UBS : First quarter 2024 report – UBS AG consolidated

UBS AG

First quarter 2024 report

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1. UBS AG

4 Recent developments

6 UBS AG consolidated performance

2. Business divisions and Group Items

1. Global Wealth Management

1. Personal & Corporate Banking

1. Asset Management
2. Investment Bank

1. Non-coreand Legacy

1. Group Items

3. Risk, capital, liquidity and funding, and balance sheet

1. Risk management and control

1. Capital management

1. Liquidity and funding management
2. Balance sheet and off-balance sheet

4. Consolidated financial statements

39 UBS AG interim consolidated financial statements (unaudited)

Appendix

1. Alternative performance measures

1. Abbreviations frequently used in our financial reports

1. Information sources
2. Cautionary statement

Terms used in this report, unless the context requires otherwise

"UBS," "UBS Group," "UBS Group AG consolidated," "Group" and "the Group"	UBS Group AG and its consolidated subsidiaries
"UBS AG," "UBS AG consolidated," "we," "us" and "our"	UBS AG and its consolidated subsidiaries
"Credit Suisse AG" and "Credit Suisse AG consolidated"	Credit Suisse AG and its consolidated subsidiaries
"Credit Suisse Group" and "Credit Suisse Group AG consolidated"	Pre-acquisition Credit Suisse Group
"Credit Suisse"	Credit Suisse AG and its consolidated subsidiaries, Credit Suisse
	Services AG and other small former Credit Suisse Group entities
	now directly held by UBS Group AG
"UBS Group AG" and "UBS Group AG standalone"	UBS Group AG on a standalone basis
"Credit Suisse Group AG" and "Credit Suisse Group AG standalone"	Credit Suisse Group AG on a standalone basis
"UBS AG standalone"	UBS AG on a standalone basis
"Credit Suisse AG standalone"	Credit Suisse AG on a standalone basis
"UBS Switzerland AG" and "UBS Switzerland AG standalone"	UBS Switzerland AG on a standalone basis
"UBS Europe SE consolidated"	UBS Europe SE and its consolidated subsidiaries
"UBS Americas Holding LLC" and "UBS Americas Holding LLC consolidated"	UBS Americas Holding LLC and its consolidated subsidiaries
"1m"	One million, i.e., 1,000,000
"1bn"	One billion, i.e., 1,000,000,000
"1trn"	One trillion, i.e., 1,000,000,000,000

In this report, unless the context requires otherwise, references to any gender shall apply to all genders.

Alternative performance measures

An alternative performance measure (an APM) is a financial measure of historical or future financial performance, financial position or cash flows other than a financial measure defined or specified in the applicable recognized accounting standards or in other applicable regulations. A number of APMs are reported in UBS's external reports (annual, quarterly and other reports). APMs are used to provide a more complete picture of operating performance and to reflect management's view of the fundamental drivers of the business results. A definition of each APM, the method used to calculate it and the information content are presented under "Alternative performance measures" in the appendix to this report. These APMs may qualify as non-GAAP measures as defined by US Securities and Exchange Commission (SEC) regulations.

UBS AG first quarter 2024 report

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UBS AG consolidated key figures

UBS AG consolidated key figures

		As of or for the quarter ended
USD m, except where indicated	31.3.24	31.12.23	31.3.23
Results
Total revenues	9,108	8,014	8,844
Credit loss expense / (release)	52	62	38
Operating expenses	7,677	7,618	7,350
Operating profit / (loss) before tax	1,379	333	1,456
Net profit / (loss) attributable to shareholders	1,006	235	1,004
Profitability and growth1
Return on equity (%)	7.3	1.7	7.0
Return on tangible equity (%)	8.2	2.0	7.8
Return on common equity tier 1 capital (%)	9.1	2.1	9.4
Return on leverage ratio denominator, gross (%)	3.3	3.0	3.5
Cost / income ratio (%)	84.3	95.1	83.1
Net profit growth (%)	0.2	(84.5)	(49.9)
Resources
Total assets	1,116,806	1,156,016	1,056,758
Equity attributable to shareholders	55,046	55,234	58,386
Common equity tier 1 capital2	43,863	44,130	42,801
Risk-weighted assets2	328,732	333,979	321,224
Common equity tier 1 capital ratio (%)2	13.3	13.2	13.3
Going concern capital ratio (%)2	17.7	17.0	17.2
Total loss-absorbing capacity ratio (%)2	34.3	33.3	33.5
Leverage ratio denominator2	1,078,591	1,104,408	1,018,023
Common equity tier 1 leverage ratio (%)2	4.1	4.0	4.2
Liquidity coverage ratio (%)3	191.4	189.7
Net stable funding ratio (%)	121.6	119.6
Other
Invested assets (USD bn)1,4,5	4,672	4,505	4,184
Personnel (full-time equivalents)	47,635	47,590	48,105

