Net profit attributable to UBS Group AG shareholders CHF
1,034 million; diluted earnings per share CHF 0.27
10.1% annualized adjusted return on tangible equity
Strong overall results; exceptional performance in Personal
& Corporate Banking
Fully applied CET1 capital ratio 14.2%; fully applied CET1
leverage ratio 3.4%
UBS takes action to support United Nations Sustainable
Development Goals
Regulatory News:
In the second quarter of 2016, UBS (NYSE:UBS) (SWX:UBSN) / ISIN:
CH0024899483 delivered strong results with an adjusted1 profit
before tax of CHF 1,672 million, up slightly on the second quarter
2015 when market conditions were more favorable, particularly in
Asia. Net profit attributable to UBS Group AG shareholders was CHF
1,034 million, with diluted earnings per share of CHF 0.27. Group
annualized adjusted1 return on tangible equity was 10.1%. This
performance was achieved against the backdrop of continued economic
and heightened geopolitical uncertainty, which led to ongoing and
pronounced low client activity, and subdued primary market
issuance.
UBS maintained its strong capital position, with a fully applied
CET1 capital ratio of 14.2% and a fully applied CET1 leverage ratio
of 3.4%. Risk-weighted assets (RWA) were stable from the prior
quarter at CHF 214 billion, despite ongoing regulatory inflation.
The fully applied leverage ratio denominator (LRD) decreased
slightly to CHF 898 billion.
As of 30 June 2016, the Group achieved its previously announced
target of CHF 1.4 billion of net cost savings, a CHF 200 million
improvement in the quarter, making progress toward the CHF 2.1
billion 2017 year-end target, while continuing to absorb
substantially higher regulatory costs. UBS is taking responsible
measures to save costs across the firm in light of the current
challenging environment. At the same time, UBS is ensuring that its
control framework, quality of client service and strategic growth
priorities are not compromised.
“We achieved this strong result by helping our clients navigate
continued difficult market conditions, while staying disciplined on
risk and further reducing cost. UBS remains in a solid position
with strong capital, strategic clarity and a well-diversified
business model.“ Sergio P. Ermotti, Group Chief Executive
Officer
Information in this release is presented for UBS Group AG on a
consolidated basis unless otherwise specified. Financial
information for UBS AG (consolidated) does not differ materially
from UBS Group AG (consolidated) and a comparison between UBS Group
AG (consolidated) and UBS AG (consolidated) is provided at the end
of this news release. UBS AG second quarter 2016 report will be
available from 4 August 2016 in “Quarterly reporting“ at
www.ubs.com/investors.
Second quarter 2016: Divisional and Corporate Center
performance overview2
Wealth Management delivered an adjusted1 profit before
tax of CHF 606 million, down CHF 163 million from the second
quarter of 2015, a resilient performance despite much more subdued
client activity. Wealth Management attracted net new money of CHF
6.0 billion, while remaining focused on sustainable profitability,
driven by strong net inflows from Asia Pacific and Switzerland
partly offset by cross-border outflows in emerging markets and
Europe. Net new mandates in the quarter were CHF 6.9 billion,
increasing penetration to 27.1% of invested assets.
Wealth Management Americas recorded an adjusted1 profit
before tax of USD 281 million compared with USD 231 million in the
second quarter of 2015, reflecting record net interest income and
lower operating expenses. Net new money in the second quarter was
USD 2.4 billion, despite seasonal tax-related outflows, compared
with USD 0.7 billion of net outflows in the same quarter last
year.
Personal & Corporate Banking posted an
adjusted1 profit before tax of CHF 463 million, up from CHF 414
million in the second quarter of 2015, the best quarterly result
since the fourth quarter of 2008, with higher operating income and
lower operating expenses, despite continued challenges from
negative interest rates. The annualized net new business volume
growth rate for the personal banking business was a solid 3.0%,
with record first-half-year net new clients, driven by the firm’s
market-leading e-banking and mobile offering.
Asset Management delivered an adjusted1 profit before tax
of CHF 148 million, a 10% increase from CHF 134 million in the same
quarter last year, mainly due to higher performance fees in Global
Real Estate. Excluding money market flows, net new money outflows
were CHF 8.8 billion, driven by asset allocation moves, including
from active to passive investments, and clients’ liquidity
needs.
