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Ralph Hamers Quote (Graphic: UBS Group
AG)
(NYSE:UBS) (SWX:UBSN):
UBS’s 3Q21 results materials are available at ubs.com/investors
The audio webcast of the earnings call starts at 09:00 CEST, 26
October 2021
Group highlights
- We are executing relentlessly for our clients Our
clients continued to put their trust in us, as was evident from the
continued momentum in flows and volume growth throughout the year
to-date. Together with favorable market conditions and investor
sentiment, this led to growth across the firm. During 9M21, GWM saw
USD 80bn of net new fee-generating assets with inflows in all
regions, and there was USD 23bn in net new lending across GWM and
P&C Personal Banking, while strong client activity drove YoY
increases of 8% in transaction-based income in GWM and 44% in
Global Banking income.
- We are delivering on our strategic initiatives to drive
growth and efficiency During 9M21, we facilitated USD 26bn of
investments into private markets from private and institutional
investors, helping our private clients benefit from our scale to
receive institutional-like access and pricing. Sustainability
remains an important topic for our clients and for us, and
sustainability-focused and impact investments grew an annualized
63% year-to-date and reached USD 207bn. Our integrated SMA offering
in the US continues to attract inflows, as do our mandates through
My Way.
- We are committed to driving higher returns by unlocking the
power of UBS 3Q21 PBT was USD 2,865m (up 11% YoY), including
net credit loss releases of USD 14m. The cost/income ratio was
68.7%, 1.7 percentage points lower YoY. Operating income increased
by 2% YoY, while operating expenses decreased by 1%. Net profit
attributable to shareholders was USD 2,279m (up 9% YoY), with
diluted earnings per share of USD 0.63. Return on CET1 capital 1
was 20.8%. The quarter-end CET1 capital ratio was 14.9% (guidance:
~13%) and the CET1 leverage ratio was 4.31% (guidance: >3.7%),
both up QoQ. We repurchased USD 2.0bn of shares in 9M21. We intend
to repurchase up to USD 0.6bn of shares during 4Q21.
Ralph Hamers, UBS’s Group
CEO
“Our business momentum, our focus on fueling growth, on
disciplined execution and on delivering our full ecosystem to
clients – all of this led to another strong quarter financially
across all of our business divisions and regions.
The market and economic backdrop were broadly positive in the
third quarter; although there has been some uncertainty recently.
Regardless of the backdrop, we have continued and will continue to
provide our clients with valuable advice and quality execution,
enabling them to navigate volatility and capture opportunities.
We made tremendous progress last quarter in delivering on our
client promise by putting clients at the center of all we do –
whether it be by working across the firm to provide new investment
opportunities, further developing targeted offerings based on
client preferences so we can offer a more personalized experience,
or partnering externally to develop the largest dedicated impact
investment fund in biotech history.
Today, we are seeing the benefits of delivering our full
ecosystem to clients in a seamless way as One UBS. And there is so
much more we can and must do.
This will be key to the success of our strategy. And we’re
looking forward to presenting to you what this means for clients
and for shareholders with our strategic update on 1 February
2022.”
Financial performance – selected
highlights
Group
3Q21
9M21
Return on CET1 capital
20.8%
19.5%
Target: 12–15%
Return on tangible equity
17.2%
15.5%
Cost/income ratio
68.7%
71.4%
Target: 75–78%
Net profit attributable to
shareholders
USD 2.3bn
USD 6.1bn
CET1 capital ratio
14.9%
14.9%
Guidance: ~13%
CET1 leverage ratio
4.31%
4.31%
Guidance: >3.7%
Tangible book value per share
USD 15.62
USD 15.62
Global Wealth Management
Profit before tax
USD 1.5bn
USD 4.2bn
PBT growth
43%
34%
Target: 10–15% over the cycle
Invested assets
USD 3.2trn
USD 3.2trn
Net new fee-generating assets
USD 19bn
USD 80bn
Personal & Corporate
Banking
Profit before tax
CHF 0.4bn
CHF 1.3bn
Return on attributed equity (CHF)
21%
20%
Net new loans, Personal Banking
CHF 0.7bn
CHF 2.1bn
Asset Management
Profit before tax
USD 0.2bn
USD 0.7bn
Invested assets
USD 1.2trn
USD 1.2trn
Net new money excl. money markets
USD 1bn
USD 32bn
Investment Bank
Profit before tax
USD 0.8bn
USD 1.9bn
Return on attributed equity
26%
20%
RWA and LRD vs. Group
33% / 31%
33% / 31%
Guidance: up to 1/3
Third quarter 2021 performance
overview
Group PBT USD 2,865m, +11% YoY
PBT was USD 2,865m (up 11% YoY), including net credit loss
releases of USD 14m. The cost/income ratio was 68.7%, 1.7
percentage points lower YoY. Operating income increased by 2% YoY,
while operating expenses decreased by 1%. Net profit attributable
to shareholders was USD 2,279m (up 9% YoY), with diluted earnings
per share of USD 0.63. Return on CET1 capital1 was 20.8%.
