UBS ‘strongly disagrees’ with ‘extreme increase’ in capital requirements

UBS (UBS) said in a statement: “UBS supports in principle most of the regulatory proposals the Swiss Federal Council published today. However, UBS strongly disagrees with the extreme increase in capital requirements that has been proposed. These changes would result in capital requirements that are neither proportionate nor internationally aligned. The proposals would require UBS to fully deduct investments in foreign subsidiaries from its CET1 capital. UBS would also need to fully deduct deferred tax assets on temporary differences and capitalized software from its CET1 capital. Furthermore, the proposals would necessitate an increase in prudential valuation adjustments…UBS also reaffirms its capital return intentions for 2025. These include accruing for an increase of around 10% in the ordinary dividend per share and repurchasing up to USD 2bn of shares in the second half of the year, for a total of up to USD 3bn. This plan continues to be subject to UBS Group maintaining a CET1 capital ratio target of around 14% and achieving its financial targets and is consistent with UBS’s previously communicated plans and conservative approach…UBS will actively engage in the consultation process with all relevant stakeholders and contribute to evaluating alternatives and effective solutions that lead to regulatory change proposals with a reasonable cost/benefit outcome. UBS will also evaluate appropriate measures, if and where possible, to address the negative effects that extreme regulations would have on its shareholders.”