UBS's New Capital Requirements Could Absorb Much of Credit Suisse Gains -- Market Talk

Dow Jones
Jun 05, 2025

0556 GMT - UBS Group's new capital requirements due to coming Swiss banking regulations could absorb much of its gains from winding down legacy businesses of former rival Credit Suisse, Morningstar's Johann Scholtz says in a comment. "We anticipate that the Swiss government will expand on previous proposals, potentially requiring UBS to fully capitalize its foreign subsidiaries, up from the current 60%. This move could force UBS to hold an additional [$20 billion-$25 billion] in capital," Scholtz says. While UBS is likely to save on costs and free up capital from winding down Credit Suisse's legacy businesses, the bulk of these gains could end up being absorbed by stricter regulatory demands, the analyst says. UBS shares are down 3.5% compared with a year ago. (adria.calatayud@wsj.com)

 

(END) Dow Jones Newswires

June 05, 2025 01:56 ET (05:56 GMT)

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