The Investment Bank posted an adjusted1 profit before tax
of CHF 447 million compared with CHF 617 million in the second
quarter of 2015. The annualized adjusted1 return on attributed
equity was strong for the quarter with prudent risk and resource
management, as well as decisive actions on costs. Investor Client
Services was down year-on-year despite a strong performance in
Foreign Exchange, Rates and Credit. Corporate Client Solutions’
revenues decreased, partly due to lower global fee pools,
reflecting prudent risk appetite in deal participation. The
Investment Bank’s RWA stood at CHF 64 billion and the LRD was CHF
267 billion as of quarter end.
Corporate Center – Services recorded an adjusted1 loss
before tax of CHF 213 million, a CHF 40 million improvement on the
second quarter of 2015. Group Asset and Liability Management
recorded an adjusted1 profit before tax of CHF 70 million.
Non-core and Legacy Portfolio posted an adjusted1 loss
before tax of CHF 124 million and reduced LRD by CHF 8 billion to
CHF 33 billion from the first quarter 2016.
1 Refer to the “Adjusted results“ paragraph at the end of this
news release.
2 From the second quarter of 2016 onward, our commentary on
quarterly Group and business divisions and Corporate Center
performance is based on a comparison with the results of the
quarter in the prior year.
UBS supports United Nations’ sustainability
initiatives
In June, UBS announced the winner of the UBS Grand Challenge, an
internal competition that mobilized over 1,200 employees to develop
innovative solutions for five of the new UN Sustainable Development
Goals. The winning team’s solution was a “save-as-you-go“ mobile
payment technology to help reduce pension gaps among lower- and
middle-income individuals, allowing them to automatically save for
their retirement every time they make an electronic payment. The
winning team will now work with the Center for Global Development
to bring the product to market.
As one of the first signatories of the UN Global Compact, and
with one of the largest portfolios of sustainable investment funds,
UBS is supporting the launch of the UN Global Compact 100
sustainability index. UBS helped develop the index, which provides
investors with a benchmark to invest in environmental, social and
governance (ESG) adherent businesses.
Awards and achievements
Wealth management researcher Scorpio Partnership confirmed UBS
as the world’s largest wealth manager with a total of USD 1.7
trillion assets under management. At the recent Euromoney Awards
for Excellence, UBS received accolades as the World’s Best Bank for
Wealth Management, Best Bank in Switzerland and World’s Best Bank
for Markets among others. UBS Investment Bank’s innovative trading
platform, UBS Neo, was honored at the Profit & Loss (P&L)
Digital FX Awards 2016 with four awards, including Best Platform.
It also won the Client Experience Award, and awards for Best Rates
Platform and Best Structured Products Platform. FinanceAsia
recognized UBS with a string of Platinum awards in its 20th
anniversary edition, including the pan-Asia Platinum award for Best
Private Bank and as joint winner in the Best Equity House category.
UBS was also confirmed recently as Switzerland’s most popular
employer among business students in the annual Trendence Institute
survey.
Outlook
Sustained market volatility, underlying macroeconomic
uncertainty and heightened geopolitical tensions, exacerbated by
the impact of the UK referendum vote to end EU membership,
continued to contribute to client risk aversion and generally low
transaction volumes. These conditions are unlikely to change in the
foreseeable future. Furthermore, lower than anticipated and
negative interest rates and the relative strength of the Swiss
franc, particularly against the euro, still present considerable
headwinds. In addition, the changes to the Swiss bank capital
standards and proposed further changes to the international
regulatory framework for banks will result in increasing capital
requirements and costs. UBS is well positioned to benefit from even
a moderate improvement in conditions and remains committed to
executing its strategy with discipline to mitigate these
effects.
