Report of Foreign Issuer (6-k)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

Date: July 27, 2015

UBS Group AG

Commission File Number: 1-36764

UBS AG

Commission File Number: 1-15060

(Registrants’ Names)

Bahnhofstrasse 45, Zurich, Switzerland

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

This Form 6-K consists of the media release of UBS Group AG and UBS AG, which appears immediately following this page.


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27 July 2015

UBS 2Q net profit up 53% to CHF 1.2 billion

Adjusted¹ profit before tax CHF 1.6 billion

Diluted earnings per share CHF 0.32

Net profit attributable to shareholders up 73% to CHF 3.2 billion in 1H15

12.0% adjusted¹ annualized return on tangible equity in 1H15

Industry-leading fully applied Basel III CET1 ratio up 70 bps to 14.4%

Fully applied Swiss SRB leverage ratio up 10 bps to 4.7%

53,000 hours volunteered by UBS staff in 1H15

Group service company subsidiary to be established in 3Q15

Zurich/Basel, 27 July 2015 – UBS delivered a robust second-quarter adjusted¹ profit before tax of CHF 1,635 million despite continued market and economic uncertainty, again demonstrating its fundamental earnings power and the strength of its business model. Net profit attributable to UBS Group AG shareholders was CHF 1,209 million, up 53% compared with the second quarter of 2014, with diluted earnings per share of CHF 0.32.

“I am pleased with the quarter. We maintained our momentum despite ongoing market challenges, and establishing UBS Switzerland AG was another major milestone in enhancing resolvability. We remain focused on building on our early mover advantage with a clear strategy, while increasing effectiveness and efficiency, and further investing for profitable growth.”

Sergio P. Ermotti, Group Chief Executive Officer

Business division highlights

•

Wealth Management delivered its best second-quarter result since 2009, with an adjusted¹profit before tax of CHF 769 million and robust net new money of CHF 8.4 billion excluding the effects of its balance sheet and capital optimization program. On a reported basis, net new money was CHF 1.8 billion.

•

Wealth Management Americas posted an adjusted¹profit before tax of USD 231 million, with operating income and financial advisor productivity at record levels.

•

Retail & Corporate had its best second quarter since 2010, with an adjusted¹ profit before tax of CHF 414 million showing strong net new business volume growth for retail clients.

•

Global Asset Management reported an adjusted¹ profit before tax of CHF 134 million and strong net new money of CHF 8.3 billion, excluding money market flows.

•

The Investment Bank reported an adjusted¹profit before tax of CHF 617 million with the best second-quarter result in Equities since 2012. It achieved an adjusted¹return on attributed equity of 33.8% without increasing its risk profile.

Information in this release is presented for UBS Group AG on a consolidated basis unless otherwise specified. Key figures for UBS AG are included at the end of this release. Financial information for UBS AG does not differ materially from UBS Group AG. UBS AG will publish its consolidated quarterly financial statements in electronic form only on 31 July 2015. These will be made available at www.ubs.com/quarterlyreporting


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 1 of 37


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Results by business division and Corporate Center


CHF million	Total operating income									Total operating expenses								Operating profit / (loss) before tax
For the quarter ended	30.6.15			31.3.15			% change			30.6.15		31.3.15			% change			30.6.15			31.3.15			% change
Wealth Management		2,080			2,247			(7	)		1,324		1,296			2			756			951			(21	)
Wealth Management Americas		1,823			1,801			1			1,631		1,548			5			191			253			(25	)
Retail & Corporate		952			979			(3	)		555		552			1			397			427			(7	)
Global Asset Management		476			511			(7	)		346		343			1			130			168			(23	)
Investment Bank		2,355			2,657			(11	)		1,804		1,891			(5	)		551			766			(28	)
Corporate Center		131			646			(80	)		399		504			(21	)		(267	)		142
of which: Services		*(41*	)		374						*212*		337			(37	)		*(253*	)		37
of which: Group ALM		*138*			313			(56	)		7		(4	)					*132*			317			(58	)
of which: Non-core and Legacy Portfolio		35			(41	)					*180*		171			5			*(145*	)		(212	)		(32	)
UBS		7,818			8,841			(12	)		6,059		6,134			(1	)		1,759			2,708			(35	)

Group, divisional and Corporate Center performance overview

Overall, UBS’s second quarter again demonstrated the resilience and diversification of its earnings, the strength of its business model, and the benefits of a strategy defined early and executed with discipline.

UBS Group reported a net profit attributable to shareholders of CHF 1,209 million, up 53% compared with the second quarter 2014, with diluted earnings per share of CHF 0.32. Group adjusted¹ profit before tax was CHF 1,635 million, with positive contributions from all divisions and regions. Adjusted¹ annualized return on tangible equity for the first six months of 2015 was 12.0%, above the 2015 target of around 10%.

The bank strengthened its leading capital position, with a fully applied Basel III CET1 capital ratio of 14.4% at the end of June, above the target of at least 13.0% and ahead of all other large global banks. Its fully applied Swiss SRB leverage ratio rose to 4.7% in the second quarter, as the Swiss SRB leverage ratio denominator (LRD, fully applied) decreased by CHF 33 billion partly reflecting a substantial reduction in Non-core and Legacy Portfolio assets. Since the third quarter of 2012, UBS has reduced the Non-core and Legacy Portfolio LRD from CHF 293 billion to CHF 70 billion.

The creation of UBS Group AG and UBS Switzerland AG were major milestones to improve the Group’s resolvability, in response to the evolving regulatory environment. In June, some 2.7 million clients and approximately CHF 300 billion in assets, primarily from the Swiss Retail & Corporate and Wealth Management businesses, were transferred into UBS Switzerland AG. UBS is the first bank to complete this step in Switzerland. UBS has also implemented a more self-sufficient business and operating model for UBS Limited in the UK, and has submitted plans for the establishment of an intermediate holding company in the US. In the third quarter, UBS will establish a Group service company as a subsidiary of UBS Group AG, into which shared services and support functions of the Group will be transferred over the next several years. This will help ensure the bank can maintain the operational continuity of these critical services in case of resolution. All these measures will allow UBS to qualify for a rebate on the progressive buffer capital requirement applicable to Swiss systemically relevant banks, which should result in lower overall regulatory capital requirements for the Group.

UBS was honored to receive the Euromoney Award for Excellence for Best Global Wealth Manager and, for the fourth year running, Best Bank in Switzerland. In addition, Euromoney named UBS Investment Bank the Best Flow House in North America and Best Equity House in Western Europe, underlining the success of its client-centric model. UBS Neo, the firm’s cross-asset e-commerce platform, was named Best Platform at the annual Digital FX Awards hosted by Profit & Loss magazine.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 2 of 37


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Wealth Management delivered its best second-quarter result since 2009 with an adjusted¹ profit before tax of CHF 769 million. The business continued to generate high-quality earnings, with an increase in recurring income reflecting continued success in its strategic initiatives to grow loans and increase mandate penetration, as well as further pricing measures. Adjusted net new money was robust at CHF 8.4 billion, driven by inflows from all regions and segments, most notably its market-leading Asia Pacific franchise, as well as from Ultra High Net Worth clients. The balance sheet and capital optimization program implemented in the first half of 2015 led to net new money outflows of CHF 6.6 billion during the quarter. On a reported basis, net new money was CHF 1.8 billion.

Wealth Management Americas reported an adjusted¹ profit before tax of USD 231 million. Total operating income and recurring net fees increased to record levels, and financial advisor productivity remained industry-leading, while pre-tax profit was affected by higher charges for provisions for litigation, regulatory and similar matters and other provisions. Net new money was slightly negative at USD 0.7 billion, reflecting seasonal outflows of approximately USD 3.9 billion associated with income tax payments.

Retail & Corporate posted its best second-quarter result since 2010, with an adjusted¹ profit before tax of CHF 414 million. The net new business volume growth for retail clients was particularly strong for a second quarter. Credit loss expenses were lower, while general and administrative expenses increased mainly due to higher charges for provisions in the Corporate & Institutional client business.

Global Asset Management recorded strong net new money of CHF 8.3 billion excluding money market flows, with net inflows from third-party clients more than doubling compared to the prior quarter. Adjusted¹ profit before tax was CHF 134 million. The quarter saw an increase in net management fees mainly in traditional investments and global real estate, offset by a decline in performance fees in O’Connor and A&Q, in line with market developments in the alternative asset management sector.

The Investment Bank achieved a solid result with an adjusted¹ profit before tax of CHF 617 million, following very strong results in the first quarter. Investor Client Services benefited from the best second-quarter result in Equities since UBS accelerated its strategy in 2012, and a solid performance in FX, rates and credit, despite lower client activity and after exceptionally high FX revenues in the first quarter. Corporate Client Solutions improved on the back of higher revenues mainly in debt and equity capital markets and advisory. The business maintained risk profile and allocated resource limits discipline and its results once again demonstrated the strength of its business model and client-centric approach. Adjusted¹return on attributed equity for the second quarter was 33.8%.

Corporate Center – Services recorded a loss before tax of CHF 253 million. Corporate Center – Group Asset and Liability Management reported a profit before tax of CHF 132 million. Corporate Center – Non-core and Legacy Portfolio recorded a loss before tax of CHF 145 million, achieving further progress in de-risking its balance sheet with RWA and the Swiss SRB leverage ratio denominator decreasing by CHF 4 billion and CHF 14 billion respectively.

UBS aims to create long-term value for its investors and clients, while making a positive contribution to the communities in which it operates. In June, for example, UBS launched a campaign to engage up to 50% of its Americas workforce in volunteering programs. To date, UBS Americas employees contributed around 20,000 hours of their time – approximately 70% of 2014’s full-year total – volunteering across the Americas. Combined with the time volunteered by other UBS staff around the world, around 53,000 hours were logged in the first half of 2015 to support volunteering programs and give back to society.


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Outlook

As in previous years, seasonal impacts are likely to affect revenues and profits in the third quarter. In addition, many of the underlying macroeconomic challenges and geopolitical issues that we have previously highlighted remain and are unlikely to be resolved in the foreseeable future. Despite ongoing and new challenges, we continue to be committed to the disciplined execution of our strategy in order to ensure the firm’s long-term success and to deliver sustainable returns for our shareholders.

¹	Please refer to the “Adjusted results” section at the end of this news release for information on adjusted results.


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UBS Group key figures


	As of or for the quarter ended										As of or year-to-date
CHF million, except where indicated	30.6.15			31.3.15		31.12.14		30.6.14			30.6.15		30.6.14
Group results
Operating income		7,818			8,841		6,746		7,147			16,659		14,405
Operating expenses		6,059			6,134		6,342		5,929			12,193		11,794
Operating profit / (loss) before tax		1,759			2,708		404		1,218			4,467		2,611
Net profit / (loss) attributable to UBS Group AG shareholders		1,209			1,977		858		792			3,186		1,846
Diluted earnings per share (CHF)¹		0.32			0.53		0.23		0.21			0.85		0.48
Key performance indicators²
Profitability
Return on tangible equity (%)		11.0			17.8		8.0		7.5			14.4		8.8
Return on assets, gross (%)		3.1			3.4		2.6		2.9			3.2		2.9
Cost / income ratio (%)		77.4			69.2		93.2		82.8			73.1		82.0
Growth
Net profit growth (%)		(38.8	)		130.4		12.6		(24.9	)		72.6		10.0
Net new money growth for combined wealth management businesses (%)³		1.5			3.8		1.7		1.9			2.6		2.4
Resources
Common equity tier 1 capital ratio (fully applied, %)⁴		14.4			13.7		13.4		13.5			14.4		13.5
Leverage ratio (phase-in, %)⁵		5.4			5.6		5.4		5.3			5.4		5.3
Additional information
Profitability
Return on equity (RoE) (%)		9.4			15.4		6.8		6.4			12.4		7.6
Return on risk-weighted assets, gross (%)⁶		14.5			16.1		12.3		12.5			15.3		12.5
Resources

Total assets		950,168			1,048,850		1,062,478		982,605			950,168		982,605

Equity attributable to UBS Group AG shareholders		50,211			52,359		50,608		49,532			50,211		49,532
Common equity tier 1 capital (fully applied)⁴		30,265			29,566		28,941		30,590			30,265		30,590
Common equity tier 1 capital (phase-in)⁴		38,706			40,779		42,863		41,858			38,706		41,858
Risk-weighted assets (fully applied)⁴		209,777			216,385		216,462		226,736			209,777		226,736
Risk-weighted assets (phase-in)⁴		212,088			219,358		220,877		229,908			212,088		229,908
Common equity tier 1 capital ratio (phase-in, %)⁴		18.2			18.6		19.4		18.2			18.2		18.2

Total capital ratio (fully applied, %)⁴		21.2			20.6		18.9		18.1			21.2		18.1

Total capital ratio (phase-in, %)⁴		25.0			25.9		25.5		23.9			25.0		23.9

Leverage ratio (fully applied, %)⁵		4.7			4.6		4.1		4.2			4.7		4.2
Leverage ratio denominator (fully applied)⁵		944,422			976,934		997,822		980,552			944,422		980,552
Leverage ratio denominator (phase-in)⁵		949,134			982,249		1,004,869		986,577			949,134		986,577
Liquidity coverage ratio (%)⁷		121			122		123		117			121		117
Other
Invested assets (CHF billion)⁸		2,628			2,708		2,734		2,507			2,628		2,507
Personnel (full-time equivalents)		59,648			60,113		60,155		60,087			59,648		60,087
Market capitalization⁹		74,547			68,508		63,526		62,542			74,547		62,542

Total book value per share (CHF)⁹		13.71			14.33		13.94		13.20			13.71		13.20

Tangible book value per share (CHF)⁹		12.04			12.59		12.14		11.54			12.04		11.54

1	Refer to “Note 9 Earnings per share (EPS) and shares outstanding” in the “Financial information” section of the second quarter 2015 report for more information.

