UBS has settled a legacy legal matter with the French state, agreeing to pay €730m in fines and €105m in civil damages.  

The settlement resolves allegations of illegal solicitation of clients and money laundering related to the bank’s cross-border business activities in France from 2004 to 2012. 

The financial penalty and civil damages were reassessed by a lower court following the French Supreme Court’s confirmation of the Paris Court of Appeal’s decision against UBS.  

This confirmation came in 2023, but the court referred the matter of financial penalties back to the lower court for re-evaluation. 

The case dates back to activities under the leadership of then-CEO Sergio Ermotti, reported Bloomberg.  

The bank was accused of helping clients evade taxes by offering services to conceal assets. 

After a €4.5bn penalty was initially imposed in 2019, UBS has been working to reduce the fine, a process that has lasted over a decade. 

The legal proceedings began after settlement negotiations failed in March 2017, with UBS aiming to settle for less than the €300m it paid in Germany for a similar case.  

UBS has reported a profit before tax (PBT) of $2.19bn for the second quarter of 2025, a 49% increase from the previous year. 

Furthermore, the net profit attributable to shareholders saw a 111% year-on-year increase to $2.39bn.  

The figure includes a net release of provisions and contingent liabilities of $427m related to a legacy Credit Suisse matter, as well as a net deferred tax benefit of $577m, as stated in the group’s press release.