TIDM0R3T
UBS: (NYSE:UBS) (SWX:UBSN):
UBS's 4Q21 results materials are available at
ubs.com/investors
The audio webcast of the earnings call starts at 09:00 CET, 1
February 2022
Group highlights
-- We are executing relentlessly for our clients Our clients continued to
put their trust in us, as was evident from the ongoing momentum in flows
and volume growth throughout the year. Together with favorable market
conditions and investor sentiment, this led to growth across the firm.
During 2021, GWM saw USD 107bn of net new fee-generating assets with
inflows in all regions, and there was USD 28bn in net new lending across
GWM and P&C Personal Banking, while strong client activity drove YoY
increases of 7% in transaction-based income in GWM and 33% in Global
Banking income.
-- We are driving growth while maintaining risk and cost discipline Focusing
on growth Our global ecosystem delivers the power of investing to our
clients, with UBS as the orchestrator of the value flow through
contributors and clients. Our ecosystem has grown to USD 4.6trn of
invested assets as we supported our clients, drove positive operating
leverage and this resulted in another year of strong performance. Our
clients' needs are at the center of our strategy and we are focusing on
serving them in more effective ways, underpinned by technology. Expanding
into new client segments We are expanding into new client segments,
building new capabilities, broadening our footprint, and adding
technology-enabled solutions to open new avenues of growth. We will
leverage digital to expand our reach starting in the US, where we've
announced our plans to acquire Wealthfront to deliver a digital wealth
management offering to millennial and Gen Z affluent investors. Together,
we can expand our wallet share, access new clients, lower the cost to
serve, and drive long-term growth. Looking ahead, we are planning similar
models in the rest of the world. Accelerating strategic tech investments
We are accelerating our strategic tech investments, making technology a
differentiator by levelling up technology. The aim is to maintain our
tech expenses at 10% of revenues while increasing IT strategic
investments. Maintaining risk and cost discipline Across the firm, we
will maintain our risk and cost discipline to support our growth plans.
By streamlining our set-up, optimizing our footprint and exiting certain
markets, simplifying and working in an agile way, we aim to deliver USD
1bn gross in-year cost saves by 2023, which will fund our growth
initiatives. We are on track to deliver these cost saves, with USD 0.2bn
already achieved in 2021. We continue to have an elevated focus on risk
management, with continual enhancement of day-to-day efforts.
-- We are committed to driving higher returns by unlocking the power of UBS
Full-year 2021 PBT was USD 9,484m (up 16% YoY), including net credit loss
releases of USD 148m, compared with net credit loss expenses of USD 694m
in 2020. The cost/income ratio was 73.6%, an increase of 0.4 percentage
points YoY. Operating income increased by 10% YoY, with operating
expenses up by 8%, partly as a result of an increase in litigation
provisions of USD 740m (EUR 650m) taken for the French cross-border
matter. Excluding this litigation provision, operating expenses would
have increased by 4% and PBT would have increased by 25%. Net profit
attributable to shareholders was USD 7,457m (up 14% YoY), with diluted
earnings per share of USD 2.06. Return on CET1 capital 1 was 17.5%. The
quarter-end CET1 capital ratio was 15.0% (guidance: 13%) and the CET1
leverage ratio was 4.24% (guidance: >3.7%), both up YoY. We intend to
propose a 2021 ordinary dividend of USD 0.50 per share 2,3. We
repurchased USD 2.6bn of shares in 2021, and we intend to repurchase up
to USD 5bn of shares during 2022.
Targets and aspirations
We are aiming to create sustainable value through the cycle.
Reflecting our improved operating performance over the last two
years, we have updated our financial targets, while our capital
guidance remains unchanged. In addition, we have outlined selected
commercial and ESG aspirations, which support these targets.
