Report of Foreign Issuer (6-k)
April 09 2020 - 6:33AM
Edgar (US Regulatory)
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: April 9, 2020
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 offices)
Indicate by check mark whether the registrants file or
will file annual reports under cover of Form 20‑F or Form 40-F.
Form 20-F x Form
40-F o
This Form 6-K consists of the new release which appears immediately
following this page.
Investor
Relations
Tel. +41-44-234 41 00
Media Relations
Tel. +41-44-234 85 00
09 April 2020
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News Release
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UBS
agrees to pay 2019 dividend in two instalments following FINMA request
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Following a request from FINMA,
the UBS Board of Directors proposes shareholders approve that the previously
announced dividend of USD 0.73 for the financial year 2019 will be paid in
two instalments, a dividend distribution of USD 0.365 per share and the
establishment of a special dividend reserve of USD 0.365 per share
The Board of Directors intends
to propose a special dividend of USD 0.365 per share after the publication of
UBS’s third quarter results, subject to shareholders approval at an extraordinary
general meeting
We decided to comply with the
request from FINMA even as UBS’s strong capital, funding and liquidity
position enables it to support its clients and the economy while paying the
dividend in full
UBS currently expects to report
a first quarter 2020 net profit of around USD 1.5 billion and expects its
CET1 capital and CET1 leverage ratios to be in line with its targets, and
well above regulatory requirements
As part of the ongoing UBS COVID-19
response, we are actively supporting the economy, in particular by lending to
our clients in Switzerland and internationally. We are also extending
liquidity to SMEs and advising corporate, institutional and wealth management
clients around the world
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Zurich / Basel, 09 April 2020 – Following a
request from FINMA, the Board of Directors has revised the 2019 dividend
proposal to be approved by shareholders at the Annual General Meeting on 29
April 2020. The Board of Directors asks shareholders to approve a dividend
distribution of USD 0.365 per share to be paid on 7 May 2020 and a special
dividend reserve of USD 0.365 per share. The Board of Directors intends to
propose the distribution of this additional USD 0.365 per share at an
extraordinary general meeting, to be convened on 19 November 2020, after
publication of UBS’s third quarter results.
UBS currently expects to report a first quarter
2020 net profit of around USD 1.5 billion, with strong operating performance in
all business divisions, even after accounting for credit loss expenses and own
credit valuation adjustments. The firm expects its CET1 capital and CET1
leverage ratios at the end of the first quarter 2020 to be in line with its
targets, and well above regulatory requirements, despite market conditions
leading to a significant increase in credit and market risk RWAs. UBS will
publish its first quarter 2020 results on 28 April.
Axel A. Weber, Chairman of the Board of
Directors: "Our financial strength well above regulatory requirements and
prudent risk management allow us to deliver on our current capital returns
policy. Nevertheless, at FINMA's request, we have adjusted the 2019 dividend
payout proposal given the high and unprecedented uncertainty."
UBS Group AG and
UBS AG, News Release, 09 April-2020 Page
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Investor
Relations
Tel. +41-44-234 41 00
Media Relations
Tel. +41-44-234 85 00
Sergio P. Ermotti, Group Chief Executive Officer:
"The first quarter of 2020 once again showed our business model's ability
to perform well under a variety of market conditions. We have been supporting
our clients with lending and advice, helping them to navigate in this very
difficult environment."
To the extent UBS decides not to proceed with the
payment of the second instalment of the 2019 dividend to preserve capital, we
will eliminate all cash payments of the 2020 GEB incentive award and allocate
them into our deferred equity-based and contingent capital compensation plans.
As needed, we also commit to take further measures as the year unfolds in all
2020 compensation decisions and review our policies for both management and the
Board of Directors.
UBS supports the immediate measures announced by
the Swiss Federal Council to support the economy with a focus on SME in
conjunction with UBS and other Swiss banks. The firm has already provided CHF
2.1 billion in liquidity to over 16,000 mostly small and medium-sized companies
since the launch of the Swiss government-backed lending program on 26 March
2020. UBS has committed to make no profit from this support. Through our Swiss
business domestically and our Investment Bank globally, we have provided
liquidity to our corporate clients. Our Global Wealth Management business has
provided advice to clients worldwide. Finally, UBS has committed to donate USD
30 million towards COVID-19 aid projects to support the communities in which
the firm operates.
