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Expected credit loss measurement
 6 Months Ended
Jun. 30, 2023
Disclosure Of Provision Matrix [Line Items]  
Expected credit loss measurement
Note 8
 
Expected credit loss measurement
 
a) Credit loss expense / release
 
Total net credit loss expenses in the second
 
quarter of 2023 were USD
740
m, reflecting USD
644
m net credit loss
expenses related
 
to stage 1
 
and
 
2
 
positions, USD
77
m net
 
credit loss
 
expenses related
 
to stage 3
 
positions and
USD
19
m related to purchased credit-impaired (PCI)
 
positions.
 
Stage 1 and 2
 
net expenses
 
included: scenario-related
 
net releases
 
of USD
42
m for
 
UBS AG’s business
 
divisions; net
expenses of
 
USD
27
m from
 
model changes
 
for UBS AG’s
 
business divisions,
 
mainly in
 
Personal &
 
Corporate Banking
and
 
the
 
Investment Bank;
 
and
 
additional net
 
expenses of
 
USD
5
m
 
from
 
book
 
quality
 
and
 
size
 
changes, mainly
across
 
the
 
corporate
 
and
 
real
 
estate
 
lending
 
portfolios
 
of
 
Personal
 
&
 
Corporate
 
Banking
 
and
 
Global
 
Wealth
Management. In addition, USD
654
m net expenses
 
were recognized for
 
the initial recognition of
 
ECL allowances
and provisions for
 
purchased non-credit-impaired
 
Credit Suisse AG portfolios.
 
Recognition of expected
 
credit losses
is
 
required
 
by
 
IFRS
 
9
 
as
 
a
 
subsequent
 
measurement
 
adjustment
 
after
 
recognizing
 
on
 
the
 
acquisition
 
date
 
the
respective assets
 
and commitments
 
at fair
 
value, as
 
part of
 
the purchase
 
price allocation
 
under IFRS
 
3. The
 
purchased
non-credit-impaired Credit Suisse AG positions are classified
 
as stage 1 at initial recognition. Stage 2 positions
 
and
UBS
 
Group
 
ECL
 
will
 
increase,
 
ceteris
 
paribus,
 
as
 
and
 
when
 
credit
 
risk
 
of
 
transactions
 
significantly
 
deteriorates
compared to the acquisition
 
date of Credit Suisse
 
on 12 June
 
2023, at which date
 
respective exposures were fair
valued as part of the purchase price allocation.
Stage 3
 
net
 
credit
 
loss
 
expenses
 
were
 
USD
77
m,
 
driven
 
by
 
net
 
expenses
 
of
 
USD
21
m
 
in
 
Personal
 
&
 
Corporate
Banking, which were primarily due to a single commodity trade finance client (USD
11
m), as well as net expenses
on
 
various
 
corporate
 
lending
 
positions.
 
Credit
 
Suisse AG
 
contributed
 
USD
51
m
 
net
 
expenses,
 
related
 
to
counterparties that
 
defaulted after
 
the acquisition
 
date,
 
mainly driven
 
by one
 
real-estate-related client
 
in the
 
Capital
Release Unit
 
of
 
USD
44
m, as
 
well
 
as USD
19
m on
 
PCI positions
 
due
 
to remeasurements
 
of
 
positions that
 
were
already defaulted at the acquisition date.
 
b) Changes to ECL models, scenarios, scenario
 
weights and post-model adjustments
Scenarios and scenario weights
The expected
 
credit loss
 
(ECL) scenarios,
 
along with
 
their related
 
macroeconomic factors and
 
market data,
 
were
reviewed in light of
 
the economic and
 
political conditions prevailing
 
in the second
 
quarter of 2023 through
 
a series
of governance meetings, with input and feedback from
 
UBS Risk and Finance experts across the business divisions
and regions. ECLs
 
for Credit Suisse
 
AG positions were
 
calculated based
 
on Credit Suisse
 
AG’s models, including
 
the
same scenario and scenario weight inputs as
 
for UBS’s existing business activity.
 