Performance by business division and Corporate Center unit –
reported and adjusted¹,² For the
quarter ended 30.6.16 CHF million
Wealth Manage-
ment
Wealth Manage- ment
Americas
Personal &
Corporate Banking
Asset Manage-
ment
Investment Bank
CC – Services³
CC –GroupALM
CC – Non- core and
Legacy Portfolio
UBS Operating income as reported
1,815
1,879 1,085 483 2,000 78
45 19 7,404 of which: gain on sale of
investment in Visa Europe
21 102
123 of which: gains on sales of
real estate
120
120 of which: net foreign currency translation
losses⁴
(26) (26) of which: losses on sales of
subsidiaries and businesses
(23)
(23) Operating income (adjusted)
1,817 1,879 983 483 2,000
(42) 71 19 7,210 Operating
expenses as reported
1,297 1,643 551
369 1,716 190 2 148 5,915
of which: personnel-related restructuring expenses⁵
7
5 1 4 37 139 0 0
192 of which: non-personnel-related restructuring expenses⁵
6 0 0 6 4 168
0 0 185 of which: restructuring expenses
allocated from CC Services⁵
73 33 30
24 122 (287) 0 5 0
Operating expenses (adjusted)
1,211 1,605
520 335 1,553 170 2 143
5,538
of which: expenses for provisions for
litigation, regulatory and similar matters
9 16 0 (5) 26 2
0 23 72 Operating profit / (loss)
before tax as reported 518 237 534
114 284 (113) 44 (129)
1,489 Operating profit / (loss) before tax (adjusted)
606 275 463 148 447
(213) 70 (124) 1,672 For
the quarter ended 30.6.15 CHF million
WealthManage-ment
WealthManage-mentAmericas
Personal&CorporateBanking
AssetManage-ment
InvestmentBank
CC –Services³
CC –GroupALM
CC – Non-core andLegacyPortfolio
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 value
259 259 of which: gains on sales of subsidiaries and
businesses 56
56 of which: gain on a further partial sale of 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 expenses⁵ 18 0 0 0 0 85 0 7
110 of which: non-personnel-related restructuring expenses⁵
10 0 0 0 1 70 0 0 81 of which: restructuring expenses allocated
from CC Services⁵ 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
of which: expenses for provisions for
litigation, regulatory and similar matters
10 51 0 0 (12) 0 0 23 71
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
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 annualreports due to adjustments following organizational
changes, restatements due to the retrospective adoption of new
accounting standards or changes in accounting policies, and
eventsafter the reporting period. 3 Corporate Center Services
operating expenses presented in this table are after service
allocations to business divisions and other Corporate Center units.
4Related to the disposal of foreign subsidiaries and branches. 5
Refer to “Note 18 Changes in organization and disposals” in the
“Consolidated financial statements” section of the UBS Groupsecond
quarter 2016 report for more information.
UBS Group AG key figures
As of or for the quarter
ended As of or year-to-date CHF million, except where
indicated
30.6.16 31.3.16 31.12.15 30.6.15
30.6.16 30.6.15
Group results
Operating income
7,404 6,833 6,775 7,818 14,237 16,659 Operating
expenses
5,915 5,855 6,541 6,059 11,770 12,193
Operating profit / (loss) before tax
1,489 978 234
1,759 2,467 4,467 Net profit / (loss) attributable to UBS
Group AG shareholders
1,034 707 949 1,209
1,741 3,186 Diluted earnings per share (CHF)¹
0.27
0.18 0.25 0.32 0.45 0.85
Key performance
indicators²
Profitability
Return on tangible equity (%)
8.9 6.0 8.1 11.0 7.4 14.4 Return on assets, gross (%)
3.0 2.9 2.8 3.1 2.9 3.2 Cost / income ratio
(%)
79.8 85.7 95.7 77.4 82.6 73.1
Growth
Net profit growth (%)
(14.5) (64.2) 10.6 52.7