ESG Commercial Financial
Selected aspirations Selected aspirations Targets
Net-Zero USD >6trn 15--18%
invested assets return on CET1
own operations across capital
(scope 1, 2) by 2025 GWM, AM, P&C
70--73%
cost/income ratio
USD 235bn invested >5% growth(**)
assets
aligned to net-zero in GWM net new 10--15%(**)
by 2030, AM fee-generating assets GWM PBT growth
USD 1bn philanthropy donations
to reach 25 million beneficiaries
raised by 2025
USD 400bn invested assets
in sustainability-focus and impact(*) by 2025
* Sustainability focus and Impact investing; sustainability focus is
strategies where sustainability is an explicit part of the investment
guidelines, universe, selection, and/or investment process; Impact investing
is strategies that have an explicit intention to generate measurable,
verifiable, positive sustainability outcomes. Impact generated is attributable
to investor action and/or contribution; ** Over the cycle
Ralph Hamers, UBS's Group CEO
"In 2021, clients continued to put their trust in us and turned
to us for our content, for our advice and for our solutions. We now
manage USD 4.6 trillion in assets and during 2021, assets invested
in sustainability-focus and impact strategies across the firm
increased 78%.
We're adapting our coverage models to deliver more digital and
scalable advice as well as bespoke solutions. We're expanding our
core banking capabilities while continuing to focus on alternatives
and sustainable investments. And we're accelerating our technology
investments while maintaining strong cost discipline.
Our objective is to provide more choice on how clients can
interact with our ecosystem and which of its capabilities they can
make use of. Our recent acquisition of Wealthfront, a
state-of-the-art, digital-only platform in the US tailored to the
next generation of affluent investors, is but one example of how we
are already taking steps to meet clients' diverse and changing
needs.
UBS is in better shape than ever. For the second year in a row,
we achieved our targets, remained disciplined in our costs and saw
strong contributions from all regions and divisions. This is just
the start of what we're capable of. To make the most of the
momentum we've built, our updated targets focus on where we see the
biggest opportunities.
Our new aspirations, targets and goals will position us to live
up to our purpose, better serve clients, deploy technology in
differentiated and impactful ways, and open our ecosystem for new
and existing clients."
Financial performance -- selected highlights
Previous
Group 4Q21 FY21 targets/guidance
Return on CET1
capital 11.9% 17.5% Target: 12--15%
Return on tangible
equity 10.0% 14.1%
Cost/income ratio 80.5% 73.6% Target: 75--78%
Net profit
attributable to
shareholders USD 1.3bn USD 7.5bn
CET1 capital ratio 15.0% 15.0% Guidance: 13%
CET1 leverage ratio 4.24% 4.24% Guidance: >3.7%
Tangible book
value per
share USD 15.97 USD 15.97
Global Wealth
Management
Profit before
tax USD 0.6bn USD 4.8bn
Target: 10--15%
PBT growth -35% YoY 19% YoY over the cycle
USD USD
Invested assets 3.3trn 3.3trn
Net new
fee-generating
assets USD 27bn USD 107bn
Personal &
Corporate
Banking
Profit before
tax CHF 0.3bn CHF 1.6bn
Return on
attributed equity
(CHF) 16% 19%
Net new loans,
Personal
Banking CHF 0.1bn CHF 2.2bn
Asset
Management
Profit before
tax USD 0.3bn USD 1.0bn
USD USD
Invested assets 1.2trn 1.2trn
Net new money
excl. money
markets USD 16bn USD 48bn
Investment Bank
Profit before
tax USD 0.7bn USD 2.6bn
Return on
attributed equity 22% 20%
RWA and LRD vs. Guidance: up to
Group 31% / 30% 31% / 30% 1/3
Fourth quarter 2021 performance overview
Group PBT USD 1,729m, (13%) YoY
PBT was USD 1,729m (down 13% YoY), including net credit loss
releases of USD 27m. The cost/income ratio was 80.5%, an increase
of 5.5 percentage points YoY. Operating income increased by 8% YoY,
while operating expenses increased by 14%, largely as a result of
an increase in litigation provisions of USD 740m (EUR 650m) taken
for the French cross-border matter. Excluding this litigation
provision, operating expenses would have increased by 2% and PBT
would have increased by 24%. Net profit attributable to
shareholders was USD 1,348m (down 18% YoY), with diluted earnings
per share of USD 0.38. Return on CET1 capital(1) was 11.9%.
Global Wealth Management (GWM) PBT USD 563m, (35%) YoY
GWM PBT of USD 563m included litigation provisions of USD 657m
for the French cross-border matter. Excluding this, GWM would have
delivered double-digit PBT growth in all regions. Operating income
increased by 13% YoY. Recurring net fee income increased by 17%,
primarily driven by higher average fee-generating assets,
reflecting positive market performance and net new fee-generating
assets. Net interest income increased by 10%, as a result of higher
loan and deposit revenues, reflecting increases in volumes.