2	Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators.

3	Based on adjusted net new money which excludes the negative effect on net new money of CHF 6.6 billion in Wealth Management from our balance sheet and capital optimization program in the second quarter of 2015.

4	Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of the second quarter 2015 report for more information.

5	In accordance with Swiss SRB rules. Refer to the “Capital management” section of the second quarter 2015 report for more information.

6	Based on phase-in Basel III risk-weighted assets.

7	Refer to the “Liquidity and funding management” section of the second quarter 2015 report for more information. Data for periods prior to 31 March 2015 are on a pro-forma basis.

8	Includes invested assets for Retail & Corporate.

9	Refer to the “UBS shares” section of the second quarter 2015 report for more information.


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Income statement


	For the quarter ended									% change from						Year-to-date
CHF million, except per share data	30.6.15			31.3.15			30.6.14			1Q15			2Q14			30.6.15			30.6.14
Interest income		3,409			3,172			3,337			7			2			6,581			6,528
Interest expense		(1,918	)		(1,535	)		(2,095	)		25			(8	)		(3,454	)		(3,714	)
Net interest income		1,490			1,637			1,242			(9	)		20			3,127			2,814
Credit loss (expense) / recovery		(13	)		(16	)		(14	)		(19	)		(7	)		(29	)		14
Net interest income after credit loss expense		1,478			1,621			1,229			(9	)		20			3,098			2,829
Net fee and commission income		4,409			4,401			4,296			0			3			8,810			8,408
Net trading income		1,647			2,135			1,347			(23	)		22			3,781			2,704
Other income		285			685			276			(58	)		3			970			465

Total operating income		7,818			8,841			7,147			(12	)		9			16,659			14,405

Personnel expenses		4,124			4,172			3,842			(1	)		7			8,297			7,809
General and administrative expenses		1,695			1,713			1,871			(1	)		(9	)		3,408			3,550
Depreciation and impairment of property, equipment and software		209			221			197			(5	)		6			429			396
Amortization and impairment of intangible assets		30			28			19			7			58			58			39

Total operating expenses		6,059			6,134			5,929			(1	)		2			12,193			11,794

Operating profit / (loss) before tax		1,759			2,708			1,218			(35	)		44			4,467			2,611
Tax expense / (benefit)		443			670			314			(34	)		41			1,113			652
Net profit / (loss)		1,316			2,038			904			(35	)		46			3,354			1,958
Net profit / (loss) attributable to preferred noteholders								111												111
Net profit / (loss) attributable to non-controlling interests		106			61			1			74						168			2
Net profit / (loss) attributable to UBS Group AG shareholders		1,209			1,977			792			(39	)		53			3,186			1,846

Earnings per share (CHF)
Basic		0.33			0.54			0.21			(39	)		57			0.87			0.49
Diluted		0.32			0.53			0.21			(40	)		52			0.85			0.48


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Comparison UBS Group AG (consolidated) versus UBS AG (consolidated)


	As of or for the quarter ended 30.6.15										As of or for the quarter ended 31.3.15										As of or for the quarter ended 31.12.14
CHF million, except where indicated	UBS Group AG (consolidated)		UBS AG (consolidated)		Difference (absolute)			Difference (%)			UBS Group AG (consolidated)		UBS AG (consolidated)		Difference (absolute)			Difference (%)			UBS Group AG (consolidated)		UBS AG (consolidated)		Difference (absolute)			Difference (%)

Income statement
Operating income		7,818		7,784		34			0			8,841		8,860		(19	)		0			6,746		6,745		1			0
Operating expenses		6,059		6,087		(28	)		0			6,134		6,167		(33	)		(1	)		6,342		6,333		10			0
Operating profit / (loss) before tax		1,759		1,698		61			4			2,708		2,693		15			1			404		412		(8	)		(2	)
Net profit / (loss)		1,316		1,255		61			5			2,038		2,023		15			1			919		927		(9	)		(1	)
of which: net profit / (loss) attributable to shareholders		*1,209*		*1,178*		31			3			1,977		2,023		(46	)		(2	)		858		893		(36	)		(4	)
of which: net profit / (loss) attributable to preferred noteholders		0		76		(76	)		(100	)		0		0		0						31		31		0			0
of which: net profit / (loss) attributable to non-controlling interests		*106*		1		105						61		0		61						29		2		27

Balance sheet

Total assets		950,168		951,528		(1,360	)		0			1,048,850		1,050,122		(1,272	)		0			1,062,478		1,062,327		151			0

Total liabilities		896,915		897,966		(1,051	)		0			993,194		994,379		(1,185	)		0			1,008,110		1,008,162		(52	)		0

Total equity		53,253		53,562		(309	)		(1	)		55,656		55,742		(86	)		0			54,368		54,165		203			0

of which: equity attributable to shareholders		*50,211*		*51,685*		(1,474	)		(3	)		52,359		53,815		(1,456	)		(3	)		50,608		52,108		(1,500	)		(3	)
of which: equity attributable to preferred noteholders		0		*1,840*		(1,840	)		(100	)		0		1,889		(1,889	)		(100	)		0		2,013		(2,013	)		(100	)
of which: equity attributable to non-controlling interests		*3,042*		38		3,004						3,298		39		3,259						3,760		45		3,715

Capital information (fully applied)
Common equity tier 1 capital		30,265		32,834		(2,569	)		(8	)		29,566		31,725		(2,159	)		(7	)		28,941		30,805		(1,864	)		(6	)
Additional tier 1 capital		3,777		0		3,777						3,949		0		3,949						467		0		467
Tier 2 capital		10,531		9,613		918			10			10,975		10,038		936			9			11,398		10,451		947			9

Total capital		44,573		42,447		2,126			5			44,490		41,763		2,727			7			40,806		41,257		(451	)		(1	)

Risk-weighted assets		209,777		210,400		(623	)		0			216,385		216,893		(508	)		0			216,462		217,158		(696	)		0
Common equity tier 1 capital ratio (%)		14.4		15.6		(1.2	)					13.7		14.6		(0.9	)					13.4		14.2		(0.8	)

Total capital ratio (%)		21.2		20.2		1.0						20.6		19.3		1.3						18.9		19.0		(0.1	)

Leverage ratio denominator		944,422		946,457		(2,035	)		0			976,934		978,709		(1,775	)		0			997,822		999,124		(1,302	)		0
Leverage ratio (%)		4.7		4.5		0.2						4.6		4.3		0.3						4.1		4.1		0.0

Share information
Shares issued (number of shares)		3,759,320,804		3,858,408,466		(99,087,662	)		(3	)		3,739,518,390		3,844,560,913		(105,042,523	)		(3	)		3,717,128,324		3,844,560,913		(127,432,589	)		(3	)
Shares outstanding (number of shares)		3,663,403,008		3,856,268,548		(192,865,540	)		(5	)		3,654,259,506		3,835,846,436		(181,586,930	)		(5	)		3,629,256,587		3,842,445,658		(213,189,071	)		(6	)
Diluted earnings per share (CHF)		0.32		0.31		0.01			3			0.53		0.53		0.00			0			0.23		0.23		0.00			0
Tangible book value per share (CHF)		12.04		11.78		0.26			2			12.59		12.33		0.26			2			12.14		11.80		0.34			3


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 7 of 37


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Additional financial tables UBS Group AG

References in tables to notes in various sections of ‘the’ or ‘this’ report refer to notes contained in the Second Quarter 2015 Report, which will be published on 28 July 2015.

Adjusted results^1,2


	For the quarter ended 30.6.15
CHF million	Wealth Management		Wealth Management Americas		Retail & Corporate		Global Asset Management		Investment Bank		CC – Services³			CC – Group ALM			CC – Non- core and Legacy Portfolio			UBS
Operating income as reported		2,080		1,823		952		476		2,355		(41	)		138			35			7,818
of which: own credit on financial liabilities designated at fair value⁴															*259*						*259*
of which: gain on sale of the Belgian domestic Wealth Management business		56																			56
of which: gain from a further partial sale of our investment in Markit										11											11
Operating income (adjusted)		2,024		1,823		952		476		2,344		(41	)		(121	)		35			7,492

Operating expenses as reported		1,324		1,631		555		346		1,804		212			7			180			6,059
of which: personnel-related restructuring charges⁵		18		0		0		0		0		85			0			7			*110*
of which: non-personnel-related restructuring charges⁵		10		0		0		0		1		70			0			0			81
of which: restructuring charges allocated from CC – Services to business divisions and other CC units⁵		41		24		16		4		65		*(155*	)		0			6			0
of which: impairment of an intangible asset										11											11
Operating expenses (adjusted)		1,255		1,607		538		342		1,727		212			7			167			5,857

Operating profit / (loss) before tax as reported		756		191		397		130		551		(253	)		132			(145	)		1,759
Operating profit / (loss) before tax (adjusted)		769		215		414		134		617		(253	)		(127	)		(132	)		1,635

	For the quarter ended 31.3.15
CHF million	Wealth Management		Wealth Management Americas		Retail & Corporate		Global Asset Management		Investment Bank		CC – Services³			CC – Group ALM			CC – Non- core and Legacy Portfolio			UBS
Operating income as reported		2,247		1,801		979		511		2,657		374			313			(41	)		8,841
of which: own credit on financial liabilities designated at fair value⁴															226						226
of which: gains on sales of real estate												378									378
of which: gain on sale of a subsidiary		141																			141
Operating income (adjusted)		2,106		1,801		979		511		2,657		(4	)		87			(41	)		8,096

Operating expenses as reported		1,296		1,548		552		343		1,891		337			(4	)		171			6,134
of which: personnel-related restructuring charges⁵		3		0		1		0		2		62			0			1			68
of which: non-personnel-related restructuring charges⁵		5		0		0		0		2		230			0			0			237
of which: restructuring charges allocated from CC – Services to business divisions and other CC units⁵		39		24		16		17		66		(173	)		0			11			0
Operating expenses (adjusted)		1,250		1,524		536		325		1,821		218			(4	)		160			5,829

Operating profit / (loss) before tax as reported		951		253		427		168		766		37			317			(212	)		2,708
Operating profit / (loss) before tax (adjusted)		856		277		443		186		836		(222	)		91			(201	)		2,268

1	Adjusted results are non-GAAP financial measures as defined by SEC regulations.

2	Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies.

3	Corporate Center – Services operating expenses presented in this table are after service allocations to business divisions and Corporate Center units.

4	Refer to “Note 10 Fair value measurement” in the “Financial information” section of this report for more information.

5	Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of the second quarter report for more information.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 8 of 37


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Adjusted results^1,2 (continued)


	For the quarter ended 30.6.14
CHF million	Wealth Management		Wealth Management Americas		Retail & Corporate		Global Asset Management		Investment Bank			CC – Services³			CC – Group ALM			CC – Non- core and Legacy Portfolio			UBS
Operating income as reported		1,921		1,684		938		465		2,268			5			33			(168	)		7,147
of which: own credit on financial liabilities designated at fair value⁴																72						72
of which: gains on sales of real estate													1									1
of which: gain from the partial sale of our investment in Markit										43												43
Operating income (adjusted)		1,921		1,684		938		465		2,225			4			(39	)		(168	)		7,031

Operating expenses as reported		1,566		1,473		584		359		1,704			(5	)		3			245			5,929
of which: personnel-related restructuring charges⁵		3		0		2		0		(1	)		24			0			0			28
of which: non-personnel-related restructuring charges⁵		15		0		0		0		2			43			0			0			61
of which: restructuring charges allocated from CC – Services to business divisions and other CC units⁵		19		7		11		2		26			(63	)		0			(2	)		0
Operating expenses (adjusted)		1,528		1,466		571		357		1,677			(9	)		3			247			5,840

Operating profit / (loss) before tax as reported		355		211		354		105		564			10			31			(412	)		1,218
Operating profit / (loss) before tax (adjusted)		393		218		367		107		548			13			(41	)		(414	)		1,191

1	Adjusted results are non-GAAP financial measures as defined by SEC regulations.

2	Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies.

3	Corporate Center – Services operating expenses presented in this table are after service allocations to business divisions and Corporate Center units.