1 Refer to "Alternative performance measures" in the appendix to this report for the definition and calculation method. 2 Based on the Swiss systemically relevant bank framework as of 1 January 2020. Refer to the "Capital management" section of this report for more information. 3 The disclosed ratios represent quarterly averages for the quarters presented and are calculated based on an average of 61 data points in the first quarter of 2024 and 63 data points in the fourth quarter of 2023. Refer to the "Liquidity and funding management" section of this report for more information. 4 Consists of invested assets for Global Wealth Management, Asset Management and Personal & Corporate Banking. Refer to "Note 31 Invested assets and net new money" in the "Consolidated financial statements" section of the UBS AG Annual Report 2023, available under "Annual reporting" at ubs.com/investors, for more information. 5 Starting with the second quarter of 2023, invested assets include invested assets from associates in the Asset Management business division, to better reflect the business strategy. Comparative figures have been restated to reflect this change.

UBS AG first quarter 2024 report

3

UBS AG

Management report

Recent developments

Integration of Credit Suisse

We expect to complete the merger of UBS AG and Credit Suisse AG on 31 May 2024, following operational testing and subject to remaining regulatory approvals. The transition to a single US intermediate holding company is also planned for the second quarter of 2024 and the merger of Credit Suisse (Schweiz) AG and UBS Switzerland AG continues to be planned for the third quarter of 2024. Completing the mergers of our significant legal entities is a critical step in enabling us to unlock the next phase of the cost, capital, funding and tax benefits we expect to realize in the second half of 2024 and by the end of 2025 and into 2026.

• Refer to the "Recent developments" section of the UBS Group first quarter 2024 report, available under "Quarterly reporting" atubs.com/investors, for more information about the integration of Credit Suisse

Regulatory and legal developments

Swiss Federal Council releases its report on systemically important banks

In April 2024, the Swiss Federal Council released its report on banking stability that evaluates the regulation of systemically important banks. The report includes a comprehensive review of the acquisition of the Credit Suisse Group and concludes that the existing Swiss too-big-to-fail (TBTF) regime must be further developed and strengthened. The Swiss Federal Council proposes to introduce a broad package of measures, focused on three areas: strengthening prevention, strengthening liquidity and expanding the crisis toolkit.

Preventive measures include proposals to strengthen the capital base, to improve resolvability and tighten capital requirements for global systemically important banks (G-SIBs), including the introduction of forward-looking elements for institution-specific Pillar 2 capital surcharges and increased capital adequacy requirements for foreign participations. The Swiss Federal Council also recommended preventive measures related to corporate governance, such as a senior management regime and stricter regulations regarding bonuses. To strengthen liquidity, the Swiss Federal Council intends to significantly expand the potential for the Swiss National Bank to provide more liquidity in a crisis. Furthermore, the Swiss Federal Council reiterated its support for the introduction of a public liquidity backstop. To expand the crisis toolkit, the Swiss Federal Council proposed measures that aim to minimize legal risks associated with the execution of resolution measures.

In the first half of 2025, the Swiss Federal Council is expected to present two packages to implement the proposed measures: one with changes at the ordinance level, which can be adopted by the Swiss Federal Council, and another, which will be submitted to the Parliament, with proposed legislative amendments. The Swiss Federal Council has stated that when drafting these two packages it will take into account the findings of the Parliamentary Investigation Committee concerning the role of the Swiss authorities in the rescue of the Credit Suisse Group. Due to the broad range of possible outcomes, the impact of the proposals on UBS can be fully assessed only when the implementation details become clearer.

FINMA publishes ordinances with implementing provisions for the revised Swiss Capital Adequacy Ordinance

In March 2024, the Swiss Financial Market Supervisory Authority (FINMA) published five new ordinances to implement the final Basel III standards in Switzerland, replacing various existing FINMA circulars, including ordinances on operational risks and market risks. The ordinances contain the implementing provisions for the Swiss Federal Council's revised Capital Adequacy Ordinance for banks (the CAO) and they will enter into force on 1 January 2025.