Global Wealth Management (GWM) PBT USD 1,516m, +43%
YoY
GWM delivered double-digit PBT growth in all regions. Operating
income increased by 17% YoY. Recurring net fee income increased by
23%, primarily driven by higher average fee-generating assets,
reflecting positive market performance and net new fee-generating
assets. Net interest income increased by 15%, on higher loan
revenues from higher volumes and margins, as well as higher deposit
revenues. Transaction-based income rose 4%, mainly driven by high
levels of client activity in the Americas, EMEA and Switzerland.
Net credit loss releases were USD 11m, compared with net credit
loss releases of USD 22m in 3Q20. The cost/income ratio improved to
69.8%, down 5.8 percentage points YoY, as income increased by 17%
and operating expenses increased by 8% driven by financial advisor
variable compensation. Loans increased to USD 231bn, with USD 3bn
of net new loans, driven by the Americas. Invested assets decreased
by 1% sequentially to USD 3,198bn. Fee-generating assets2 were
slightly down sequentially to USD 1,412bn. Net new fee-generating
assets2 were USD 18.8bn, supported by inflows in nearly all
regions, and represented an annualized growth rate of 5% in the
quarter.
Personal & Corporate Banking (P&C) PBT CHF 439m, +44%
YoY
Operating income increased by 18% with increases across
recurring net fee, net interest, and transaction-based income
lines, with a benefit from net credit loss releases of CHF 6m
compared with net credit loss expenses of CHF 84m in 3Q20.
Recurring net fee income increased by 18%, primarily reflecting
higher custody, mandate and investment fund fees. Net interest
income was up 5% mainly driven by proactive deposit management that
led to a decrease in liquidity and funding costs. Revenue from
credit card and foreign exchange transactions was the main driver
of the 7% improvement in transaction-based income, reflecting a
continued increase in travel and leisure spending by clients as
pandemic restrictions ease. The cost/income ratio was 56.6%, an
improvement of 1.7 percentage points YoY, as income increased by 6%
and operating expenses increased by 3%.
Asset Management (AM) PBT USD 214m, (71%) YoY
Excluding a gain of USD 571m from the sale of a majority
investment in Fondcenter AG (now Clearstream Fund Centre AG) in
3Q20, PBT would have increased by 27%. Excluding this gain,
operating income would have been broadly flat YoY, as an increase
in net management fees offset a decrease in performance fees. The
cost/income ratio was 63.9%, a 7.4 percentage point improvement YoY
when excluding the aforementioned gain, with income flat YoY and
10% lower operating expenses. Invested assets decreased by 2%
sequentially to USD 1,154bn. Net new money was USD 1.5bn (USD 1.1bn
excluding money market flows).
Investment Bank (IB) PBT USD 837m, +32% YoY
Operating income increased by 1% YoY, or 11% excluding a USD
215m gain from the sale of intellectual property rights associated
with the Bloomberg Commodity Index family in 3Q20. Global Banking
revenues increased by 22%, or USD 141m, driven by Advisory and
Capital Market revenues, outperforming the overall global fee pool.
