22
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, terrorist activity and conflicts in the Middle
East, as well as the continuing
Russia–
Ukraine war, may have significant impacts on
global markets, exacerbate
global inflationary pressures, and slow
global growth. 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
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
our
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 our
performance and ability
to
achieve our 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 increasing
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 our 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 our 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 our
reputation and
the additional
consequences
that this
may have
on our
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. Our
business and
financial performance
could be
affected by
other factors identified
in our 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.
