32
Cautionary statement
regarding forward-looking statements
|
This document contains
statements that
constitute “forward-looking
statements”, including
but not limited to management’s outlook for
UBS’s financial performance, statements relating to the anticipated effect
of transactions and strategic initiatives
on UBS’s
business and future
development and goals
or intentions to
achieve climate, sustainability
and other social
objectives. While these
forward-looking
statements represent
UBS’s judgments,
expectations and
objectives concerning the
matters described,
a number
of risks,
uncertainties and
other important
factors could cause actual
developments and results to
differ materially from UBS’s
expectations. In particular, the global economy
may be negatively affected
by
shifting political circumstances,
including increased tension
between world powers,
terrorist activity, conflicts in
the Middle East,
as well as
the continuing
Russia–
Ukraine war. In addition, the ongoing conflicts may
continue to cause significant
population displacement, and lead
to shortages of vital commodities,
including
energy
shortages and
food
insecurity outside
the areas
immediately involved
in
armed
conflict. Governmental
responses
to
the
armed conflicts,
including
successive sets of sanctions
on Russia and Belarus,
and Russian and Belarusian
entities and nationals,
and the uncertainty
as to whether the
ongoing conflicts will
further widen and intensify,
may have significant adverse effects on
the market and macroeconomic conditions, including in ways
that cannot be anticipated.
UBS’s acquisition
of the
Credit Suisse
Group has
materially changed
its outlook
and strategic
direction and
introduced new
operational challenges.
The integration
of the Credit Suisse entities into the UBS structure is expected to continue through 2026 and presents significant operational and execution risks, including the
risk that UBS may be unable to achieve the cost reductions and business
benefits contemplated by the transaction, that it may incur higher
costs to execute the
integration of Credit Suisse and that the acquired business may have greater risks or liabilities than expected. Following the failure of Credit Suisse, Switzerland
is
considering
significant
changes
to
its
capital,
resolution
and
regulatory
regime,
which,
if
proposed
and
adopted,
may
significantly
increase
our
capital
requirements or
impose other
costs on
UBS These
factors create
greater uncertainty
about forward-looking
statements. Other
factors that
may affect
UBS’s
performance and ability to
achieve its plans, outlook
and other objectives also
include, but are
not limited to: (i)
the degree to
which UBS is successful
in the
execution of its strategic
plans, including its
cost reduction and efficiency
initiatives and its ability
to manage its levels
of risk-weighted assets
(RWA) and leverage
ratio denominator (LRD),
liquidity coverage ratio
and other financial
resources, including changes
in RWA assets and
liabilities arising from
higher market volatility
and the size of the combined Group; (ii) the degree to which UBS
is successful in implementing changes to its businesses to meet changing market, regulatory
and other conditions; (iii) inflation
and interest rate volatility in major
markets; (iv) developments in the
macroeconomic climate and in the markets
in which UBS
operates or to which it is exposed, including movements in securities prices or liquidity, credit spreads, currency exchange rates, residential and commercial real
estate
markets,
general
economic
conditions,
and
changes
to
national
trade
policies
on
the
financial
position
or
creditworthiness
of
UBS’s
clients
and
counterparties, as well as on client sentiment and levels of activity; (v) changes in the availability of capital and funding, including
any adverse changes in UBS’s
credit spreads and credit ratings of
UBS, as well as availability
and cost of funding to
meet requirements for debt eligible
for total loss-absorbing
capacity (TLAC);
(vi) changes in
central bank policies
or the implementation
of financial legislation
and regulation in
Switzerland, the
US, the UK,
the EU and
other financial centers
that have imposed, or resulted
in, or may do so
in the future, more stringent
or entity-specific capital,
TLAC, leverage ratio, net
stable funding ratio, liquidity
and
funding
requirements,
heightened
operational
resilience
requirements,
incremental
tax
requirements,
additional
levies,
limitations
on
permitted
activities,
constraints on remuneration, constraints
on transfers of capital
and liquidity and sharing of
operational costs across the
Group or other measures, and the
effect
these will
or would have
on UBS’s
business activities;
(vii) UBS’s
ability to
successfully implement
resolvability and
related regulatory requirements
and the
potential
need to make further changes to the
legal structure or booking model of
UBS in response to legal and regulatory requirements
and any additional requirements