(45.4) 72.6 Net new money growth for combined wealth
management businesses (%)³
1.7 5.9 2.9 1.5 3.8
2.6
Resources
Common equity tier 1 capital ratio (fully applied,
%)⁴
14.2 14.0 14.5 14.4 14.2 14.4 Leverage
ratio (phase-in, %)⁵
6.0 6.0 6.2 5.4 6.0 5.4
Additional information
Profitability
Return on equity (RoE)
(%)
7.7 5.1 6.9 9.4 6.4 12.4 Return on
risk-weighted assets, gross (%)�
13.9 13.0 12.9 14.7
13.4 15.5
Resources
Total assets
989,397
966,873 942,819 950,168 989,397 950,168 Equity attributable
to UBS Group AG shareholders
52,876 54,845 55,313
50,211 52,876 50,211 Common equity tier 1 capital (fully
applied)⁴
30,264 29,853 30,044 30,265 30,264
30,265 Common equity tier 1 capital (phase-in)⁴
37,064 36,580 40,378 38,706 37,064 38,706
Risk-weighted assets (fully applied)⁴
213,840 213,558
207,530 209,777 213,840 209,777 Common equity tier 1 capital
ratio (phase-in, %)⁴
17.1 16.9 19.0 18.2 17.1
18.2 Total capital ratio (fully applied, %)⁴
23.1
22.7 22.9 21.2 23.1 21.2 Total capital ratio (phase-in, %)⁴
25.4 25.7 26.8 25.0 25.4 25.0 Leverage ratio
(fully applied, %)⁵
5.5 5.4 5.3 4.7 5.5 4.7
Leverage ratio denominator (fully applied)⁵
898,195
905,801 897,607 944,422 898,195 944,422 Liquidity coverage
ratio (%)⁷
133 134 124 114 133 114
Other
Invested assets (CHF billion)⁸
2,677 2,618
2,689 2,628 2,677 2,628 Personnel (full-time equivalents)
60,093 60,547 60,099 59,648 60,093 59,648
Market capitalization⁹
48,398 59,638 75,147 74,547
48,398 74,547 Total book value per share (CHF)⁹
14.27 14.74 14.75 13.71 14.27 13.71 Tangible book
value per share (CHF)⁹
12.54 13.04 13.00 12.04
12.54 12.04
1 Refer to "Note 9 Earnings per share
(EPS) and shares outstanding" in the "Consolidated financial
statements" section of the UBS Group second quarter 2016 report for
more information.2 Refer to the "Measurement of performance"
section of our Annual Report 2015 and to the “Recent developments”
section of the UBS Group second quarter 2016 report for the
definitions ofour 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 sheetand
capital optimization program in the second quarter of 2015. 4 Based
on the Basel III framework as applicable for Swiss systemically
relevant banks (SRBs). Refer to the "Capitalmanagement" section of
the UBS Group second quarter 2016 report for more information. 5
Calculated in accordance with Swiss SRB rules. Refer to the
“Capital management” section ofthe UBS Group second quarter 2016
report for more information. From 31 December 2015 onward, the
leverage ratio denominator calculation is aligned with the Basel
III rules. Figures forperiods prior to 31 December 2015 are
calculated in accordance with former Swiss SRB rules and are
therefore not fully comparable. 6 Based on fully applied
risk-weighted assets. 7 Referto the "Balance sheet, liquidity and
funding management" section of the UBS Group second quarter 2016
report for more information. Figures represent a 3-month average.
The second,third and fourth quarter 2015 liquidity coverage ratios
were adjusted from 121% to 114%, 127% to 121% and 128% to 124%,
respectively. 8 Includes invested assets for Personal &
CorporateBanking. 9 Refer to the "UBS shares" section of the UBS
Group second quarter 2016 report for more information.
Income statement
For the quarter ended % change from
Year-to-date CHF million
30.6.16 31.3.16 30.6.15
1Q16 2Q15 30.6.16 30.6.15 Net
interest income
1,164 1,712
1,490 (32) (22)
2,876 3,127 Credit loss (expense) / recovery
(7) (3) (13)
133 (46) (9) (29) Net
interest income after credit loss expense
1,158 1,709 1,478 (32)
(22) 2,867 3,098 Net fee and
commission income
4,087 4,093
4,409 0 (7)
8,180 8,810 Net trading income