UBS AG first quarter 2024 report | UBS AG | Recent developments

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Shortening the securities settlement cycle to T+1

In the US, a shortened T+1 settlement cycle will apply to securities transactions beginning on 28 May 2024. In April 2024, the UK Accelerated Settlement Taskforce issued a report proposing a phased approach to the adoption of T+1 settlement and the establishing of a technical working group to review the operational and behavioral changes required for a T+1 settlement cycle. Recommendations for changes are planned to be made by the end of 2025 to enable the market to prepare, with the move to T+1 expected to take place before the end of 2027. The UK government has accepted the recommendations and confirmed it will work with the EU and Switzerland to see if similar timeframes will be pursued and, therefore, if alignment is possible.

New Retirement Security Rule adopted for US retirement and pension accounts

In April 2024, the US Department of Labor (the DOL) adopted a new Retirement Security Rule, related amendments to existing rules governing transactions between covered plans and parties in interest, and amendments to the "qualified professional asset manager" transaction exemption. The Retirement Security Rule expands the scope of transactions subject to requirements of the Employment Retirement Income Security Act by expanding the relationships and advice that create a fiduciary relationship between an investment professional and a plan or beneficiary, particularly in relation to individual retirement accounts (IRAs). The amendments to existing transaction exemptions generally limit or prohibit the use of those exemptions for transactions involving IRAs, with the intention of requiring transactions involving IRAs to rely upon an exemption (PTE 2020-2) imposing specific impartiality, conflict-of-interest and compliance requirements. Global Wealth Management US treats established IRA accounts as fiduciary relationships in accordance with PTE 2020-2. We are assessing the effect of the changes on our business with IRA accounts.

In connection with the adoption of the Retirement Security Rule, the DOL also amended PTE 2020-2 to expand the scope of affiliated persons for which a criminal conviction or determinations of misconduct disqualify an investment professional from using the exemption and to add a one-year transition period for a newly disqualified investment professional to transition the related business. The amendments to the qualified professional asset manager exemption also expand the scope of events that may trigger disqualification and add a similar one-year transition provision. In each case, the DOL retains the ability to grant an individual exemption from the disqualification.

The Swiss National Bank will raise the minimum reserve requirement for banks

In April 2024, the Swiss National Bank (the SNB) announced that it will raise the minimum reserve requirement for domestic banks from 2.5% to 4%, and it will therefore amend the National Bank Ordinance as of 1 July 2024. The SNB further announced that liabilities arising from cancelable customer deposits (excluding tied pension provisions) will be included in full in the calculation of the minimum reserve requirement, as is the case with the other relevant liabilities. This revokes the previous exception under which only 20% of these liabilities counted toward the calculation. Based on preliminary internal assessments, UBS expects a negative impact of USD 70m to USD 80m per annum on net interest income to result from these changes.

Other developments

Credit Suisse's wealth management business in Japan

In April 2024, UBS AG and Sumitomo Mitsui Trust Holdings, Inc. (SuMi TRUST Holdings) announced that their wealth management entity, UBS SuMi TRUST Wealth Management Co., Ltd. (UBS SuMi), will acquire Credit Suisse's wealth management business in Japan, including all of Credit Suisse's client advisors and the assets they manage in Japan. Following completion, UBS AG and SuMi TRUST Holdings will rebalance their investments in UBS SuMi to maintain the current ownership structure (UBS AG 51% / SuMi TRUST Holdings 49%). UBS AG will continue to consolidate the entity. The transaction is expected to close in the fourth quarter of 2024 and it is not expected to have a material effect on the common equity tier 1 capital of UBS AG.

UBS AG first quarter 2024 report | UBS AG | Recent developments

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UBS AG consolidated performance