Global Markets revenues decreased by 7% or USD 126m. Excluding the
aforementioned gain, revenues would have increased by 5%, primarily
driven by higher revenues in equity derivatives, cash equities,
prime brokerage and capital market financing. Net credit loss
expenses were USD 5m, compared with net credit loss expenses of USD
15m in 3Q20. The cost/income ratio was 66.5%, a 7.6 percentage
point improvement YoY, as income increased by 1% and operating
expenses decreased by 10%, as 3Q20 included USD 229m of expenses
relating to the modification of certain outstanding deferred
compensation awards. Annualized return on attributed equity was
26.4%.
Group Functions PBT USD (180)m, compared with USD (184)m in
3Q20
Extending UBS’s leadership in
sustainable finance
Sustainable finance has been a firm-wide priority at UBS for
years. UBS’s aim is to continue to help private and institutional
clients meet their investment objectives through sustainable
finance, making it a critical component of UBS’s strategy. In
addition, the firm wants to be the provider of choice for clients
who wish to mobilize capital toward the achievement of the United
Nations 17 Sustainable Development Goals.
Tailored advice on sustainable investing topics
According to the UBS Investor Sentiment survey, published in
July 2021, business owners see an array of potential benefits in
sustainability over the next three years. Of those surveyed, 61%
believe sustainability could generate more revenue, 57% believe it
could improve client relationships and 55% believe it could do the
same for employee relationships.
In July, UBS announced its next step in providing personalized,
tailored sustainable investing advice for its wealth management
clients. With the new offering, clients can tailor the advice they
receive along six sustainable investing topics: Climate change,
Water, Pollution and waste, People, Products and services, and
Governance. These have been identified by UBS Global Wealth
Management’s Chief Investment Office as being those that are most
important to drive businesses and industries to a sustainable
future.
For the second time in a row, UBS Group ranked 1st out of 78
firms in the 2021 Global Association of Risk Professionals Climate
Risk Survey. This reflects UBS’s well-established climate
governance, strategy, risk management and disclosure. UBS is making
good progress in developing its climate action plan, which will be
communicated in the firm’s climate reporting in March 2022.
UBS has also become a member of the Taskforce on Nature-related
Financial Disclosures (the TNFD). The TNFD brings together experts
in biodiversity, data, metrics, standards and disclosure frameworks
into a single collaborative endeavor that aims to create a
practical framework for nature-related risks. Its goal is to
accelerate the shift in global financial flows from nature-negative
to nature-positive outcomes.
Investing with impact
In September, UBS launched the India chapter of its independent
philanthropic arm, UBS Optimus Foundation. For more than two
decades, UBS Optimus Foundation has been at the forefront of
impactful philanthropy, delivering scalable solutions for social
and environmental issues.
The new chapter will give philanthropists and UBS clients a
direct channel to participate in some of the ground-breaking work
achieved by UBS Optimus Foundation in India and elsewhere. It also
deepens UBS’s commitment to the region and to clients seeking to
alleviate social inequality and its root causes. These programs
have benefited four million children and helped train nearly
240,000 professionals since 2015.
To harness the power of collective philanthropy, in October, UBS
Collectives was announced. This innovative social-impact initiative
connects UBS’s philanthropic clients, bringing together their
expertise and mobilizing their capital to address the issues that
matter most to them in the areas of child protection, climate
change, health and education.
UBS Global Wealth Management clients have also invested USD 650m
in MPM Capital’s Oncology Impact Fund 2 (OIF 2), an impact
investing initiative that invests in private and public companies
developing innovative treatments for cancer. This represents more
than 75% of the total USD 850m raised for the fund. The total sum
raised makes OIF 2 the largest dedicated impact investment fund in
biotech history.
Information in this news 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.
1 Return on CET1 capital is calculated as
annualized net profit attributable to shareholders divided by
average common equity tier 1 capital.
2 New performance measure for our Global
Wealth Management business: Beginning with the first quarter of
2021, we introduced net new fee-generating assets as a new
performance measure for our Global Wealth Management business. The
new measure captures the growth in clients’ invested assets from
net flows related to mandates, investment funds with recurring
fees, hedge funds and private markets investments, combined with
dividend and interest payments into mandates, less fees paid to UBS
by clients. The underlying assets and products generate most of
Global Wealth Management’s recurring net fee income and a portion
of its transaction-based income. Compared with net new money, net
new fee-generating assets exclude flows related to assets that
primarily generate revenues when traded in the form of commissions
and transaction spreads, or borrowed against in the form of net
interest income, and also exclude deposit flows that generate net
interest income, and custody positions that generate custody fees.