1,891 1,013 1,647 87
15 2,904 3,781 of which: net
trading income excluding own credit
1,891 1,013 1,387 87
36 2,904 3,296 of which: own
credit on financial liabilities designated at fair value
259
486 Other
income
269 17 285
(6) 286 970
Total operating income
7,404
6,833 7,818 8 (5)
14,237 16,659 of which: net interest and trading
income
3,055 2,725 3,137
12 (3) 5,780
6,909 Personnel expenses
3,985
3,924 4,124 2 (3)
7,910 8,297 General and administrative
expenses
1,666 1,664
1,695 0 (2) 3,330
3,408 Depreciation and impairment of property, equipment and
software
240 243 209
(1) 15 483
429 Amortization and impairment of intangible assets
24 23 30 4
(20) 47 58 Total operating expenses
5,915 5,855 6,059
1 (2) 11,770
12,193 Operating profit / (loss) before tax
1,489 978 1,759 52
(15) 2,467 4,467 Tax expense /
(benefit)
376 270 443
39 (15) 646
1,113 Net profit / (loss)
1,113
708 1,316 57 (15)
1,820 3,354 Net profit / (loss) attributable to
non-controlling interests
79 0
106 (25)
79 168
Net profit / (loss) attributable to UBS
Group AG shareholders 1,034
707 1,209 46 (14)
1,741 3,186
Comprehensive
income
Total comprehensive income
1,558 349 (584)
346 1,907 1,142 Total
comprehensive income attributable to non-controlling interests
407 (50) 11
357 (71)
Total comprehensive income attributable to UBS Group AG
shareholders 1,151 399
(595) 188
1,550 1,213
Comparison
UBS Group AG (consolidated) versus UBS AG (consolidated)
As of or for the quarter ended 30.6.16
As of or for the quarter ended 31.3.16
As of or for the quarter ended 31.12.15 CHF million, except where
indicated
UBS Group AG
(consolidated)
UBS AG
(consolidated)
Difference
(absolute)
UBS GroupAG
(consolidated)
UBS AG
(consolidated)
Difference
(absolute)
UBS GroupAG
(consolidated)
UBS AG
(consolidated)
Difference
(absolute)
Income statement
Operating income
7,404
7,399 5 6,833 6,855
(22) 6,775 6,771 4
Operating expenses
5,915
5,942 (27) 5,855 5,876
(21) 6,541 6,543 (2)
Operating profit / (loss) before tax
1,489 1,457 32 978
979 (1) 234 228 6
of which: Wealth Management
518
514 4 557 552 5
344 342 2 of which: Wealth
Management Americas
237
225 12 211 204 7
14 8 6 of which: Personal &
Corporate Banking
534 533
1 399 399 0
355 356 (1) of which: Asset Management
114 113 1
90 90 0 171 171
0 of which: Investment Bank
284
267 17 253 236
17 80 83 (3) of which:
Corporate Center
(198)
(195) (3) (534) (502)
(32) (729) (732) 3 of
which: Services
(113)
(109) (4) (203) (193)
(10) (345) (349) 4 of
which: Group ALM
44 42
2 (148) (127) (21)
(56) (54) (2) of which: Non-core and
Legacy Portfolio
(129)
(128) (1) (183) (182)
(1) (329) (329) 0 Net
profit / (loss)
1,113
1,088 25 708 713
(5) 950 951 (1)
of which: net profit / (loss) attributable
to shareholders
1,034 1,009 25
707 713 (6)
949 950 (1)
of which: net profit / (loss) attributable
to preferred noteholders
78 (78)
0 0
0 0
of which: net profit / (loss) attributable
to non-controlling interests
79 1 78
0 0 0 1 1
0
Statement of comprehensive income
Other comprehensive income
445
446 (1) (358) (358)
0 214 214 0 of which:
attributable to shareholders
117
118 (1) (308) (308)
0 177 177 0
of which: attributable to preferred
noteholders
328 (328)
(50) 50
35 (35)
of which: attributable to non-controlling
interests
329 0 329
(50) (1) (49) 37
2 35 Total comprehensive income
1,558 1,535 23 349
355 (6) 1,164 1,165
(1) of which: attributable to shareholders
1,151 1,127 24
399 405 (6) 1,126
1,126 0
of which: attributable to preferred
noteholders
406 (406)
(50) 50
35 (35)
of which: attributable to non-controlling
interests
407 1 406
(50) (1) (49) 38
3 35
Balance sheet
Total assets
989,397