4	Refer to “Note 10 Fair value measurement” in the “Financial information” section of this report for more information.

5	Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for more information.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 9 of 37


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Adjusted results^1,2(continued)


	Year-to-date 30.6.15
CHF million	Wealth Management		Wealth Management Americas		Retail & Corporate		Global Asset Management		Investment Bank		CC – Services³			CC – Group ALM			CC – Non- core and Legacy Portfolio			UBS
Operating income as reported		4,327		3,624		1,931		987		5,012		333			451			(6	)		16,659
of which: own credit on financial liabilities designated at fair value⁴															*486*						*486*
of which: gains on sales of real estate												*378*									*378*
of which: gain on sale of a subsidiary		*141*																			*141*
of which: gain on sale of the Belgian domestic Wealth Management business		56																			56
of which: gain from a further partial sale of our investment in Markit										11											11
Operating income (adjusted)		4,130		3,624		1,931		987		5,001		(45	)		(35	)		(6	)		15,587

Operating expenses as reported		2,621		3,179		1,106		688		3,695		549			2			351			12,193
of which: personnel-related restructuring charges⁵		21		0		1		0		2		*146*			0			8			*178*
of which: non-personnel-related restructuring charges⁵		14		0		0		0		3		*300*			0			0			*318*
of which: restructuring charges allocated from CC – Services to business divisions and other CC units⁵		80		48		32		21		*131*		*(328*	)		0			16			0
of which: impairment of an intangible asset										11											11
Operating expenses (adjusted)		2,506		3,131		1,073		666		3,548		431			2			327			11,686

Operating profit / (loss) before tax as reported		1,707		445		824		299		1,317		(217	)		449			(357	)		4,467
Operating profit / (loss) before tax (adjusted)		1,625		493		857		321		1,453		(477	)		(37	)		(333	)		3,902

	Year-to-date 30.6.14
CHF million	Wealth Management		Wealth Management Americas		Retail & Corporate		Global Asset Management		Investment Bank		CC – Services³			CC – Group ALM			CC – Non- core and Legacy Portfolio			UBS
Operating income as reported		3,865		3,345		1,870		916		4,468		14			83			(156	)		14,405
of which: own credit on financial liabilities designated at fair value⁴															160						160
of which: gains on sales of real estate												24									24
of which: gain from the partial sale of our investment in Markit										43											43
Operating income (adjusted)		3,865		3,345		1,870		916		4,425		(10	)		(77	)		(156	)		14,178

Operating expenses as reported		2,891		2,892		1,130		688		3,469		230			(5	)		499			11,794
of which: personnel-related restructuring charges⁵		13		0		2		0		62		84			0			0			161
of which: non-personnel-related restructuring charges⁵		23		0		0		0		33		76			0			0			132
of which: restructuring charges allocated from CC – Services to business divisions and other CC units⁵		42		18		25		6		56		(154	)		0			7			0
Operating expenses (adjusted)		2,813		2,874		1,103		682		3,318		224			(5	)		492			11,501

Operating profit / (loss) before tax as reported		974		453		740		228		999		(215	)		88			(654	)		2,611
Operating profit / (loss) before tax (adjusted)		1,052		471		767		234		1,107		(233	)		(72	)		(647	)		2,677

1	Adjusted results are non-GAAP financial measures as defined by SEC regulations.

2	Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies.

3	Corporate Center – Services operating expenses presented in this table are after service allocations to business divisions and Corporate Center units.

4	Refer to “Note 10 Fair value measurement” in the “Financial information” section of this report for more information.

5	Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for more information.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 10 of 37


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Return on equity


	As of or for the quarter ended									% change from						Year-to-date
CHF million, except where indicated	30.6.15			31.3.15			30.6.14			1Q15			2Q14			30.6.15			30.6.14

Net profit
Net profit attributable to UBS Group AG shareholders		1,209			1,977			792			(39	)		53			3,186			1,846
Amortization and impairment of intangible assets		30			28			19			7			58			58			39
Pre-tax adjustment items¹		(135	)		(440	)		(27	)		(69	)		400			(576	)		66
Tax effect on adjustment items²		(22	)		52			(8	)					175			30			(47	)
Adjusted net profit attributable to UBS Group AG shareholders³		1,082			1,617			776			(33	)		39			2,698			1,904

Equity
Equity attributable to UBS Group AG shareholders		50,211			52,359			49,532			(4	)		1			50,211			49,532
Less: goodwill and intangible assets⁴		6,101			6,342			6,229			(4	)		(2	)		6,101			6,229
Tangible equity attributable to UBS Group AG shareholders		44,110			46,017			43,303			(4	)		2			44,110			43,303

Return on equity
Return on equity (%)		9.4			15.4			6.4									12.4			7.6
Return on tangible equity (%)		11.0			17.8			7.5									14.4			8.8
Adjusted return on tangible equity (%)		9.6			14.4			7.2									12.0			8.9

1	Refer to the table “Adjusted results” in this section for more information.

2	Generally reflects an indicative tax rate of 22% on pre-tax adjustment items, apart from own credit on financial liabilities designated at fair value, which has a lower indicative tax rate of 2%.

3	Net profit attributable to UBS Group AG shareholders excluding amortization and impairment of intangible assets, pre-tax adjustment items and tax effect on pre-tax adjustment items.

4	Goodwill and intangible assets used in the calculation of tangible equity attributable to UBS Group AG shareholders have been adjusted to reflect the non-controlling interests in UBS AG, where applicable.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 11 of 37


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Wealth Management¹


	As of or for the quarter ended								% change from						Year-to-date
CHF million, except where indicated	30.6.15			31.3.15		30.6.14			1Q15			2Q14			30.6.15		30.6.14
Net interest income		568			560		518			1			10			1,128		1,013
Recurring net fee income		976			949		922			3			6			1,925		1,819
Transaction-based income		459			589		472			(22	)		(3	)		1,048		1,014
Other income		78			149		7			(48	)					227		16
Income		2,081			2,246		1,919			(7	)		8			4,327		3,862
Credit loss (expense) / recovery		(1	)		1		2									0		3

Total operating income		2,080			2,247		1,921			(7	)		8			4,327		3,865

Personnel expenses		656			661		603			(1	)		9			1,316		1,232
General and administrative expenses		134			111		425			21			(68	)		245		614
Services (to) / from other business divisions and Corporate Center		533			521		536			2			(1	)		1,055		1,040
of which: services from CC – Services		*519*			508		522			2			(1	)		1,027		1,008
Depreciation and impairment of property, equipment and software		1			2		1			(50	)		0			3		2
Amortization and impairment of intangible assets		1			1		1			0			0			2		3

Total operating expenses²		1,324			1,296		1,566			2			(15	)		2,621		2,891

Business division operating profit / (loss) before tax		756			951		355			(21	)		113			1,707		974
Key performance indicators³
Pre-tax profit growth (%)		(20.5	)		47.2		(42.6	)								75.3		(20.2	)
Cost / income ratio (%)		63.6			57.7		81.6									60.6		74.9
Net new money growth (%)⁴		3.5			5.8		4.8									4.6		4.9
Gross margin on invested assets (bps)		87			92		84			(5	)		4			89		86
Net margin on invested assets (bps)		32			39		16			(18	)		100			35		22
Additional information
Recurring income		1,544			1,509		1,440			2			7			3,053		2,832
Recurring income as a % of income (%)		74.2			67.2		75.0									70.6		73.3
Average attributed equity (CHF billion)⁵		3.4			3.6		3.4			(6	)		0			3.5		3.4
Return on attributed equity (%)		88.9			105.7		41.8									97.5		57.3
Risk-weighted assets (fully applied, CHF billion)⁶		25.8			25.7		22.1			0			17			25.8		22.1
Risk-weighted assets (phase-in, CHF billion)⁶		25.8			26.0		22.6			(1	)		14			25.8		22.6
Return on risk-weighted assets, gross (%)⁷		32.1			34.7		34.6									33.4		35.3
Leverage ratio denominator (phase-in, CHF billion)⁸		129.7			134.2		129.0			(3	)		1			129.7		129.0
Goodwill and intangible assets (CHF billion)		1.3			1.3		1.3			0			0			1.3		1.3
Net new money (CHF billion)		1.8			14.4		10.7									16.1		21.6
Net new money adjusted (CHF billion)⁹		8.4			14.4		10.7									22.7		21.6
Invested assets (CHF billion)		945			970		928			(3	)		2			945		928
Client assets (CHF billion)		1,115			1,142		1,083			(2	)		3			1,115		1,083
Loans, gross (CHF billion)		110.9			110.8		105.3			0			5			110.9		105.3
Due to customers (CHF billion)		173.2			188.4		187.5			(8	)		(8	)		173.2		187.5
Personnel (full-time equivalents)		10,257			10,366		10,243			(1	)		0			10,257		10,243
Client advisors (full-time equivalents)		4,079			4,326		4,245			(6	)		(4	)		4,079		4,245

1	Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies.

2	Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges.

3	Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators.

4	Based on adjusted net new money.

5	Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework.

6	Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of this report for more information.

7	Based on phase-in Basel III risk-weighted assets.

8	In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information.

9	Adjusted net new money excludes the negative effect on net new money of CHF 6.6 billion from our balance sheet and capital optimization program in the second quarter of 2015.


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Regional breakdown of key figures^1,2

As of or for the quarter ended 30.6.15

Europe

Asia Pacific

Switzerland

Emerging
markets

of which:
ultra high net
worth

of which:
Global Family
Office³

Net new money (CHF billion)

0.6

3.4

0.8

(2.5

)

2.8

1.1

Net new money adjusted (CHF billion)⁴

1.8

4.5

2.4

0.1

7.1

2.3

Net new money growth (%)⁵

2.1

6.5

5.4

0.2

5.6

12.4

Invested assets (CHF billion)

340

274

172

157

494

Gross margin on invested assets (bps)⁶

⁷

Client advisors (full-time equivalents)

1,392

1,127

760

714

708

⁸

1	Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators.

2	Based on the Wealth Management business area structure, and excluding minor functions with 86 client advisors, and CHF 2 billion of invested assets, and CHF 0.5 billion of net new money outflows in the second quarter of 2015.

3	Joint venture between Wealth Management and the Investment Bank. Global Family Office is reported as a sub-segment of ultra high net worth and is included in the ultra high net worth figures.

4	Adjusted net new money excludes the negative effect on net new money from our balance sheet and capital optimization program in the second quarter of 2015.

5	Based on adjusted net new money.

6	Includes the effect of a gain of CHF 56 million on the sale of our Belgian domestic business. Excluding this, the adjusted gross margin for Europe was 80 basis points and 55 basis points for ultra high net worth clients.

7	Gross margin includes income booked in the Investment Bank. Gross margin only based on income booked in Wealth Management is 24 basis points.

8	Represents client advisors who exclusively serve ultra high net worth clients. In addition to these, other client advisors may also serve certain ultra high net worth clients, but not exclusively.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 13 of 37


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Wealth Management Americas – in US dollars¹


	As of or for the quarter ended								% change from						Year-to-date
USD million, except where indicated	30.6.15			31.3.15		30.6.14			1Q15			2Q14			30.6.15			30.6.14
Net interest income		301			277		261			9			15			579			511
Recurring net fee income		1,217			1,186		1,163			3			5			2,404			2,282
Transaction-based income		425			432		464			(2	)		(8	)		857			936
Other income		4			5		12			(20	)		(67	)		9			17
Income		1,947			1,901		1,900			2			2			3,848			3,747
Credit loss (expense) / recovery		0			0		(2	)					(100	)		0			17

Total operating income		1,947			1,901		1,898			2			3			3,848			3,764

Personnel expenses		1,199			1,185		1,186			1			1			2,383			2,332
Financial advisor compensation²		750			731		742			3			1			1,482			1,450
Compensation commitments with recruited financial advisors³		188			186		184			1			2			374			364
Salaries and other personnel costs		260			267		260			(3	)		0			527			518
General and administrative expenses		213			126		153			69			39			339			292
Services (to) / from other business divisions and Corporate Center		317			309		308			3			3			625			603
of which: services from CC – Services		*314*			305		304			3			3			619			595
Depreciation and impairment of property, equipment and software		1			1		0			0						1			0
Amortization and impairment of intangible assets		13			13		13			0			0			26			26

Total operating expenses⁴		1,743			1,633		1,660			7			5			3,375			3,254

Business division operating profit / (loss) before tax		205			268		238			(24	)		(14	)		473			510

Key performance indicators⁵
Pre-tax profit growth (%)		(23.5	)		23.5		(12.5	)								(7.3	)		12.1
Cost / income ratio (%)		89.5			85.9		87.4									87.7			86.8
Net new money growth (%)		(0.3	)		1.9		(1.0	)								0.8			(0.1	)
Gross margin on invested assets (bps)		74			73		76			1			(3	)		74			76
Net margin on invested assets (bps)		8			10		10			(20	)		(20	)		9			10

Additional information
Recurring income		1,519			1,463		1,424			4			7			2,982			2,793
Recurring income as a % of income (%)		78.0			77.0		74.9									77.5			74.5
Average attributed equity (USD billion)⁶		2.6			2.5		2.9			4			(10	)		2.6			3.0
Return on attributed equity (%)		31.5			42.9		32.8									37.1			34.6
Risk-weighted assets (fully applied, USD billion)⁷		23.0			22.4		28.0			3			(18	)		23.0			28.0
Risk-weighted assets (phase-in, USD billion)⁷		23.0			22.6		28.2			2			(18	)		23.0			28.2
Return on risk-weighted assets, gross (%)⁸		34.2			34.1		27.1									34.1			26.9
Leverage ratio denominator (phase-in, USD billion)⁹		60.7			57.9		63.7			5			(5	)		60.7			63.7
Goodwill and intangible assets (USD billion)		3.7			3.7		3.8			0			(3	)		3.7			3.8
Net new money (USD billion)		(0.7	)		4.8		(2.5	)								4.0			(0.4	)
Net new money including interest and dividend income (USD billion)¹⁰		5.1			10.3		3.2									15.4			10.8
Invested assets (USD billion)		1,045			1,050		1,017			0			3			1,045			1,017
Client assets (USD billion)		1,099			1,104		1,073			0			2			1,099			1,073
Loans, gross (USD billion)		47.3			45.5		41.7			4			13			47.3			41.7
Due to customers (USD billion)		73.4			74.5		67.6			(1	)		9			73.4			67.6
Recruitment loans to financial advisors		2,853			2,871		2,985			(1	)		(4	)		2,853			2,985
Other loans to financial advisors		455			487		402			(7	)		13			455			402
Personnel (full-time equivalents)		13,235			13,275		13,558			0			(2	)		13,235			13,558
Financial advisors (full-time equivalents)		6,948			6,982		7,119			0			(2	)		6,948			7,119


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 14 of 37


				Investor Relations
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1	Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies.