We will no longer report net new money for Global Wealth Management
in our quarterly reports, but will continue to disclose this
measure in our annual reports.
Selected financial information of our
business divisions and Group Functions1
For the quarter ended
30.9.21
USD million
Global Wealth
Management
Personal & Corporate
Banking
Asset Management
Investment Bank
Group Functions
Total
Operating income
5,002
1,091
593
2,510
(68)
9,128
of which: gain from the sale of domestic
wealth management business in Austria
100
100
Operating expenses
3,486
613
379
1,673
112
6,264
of which: net restructuring expenses2
21
7
6
14
17
66
Operating profit / (loss) before
tax
1,516
478
214
837
(180)
2,865
For the quarter ended 30.9.20
USD million
Global Wealth Management
Personal & Corporate
Banking
Asset Management
Investment Bank
Group Functions
Total
Operating income
4,280
931
1,162
2,485
78
8,935
of which: net gain from the sale of a
majority stake in Fondcenter AG
60
571
631
of which: gain from the sale of
intellectual property rights
215
215
of which: net gains from properties sold
or held for sale
64
64
of which: gain related to investment in
associates
6
19
26
of which: gain from the sale of equity
investment measured at fair value through profit or loss
4
18
22
Operating expenses
3,223
596
423
1,853
262
6,357
of which: acceleration of expenses in
relation to outstanding deferred compensation awards
46
3
22
229
58
359
of which: expenses associated with
terminated real estate leases
72
72
Operating profit / (loss) before
tax
1,057
335
739
632
(184)
2,578
1 The “of which” components of operating
income and operating expenses disclosed in this table are items
that are not recurring or necessarily representative of the
underlying business performance for the reporting period specified.
2 Includes curtailment gains of USD 8 million (second quarter of
2021: USD 59 million), which represent a reduction in the defined
benefit obligation related to the Swiss pension plan resulting from
a decrease in headcount following restructuring activities.
Our key figures
As of or for the quarter
ended
As of or year-to-date
USD million, except where indicated
30.9.21
30.6.21
31.12.20
30.9.20
30.9.21
30.9.20
Group results
Operating income
9,128
8,976
8,117
8,935
26,810
24,273
Operating expenses
6,264
6,384
6,132
6,357
19,054
18,103
Operating profit / (loss) before tax
2,865
2,593
1,985
2,578
7,755
6,169
Net profit / (loss) attributable to
shareholders
2,279
2,006
1,636
2,093
6,109
4,921
Diluted earnings per share (USD)1
0.63
0.55
0.44
0.56
1.68
1.33
Profitability and growth2
Return on equity (%)
15.3
13.7
11.0
14.4
13.8
11.5
Return on tangible equity (%)
17.2
15.4
12.4
16.2
15.5
12.9
Return on common equity tier 1 capital
(%)
20.8
19.3
16.8
21.9
19.5
17.6
Return on risk-weighted assets, gross
(%)
12.2
12.2
11.4
12.7
12.2
11.8
Return on leverage ratio denominator,
gross (%)3
3.5
3.4
3.2
3.7
3.4
3.5
Cost / income ratio (%)
68.7
71.8
74.9
70.4
71.4
72.7
Effective tax rate (%)
20.1
22.4
17.2
18.8
21.0
20.1
Net profit growth (%)
8.9
62.8
126.7
99.5
24.2
37.4
Resources2
Total assets
1,088,773
1,086,519
1,125,765
1,065,153
1,088,773
1,065,153
Equity attributable to shareholders
60,219
58,765
59,445
59,451
60,219
59,451
Common equity tier 1 capital4
45,022
42,583
39,890
38,197
45,022
38,197
Risk-weighted assets4
302,426
293,277
289,101
283,133
302,426
283,133
Common equity tier 1 capital ratio
(%)4
14.9
14.5
13.8
13.5
14.9
13.5
Going concern capital ratio (%)4
20.0
20.2
19.4
19.2
20.0
19.2
Total loss-absorbing capacity ratio
(%)4
34.0
35.6
35.2
34.5
34.0
34.5
Leverage ratio denominator3,4