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 2m, compared with net credit loss releases
of USD 7m in 4Q20. The cost/income ratio was 88.4%, up 8.4
percentage points YoY, as income increased by 13% and operating
expenses increased by 25% driven by higher litigation provisions
and financial advisor variable compensation. Loans increased
sequentially to USD 234bn, with USD 4bn of net new loans, driven by
the Americas. Invested assets increased by 3% sequentially to USD
3,303bn. Fee-generating assets(4) were up 5% sequentially to USD
1,482bn. Net new fee-generating assets(4) were USD 26.9bn,
supported by inflows in all regions, and representing an annualized
growth rate of 8% in the quarter.
Personal & Corporate Banking (P&C) PBT CHF 335m, +5%
YoY
Operating income increased by 11% with increases across net
interest, transaction-based and recurring net fee income. Net
interest income was up 9% mainly driven by proactive deposit
management. Revenue from credit card and foreign exchange
transactions was the main driver of the 18% improvement in
transaction-based income, reflecting a continued increase in travel
and leisure spending by clients as pandemic restrictions ease.
Recurring net fee income increased by 16%, primarily driven by
higher investment fund, custody and mandate fees, mainly resulting
from an increase in average custody assets, reflecting net new
investment product inflows and positive market performance. Net
credit loss releases were CHF 9m, compared with net credit loss
releases of CHF 20m in 4Q20. The cost/income ratio was 67.0%, 1.0
percentage point higher YoY, as income increased by 13% and
operating expenses increased by 14%, mainly reflecting higher
litigation provisions, which included CHF 76m (USD 83m) for the
French cross-border matter.
Asset Management (AM) PBT USD 334m, (17%) YoY
Operating income decreased by 7% YoY, as an increase in net
management fees was more than offset by a decrease in performance
fees to a more normalized level from particularly high levels in
4Q20. The cost/income ratio was 53.6%, a 5.5 percentage point
increase YoY, with income down 7% YoY and 4% higher operating
expenses. Invested assets increased by 5% sequentially to USD
1,211bn. Net new money was USD 15.1bn (USD 16.2bn excluding money
market flows).
Investment Bank (IB) PBT USD 713m, +35% YoY
Operating income increased by 11% YoY. Global Markets revenues
increased by 6% or USD 90m, primarily driven by higher revenues in
foreign exchange, capital market financing, prime brokerage and
cash equities products. Global Banking revenues increased by 4%, or
USD 27m, driven by Capital Markets, notably in Leveraged Capital
Markets, and Advisory revenues. Net credit loss releases were USD
16m, compared with net credit loss expenses of USD 91m in 4Q20. The
cost/income ratio was 68.6%, a 1.9 percentage point improvement
YoY, as income increased by 6% and operating expenses increased by
3%. Annualized return on attributed equity was 21.5%.
Group Functions PBT USD (246)m, compared with USD (161)m in
4Q20
Full-year 2021 performance overview
Group PBT USD 9,484m, +16% YoY
Full-year 2021 PBT was USD 9,484m (up 16% YoY), including net
credit loss releases of USD 148m, compared with net credit loss
expenses of USD 694m in 2020. The cost/income ratio was 73.6%, an
increase of 0.4 percentage points YoY. Operating income increased
by 10% YoY, with operating expenses up by 8%, partly as a result of
an increase in litigation provisions of USD 740m (EUR 650m) taken
for the French cross-border matter. Excluding this litigation
provision, operating expenses would have increased by 4% and PBT
would have increased by 25%. Net profit attributable to
shareholders was USD 7,457m (up 14% YoY), with diluted earnings per
share of USD 2.06. Return on CET1 capital(1) was 17.5%.
Global Wealth Management (GWM) PBT USD 4,783m, +19% YoY
GWM PBT of USD 4,783m included litigation provisions of USD 657m
for the French cross-border matter in 4Q21. Excluding this, GWM
would have delivered double-digit PBT growth in all regions.