2	Financial advisor compensation consists of grid-based compensation based directly on compensable revenues generated by financial advisors and supplemental compensation calculated based on financial advisor productivity, firm tenure, assets and other variables.

3	Compensation commitments with recruited financial advisors represents charges related to compensation commitments granted to financial advisors at the time of recruitment which are subject to vesting requirements.

4	Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges.

5	Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators.

6	Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework.

7	Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of this report for more information.

8	Based on phase-in Basel III risk-weighted assets.

9	In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information.

10	Presented in line with historical reporting practice in the US market.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 15 of 37


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Wealth Management Americas – in Swiss francs¹


	As of or for the quarter ended								% change from						Year-to-date
CHF million, except where indicated	30.6.15			31.3.15		30.6.14			1Q15			2Q14			30.6.15			30.6.14
Net interest income		282			263		232			7			22			545			454
Recurring net fee income		1,140			1,124		1,032			1			10			2,263			2,028
Transaction-based income		398			410		412			(3	)		(3	)		807			832
Other income		3			5		10			(40	)		(70	)		8			15
Income		1,823			1,801		1,686			1			8			3,624			3,330
Credit loss (expense) / recovery		0			0		(2	)					(100	)		0			15

Total operating income		1,823			1,801		1,684			1			8			3,624			3,345

Personnel expenses		1,122			1,123		1,053			0			7			2,245			2,073
Financial advisor compensation²		702			693		659			1			7			1,396			1,289
Compensation commitments with recruited financial advisors³		176			177		163			(1	)		8			353			323
Salaries and other personnel costs		244			253		231			(4	)		6			497			461
General and administrative expenses		199			120		136			66			46			319			260
Services (to) / from other business divisions and Corporate Center		297			293		273			1			9			589			536
of which: services from CC – Services		*293*			289		269			1			9			583			528
Depreciation and impairment of property, equipment and software		1			1		0			0						1			0
Amortization and impairment of intangible assets		12			12		12			0			0			25			23

Total operating expenses⁴		1,631			1,548		1,473			5			11			3,179			2,892

Business division operating profit / (loss) before tax		191			253		211			(25	)		(9	)		445			453

Key performance indicators⁵
Pre-tax profit growth (%)		(24.5	)		19.9		(12.8	)								(1.8	)		6.1
Cost / income ratio (%)		89.5			86.0		87.4									87.7			86.8
Net new money growth (%)		(0.3	)		1.8		(1.0	)								0.8			(0.1	)
Gross margin on invested assets (bps)		73			70		76			4			(4	)		72			76
Net margin on invested assets (bps)		8			10		10			(20	)		(20	)		9			10

Additional information
Recurring income		1,422			1,387		1,264			3			13			2,808			2,482
Recurring income as a % of income (%)		78.0			77.0		75.0									77.5			74.5
Average attributed equity (CHF billion)⁶		2.4			2.4		2.6			0			(8	)		2.4			2.7
Return on attributed equity (%)		31.8			42.2		32.5									37.1			34.2
Risk-weighted assets (fully applied, CHF billion)⁷		21.5			21.8		24.8			(1	)		(13	)		21.5			24.8
Risk-weighted assets (phase-in, CHF billion)⁷		21.5			21.9		25.0			(2	)		(14	)		21.5			25.0
Return on risk-weighted assets, gross (%)⁸		33.6			32.9		27.2									33.2			27.0
Leverage ratio denominator (phase-in, CHF billion)⁹		56.8			56.3		56.5			1			1			56.8			56.5
Goodwill and intangible assets (CHF billion)		3.5			3.6		3.4			(3	)		3			3.5			3.4
Net new money (CHF billion)		(0.7	)		4.6		(2.2	)								3.9			(0.3	)
Net new money including interest and dividend income (CHF billion)¹⁰		4.8			9.8		2.8									14.6			9.6
Invested assets (CHF billion)		977			1,021		902			(4	)		8			977			902
Client assets (CHF billion)		1,028			1,073		951			(4	)		8			1,028			951
Loans, gross (CHF billion)		44.2			44.2		37.0			0			19			44.2			37.0
Due to customers (CHF billion)		68.6			72.4		59.9			(5	)		15			68.6			59.9
Recruitment loans to financial advisors		2,668			2,791		2,647			(4	)		1			2,668			2,647
Other loans to financial advisors		425			473		356			(10	)		19			425			356
Personnel (full-time equivalents)		13,235			13,275		13,558			0			(2	)		13,235			13,558
Financial advisors (full-time equivalents)		6,948			6,982		7,119			0			(2	)		6,948			7,119


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 16 of 37


				Investor Relations
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1	Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies.

2	Financial advisor compensation consists of grid-based compensation based directly on compensable revenues generated by financial advisors and supplemental compensation calculated based on financial advisor productivity, firm tenure, assets and other variables.

3	Compensation commitments with recruited financial advisors represents charges related to compensation commitments granted to financial advisors at the time of recruitment which are subject to vesting requirements.

4	Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges.

5	Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators.

6	Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework.

7	Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of this report for more information.

8	Based on phase-in Basel III risk-weighted assets.

9	In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information.

10	Presented in line with historical reporting practice in the US market.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 17 of 37


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Retail & Corporate¹


	As of or for the quarter ended									% change from						Year-to-date
CHF million, except where indicated	30.6.15			31.3.15			30.6.14			1Q15			2Q14			30.6.15			30.6.14
Net interest income		560			568			541			(1	)		4			1,128			1,063
Recurring net fee income		135			134			138			1			(2	)		269			283
Transaction-based income		241			284			247			(15	)		(2	)		525			481
Other income		21			13			20			62			5			35			39
Income		956			1,000			945			(4	)		1			1,956			1,866
Credit loss (expense) / recovery		(4	)		(21	)		(8	)		(81	)		(50	)		(25	)		4

Total operating income		952			979			938			(3	)		1			1,931			1,870

Personnel expenses		221			226			216			(2	)		2			447			440
General and administrative expenses		64			53			97			21			(34	)		117			157
Services (to) / from other business divisions and Corporate Center		265			268			267			(1	)		(1	)		534			525
of which: services from CC – Services		*292*			292			293			0			0			584			581
Depreciation and impairment of property, equipment and software		4			4			4			0			0			8			8
Amortization and impairment of intangible assets		0			0			0									0			0

Total operating expenses²		555			552			584			1			(5	)		1,106			1,130

Business division operating profit / (loss) before tax		397			427			354			(7	)		12			824			740

Key performance indicators³
Pre-tax profit growth (%)		(7.0	)		25.6			(8.3	)								11.4			2.2
Cost / income ratio (%)		58.1			55.2			61.8									56.5			60.6
Net interest margin (bps)		164			165			158			(1	)		4			165			155
Net new business volume growth for retail business (%)		3.1			3.1			2.5									3.2			3.4

Additional information
Average attributed equity (CHF billion)⁴		3.9			4.0			4.1			(3	)		(5	)		4.0			4.2
Return on attributed equity (%)		40.7			42.7			34.5									41.7			35.7
Risk-weighted assets (fully applied, CHF billion)⁵		34.7			34.6			31.5			0			10			34.7			31.5
Risk-weighted assets (phase-in, CHF billion)⁵		34.7			35.6			33.0			(3	)		5			34.7			33.0
Return on risk-weighted assets, gross (%)⁶		10.9			11.4			11.4									11.2			11.3
Leverage ratio denominator (phase-in, CHF billion)⁷		162.4			163.7			164.8			(1	)		(1	)		162.4			164.8
Goodwill and intangible assets (CHF billion)		0.0			0.0			0.0									0.0			0.0
Business volume for retail business (CHF billion)		144			143			142			1			1			144			142
Net new business volume for retail business (CHF billion)		1.1			1.1			0.9									2.3			2.4
Client assets (CHF billion)		435			441			415			(1	)		5			435			415
Due to customers (CHF billion)		129.4			131.3			131.6			(1	)		(2	)		129.4			131.6
Loans, gross (CHF billion)		135.8			137.3			137.3			(1	)		(1	)		135.8			137.3
Secured loan portfolio as a % of total loan portfolio, gross (%)		93.4			93.2			93.0									93.4			93.0
Impaired loan portfolio as a % of total loan portfolio, gross (%)⁸		0.7			0.8			0.6									0.7			0.6
Personnel (full-time equivalents)		5,086			5,157			5,210			(1	)		(2	)		5,086			5,210

1	Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies.

2	Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges.

3	Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators.

4	Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework.

5	Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of this report for more information.

6	Based on phase-in Basel III risk-weighted assets.

7	In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information.

8	Refer to the “Risk management and control” section of this report for more information on impairment ratios.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 18 of 37


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Global Asset Management¹


	As of or for the quarter ended									% change from						Year-to-date
CHF million, except where indicated	30.6.15			31.3.15			30.6.14			1Q15			2Q14			30.6.15			30.6.14
Net management fees²		456			443			427			3			7			900			831
Performance fees		20			68			38			(71	)		(47	)		87			85

Total operating income		476			511			465			(7	)		2			987			916

Personnel expenses		175			167			153			5			14			342			301
General and administrative expenses		55			55			92			0			(40	)		110			158
Services (to) / from other business divisions and Corporate Center		114			119			112			(4	)		2			233			224
of which: services from CC – Services		*118*			123			115			(4	)		3			241			231
Depreciation and impairment of property, equipment and software		0			0			0									1			1
Amortization and impairment of intangible assets		1			2			2			(50	)		(50	)		3			4

Total operating expenses³		346			343			359			1			(4	)		688			688

Business division operating profit / (loss) before tax		130			168			105			(23	)		24			299			228
Key performance indicators⁴
Pre-tax profit growth (%)		(22.6	)		97.6			(13.9	)								31.1			(30.5	)
Cost / income ratio (%)		72.7			67.1			77.2									69.7			75.1
Net new money growth excluding money market flows (%)		5.5			5.0			8.7									5.3			9.5
Gross margin on invested assets (bps)		29			31			31			(6	)		(6	)		30			31
Net margin on invested assets (bps)		8			10			7			(20	)		14			9			8
Information by business line
Operating Income
Traditional investments		279			276			270			1			3			555			531
O’Connor and A&Q		38			80			61			(53	)		(38	)		119			127
Global real estate		92			93			80			(1	)		15			185			153
Infrastructure and private equity		15			14			11			7			36			29			20
Fund services		51			48			43			6			19			99			85

Total operating income		476			511			465			(7	)		2			987			916

Gross margin on invested assets (bps)
Traditional investments		20			19			20			5			0			20			20
O’Connor and A&Q		41			89			80			(54	)		(49	)		65			86
Global real estate		78			80			79			(3	)		(1	)		79			75
Infrastructure and private equity		67			62			52			8			29			64			48

Total gross margin		29			31			31			(6	)		(6	)		30			31

Net new money (CHF billion)
Traditional investments		6.3			2.4			6.1									8.7			13.5
O’Connor and A&Q		1.3			2.2			1.4									3.5			3.2
Global real estate		1.3			0.5			0.6									1.8			1.0
Infrastructure and private equity		0.1			0.0			0.0									0.1			(0.1	)