Income statement

		For the quarter ended			% change from
USD m	31.3.24	31.12.23	31.3.23		4Q23	1Q23
Net interest income	806	888	1,388	(9)	(42)
Other net income from financial instruments measured at fair value through profit or loss	2,945	2,458	2,673	20	10
Net fee and commission income	5,148	4,726	4,628	9	11
Other income	209	(58)	155			34
Total revenues	9,108	8,014	8,844	14	3
Credit loss expense / (release)	52	62	38	(17)	35
Personnel expenses	4,161	3,958	3,898	5	7
General and administrative expenses	2,985	3,108	2,983	(4)	0
Depreciation, amortization and impairment of non-financial assets	531	553	469	(4)	13
Operating expenses	7,677	7,618	7,350	1	4
Operating profit / (loss) before tax	1,379	333	1,456	314	(5)
Tax expense / (benefit)	366	91	445	303	(18)
Net profit / (loss)	1,014	242	1,012	318	0
Net profit / (loss) attributable to non-controlling interests	8	7	8	9	0
Net profit / (loss) attributable to shareholders	1,006	235	1,004	328	0
Comprehensive income
Total comprehensive income	(169)	2,375	1,804
Total comprehensive income attributable to non-controlling interests	(4)	19	13
Total comprehensive income attributable to shareholders	(166)	2,355	1,791

Integration-related expenses by business division and Group Items

		For the quarter ended
USD m	31.3.24	31.12.23
Global Wealth Management	228	266
Personal & Corporate Banking	84	66
Asset Management	35	29
Investment Bank	114	151
Non-core and Legacy	61	110
Group Items	1	1
Total integration-related expenses	523	624

Results: 1Q24 vs 1Q23

Operating profit before tax decreased by USD 77m, or 5%, to USD 1,379m, reflecting an increase in operating expenses, partly offset by an increase in total revenues. Operating expenses increased by USD 327m, or 4%, to USD 7,677m and included total integration-related expenses of USD 523m. Personnel expenses increased by USD 263m, or 7%, and depreciation, amortization and impairment of non-financial assets increased by USD 62m. Total revenues increased by USD 264m, or 3%, to USD 9,108m, reflecting a USD 520m increase in net fee and commission income, which was partly offset by a USD 310m decrease in combined net interest income and other net income from financial instruments measured at fair value through profit or loss. Other income increased by USD 54m, or 34%. Net credit loss expenses were USD 52m, compared with USD 38m in the prior-year quarter.

Integration-related expenses primarily included higher personnel expenses, which were mainly due to salaries and variable compensation, related to the integration of Credit Suisse, higher consulting fees in general and higher administrative expenses, as well as accelerated depreciation of properties and leasehold improvements in depreciation, amortization and impairment of non-financial assets.

UBS AG first quarter 2024 report | UBS AG | UBS AG consolidated performance

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Integration-related expenses are defined as expenses that are temporary, incremental and directly related to the integration of Credit Suisse into UBS, including costs of internal staff and contractors substantially dedicated to integration activities, retention awards, redundancy costs, incremental expenses from the shortening of useful lives of property, equipment and software, and impairment charges relating to these assets. Classification as integration- related expenses does not affect the timing of recognition and measurement of those expenses or the presentation thereof in the income statement.

Total revenues: 1Q24 vs 1Q23

Net interest income and other net income from financial instruments measured at fair value through profit or loss Total combined net interest income and other net income from financial instruments measured at fair value through profit or loss decreased by USD 310m to USD 3,751m, mainly driven by decreases in Global Wealth Management and the Investment Bank, partly offset by an increase in Personal & Corporate Banking.

Global Wealth Management decreased by USD 241m to USD 1,558m, largely due to lower net interest income, mainly driven by lower deposit margins, including the effects of shifts to lower-margin products, partly offset by higher rates and deposit volumes.

The Investment Bank decreased by USD 115m to USD 1,557m. Derivatives & Solutions decreased by USD 169m, driven by Rates, due to lower levels of both volatility and client activity. This was partly offset by a USD 48m increase in Global Banking, mainly from higher revenues in Leveraged Capital Markets.

Personal & Corporate Banking increased by USD 71m to USD 904m, largely due to higher net interest income, mainly driven by higher deposit margins, resulting from higher interest rates, partly offset by shifts to lower-margin deposit products.

