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: March 10, 2017
UBS Group AG
Commission File Number: 1-36764
UBS AG
Commission File Number: 1-15060
(Registrants' Names)
Bahnhofstrasse 45, Zurich, Switzerland, and
Aeschenvorstadt 1, Basel, 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.
This Form 6-K consists of the following
legal entity financial information for the year ended 31 December 2016, which
appears immediately following this page:
1. UBS Switzerland AG standalone financial statements for the year
ended 31 December 2016
2. UBS Limited standalone financial and regulatory information for the
financial year 2016
3. UBS Americas Holding LLC consolidated selected financial information
for the financial year 2016
UBS Switzerland AG
Standalone financial statements and
regulatory information
for the year ended 31 December 2016
UBS Switzerland AG standalone financial
statements
(audited)
Income
statement
|
|
|
|
|
|
|
|
|
For the year ended
|
|
% change from
|
CHF million
|
|
Note
|
|
31.12.16
|
|
31.12.15¹
|
|
31.12.15¹
|
Interest and discount income²˒⁴
|
|
|
|
3,795
|
|
2,963
|
|
28
|
Interest and dividend income from trading portfolio
|
|
|
|
1
|
|
0
|
|
|
Interest and dividend income from financial investments
|
|
|
|
94
|
|
54
|
|
74
|
Interest expense³
|
|
|
|
(467)
|
|
(533)
|
|
(12)
|
Gross interest income
|
|
|
|
3,423
|
|
2,484
|
|
38
|
Credit loss (expense) / recovery
|
|
|
|
6
|
|
(4)
|
|
|
Net interest income
|
|
|
|
3,429
|
|
2,480
|
|
38
|
Fee and commission income from securities and investment
business
|
|
|
|
3,272
|
|
2,642
|
|
24
|
Credit-related fees and commissions
|
|
|
|
156
|
|
116
|
|
34
|
Other fee and commission income
|
|
|
|
712
|
|
524
|
|
36
|
Fee and commission expense
|
|
|
|
(359)
|
|
(281)
|
|
28
|
Net fee and commission income
|
|
|
|
3,782
|
|
3,001
|
|
26
|
Net trading income⁴
|
|
3
|
|
805
|
|
735
|
|
10
|
Net income from disposal of financial investments
|
|
|
|
159
|
|
11
|
|
|
Dividend income from investments in subsidiaries and other
participations
|
|
|
|
28
|
|
30
|
|
(7)
|
Income from real estate holdings
|
|
|
|
(1)
|
|
0
|
|
|
Sundry ordinary income
|
|
|
|
198
|
|
103
|
|
92
|
Sundry ordinary expenses
|
|
|
|
(58)
|
|
(66)
|
|
(12)
|
Other income from ordinary activities
|
|
|
|
326
|
|
79
|
|
313
|
Total operating income
|
|
|
|
8,341
|
|
6,295
|
|
33
|
Personnel expenses
|
|
4
|
|
2,109
|
|
1,608
|
|
31
|
General and administrative expenses
|
|
5
|
|
3,469
|
|
2,583
|
|
34
|
Subtotal operating expenses
|
|
|
|
5,578
|
|
4,192
|
|
33
|
Depreciation and impairment of property, equipment and software
|
|
|
|
12
|
|
11
|
|
9
|
Amortization and impairment of goodwill and other intangible
assets
|
|
|
|
1,050
|
|
788
|
|
33
|
Changes in provisions and other allowances and losses
|
|
|
|
5
|
|
15
|
|
(67)
|
Total operating expenses
|
|
|
|
6,644
|
|
5,005
|
|
33
|
Operating profit
|
|
|
|
1,697
|
|
1,290
|
|
32
|
Extraordinary income
|
|
|
|
0
|
|
0
|
|
|
Extraordinary expenses
|
|
|
|
0
|
|
0
|
|
|
Tax expense / (benefit)
|
|
6
|
|
384
|
|
222
|
|
73
|
Net profit / (loss)
|
|
|
|
1,313
|
|
1,068
|
|
23
|
1 The financial year ended 31 December 2015 covers the period 1
April 2015 to 31 December 2015. Refer to “Establishment of UBS Switzerland
AG” in the “Legal entity financial and regulatory information” section of the
UBS Group AG Annual Report 2015 for more information. 2 Interest and
discount income includes negative interest income on financial assets of CHF
111 million and CHF 25 million for the years ended 31 December 2016 and 31
December 2015, respectively. 3 Interest expense includes negative interest
expense on financial liabilities of CHF 136 million and CHF 74 million for
the years ended 31 December 2016 and 31 December 2015, respectively. 4
From 2016, the difference between forward rates and spot rates on certain
short duration foreign exchange derivative contracts which are part of
economic hedge relationships (CHF 280 million) is presented in Interest and
discount income. For 2015, the comparative amount of CHF 205 million is
presented in Net trading income.
|
Balance
sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
% change from
|
CHF million
|
|
Note
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and balances with central banks
|
|
|
|
44,528
|
|
38,701
|
|
15
|
Due from banks
|
|
|
|
4,355
|
|
3,477
|
|
25
|
Receivables from securities financing transactions
|
|
7
|
|
25,930
|
|
23,672
|
|
10
|
of which: cash collateral on
securities borrowed
|
|
|
|
6,657
|
|
7,414
|
|
(10)
|
of which: reverse repurchase
agreements
|
|
|
|
19,273
|
|
16,258
|
|
19
|
Due from customers
|
|
8, 9
|
|
38,168
|
|
38,373
|
|
(1)
|
Mortgage loans
|
|
8, 9
|
|
146,061
|
|
148,492
|
|
(2)
|
Trading portfolio assets
|
|
10
|
|
1,673
|
|
1,736
|
|
(4)
|
Positive replacement values
|
|
11
|
|
2,133
|
|
2,274
|
|
(6)
|
Financial investments
|
|
12
|
|
27,002
|
|
22,878
|
|
18
|
Accrued income and prepaid expenses
|
|
|
|
264
|
|
237
|
|
11
|
Investments in subsidiaries and other participations
|
|
|
|
56
|
|
42
|
|
33
|
Property, equipment and software
|
|
|
|
19
|
|
15
|
|
27
|
Goodwill and other intangible assets
|
|
|
|
3,413
|
|
4,463
|
|
(24)
|
Other assets
|
|
13
|
|
893
|
|
817
|
|
9
|
Total assets
|
|
|
|
294,497
|
|
285,176
|
|
3
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Due to banks
|
|
|
|
13,248
|
|
19,280
|
|
(31)
|
Payables from securities financing transactions
|
|
7
|
|
6,903
|
|
8,997
|
|
(23)
|
of which: cash collateral on
securities lent
|
|
|
|
1,518
|
|
2,493
|
|
(39)
|
of which: repurchase
agreements
|
|
|
|
5,385
|
|
6,505
|
|
(17)
|
Due to customers
|
|
|
|
248,796
|
|
231,294
|
|
8
|
Trading portfolio liabilities
|
|
10
|
|
154
|
|
128
|
|
20
|
Negative replacement values
|
|
11
|
|
1,212
|
|
1,092
|
|
11
|
Bonds issued
|
|
|
|
8,331
|
|
8,274
|
|
1
|
Accrued expenses and deferred income
|
|
|
|
929
|
|
822
|
|
13
|
Other liabilities
|
|
13
|
|
1,276
|
|
963
|
|
33
|
Provisions
|
|
9
|
|
186
|
|
179
|
|
4
|
Total liabilities
|
|
|
|
281,034
|
|
271,027
|
|
4
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Share capital
|
|
16
|
|
10
|
|
10
|
|
0
|
General reserve
|
|
|
|
12,139
|
|
13,072
|
|
(7)
|
of which: statutory capital
reserve
|
|
|
|
12,139
|
|
13,072
|
|
(7)
|
of which: capital
contribution reserve
|
|
|
|
12,139
|
|
13,072
|
|
(7)
|
Voluntary earnings reserve
|
|
|
|
0
|
|
0
|
|
|
Net profit / (loss) for the period
|
|
|
|
1,313
|
|
1,068
|
|
23
|
Total equity
|
|
|
|
13,463
|
|
14,149
|
|
(5)
|
Total liabilities and equity
|
|
|
|
294,497
|
|
285,176
|
|
3
|
of which: subordinated
liabilities
|
|
|
|
4,521
|
|
4,020
|
|
12
|
of which: subject to mandatory
conversion and / or debt waiver
|
|
|
|
4,521
|
|
4,020
|
|
12
|
UBS Switzerland AG standalone financial statements (audited)
Balance
sheet (continued)
|
|
|
|
|
|
|
|
|
|
|
% change from
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
|
|
|
|
|
|
|
Off-balance
sheet items
|
|
|
|
|
|
|
Contingent liabilities,
gross
|
|
9,608
|
|
8,784
|
|
9
|
Sub-participations
|
|
(976)
|
|
(854)
|
|
14
|
Contingent liabilities, net
|
|
8,632
|
|
7,930
|
|
9
|
of which: guarantees to
third parties related to subsidiaries
|
|
7
|
|
9
|
|
(22)
|
of which: credit guarantees
and similar instruments
|
|
3,180
|
|
3,313
|
|
(4)
|
of which: performance
guarantees and similar instruments
|
|
2,442
|
|
2,318
|
|
5
|
of which: documentary
credits
|
|
3,002
|
|
2,291
|
|
31
|
Irrevocable commitments,
gross
|
|
8,780
|
|
7,982
|
|
10
|
Sub-participations
|
|
(2)
|
|
0
|
|
|
Irrevocable commitments, net
|
|
8,778
|
|
7,982
|
|
10
|
of which: loan commitments
|
|
7,906
|
|
7,117
|
|
11
|
of which: payment commitment
related to deposit insurance
|
|
872
|
|
865
|
|
1
|
Liabilities for calls on
shares and other equity instruments
|
|
43
|
|
37
|
|
16
|
Off-balance sheet
items
UBS Switzerland AG is jointly and
severally liable for the combined value added tax (VAT) liability of UBS
entities that belong to the VAT group of UBS in Switzerland. This contingent
liability is not included in the table above.
Swiss deposit insurance
Swiss banking law and the deposit
insurance system require Swiss banks and securities dealers to jointly
guarantee an amount of up to CHF 6 billion for privileged client deposits in
the event that a Swiss bank or securities dealer becomes insolvent. The Swiss
Financial Market Supervisory Authority (FINMA) estimates the share of UBS
Switzerland AG from 1 July 2016 to 30 June 2017 to be CHF 872 million, which is
reflected in the table above.
Joint and several liability
In June 2015, the Personal &
Corporate Banking and Wealth Management businesses booked in Switzerland were
transferred from UBS AG to UBS Switzerland AG through an asset transfer in
accordance with the Swiss Merger Act. Under the Swiss Merger Act, UBS AG
assumed joint liability for obligations existing on the asset transfer date, 14
June 2015, which were transferred to UBS Switzerland AG.