Operating income increased by 14% YoY. Recurring net fee income
increased by 19%, primarily driven by higher average fee-generating
assets, reflecting positive market performance and net new
fee-generating assets. Transaction-based income rose 7%, mainly
driven by high levels of client activity in the Americas, EMEA and
Switzerland. Net interest income increased by 5%, on higher loan
revenues from higher volumes and margins, partly offset by lower
deposit revenues. Net credit loss releases were USD 29m, compared
with net credit loss expenses of USD 88m in 2020. The cost/income
ratio improved to 75.5%, down 0.5 percentage points YoY, as income
increased by 13% and operating expenses increased by 13% driven by
financial advisor variable compensation and litigation provisions.
Loans increased to USD 234bn, with USD 25bn of net new loans,
mainly driven by the Americas. Invested assets increased by 10% to
USD 3,303bn. Fee-generating assets(4) were up 16% to USD 1,482bn.
Net new fee-generating assets(4) were USD 106.9bn, supported by
inflows in all regions, and represented a growth rate of 8%.
Personal & Corporate Banking (P&C) PBT CHF 1,587m, +35%
YoY
Operating income increased by 17% with increases across all
income lines, with a benefit from net credit loss releases of CHF
79m compared with net credit loss expenses of CHF 243m in 2020.
Recurring net fee income increased by 15%, primarily reflecting
higher custody, mandate and investment fund fees. Revenue from
credit card and foreign exchange transactions was the main driver
of the 10% improvement in transaction-based income, reflecting a
continued increase in travel and leisure spending by clients as
pandemic restrictions ease. Net interest income was up 1% mainly
driven by proactive deposit management. The cost/income ratio was
61.4%, 0.2 percentage points higher YoY, as income increased by 7%
and operating expenses increased by 7%, mainly reflecting higher
litigation provisions, which included CHF 76m (USD 83m) for the
French cross-border matter, increased investments in technology,
and higher variable compensation.
Asset Management (AM) PBT USD 1,030m, (29%) YoY
AM PBT of USD 1,030m decreased 29% YoY, including gains from the
sale of Fondcenter AG (now Clearstream Fund Centre AG) in 3Q20 (USD
571m) and 2Q21 (USD 37m), without which, PBT would have increased
by 12%. Excluding these gains, operating income would have been up
7% YoY, as an increase in net management fees more than offset a
decrease in performance fees to a more normalized level. The
cost/income ratio was 61.5%, a 1.7 percentage point improvement YoY
when excluding the aforementioned gains, with income up 7% YoY and
4% higher operating expenses. Invested assets increased by 11% to
USD 1,211bn. Net new money was USD 44.9bn (USD 48.0bn excluding
money market flows).
Investment Bank (IB) PBT USD 2,630m, +6% YoY
Operating income increased by 3% YoY, or 5% excluding a USD 215m
gain from the sale of intellectual property rights associated with
the Bloomberg Commodity Index family in 3Q20. In 1H21, the IB
incurred a USD 861m loss related to a default by a US-based client
of our prime brokerage business. Global Banking revenues increased
by 33%, or USD 780m, driven by Capital Market and Advisory
revenues. Global Markets revenue decreased by 12% or USD 845m,
driven by the aforementioned loss. Excluding this loss and the gain
from sale in 2020, Global Markets would have increased by 3%,
driven by higher revenues from equity derivatives, prime brokerage
and cash equities products in a constructive market environment.
Net credit loss releases were USD 34m, compared with net credit
loss expenses of USD 305m in 2020. The cost/income ratio was 72.5%,
1.8 percentage points higher YoY, as income decreased by 1% and
operating expenses increased by 2%. Return on attributed equity was
20.3%.
Group Functions PBT USD (689)m, compared with USD (1,060)m in
2020
Extending UBS's leadership in sustainable finance
UBS is committed to creating long-term positive value for its
clients, employees, investors and society and the firm made
substantial progress on this commitment in 2021. This is
illustrated by the recognition UBS has received throughout the year
for its commitment to improving performance under ESG criteria and
for its efforts in offering clients sustainable finance products
and services.
Recognized leader in sustainability
In 2021, UBS was again named as a member of the Dow Jones
Sustainability Index, published by S&P Global. This is regarded
as the world's leading sustainability rating, selecting the top 10
per cent of companies each year that score highest in three
dimensions: Governance & Economic, Environmental, and Social.
UBS is proud to be recognized once again for its industry
leadership in the Environmental dimension.