• Refer to "Note 3 Net interest income" in the "Consolidated financial statements" section of this report for more information about net interest income

Net interest income and other net income from financial instruments measured at fair value through profit or loss

		For the quarter ended		% change from
USD m	31.3.24	31.12.231	31.3.231		4Q23	1Q23
Net interest income from financial instruments measured at amortized cost and fair value through other
comprehensive income	188	347	962	(46)	(80)
Net interest income from financial instruments measured at fair value through profit or loss and other	618	541	426	14	45
Other net income from financial instruments measured at fair value through profit or loss	2,945	2,458	2,673	20	10
Total	3,751	3,346	4,061	12	(8)
Global Wealth Management	1,558	1,440	1,799	8	(13)
of which: net interest income	1,204	1,153	1,488	4	(19)
of which: transaction-based income from foreign exchange and other intermediary activity 2	354	287	312	23	14
Personal & Corporate Banking	904	887	833	2	9
of which: net interest income	772	761	704	1	10
of which: transaction-based income from foreign exchange and other intermediary activity 2	132	126	129	5	3
Asset Management	(12)	(6)	(5)	99	120
Investment Bank3	1,557	990	1,672	57	(7)
Global Banking	123	109	75	13	65
Global Markets	1,434	879	1,597	63	(10)
Non-core and Legacy	18	(32)	18			4
Group Items	(275)	67	(255)			8

1 Comparative-period information has been restated for changes in business division perimeters, Group Treasury allocations and Non-core and Legacy cost allocations. Refer to "Note 2 Segment reporting" in the "Consolidated financial statements" section of this report for more information. Comparatives may additionally differ due to adjustments following organizational changes, restatements due to the retrospective adoption of new accounting standards or changes in accounting policies, and events after the reporting period. 2 Mainly includes spread-related income in connection with client-driven transactions, foreign- currency translation effects and income and expenses from precious metals, which are included in the income statement line Other net income from financial instruments measured at fair value through profit or loss. The amounts reported on this line are one component of Transaction-based income in the management discussion and analysis in the "Global Wealth Management" and "Personal & Corporate Banking" sections of this report. 3 Investment Bank information is provided at the business-line level rather than by financial statement reporting line, in order to reflect the underlying business activities, which is consistent with the structure of the management discussion and analysis in the "Investment Bank" section of this report.

Net fee and commission income

Net fee and commission income increased by USD 520m to USD 5,148m.

Portfolio management and related services and investment fund fees increased by USD 246m and USD 23m, respectively, driven by Global Wealth Management and Asset Management, respectively, mainly reflecting higher invested assets resulting from positive market performance.

Net brokerage fees increased by USD 124m to USD 956m, predominantly due to higher revenues in Global Wealth Management, reflecting higher levels of client activity, particularly in the Americas and Asia Pacific regions, as well as in Execution Services in the Investment Bank, due to increases in Cash Equities across all regions.

UBS AG first quarter 2024 report | UBS AG | UBS AG consolidated performance

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Underwriting fees increased by USD 75m to USD 224m, largely attributable to a USD 64m increase in debt underwriting fees in Global Banking in the Investment Bank.

M&A and corporate finance fees increased by USD 56m to USD 234m, mainly due to higher advisory fee revenues across Global Banking.

• Refer to "Note 4 Net fee and commission income" in the "Consolidated financial statements" section of this report for more information

Other income

Other income was USD 209m, compared with USD 155m in the prior-year quarter. The increase was largely due to a USD 51m increase in shared services costs charged to other subsidiaries of UBS Group AG, mainly related to secondments revenues received from Credit Suisse entities.

• Refer to "Note 5 Other income" in the "Consolidated financial statements" section of this report for more information

Credit loss expense / release: 1Q24 vs 1Q23

Total net credit loss expenses were USD 52m, compared with net credit loss expenses of USD 38m in the prior-year quarter, reflecting net credit loss expenses of USD 1m related to stage 1 and 2 positions and USD 51m related to stage 3 positions.

• Refer to "Note 8 Expected credit loss measurement" in the "Consolidated financial statements" section of this report for more information

Credit loss expense / (release)

	Global	Personal &
	Wealth	Corporate	Asset	Investment	Non-core and	Group
USD m	Management	Banking	Management	Bank	Legacy	Items	Total
For the quarter ended 31.3.24
Stages 1 and 2	2	(12)	0	10	0	1	1
Stage 3	7	22	0	22	0	0	51
Total credit loss expense / (release)	9	10	0	32	0	1	52
For the quarter ended 31.12.23
Stages 1 and 2	(7)	(7)	0	1	0	0	(14)
Stage 3	3	31	0	41	1	0	76
Total credit loss expense / (release)	(4)	24	0	42	1	0	62
For the quarter ended 31.3.23
Stages 1 and 2	15	15	0	(5)	0	0	26
Stage 3	0	0	0	12	0	0	12
Total credit loss expense / (release)	15	16	0	7	0	0	38

