Report published September 23, 2026

UBS Group: Council of States in Favour of 90% CET1 Backing for Foreign Subsidiaries

Zürcher Kantonalbank · September 23, 2026

The Swiss Council of States voted to require 90% CET1 capital backing for foreign subsidiaries, rejecting a lighter 50/50 CET1/AT1 proposal. ZKB maintains a Market Perform rating, viewing the valuation impact as marginal (~CHF 1/share) and noting the legislative process remains unresolved.

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Finvaulta summarizes Zürcher Kantonalbank's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.

Key Takeaways

1.The Swiss Council of States voted in favour of requiring 90% CET1 backing for foreign subsidiaries, diverging slightly from the Federal Council's proposed 100% backing.
2.The political outcome remains fluid and delayed; deliberations in the National Council may occur during the winter session or slip into 2027.
3.The 90% backing requirement offers marginal valuation upside over 100%, equating to roughly CHF 1 per share (USD 4 bn less CET1 capital).

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Report data

Ratios (in CHF) — as of September 22, 2026.

Metric	Estimate	Context
Proposed CET1 backing for foreign subsidiaries	90%	Voted by the Council of States
Additional parent bank capital requirement under 90% backing	16 USD bn	Estimate by UBS of additional capital parent bank would need to hold
Capital reduction of 90% vs 100% CET1 proposal	4 USD bn	Pro forma difference in CET1 capital requirements between 90% and 100% proposals
Capital reduction per share of 90% vs 100% CET1 proposal	1 CHF	Approximate valuation relief per share of 90% vs 100% proposal
Share Price	40.33 CHF	Closing share price prior to publication