990,135 (738) 966,873
968,158 (1,285) 942,819
943,256 (437) Total liabilities
935,835 936,096 (261)
910,088 910,557 (469)
885,511 886,013 (502) Total equity
53,562 54,039 (477)
56,786 57,601 (815)
57,308 57,243 65
of which: equity attributable to
shareholders
52,876 53,353
(477) 54,845 55,660 (815)
55,313 55,248 65
of which: equity attributable to preferred
noteholders
649 (649)
1,905 (1,905)
1,954 (1,954)
of which: equity attributable to
non-controlling interests
686 37 649
1,941 36 1,905
1,995 41 1,954
Capital information
Common equity tier 1 capital
(fullyapplied)
30,264 32,184
(1,920) 29,853 32,118 (2,265)
30,044 32,042 (1,998)
Common equity tier 1 capital
(phase-in)
37,064 38,913
(1,849) 36,580 38,762 (2,182)
40,378 41,516 (1,138) Additional
tier 1 capital (fully applied)
7,785
2,688 5,097 7,585
2,643 4,942 6,154 1,252
4,902 Tier 2 capital (fully applied)
11,331 10,441 890
11,112 10,217 895 11,237
10,325 912 Total capital (fully applied)
49,381 45,313 4,068
48,551 44,978 3,573
47,435 43,619 3,816 Risk-weighted assets
(fully applied)
213,840
214,210 (370) 213,558
214,973 (1,415) 207,530 208,186
(656)
Common equity tier 1 capital ratio
(fullyapplied, %)
14.2 15.0 (0.8)
14.0 14.9 (0.9)
14.5 15.4 (0.9)
Common equity tier 1 capital ratio
(phase-in, %)
17.1 17.9 (0.8)
16.9 17.8 (0.9)
19.0 19.5 (0.5) Total capital ratio (fully
applied, %)
23.1 21.2
1.9 22.7 20.9 1.8
22.9 21.0 1.9
Leverage ratio denominator
(fullyapplied)
898,195 899,075
(880) 905,801 907,277 (1,476)
897,607 898,251 (644)
Leverage ratio (fully applied, %)
5.5 5.0 0.5
5.4 5.0 0.4 5.3
4.9 0.4
Group and business division targets and expectations (ranges for
sustainable performance over the cycle)1
Wealth Management
Net new money growth rate
Adjusted cost/income ratio
3–5%
55–65%
10–15% annual adjusted pre-tax
profitgrowth for combined businessesthrough the cycle
Wealth Management
Americas
Net new money growth rate
Adjusted cost/income ratio
2–4%
75–85%
Personal & Corporate
Banking
Net new business volume growth rate
Net interest margin
Adjusted cost/income ratio
1–4% (personal banking)
140–180 bps
50–60%
Asset Management
Net new money growth rate
Adjusted cost/income ratio
Adjusted annual pre-tax profit
3–5% excluding money market flows
60–70%
CHF 1 billion in the medium term
Investment Bank
Adjusted annual pre-tax RoAE
Adjusted cost/income ratio
RWA (fully applied)
LRD (fully applied)
>15%
70–80%
Expectation: around CHF 85 billion
short/medium term2
Expectation: around CHF 325 billion
short/medium term2
Group
Net cost reduction
Adjusted cost/income ratio
Adjusted return on tangible equity
Basel III CET1 ratio (fully applied)
RWA (fully applied)
LRD (fully applied)
CHF 2.1 billion by end 2017
60–70%
>15%
at least 13%
Expectation: around CHF 250 billion
short/medium term2
Expectation: around CHF 950 billion
short/medium term2
1 Refer to page 36-37 of the Annual Report
2015 report for detail. 2 Reflects known FINMA multipliers and
methodology changes for RWA, and assumes normalized market
conditions forboth RWA and LRD.
UBS’s second quarter 2016 report, news release and slide
presentation will be available from 06:45 CEST on Friday, 29 July
2016, at www.ubs.com/quarterlyreporting.
UBS will hold a presentation of its second quarter 2016 results
on Friday, 29 July 2016. The results will be presented by Sergio P.
Ermotti, Group Chief Executive Officer, Kirt Gardner, Group Chief
Financial Officer, Martin Osinga, Global Head of Investor Relations
ad interim, and Hubertus Kuelps, Group Head of Communications &
Branding.
Time
• 09:00–11:00 CEST
• 08:00–10:00 BST
• 03:00–05:00 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.
