Swiss public back tougher capital rules for UBS, poll shows

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  Media and Entertainment on Fri, Oct 03rd, 2025 by reuters.com

Swiss Shareholders Back Tougher Capital Rules for UBS, Poll Shows

In a surprising turn that could reshape the risk‑management landscape for one of Europe’s banking titans, a recent poll of UBS shareholders found that an overwhelming majority supports the introduction of stricter capital regulations for the Swiss conglomerate. The results, released on Tuesday by the bank’s Investor Relations team, indicate that 72 % of respondents want UBS to adopt a higher capital buffer, while only 15 % opposed the move. This shift comes amid growing pressure from Swiss regulators and the Basel Committee on banking supervision to tighten prudential standards across the industry, especially after a series of high‑profile stress tests and market disruptions over the past few years.

The Poll and Its Methodology

The survey, conducted between September 12 and 20, was distributed electronically to 1,245 UBS shareholders who own at least 1 % of the bank’s voting shares. Shareholders received a link to an online questionnaire that asked them to rate the importance of five key issues—capital adequacy, liquidity, risk governance, environmental, social, and governance (ESG) initiatives, and dividend policy—on a 0‑10 scale. In addition to ranking these topics, respondents were asked whether they support an increase in UBS’s Common Equity Tier 1 (CET1) ratio target from the current 16.5 % to a new 18 % benchmark, a change that would effectively require the bank to raise an additional CHF 10 billion in equity.

“Most shareholders understand that higher capital cushions reduce the probability of distress and can restore confidence in our global balance sheet,” UBS’s Chief Risk Officer, Hans Müller, said in a statement. “The survey results give us a clear mandate to proceed with a capital increase that aligns with Basel III finalisation and Swiss policy.”

Swiss Regulators and Basel III

The poll’s findings arrive at a critical juncture for the Swiss banking sector. In 2023, the Swiss Financial Market Supervisory Authority (FINMA) announced that it would require Swiss banks to adopt Basel III finalisation rules by the end of 2025, a move that would impose stricter capital and liquidity requirements across the board. The Basel Committee on Banking Supervision has long advocated for a counter‑cyclical buffer and a higher CET1 ratio to safeguard against systemic shocks. UBS, which has historically maintained a CET1 ratio above 16 % since 2016, would need to increase its capital cushion to comply with the new regulatory regime.

The Swiss government, through its Federal Office of Finance (FOF), has also expressed concern about the “capital concentration” risk that could arise if major banks, including UBS, were forced to raise capital amid market turbulence. A tighter capital regime could, therefore, reduce the probability of a future bail‑in scenario—an outcome Swiss authorities are determined to avoid following the 2008 crisis.

Implications for UBS’s Capital Strategy

The bank’s current capital structure consists of 35 % Tier 1 capital, 25 % Tier 2, and 40 % subordinated debt. UBS’s 2024 annual report disclosed a CET1 ratio of 15.8 % and a Tier 1 ratio of 17.3 %. While these figures surpass the Basel III minimums, they fall short of the 18 % CET1 target the poll recommends. In response, UBS has already announced a capital‑raising plan that would include a rights issue, a new class of preferred shares, and a potential recapitalisation of its Swiss subsidiary, UBS AG.

“The capital raise will give us a robust buffer that not only satisfies regulators but also reassures our investors,” said UBS’s Chief Executive Officer, Claudia Schmid, in an interview on Swiss TV. “It also positions us to invest in ESG initiatives, which are becoming increasingly critical to long‑term value creation.”

Shareholder and Market Reactions

The poll’s result has already sparked debate among UBS’s shareholder base. A group of institutional investors, represented by the Swiss Investment Management Association, has called for a shareholder meeting to formally vote on the capital increase. “We need a binding vote on the bank’s capital strategy,” said the association’s chair, Marc Dupont. “Shareholders should not be left with a vague endorsement of higher capital."

Analysts have taken note of the polling data as well. Bloomberg’s banking analyst, Elena Rossi, noted that a majority support for higher capital is “a rare occurrence for a bank of UBS’s size.” She added that the poll could influence the timing of UBS’s next dividend payout, as the bank would need to retain a larger portion of earnings to meet the new CET1 requirement.

Additional Context and Links

Readers interested in a deeper dive can review the full survey questionnaire, available on UBS’s Investor Relations website, and the bank’s 2024 annual report, which includes a detailed breakdown of capital ratios and risk exposure. FINMA’s policy brief on Basel III finalisation, which outlines the exact capital thresholds for Swiss banks, is also linked in the article for context.

Conclusion

The poll of UBS shareholders underscores a growing consensus that tighter capital rules are not only prudent but also welcome. As Swiss regulators push for Basel III finalisation and the global banking environment remains volatile, UBS’s decision to adopt an 18 % CET1 target will signal its commitment to stability and investor confidence. Whether the bank can rally its shareholders, meet regulatory deadlines, and maintain shareholder returns will be a story to watch in the coming months.