1,044,916
1,039,939
1,037,150
994,366
1,044,916
994,366
Common equity tier 1 leverage ratio
(%)3,4
4.31
4.09
3.85
3.84
4.31
3.84
Going concern leverage ratio (%)3,4
5.8
5.7
5.4
5.5
5.8
5.5
Total loss-absorbing capacity leverage
ratio (%)4
9.8
10.0
9.8
9.8
9.8
9.8
Liquidity coverage ratio (%)5
157
156
152
154
157
154
Net stable funding ratio (%)5
118
115
119
117
118
117
Other
Invested assets (USD billion)6
4,432
4,485
4,187
3,807
4,432
3,807
Personnel (full-time equivalents)
71,427
71,304
71,551
71,230
71,427
71,230
Market capitalization1
55,423
53,218
50,013
40,113
55,423
40,113
Total book value per share (USD)1
17.48
16.90
16.74
16.57
17.48
16.57
Total book value per share (CHF)1
16.30
15.64
14.82
15.27
16.30
15.27
Tangible book value per share (USD)1
15.62
15.05
14.91
14.78
15.62
14.78
Tangible book value per share (CHF)1
14.57
13.92
13.21
13.61
14.57
13.61
1 Refer to the “Share information and
earnings per share” section of the UBS Group third quarter 2021
report for more information. 2 Refer to the “Performance targets
and capital guidance” section of our Annual Report 2020 for more
information about our performance targets. 3 Leverage ratio
denominators and leverage ratios for the respective periods in 2020
do not reflect the effects of the temporary exemption that applied
from 25 March 2020 until 1 January 2021 and was granted by FINMA in
connection with COVID-19. Refer to the “Regulatory and legal
developments” section of our Annual Report 2020 for more
information. 4 Based on the Swiss systemically relevant bank
framework as of 1 January 2020. Refer to the “Capital management”
section of the UBS Group third quarter 2021 report for more
information. 5 Prior-period “Net stable funding ratio” is based on
estimated pro forma reporting. Refer to the “Liquidity and funding
management” section of the UBS Group third quarter 2021 report for
more information. 6 Consists of invested assets for Global Wealth
Management, Asset Management and Personal & Corporate Banking.
Refer to “Note 32 Invested assets and net new money” in the
“Consolidated financial statements” section of our Annual Report
2020 for more information.
Income statement
For the quarter ended
% change from
Year-to-date
USD million
30.9.21
30.6.21
30.9.20
2Q21
3Q20
30.9.21
30.9.20
Net interest income
1,693
1,628
1,517
4
12
4,934
4,240
Other net income from financial
instruments measured at fair value through profit or loss
1,697
1,479
1,769
15
(4)
4,485
5,507
Credit loss (expense) / release
14
80
(89)
(83)
121
(628)
Fee and commission income
6,119
6,041
5,211
1
17
18,330
15,418
Fee and commission expense
(510)
(484)
(440)
5
16
(1,472)
(1,316)
Net fee and commission income
5,610
5,557
4,771
1
18
16,858
14,103
Other income
115
233
967
(51)
(88)
412
1,052
Total operating income
9,128
8,976
8,935
2
2
26,810
24,273
Personnel expenses
4,598
4,772
4,631
(4)
(1)
14,170
13,235
General and administrative expenses
1,148
1,103
1,173
4
(2)
3,340
3,369
Depreciation and impairment of property,
equipment and software
511
500
538
2
(5)
1,520
1,452
Amortization and impairment of goodwill
and intangible assets
7
9
15
(22)
(54)
24
47
Total operating expenses
6,264
6,384
6,357
(2)
(1)
19,054
18,103
Operating profit / (loss) before tax
2,865
2,593
2,578
10
11
7,755
6,169
Tax expense / (benefit)
576
581
485
(1)
19
1,629
1,242
Net profit / (loss)
2,289
2,012
2,094
14
9
6,127
4,927
Net profit / (loss) attributable to
non-controlling interests
9
6
0
67
18
6
Net profit / (loss) attributable to
shareholders
2,279
2,006
2,093
14
9
6,109
4,921
Comprehensive income
Total comprehensive income
1,678
2,602
2,180
(35)
(23)