The baseline scenario was updated with the latest macroeconomic forecasts as of 30 June 2023. The assumptions
on
 
a
 
calendar-year basis
 
are included
 
in
 
the table
 
below and
 
imply a
 
broadly unchanged
 
economic outlook
 
for
2023, in the
 
Eurozone and Switzerland, and
 
more optimistic projections for
 
the US. Compared
 
with the baseline
used in the
 
first quarter
 
of 2023, the
 
house price forecasts
 
for the US
 
and the Eurozone
 
in 2023 are
 
less pessimistic,
although the baseline is slightly more pessimistic
 
for Switzerland.
At the beginning of the second
 
quarter of 2023, UBS replaced the global crisis scenario applied
 
at year-end 2022
and at the
 
end of the
 
first quarter of
 
2023 with the
 
mild debt crisis
 
scenario. Recent
 
economic, market and
 
political
developments suggest
 
that the scenario
 
suite should
 
be rebalanced by
 
reintroducing a mild
 
downside scenario.
 
The
mild debt
 
crisis scenario
 
covers similar
 
risks, but
 
the assumptions
 
are milder
 
than the
 
global crisis
 
scenario. Therefore,
the scenario is
 
less severe.
 
It assumes
 
that political,
 
solvency and
 
liquidity concerns
 
cause a sell-off
 
of sovereign
 
debt
in
 
emerging
 
markets
 
and
 
the
 
peripheral
 
Eurozone.
 
The
 
global
 
economy
 
and
 
financial
 
markets
 
are
 
negatively
affected, and central banks are assumed to ease
 
their monetary policy.
The stagflationary
 
geopolitical crisis
 
scenario and
 
the asset
 
price inflation
 
scenario were
 
updated based
 
on the
 
latest
market
 
data,
 
but
 
the
 
assumptions
 
remain
 
broadly
 
unchanged.
 
Refer
 
to
 
the
 
table
 
below
 
for
 
the
 
scenarios
 
and
weights applied.
UBS kept scenario weights in
 
line with those applied in
 
the first quarter of
 
2023, with a
15
% weight assigned to
the mild debt crisis scenario instead of the
 
global crisis scenario, which it replaced.
UBS applied the same scenarios and scenario
 
weights for the acquired Credit Suisse
 
Group portfolios.
Post-model adjustments
Total
 
stage 1 and 2
 
allowances and provisions
 
amounted to USD
1,199
m as of
 
30 June 2023 and
 
included post-
model adjustments
 
for UBS
 
AG’s business
 
divisions of
 
USD
131
m (31 March
 
2023: USD
128
m), as
 
uncertainty levels
remained
 
high,
 
including
 
the
 
geopolitical
 
situation.
 
Allowances
 
and
 
provisions
 
related
 
to
 
the
 
Credit
 
Suisse AG
portfolio include post-model adjustments
 
of USD
102
m, mostly related to the further calibration of model
 
outputs
in certain segments with UBS’s model outputs.
 
c) ECL-relevant balance sheet and off-balance
 
sheet positions including ECL allowances
 
and provisions
The following tables
 
provide information
 
about financial
 
instruments and
 
certain non-financial
 
instruments that
 
are
subject
 
to
 
ECL
 
requirements.
 
For
 
amortized-cost
 
instruments,
 
the
 
carrying
 
amount
 
represents
 
the
 
maximum
exposure to credit risk, taking
 
into account the allowance for
 
credit losses. Financial assets measured at
 
fair value
through other comprehensive
 
income (FVOCI) are
 
also subject to ECL;
 
however, unlike amortized-cost
 
instruments,
the allowance
 
for credit
 
losses for
 
FVOCI instruments
 
does not
 
reduce the
 
carrying amount
 
of these financial
 
assets.
Instead, the
 
carrying amount
 
of financial
 
assets measured
 
at FVOCI
 
represents the
 
maximum exposure
 
to credit
 
risk.
In addition to recognized financial assets, certain off-balance sheet financial instruments and other credit lines are
also subject to ECL.
 