Similarly, under the terms of the asset
transfer agreement UBS Switzerland AG assumed joint liability for approximately
CHF 325 billion of contractual obligations of UBS AG existing on the asset
transfer date, excluding the collateralized portion of secured contractual
obligations and covered bonds. UBS Switzerland AG has no liability for new
obligations incurred by UBS AG after the asset transfer date. Under certain
circumstances, the Swiss Banking Act and the Bank Insolvency Ordinance of FINMA
authorize FINMA to modify, extinguish or convert to common equity liabilities
of a bank in connection with a resolution or insolvency of such bank. The joint
liability amount declines as obligations mature, terminate or are novated
following the asset transfer date. As of 31 December 2016, the joint liability
of UBS Switzerland AG for contractual obligations of UBS AG amounted to CHF 91
billion compared with CHF 136 billion as of December 2015.
As of 31 December 2016, the probability of an
outflow under this joint and several liability was assessed to be remote, and
as a result, the table above does not include any exposures arising under this
joint and several liability.
®
Refer to “Establishment of UBS Switzerland AG” in the “Legal entity
financial and regulatory information” section of the UBS Group AG Annual Report
2015 for more information
Statement
of changes in equity
|
CHF million
|
|
Share capital
|
|
Statutory capital reserve
|
|
Voluntary
earnings reserve
|
|
Net profit / (loss) for the period
|
|
Total equity
|
Balance as of 1 January 2016
|
|
10
|
|
13,072
|
|
0
|
|
1,068
|
|
14,149
|
Dividends and other distributions
|
|
|
|
(932)
|
|
(1,068)
|
|
|
|
(2,000)
|
Net profit / (loss) appropriation
|
|
|
|
|
|
1,068
|
|
(1,068)
|
|
0
|
Net profit / (loss) for the period
|
|
|
|
|
|
|
|
1,313
|
|
1,313
|
Balance as of 31 December
2016
|
|
10
|
|
12,139
|
|
0
|
|
1,313
|
|
13,463
|
In December 2016, an extraordinary
dividend of CHF 2 billion was paid out of the voluntary earnings reserve (CHF
1,068 million) and statutory capital reserve (CHF 932 million) to UBS AG.
Statement of appropriation of retained earnings
Proposed
appropriation of retained earnings
The Board of Directors proposes that
the Annual General Meeting of Shareholders (AGM) on 21 April 2017 approve the
following appropriation of retained earnings.
|
|
|
|
|
For the year ended
|
CHF million
|
|
31.12.16
|
Net profit for the period
|
|
1,313
|
Retained earnings carried forward
|
|
0
|
Total retained earnings
available for appropriation
|
|
1,313
|
|
|
|
Proposed appropriation of
retained earnings
|
|
|
Dividend distribution
|
|
(191)
|
Appropriation to voluntary earnings reserve
|
|
(1,122)
|
Retained earnings carried
forward
|
|
0
|
UBS Switzerland AG standalone financial statements (audited)
Note
1 Name, legal form and registered office
UBS Switzerland AG is incorporated
and domiciled in Switzerland. Its registered office is at Bahnhofstrasse 45,
CH-8001 Zurich, Switzerland. UBS Switzerland AG operates under the Swiss Code
of Obligations and Swiss federal banking law as a corporation limited by shares
(Aktiengesellschaft), a corporation that has issued shares of common stock to
investors. UBS Switzerland AG is 100% owned by UBS AG.
Note
2 Accounting policies
UBS Switzerland AG standalone
financial statements are prepared in accordance with Swiss GAAP (FINMA Circular
2015 / 1 and Banking Ordinance) and represent "reliable assessment
statutory single-entity financial statements". The accounting policies are
principally the same as for the consolidated financial statements of UBS Group
AG outlined in Note 1 to the consolidated financial statements of UBS Group AG
included in the UBS Group AG Annual Report 2016. Major differences between the
Swiss GAAP requirements and International Financial Reporting Standards are
described in Note 36 to the consolidated financial statements of UBS Group AG.
The significant accounting policies applied for the standalone financial
statements of UBS Switzerland AG are discussed below.
®
Refer to the UBS Group AG Annual Report 2016 for more information
Risk management
UBS Switzerland AG is fully
integrated into the Group-wide risk management process described in the audited
part of the “Risk management and control” section of the UBS Group AG Annual
Report 2016.
Further information on the use of derivative
instruments and hedge accounting is provided in Notes 1 and 12 to the
consolidated financial statements of UBS Group AG.
®
Refer to the UBS Group AG Annual Report 2016 for more information
Compensation policy
The compensation structure and
processes of UBS Switzerland AG conform to the compensation principles and
framework of UBS Group AG. For detailed information refer to the Compensation
Report of UBS Group AG.
®
Refer to the UBS Group AG Annual Report 2016 for more information
Foreign currency
translation
Transactions denominated in foreign
currency are translated into Swiss francs at the spot exchange rate on the date
of the transaction. At the balance sheet date, all monetary assets and
liabilities, as well as equity instruments recorded in
Trading
portfolio assets
and
Financial investments
denominated in foreign currency, are translated into Swiss francs using the
closing exchange rate. Non-monetary items measured at historic cost are
translated at the spot exchange rate on the date of the transaction. All
currency translation effects are recognized in the income statement.
The main currency translation rates used by
UBS Switzerland AG are provided in Note 34 to the consolidated financial
statements of UBS Group AG.
®
Refer to the UBS Group AG Annual Report 2016 for more information
Goodwill
As part of the business transfer, mainly
of the Personal & Corporate Banking and Wealth Management businesses booked
in Switzerland, from UBS AG effective 1 April 2015, UBS Switzerland AG
recognized goodwill of CHF 5,250 million. This goodwill is amortized on a straight-line
basis over five years and assessed for impairment annually.
Deferred taxes
Deferred tax assets are not
recognized in UBS Switzerland AG’s standalone financial statements. However,
deferred tax liabilities may be recognized for taxable temporary differences. Changes
in the deferred tax liability balance are recognized in the income statement.
Note
2 Accounting policies
(continued)
Services provided
to and received from subsidiaries, affiliated entities, UBS AG and UBS Group AG
Services provided to and received
from UBS Group AG or any of its subsidiaries are settled in cash as hard cost
transfers or hard revenue transfers paid or received.
When the nature of the underlying transaction
between UBS Switzerland AG and UBS Group AG or any of its subsidiaries contains
a single, clearly identifiable service element, related income and expenses are
presented in the respective income statement line item, e.g.,
Fee and commission income from securities and investment business,
Other fee and commission income, Fee and commission expense, Net trading income
or
General and administrative
expenses.
To
the extent the nature of the underlying transaction contains various service
elements and is not clearly attributable to a particular income statement line
item, related income and expenses are presented in
Sundry ordinary income
and
Sundry ordinary expenses.
®
Refer to Note 5 for more information
Pension and other post-employment
benefit plans
Swiss GAAP permits the use of IFRS or
Swiss accounting standards for pension and other post-employment benefit plans,
with the election made on a plan-by-plan basis.
UBS Switzerland AG has elected to apply Swiss
GAAP (FER 16) for its pension plan. The requirements of
Swiss GAAP are better aligned with the specific nature of Swiss pension plans,
which are hybrid in that they combine elements of defined contribution and
defined benefit plans but are treated as defined benefit plans under IFRS. Swiss GAAP requires that the employer contributions to the pension
fund are recognized as
Personnel
expenses
in the income statement. The employer contributions to the Swiss pension fund are
determined as a percentage of contributory compensation. Furthermore, Swiss
GAAP requires an assessment as to whether, based on the financial statements
of the pension fund prepared in accordance with Swiss accounting standards (FER
26), an economic benefit to, or obligation of, UBS
Switzerland AG arises from the pension fund and is
recognized in the balance sheet when conditions are met.
Conditions for recording a pension asset or liability
would be met if, for example, an employer contribution reserve is available or
UBS Switzerland AG is required to contribute to the reduction of a pension
deficit (on a FER 26 basis).
®
Refer to Note 17 for more information
Subordinated assets and liabilities
Subordinated assets are comprised of
claims that, based on an irrevocable written declaration, in the event of
liquidation, bankruptcy or restructuring of the debtor, rank after the claims
of all other creditors and may not be offset against amounts payable to the
debtor nor secured by its assets. Subordinated liabilities are comprised of
corresponding obligations.
Subordinated assets and liabilities that
contain a point-of-non-viability clause in accordance with Swiss capital
requirements per articles 29 and 30 of the Capital Adequacy Ordinance are disclosed
as being
subject to mandatory conversion and / or debt
waiver
and provide for the claim or the obligation to be written off or
converted into equity in the event that the issuing bank reaches a point of
non-viability.
Dispensations in the standalone
financial statements
As UBS Switzerland AG has no listed
shares outstanding and is within the scope of the UBS Group AG consolidated
financial statements prepared in accordance with IFRS, UBS Switzerland AG is
exempt from various disclosures in the standalone financial statements. The
dispensations include the management report and the statement of cash flows, as
well as various note disclosures.
UBS Switzerland AG standalone financial statements (audited)
Note
3a Net trading income by business
|
|
For the year ended
|
|
% change from
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
Wealth Management
|
|
399
|
|
280
|
|
43
|
Personal & Corporate Banking
|
|
381
|
|
248
|
|
54
|
Other business divisions and Corporate Center
|
|
24
|
|
206
|
|
(88)
|
Total net trading income
|
|
805
|
|
735
|
|
10
|
Note
3b Net trading income by underlying risk category
|
|
For the year ended
|
|
% change from
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
Interest rate instruments (including funds)
|
|
(4)
|
|
123
|
|
|
Foreign exchange instruments
|
|
778
|
|
571
|
|
36
|
Equity instruments (including funds)
|
|
7
|
|
11
|
|
(36)
|
Credit instruments
|
|
6
|
|
7
|
|
(14)
|
Precious metal / commodities
|
|
17
|
|
22
|
|
(23)
|
Total net trading income
|
|
805
|
|
735
|
|
10
|
Note
4 Personnel expenses
|
|
For the year ended
|
|
% change from
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
Salaries
|
|
1,299
|
|
976
|
|
33
|
Variable compensation – performance awards
|
|
392
|
|
314
|
|
25
|
Variable compensation – other
|
|
23
|
|
14
|
|
64
|
Contractors
|
|
3
|
|
3
|
|
0
|
Social security
|
|
105
|
|
80
|
|
31
|
Pension and other post-employment benefit plans
|
|
242
|
|
181
|
|
34
|
Other personnel expenses
|
|
45
|
|
41
|
|
10
|
Total personnel expenses
|
|
2,109
|
|
1,608
|
|
31
|
Note
5 General and administrative expenses
|
|
For the year ended
|
|
% change from
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
Occupancy
|
|
2
|
|
2
|
|
0
|
Rent and maintenance of IT equipment
|
|
9
|
|
5
|
|
80
|
Communication and market data services
|
|
29
|
|
23
|
|
26
|
Administration
|
|
2,927
|
|
2,182
|
|
34
|
of which: hard cost
transfers paid¹
|
|
2,817
|
|
2,097
|
|
34
|
Marketing and public relations
|
|
177
|
|
148
|
|
20
|
Travel and entertainment
|
|
97
|
|
75
|
|
29
|
Fees to audit firms
|
|
7
|
|
2
|
|
250
|
of which: financial and
regulatory audits
|
|
7
|
|
1
|
|
600
|
of which: audit-related
services
|
|
0
|
|
0
|
|
|
Other professional fees
|
|
102
|
|
69
|
|
48
|
Outsourcing of IT and other services
|
|
120
|
|
78
|
|
54
|
Total general and
administrative expenses
|
|
3,469
|
|
2,583
|
|
34
|
1 Represents expenses for services provided by UBS Group AG and
subsidiaries in the UBS Group to UBS Switzerland AG.
|
|
|
For the year ended
|
|
% change from
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
Income tax expense / (benefit)
|
|
350
|
|
199
|
|
76
|
of which: current
|
|
350
|
|
199
|
|
76
|
of which: deferred
|
|
0
|
|
0
|
|
|
Capital tax
|
|
34
|
|
23
|
|
48
|
Total tax expense /
(benefit)
|
|
384
|
|
222
|
|
73
|
For the full year 2016, the weighted average
tax rate, defined as the income tax expense divided by the sum of operating
profit and extraordinary income minus extraordinary expenses and capital tax,
was 21.0% (2015: 15.7%).