3,941
6,584
Total comprehensive income attributable to
non-controlling interests
(5)
20
7
6
9
Total comprehensive income attributable
to shareholders
1,683
2,582
2,173
(35)
(23)
3,935
6,575
Comparison between UBS Group AG
consolidated and UBS AG consolidated
As of or for the quarter ended
30.9.21
As of or for the quarter ended
30.6.21
As of or for the quarter ended
31.12.20
USD million, except where indicated
UBS Group AG
consolidated
UBS AG consolidated
Difference (absolute)
UBS Group AG consolidated
UBS AG consolidated
Difference (absolute)
UBS Group AG consolidated
UBS AG consolidated
Difference (absolute)
Income statement
Operating income
9,128
9,224
(95)
8,976
9,071
(94)
8,117
8,220
(103)
Operating expenses
6,264
6,512
(248)
6,384
6,589
(206)
6,132
6,324
(192)
Operating profit / (loss) before tax
2,865
2,712
152
2,593
2,481
111
1,985
1,896
89
of which: Global Wealth Management
1,516
1,500
16
1,294
1,273
21
864
855
9
of which: Personal & Corporate
Banking
478
479
(1)
498
496
2
353
353
(1)
of which: Asset Management
214
214
0
255
254
1
401
401
0
of which: Investment Bank
837
833
4
668
655
14
529
528
1
of which: Group Functions
(180)
(314)
134
(124)
(197)
73
(161)
(241)
79
Net profit / (loss)
2,289
2,163
125
2,012
1,919
93
1,645
1,572
73
of which: net profit / (loss) attributable
to shareholders
2,279
2,154
125
2,006
1,913
93
1,636
1,563
73
of which: net profit / (loss) attributable
to non-controlling interests
9
9
0
6
6
0
9
9
0
Statement of comprehensive
income
Other comprehensive income
(610)
(598)
(12)
591
592
(1)
83
54
29
of which: attributable to shareholders
(596)
(584)
(12)
576
578
(1)
65
36
29
of which: attributable to non-controlling
interests
(14)
(14)
0
14
14
0
18
18
0
Total comprehensive income
1,678
1,565
113
2,602
2,510
92
1,728
1,626
102
of which: attributable to shareholders
1,683
1,570
113
2,582
2,491
92
1,701
1,599
102
of which: attributable to non-controlling
interests
(5)
(5)
0
20
20
0
27
27
0
Balance sheet
Total assets
1,088,773
1,088,246
528
1,086,519
1,085,861
658
1,125,765
1,125,327
438
Total liabilities
1,028,221
1,030,828
(2,607)
1,027,469
1,030,216
(2,746)
1,066,000
1,067,254
(1,254)
Total equity
60,552
57,418
3,134
59,050
55,645
3,405
59,765
58,073
1,691
of which: equity attributable to
shareholders
60,219
57,085
3,134
58,765
55,361
3,405
59,445
57,754
1,691
of which: equity attributable to
non-controlling interests
333
333
0
284
284
0
319
319
0
Capital information
Common equity tier 1 capital
45,022
41,356
3,665
42,583
40,190
2,393
39,890
38,181
1,709
Going concern capital
60,369
55,334
5,035
59,188
55,398
3,790
56,178
52,610
3,567
Risk-weighted assets
302,426
299,612
2,814
293,277
290,470
2,807
289,101
286,743
2,358
Common equity tier 1 capital ratio (%)
14.9
13.8
1.1
14.5
13.8
0.7
13.8
13.3
0.5
Going concern capital ratio (%)
20.0
18.5
1.5
20.2
19.1
1.1
19.4
18.3
1.1
Total loss-absorbing capacity ratio
(%)
34.0
32.6
1.4
35.6
34.6
1.0
35.2
34.2
1.0
Leverage ratio denominator1
1,044,916
1,044,438
479
1,039,939
1,039,375
564
1,037,150
1,036,771
379
Common equity tier 1 leverage ratio
(%)1
4.31
3.96
0.35
4.09
3.87
0.23
3.85
3.68
0.16
Going concern leverage ratio (%)1
5.8
5.3
0.5
5.7
5.3
0.4
5.4
5.1
0.3
Total loss-absorbing capacity leverage
ratio (%)
9.8
9.4
0.5
10.0
9.7
0.4
9.8
9.5
0.3
1 Leverage ratio denominators and leverage
ratios for 31 December 2020 do not reflect the effects of the
temporary exemption that applied from 25 March 2020 until 1 January
2021 and was granted by FINMA in connection with COVID-19. Refer to
the “Regulatory and legal developments” section of our Annual
Report 2020 for more information.