The maximum exposure to
 
credit risk for off-balance
 
sheet financial instruments is calculated
based on the maximum contractual amounts.
Loans and advances to customers of USD
651,770
m include USD
262,025
m from Credit Suisse AG.
Breakout: Loans and advances to customers
 
of Credit Suisse AG
Credit
 
Suisse AG
 
had
 
allowances and
 
provisions
 
for defaulted
 
positions
 
of
 
USD
1.1
bn
 
immediately prior
 
to
 
the
acquisition date. UBS
 
recognized these purchased
 
credit-impaired (PCI) positions
 
on its balance
 
sheet with their
 
fair
value as at
 
the acquisition date,
 
and as required by
 
IFRS, no additional
 
expected credit loss
 
allowances or provisions
were recognized for them on that date.
The table below
 
provides information about
 
the ECL gross
 
exposure and the ECL
 
coverage ratio for
 
UBS’s core loan
portfolios (i.e.,
Loans and
 
advances to
 
customers
and
 
Loans to
 
financial advisors
) and
 
relevant off-balance
 
sheet
exposures.
Cash and balances at
 
central banks
,
Loans and advances
 
to banks
,
Receivables from securities
 
financing
transactions
,
Cash
 
collateral
 
receivables
 
on
 
derivative
 
instruments
 
and
Financial
 
assets
 
measured
 
at
 
fair
 
value
through other comprehensive income
 
are not included in the table below, due to their lower sensitivity to
 
ECL.
ECL coverage ratios are calculated by dividing ECL
 
allowances and provisions by the gross carrying amount of the
related exposures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit loss expense / (release)
USD m
Stages 1 and 2
Stage 3
Purchased
 
credit-impaired
 
(PCI)
Total
For the quarter ended 30.6.23
Global Wealth Management
(4)
9
5
Personal & Corporate Banking
(11)
21
10
Asset Management
0
0
0
Investment Bank
5
(4)
1
Group Functions
0
0
0
Subtotal UBS
(10)
26
 
16
Wealth Management (Credit Suisse)
143
0
7
149
Swiss Bank (Credit Suisse)
217
7
0
224
Asset Management (Credit Suisse)
1
0
0
1
Investment Bank (Credit Suisse)
189
0
12
200
Capital Release Unit (Credit Suisse)
104
44
0
148
Corporate Center (Credit Suisse)
2
0
0
2
Subtotal Credit Suisse
654
51
19
724
1
Total
644
77
19
740
For the quarter ended 31.3.23
Global Wealth Management
15
0
15
Personal & Corporate Banking
15
0
16
Asset Management
0
0
0
Investment Bank
(5)
12
7
Group Functions
0
0
0
Total
26
12
38
For the quarter ended 30.6.22
Global Wealth Management
(8)
6
(3)
Personal & Corporate Banking
26
8
35
Asset Management
0
0
0
Investment Bank
(2)
(26)
(28)
Group Functions
0
2
2
Total
16
(9)
7
1 Includes credit loss expense of USD
101
m included into the segment reporting for Credit Suisse business divisions and Corporate Center (US GAAP,
 
adjusted), and USD
623
m credit loss expense to reconcile Credit
Suisse business divisions and Corporate Center to IFRS. Please refer also to Note 3.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Comparison of shock factors
Baseline
Key parameters
2022
2023
2024
Real GDP growth (annual percentage change)
US
 
2.1
1.4
0.1
Eurozone
3.5
0.8
1.0
Switzerland
2.1
0.9
1.3
Unemployment rate (%, annual average)
US
 
3.6
3.7
5.1
Eurozone
6.7
6.7
6.9
Switzerland
2.2
2.2
2.5
Fixed income: 10-year government bonds (%, Q4)
USD
3.9
3.7
3.6
EUR
2.6
2.3
2.2
CHF
1.6
1.0
0.9
Real estate (annual percentage change, Q4)
 
US
 
7.4
(1.9)
2.1
Eurozone
2.8
(1.2)
1.8
Switzerland
3.9
(0.5)
(1.0)
Economic scenarios and weights applied
Assigned weights in %
ECL scenario
30.6.23
31.3.23
30.6.22
Asset price inflation
0.0
0.0
0.0
Baseline
60.0
60.0
55.0
Severe Russia–Ukraine conflict scenario
–
–
25.0
Mild debt crisis
 