Total net new money		9.0			5.1			8.0									14.1			17.6

Net new money excluding money market flows		8.3			7.5			11.6									15.8			24.6
of which: from third parties		*5.3*			2.5			8.7									7.8			17.7
of which: from UBS’s wealth management businesses		*3.0*			5.1			2.9									8.0			6.9
Money market flows		0.7			(2.4	)		(3.6	)								(1.7	)		(7.0	)
of which: from third parties		*1.7*			(1.2	)		(0.4	)								0.5			(1.1	)
of which: from UBS’s wealth management businesses		*(1.0*	)		(1.2	)		(3.2	)								(2.2	)		(5.8	)
Invested assets (CHF billion)
Traditional investments		557			568			540			(2	)		3			557			540
O’Connor and A&Q		37			37			31			0			19			37			31
Global real estate		47			47			41			0			15			47			41
Infrastructure and private equity		9			9			9			0			0			9			9

Total invested assets		650			661			621			(2	)		5			650			621

of which: excluding money market funds		*592*			601			563			(1	)		5			592			563
of which: money market funds		58			60			58			(3	)		0			58			58

Assets under administration by fund services
Assets under administration (CHF billion)²		520			521			470			0			11			520			470
Net new assets under administration (CHF billion)³		11.6			5.8			8.2									17.3			25.0
Gross margin on assets under administration (bps)		4			4			4			0			0			4			4

Additional information
Average attributed equity (CHF billion)⁴		1.6			1.7			1.7			(6	)		(6	)		1.7			1.7
Return on attributed equity (%)		32.5			39.5			24.7									36.2			26.8
Risk-weighted assets (fully applied, CHF billion)⁵		3.4			3.5			3.5			(3	)		(3	)		3.4			3.5
Risk-weighted assets (phase-in, CHF billion)⁵		3.4			3.5			3.6			(3	)		(6	)		3.4			3.6
Return on risk-weighted assets, gross (%)⁶		55.2			55.2			51.7									55.2			50.2
Leverage ratio denominator (phase-in, CHF billion)⁷		14.2			14.0			14.2			1			0			14.2			14.2
Goodwill and intangible assets (CHF billion)		1.3			1.4			1.4			(7	)		(7	)		1.3			1.4
Personnel (full-time equivalents)		2,434			2,369			2,260			3			8			2,434			2,260


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 19 of 37


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1	Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies.

Net management fees include transaction fees, fund administration revenues (including net interest and trading income from lending activities and foreign exchange hedging as part of the fund services offering), gains or losses from seed money and co-investments, funding costs and other items that are not performance fees.

3	Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges.

Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators. In the second quarter of 2014, the definition of the net new money growth key performance indicator was amended. Refer to the “Regulatory and legal developments and financial reporting changes” section of our second quarter 2014 report for more information.

5	This includes UBS and third-party fund assets, for which the fund services unit provides professional services, including fund set-up, accounting and reporting for traditional investment funds and alternative funds.

6	Inflows of assets under administration from new and existing funds less outflows from existing funds or fund exits.

7	Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework.

8	Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of this report for more information.

9	Based on phase-in Basel III risk-weighted assets.

10	In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 20 of 37


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Investment Bank¹


	As of or for the quarter ended								% change from						Year-to-date
CHF million, except where indicated	30.6.15			31.3.15		30.6.14			1Q15			2Q14			30.6.15			30.6.14
Corporate Client Solutions		822			779		981			6			(16	)		1,601			1,748
Advisory		184			172		165			7			12			356			318
Equity Capital Markets		337			306		349			10			(3	)		643			545
Debt Capital Markets		180			143		371			26			(51	)		323			674
Financing Solutions		106			119		113			(11	)		(6	)		225			239
Risk Management		15			39		(17	)		(62	)					54			(28	)
Investor Client Services		1,540			1,877		1,293			(18	)		19			3,417			2,725
Equities		1,128			1,156		869			(2	)		30			2,284			1,890
Foreign Exchange, Rates and Credit		413			721		424			(43	)		(3	)		1,133			836
Income		2,363			2,655		2,274			(11	)		4			5,018			4,473
Credit loss (expense) / recovery		(8	)		2		(6	)					33			(6	)		(6	)

Total operating income		2,355			2,657		2,268			(11	)		4			5,012			4,468

Personnel expenses		940			1,008		875			(7	)		7			1,948			1,786
General and administrative expenses		162			189		179			(14	)		(9	)		351			353
Services (to) / from other business divisions and Corporate Center		685			681		641			1			7			1,366			1,305
of which: services from CC – Services		*669*			667		635			0			5			1,336			1,284
Depreciation and impairment of property, equipment and software		6			6		6			0			0			13			20
Amortization and impairment of intangible assets		11			7		3			57			267			18			6

Total operating expenses²		1,804			1,891		1,704			(5	)		6			3,695			3,469

Business division operating profit / (loss) before tax		551			766		564			(28	)		(2	)		1,317			999

Key performance indicators³
Pre-tax profit growth (%)		(28.1	)		253.0		29.7									31.8			(39.3	)
Cost / income ratio (%)		76.3			71.2		74.9									73.6			77.6
Return on attributed equity (%)		30.2			42.0		30.5									36.1			26.1
Return on assets, gross (%)		3.3			3.6		3.7									3.5			3.7
Average VaR (1-day, 95% confidence, 5 years of historical data)		11			13		11			(15	)		0			12			12

Additional information

Total assets (CHF billion)²		263.8			303.2		244.8			(13	)		8			263.8			244.8

Funded assets (CHF billion)³		176.2			174.6		181.9			1			(3	)		176.2			181.9
Average attributed equity (CHF billion)⁴		7.3			7.3		7.4			0			(1	)		7.3			7.7
Risk-weighted assets (fully applied, CHF billion)⁵		63.3			64.1		68.0			(1	)		(7	)		63.3			68.0
Risk-weighted assets (phase-in, CHF billion)⁵		63.3			64.2		68.3			(1	)		(7	)		63.3			68.3
Return on risk-weighted assets, gross (%)⁶		14.8			16.2		13.9									15.5			14.0
Leverage ratio denominator (phase-in, CHF billion)⁷		289.9			294.2		278.2			(1	)		4			289.9			278.2
Goodwill and intangible assets (CHF billion)		0.1			0.1		0.1			0			0			0.1			0.1
Compensation ratio (%)		39.8			38.0		38.5									38.8			39.9
Impaired loan portfolio as a % of total loan portfolio, gross (%)⁸		0.2			0.2		0.3									0.2			0.3
Personnel (full-time equivalents)		5,192			5,276		5,167			(2	)		0			5,192			5,167

1	Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to retrospective adoption of new accounting standards or changes in accounting policies.

2	Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges.

3	Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators.

4	Based on third-party view, i.e., without intercompany balances.

5	Funded assets are defined as total IFRS balance sheet assets less positive replacement values (PRV) and collateral delivered against over-the-counter (OTC) derivatives.

6	Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework.

7	Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of this report for more information.

8	Based on phase-in Basel III risk-weighted assets.

9	In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information.

10	Refer to the “Risk management and control” section of this report for more information on impairment ratios.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 21 of 37


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Corporate Center¹


	As of or for the quarter ended									% change from						Year-to-date
CHF million, except where indicated	30.6.15			31.3.15			30.6.14			1Q15			2Q14			30.6.15			30.6.14
Total operating income		131			646			(129	)		(80	)					778			(59	)

Personnel expenses		1,011			988			941			2			7			1,999			1,977
General and administrative expenses		1,081			1,185			943			(9	)		15			2,266			2,008
Services (to) / from business divisions		(1,895	)		(1,882	)		(1,829	)		1			4			(3,776	)		(3,630	)
Depreciation and impairment of property, equipment and software		196			207			185			(5	)		6			403			365
Amortization and impairment of intangible assets		5			5			2			0			150			11			3

Total operating expenses²		399			504			242			(21	)		65			903			723

Operating profit / (loss) before tax		(267	)		142			(371	)					(28	)		(125	)		(782	)

Additional information
Average attributed equity (CHF billion)³		25.9			26.1			20.5			(1	)		26			26.0			20.9

Total assets (CHF billion)⁴		351.0			407.2			414.9			(14	)		(15	)		351.0			414.9

Risk-weighted assets (fully applied, CHF billion)⁵		61.1			66.8			76.7			(9	)		(20	)		61.1			76.7
Risk-weighted assets (phase-in, CHF billion)⁵		63.4			68.1			77.5			(7	)		(18	)		63.4			77.5
Leverage ratio denominator (phase-in, CHF billion)⁶		296.1			319.9			344.0			(7	)		(14	)		296.1			344.0
Personnel (full-time equivalents)		23,443			23,670			23,649			(1	)		(1	)		23,443			23,649

1	Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies.

2	Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges.

3	Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework.

4	Based on third-party view, i.e., without intercompany balances.

5	Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of this report for more information.

6	In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 22 of 37


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Corporate Center – Services¹


	As of or for the quarter ended									% change from						Year-to-date
CHF million, except where indicated	30.6.15			31.3.15			30.6.14			1Q15			2Q14			30.6.15			30.6.14
Total operating income		(41	)		374			5									333			14

Personnel expenses		965			950			903			2			7			1,915			1,898
General and administrative expenses		1,027			1,139			841			(10	)		22			2,166			1,818
Depreciation and impairment of property, equipment and software		196			207			185			(5	)		6			403			365
Amortization and impairment of intangible assets		5			5			1			0			400			11			2

Total operating expenses before allocations to business divisions and other CC units		2,194			2,301			1,930			(5	)		14			4,495			4,084

Services (to) / from business divisions and other CC units		(1,982	)		(1,964	)		(1,935	)		1			2			(3,946	)		(3,854	)
of which: services to Wealth Management		*(519*	)		(508	)		(522	)		2			(1	)		(1,027	)		(1,008	)
of which: services to Wealth Management Americas		*(293*	)		(289	)		(269	)		1			9			(583	)		(528	)
of which: services to Retail & Corporate		*(292*	)		(292	)		(293	)		0			0			(584	)		(581	)
of which: services to Global Asset Management		*(118*	)		(123	)		(115	)		(4	)		3			(241	)		(231	)
of which: services to Investment Bank		*(669*	)		(667	)		(635	)		0			5			(1,336	)		(1,284	)
of which: services to CC – Group ALM		*(19*	)		(14	)		(20	)		36			(5	)		(34	)		(40	)
of which: services to CC – Non-core and Legacy Portfolio		*(79*	)		(80	)		(87	)		(1	)		(9	)		(159	)		(193	)

Total operating expenses²		212			337			(5	)		(37	)					549			230

Operating profit / (loss) before tax		(253	)		37			10									(217	)		(215	)

Additional information
Average attributed equity (CHF billion)³		1.5			1.2			1.0			25			50			1.4			1.0

Total assets (CHF billion)⁴		19.3			19.5			17.3			(1	)		12			19.3			17.3

Risk-weighted assets (fully applied, CHF billion)⁵		20.3			23.2			17.9			(13	)		13			20.3			17.9
Risk-weighted assets (phase-in, CHF billion)⁵		22.6			24.5			18.7			(8	)		21			22.6			18.7
Leverage ratio denominator (phase-in, CHF billion)⁶		9.5			4.3			5.4			121			76			9.5			5.4
Personnel (full-time equivalents)		23,221			23,424			23,368			(1	)		(1	)		23,221			23,368

1	Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to retrospective adoption of new accounting standards or changes in accounting policies.

2	Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges.

3	Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework.

4	Based on third-party view, i.e., without intercompany balances.

5	Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of this report for more information.