The firm has also again been included in the CDP 'A list' for
its actions to cut emissions, mitigate climate risks and develop
the low-carbon economy. CDP is an international not-for-profit
organization that provides a global system for companies and cities
to measure, disclose and manage climate change-related information.
In addition, MSCI ESG Research maintained UBS's 'AA' rating,
confirming it as a leader in the industry.
Strengthening the focus on sustainable finance
Sustainable finance has long been a firm-wide priority, and UBS
is continuing to support clients in their transition to a
low-carbon future. For example, as a founding signatory of the
Net-Zero Asset Managers Initiative, UBS in November 2021 announced
its commitment to align USD 235bn of its assets under management to
net-zero by 2030. This is one of the largest absolute commitments
of any member firm.
According to the latest UBS Investor Sentiment Survey,
sustainable investing is more important than ever to investors,
with over three quarters of them expecting sustainable investing
returns to match or exceed traditional investing returns. Overall,
sustainability-focus and impact investments at UBS increased
significantly to USD 251bn, compared with USD 141bn a year ago.
Also, the USD 11bn segment of the UBS Strategy Funds offering,
which is an important core solution in the Global Wealth Management
and Personal Banking business, has been repositioned to incorporate
sustainability throughout the entire investment process.
As a founding member of the Swiss Better Gold Association, UBS
supports the sustainable development of artisanal and small-scale
mining communities. The slight price premium of 1 USD per gram for
the new sustainably produced gold offering launched by UBS in
December 2021 is re-invested directly to improve labor standards as
well as social and environmental conditions in the local
communities at the mine sites.
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) Shareholders whose shares are held through SIX (ISIN CH0244767585) will
receive dividends in Swiss francs, based on a published exchange rate
calculated to five decimal places immediately before the ex-dividend date.
Shareholders holding shares through DTC (ISIN: CH0244767585; CUSIP: H42097107)
will be paid dividends in US dollars.
(3) Subject to approval by shareholders at the Annual General Meeting
scheduled for 6 April 2022, the dividend will be paid on 14 April 2022 to
shareholders of record as of 13 April 2022. The ex-dividend date will be 12
April 2022. In accordance with Swiss tax law, 50% of the dividend will be paid
out of retained earnings and the balance will be paid out of capital
contribution reserves. Dividends paid out of capital contribution reserves are
not subject to Swiss withholding tax. The portion of the dividend paid out of
retained earnings will be subject to a 35% Swiss withholding tax. For US
federal income tax purposes, we expect that the dividend will be paid out of
current or accumulated earnings and profits.
(4) 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.
Performance of our business divisions and Group Functions(1)
For the quarter ended 31.12.21
Personal
Global &
Wealth Corporate Asset Investment Group
USD million Management Banking Management Bank Functions Total
Operating
income 4,824 1,086 721 2,235 (134) 8,732
Operating
expenses 4,261 721 387 1,522 113 7,003
of which: net
restructuring
expenses(2) 23 4 4 27 2 60
Operating
profit /
(loss) before
tax 563 365 334 713 (246) 1,729
For the quarter ended 31.12.20
Personal
Global &
Wealth Corporate Asset Investment Group
USD million Management Banking Management Bank Functions Total
Operating
income 4,277 992 774 2,011 63 8,117
of which:
valuation
gain on
auction rate
securities(3) 134 134
Operating
expenses 3,412 640 372 1,482 225 6,132
of which:
impairment of
internally
generated
software(4) 67 67
Operating
profit /
(loss) before
tax 864 353 401 529 (161) 1,985
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 14 million for the fourth
quarter of 2021 (third quarter of 2021: USD 8 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. 3
Reflects a valuation gain recognized in the fourth quarter of 2020 as a result
of a recovery in underlying market conditions, following a change in valuation
methodology. 4 Relates to impairment of internally generated software resulting
from a decision in the fourth quarter of 2020 to not proceed with an internal
business transfer from UBS Switzerland AG to UBS AG.