Note
7 Securities financing transactions
CHF billion
|
|
31.12.16
|
31.12.15
|
|
|
|
|
On-balance
sheet
|
|
|
|
Receivables from securities financing transactions, gross
|
|
26.1
|
24.4
|
Netting of securities financing transactions
|
|
(0.2)
|
(0.8)
|
Receivables from securities financing transactions, net
|
|
25.9
|
23.7
|
Payables from securities financing transactions, gross
|
|
7.1
|
9.8
|
Netting of securities financing transactions
|
|
(0.2)
|
(0.8)
|
Payables from securities financing transactions, net
|
|
6.9
|
9.0
|
|
|
|
|
Off-balance
sheet
|
|
|
|
Fair value of assets received as collateral in connection with securities
financing transactions
|
|
121.9
|
118.1
|
of which: repledged
|
|
100.4
|
102.9
|
of which: sold in connection
with short sale transactions
|
|
0.2
|
0.1
|
UBS Switzerland AG standalone financial statements (audited)
Note
8a Collateral for loans and
off-balance sheet transactions
|
|
31.12.16
|
|
31.12.15
|
|
|
Secured
|
|
Unsecured
|
|
Total
|
|
Secured
|
|
Unsecured
|
|
Total
|
|
|
Secured by collateral
|
|
Secured by
other credit
enhancements²
|
|
|
|
|
|
Secured by collateral
|
|
Secured by
other credit
enhancements²
|
|
|
|
|
CHF million
|
|
Real estate
|
|
Other
collateral¹
|
|
|
|
|
|
|
Real estate
|
|
Other
collateral¹
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On-balance
sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from customers, gross
|
|
1,506
|
|
25,890
|
|
1,519
|
|
9,713
|
|
38,627
|
|
1,301
|
|
27,589
|
|
1,462
|
|
8,533
|
|
38,885
|
Mortgage loans, gross
|
|
146,095
|
|
|
|
|
|
|
|
146,095
|
|
148,514
|
|
|
|
|
|
|
|
148,514
|
of which: residential
mortgages
|
|
126,442
|
|
|
|
|
|
|
|
126,442
|
|
127,252
|
|
|
|
|
|
|
|
127,252
|
of which: office and
business premises mortgages
|
|
6,975
|
|
|
|
|
|
|
|
6,975
|
|
7,908
|
|
|
|
|
|
|
|
7,908
|
of which: industrial
premises mortgages
|
|
2,890
|
|
|
|
|
|
|
|
2,890
|
|
3,170
|
|
|
|
|
|
|
|
3,170
|
of which: other mortgages
|
|
9,788
|
|
|
|
|
|
|
|
9,788
|
|
10,184
|
|
|
|
|
|
|
|
10,184
|
Total on-balance sheet,
gross
|
|
147,600
|
|
25,890
|
|
1,519
|
|
9,713
|
|
184,722
|
|
149,815
|
|
27,589
|
|
1,462
|
|
8,533
|
|
187,400
|
Allowances
|
|
(36)
|
|
(71)
|
|
(53)
|
|
(332)
|
|
(492)
|
|
(28)
|
|
(73)
|
|
(57)
|
|
(376)
|
|
(534)
|
Total on-balance sheet, net
|
|
147,564
|
|
25,819
|
|
1,465
|
|
9,382
|
|
184,229
|
|
149,787
|
|
27,517
|
|
1,405
|
|
8,157
|
|
186,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Off-balance
sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent liabilities, gross
|
|
184
|
|
2,481
|
|
1,112
|
|
5,831
|
|
9,608
|
|
175
|
|
2,452
|
|
1,033
|
|
5,125
|
|
8,784
|
Irrevocable commitments, gross
|
|
606
|
|
528
|
|
83
|
|
7,562
|
|
8,780
|
|
1,251
|
|
82
|
|
304
|
|
6,345
|
|
7,982
|
Liabilities for calls on shares and other equities
|
|
|
|
|
|
0
|
|
43
|
|
43
|
|
|
|
|
|
0
|
|
37
|
|
37
|
Total off-balance sheet
|
|
790
|
|
3,009
|
|
1,196
|
|
13,436
|
|
18,430
|
|
1,425
|
|
2,535
|
|
1,336
|
|
11,507
|
|
16,804
|
1 Includes but not limited to deposits, securities, life
insurance contracts, inventory, accounts receivable, patents and
copyrights. 2 Includes credit default swaps and guarantees.
|
Note
8b Impaired financial instruments
|
|
31.12.16
|
|
31.12.15
|
CHF million
|
|
Gross impaired
financial instruments
|
Allowances
and provisions¹
|
Estimated liquidation
proceeds of collateral
|
Net impaired
financial instruments
|
|
Gross impaired
financial instruments
|
Allowances
and provisions¹
|
Estimated liquidation
proceeds of collateral
|
Net impaired
financial instruments
|
Amounts due from banks
|
|
3
|
3
|
0
|
0
|
|
3
|
3
|
0
|
0
|
Amounts due from customers
|
|
649
|
464
|
12
|
174
|
|
702
|
512
|
22
|
168
|
Mortgage loans
|
|
146
|
29
|
110
|
7
|
|
185
|
22
|
137
|
26
|
Guarantees and loan commitments
|
|
236
|
41
|
10
|
185
|
|
275
|
31
|
4
|
239
|
Total impaired financial
instruments
|
|
1,034
|
536
|
132
|
366
|
|
1,164
|
568
|
163
|
433
|
1 Includes CHF 5 million collective loan loss allowances
(December 2015: CHF 4 million).
|
CHF million
|
Balance
as of
31.12.15
|
Increase
recognized
in the
income
statement
|
Release
recognized
in the
income
statement
|
Write-offs
|
Recoveries
and past
due interest
|
Reclassifications
|
Foreign
currency
translation
|
Balance
as of
31.12.16
|
Specific allowances for amounts due from customers and mortgage
loans
|
530
|
113
|
(120)
|
(53)
|
25
|
(10)
|
1
|
488
|
Specific allowances for amounts due from banks
|
3
|
0
|
0
|
0
|
0
|
0
|
0
|
3
|
Collective allowances¹
|
4
|
1
|
0
|
0
|
0
|
0
|
0
|
5
|
Total allowances
|
537
|
114
|
(120)
|
(53)
|
25
|
(10)
|
1
|
495
|
1 Mainly relates to amounts due from customers.
|
CHF million
|
Balance
as of
31.12.15
|
Increase
recognized
in the
income
statement
|
Release
recognized
in the
income
statement
|
Provisions
used in
conformity
with
designated
purpose
|
Recoveries
|
Reclassifica-
tions
|
Balance
as of
31.12.16
|
Default risk related to loan commitments and guarantees
|
31
|
4
|
(4)
|
0
|
0
|
10
|
41
|
Operational risks
|
3
|
1
|
(1)
|
0
|
0
|
0
|
3
|
Litigation, regulatory and similar matters¹
|
96
|
11
|
(8)
|
(21)
|
2
|
0
|
79
|
Restructuring
|
13
|
59
|
(7)
|
(33)
|
0
|
0
|
32
|
Employee benefits
|
27
|
0
|
(8)
|
0
|
0
|
0
|
19
|
Other
|
8
|
4
|
(1)
|
(1)
|
0
|
0
|
10
|
Total provisions
|
179
|
79
|
(28)
|
(56)
|
2
|
10
|
186
|
1 Includes provisions for litigation resulting from security
risks.
|
Note
10
Trading portfolio and other financial instruments measured at fair value
CHF million
|
|
31.12.16
|
|
31.12.15
|
|
|
|
|
|
Assets
|
|
|
|
|
Trading portfolio assets
|
|
1,673
|
|
1,736
|
of which: debt instruments¹
|
|
9
|
|
2
|
of which: listed
|
|
5
|
|
1
|
of which: equity instruments
|
|
20
|
|
7
|
of which: precious metals
and other physical commodities
|
|
1,645
|
|
1,728
|
Total assets measured at
fair value
|
|
1,673
|
|
1,736
|
of which: fair value derived
using a valuation model
|
|
23
|
|
6
|
of which: securities
eligible for repurchase transactions in accordance with liquidity
regulations²
|
|
3
|
|
0
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Trading portfolio liabilities
|
|
154
|
|
128
|
of which: debt instruments¹
|
|
106
|
|
64
|
of which: listed
|
|
87
|
|
61
|
of which: equity instruments
|
|
48
|
|
64
|
Total liabilities measured at
fair value
|
|
154
|
|
128
|
of which: fair value derived
using a valuation model
|
|
130
|
|
89
|
1 Includes money market paper. 2 Consists of high-quality
liquid debt securities that are eligible for repurchase transactions at the
Swiss National Bank (SNB) or other central banks.
