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Stock impact report

UBS Group AG (UBS) Against Swiss Government's New $22B Capital Requirement [Yahoo! Finance]

UBS Group AG Registered Ordinary Shares (UBS) 
Company Research Source: Yahoo! Finance
The adjustment would be in response to the Swiss Federal Council publishing the Capital Adequacy Ordinance and submitting it to parliament. UBS Group AG (UBS) Against Swiss Government's New $22B Capital Requirement The ordinance is expected to come into effect early next year and will require higher capital deductions for assets subject to valuation uncertainty. In addition, they would impose a three-year amortization schedule for capitalized software. The new measures would eliminate about $4 billion of net CET1 capital and could reduce UBS Group's CET1 capital ratio by about 0.8%. The new requirement would require UBS Group to hold additional capital of about $20 billion. Combined with $2 billion in net CET1, the total incremental capital requirement will stand at about $22 billion. Consequently, UBS Group's de facto minimum CET1 capital ratio will be about 18.4% or 17.6% after accounting for all ordinance measures. The additional capital requirement would carry an annual cost Show less Read more
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