UBS Group AG

Leading franchises in global wealth management and Swiss retail and commercial banking. Clear strategy focused on above-average returns from capital-efficient, asset-gathering businesses. Strong core capital metrics relative to global peers. Material exposure to non-financial risks including unresolved litigation cases. Potential earnings volatility through a market cycle. The stable outlook on UBS Group AG (UBS) and its operating entities indicates S&P Global Ratings' view that UBS' credit fundamentals will remain robust. We consider its business model is well placed to meet industry and economic developments and maintain its franchise strength. We expect its balance sheet will remain sound, with our risk-adjusted capital (RAC) ratio likely to rise into the 13.0%-13.5% range at year-end 2021. Ongoing litigation cases add some uncertainty to

...Outlook: Stable The stable outlook on UBS Group AG (UBS) and its operating entities indicates S&P Global Ratings' view that UBS' credit fundamentals will remain robust. We consider its business model is well placed to meet industry and economic developments and maintain its franchise strength. We expect its balance sheet will remain sound, with our risk-adjusted capital (RAC) ratio likely to rise into the 13.0%-13.5% range at year-end 2021. Ongoing litigation cases add some uncertainty to our projections, and it may be several more years before they are definitively resolved. Nevertheless, we think that UBS has sufficient flexibility to maintain a strong capital position consistent with the current ratings. We do not exclude the possibility of a positive rating action but it is unlikely over our 12-24 month outlook horizon. This is because we consider that the current 'a' unsupported group credit profile (UGCP) already recognizes UBS as one of the most creditworthy commercial banks globally...

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