|
UBS Switzerland AG standalone financial statements (audited)
Note
11 Derivative instruments
|
|
31.12.16
|
|
31.12.15
|
CHF million, except where
indicated
|
|
PRV²
|
|
NRV³
|
|
Total notional values (CHF billion)
|
|
PRV²
|
|
NRV³
|
|
Total notional values (CHF billion)
|
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
Forwards¹
|
|
26
|
|
30
|
|
10
|
|
13
|
|
19
|
|
5
|
Swaps
|
|
2,776
|
|
2,563
|
|
189
|
|
3,393
|
|
3,099
|
|
213
|
of which: designated in
hedge accounting relationships
|
|
977
|
|
404
|
|
37
|
|
1,022
|
|
382
|
|
44
|
Over-the-counter (OTC) options
|
|
84
|
|
80
|
|
5
|
|
81
|
|
78
|
|
3
|
Total
|
|
2,886
|
|
2,673
|
|
203
|
|
3,488
|
|
3,196
|
|
222
|
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
Forwards
|
|
563
|
|
547
|
|
41
|
|
551
|
|
517
|
|
42
|
Interest and currency swaps
|
|
846
|
|
595
|
|
104
|
|
876
|
|
819
|
|
127
|
Over-the-counter (OTC) options
|
|
332
|
|
332
|
|
28
|
|
245
|
|
244
|
|
31
|
Total
|
|
1,742
|
|
1,473
|
|
172
|
|
1,672
|
|
1,580
|
|
200
|
Equity / index contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
Forwards
|
|
26
|
|
26
|
|
4
|
|
18
|
|
21
|
|
3
|
Swaps
|
|
1
|
|
1
|
|
0
|
|
2
|
|
2
|
|
0
|
Over-the-counter (OTC) options
|
|
291
|
|
291
|
|
4
|
|
323
|
|
323
|
|
7
|
Exchange-traded options
|
|
255
|
|
255
|
|
|
|
281
|
|
281
|
|
0
|
Total
|
|
574
|
|
574
|
|
8
|
|
625
|
|
627
|
|
10
|
Credit derivative contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit default swaps
|
|
1
|
|
7
|
|
0
|
|
7
|
|
10
|
|
1
|
Total
|
|
1
|
|
7
|
|
0
|
|
7
|
|
10
|
|
1
|
Commodity, precious metals
and other contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
Forwards
|
|
16
|
|
15
|
|
1
|
|
15
|
|
14
|
|
1
|
Swaps
|
|
45
|
|
45
|
|
2
|
|
51
|
|
51
|
|
2
|
Over-the-counter (OTC) options
|
|
195
|
|
195
|
|
7
|
|
176
|
|
176
|
|
6
|
Total
|
|
256
|
|
255
|
|
10
|
|
242
|
|
241
|
|
9
|
Total before netting
|
|
5,458
|
|
4,982
|
|
394
|
|
6,033
|
|
5,655
|
|
441
|
of which: trading
derivatives
|
|
4,481
|
|
4,578
|
|
|
|
5,011
|
|
5,273
|
|
|
of which: fair value derived
using a valuation model
|
|
4,432
|
|
4,532
|
|
|
|
4,968
|
|
5,223
|
|
|
of which: derivatives
designated in hedge accounting relationships
|
|
977
|
|
404
|
|
|
|
1,022
|
|
382
|
|
|
of which: fair value derived
using a valuation model
|
|
977
|
|
404
|
|
|
|
1,022
|
|
382
|
|
|
Netting with cash collateral payables / receivables
|
|
|
|
(445)
|
|
|
|
|
|
(804)
|
|
|
Replacement value netting
|
|
(3,325)
|
|
(3,325)
|
|
|
|
(3,759)
|
|
(3,759)
|
|
|
Total after netting
|
|
2,133
|
|
1,212
|
|
|
|
2,274
|
|
1,092
|
|
|
of which: with bank and
broker-dealer counterparties
|
|
112
|
|
259
|
|
|
|
80
|
|
259
|
|
|
of which: other client
counterparties
|
|
2,021
|
|
954
|
|
|
|
2,194
|
|
833
|
|
|
1 Includes forward rate agreements. 2 PRV: positive
replacement values. 3 NRV: negative replacement values.
|
Note
12a Financial investments by
instrument type
|
|
31.12.16
|
|
31.12.15
|
CHF million
|
|
Carrying value
|
Fair value
|
|
Carrying value
|
Fair value
|
Debt instruments
|
|
26,943
|
26,803
|
|
22,849
|
22,875
|
of which: held to maturity
|
|
8,762
|
8,595
|
|
0
|
0
|
of which: available for sale
|
|
18,181
|
18,208
|
|
22,849
|
22,875
|
Equity instruments
|
|
18
|
18
|
|
0
|
0
|
Property
|
|
42
|
42
|
|
29
|
29
|
Total financial investments
|
|
27,002
|
26,863
|
|
22,878
|
22,904
|
of which: securities
eligible for repurchase transactions in accordance with liquidity
regulations¹
|
|
26,666
|
26,526
|
|
22,849
|
22,875
|
1 Consists of high-quality liquid debt securities that are
eligible for repurchase transactions at the Swiss National Bank (SNB) or
other central banks.
|
Note
12b Financial investments by counterparty rating – debt
instruments
CHF million
|
|
31.12.16
|
31.12.15
|
Internal UBS rating¹
|
|
|
|
0–1
|
|
23,883
|
22,321
|
2–3
|
|
3,060
|
528
|
4–5
|
|
0
|
0
|
6–8
|
|
0
|
0
|
9–13
|
|
0
|
0
|
Non-rated
|
|
0
|
0
|
Total financial investments
– debt instruments
|
|
26,943
|
22,849
|
1 Refer to Note 15 for more information.
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
Deferral position for hedging instruments
|
|
95
|
|
349
|
Settlement and clearing accounts
|
|
292
|
|
101
|
VAT and other indirect tax receivables
|
|
27
|
|
33
|
Other
|
|
478
|
|
334
|
of which: other receivables
from UBS Group AG and subsidiaries in the UBS Group
|
|
417
|
|
293
|
Total other assets
|
|
893
|
|
817
|
Note
13b Other liabilities
CHF million
|
|
31.12.16
|
|
31.12.15
|
Settlement and clearing accounts
|
|
593
|
|
338
|
VAT and other indirect tax payables
|
|
112
|
|
115
|
Other
|
|
571
|
|
510
|
of which: other payables to
UBS Group AG and subsidiaries in the UBS Group
|
|
333
|
|
323
|
Total other liabilities
|
|
1,276
|
|
963
|
|
|
31.12.16
|
|
31.12.15
|
CHF million
|
|
Carrying value of pledged assets
|
|
Effective
commitment
|
|
Carrying value of pledged assets
|
|
Effective
commitment
|
Mortgage loans²
|
|
19,887
|
|
14,138
|
|
24,980
|
|
16,235
|
Total pledged assets
|
|
19,887
|
|
14,138
|
|
24,980
|
|
16,235
|
1 Excluding securities financing transactions. Refer to Note 7
for more information on securities financing transactions. 2 These pledged
mortgage loans serve as collateral for existing liabilities against Swiss
central mortgage institutions and for existing covered bond issuances. Of
these pledged mortgage loans, approximately CHF 1.9 billion as of 31 December
2016 (approximately CHF 4.4 billion as of 31 December 2015) could be
withdrawn or used for future liabilities or covered bond issuances without breaching
existing collateral requirements.
|
UBS Switzerland AG standalone financial statements (audited)
Note
15 Country risk of total assets
The table below provides a breakdown
of total non-Swiss assets by credit rating. These credit ratings reflect the
sovereign credit rating of the country to which the ultimate risk of the
underlying asset is related. The ultimate country of risk for unsecured loan
positions is the domicile of the immediate borrower or, in the case of a legal
entity, the domicile of the ultimate parent entity. For collateralized or
guaranteed positions, the ultimate country of risk is the domicile of the
provider of the collateral or guarantor or, if applicable, the domicile of the ultimate
parent entity of the provider of the collateral or guarantor. For mortgage
loans, the ultimate country of risk is the country where the real estate is
located. Similarly, the ultimate country of risk for property and equipment is
the country where the property and equipment is located. Assets for which
Switzerland is the ultimate country of risk are provided separately in order to
reconcile them to total balance sheets assets.
®
Refer to the “Risk management and control” section of
the UBS Group AG Annual Report 2016 for more information
|
|
|
|
|
|
|
31.12.16
|
|
31.12.15
|
Classification
|
Internal UBS rating
|
Description
|
Moody’s Investors Service
|
Standard & Poor’s
|
Fitch
|
|
CHF million
|
%
|
|
CHF million
|
%
|
|
0 and 1
|
Investment grade
|
Aaa
|
AAA
|
AAA
|
|
44,870
|
15
|
|
40,924
|
14
|
Low risk
|
2
|
|
Aa1 to Aa3
|
AA+ to AA–
|
AA+ to AA–
|
|
15,916
|
5
|
|
14,884
|
5
|
3
|
|
A1 to A3
|
A+ to A–
|
A+ to AA–
|
|
2,423
|
1
|
|
5,906
|
2
|
Medium risk
|
4
|
|
Baa1 to Baa2
|
BBB+ to BBB
|
BBB+ to BBB
|
|
2,886
|
1
|
|
2,518
|
1
|
5
|
|
Baa3
|
BBB–
|
BBB–
|
|
1,837
|
1
|
|
1,248
|
0
|
High risk
|
6
|
Sub-investment grade
|
Ba1
|
BB+
|
BB+
|
|
1,327
|
0
|
|
884
|
0
|
7
|
|
Ba2
|
BB
|
BB
|
|
410
|
0
|
|
17
|
0
|
8
|
|
Ba3
|
BB–
|
BB–
|
|
61
|
0
|
|
16
|
0
|
9
|
|
B1
|
B+
|
B+
|
|
91
|
0
|
|
53
|
0
|
Very high risk
|
10
|
|
B2
|
B
|
B
|
|
802
|
0
|
|
39
|
0
|
11
|
|
B3
|
B–
|
B–
|
|
271
|
0
|
|
99
|
0
|
12
|
|
Caa
|
CCC
|
CCC
|
|
123
|
0
|
|
144
|
0
|
13
|
|
Ca to C
|
CC to C
|
CC to C
|
|
41
|
0
|
|
33
|
0
|
Distressed
|
Default
|
Defaulted
|
D
|
D
|
D
|
|
1
|
0
|
|
0
|
0
|
Subtotal
|
|
|
|
|
|
|
71,056
|
24
|
|
66,767
|
23
|
Switzerland
|
|
|
|
|
|
|
223,440
|
76
|
|
218,410
|
77
|
Total assets
|
|
|
|
|
|
|
294,497
|
100
|
|
285,176
|
100
|
|
|
31.12.16
|
|
31.12.15
|
|
|
Par value in CHF
|
Number of shares
|
of which: dividend bearing
|
|
Par value in CHF
|
Number of shares
|
of which: dividend bearing
|
Share capital¹
|
|
10,000,000
|
100,000,000
|
100,000,000
|
|
10,000,000
|
100,000,000
|
100,000,000
|
of which: shares outstanding
|
|
10,000,000
|
100,000,000
|
100,000,000
|
|
10,000,000
|
100,000,000
|
100,000,000
|
1 Registered shares issued.
|
UBS Switzerland AG’s share capital is
fully paid up. Each share has a par value of CHF 0.10 and entitles the holder
to one vote at the UBS Switzerland AG shareholders’ meeting, if entered into
the share register as having the right to vote, as well as a proportionate
share of distributed dividends. UBS Switzerland AG does not apply any
restrictions or limitations on the transferability of shares.
Non-distributable
reserves
Non-distributable reserves consist of
50% of the share capital of UBS Switzerland AG, amounting to CHF 5 million as
of 31 December 2016.
Note
16b Significant shareholders
The sole direct shareholder of UBS
Switzerland AG is UBS AG, which holds 100% of UBS Switzerland AG shares. These
shares are entitled to voting rights. Indirect shareholders of UBS Switzerland
AG, who do not have voting rights, include UBS Group AG, which holds 100% of
UBS AG shares. Included in the table below are also direct shareholders of UBS
Group AG (acting in their own name or in their capacity as nominees for other
investors or beneficial owners) that were registered in the UBS Group AG share
register with 3% or more of the share capital of UBS Group AG as of 31 December
2016 or as of 31 December 2015.