15.0
–
–
Stagflationary geopolitical crisis
25.0
25.0
–
Global crisis
 
–
15.0
20.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
USD m
30.6.23
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Cash and balances at central banks
261,587
261,475
32
0
79
(10)
0
(10)
0
0
Loans and advances to banks
24,392
24,208
157
0
27
(11)
(10)
(1)
0
0
Receivables from securities financing transactions measured at
amortized cost
86,538
86,538
0
0
0
(1)
(1)
0
0
0
Cash collateral receivables on derivative instruments
54,314
54,314
0
0
0
0
0
0
0
0
Loans and advances to customers
651,770
630,086
17,204
1,850
2,630
(1,369)
(613)
(173)
(556)
(28)
of which: Private clients with mortgages
255,322
244,894
9,358
783
287
(173)
(61)
(87)
(23)
(2)
of which: Real estate financing
92,890
88,669
4,088
10
122
(63)
(41)
(23)
0
0
of which: Large corporate clients
32,162
28,883
1,292
387
1,601
(417)
(207)
(29)
(157)
(24)
of which: SME clients
29,595
27,649
1,293
436
218
(314)
(91)
(21)
(203)
0
of which: Lombard
168,713
168,596
0
42
75
(32)
(15)
0
(17)
0
of which: Credit cards
1,939
1,502
403
34
0
(39)
(8)
(11)
(21)
0
of which: Commodity trade finance
4,950
4,917
0
15
19
(124)
(20)
0
(104)
0
of which: Ship / aircraft financing
9,478
9,234
166
22
56
(69)
(67)
(2)
0
0
of which: Consumer financing
3,140
3,056
0
0
84
(30)
(30)
0
0
0
Other financial assets measured at amortized cost
64,928
64,364
377
153
35
(109)
(37)
(7)
(62)
(3)
of which: Loans to financial advisors
2,588
2,287
174
126
0
(55)
(6)
(2)
(47)
0
Total financial assets measured at amortized cost
1,143,528
1,120,985
17,770
2,003
2,770
(1,501)
(662)
(190)
(618)
(31)
Financial assets measured at fair value through other comprehensive
income
2,217
2,217
0
0
0
0
0
0
0
0
Total on-balance sheet financial assets in scope of ECL requirements
1,145,746
1,123,203
17,770
2,003
2,770
(1,501)
(662)
(190)
(618)
(31)
of which: Credit Suisse
2
431,559
428,684
0
104
2,770
(540)
(457)
0
(52)
(31)
Total exposure
ECL provisions
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Guarantees
38,463
37,345
921
118
79
(66)
(40)
(7)
(17)
(1)
of which: Large corporate clients
8,358
7,553
690
79
36
(19)
(16)
(2)
0
0
of which: SME clients
4,170
3,928
167
38
37
(20)
(10)
(1)
(9)
2
of which: Financial intermediaries and hedge funds
 
12,874
12,859
15
0
0
(11)
(8)
(3)
0
0
of which: Lombard
4,752
4,752
0
1
0
(1)
0
0
(1)
0
of which: Commodity trade finance
2,200
2,200
0
0
0
(1)
(1)
0
0
0
Irrevocable loan commitments
124,281
121,789
2,076
78
338
(225)
(186)
(38)
(2)
0
of which: Large corporate clients
77,160
75,044
1,731
52
333
(198)
(165)
(31)
(2)
0
Forward starting reverse repurchase and securities borrowing
agreements
4,972
4,972
0
0
0
0
0
0
0
0
Unconditionally revocable loan commitments
168,556
166,754
1,739
63
0
(74)
(65)
(9)
0
0
of which: Real estate financing
17,107
16,850
258
0
0
(12)
(12)
0
0
0
of which: Large corporate clients
4,790
4,624
158
7
0
(6)
(3)
(3)
0
0
of which: SME clients
24,601
24,381
179
40
0
(42)
(39)
(3)
0
0
of which: Lombard
82,491
82,491
0
1
0
0
0
0
0
0
of which: Credit cards
9,762
9,274
484
4
0
(7)
(6)
(2)
0
0
Irrevocable committed prolongation of existing loans
4,362
4,353
7
2
0
(3)
(2)
0
0
0
Total off-balance sheet financial instruments and other credit lines
340,634
335,213
4,743
261
417
(367)
(293)
(54)
(19)
(1)
Total allowances and provisions
(1,868)
(955)
(244)
(637)
(32)
of which: Credit Suisse
2
225,021
224,604
0
0
417
(731)
(648)
0
(52)
(32)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL
 
allowances.
 
