RWA on

investments in

subsidiaries following

capital repatriations,

and decreases

in credit

and counterparty

credit risk RWA, as well as market risk RWA. This was partly offset by an increase in operational risk RWA,

mainly due to

the higher business indicator component.

The leverage ratio denominator (the LRD)

decreased by USD 22.1bn to USD 930.0bn, driven

by a USD 20.9bn decrease

from asset

size and

other movements

and a

USD 1.3bn decrease

from currency

effects. The

change in

asset size

and

other movements was

mainly due to

capital repatriations reducing

investments in subsidiaries,

lower lending balances,

and

disposals

high-quality

liquid

asset

(HQLA)

portfolio

securities

and

trading

assets,

along

with

lower

securities

financing transactions and derivative exposures, partly offset by increases in cash and balances at central banks and off-

balance sheet items.

Correspondingly,

the

CET1

capital

ratio

UBS AG

standalone

increased

15.1%

from

14.2%,

reflecting

the

aforementioned decrease

in RWA

and

the

aforementioned increase

in CET1

capital. The

firm’s Basel

III leverage

ratio

increased to 10.1% from 9.8%, reflecting the aforementioned

decrease in the LRD and the aforementioned increase

tier 1 capital.

The

quarterly

average

liquidity

coverage

ratio

(the

LCR)

UBS AG

standalone

decreased

6.0 percentage

points

234.9%, remaining above the prudential

requirement communicated by FINMA.

The movement in the quarterly

average

LCR was primarily

driven by a

decrease in average

HQLA of USD 13.2bn

to USD 149.3bn, mainly

reflecting lower cash

available due

to lower

customer deposits

and higher

funding to

subsidiaries. Average

net cash

outflows decreased

USD 3.9bn to USD 63.7bn, mainly reflecting higher inflows from intercompany loans.

As of 31 December 2025, the net stable funding ratio decreased 5.5 percentage points to 90.7%, remaining

above the

prudential requirement

communicated by FINMA.

Available stable

funding decreased

by USD 14.2bn to

USD 404.8bn,

mainly driven

by decreases

in debt

issued measured

at amortized

cost and

intercompany deposits.

Required stable

funding

increased by USD 10.9bn to

USD 446.5bn, mainly reflecting higher

intercompany funding to subsidiaries,

partly offset by

a decrease in investments in subsidiaries due to capital repatriations.

UBS AG standalone regulatory information

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)

74,108

73,384

73,178

70,980

75,051

Tier 1

93,707

93,349

91,834

89,305

90,881

Total capital

93,731

93,349

91,834

89,305

90,882

Risk-weighted assets (amounts)

Total risk-weighted assets (RWA)

491,583

517,929

516,479

514,897

507,964

Total risk-weighted assets (pre-floor)

491,583

517,929

516,479

514,897

Minimum capital requirement

39,327

41,434

41,318

41,192

40,637

Risk-based capital ratios as a percentage of RWA

Common equity tier 1 ratio (%)

15.08

14.17

13.79

14.77

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

15.08

14.17

13.79

Tier 1 ratio (%)

19.06

18.02

17.78

17.34

17.89

Tier 1 ratio (%) (pre-floor)

19.06

18.02

17.78

17.34

Total capital ratio (%)

19.07

18.02

17.78

17.34

17.89

Total capital ratio (%) (pre-floor)

19.07

18.02

17.78

17.34

Additional CET1 buffer requirements as a percentage of RWA

Capital conservation buffer requirement (%)

2.50

Countercyclical buffer requirement (%)

0.12

0.14

0.15

0.19

Additional countercyclical buffer for Swiss mortgage loans (%)

0.00

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

Total of bank CET1 specific buffer requirements (%)

2.62

2.64

2.65

2.69

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

10.58

9.67

9.29

9.89

Basel III leverage ratio

Total Basel III leverage ratio exposure measure

929,979

952,112

964,000

935,496

899,348

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

exemption of central bank reserves)

10.08

9.80

9.53

9.55

10.11

14b

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

temporary exemption of central bank reserves)

10.08

9.80

9.53

9.55

14c

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

exemption of central bank reserves) incorporating mean values for SFT

assets

9.96

9.72

9.56

9.52

14d

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

temporary exemption of central bank reserves) incorporating mean values for

SFT assets

9.96

9.72

9.56

9.52

14e

Minimum capital requirements

39,327

41,434

41,318

41,192

Liquidity coverage ratio (LCR)

Total high-quality liquid assets (HQLA)

149,309

162,513

177,434

UBS AG 6-K