The shares and share capital of UBS
Switzerland AG held by indirect shareholders represent their relative holding
of UBS Group AG shares.
®
Refer to Note 23 to the UBS Group AG standalone financial statements
in the UBS Group AG Annual Report 2016 for more information on significant
shareholders of UBS Group AG
|
|
31.12.16
|
|
31.12.15
|
CHF million, except where
indicated
|
|
Share capital held
|
Shares held (%)
|
|
Share capital held
|
Shares held (%)
|
Significant direct
shareholder of UBS Switzerland AG
|
|
|
|
|
|
|
UBS AG
|
|
10
|
100
|
|
10
|
100
|
Significant indirect
shareholders of UBS Switzerland AG
|
|
|
|
|
|
|
UBS Group AG
|
|
10
|
100
|
|
10
|
100
|
Chase Nominees Ltd., London
|
|
1
|
9
|
|
1
|
9
|
GIC Private Limited, Singapore
|
|
|
|
|
1
|
6
|
DTC (Cede & Co.), New York¹
|
|
1
|
7
|
|
1
|
6
|
Nortrust Nominees Ltd., London
|
|
0
|
4
|
|
0
|
4
|
1 DTC (Cede & Co.), New York, “The Depository Trust
Company”is a US securities clearing organization.
|
Note
17 Swiss pension plan
a)
Liabilities related to Swiss pension plan
|
|
|
|
CHF million
|
|
31.12.16
|
31.12.15
|
Provision for Swiss pension plan
|
|
0
|
0
|
Bank accounts at UBS and UBS debt instruments held by Swiss
pension fund
|
|
216
|
262
|
UBS derivative financial instruments held by Swiss pension fund
|
|
46
|
27
|
Total liabilities related to
Swiss pension plan
|
|
262
|
289
|
|
|
|
|
b)
Swiss pension plan
|
|
|
|
|
|
As of or for the year ended
|
CHF million
|
|
31.12.16
|
31.12.15
|
Pension plan surplus¹
|
|
2,458
|
2,264
|
Economic benefit / (obligation) of UBS Switzerland AG
|
|
0
|
0
|
Change in economic benefit / obligation recognized in the income
statement
|
|
0
|
0
|
Employer contributions in the period recognized in the income
statement
|
|
211
|
158
|
Performance awards-related employer contributions accrued
|
|
31
|
24
|
Total pension expense
recognized in the income statement within Personnel expenses
|
|
241
|
181
|
1 The pension plan surplus is determined in accordance with FER
26 and consists of the reserve for the fluctuation in asset value. The
surplus did not represent an economic benefit for UBS Switzerland AG in
accordance with FER 16 both as of 31 December 2016 and 31 December 2015.
|
The Swiss pension plan had no
employer contribution reserve both as of 31 December 2016 and 31 December 2015.
Note
18 Share-based compensation
UBS Group AG is the grantor of the
majority of UBS’s deferred compensation plans. Expenses for awards granted
under such plans to UBS Switzerland AG employees are charged by UBS Group AG to
UBS Switzerland AG.
®
Refer to Note 27 to the UBS Group AG consolidated financial
statements in the UBS Group AG Annual Report 2016 for more information
UBS Switzerland AG standalone financial statements (audited)
Transactions with related parties are
conducted at internally agreed transfer prices or at arm’s length, or with respect
to loans, fixed advances and mortgages to non-independent members of the Board
of Directors and Group Executive Board members on the same terms and conditions
that are available to other employees.
|
|
31.12.16
|
|
31.12.15
|
CHF million
|
|
Amounts due from
|
|
Amounts due to
|
|
Amounts due from
|
|
Amounts due to
|
Qualified shareholders¹
|
|
18,037
|
|
15,771
|
|
11,232
|
|
21,683
|
of which: due from / to
banks
|
|
925
|
|
8,356
|
|
743
|
|
13,881
|
of which: receivables /
payables from securities financing transactions
|
|
16,551
|
|
5,133
|
|
9,958
|
|
5,760
|
of which: due from / to
customers
|
|
67
|
|
1,692
|
|
169
|
|
1,442
|
Subsidiaries²
|
|
56
|
|
1,831
|
|
35
|
|
380
|
of which: due from / to
customers
|
|
53
|
|
1,831
|
|
30
|
|
380
|
Affiliated entities³
|
|
384
|
|
1,057
|
|
1,239
|
|
2,232
|
of which: due from / to
banks
|
|
211
|
|
587
|
|
318
|
|
629
|
of which: receivables / payables
from securities financing transactions
|
|
0
|
|
0
|
|
372
|
|
786
|
of which: due from / to
customers
|
|
72
|
|
350
|
|
78
|
|
328
|
Members of governing bodies⁴
|
|
48
|
|
|
|
39
|
|
|
External auditors
|
|
|
|
1
|
|
|
|
1
|
Other related parties⁵
|
|
465
|
|
|
|
468
|
|
|
1 Qualified shareholders of UBS Switzerland AG are UBS Group AG
and UBS AG. 2 Subsidiaries of UBS Switzerland AG are UBS Card Center AG,
Topcard Service AG and UBS Hypotheken AG. 3 Affiliated entities of UBS
Switzerland AG are all direct and indirect subsidiaries of UBS Group AG
including subsidiaries of UBS AG. 4 Members of governing bodies consist of
members of the Board of Directors and Group Executive Board of UBS Group AG
and UBS AG and members of the Board of Directors and Executive Board of UBS
Switzerland AG. 5 Primarily relates to SIX Group AG, in which UBS AG has
a 17.3% equity interest.
|
Note
20 Fiduciary transactions
CHF million
|
|
31.12.16
|
|
31.12.15
|
Fiduciary deposits
|
|
15,719
|
|
13,210
|
of which: placed with
third-party banks
|
|
9,757
|
|
7,246
|
of which: placed with
subsidiaries and affiliated entities
|
|
5,962
|
|
5,964
|
Total fiduciary transactions
|
|
15,719
|
|
13,210
|
Fiduciary transactions encompass
transactions entered into or granted by UBS Switzerland AG that result in
holding or placing assets on behalf of individuals, trusts, defined benefit
plans and other institutions. Unless the recognition criteria for the assets
are satisfied, these assets and the related income are excluded from UBS
Switzerland AG’s balance sheet and income statement, but disclosed in this Note
as off-balance sheet fiduciary transactions. Client deposits that are initially
placed as fiduciary transactions with UBS Switzerland AG may be recognized on
UBS Switzerland AG’s balance sheet in situations in which the deposit is
subsequently placed within UBS Switzerland AG. In such cases, these deposits
are not reported in the table above.
Note
21a Invested assets and net new money
|
|
For the year ended
|
CHF billion
|
|
31.12.16
|
|
31.12.15
|
Fund assets managed
|
|
0
|
|
0
|
Discretionary assets
|
|
88
|
|
88
|
Other invested assets
|
|
447
|
|
444
|
Total invested assets
|
|
535
|
|
532
|
of which: double count
|
|
0
|
|
0
|
Net new money
|
|
(3.5)
|
|
(17.3)
|
Note
21b Development of invested assets
|
|
For the year ended
|
CHF billion
|
|
31.12.16
|
|
31.12.15
|
Total invested assets at the beginning of the year
|
|
532
|
|
557
|
Net new money
|
|
(4)
|
|
(17)
|
Market movements¹
|
|
9
|
|
(17)
|
Foreign currency translation
|
|
(2)
|
|
9
|
Other effects
|
|
(1)
|
|
0
|
of which: acquisitions /
(divestments)
|
|
(1)
|
|
0
|
Total invested assets at the
end of the year²
|
|
535
|
|
532
|
1 Includes interest and dividend income. 2 As of 31 December
2016 and 31 December 2015 there were no invested assets double counts.
|
®
Refer to Note 33 to the UBS Group AG consolidated financial
statements in the UBS Group AG Annual Report 2016 for more information
UBS Switzerland AG standalone financial statements (audited)
UBS Switzerland AG standalone financial statements (audited)
UBS Switzerland
AG standalone
regulatory information
UBS
Switzerland AG standalone
regulatory information
Swiss SRB going and gone
concern requirements and information
UBS Switzerland AG is considered a systemically
relevant bank (SRB) under Swiss banking law and is subject to capital
regulations on a standalone basis
. In May
2016, the Swiss Federal Council adopted amendments to the too big to fail
(TBTF) provisions, based on the cornerstones announced by the Swiss Federal
Council in October 2015. The revised Capital Adequacy Ordinance forms the basis
of a revised Swiss SRB framework, which became effective on 1 July 2016.
As of 31 December 2016, the phase-in going
concern capital and leverage ratio requirements for UBS Switzerland AG
standalone were 11.19% and 3.0%, respectively. The gone concern requirements on
a phase-in basis were 3.5% for the RWA-based requirement and 1.0% for the
LRD-based requirement.
Swiss
SRB going and gone concern requirements and information¹
|
As of 31.12.16
|
|
Swiss SRB including transitional arrangements (phase-in)
|
|
Swiss SRB as of 1.1.20 (fully applied)
|
CHF million, except where
indicated
|
|
Risk-weighted assets
|
Leverage ratio denominator
|
|
Risk-weighted assets
|
Leverage ratio denominator
|
|
|
|
|
|
|
|
|
|
|
|
Required
loss-absorbing capacity
|
|
in %²
|
|
in %
|
|
|
in %
|
|
in %
|
|
Common equity tier 1 capital
|
|
8.56
|
7,989
|
2.30
|
7,051
|
|
10.44
|
9,738
|
3.50
|
10,731
|
of which: minimum capital
|
|
6.18
|
5,760
|
2.30
|
7,051
|
|
4.50
|
4,198
|
1.50
|
4,599
|
of which: buffer capital
|
|
1.95
|
1,819
|
|
|
|
5.50
|
5,130
|
2.00
|
6,132
|
of which: countercyclical
buffer³
|
|
0.44
|
410
|
|
|
|
0.44
|
410
|
|
|
Maximum additional tier 1
capital
|
|
2.63
|
2,449
|
0.70
|
2,146
|
|
4.30
|
4,011
|
1.50
|
4,599
|
of which: high-trigger
loss-absorbing additional tier 1 minimum capital
|
|
1.83
|
1,702
|
0.70
|
2,146
|
|
3.50
|
3,265
|
1.50
|
4,599
|
of which: high-trigger
loss-absorbing additional tier 1 buffer capital
|
|
0.80
|
746
|
|
|
|
0.80
|
746
|
|
|
Total going concern capital
|
|
11.19
|
10,438
|
3.00
|
9,198
|
|
14.74⁴
|
13,749
|
5.00⁴
|
15,329
|
Base gone concern requirement
|
|
3.50
|
3,265
|
1.00
|
3,066
|
|
14.30⁴
|
13,339
|
5.00⁴
|
15,329
|
Total gone concern
loss-absorbing capacity
|
|
3.50
|
3,265
|
1.00
|
3,066
|
|
14.30
|
13,339
|
5.00
|
15,329
|
Total loss-absorbing
capacity
|
|
14.69
|
13,702
|
4.00
|
12,263
|
|
29.04
|
27,088
|
10.00
|
30,659
|
|
|
|
|
|
|
|
|
|
|
|
Eligible
loss-absorbing capacity
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital
|
|
11.17
|
10,416
|
3.40
|
10,416
|
|
11.17
|
10,416
|
3.40
|
10,416
|
High-trigger loss-absorbing
additional tier 1 capital
|
|
1.32
|
1,235
|
0.40
|
1,235
|
|
2.14
|
2,000
|
0.65
|
2,000
|
of which: high-trigger
loss-absorbing additional tier 1 capital
|
|
1.32
|
1,235
|
0.40
|
1,235
|
|
2.14
|
2,000
|
0.65
|
2,000
|
Total going concern capital
|
|
12.49
|
11,651
|
3.80
|
11,651
|
|
13.31
|
12,416
|
4.05
|
12,416
|
Gone concern loss-absorbing
capacity
|
|
3.50
|
3,265
|
1.06
|
3,265
|
|
2.68
|
2,500
|
0.82
|
2,500
|
of which: high-trigger
loss-absorbing additional tier 1 capital
|
|
0.82
|
765
|
0.25
|
765
|
|
|
|
|
|
of which: low-trigger
loss-absorbing tier 2 capital
|
|
2.68
|
2,500
|
0.82
|
2,500
|
|
2.68
|
2,500
|
0.82
|
2,500
|
Total gone concern
loss-absorbing capacity
|
|
3.50
|
3,265
|
1.06
|
3,265
|
|
2.68
|
2,500
|
0.82
|
2,500
|
Total loss-absorbing
capacity
|
|
15.99
|
14,916
|
4.87
|
14,916
|
|
15.99
|
14,916
|
4.87
|
14,916
|
1 This table does not include the effect of any potential gone
concern requirement rebate. 2 The total capital ratio requirement of
14.69% is the current phase-in requirement according to the Swiss Capital
Adequacy Ordinance. In addition, FINMA has defined a total capital ratio
requirement, which is the sum of 14.4% and the effect of countercyclical
buffer requirements of 0.44%, of which 10% plus the effect of countercyclical
buffer requirements must be satisfied with common equity tier 1 capital. The FINMA
total capital requirement will be effective until it is exceeded by the Swiss
SRB phase-in requirement. 3 Going concern capital ratio requirements as of
31 December 2016 include countercyclical buffer requirements of 0.44% for the
phase-in and fully applied requirement. 4 Includes applicable add-ons of
1.44% for RWA and 0.5% for LRD.
