UBS Resolves Legacy French Tax Matter With Nearly $987M Settlement

Core Insights - UBS Group AG has agreed to pay €835 million ($986.8 million) to resolve a long-standing French tax case related to its cross-border business activities from 2004 to 2012 [1][8] Summary by Sections Settlement Details - On September 23, 2025, UBS announced it would pay a €730 million ($862.7 million) fine and €105 million ($124.1 million) in civil damages to the French state, indicating that the matter is fully provisioned and aligns with the company's strategy to address legacy issues [2][8] Historical Context - The French tax case dates back over a decade, with a February 2019 ruling finding UBS guilty of illicit client solicitation and laundering tax fraud proceeds, resulting in a record fine of €3.7 billion ($4.4 billion) and €800 million ($945.4 million) in civil damages [3] - In December 2021, the Paris Court of Appeal upheld the guilty verdict but reduced some penalties, lowering the fine to €3.75 million ($4.43 million) and adding €1 billion ($1.18 billion) in confiscations while maintaining the €800 million in damages [4] - The French Supreme Court confirmed the guilty verdict in November 2023, leading to a reassessment by the Paris Court of Appeal and ultimately the 2025 settlement [4] Other Regulatory Matters - UBS has settled additional regulatory issues, including a $300 million payment to the U.S. Department of Justice in August 2025 related to Credit Suisse's mortgage-backed securities business and $511 million for a tax probe involving Credit Suisse's role in aiding U.S. clients in tax evasion [5] - In August 2023, UBS paid $1.44 billion to settle mortgage-related misconduct from the 2008 financial crisis, highlighting the need for improved compliance practices amid ongoing legal costs from Credit Suisse [6] Financial Performance - Over the past six months, UBS Group shares have increased by 25.0%, outperforming the industry's growth of 22.4% [7]