2
 
Refer to Note 2 for more information about the acquisition of
Credit Suisse Group.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
USD m
31.3.23
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
144,183
144,144
39
0
(12)
0
(12)
0
Loans and advances to banks
14,901
14,857
45
0
(6)
(5)
0
0
Receivables from securities financing transactions
60,010
60,010
0
0
(2)
(2)
0
0
Cash collateral receivables on derivative instruments
32,726
32,726
0
0
0
0
0
0
Loans and advances to customers
390,130
371,966
16,573
1,591
(804)
(152)
(180)
(472)
of which: Private clients with mortgages
159,409
149,701
8,999
709
(171)
(43)
(103)
(25)
of which: Real estate financing
48,672
45,159
3,504
8
(42)
(18)
(24)
0
of which: Large corporate clients
12,943
11,216
1,408
320
(139)
(20)
(16)
(102)
of which: SME clients
13,610
11,781
1,437
392
(243)
(29)
(25)
(189)
of which: Lombard
128,960
128,903
0
57
(26)
(9)
0
(17)
of which: Credit cards
1,831
1,418
381
32
(37)
(8)
(10)
(20)
of which: Commodity trade finance
3,053
3,022
20
10
(96)
(5)
0
(91)
Other financial assets measured at amortized cost
49,179
48,661
372
146
(84)
(17)
(6)
(61)
of which: Loans to financial advisors
2,571
2,323
121
127
(54)
(6)
(2)
(46)
Total financial assets measured at amortized cost
691,130
672,365
17,028
1,737
(908)
(176)
(198)
(534)
Financial assets measured at fair value through other comprehensive income
2,241
2,241
0
0
0
0
0
0
Total on-balance sheet financial assets in scope of ECL requirements
693,370
674,606
17,028
1,737
(908)
(176)
(198)
(534)
Total exposure
ECL provisions
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Guarantees
22,670
21,670
887
113
(54)
(13)
(8)
(33)
of which: Large corporate clients
3,476
2,733
668
75
(19)
(2)
(3)
(14)
of which: SME clients
1,368
1,197
133
38
(11)
(1)
(1)
(9)
of which: Financial intermediaries and hedge funds
 
13,076
13,037
38
0
(11)
(8)
(4)
0
of which: Lombard
2,171
2,170
0
1
(1)
0
0
(1)
of which: Commodity trade finance
1,815
1,815
0
0
(1)
(1)
0
0
Irrevocable loan commitments
39,775
37,261
2,400
114
(113)
(57)
(56)
0
of which: Large corporate clients
23,294
21,263
1,948
83
(95)
(47)
(49)
0
Forward starting reverse repurchase and securities borrowing agreements
4,748
4,748
0
0
0
0
0
0
Unconditionally revocable loan commitments
41,071
39,307
1,724
40
(44)
(36)
(8)
0
of which: Real estate financing
8,226
8,037
188
0
(6)
(6)
0
0
of which: Large corporate clients
4,496
4,284
205
7
(5)
(3)
(2)
0
of which: SME clients
4,898
4,656
214
28
(21)
(18)
(3)
0
of which: Lombard
8,166
8,165
0
1
0
0
0
0
of which: Credit cards
9,567
9,078
486
3
(7)
(5)
(2)
0
of which: Commodity trade finance
370
370
0
0
0
0
0
0
Irrevocable committed prolongation of existing loans
4,161
4,126
33
2
(3)
(3)
0
0
Total off-balance sheet financial instruments and other credit lines
112,425
107,112
5,044
269
(214)
(108)
(72)
(33)
Total allowances and provisions
(1,121)
(284)
(271)
(567)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective
 