|
UBS Switzerland AG standalone regulatory information
Swiss SRB loss-absorbing capacity
Current
and former Swiss SRB going and gone concern information
|
|
|
|
|
|
Swiss SRB including transitional arrangements
(phase-in)
|
|
Swiss SRB as of 1.1.20
(fully applied)
|
|
Former Swiss SRB
(phase-in)
|
CHF million, except where
indicated
|
|
31.12.16
|
|
31.12.16
|
|
31.12.15
|
|
|
|
|
|
|
|
Common equity tier 1 capital
|
|
10,416
|
|
10,416
|
|
10,468
|
High-trigger loss-absorbing additional tier 1 capital
|
|
1,235¹
|
|
2,000
|
|
1,500
|
Total tier 1 capital
|
|
11,651
|
|
12,416
|
|
11,968
|
Low-trigger loss-absorbing tier 2 capital
|
|
|
|
|
|
2,500
|
Total going concern capital
|
|
11,651¹
|
|
12,416
|
|
|
Total capital
|
|
|
|
|
|
14,468
|
|
|
|
|
|
|
|
Gone
concern loss-absorbing capacity
|
|
|
|
|
|
|
High-trigger loss-absorbing additional tier 1 capital
|
|
765
|
|
|
|
|
Low-trigger loss-absorbing tier 2 capital
|
|
2,500
|
|
2,500
|
|
|
Total gone concern
loss-absorbing capacity
|
|
3,265
|
|
2,500
|
|
|
|
|
|
|
|
|
|
Total
loss-absorbing capacity
|
|
|
|
|
|
|
Total loss-absorbing capacity
|
|
14,916
|
|
14,916
|
|
|
|
|
|
|
|
|
|
Risk-weighted
assets / leverage ratio denominator
|
|
|
|
|
|
|
Risk-weighted assets
|
|
93,281
|
|
93,281
|
|
95,765
|
Leverage ratio denominator
|
|
306,586
|
|
306,586
|
|
296,865
|
|
|
|
|
|
|
|
Capital
and loss-absorbing capacity ratios (%)
|
|
|
|
|
|
|
Tier 1 capital ratio
|
|
|
|
|
|
12.5
|
Total capital ratio
|
|
|
|
|
|
15.1
|
Going concern capital ratio
|
|
12.5
|
|
13.3
|
|
|
of which: common equity tier
1 capital ratio
|
|
11.2
|
|
11.2
|
|
10.9
|
Gone concern loss-absorbing capacity ratio
|
|
3.5
|
|
2.7
|
|
|
Total loss-absorbing capacity ratio
|
|
16.0
|
|
16.0
|
|
|
|
|
|
|
|
|
|
Leverage
ratios (%)
|
|
|
|
|
|
|
Leverage ratio
|
|
|
|
|
|
4.9
|
Going concern leverage ratio
|
|
3.8
|
|
4.0
|
|
|
of which: common equity tier
1 leverage ratio
|
|
3.4
|
|
3.4
|
|
3.5
|
Gone concern leverage ratio
|
|
1.1
|
|
0.8
|
|
|
Total loss-absorbing capacity leverage ratio
|
|
4.9
|
|
4.9
|
|
|
1 Under the Swiss SRB rules, going concern capital includes CET1
and high-trigger loss-absorbing additional tier 1 capital. Outstanding
low-trigger loss-absorbing tier 2 capital instruments will also remain
available to meet the going concern capital requirements until the earlier of
(i) their maturity or first call date or (ii) 31 December 2019. However, as
of 31 December 2016, CHF 765 million of high-trigger loss-absorbing
additional tier 1 capital as well as the total low-trigger loss-absorbing
tier 2 capital of CHF 2,500 million were used to meet the gone concern
requirement.
|
Reconciliation
Swiss federal banking law equity to Swiss SRB common equity tier 1 capital
|
CHF billion
|
31.12.16
|
31.12.15
|
Equity – Swiss federal
banking law¹
|
13.5
|
14.1
|
Deferred tax assets
|
0.7
|
0.9
|
Goodwill and intangible assets
|
(3.4)
|
(4.5)
|
Other
|
(0.3)
|
(0.1)
|
Common equity tier 1 capital
(phase-in)
|
10.4
|
10.5
|
1 Equity under Swiss federal banking law is adjusted to derive
equity in accordance with IFRS and then further adjusted to derive common
equity tier 1 (CET1) capital in accordance with Swiss SRB requirements.
|
Leverage ratio information
Swiss
SRB leverage ratio
|
|
|
Swiss SRB including
transitional arrangements
(phase-in)
|
|
Swiss SRB as of 1.1.20
(fully applied)
|
|
Former Swiss SRB
(phase-in)
|
|
|
31.12.16
|
|
31.12.16
|
|
31.12.15
|
|
|
|
|
|
|
|
Leverage
ratio denominator (CHF billion)
|
|
|
|
|
|
|
Swiss GAAP total assets
|
|
294.5
|
|
294.5
|
|
285.2
|
Difference between Swiss GAAP and IFRS total assets
|
|
1.5
|
|
1.5
|
|
1.4
|
Less: derivative exposures and SFTs¹
|
|
(32.3)
|
|
(32.3)
|
|
(30.8)
|
On-balance sheet exposures
(excluding derivative exposures and SFTs)
|
|
263.7
|
|
263.7
|
|
255.8
|
Derivative exposures
|
|
4.7
|
|
4.7
|
|
4.7
|
Securities financing transactions
|
|
26.4
|
|
26.4
|
|
24.7
|
Off-balance sheet items
|
|
12.0
|
|
12.0
|
|
11.9
|
Items deducted from Swiss SRB tier 1 capital
|
|
(0.3)
|
|
(0.3)
|
|
(0.3)
|
Total exposures (leverage
ratio denominator)
|
|
306.6
|
|
306.6
|
|
296.9
|
|
Loss-absorbing
capacity (CHF million)
|
|
|
|
|
|
|
Common equity tier 1 including loss-absorbing capital
|
|
|
|
|
|
14,468
|
Going concern capital
|
|
11,651²
|
|
12,416
|
|
|
of which: common equity tier
1 capital
|
|
10,416
|
|
10,416
|
|
10,468
|
Gone concern capital
|
|
3,265²
|
|
2,500
|
|
|
Total loss-absorbing capacity
|
|
14,916
|
|
14,916
|
|
|
|
Leverage
ratios (%)
|
|
|
|
|
|
|
Leverage ratio
|
|
|
|
|
|
4.9
|
Going concern leverage ratio
|
|
3.8
|
|
4.0
|
|
|
of which: common equity tier
1 leverage ratio
|
|
3.4
|
|
3.4
|
|
3.5
|
Gone concern leverage ratio
|
|
1.1
|
|
0.8
|
|
|
Total loss-absorbing capacity leverage ratio
|
|
4.9
|
|
4.9
|
|
|
1 Consists of positive replacement values, cash collateral
receivables on derivative instruments, cash collateral on securities
borrowed, reverse repurchase agreements, margin loans and prime brokerage
receivables related to securities financing transactions, which are presented
separately under Derivative exposures and Securities financing transactions
in this table. 2 Under the Swiss SRB rules, going concern capital includes
CET1 and high-trigger additional tier 1 capital. Outstanding low-trigger tier
2 capital instruments will also remain available to meet the going concern
capital requirements until the earlier of (i) their maturity or first call
date or (ii) 31 December 2019. However, as of 31 December 2016, CHF 765
million of high-trigger loss-absorbing additional tier 1 capital as well as
the total low-trigger loss-absorbing tier 2 capital of CHF 2,500 million were
used to meet the gone concern requirement.