6	In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 23 of 37


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Corporate Center – Group ALM¹


	As of or for the quarter ended									% change from						Year-to-date
CHF million, except where indicated	30.6.15			31.3.15			30.6.14			1Q15			2Q14			30.6.15			30.6.14
Gross income excluding own credit		70			376			205			(81	)		(66	)		445			372
Allocations to business divisions and other CC units		(191	)		(289	)		(243	)		(34	)		(21	)		(480	)		(449	)
of which: Wealth Management		*(105*	)		(131	)		(105	)		(20	)		0			(236	)		(202	)
of which: Wealth Management Americas		*(29*	)		(23	)		(27	)		26			7			(52	)		(54	)
of which: Retail & Corporate		*(88*	)		(122	)		(107	)		(28	)		(18	)		(210	)		(196	)
of which: Global Asset Management		(4	)		(5	)		(7	)		(20	)		(43	)		(9	)		(12	)
of which: Investment Bank		52			34			31			53			68			86			67
of which: CC – Services		*(31*	)		(54	)		(52	)		(43	)		(40	)		(86	)		(105	)
of which: CC – Non-core and Legacy Portfolio		15			12			24			25			(38	)		27			52
Own credit²		259			226			72			15			260			486			160

Total operating income		138			313			33			(56	)		318			451			83

Personnel expenses		7			8			7			(13	)		0			15			10
General and administrative expenses		4			4			7			0			(43	)		8			9
Depreciation and impairment of property, equipment and software		0			0			0									0			0
Amortization and impairment of intangible assets		0			0			0									0			0
Services (to) / from business divisions and other CC units		(5	)		(15	)		(11	)		(67	)		(55	)		(20	)		(24	)
of which: Wealth Management		(6	)		(8	)		(4	)		(25	)		50			(13	)		(9	)
of which: Wealth Management Americas		(1	)		(1	)		(1	)		0			0			(2	)		(3	)
of which: Retail & Corporate		(3	)		(4	)		(2	)		(25	)		50			(7	)		(4	)
of which: Global Asset Management		0			0			(1	)					(100	)		0			(1	)
of which: Investment Bank		(9	)		(11	)		(13	)		(18	)		(31	)		(20	)		(27	)
of which: CC – Services		19			14			20			36			(5	)		34			40
of which: CC – Non-core and Legacy Portfolio		(5	)		(6	)		(10	)		(17	)		(50	)		(11	)		(20	)

Total operating expenses³		7			(4	)		3						133			2			(5	)

Operating profit / (loss) before tax		132			317			31			(58	)		326			449			88

Additional information
Average attributed equity (CHF billion)⁴		3.3			3.4			3.3			(3	)		0			3.4			3.2

Total assets (CHF billion)⁵		218.3			227.6			213.7			(4	)		2			218.3			213.7

Risk-weighted assets (fully applied, CHF billion)⁶		9.2			7.9			6.9			16			33			9.2			6.9
Risk-weighted assets (phase-in, CHF billion)⁶		9.2			7.9			6.9			16			33			9.2			6.9
Leverage ratio denominator (phase-in, CHF billion)⁷		216.2			231.4			217.7			(7	)		(1	)		216.2			217.7
Personnel (full-time equivalents)		122			122			121			0			1			122			121

1	Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to retrospective adoption of new accounting standards or changes in accounting policies.

Represents own credit changes on financial liabilities designated at fair value through profit or loss. The cumulative own credit gain for such debt held on 30 June 2015 amounts to CHF 0.2 billion. This gain has reduced the fair value of financial liabilities designated at fair value recognized on our balance sheet. Refer to “Note 10 Fair value measurement” in the “Financial information” section of this report for more information.

3	Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges.

4	Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework.

5	Based on third-party view, i.e., without intercompany balances.

6	Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of this report for more information.

7	In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 24 of 37


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Corporate Center – Non-core and Legacy Portfolio¹


	As of or for the quarter ended									% change from						Year-to-date
CHF million, except where indicated	30.6.15			31.3.15			30.6.14			1Q15			2Q14			30.6.15			30.6.14
Income		35			(43	)		(166	)								(8	)		(154	)
Credit loss (expense) / recovery²		0			2			(2	)		(100	)		(100	)		2			(2	)

Total operating income		35			(41	)		(168	)								(6	)		(156	)

Personnel expenses		38			31			32			23			19			69			69
General and administrative expenses		50			42			95			19			(47	)		92			180
Services (to) / from business divisions and other CC units		92			97			118			(5	)		(22	)		190			248
of which: services from CC – Services		79			80			87			(1	)		(9	)		159			193
Depreciation and impairment of property, equipment and software		0			0			0									0			0
Amortization and impairment of intangible assets		0			0			0									0			1

Total operating expenses³		180			171			245			5			(27	)		351			499

Operating profit / (loss) before tax		(145	)		(212	)		(412	)		(32	)		(65	)		(357	)		(654	)

Additional information
Average attributed equity (CHF billion)⁴		2.9			3.3			5.1			(12	)		(43	)		3.1			5.6

Total assets (CHF billion)⁵		113.4			160.1			183.9			(29	)		(38	)		113.4			183.9

Risk-weighted assets (fully applied, CHF billion)⁶		31.6			35.7			51.9			(11	)		(39	)		31.6			51.9
Risk-weighted assets (phase-in, CHF billion)⁶		31.6			35.7			51.9			(11	)		(39	)		31.6			51.9
Leverage ratio denominator (phase-in, CHF billion)⁷		70.4			84.2			120.8			(16	)		(42	)		70.4			120.8
Personnel (full-time equivalents)		101			125			160			(19	)		(37	)		101			160

1	Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to retrospective adoption of new accounting standards or changes in accounting policies.

2	Includes credit loss (expense) / recovery on reclassified and acquired securities.

3	Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges.

4	Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework.

5	Based on third-party view, i.e., without intercompany balances.

6	Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of this report for more information.

7	In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 25 of 37


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Risk measures and performance

30.6.15

Wealth
Management

Wealth
Management
Americas

Retail &
Corporate

Global
Asset
Management

Investment
Bank

CC –
Services

CC –
Group ALM

CC –
Non-core
and Legacy
Portfolio

CHF billion, as of or for the quarter ended

Risk-weighted assets (fully applied)¹

25.8

21.5

34.7

3.4

63.3

20.3

9.2

31.6

of which: credit risk

12.8

7.8

33.1

2.4

35.3

1.6

5.5

8.8

of which: market risk

0.0

1.3

0.0

10.7

(5.6

)²

3.5

2.8

of which: operational risk

12.9

12.3

1.6

0.9

17.3

9.5

0.1

20.0

Leverage ratio denominator (fully applied)³

129.7

56.8

162.4

14.2

289.9

4.8

216.2

70.4

Risk-based capital^{4, 5}

1.3

1.2

3.3

0.4

7.4

2.0

4.2

2.9

Average tangible attributed equity⁶

2.7

1.8

3.9

0.4

7.2

1.5

3.2

2.9

Total assets

124.6

55.3

141.3

14.2

263.8

19.3

218.3

113.4

Operating profit / (loss) before tax (adjusted)⁷

0.8

0.2

0.4

0.1

0.6

(0.3

)

(0.1

)

(0.1

)

31.3.15

Wealth
Management

Wealth
Management
Americas

Retail &
Corporate

Global
Asset
Management

Investment
Bank

CC –
Services

CC –
Group ALM

CC –
Non-core
and Legacy
Portfolio

CHF billion, as of or for the quarter ended

Risk-weighted assets (fully applied)¹

25.7

21.8

34.6

3.5

64.1

23.2

7.9

35.7

of which: credit risk

12.6

8.4

33.0

2.5

33.9

1.2

4.6

11.7

of which: market risk

0.0

1.1

0.0

11.6

(4.7

)²

3.2

3.9

of which: operational risk

12.9

12.3

1.5

0.9

18.5

12.4

0.1

20.1

Leverage ratio denominator (fully applied)³

134.2

56.3

163.7

14.0

294.2

(1.0

)

231.4

84.2

Risk-based capital^{4, 5}

1.4

1.3

3.3

0.3

6.6

1.3

5.0

3.2

Average tangible attributed equity⁶

2.8

1.8

4.0

0.4

7.1

1.2

3.3

Total assets

125.5

55.7

143.3

14.1

303.2

19.5

227.6

160.1

Operating profit / (loss) before tax (adjusted)⁷

0.9

0.3

0.4

0.2

0.8

(0.2

)

0.1

(0.2

)

1	Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of this report for more information.

2	Negative market risk numbers are due to the diversification effect allocated to CC – Services.

3	Refer to the “Capital management” section of this report for more information.

4	Refer to “Statistical measures” in the “Risk management and control” section of our Annual Report 2014 for more information on risk-based capital.

5	Excludes CHF 8.2 billion (31 March 2015: CHF 7.9 billion) of centrally-held RBC items in the Corporate Center. For equity attribution, these RBC items are not allocated to the business divisions or Corporate Center units.

Excludes CHF 14.6 billion (31 March 2015: CHF 14.5 billion) of centrally-held average tangible equity attribution items within the Corporate Center relating to common equity not allocated to the business divisions or Corporate Center units. Refer to the “Capital management” section of this report for more information on our equity attribution framework.

7	Adjusted results are non-GAAP financial measures as defined by SEC Regulations. Refer to the table “Adjusted results” in the “Group performance” section of this report for more information.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 26 of 37


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Swiss SRB Basel III available capital versus capital requirements (phase-in)

Capital ratio (%)

Capital

CHF million, except where indicated

Requirement¹

Actual^2,3

Requirement

Actual^2,3

30.6.15

31.3.15

31.12.14

30.6.15

31.3.15

31.12.14

Base capital (common equity tier 1 capital)

4.5

4.5

4.0

9,544

9,871

8,835

Buffer capital (common equity tier 1 capital and high-trigger loss-absorbing capital)

5.3

⁴

15.0

15.3

15.4

11,233

31,711

33,528

34,027

of which: effect of countercyclical buffer

0.2

0.2

0.1

364

369

322

Progressive buffer capital (low-trigger loss-absorbing capital)

2.8

4.7

5.2

6,005

9,869

11,377

11,398

Phase-out capital (tier 2 capital)

0.8

0.9

1,798

1,976

2,050

Total

12.6

25.0

25.9

25.5

26,782

52,923

56,752

56,310

The total capital ratio requirement of 12.6% is the current phase-in requirement according to the Swiss Capital Adequacy Ordinance. Prior to the implementation of the Basel III framework, FINMA also defined a total capital ratio target for UBS Group of 14.4% which will be effective until it is exceeded by the Swiss SRB Basel III phase-in capital requirement.

2	Swiss SRB Basel III CET1 capital exceeding the base capital requirement is allocated to the buffer capital.

3	Since 31 March 2015, high-trigger loss-absorbing capital (LAC) is included in the buffer capital. As of 31 December 2014, high-trigger LAC was included in the progressive buffer capital.

4	CET1 capital can be substituted by high-trigger LAC up to 2.3% in 2015.

Swiss SRB Basel III capital information

Phase-in

Fully applied

CHF million, except where indicated

30.6.15

31.3.15

31.12.14

30.6.15

31.3.15

31.12.14

Tier 1 capital

40,593

43,801

42,863

34,042

33,515

29,408

of which: common equity tier 1 capital

38,706

40,779

42,863

30,265

29,566

28,941

of which: additional tier 1 capital (high-trigger loss-absorbing capital)

1,631

1,684

1,631

1,684

467

of which: additional tier 1 capital (low-trigger loss-absorbing capital)¹

256

1,339

2,145

2,266

Tier 2 capital

12,329

12,950

13,448

10,531

10,975

11,398

of which: high-trigger loss-absorbing capital

918

936

946

918

936

946

of which: low-trigger loss-absorbing capital

9,613

10,038

10,451

9,613

10,038

10,451

of which: phase-out capital

1,798

1,976

2,050

Total capital

52,923

56,752

56,310

44,573

44,490

40,806

Common equity tier 1 capital ratio (%)

18.2

18.6

19.4

14.4

13.7

13.4

Tier 1 capital ratio (%)

19.1

20.0

19.4

16.2

15.5

13.6

Total capital ratio (%)

25.0

25.9

25.5

21.2

20.6

18.9

Risk-weighted assets

212,088

219,358

220,877

209,777

216,385

216,462

Consists on a phase-in basis of low-trigger loss-absorbing capital (30 June 2015: CHF 2,145 million, 31 March 2015: CHF 2,266 million, 31 December 2014: CHF 0 million) and hybrid capital subject to phase-out (30 June 2015: CHF 1,840 million, 31 March 2015: CHF 2,929 million, 31 December 2014: CHF 3,210 million), partly offset by required deductions for goodwill (30 June 2015: CHF 3,729 million, 31 March 2015: CHF 3,855 million, 31 December 2014: CHF 3,677 million).


