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