ECL allowances.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
USD m
31.12.22
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
169,445
169,402
44
0
(12)
0
(12)
0
Loans and advances to banks
14,792
14,792
1
0
(6)
(5)
(1)
0
Receivables from securities financing transactions
67,814
67,814
0
0
(2)
(2)
0
0
Cash collateral receivables on derivative instruments
35,032
35,032
0
0
0
0
0
0
Loans and advances to customers
387,220
370,095
15,587
1,538
(783)
(129)
(180)
(474)
of which: Private clients with mortgages
156,930
147,651
8,579
699
(161)
(27)
(107)
(28)
of which: Real estate financing
46,470
43,112
3,349
9
(41)
(17)
(23)
0
of which: Large corporate clients
12,226
10,733
1,189
303
(130)
(24)
(14)
(92)
of which: SME clients
13,903
12,211
1,342
351
(251)
(26)
(22)
(203)
of which: Lombard
132,287
132,196
0
91
(26)
(9)
0
(17)
of which: Credit cards
1,834
1,420
382
31
(36)
(7)
(10)
(19)
of which: Commodity trade finance
3,272
3,261
0
11
(96)
(6)
0
(90)
Other financial assets measured at amortized cost
2
53,264
52,704
413
147
(86)
(17)
(6)
(63)
of which: Loans to financial advisors
2,611
2,357
128
126
(59)
(7)
(2)
(51)
Total financial assets measured at amortized cost
727,568
709,839
16,044
1,685
(889)
(154)
(199)
(537)
Financial assets measured at fair value through other comprehensive income
2
2,239
2,239
0
0
0
0
0
0
Total on-balance sheet financial assets in scope of ECL requirements
729,807
712,078
16,044
1,685
(889)
(154)
(199)
(537)
Total exposure
ECL provisions
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Guarantees
22,167
19,805
2,254
108
(48)
(13)
(9)
(26)
of which: Large corporate clients
3,663
2,883
721
58
(26)
(2)
(3)
(21)
of which: SME clients
1,337
1,124
164
49
(5)
(1)
(1)
(3)
of which: Financial intermediaries and hedge funds
 
11,833
10,513
1,320
0
(12)
(8)
(4)
0
of which: Lombard
2,376
2,376
0
1
(1)
0
0
(1)
of which: Commodity trade finance
2,121
2,121
0
0
(1)
(1)
0
0
Irrevocable loan commitments
39,996
37,531
2,341
124
(111)
(59)
(52)
0
of which: Large corporate clients
23,611
21,488
2,024
99
(93)
(49)
(45)
0
Forward starting reverse repurchase and securities borrowing agreements
3,801
3,801
0
0
0
0
0
0
Unconditionally revocable loan commitments
41,390
39,521
1,833
36
(40)
(32)
(8)
0
of which: Real estate financing
8,711
8,528
183
0
(6)
(6)
0
0
of which: Large corporate clients
4,578
4,304
268
5
(4)
(1)
(2)
0
of which: SME clients
4,723
4,442
256
26
(19)
(16)
(3)
0
of which: Lombard
7,855
7,854
0
1
0
0
0
0
of which: Credit cards
9,390
8,900
487
3
(7)
(5)
(2)
0
of which: Commodity trade finance
327
327
0
0
0
0
0
0
Irrevocable committed prolongation of existing loans
4,696
4,600
94
2
(2)
(2)
0
0
Total off-balance sheet financial instruments and other credit lines
112,050
105,258
6,522
270
(201)
(106)
(69)
(26)
Total allowances and provisions
(1,091)
(259)
(267)
(564)
1 The carrying amount of financial assets
 
measured at amortized cost represents the total gross exposure
 
net of the respective ECL allowances.
 
2 Effective 1 April 2022, a portfolio of assets previously
 
classified as
Financial assets measured at fair value through other comprehensive income was reclassified to Other financial assets measured
 
at amortized cost. Refer to Note 10a for more information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
USD m
30.6.23
Carrying amount
1
ECL allowances
Loans and advances to customers
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Loans and advances to customers
262,025
259,291
0
104
2,630
(511)
(431)
0
(52)
(28)
of which: Private clients with mortgages
91,763
91,450
0
25
287
(18)
(17)
0
0
(2)
of which: Real estate financing
42,835
42,710
0
4
122
(20)
(20)
0
0
0
of which: Large corporate clients
18,718
17,090
0
27
1,601
(239)
(170)
0
(44)
(24)
of which: SME clients
17,114
16,873
0
23
218
(59)
(59)
0
0
0
of which: Lombard
44,202
44,127
0
0
75
(6)
(6)
0
0
0
of which: Commodity trade finance
2,757
2,738
0
0
19
(14)
(14)
0
0
0
of which: Financial intermediaries and hedge funds
 
18,910
18,904
0
5
2
(34)
(34)
0
0
0
of which: Sovereigns and public non-profit organizations
1,153
1,152
0
0
1
(4)
(4)
0
0
0
of which: Ship / aircraft financing
8,033
7,977
0
0
56
(64)
(64)
0
0
0
of which: Consumer financing
3,140
3,056
0
0
84
(30)
(30)
0
0
0
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective
 