Investor contact
Switzerland: +41-44-234 41 00
Media contact
Switzerland: +41-44-234 85 00
UK: +44-207-567 47 14
Americas: +1-212-882 58 58
APAC: +852-297-1 82 00
Cautionary Statement Regarding Forward-Looking
Statements
This media 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
development s and results to differ materially from UBS’s expectations. The
outbreak of COVID-19 and the measures being taken globally to reduce the peak
of the resulting pandemic will likely have a significant adverse effect on
global economic activity, including in China, the United States and Europe, and
an adverse effect on the credit profile of some of our clients and other market
participants, which may result in an increase in expected credit loss expense
and credit impairments. The unprecedented scale of the measures to control the
COVID-19 outbreak create significantly greater uncertainty about forward
looking statements, in addition to the factors that generally affect our
businesses, but not limited to: (i) the degree to which UBS is successful in
the ongoing execution of its strategic plans, including its cost reduction and
efficiency initiatives and its ability to manage its levels of risk-weighted
assets (RWA) and leverage ratio denominator (LRD), liquidity coverage ratio and
UBS Group AG and
UBS AG, News Release, 09 April-2020 Page
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Investor
Relations
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Media Relations
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other financial resources, including changes
in RWA assets and liabilities arising from higher market volatility and other
changes related to the COVID-19 pandemic. (ii) the degree to which UBS is
successful in implementing changes to its businesses to meet changing market,
regulatory and other conditions; (iii) the continuing low or negative interest
rate environment in Switzerland and other jurisdictions, (iv) developments
(including as a result of the COVID-19 pandemic) 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, and changes to national trade policies 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); (iv)
changes in or the implementation of financial legislation and regulation in
Switzerland, the US, the UK, the European Union and other financial centers
that have imposed, or resulted in, or may do so in the future, more stringent
or entity-specific capital, TLAC, leverage ratio, net stable funding ratio,
liquidity and funding requirements, heightened operational resilience
requirements, incremental tax requirements, additional levies, limitations on
permitted activities, constraints on remuneration, constraints on transfers of
capital and liquidity and sharing of operational costs across the Group or other
measures, and the effect these will or would have on UBS’s business activities;
(v) the degree to which UBS is successful in implementing further changes to
its legal structure to improve its resolvability and meet related regulatory
requirements 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, proposals in Switzerland and other jurisdictions for mandatory
structural reform of banks or systemically important institutions or to other
external developments, and the extent to which such changes will have the
intended effects; (vi) UBS’s ability to maintain and improve its systems and
controls for the detection and prevention of money laundering and compliance
with sanctions to meet evolving regulatory requirements and expectations, in
particular in the US; (vii) the uncertainty arising from the UK’s 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 regulations or new enforcement of existing standards, including
recently enacted and 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, potentially large fines
or monetary penalties, or the 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 risk
component of our RWA as well as the amount of capital available for return to
shareholders; (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; (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) UBS’s ability to
implement new technologies and business methods, including digital services and
technologies, and ability to successfully compete with both existing and new
financial service providers, some of which may not be regulated to the same
extent; (xv) limitations on the effectiveness of UBS’s internal processes for
risk management, risk control, measurement and modeling, and of financial
models generally; (xvi) the occurrence of operational failures, such as fraud,
misconduct, unauthorized trading, financial crime, cyberattacks, and systems
failures, the risk of which is increased while COVID-19 control measure require
large portions of UBS and it’s service providers staff to work remotely ; (
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 or the regulators of UBS’s
operations in other countries of their 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 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
UBS Group AG and
UBS AG, News Release, 09 April-2020 Page
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Investor
Relations
Tel. +41-44-234 41 00
Media Relations
Tel. +41-44-234 85 00
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 2019. 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.
UBS Group AG and
UBS AG, News Release, 09 April-2020 Page
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This Form 6-K is
hereby incorporated by reference into (1) each of the registration statements
of UBS AG on Form F-3 (Registration Number 333-225551) and on Form F-4
(Registration Number 333-234705), and of UBS Group AG on Form S-8 (Registration
Numbers 333-200634; 333-200635; 333-200641; 333-200665; 333-215254; 333-215255;
and 333-228653), and into each prospectus outstanding under any of the
foregoing registration statements, (2) any outstanding offering circular or
similar document issued or authorized by UBS AG that incorporates by reference
any Form 6-K’s of UBS AG that are incorporated into its registration statements
filed with the SEC, and (3) the base prospectus of Corporate Asset Backed
Corporation (“CABCO”) dated June 23, 2004 (Registration Number 333-111572), the
Form 8-K of CABCO filed and dated June 23, 2004 (SEC File Number 001-13444),
and the Prospectus Supplements relating to the CABCO Series 2004-101 Trust
dated May 10, 2004 and May 17, 2004 (Registration Number 033-91744 and
033-91744-05).
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrants have duly
caused this report to be signed on their behalf by the undersigned, thereunto
duly authorized.
UBS Group AG
By: _/s/ David Kelly______________
Name: David Kelly
Title: Managing Director
By: _/s/ Ella Campi ______________
Name: Ella Campi
Title: Executive Director
UBS AG
By: _/s/ David Kelly______________
Name: David Kelly
Title: Managing Director
By: _/s/ Ella Campi ______________
Name: Ella Campi
Title: Executive Director
Date: April 9, 2020
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