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Swiss SRB Basel III capital movement


CHF billion	Phase-in			Fully applied
Common equity tier 1 capital as of 31.3.15		40.8			29.6
Movements during the second quarter of 2015:
Operating profit / (loss) before tax		1.7			1.7
Own credit related to financial liabilites designated at fair value and replacement value, net of tax		(0.3	)		(0.3	)
Current tax effect		(0.2	)		(0.2	)
Transitional effect of the accelerated application of IAS 19R treatment of defined benefit plans as of 1.4.15²		(1.8	)
Defined benefit plans		(0.1	)		0.3
Foreign currency translation effects		(0.4	)		(0.3	)
Other¹		(0.9	)		(0.5	)

Total movement		(2.1	)		0.7

Common equity tier 1 capital as of 30.6.15		38.7			30.3
Additional tier 1 capital as of 31.3.15		3.0			3.9
Movements during the second quarter of 2015:
Call of a hybrid capital instrument		(1.0	)
Foreign currency translation effects and other		(0.1	)		(0.2	)

Total movement		(1.1	)		(0.2	)

Additional tier 1 capital as of 30.6.15		1.9			3.8
Tier 2 capital as of 31.3.2015		13.0			11.0
Movements during the second quarter of 2015:
Foreign currency translation effects and other		(0.7	)		(0.5	)

Total movement		(0.7	)		(0.5	)

Tier 2 capital as of 30.6.15		12.3			10.5

Total capital as of 30.6.15		52.9			44.6

Total capital as of 31.3.15		56.8			44.5

1	Includes accruals for capital returns to shareholders.

2	Includes effects related to deferred tax assets recognized for tax loss carry-forwards.


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Reconciliation IFRS equity to Swiss SRB Basel III capital


	Phase-in									Fully applied
CHF million	30.6.15			31.3.15			31.12.14			30.6.15			31.3.15			31.12.14
Equity attributable to UBS Group AG shareholders		50,211			52,359			50,608			50,211			52,359			50,608
Equity attributable to non-controlling interests in UBS AG		1,164			1,370			1,702			1,164			1,370			1,702
Equity attributable to preferred noteholders and other non-controlling interests		1,878			1,928			2,058			1,878			1,928			2,058

Total IFRS equity		53,253			55,656			54,368			53,253			55,656			54,368

Equity attributable to preferred noteholders and other non-controlling interests		(1,878	)		(1,928	)		(2,058	)		(1,878	)		(1,928	)		(2,058	)
Defined benefit plans (before phase-in, as applicable)¹					3,404			3,997			0			(887	)		0
Defined benefit plans, 40% phase-in		0			(1,716	)		(799	)
Deferred tax assets recognized for tax loss carry-forwards (before phase-in, as applicable)											(6,312	)		(7,467	)		(8,047	)
Deferred tax assets recognized for tax loss carry-forwards, 40% phase-in		(2,525	)		(2,991	)		(1,605	)
Deferred tax assets on temporary differences, excess over threshold		(115	)		0			0			(1,040	)		(307	)		(604	)
Goodwill, net of tax, less hybrid capital and loss-absorbing capital²		(2,486	)		(2,570	)		(3,010	)		(6,215	)		(6,426	)		(6,687	)
Intangible assets, net of tax		(351	)		(392	)		(410	)		(351	)		(392	)		(410	)
Unrealized (gains) / losses from cash flow hedges, net of tax		(1,626	)		(2,171	)		(2,156	)		(1,626	)		(2,171	)		(2,156	)
Compensation and own shares-related capital components (not recognized in net profit)		(1,523	)		(1,282	)		(1,219	)		(1,523	)		(1,282	)		(1,219	)
Own credit related to financial liabilities designated at fair value and replacement values, net of tax		(412	)		(130	)		136			(412	)		(130	)		136
Unrealized gains related to financial investments available-for-sale, net of tax		(312	)		(413	)		(384	)		(312	)		(413	)		(384	)
Prudential valuation adjustments		(84	)		(128	)		(123	)		(84	)		(128	)		(123	)
Consolidation scope		(76	)		(77	)		(88	)		(76	)		(77	)		(88	)
Other³		(3,158	)		(4,483	)		(3,786	)		(3,158	)		(4,483	)		(3,786	)
Common equity tier 1 capital		38,706			40,779			42,863			30,265			29,566			28,941
Hybrid capital subject to phase-out		1,840			2,929			3,210
High-trigger loss-absorbing capital		1,631			1,684			467			1,631			1,684			467
Low-trigger loss-absorbing capital		2,145			2,266			0			2,145			2,266			0
Goodwill, net of tax, offset against hybrid capital and loss-absorbing capital		(3,729	)		(3,855	)		(3,677	)
Additional tier 1 capital		1,887			3,022			0			3,777			3,949			467
Tier 1 capital		40,593			43,801			42,863			34,042			33,515			29,408
Tier 2 capital		12,329			12,950			13,448			10,531			10,975			11,398

Total capital		52,923			56,752			56,310			44,573			44,490			40,806

1	Phase-in number net of tax, fully applied number pre-tax.

2	Includes goodwill related to significant investments in financial institutions of CHF 352 million.

3	Includes the net charge for the compensation-related increase in high-trigger loss-absorbing capital for tier 2 and additional tier 1 capital, accruals for capital returns to shareholders and other items.


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Swiss SRB leverage ratio


CHF million, except where indicated	Average 2Q15			Average 1Q15			Average 4Q14
Total on-balance sheet assets¹		970,415			1,042,252			1,038,836

Netting of securities financing transactions		(7,509	)		(7,726	)		(6,141	)
Netting of derivative exposures		(144,420	)		(187,919	)		(184,265	)
Current exposure method (CEM) add-on for derivative exposures		53,025			56,023			63,385
Off-balance sheet items		69,071			76,896			88,750
of which: commitments and guarantees – unconditionally cancellable (10%)		*5,123*			10,085			17,212
of which: commitments and guarantees – other than unconditionally cancellable (100%)		*63,949*			66,811			71,538
Assets of entities consolidated under IFRS but not in regulatory scope of consolidation		18,383			17,625			19,184
Items deducted from Swiss SRB tier 1 capital, phase-in (at period-end)		(9,832	)		(14,903	)		(14,879	)

Total adjusted exposure (leverage ratio denominator), phase-in²		949,134			982,249			1,004,869

Additional items deducted from Swiss SRB tier 1 capital, fully applied (at period-end)		(4,712	)		(5,315	)		(7,047	)

Total adjusted exposure (leverage ratio denominator), fully applied²		944,422			976,934			997,822


	As of
	30.6.15			31.3.15			31.12.14
Common equity tier 1 capital (phase-in)		38,706			40,779			42,863
Loss-absorbing capital (phase-in)		12,419			13,997			11,398
Common equity tier 1 capital including loss-absorbing capital		51,125			54,776			54,260
Swiss SRB leverage ratio phase-in (%)		5.4			5.6			5.4

	As of
	30.6.15			31.3.15			31.12.14
Common equity tier 1 capital (fully applied)		30,265			29,566			28,941
Loss-absorbing capital (fully applied)		14,308			14,924			11,865
Common equity tier 1 capital including loss-absorbing capital		44,573			44,490			40,806
Swiss SRB leverage ratio fully applied (%)		4.7			4.6			4.1

Represent assets recognized on the balance sheet in accordance with IFRS measurement principles, but based on the regulatory scope of consolidation. Refer to the “UBS Group AG consolidated supplemental disclosures required under Basel III Pillar 3 regulations” section of our Annual Report 2014 for more information on the regulatory scope of consolidation.

In accordance with current Swiss SRB leverage ratio requirements, the leverage ratio denominator excludes forward starting repos, securities lending indemnifications and CEM add-ons for exchange-traded derivatives (ETD), both proprietary and agency transactions, and for OTC derivatives with a qualifying central counterparty.


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UBS shares


	UBS Group AG									UBS AG
	As of						% change from			As of						% change from
	30.6.15		31.3.15		30.6.14		31.3.15			30.6.15		31.3.15		30.6.14		31.3.15

Shares outstanding
Shares issued		3,759,320,804		3,739,518,390				1			3,858,408,466		3,844,560,913		3,844,030,621		0
Treasury shares		95,917,796		85,258,884				13			2,139,918		8,714,477		91,236,602		(75	)
Shares outstanding		3,663,403,008		3,654,259,506				0			3,856,268,548		3,835,846,436		3,752,794,019		1
of which: held by UBS Group AG											*3,769,482,155*		3,738,235,457
of which: held by shareholders with a non-controlling interest											*86,786,393*		97,610,979

	UBS Group AG (consolidated)¹									UBS AG (consolidated)
	As of or for the quarter ended						% change from			As of or for the quarter ended						% change from
	30.6.15		31.3.15		30.6.14		31.3.15			30.6.15		31.3.15		30.6.14		31.3.15

Earnings per share (CHF)²
Basic		0.33		0.54		0.21		(39	)		0.31		0.53		0.21		(42	)
Diluted		0.32		0.53		0.21		(40	)		0.31		0.53		0.21		(42	)

Shareholders’ equity (CHF million)
Equity attributable to UBS shareholders		50,211		52,359		49,532		(4	)		51,685		53,815		49,532		(4	)
Less: goodwill and intangible assets³		6,101		6,342		6,229		(4	)		6,242		6,507		6,229		(4	)
Tangible equity attributable to UBS shareholders		44,110		46,017		43,303		(4	)		45,443		47,308		43,303		(4	)

Book value per share (CHF)
Total book value per share		13.71		14.33		13.20		(4	)		13.40		14.03		13.20		(4	)

Tangible book value per share		12.04		12.59		11.54		(4	)		11.78		12.33		11.54		(4	)

Market capitalization and share price
Share price (CHF)		19.83		18.32		16.27		8			19.85		18.30		16.27		8
Market capitalization (CHF million)⁴		74,547		68,508		62,542		9			76,589		70,355		62,542		9

1	As UBS Group AG (consolidated) is considered to be the continuation of UBS AG (consolidated), comparative information for 30 June 2014 is the same for both.

2	Refer to “Note 9 Earnings per share (EPS) and shares outstanding” in the “Financial information” section of this report for more information on UBS Group AG (consolidated) EPS.

3	Goodwill and intangible assets used in the calculation of tangible equity attributable to UBS Group AG shareholders as of 30 June 2015 and 31 March 2015 have been adjusted to reflect the non-controlling interests in UBS AG as of these dates.

4	Market capitalization is calculated based on the total shares issued multiplied by the share price at period end.


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Balance sheet


										% change from
CHF million	30.6.15			31.3.15			31.12.14			31.3.15			31.12.14
Assets
Cash and balances with central banks		84,646			68,854			104,073			23			(19	)
Due from banks		13,343			13,261			13,334			1			0
Cash collateral on securities borrowed		27,689			26,755			24,063			3			15
Reverse repurchase agreements		60,848			79,811			68,414			(24	)		(11	)
Trading portfolio assets		128,476			132,990			138,156			(3	)		(7	)
of which: assets pledged as collateral which may be sold or repledged by counterparties		*50,544*			52,377			56,018			(3	)		(10	)
Positive replacement values		173,681			252,876			256,978			(31	)		(32	)
Cash collateral receivables on derivative instruments		24,842			34,550			30,979			(28	)		(20	)
Financial assets designated at fair value		5,425			5,111			4,951			6			10
Loans		313,852			313,964			315,757			0			(1	)
Financial investments available-for-sale		66,771			71,077			57,159			(6	)		17
Investments in associates		908			950			927			(4	)		(2	)
Property, equipment and software		7,050			6,926			6,854			2			3
Goodwill and intangible assets		6,242			6,507			6,785			(4	)		(8	)
Deferred tax assets		10,000			10,146			11,060			(1	)		(10	)
Other assets		26,394			25,073			22,988			5			15

Total assets		950,168			1,048,850			1,062,478			(9	)		(11	)

Liabilities
Due to banks		13,270			10,294			10,492			29			26
Cash collateral on securities lent		10,652			9,725			9,180			10			16
Repurchase agreements		13,032			14,159			11,818			(8	)		10
Trading portfolio liabilities		32,181			30,132			27,958			7			15
Negative replacement values		171,202			250,861			254,101			(32	)		(33	)
Cash collateral payables on derivative instruments		38,603			47,076			42,372			(18	)		(9	)
Financial liabilities designated at fair value		66,366			70,124			75,297			(5	)		(12	)
Due to customers		377,054			399,113			410,207			(6	)		(8	)
Debt issued		100,558			88,052			91,207			14			10
Provisions		3,594			3,956			4,366			(9	)		(18	)
Other liabilities		70,402			69,702			71,112			1			(1	)

Total liabilities		896,915			993,194			1,008,110			(10	)		(11	)

Equity
Share capital		375			374			372			0			1
Share premium		31,005			32,434			32,590			(4	)		(5	)
Treasury shares		(1,624	)		(1,402	)		(1,393	)		16			17
Retained earnings		25,704			24,779			22,134			4			16
Other comprehensive income recognized directly in equity, net of tax		(5,249	)		(3,826	)		(3,093	)		37			70
Equity attributable to UBS Group AG shareholders		50,211			52,359			50,608			(4	)		(1	)
Equity attributable to non-controlling interests		3,042			3,298			3,760			(8	)		(19	)

Total equity		53,253			55,656			54,368			(4	)		(2	)

Total liabilities and equity		950,168			1,048,850			1,062,478			(9	)		(11	)


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Earnings per share (EPS) and shares outstanding


	As of or for the quarter ended							% change from						As of or year-to-date
	30.6.15		31.3.15		30.6.14			1Q15			2Q14			30.6.15		30.6.14

Basic earnings (CHF million)
Net profit / (loss) attributable to UBS Group AG shareholders		1,209		1,977		792			(39	)		53			3,186		1,846

Diluted earnings (CHF million)
Net profit / (loss) attributable to UBS Group AG shareholders		1,209		1,977		792			(39	)		53			3,186		1,846
Less: (profit) / loss on UBS Group AG equity derivative contracts		0		0		(3	)					(100	)		0		(2	)
Net profit / (loss) attributable to UBS Group AG shareholders for diluted EPS		1,209		1,977		789			(39	)		53			3,186		1,844

Weighted average shares outstanding
Weighted average shares outstanding for basic EPS		3,658,358,904		3,642,212,051		3,752,038,863			0			(2	)		3,650,285,477		3,759,022,348
Effect of dilutive potential shares resulting from notional shares, in-the-money options and warrants outstanding		89,721,119		81,099,757		82,622,660			11			9			85,478,220		84,207,566
Weighted average shares outstanding for diluted EPS		3,748,080,023		3,723,311,808		3,834,661,523			1			(2	)		3,735,763,697		3,843,229,914

Earnings per share (CHF)
Basic		0.33		0.54		0.21			(39	)		57			0.87		0.49
Diluted		0.32		0.53		0.21			(40	)		52			0.85		0.48

Shares outstanding¹
Shares issued		3,759,320,804		3,739,518,390		3,844,030,621			1			(2	)
Treasury shares		95,917,796		85,258,884		91,236,602			13			5
Shares outstanding		3,663,403,008		3,654,259,506		3,752,794,019			0			(2	)

1	As UBS Group AG is considered to be the continuation of UBS AG, UBS AG share information is presented for the comparative period as of 30 June 2014. Refer to “Note 32 Changes in organization” of the UBS Group AG Annual Report 2014 for more information.

