UBS Mergers and Acquisitions Presentation Deck
Effects of the loss protection agreement not included in F-4
The details will be set out in the Loss Protection Agreement between the Swiss
Confederation and UBS and, as these details are not yet agreed, no effect has been
given to the Loss Protection Agreement in this pro forma condensed combined
financial information.
Valuation of the Loss Protection Agreement is dependent on the definitive terms of
the Loss Protection Agreement and on completion of detailed valuations for the assets
in scope of the Loss Protection Agreement.
To the extent losses on the assets in scope of the Loss Protection Agreement are not
realized, there would be no cost to the Swiss government.
UBS
On 19 March 2023 the Swiss Confederation authorized a loss protection agreement (the
"Loss Protection Agreement”) in favor of UBS Group AG for CHF 9bn if losses incurred
by UBS Group AG on certain assets held by Credit Suisse entities exceeded CHF 5bn.
This is outlined in the Amendment to the Ordinance on Additional Liquidity Assistance
Loans and the Granting of Federal Default Guarantees for Liquidity Assistance Loans from
the Swiss National Bank to Systemically Important Banks published on 19 March 2023.
UBS and the Swiss Government will further review a profit and loss sharing agreement
for the case if losses exceed CHF 14bn.
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