ECL allowances.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coverage ratios for core loan portfolio
30.6.23
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
255,495
244,955
9,445
806
289
7
2
92
6
291
53
Real estate financing
92,953
88,710
4,111
11
122
7
5
55
7
71
0
Total real estate lending
348,448
333,665
13,556
817
410
7
3
80
6
288
36
Large corporate clients
32,579
29,090
1,320
544
1,625
128
71
217
78
2,894
148
SME clients
29,909
27,740
1,313
639
217
105
33
157
38
3,180
0
Total corporate lending
62,488
56,830
2,634
1,183
1,841
117
52
187
58
3,049
126
Lombard
168,745
168,611
0
59
75
2
1
0
1
2,872
24
Credit cards
1,978
1,510
413
55
0
199
53
255
97
3,821
0
Commodity trade finance
5,074
4,937
0
118
19
244
41
351
41
8,769
5
Ship / aircraft financing
9,542
9,298
166
22
56
72
72
111
73
0
1
Consumer financing
3,170
3,086
0
0
84
96
98
0
98
222
32
Other loans and advances to customers
55,139
54,019
773
174
173
21
14
47
15
1,740
156
Loans to financial advisors
2,643
2,293
177
173
0
208
24
140
33
2,707
0
Total other lending
246,291
243,754
1,529
602
406
19
9
121
10
3,636
78
Total
1
657,227
634,249
17,719
2,602
2,658
22
10
99
12
2,318
105
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
9,284
8,950
324
11
0
4
3
22
4
60
0
Real estate financing
18,031
17,751
280
0
0
7
7
0
7
0
0
Total real estate lending
27,315
26,701
603
11
0
6
6
0
6
60
0
Large corporate clients
90,393
87,307
2,580
138
369
25
21
141
25
132
5
SME clients
32,494
31,955
400
95
43
23
18
257
21
994
0
Total corporate lending
122,887
119,262
2,980
233
412
24
20
156
24
482
0
Lombard
91,235
91,234
0
1
0
0
0
0
0
6,718
0
Credit cards
9,763
9,274
484
4
0
7
6
37
8
0
0
Commodity trade finance
5,833
5,833
0
0
0
6
6
0
6
0
0
Ship / aircraft financing
1,731
1,731
0
0
0
4
3
0
4
0
0
Consumer financing
301
301
0
0
0
34
34
0
34
0
0
Financial intermediaries and hedge funds
46,786
46,406
380
0
0
3
3
90
3
0
0
Other off-balance sheet commitments
29,854
29,541
296
11
6
8
4
95
5
6,408
4,244
Total other lending
185,502
184,320
1,160
17
6
3
2
71
2
4,774
4,215
Total
2
335,704
330,283
4,743
261
417
11
9
114
10
737
22
Total on- and off-balance sheet
3
992,931
964,532
22,462
2,862
3,075
18
9
103
12
2,173
94
1 Includes Loans and advances to customers and Loans to financial advisors which are presented on the balance sheet line Other
 
financial assets measured at amortized cost.
 