The table below outlines the potential shares which could dilute basic earnings per share in the future, but were not dilutive for the periods presented.


							% change from
Number of shares	30.6.15		31.3.15		30.6.14		1Q15			2Q14			30.6.15		30.6.14

Potentially dilutive instruments
Employee share-based compensation awards		73,468,525		79,050,200		101,558,712		(7	)		(28	)		73,468,525		101,558,712
Other equity derivative contracts		6,096,510		7,323,773		10,953,906		(17	)		(44	)		5,392,074		10,796,338

Total		79,565,035		86,373,973		112,512,618		(8	)		(29	)		78,860,599		112,355,050


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Provisions for litigation, regulatory and similar matters by business division and Corporate Center unit


CHF million	Wealth Management			Wealth Management Americas			Retail & Corporate			Global Asset Management			Investment Bank			CC – Services		CC – Group ALM		CC – Non-core and Legacy Portfolio			UBS
Balance as of 31 December 2014		188			209			92			53			1,258			312		0		941			3,053
Balance as of 31 March 2015		182			202			87			50			1,091			303		0		814			2,727
Increase in provisions recognized in the income statement		13			64			0			0			1			0		0		42			119
Release of provisions recognized in the income statement		(3	)		(12	)		0			0			(12	)		0		0		(21	)		(48	)
Provisions used in conformity with designated purpose		(2	)		(16	)		(1	)		(1	)		(326	)		0		0		(12	)		(357	)
Foreign currency translation / unwind of discount		(2	)		(9	)		0			0			(30	)		0		0		(32	)		(73	)
Balance as of 30 June 2015		188			229			86			48			724			302		0		791			2,368


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Additional information

UBS expects to revalue its deferred tax assets (DTA) in the third quarter of 2015 as part of its annual planning process, and may consider extending the forecast period for US DTA recognition to seven years from six years. If a determination to change the forecast period is made, the combined effect of updated business forecasts and the extension of the forecast period for US DTA could result in a net upward DTA revaluation of around CHF 1.5 billion.

Consistent with changes in the manner in which operating segment performance is assessed, beginning in the second quarter of 2015, UBS now applies fair value accounting for certain internal funding transactions between Corporate Center – Group ALM and the Investment Bank and Corporate Center – Non-core and Legacy Portfolio rather than applying amortized cost accounting. This treatment better aligns with the mark-to-market basis on which these internal transactions are risk managed within the Investment Bank and Corporate Center – Non-core and Legacy Portfolio. The terms of the funding transactions remain otherwise unchanged. In connection with this change, UBS now presents own credit gains and losses on financial liabilities designated at fair value in Corporate Center – Group ALM instead of Corporate Center – Services. Prior periods have been restated to reflect these changes.

As a result of ongoing efforts to optimize our legal entity structure, UBS anticipates that some foreign currency translation gains and losses previously booked directly into equity through other comprehensive income will be released into profit and loss due to the sale or closure of branches and subsidiaries. In the second half of 2015, UBS expects to record net foreign currency translation losses of around CHF 120 million related to these disposals, although gains and losses could be recognized in different periods. Consistent with past practice, these gains and losses will be treated as adjusting items. The release of foreign currency translation losses to profit and loss will not affect shareholders’ equity or regulatory capital.

In the second quarter of 2015, UBS’s progressive capital buffer requirement for 2019 was reduced to 4.5% from 5.4%, reflecting updated LRD and market share information for 2014 provided by FINMA in June 2015. As a result UBS’s total capital requirement on a fully-applied basis decreased to 17.5% for 2019 and 12.6% on a phase-in basis as of 30 June 2015.

UBS believes that the industry continues to operate in an environment where charges associated with litigation, regulatory and similar matters will remain elevated for the foreseeable future and the bank continues to be exposed to a number of significant claims and regulatory matters.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 35 of 37


				Investor Relations
				Tel. +41-44-234 41 00
				Media Relations
				Tel. +41-44-234 85 00

Quarterly Report and Presentation

In order to be transparent and counter certain incorrect and misleading information that has become public, UBS chose to release its second quarter 2015 results one day early.

UBS’s second quarter 2015 slide presentation will be available from 06:00 CEST on Monday, 27 July 2015 at www.ubs.com/quarterlyreporting. The Second Quarter Report and letter to shareholders will be available from 06:45 CEST on Tuesday, 28 July 2015 at www.ubs.com/quarterlyreporting.

UBS will hold a presentation of its second quarter 2015 results on Monday, 27 July 2015. The results will be presented by Sergio P. Ermotti, Group Chief Executive Officer, Tom Naratil, Group Chief Financial Officer and Group Chief Operating Officer, Caroline Stewart, Global Head of Investor Relations, and Hubertus Kuelps, Group Head of Communications & Branding.

Time

•

10:00–12.00 (CEST)

•

09:00–11.00 (BST)

•

04:00–06.00 (US EDT)

Audio webcast

The presentation for analysts can be followed live on www.ubs.com/quarterlyreporting with a simultaneous slide show.

Webcast playback

An audio playback of the results presentation will be made available at www.ubs.com/investors later in the day.

UBS Group AG and UBS AG

Investor contact


Switzerland:		+41-44-234 41 00

Media contact


Switzerland:		+41-44-234 85 00
UK:		+44-207-567 47 14
Americas:		+1-212-882 58 57
APAC:		+852-297-1 82 00

www.ubs.com

Cautionary statement regarding forward-looking statements – 2Q15

This release contains statements that constitute “forward-looking statements,” including but not limited to management’s outlook for UBS’s financial performance and statements relating to the anticipated effect of transactions and strategic initiatives on UBS’s business and future development. While these forward-looking statements represent UBS’s judgments and expectations concerning the matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBS’s expectations. These factors include, but are not limited to: (i) the degree to which UBS is successful in executing its announced strategic plans, including its cost reduction and efficiency initiatives and its planned further reduction in its Basel III risk-weighted assets (RWA) and leverage ratio denominator (LRD), and to maintain its stated capital return objective; (ii) developments in the markets in which UBS operates or to which it is exposed,


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 36 of 37


				Investor Relations
				Tel. +41-44-234 41 00
				Media Relations
				Tel. +41-44-234 85 00

including movements in securities prices or liquidity, credit spreads, currency exchange rates and interest rates and the effect of economic conditions and market developments on the financial position or creditworthiness of UBS’s clients and counterparties, and the degree to which UBS is successful in implementing changes to its business to meet changing market, regulatory and other conditions; (iii) changes in the availability of capital and funding, including any changes in UBS’s credit spreads and ratings, or arising from requirements for bail-in debt or loss-absorbing capital; (iv) changes in or the implementation of financial legislation and regulation in Switzerland, the US, the UK and other financial centers that may impose, or result in, more stringent capital (including leverage ratio), liquidity and funding requirements, incremental tax requirements, additional levies, limitations on permitted activities, constraints on remuneration or other measures; (v) uncertainty as to when and to what degree the Swiss Financial Market Supervisory Authority (FINMA) will approve reductions to the incremental RWA resulting from the supplemental operational risk capital analysis mutually agreed to by UBS and FINMA, or will approve a limited reduction of capital requirements due to measures to reduce resolvability risk; (vi) the degree to which UBS is successful in establishing a US intermediate holding company and implementing the US enhanced prudential standards, completing the squeeze-out of minority shareholders of UBS AG, and other changes which UBS may make in its legal entity structure and operating model, including the possible consequences of such changes and other similar changes that have been made previously, and the potential need to make further changes to the legal structure or booking model of UBS Group in response to legal and regulatory requirements, including capital requirements, resolvability requirements and proposals in Switzerland and other countries for mandatory structural reform of banks; (vii) changes in UBS’s competitive position, including whether differences in regulatory capital and other requirements among the major financial centers will adversely affect UBS’s ability to compete in certain lines of business; (viii) changes in the standards of conduct applicable to our businesses that may result from new regulation or new enforcement of existing standards, including measures to impose new or enhanced duties when interacting with customers or in the execution and handling of customer transactions; (ix) the liability to which UBS may be exposed, or possible constraints or sanctions that regulatory authorities might impose on UBS, due to litigation, contractual claims and regulatory investigations; (x) the effects on UBS’s cross-border banking business of tax or regulatory developments and of possible changes in UBS’s policies and practices relating to this business; (xi) UBS’s ability to retain and attract the employees necessary to generate revenues and to manage, support and control its businesses, which may be affected by competitive factors including differences in compensation practices; (xii) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of goodwill, the recognition of deferred tax assets and other matters; (xiii) limitations on the effectiveness of UBS’s internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xiv) whether UBS will be successful in keeping pace with competitors in updating its technology, particularly in trading businesses; (xv) the occurrence of operational failures, such as fraud, misconduct, unauthorized trading and systems failures; (xvi) restrictions to the ability of subsidiaries of the Group to make loans or distributions of any kind, directly or indirectly, to UBS Group AG; and (xvii) the effect that these or other factors or unanticipated events may have on our reputation and the additional consequences that this may have on our business and performance. The sequence in which the factors above are presented is not indicative of their likelihood of occurrence or the potential magnitude of their consequences. Our business and financial performance could be affected by other factors identified in our past and future filings and reports, including those filed with the SEC. More detailed information about those factors is set forth in documents furnished by UBS and filings made by UBS with the SEC, including UBS’s Annual Report on Form 20-F for the year ended 31 December 2014. UBS is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

Adjusted results

Unless otherwise indicated, second-quarter 2015 “adjusted” figures exclude each of the following items, to the extent applicable, on a Group and business division level: an own credit gain of CHF 259 million, a gain of CHF 56 million on the sale of UBS’s Belgian domestic Wealth Management business, a gain from a further partial sale of our investment in Markit of CHF 11 million, as well as net restructuring charges of CHF 191 million and an impairment of an intangible asset of CHF 11 million. For the first quarter of 2015, the items we excluded were an own credit gain of CHF 226 million, gains on sales of real estate of CHF 378 million and a gain of CHF 141 million on the sale of a subsidiary, as well as net restructuring charges of CHF 305 million. Adjusted results are non-GAAP financial measures as defined by SEC regulations. Please refer to the “Group performance” section of the Second Quarter 2015 Report for more information on adjusted results.

Rounding

Numbers presented throughout this release may not add up precisely to the totals provided in the tables and text. Percentages, percent changes and absolute variances are calculated based on rounded figures displayed in the tables and text and may not precisely reflect the percentages, percent changes and absolute variances that would be derived based on figures that are not rounded.

Tables

Within tables, blank fields generally indicate that the field is not applicable or not meaningful, or that information is not available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis.


UBS Group AG and UBS AG, News Release, 27 July 2015		Page 37 of 37

This Form 6-K is hereby incorporated by reference into (1) each of the registration statements of UBS AG on Form F-3 (Registration Number 333-200212) and of UBS Group AG on Form S-8 (Registration Numbers 333-200634; 333-200635; 333-200641; and 333-200665) and Form F-4 (Registration number 333-199011), and into each prospectus outstanding under any of the foregoing registration statements, (2) any outstanding offering circular or similar document issued or authorized by UBS AG that incorporates by reference any Form 6-K’s of UBS AG that are incorporated into its registration statements filed with the SEC, and (3) the base prospectus of Corporate Asset Backed Corporation (“CABCO”) dated June 23, 2004 (Registration Number 333-111572), the Form 8-K of CABCO filed and dated June 23, 2004 (SEC File Number 001-13444), and the Prospectus Supplements relating to the CABCO Series 2004-101 Trust dated May 10, 2004 and May 17, 2004 (Registration Number 033-91744 and 033-91744-05).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


UBS Group AG

By:	/s/ David Kelly
	Name:	David Kelly
	Title:	Managing Director

By:	/s/ Sarah M. Starkweather
	Name:	Sarah M. Starkweather
	Title:	Executive Director

UBS AG

By:	/s/ David Kelly
	Name:	David Kelly
	Title:	Managing Director

By:	/s/ Sarah M. Starkweather
	Name:	Sarah M. Starkweather
	Title:	Executive Director

Date: July 27, 2015

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