Swiss Parliament Upper House Votes for 90% CET1 Backing for Foreign Subsidiaries: Goldman Sachs Equity Research on UBS

Key Takeaways

• 1.The Swiss upper house voted to require UBS to back 90% of the value of foreign subsidiaries with CET1 capital, a more onerous outcome than previously discussed compromises allowing 50% AT1 backing.
• 2.The 90% CET1 backing requirement implies a c.$17bn increase in regulatory capital requirements and an estimated CET1 shortfall of c.$7bn at UBS parent based on 2Q26 capital levels, rising to c.$9bn including ordinance measures.
• 3.The legislative process is far from complete as the bill moves to the lower house, with a final ruling unlikely before next year and the possibility of a public plebiscite.

Table of Contents

• Key Data
• GS Forecast
• GS Factor Profile
• Ratios & Valuation
• Growth & Margins (%)
• Price Performance
• Income Statement ($ mn)
• Balance Sheet ($ mn)
• Valuation and risks

Report data

Exhibit 1: 90% CET1 backing implies a c.$7bn shortfall on 2Q26 data, increasing to c.$9bn including ordinance changes. Potential mitigation measures include further upstreaming, although we note this is already included in UBS' plans — as of September 22, 2026.