2 Excludes Forward starting reverse
repurchase and securities borrowing agreements.
 
3 Includes on-balance-sheet exposure, gross and off-balance-sheet exposure (notional) and the related
 
ECL coverage ratio (bps).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coverage ratios for core loan portfolio
31.3.23
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
159,580
149,744
9,102
734
11
3
113
9
344
Real estate financing
48,714
45,177
3,529
8
9
4
69
9
22
Total real estate lending
208,294
194,921
12,631
742
10
3
101
9
341
Large corporate clients
13,082
11,236
1,424
422
106
18
115
29
2,424
SME clients
13,853
11,811
1,461
581
175
25
168
41
3,253
Total corporate lending
26,936
23,047
2,886
1,003
142
22
142
35
2,904
Lombard
128,985
128,912
0
74
2
1
0
1
2,286
Credit cards
1,868
1,426
391
52
201
56
255
99
3,793
Commodity trade finance
3,149
3,028
20
101
305
18
11
17
9,001
Other loans and advances to customers
21,702
20,785
825
92
23
9
24
10
3,117
Loans to financial advisors
2,626
2,329
123
174
206
26
145
32
2,659
Total other lending
158,330
156,479
1,360
492
17
3
101
4
4,109
Total
1
393,560
374,447
16,876
2,237
22
4
108
9
2,319
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
6,377
6,163
212
3
6
5
28
6
340
Real estate financing
9,298
9,101
197
0
7
8
0
7
0
Total real estate lending
15,675
15,263
409
3
6
7
0
6
340
Large corporate clients
31,375
28,390
2,821
165
38
18
190
34
830
SME clients
7,674
7,124
470
80
55
30
245
44
1,114
Total corporate lending
39,049
35,514
3,290
245
41
21
198
36
923
Lombard
12,456
12,455
0
1
1
1
0
1
0
Credit cards
9,567
9,078
486
3
8
6
36
8
0
Commodity trade finance
2,187
2,187
0
0
4
4
0
4
0
Financial intermediaries and hedge funds
17,260
16,781
479
0
8
5
80
8
0
Other off-balance sheet commitments
11,483
11,086
380
17
18
7
66
9
0
Total other lending
52,953
51,587
1,345
22
8
5
60
6
0
Total
2
107,677
102,364
5,044
269
20
11
143
17
1,232
Total on- and off-balance sheet
3
501,237
476,811
21,920
2,506
21
6
116
10
2,202
1 Includes Loans and advances
 
to customers and Loans
 
to financial advisors which
 
are presented on the
 
balance sheet line Other
 
financial assets measured at
 
amortized cost.
 
2 Excludes Forward
 
starting reverse
repurchase and securities borrowing agreements.
 
3 Includes on-balance-sheet exposure, gross and off-balance-sheet exposure (notional) and the related
 
ECL coverage ratio (bps).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coverage ratios for core loan portfolio
31.12.22
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
157,091
147,678
8,686
727
10
2
123
9
381
Real estate financing
46,511
43,129
3,372
9
9
4
70
9
232
Total real estate lending
203,602
190,807
12,059
736
10
2
108
9
379
Large corporate clients
12,356
10,757
1,204
395
105
22
120
32
2,325
SME clients
14,154
12,237
1,364
553
177
22
161
36
3,664
Total corporate lending
26,510
22,994
2,567
949
144
22
142
34
3,106
Lombard
132,313
132,205
0
108
2
1
0
1
1,580
Credit cards
1,869
1,427
393
50
190
46
256
91
3,779
Commodity trade finance
3,367
3,266
0
101
285
18
0
18
8,901
Other loans and advances to customers
20,342
19,525
748
68
21
7
38
8
3,769
Loans to financial advisors
2,670
2,364
130
176
221
28
124
33
2,870
Total other lending
160,561
158,787
1,270
503
16
3
114
4
4,016
Total
1
390,672
372,588
15,896
2,188
22
4
114
8
2,398
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
6,535
6,296
236
3
5
4
18
4
1,183
Real estate financing
10,054
9,779
275
0
6
7
0
6
0
Total real estate lending
16,589
16,075
511
3
6
6
2
6
1,288
Large corporate clients
32,126
28,950
3,013
163
38
18
165
32
1,263
SME clients
7,122
6,525
499
98
47
30
214
43
304
Total corporate lending
39,247
35,475
3,513
260
40
20
172
34
903
Lombard
12,919
12,918
0
1
2
1
0
1
0
Credit cards
9,390
8,900
487
3
7
5
36
7
0
Commodity trade finance
2,459
2,459
0
0
3
3
0
3
0
Financial intermediaries and hedge funds
15,841
14,177
1,664
0
9
7
25
9
0
Other off-balance sheet commitments
11,803
11,454
346
3
11
8
68
9
0
Total other lending
52,412
49,907
2,498
7
7
5
33
6
0
Total
2
108,249
101,457
6,522
270
19
10
106
16
980
Total on- and off-balance sheet
3
498,921
474,045
22,418
2,458
21
5
112
10
2,242
1 Includes Loans and advances
 
to customers and Loans to
 
financial advisors, which are
 
presented on the balance sheet
 
line Other financial assets
 
measured at amortized cost.
 
2 Excludes Forward starting
 
reverse
repurchase and securities borrowing agreements.
 
3 Includes on-balance-sheet exposure, gross and off-balance-sheet exposure (notional) and the related
 
ECL coverage ratio (bps).