UBS Group AG is weighing strategic options that could include relocating its headquarters outside Switzerland, according to Zacks Investment Research, as the bank braces for significantly tighter capital rules imposed by Swiss authorities.
On Sept. 23, 2026, the Council of States approved a proposal requiring systemically important banks to hold Common Equity Tier 1 (CET1) capital equal to 90% of their investments in foreign subsidiaries. Under existing rules, Swiss banks have been required to provide capital backing for only about 60% of foreign subsidiary investments. The Federal Council had proposed raising that figure to 100%, which it estimated in April 2026 would require UBS to hold approximately $20 billion in additional CET1 capital.
The compromise 90% requirement still represents a substantial increase. Zacks estimated that UBS would need around $16 billion in additional CET1 capital under the new rule. That figure adds to nearly $15 billion in incremental CET1 capital already required following UBS's acquisition of rival Credit Suisse, as well as about $2 billion in additional capital stemming from other regulatory changes — bringing UBS's total incremental CET1 requirement to approximately $33 billion. The estimated annual cost of that cumulative requirement is roughly $2.5 billion.
To offset some of the capital burden, UBS expects to release more than $6 billion by the end of 2026 through the wind-down of non-core and legacy assets. The bank has been consolidating its operations since completing the parent-bank merger with Credit Suisse in May 2024 and the Swiss-bank merger in July 2024. It consolidated 95 Swiss branches in early 2025, completed the migration of all Swiss-booked clients by March 2026 — covering roughly 1.2 million former Credit Suisse clients globally — and reported that more than 90% of targeted legacy IT applications were no longer in use as of June 2026.
UBS shares have gained 31% over the past six months, outpacing the industry's 22% growth. The bank carries a Zacks Rank of #3 (Hold).
The strategic review comes as Swiss regulators continue to tighten capital requirements for the country's banking sector, raising the possibility that the world's largest wealth manager could ultimately relocate its headquarters to reduce its regulatory burden.