Cautionary Statement Regarding Forward-Looking
Statements
This news 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 targets for risk-weighted assets (RWA) and
leverage ratio denominator (LRD), and the degree to which UBS is
successful in implementing changes to its wealth management
businesses to meet changing market, regulatory and other
conditions; (ii) the continuing low or negative interest rate
environment, developments in the macroeconomic climate and in the
markets in which UBS operates or to which it is exposed, including
movements in securities prices or liquidity, credit spreads, and
currency exchange rates, and the effects of economic conditions,
market developments, and geopolitical tensions on the financial
position or creditworthiness of UBS’s clients and counterparties as
well as on client sentiment and levels of activity; (iii) changes
in the availability of capital and funding, including any changes
in UBS’s credit spreads and ratings, as well as availability and
cost of funding to meet requirements for debt eligible for total
loss-absorbing capacity (TLAC) requirements, 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, TLAC, leverage ratio, liquidity and funding requirements,
incremental tax requirements, additional levies, limitations on
permitted activities, constraints on remuneration or other
measures, and the effect this would have on UBS’s business
activities; (v) uncertainty as to when and to what degree the Swiss
Financial Market Supervisory Authority (FINMA) will approve a
limited reduction of gone concern requirements due to measures to
reduce resolvability risk; (vi) the degree to which UBS is
successful in implementing further changes to its legal structure
to improve its resolvability and meet related regulatory
requirements, including changes in legal structure and reporting
required to implement US enhanced prudential standards,
implementing a service company model, completing the transfer of
the Asset Management business to a holding company, 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 relating to capital requirements, resolvability
requirements and proposals in Switzerland and other countries for
mandatory structural reform of banks and the extent to which such
changes have the intended effects; (vii) the uncertainty arising
from the UK referendum vote to withdraw from the EU and the
potential need to make changes in UBS's legal structure and
operations as a result of a UK exit from the EU; (viii) 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; (ix) changes in the standards of conduct
applicable to our businesses that may result from new regulation or
new enforcement of existing standards, including proposed measures
to impose new and enhanced duties when interacting with customers
and in the execution and handling of customer transactions; (x) 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,
including the potential for disqualification from certain
businesses or loss of licenses or privileges as a result of
regulatory or other governmental sanctions, as well as the effect
that litigation, regulatory and similar matters have on the
operational component of our RWA; (xi) 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; (xii) 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; (xiii)
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; (xiv) limitations on the effectiveness of
UBS’s internal processes for risk management, risk control,
measurement and modeling, and of financial models generally; (xv)
whether UBS will be successful in keeping pace with competitors in
updating its technology, particularly in trading businesses; (xvi)
the occurrence of operational failures, such as fraud, misconduct,
unauthorized trading, financial crime, cyber-attacks, and systems
failures; (xvii) restrictions on the ability of UBS Group AG to
make payments or distributions, including due to restrictions on
the ability of its subsidiaries to make loans or distributions,
directly or indirectly, or, in the case of financial difficulties,
due to the exercise by FINMA of its broad statutory powers in
relation to protective measures, restructuring and liquidation
proceedings; (xviii) the degree to which changes in regulation,
capital or legal structure, financial results or other factors,
including methodology, assumptions and stress scenarios, may affect
UBS’s ability to maintain its stated capital return objective; and
(xix) 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 2015. 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
In addition to reporting our results in accordance with
International Financial Reporting Standards (IFRS), we report
adjusted results that exclude items that management believes are
not representative of the underlying performance of our businesses.
Such adjusted results are non-GAAP financial measures as defined by
SEC regulations. Unless otherwise indicated, second quarter of 2016
“adjusted“ figures exclude each of the following items, to the
extent applicable, on a Group and business division level: a gain
of CHF 123 million on the sale of our investment in Visa Europe,
gains on sales of real estate in Switzerland of CHF 120 million,
net foreign currency translation losses of CHF 26 million, a loss
of CHF 23 million on the sale of a subsidiary, and net
restructuring expenses of CHF 377 million. For the second quarter
of 2015, we excluded an own credit gain of CHF 259 million, gains
of CHF 56 million on the sale of a business, a gain from a further
partial sale of our investment in Markit of CHF 11 million, as well
as net restructuring expenses of CHF 191 million and an impairment
of an intangible asset of CHF 11 million. Refer to the “Group
performance“ section of UBS's second quarter 2016 report for more
information on adjusted results.
Rounding
Numbers presented throughout this news release 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 calculated on the basis of 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160728006677/en/
UBS Group AG and UBS AGInvestor contactSwitzerland: +41-44-234
41 00orMedia contactSwitzerland: +41-44-234 85 00UK: +44-207-567 47
14Americas: +1-212-882 58 57APAC: +852-297-1 82 00
UBS (NYSE:UBS)
Historical Stock Chart
From Mar 2024 to Apr 2024
UBS (NYSE:UBS)
Historical Stock Chart
From Apr 2023 to Apr 2024