UBS Discloses Russian Exposure

Switzerland’s biggest bank warns about ongoing effects on markets and the global economy from measures caused by Russia’s attack on Ukraine.

Out of UBS’ total emerging market exposure of $20.9 billion at the end of last year, $634 million was attributable to exposure in Russia, the bank said in its annual report for 2021 Monday.

This amount, which has been reduced since, does not include assets totaling $51 million held in the bank’s Russian subsidiary. Nor does it account for unexpected increases in exposures due to settlement risk on certain open transactions with Russian banks and non-bank counterparties or Russian underlying due to sanctions, it said. As of March 3, the bank identified a «small number» of global wealth management clients subject to the recently introduced sanctions, who had outstanding loans below $10 million.

As of the same date, UBS’ market risk exposure to Russia was limited while direct country risk exposures to Ukraine and Belarus as of December 31 were insignificant. Furthermore, the bank does not hold any material reliance on Ukrainian or Belarusian collateral within its Lombard portfolio, it said.