10:25 AM EDT, 06/06/2025 (MT Newswires) -- UBS Group AG ( UBS ) may need up to $26 billion in additional capital under proposed Swiss financial reforms, according to a Swiss Federal Department of Finance document.

The largest requirement involves boosting capital reserves in its Swiss unit to fully cover foreign subsidiaries, increasing the threshold to 100% from 60%, which could require $23 billion alone, according to the document.

The impact on shareholders "heavily depends on many factors including decisions

made by UBS," the government said Friday in the document. "Dividend payments and organic growth should still be possible with appropriate transitional periods and if the generated profits are in line with the authorities' estimates."

"The measure could mean that UBS carries out fewer share buybacks, if only temporarily, and reports a somewhat lower return on equity, along with lower risks," according to the document.

UBS declined immediate comment.

Shares of UBS rose 3.6% in recent trading Friday, paring earlier gains.

Price: 34.02, Change: +1.18, Percent Change: +3.59