Business · Companies · 1 hr ago
Swiss committee weighs tougher capital rules for UBS
A Swiss parliamentary committee heard UBS chief Sergio Ermotti on Monday as it considers new capital rules for the bank.
The proposed law was drawn up after Credit Suisse collapsed in 2023 and would require large Swiss banks to hold more capital against foreign subsidiaries.
In practice, UBS is the only bank affected by the measure.
Finance Minister Karin Keller-Sutter, backed by Switzerland’s central bank and financial regulator, wants those subsidiaries covered by 100% hard equity; UBS has opposed that level and backed 50% hard equity, with up to 50% in other convertible bonds.
The upper house voted for 90% hard equity, with flexibility over the remaining 10%.
The committee will decide what to recommend to the National Council, and it is expected to state its position in November.
UBS Chief Executive Sergio Ermotti appeared before a Swiss parliamentary committee on Monday as lawmakers consider tighter capital rules for the bank’s foreign subsidiaries.
Finance Minister Karin Keller-Sutter supports requiring the subsidiaries to be backed by 100% hard equity, while UBS sought 50% and the Council of States voted for 90%.
The committee is expected to decide its proposals to the National Council in the coming days and weeks.
Analysts expect UBS’s net profit to rise 9.1% to $2.71 billion and revenue to increase 6.0% to $12.93 billion.
UBS shares have fallen about 14% from a high of around 45 francs in early September to about 38.50 francs, with continuing political debate cited as a main reason.
- Who
- UBS CEO Sergio Ermotti, Finance Minister Karin Keller-Sutter and members of the National Council’s Economic Affairs and Taxation Committee.
- What
- The committee heard views on proposed capital requirements for UBS’s foreign subsidiaries, amid expectations for the bank’s earnings.
- When
- Monday, October 26, 2026.
- Where
- Before the National Council’s Economic Affairs and Taxation Committee in Switzerland.
- Why
- The committee is considering proposals to increase the hard-equity backing required for foreign subsidiaries of major Swiss banks; the measure would effectively affect UBS alone.
UBS
Karin Keller-Sutter
Capital requirement
UBS
UBS sought a requirement that foreign subsidiaries be backed by 50% hard equity.
Karin Keller-Sutter
Keller-Sutter, with support from the Swiss National Bank and Finma, proposed 100% hard equity.
UBS gave a cautious outlook when it published its half-year results, citing the ongoing Middle East conflict and volatile energy prices.
UBS shares reached a high of around 45 francs per share.
The National Council’s committee heard UBS CEO Sergio Ermotti and Finance Minister Karin Keller-Sutter on the proposed capital rules.
The committee is due to decide on its proposals to the National Council.
- Analysts’ net profit estimate
- $2.71 billion, up 9.1%
- Analysts’ revenue estimate
- $12.93 billion, up 6.0%
- UBS’s proposed backing
- 50% hard equity
- Council of States’ vote
- 90% hard equity
- Keller-Sutter’s proposal
- 100% hard equity
- UBS share price change
- About 14% down from around 45 francs to around 38.50 francs
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What people are saying
healthy
excessive