Operating expenses: 1Q24 vs 1Q23

Operating expenses

		For the quarter ended		% change from
USD m	31.3.24	31.12.23	31.3.23		4Q23	1Q23
Personnel expenses	4,161	3,958	3,898	5	7
of which: salaries and variable compensation	3,621	3,416	3,356	6	8
of which: variable compensation - financial advisors 1	1,267	1,176	1,111	8	14
General and administrative expenses	2,985	3,108	2,983	(4)	0
of which: net expenses for litigation, regulatory and similar matters	8	32	721	(75)	(99)
of which: other general and administrative expenses	2,977	3,076	2,262	(3)	32
Depreciation, amortization and impairment of non-financial assets	531	553	469	(4)	13
Total operating expenses	7,677	7,618	7,350	1	4

1 Consists of cash and deferred compensation awards and is based on compensable revenues and firm tenure using a formulaic approach. Also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements.

Personnel expenses

Personnel expenses increased by USD 263m to USD 4,161m and included integration-related expenses. Salaries and variable compensation increased by USD 265m to USD 3,621m, due to a USD 156m increase in financial advisor compensation (which reflected higher compensable revenues), as well as higher variable compensation, salary adjustments and foreign currency effects.

• Refer to "Note 6 Personnel expenses" in the "Consolidated financial statements" section of this report for more information

UBS AG first quarter 2024 report | UBS AG | UBS AG consolidated performance

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General and administrative expenses

General and administrative expenses increased by USD 2m to USD 2,985m, which included total integration-related expenses. Shared services costs charged by other subsidiaries of UBS Group AG increased by USD 548m, mainly reflecting USD 234m secondment costs for staff from Credit Suisse entities. Consulting, legal and audit fees increased by USD 92m, with such increase mainly related to an increase in integration-related expenses. These increases were largely offset due to the prior-year quarter including an expense for provisions of USD 665m related to the US RMBS litigation matter.

We believe that the industry continues to operate in an environment in which expenses associated with litigation, regulatory and similar matters will remain elevated for the foreseeable future, and we continue to be exposed to a number of significant claims and regulatory matters. The outcome of many of these matters, the timing of a resolution, and the potential effects of resolutions on our future business, financial results or financial condition are extremely difficult to predict.

• Refer to "Note 7 General and administrative expenses" in the "Consolidated financial statements" section of this report for more information
• Refer to "Note 15 Provisions and contingent liabilities" in the "Consolidated financial statements" section of this report for more information about litigation, regulatory and similar matters
• Refer to the "Regulatory and legal developments" and "Risk factors" sections of the UBS AG Annual Report 2023, available under "Annual reporting" atubs.com/investors, for more information about litigation, regulatory and similar matters on a UBS AG consolidated basis

Depreciation, amortization and impairment of non-financial assets

Depreciation, amortization and impairment of non-financial assets increased by USD 62m to USD 531m which included total integration-related expenses, mainly attributable to accelerated depreciation of right-of-use assets associated with real estate leases. Depreciation of internally developed software also increased, reflecting a higher level of capitalized costs, partly offset by lower non-integration-related accelerated depreciation of right-of-use assets associated with real estate leases.

Tax: 1Q24 vs 1Q23

UBS AG had a net income tax expense of USD 366m in the first quarter of 2024, representing an effective tax rate of 26.5%, compared with USD 445m in the prior-year quarter, representing an effective tax rate of 30.5%.

The net current tax expense was USD 438m, compared with USD 481m, and primarily related to the taxable profits of UBS Switzerland AG and other entities.

There was a net deferred tax benefit of USD 72m, compared with USD 37m in the prior-year quarter. This included an increase in deferred tax asset recognition of USD 122m in respect of UBS AG's US branch, which was partly offset by a net expense of USD 50m that mainly related to the amortization of deferred tax assets (DTAs) previously recognized in relation to tax losses carried forward and deductible temporary differences.

UBS AG's effective tax rate for the remaining nine months of 2024 may be higher than its structural rate of 23% if, following its merger with Credit Suisse AG, its net profit includes operating losses of certain entities, reflecting integration-related expenses and restructuring costs, that do not result in any tax benefits because they cannot be offset with profits of other group entities and do not result in any DTA recognition. However, its effective tax rate is expected to decrease toward the structural rate in subsequent years, as such losses decrease, and the amount of that impact will depend on the amount of those losses.

UBS AG first quarter 2024 report | UBS AG | UBS AG consolidated performance

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