n-credit losses.Dodd Frank Capital Actions reflect cash dividends declared on preferred stock in accordance with the assumptions prescribed in the Dodd Frank Act StressTesting Capital Actions, which are outlined on page 3 of this presentation.Regulatory capital deductions are primarily result from reductions in items eligible to be risk-weighted or included in capital up to a threshold of 10% of CET1capital reflecting reduced CET1 capital in the scenario.2018 Dodd-Frank Act Annual Stress Test10

Material risks impacting capital adequacy assessment projectionsThe below risks are those inherent in UBS Americas Holding LLC's key business activities. The results of the firm'scapital stress tests reflect these risks:Credit RiskMarket Risk The risk of loss resulting from the failure of a client or counterparty to meet its contractual obligations toward AH LLC.This risk arises from a variety of business activities including lending commitments, mortgages, traded products (e.g.,exchange traded derivatives, securities borrowing/lending, repo/reverse repo, prime brokerage). The risk of loss resulting from adverse movements in market variables. Market variables include observable variables,such as interest rates, foreign exchange rates, equity prices, credit spreads and commodity prices, and variables that maybe unobservable or only indirectly observable, such as volatilities and correlations. The risk of increased cost or reduced access to funding sources. It includes liquidity risk (the risk of being unable togenerate sufficient funds from assets to meet payment obligations when they fall due), funding risk (the risk of higherthan-expected funding costs due to wider-than-expected UBS credit spreads when existing funding positions mature andneed to be rolled over, or replaced by other, more expensive funding sources and interest rate risk (the risk from bankingactivities which are booked and accounted for as non-traded book as defined per regulatory capitaltreatment/requirements). The risk arising from proprietary capital investments in funds or managed accounts set up by UBS or through jointventures, and from equity holdings. The risk of a negative impact on capital as a result of deteriorating funded status from decreases in the fair value ofassets held in the defined benefit pension funds and / or changes in the value of defined benefit pension obligations dueto changes in actuarial assumptions (e.g., discount rate, life expectancy, rate of pension increase) and / or changes toplan designs.Treasury RiskInvestment RiskPension Risk2018 Dodd-Frank Act Annual Stress Test11

Material risks impacting capital adequacy assessmentprojectionsThe below risks are those inherent in UBS Americas Holding LLC's key business activities. The results of the firm'scapital stress tests reflect these risks:Compliance andOperational Risk Operational risk: Inadequate or failed internal processes, people and systems, or external causes which have an impact toUBS, its clients or the markets in which it operates. Operational risk incorporates conduct risk, i.e., the risk that theconduct of the firm or its individuals unfairly impacts clients or counterparties, undermines the integrity of the financialsystem or impairs effective competition to the detriment of consumers. Compliance risk: The financial or reputational risk incurred by UBS by not adhering to the applicable laws, rules andregulations, local and international best practice (including ethical standards) and UBS's own internal standards. The financial risk resulting from a contract or any rights under or connected to the contract such as a right of set-off or aright conferred by security arrangements not being enforceable or the inability or failure to assert non-contractual rightssuch as intellectual property rights, and the financial or reputational risk resulting from UBS being held liable for acontractual or legal claim, or otherwise being subject to a penalty or liability in a legal action, based s over thenine-quarter forecast horizon.2018 Dodd-Frank Act Annual Stress Test13

UBS Bank USA Dodd-Frank Stress TestActual Q4 2017 and Projected Capital Ratios1 through Q1 2020Under the Company Run Supervisory Severely Adverse ScenarioRegulatory RatioActual Ratio2 at 12/31/17Hypothetical Stressed Ratios at3/31/20Hypothetical Stressed MinimumRatiosRegulatory Minimum3Common Equity Tier 1 Ratio (%)36.033.831.94.5Tier 1 Capital Ratio (%)36.033.831.96.0Total Capital Ratio (%) 1 Leverage Ratio (%) capital ratios are calculated using capital action assumptions prescribed under the Dodd-Frank Act stress testing requirement. Minimum reflects the lowestvalue for each ratio over the 9 quarter forecast horizon for the period Q1 2018 to Q1 2020.As reported in UBS Bank USA form FFIEC-041 as of December 31, 2017.12 CFR 217.10 (a) Board-regulated institution must maintain a minimum common equity tier 1 capital ratio of 4.5 percent, a minimum tier 1 capital ratio of 6percent, a minimum total capital ratio of 8 percent, and a minimum leverage ratio of 4 percent.2018 Dodd-Frank Act Annual Stress Test14

Jun 21, 2018 · subject to the annual stress testing requirement to disclose the results of their company -run stress tests, under the Federal Reserve's Supervisory Severely Adverse stress scenario, within 15 days of the date the Feder