|
BIS
Basel III leverage ratio (phase-in)
|
CHF million, except where
indicated
|
|
31.12.16
|
30.9.16
|
30.6.16
|
31.3.16
|
31.12.15
|
Total tier 1 capital
|
|
12,416
|
12,476
|
12,489
|
12,495
|
11,968
|
Total exposures (leverage ratio denominator)
|
|
306,586
|
315,057
|
313,285
|
309,001
|
296,865
|
BIS Basel III leverage ratio (%)
|
|
4.0
|
4.0
|
4.0
|
4.0
|
4.0
|
UBS Switzerland AG standalone regulatory information
Capital
instruments
Capital
instruments of UBS Switzerland AG - key features
|
Presented
according to issuance date
|
|
|
|
Share capital
|
|
Additional tier 1 capital
|
|
Tier 2 capital
|
|
Additional tier 1 capital
|
1
|
Issuer (country of incorporation; if applicable, branch)
|
|
UBS Switzerland AG, Switzerland
|
|
UBS Switzerland AG, Switzerland
|
|
UBS Switzerland AG, Switzerland
|
|
UBS Switzerland AG, Switzerland
|
1a
|
Instrument number
|
|
1
|
|
2
|
|
3
|
|
4
|
2
|
Unique identifier (e.g., ISIN)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
3
|
Governing law(s) of the instrument
|
|
Swiss
|
|
Swiss
|
|
Swiss
|
|
Swiss
|
|
Regulatory treatment
|
|
|
|
|
|
|
|
|
4
|
Transitional Basel III rules (1)
|
|
Common equity tier 1 – Going concern capital
|
|
Additional tier 1 – Going concern capital
|
|
Tier 2 – Going concern capital (4)
|
|
Additional tier 1 – Going concern capital
|
5
|
Post-transitional Basel III rules (2)
|
|
Common equity tier 1 – Going concern capital
|
|
Additional tier 1 – Going concern capital
|
|
Tier 2 – Gone concern loss-absorbing capacity (4)
|
|
Additional tier 1 – Going concern capital
|
6
|
Eligible at solo / group / group&solo
|
|
UBS Switzerland AG standalone
|
|
UBS Switzerland AG standalone
|
|
UBS Switzerland AG standalone
|
|
UBS Switzerland AG standalone
|
7
|
Instrument type
|
|
Ordinary shares
|
|
Loan (5)
|
|
Loan (5)
|
|
Loan (5)
|
8
|
Amount recognized in regulatory capital (currency in million, as
of most recent reporting date) (1)
|
|
CHF 10.0
|
|
CHF 1,500
|
|
CHF 2,500
|
|
CHF 500
|
9
|
Outstanding amount (par value, million)
|
|
CHF 10.0
|
|
CHF 1,500
|
|
CHF 2,500
|
|
CHF 500
|
10
|
Accounting classification (3)
|
|
Equity attributable to UBS Switzerland AG shareholders
|
|
Due to banks held at amortized cost
|
|
Due to banks held at amortized cost
|
|
Due to banks held at amortized cost
|
11
|
Original date of issuance
|
|
–
|
|
1 April 2015
|
|
1 April 2015
|
|
11 March 2016
|
12
|
Perpetual or dated
|
|
–
|
|
Perpetual
|
|
Dated
|
|
Perpetual
|
13
|
Original maturity date
|
|
–
|
|
–
|
|
1 April 2025
|
|
–
|
14
|
Issuer call subject to prior supervisory approval
|
|
–
|
|
Yes
|
|
Yes
|
|
Yes
|
15
|
Optional call date, subsequent call dates, if applicable, and
redemption amount
|
|
–
|
|
First optional repayment date:
1 April 2020
|
|
First optional repayment date:
1 April 2020
|
|
First optional repayment date:
11 March 2021
|
|
Repayable at any time after the first optional repayment date.
Repayment subject to FINMA approval. Optional repayment amount:
principal amount, together with any accrued and unpaid interest thereon
|
16
|
Contingent call dates and redemption amount
|
|
–
|
|
Early repayment possible due to a tax or regulatory event.
Repayment due to tax event subject to FINMA approval.
Repayment amount: principal amount, together with accrued and
unpaid interest
|
|
|
–
|
|
Early repayment possible upon a change in progressive capital
component requirement, subject to FINMA approval. Repayment amount: 101% of
principal amount, together with accrued and unpaid interest
|
|
–
|
|
Coupons / dividend
|
|
|
|
|
|
|
|
|
17
|
Fixed or floating dividend / coupon
|
|
–
|
|
Floating
|
|
Floating
|
|
Floating
|
18
|
Coupon rate and any related index;
frequency of payment
|
|
–
|
|
6-month CHF Libor + 370 bps per annum
semi-annually
|
|
6-month CHF Libor + 200 bps per annum
semi-annually
|
|
3-month CHF Libor + 459 bps per annum
quarterly
|
19
|
Existence of a dividend stopper
|
|
–
|
|
No
|
|
No
|
|
No
|
20
|
Fully discretionary, partially discretionary or mandatory
|
|
Fully discretionary
|
|
Fully discretionary
|
|
Mandatory
|
|
Fully discretionary
|
21
|
Existence of step-up or other incentive to redeem
|
|
–
|
|
No
|
|
No
|
|
No
|
Capital
instruments of UBS Switzerland AG - key features (continued)
|
22
|
Non-cumulative or cumulative
|
|
Non-cumulative
|
|
Non-cumulative
|
|
Cumulative
|
|
Non-cumulative
|
23
|
Convertible or non-convertible
|
|
–
|
|
Non-convertible
|
|
Non-convertible
|
|
Non-convertible
|
24
|
If convertible, conversion trigger(s)
|
|
–
|
|
–
|
|
–
|
|
–
|
25
|
If convertible, fully or partially
|
|
–
|
|
–
|
|
–
|
|
–
|
26
|
If convertible, conversion rate
|
|
–
|
|
–
|
|
–
|
|
–
|
27
|
If convertible, mandatory or optional conversion
|
|
–
|
|
–
|
|
–
|
|
–
|
28
|
If convertible, specify instrument type convertible into
|
|
–
|
|
–
|
|
–
|
|
–
|
29
|
If convertible, specify issuer of instrument it converts into
|
|
–
|
|
–
|
|
–
|
|
–
|
30
|
Write-down feature
|
|
–
|
|
Yes
|
|
Yes
|
|
Yes
|
31
|
If write-down, write-down trigger(s)
|
|
–
|
|
Trigger: CET1 ratio is less than 7%
|
|
Trigger: CET1 ratio is less than 5%
|
|
Trigger: CET1 ratio is less than 7%
|
|
|
FINMA determines a write-down necessary to ensure UBS
Switzerland AG viability; or UBS Switzerland AG receives a commitment of
governmental support that FINMA determines necessary to ensure UBS
Switzerland AG's viability
Subject to applicable conditions.
|
32
|
If write-down, full or partial
|
|
–
|
|
Full
|
|
Full
|
|
Full
|
33
|
If write-down, permanent or temporary
|
|
–
|
|
Permanent
|
|
Permanent
|
|
Permanent
|
34
|
If temporary write-down, description of write-up mechanism
|
|
–
|
|
–
|
|
–
|
|
–
|
35
|
Position in subordination hierarchy in liquidation
(specify instrument type immediately senior to instrument)
|
|
Unless otherwise stated in the Articles of Association, once
debts are paid back, the assets of the liquidated company are divided between
the shareholders pro rata based on their contributions and considering the
preferences attached to certain categories of shares (section 745, Swiss
Civil Code of Obligations)
|
|
Subject to any obligations that are mandatorily preferred by
law, all obligations of UBS Switzerland AG that are unsubordinated or that
are subordinated and do not rank junior, such as all classes of share
capital, or at par, such as tier 1 instruments
|
|
Subject to any obligations that are mandatorily preferred by
law, all obligations of UBS Switzerland AG that are unsubordinated or that
are subordinated and do not rank junior, such as all classes of share
capital, or at par, such as unsecured, subordinated and dated obligations
|
|
Subject to any obligations that are mandatorily preferred by
law, all obligations of UBS Switzerland AG that are unsubordinated or that
are subordinated and do not rank junior, such as all classes of share
capital, or at par, such as tier 1 instruments
|
36
|
Existence of features, which prevent full recognition under
Basel III
|
|
–
|
|
–
|
|
–
|
|
–
|
37
|
If yes, specify non-compliant features
|
|
–
|
|
–
|
|
–
|
|
–
|
(1) Based on Swiss SRB phase-in (including transitional
arrangement) requirements. (2) Based on Swiss SRB requirements applicable
as of 1.1.20. (3) As applied in UBS Switzerland AG's financial statements
under Swiss GAAP. (4) Outstanding low-trigger loss-absorbing tier 2 capital
qualifies as going concern capital until the earlier of (i) their maturity or
first call date or (ii) 31 December 2019. From 1 January 2020, these
instruments may be used to meet the gone concern requirements until one year
before maturity, with a haircut of 50% applied in the last year of
eligibility. (5) Loans granted by UBS AG, Switzerland.
|
Liquidity coverage ratio
UBS Switzerland AG, as a Swiss SRB,
is required to maintain a minimum LCR of 100%.
Liquidity
coverage ratio
|
|
|
Weighted value¹
|
CHF billion, except where
indicated
|
|
Average 4Q16
|
High-quality liquid assets
|
|
75
|
Total net cash outflows
|
|
63
|
of which: cash outflows
|
|
97
|
of which: cash inflows
|
|
34
|
Liquidity coverage ratio (%)
|
|
120
|
1 Calculated after the application of haircuts and inflow and
outflow rates.
|
UBS Switzerland AG standalone regulatory information
Notice
to investors |
This
document and the information contained herein are provided solely for
information purposes, and are not to be construed as solicitation of an offer
to buy or sell any securities or other financial instruments in Switzerland,
the United States or any other jurisdiction. No investment decision relating to
securities of or relating to UBS Group AG, UBS AG or their affiliates should be
made on the basis of this document. Refer to UBS’s Annual Report 2016 for
additional information. This report is available at www.ubs.com/investors.
Rounding
|
Numbers presented throughout this document may not add up precisely
to the totals provided in the tables and text. Percentages, percent changes and
absolute variances are calculated on the basis of 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. Percentage
changes are presented as a mathematical calculation of the change between
periods.