due to its acquisition of the Credit Suisse Group, or other developments; (viii) UBS’s ability to maintain and improve its systems and controls for complying with
sanctions in a timely
manner
and for the detection
and prevention of money
laundering to meet evolving
regulatory requirements and expectations,
in particular
in current geopolitical turmoil;
(ix) the uncertainty arising
from domestic stresses in certain
major economies; (x) changes in
UBS’s competitive position, including
whether differences in regulatory capital and other requirements among the major financial centers adversely affect UBS’s ability to
compete in certain lines of
business; (xi) changes in the standards of
conduct applicable to its businesses that may result from
new regulations or new enforcement of existing standards,
including measures to impose new and enhanced duties when interacting with customers and in the execution and handling of customer transactions; (xii) the
liability to which UBS may be exposed, or possible
constraints or sanctions that regulatory authorities
might impose on UBS, due to litigation, contractual
claims
and regulatory
investigations, including the
potential for
disqualification from
certain businesses, potentially
large fines
or monetary
penalties, or
the loss
of
licenses or privileges as
a result of
regulatory or other governmental sanctions, as
well as the effect
that litigation, regulatory and similar
matters have on the
operational risk
component of its
RWA; (xiii)
UBS’s ability to
retain and
attract the
employees necessary to
generate revenues and
to manage, support
and
control its businesses,
which may be
affected by competitive
factors; (xiv)
changes in
accounting or
tax standards or
policies, and determinations
or interpretations
affecting the recognition of gain or loss, the valuation of
goodwill, the recognition of deferred tax assets
and other matters; (xv) UBS’s ability to implement
new
technologies and business methods,
including digital services, artificial
intelligence and other technologies,
and ability to successfully compete
with both existing
and new financial service providers,
some of which may not be regulated
to the same extent; (xvi) limitations
on the effectiveness of UBS’s internal
processes for
risk
management, risk
control, measurement
and modeling,
and
of
financial models
generally; (xvii)
the occurrence
of
operational failures,
such
as
fraud,
misconduct, unauthorized trading, financial crime, cyberattacks, data leakage and systems
failures, the risk of which is increased with persistently high levels of
cyberattack threats; (xvii) restrictions on
the ability of UBS Group AG UBS
AG and regulated subsidiaries of
UBS AG to make payments or
distributions, including
due to restrictions on the ability of its subsidiaries to make loans or distributions, directly or indirectly, or,
in the case of financial difficulties, due to the exercise
by FINMA or the
regulators of UBS’s
operations in other
countries of their
broad statutory powers
in relation to
protective measures, restructuring
and liquidation
proceedings; (xix) the degree to which changes
in regulation, capital or legal structure, financial results
or other factors may affect UBS’s ability
to maintain its
stated capital return objective; (xx)
uncertainty over the scope of
actions that may be required by UBS, governments
and others for UBS to achieve goals
relating
to climate, environmental and social matters, as well as the evolving
nature of underlying science and industry and the possibility of conflict
between different
governmental standards and regulatory regimes; (xxi) the ability of UBS to access capital markets; (xxii) the ability of UBS to successfully recover from
a disaster
or other business continuity problem
due to a
hurricane, flood, earthquake, terrorist attack, war,
conflict, pandemic, security breach, cyberattack, power
loss,
telecommunications failure or
other natural or
man-made event;; and
(xxiii) the effect that
these or other
factors or unanticipated
events, including media
reports
and speculations, may have on its reputation and the additional consequences that this may have on its business and performance. The sequence in which the
factors above are
presented is not
indicative of their
likelihood of occurrence
or the potential
magnitude of their
consequences. UBS’s business and
financial
performance could be affected
by other factors identified
in its past
and future filings
and reports, including
those filed with
the US Securities
and Exchange
Commission (the SEC).
More detailed information
about those factors
is set forth
in documents furnished
by UBS and
filings made by
UBS with the
SEC, including
the UBS Group AG and
UBS AG Annual Reports
on Form 20-F for the
year ended 31 December
2023. UBS is not
under any obligation to
(and expressly disclaims
any obligation to) update or alter its forward-looking
statements, whether as a result of new information,
future events, or otherwise.
© UBS 2025. The key symbol and UBS are among
the registered and unregistered trademarks of UBS. All rights
reserved