Information about results materials and
the earnings call
UBS’s third quarter 2021 report, news release and slide
presentation are available from 06:45 CEST on Tuesday, 26 October
2021, at ubs.com/quarterlyreporting.
UBS will hold a presentation of its third quarter 2021 results
on Tuesday, 26 October 2021. The results will be presented by Ralph
Hamers (Group Chief Executive Officer), Kirt Gardner (Group Chief
Financial Officer), Martin Osinga (Investor Relations), and Marsha
Askins (Head Communications & Branding).
Time
09:00 CEST
08:00 BST
03:00 US EDT
Audio webcast
The presentation for analysts can be
followed live on ubs.com/quarterlyreporting with a simultaneous
slide show.
Webcast playback
An audio playback of the results
presentation will be made available at 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, statements
relating to the anticipated effect of transactions and strategic
initiatives on UBS’s business and future development and goals or
intentions to achieve climate, sustainability and other social
objectives. While these forward-looking statements represent UBS’s
judgments, expectations and objectives 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. The outbreak of COVID-19 and
the measures taken in response to the pandemic have had and may
continue to have a significant adverse effect on global economic
activity, including disruptions to global supply chains, and an
adverse effect on the credit profile of some of our clients and
other market participants, which has resulted in and may continue
to increase credit loss expense and credit impairments. In
addition, we face heightened operational risks due to remote
working arrangements, including risks to supervisory and
surveillance controls, as well as increased fraud and data security
risks. The unprecedented scale of the measures taken to respond to
the pandemic, as well as the uncertainty surrounding vaccine
supply, distribution, and efficacy against mutated virus strains
create significantly greater uncertainty about forward-looking
statements. Factors that may affect our performance and ability to
achieve our plans, outlook and other objectives also include, but
are 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 other financial resources,
including changes in RWA assets and liabilities arising from higher
market volatility; (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 increasing 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; (v) 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); (vi) changes in central bank
policies 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; (vii)
UBS’s ability to successfully implement resolvability and 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, or other external
developments; (viii) 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;
(ix) the uncertainty arising from domestic stresses in certain
major economies; (x) 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; (xi)
changes in the standards of conduct applicable to our businesses
that may result from new regulations or new enforcement of existing
standards, including measures to impose new and enhanced duties
when interacting with customers and in the execution and handling
of customer transactions; (xii) 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; (xiii) 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; (xiv) 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; (xv) 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; (xvi) 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;
(xvii) limitations on the effectiveness of UBS’s internal processes
for risk management, risk control, measurement and modeling, and of
financial models generally; (xviii) the occurrence of operational
failures, such as fraud, misconduct, unauthorized trading,
financial crime, cyberattacks, data leakage and systems failures,
the risk of which is increased while COVID-19 control measures
require large portions of the staff of both UBS and its service
providers to work remotely; (xix) 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; (xx) 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; (xxi) uncertainty over the scope of actions that may be
required by UBS, governments and others to achieve goals relating
to climate, environmental and social matters, as well as the
evolving nature of underlying science and industry and governmental
standards; and (xxii) 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 2020 and UBS’s First Quarter 2021 Report on Form 6K. 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.
Rounding
Numbers presented throughout this news release may not add up
precisely to the totals provided in the tables and text.
Percentages and percent changes disclosed in text and tables are
calculated on the basis of unrounded figures. Absolute changes
between reporting periods disclosed in the text, which can be
derived from numbers presented in related tables, are calculated on
a rounded basis.
Tables
Within tables, blank fields generally indicate non-applicability
or that presentation of any content would not be 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. Values
that are zero on a rounded basis can be either negative or positive
on an actual basis.
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