UBS Limited standalone
financial and regulatory information
Financial year 2016
UBS Limited standalone financial and regulatory information
Income
statement
|
|
|
|
|
|
|
|
For the year ended
|
|
% change from
|
GBP million
|
|
31.12.16
|
31.12.15
|
|
31.12.15
|
Interest income
|
|
377
|
289
|
|
30
|
Interest expense
|
|
(394)
|
(289)
|
|
36
|
Net interest income
|
|
(17)
|
0
|
|
|
Credit loss (expense) / recovery
|
|
(2)
|
2
|
|
|
Net fee and commission income
|
|
699
|
667
|
|
5
|
Net trading income
|
|
68
|
42
|
|
62
|
Other income
|
|
12
|
16
|
|
(25)
|
Total operating income
|
|
760
|
727
|
|
5
|
Total operating expenses
|
|
563
|
538
|
|
5
|
Operating profit before tax
|
|
197
|
189
|
|
4
|
Tax expense / (benefit)
|
|
171
|
(52)
|
|
|
Net profit
|
|
26
|
241
|
|
(89)
|
Statement
of comprehensive income
|
|
|
|
|
|
|
|
For the year ended
|
|
% change from
|
GBP million
|
|
31.12.16
|
31.12.15
|
|
31.12.15
|
Net profit
|
|
26
|
241
|
|
(89)
|
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
|
Other comprehensive income
that may be reclassified to the income statement
|
|
|
|
|
|
Financial investments
available for sale
|
|
|
|
|
|
Net unrealized gains / (losses) on financial investments
available for sale
|
|
0
|
(5)
|
|
(100)
|
Total other comprehensive
income that may be reclassified to the income statement
|
|
0
|
(5)
|
|
(100)
|
Total comprehensive income
|
|
26
|
236
|
|
(89)
|
Balance sheet
|
|
|
|
|
|
|
|
|
|
|
% change from
|
GBP million
|
|
31.12.16
|
31.12.15
|
|
31.12.15
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Cash and balances with central banks
|
|
3
|
5
|
|
(42)
|
Due from banks
|
|
1,054
|
841
|
|
25
|
Cash collateral on securities borrowed
|
|
2,799
|
3,047
|
|
(8)
|
Reverse repurchase agreements
|
|
2,638
|
2,973
|
|
(11)
|
Trading portfolio assets
|
|
4,698
|
3,770
|
|
25
|
Positive replacement values
|
|
17,451
|
17,668
|
|
(1)
|
Cash collateral receivables on derivative instruments
|
|
6,490
|
6,027
|
|
8
|
Loans and advances to customers
|
|
1,054
|
791
|
|
33
|
Financial assets designated at fair value
|
|
3,931
|
666
|
|
490
|
Financial assets available for sale
|
|
123
|
3,163
|
|
(96)
|
Deferred tax asset
|
|
47
|
172
|
|
(73)
|
Other assets
|
|
333
|
319
|
|
4
|
Total assets
|
|
40,621
|
39,442
|
|
3
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Due to banks
|
|
2,715
|
2,309
|
|
18
|
Cash collateral on securities lent
|
|
228
|
4
|
|
|
Repurchase agreements
|
|
3,472
|
4,021
|
|
(14)
|
Trading portfolio liabilities
|
|
5,780
|
4,787
|
|
21
|
Negative replacement values
|
|
17,904
|
18,040
|
|
(1)
|
Cash collateral payables on derivative instruments
|
|
6,153
|
5,966
|
|
3
|
Due to customers
|
|
385
|
230
|
|
67
|
Financial liabilities designated at fair value
|
|
724
|
728
|
|
(1)
|
Other liabilities
|
|
387
|
316
|
|
22
|
Total liabilities
|
|
37,748
|
36,400
|
|
4
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Share capital
|
|
227
|
227
|
|
0
|
Share premium
|
|
2,184
|
2,184
|
|
0
|
Retained earnings
|
|
226
|
396
|
|
(43)
|
Cumulative net income recognized directly in equity, net of tax
|
|
2
|
1
|
|
27
|
Other equity instruments
|
|
235
|
235
|
|
0
|
Total equity
|
|
2,874
|
3,042
|
|
(6)
|
Total liabilities and equity
|
|
40,622
|
39,442
|
|
3
|
|
UBS Limited standalone financial and regulatory information
The financial statements of UBS Limited are prepared in accordance
with the International Financial Reporting Standards (IFRS)
, as
endorsed by the EU, and are stated in British pounds (GBP), the functional
currency of the entity. UBS Limited is wholly owned by UBS AG, which is wholly
owned by UBS Group AG, the ultimate parent company of the UBS Group.
This financial information is unaudited and
should be read in conjunction with the audited financial statements of UBS
Limited. The full Annual Report and Financial Statements of UBS Limited for the
year ended 31 December 2016 will be made available in April 2017 under “Disclosure
for legal entities” at
www.ubs.com/investors.
Capital
information¹˒²˒³˒⁴
|
|
|
|
GBP million, except where
indicated
|
|
31.12.16
|
31.12.15
|
|
|
|
|
Capital
|
|
|
|
Common equity tier 1 capital before adjustment
|
|
2,596
|
2,807
|
Regulatory adjustments
|
|
(244)
|
(239)
|
Common equity tier 1 capital
|
|
2,352
|
2,568
|
Additional tier 1 capital
|
|
235
|
235
|
Total tier 1 capital
|
|
2,587
|
2,803
|
Tier 2 capital
|
|
687
|
587
|
Total capital
|
|
3,274
|
3,390
|
|
|
|
|
Risk-weighted
assets and leverage ratio denominator
|
|
|
|
Risk-weighted assets
|
|
11,081
|
12,317
|
Leverage ratio denominator
|
|
35,794
|
37,807
|
|
|
|
|
Capital
and leverage ratios
|
|
|
|
Common equity tier 1 capital ratio (%)
|
|
21.2
|
20.8
|
Tier 1 capital ratio (%)
|
|
23.3
|
22.8
|
Total capital ratio (%)
|
|
29.5
|
27.5
|
Leverage ratio (%)
|
|
7.2
|
7.4
|
1 Capital information for UBS Limited has been prepared in
accordance with Regulation (EU) No 575 / 2013 (as amended by Regulation (EU)
2015 / 62 in respect of the leverage ratio). 2 There was no local
disclosure requirement for the liquidity coverage ratio as of 31 December
2016. 3 Capital information presented for 31 December 2015 is based on UBS
Limited’s Pillar 3 – Supplementary Disclosures as of 31 December 2015. 4
Capital information presented for 31 December 2016 excludes 2016 net profit
carried forward, which will become eligible for inclusion only after
completion of the statutory audit.
|
Notice to investors |
This document and the
information contained herein are provided solely for information purposes, and
are not to be construed as solicitation of an offer to buy or sell any
securities or other financial instruments in Switzerland, the United States or
any other jurisdiction. No investment decision relating to securities of or
relating to UBS Group AG, UBS AG or their affiliates should be made on the
basis of this document. Refer to UBS’s Annual Report 2016 for additional
information. This report is available at www.ubs.com/investors.
Rounding |
Numbers presented throughout
this document may not add up precisely to the totals provided in the tables and
text. Percentages, percent changes and absolute variances are calculated on the
basis of 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. Percentage changes are presented as a mathematical
calculation of the change between periods.
UBS Limited standalone financial and regulatory information
UBS Americas Holding LLC consolidated
selected financial information
Financial year 2016
UBS Americas Holding LLC consolidated financial and regulatory
information
Selected
financial information¹
|
|
|
|
|
|
|
For the financial year ended
|
USD million
|
|
|
|
31.12.16
|
|
|
|
|
|
Income
statement
|
|
|
|
|
Net interest income (including credit loss expense / recovery)
|
|
|
|
1,216
|
Net fee and commission income
|
|
|
|
7,954
|
Net trading income
|
|
|
|
419
|
Other income
|
|
|
|
561
|
Total operating income
|
|
|
|
10,149
|
Personnel expenses
|
|
|
|
6,936
|
General and administrative expenses
|
|
|
|
2,830
|
Other operating expenses
|
|
|
|
257
|
Total operating expenses
|
|
|
|
10,022
|
Operating profit / (loss) before tax
|
|
|
|
127
|
Tax expense / (benefit)
|
|
|
|
(1,201)
|
Net profit / (loss)
|
|
|
|
1,328
|
|
|
|
|
|
|
|
As of
|
USD million
|
|
31.12.16
|
|
31.12.15
|
|
|
|
|
|
Balance
sheet
|
|
|
|
|
Deposits with central banks and other banks
|
|
10,576
|
|
6,713
|
Receivables from banks, brokers, dealers and clearing
organizations
|
|
4,318
|
|
13,883
|
Receivables from securities financing transactions
|
|
27,378
|
|
59,446
|
Financial assets at fair value
|
|
17,998
|
|
8,218
|
Loans and other receivables from customers
|
|
50,465
|
|
49,562
|
Securities available for sale
|
|
6,269
|
|
5,162
|
Goodwill and other intangible assets
|
|
6,254
|
|
6,310
|
Deferred tax assets
|
|
8,962
|
|
7,689
|
Other assets
|
|
6,636
|
|
6,094
|
Total assets
|
|
138,858
|
|
163,077
|
Payables to banks, brokers, dealers and clearing organizations
|
|
33,121
|
|
23,262
|
Payables from securities financing transactions
|
|
5,449
|
|
35,359
|
Deposits and payables to customers
|
|
65,425
|
|
71,482
|
Financial liabilities at fair value
|
|
3,709
|
|
4,370
|
Other liabilities
|
|
6,667
|
|
9,430
|
Total liabilities
|
|
114,371
|
|
143,903
|
Total equity
|
|
24,487
|
|
19,174
|
1 The UBS Americas Holding LLC consolidated selected financial
information is prepared in accordance with accounting principles generally
accepted in the US (US GAAP), but does not represent financial statements
under US GAAP.
|
The financial statements of UBS Americas Holding LLC are prepared in
accordance with accounting principles generally accepted in the US (US GAAP),
and are stated in US dollars (USD), the functional currency of the entity. UBS
Americas Holding LLC is wholly owned by UBS AG, which is wholly owned by UBS Group
AG, the ultimate parent company of the UBS Group. The financial information is
unaudited and should be read in conjunction with the audited financial
statements of UBS Americas Holding LLC.
The table below provides the key
regulatory capital components and capital ratios of UBS Americas Holding LLC
(consolidated). This information is prepared in accordance with applicable US
Basel III rules and has not been audited by the external auditors of UBS
Americas Holding LLC.
Regulatory
capital components and capital ratios
|
|
|
USD million, except where
indicated
|
|
31.12.16
|
|
|
|
Capital
|
|
|
Common equity tier 1
capital¹
|
|
11,648
|
Additional tier 1 capital²
|
|
0
|
Tier 1 capital
|
|
11,648
|
Tier 2 capital
|
|
722
|
Total capital
|
|
12,370
|
|
|
|
Risk-weighted
assets and leverage ratio denominator
|
|
|
Total risk-weighted assets
|
|
51,443
|
Leverage ratio denominator
|
|
140,174
|
|
|
|
Capital
and leverage ratios (%)³
|
|
|
Common equity tier 1 capital ratio
|
|
22.6
|
Tier 1 capital ratio
|
|
22.6
|
Total capital ratio
|
|
24.0
|
Leverage ratio
|
|
8.3
|
1 The difference between total equity of USD 24.5 billion as of
31 December 2016 and CET 1 capital of USD 11.6 billion mainly relates to
deductions for goodwill and intangible assets and deferred tax assets. 2
Additional tier 1 capital is reduced to zero by deduction of deferred tax
assets attributable to net operating losses. 3 As of 31 December 2016, UBS
Americas Holding LLC had a CET1 capital ratio requirement of 5.125%, a tier 1
capital ratio requirement of 6.625% and a total capital ratio requirement of
8.625%, which are the current phase-in requirements according to the
applicable US Basel III rules.
|
UBS Americas Holding LLC consolidated financial and regulatory information
Notice to investors |
This document and the
information contained herein are provided solely for information purposes, and
are not to be construed as solicitation of an offer to buy or sell any
securities or other financial instruments in Switzerland, the United States or
any other jurisdiction. No investment decision relating to securities of or
relating to UBS Group AG, UBS AG or their affiliates should be made on the
basis of this document. Refer to UBS’s Annual Report 2016 for additional
information. This report is available at www.ubs.com/investors.
Rounding |
Numbers presented throughout
this document may not add up precisely to the totals provided in the tables and
text. Percentages, percent changes and absolute variances are calculated on the
basis of 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. Percentage changes are presented as a mathematical
calculation of the change between periods.
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/ Todd Tuckner
___________
Name: Todd Tuckner
Title: Group Controller and
Chief Accounting Officer
By:
_/s/ David Kelly_____________
Name: David Kelly
Title: Managing Director
UBS AG
By:
_/s/ Todd Tuckner
____________
Name: Todd Tuckner
Title: Group Controller and
Chief Accounting Officer
By:
_/s/ David Kelly_____________
Name: David Kelly
Title: Managing Director
Date: March 10, 2017
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