As of or for the
Our key figures As of or for the quarter ended year ended
USD million, except
where indicated 31.12.21 30.9.21 31.12.20 31.12.21 31.12.20
Group results
Operating income 8,732 9,128 8,117 35,542 32,390
Operating expenses 7,003 6,264 6,132 26,058 24,235
Operating profit / (loss)
before tax 1,729 2,865 1,985 9,484 8,155
Net profit / (loss)
attributable to
shareholders 1,348 2,279 1,636 7,457 6,557
Diluted earnings per
share (USD)(1) 0.38 0.63 0.44 2.06 1.77
Profitability and
growth(2)
Return on equity (%) 8.9 15.3 11.0 12.6 11.3
Return on tangible equity
(%) 10.0 17.2 12.4 14.1 12.8
Return on common equity
tier 1 capital (%) 11.9 20.8 16.8 17.5 17.4
Return on risk-weighted
assets, gross (%) 11.5 12.2 11.4 12.0 11.7
Return on leverage ratio
denominator, gross
(%)(3) 3.3 3.5 3.2 3.4 3.4
Cost / income ratio (%) 80.5 68.7 74.9 73.6 73.3
Effective tax rate (%) 21.4 20.1 17.2 21.1 19.4
Net profit growth (%) (17.6) 8.9 126.7 13.7 52.3
Resources(2)
Total assets 1,117,182 1,088,773 1,125,765 1,117,182 1,125,765
Equity attributable to
shareholders 60,662 60,219 59,445 60,662 59,445
Common equity tier 1
capital(4) 45,281 45,022 39,890 45,281 39,890
Risk-weighted assets(4) 302,209 302,426 289,101 302,209 289,101
Common equity tier 1
capital ratio (%)(4) 15.0 14.9 13.8 15.0 13.8
Going concern capital
ratio (%)(4) 20.0 20.0 19.4 20.0 19.4
Total loss-absorbing
capacity ratio (%)(4) 34.7 34.0 35.2 34.7 35.2
Leverage ratio
denominator(3,4) 1,068,862 1,044,916 1,037,150 1,068,862 1,037,150
Common equity tier 1
leverage ratio (%)(3,4) 4.24 4.31 3.85 4.24 3.85
Going concern leverage
ratio (%)(3,4) 5.7 5.8 5.4 5.7 5.4
Total loss-absorbing
capacity leverage ratio
(%)(4) 9.8 9.8 9.8 9.8 9.8
Liquidity coverage ratio
(%)(5) 155 157 152 155 152
Net stable funding ratio
(%)(5) 119 118 119 119 119
Other
Invested assets (USD
billion)(6) 4,596 4,432 4,187 4,596 4,187
Personnel (full-time
equivalents) 71,385 71,427 71,551 71,385 71,551
Market capitalization(1) 61,230 55,423 50,013 61,230 50,013
Total book value per
share (USD)(1) 17.84 17.48 16.74 17.84 16.74
Total book value per
share (CHF)(1) 16.27 16.30 14.82 16.27 14.82
Tangible book value per
share (USD)(1) 15.97 15.62 14.91 15.97 14.91
Tangible book value per
share (CHF)(1) 14.56 14.57 13.21 14.56 13.21
1 Refer to the "Share information and earnings per share" section of the UBS
Group fourth 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 fourth
quarter 2021 report for more information. 5 Prior to 30 September 2021 "Net
stable funding ratio" is based on estimated pro forma reporting. Refer to the
"Liquidity and funding management" section of the UBS Group fourth 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
% change
For the quarter ended from For the year ended
USD million 31.12.21 30.9.21 31.12.20 3Q21 4Q20 31.12.21 31.12.20
Net interest
income 1,770 1,693 1,622 5 9 6,705 5,862
Other net income
from financial
instruments
measured at fair
value through
profit or loss 1,365 1,697 1,453 (20) (6) 5,850 6,960
Credit loss
(expense) /
release 27 14 (66) 100 148 (694)
Fee and
commission
income 6,042 6,119 5,543 (1) 9 24,372 20,961
Fee and
commission
expense (513) (510) (459) 1 12 (1,985) (1,775)
Net fee and
commission
income 5,529 5,610 5,084 (1) 9 22,387 19,186
Other income 40 115 24 (65) 64 452 1,076
Total operating
income 8,732 9,128 8,117 (4) 8 35,542 32,390
Personnel
expenses 4,216 4,598 3,989 (8) 6 18,387 17,224
General and
administrative
expenses 2,212 1,148 1,515 93 46 5,553 4,885
Depreciation,
amortization and
impairment of
non-financial
assets 574 518 627 11 (8) 2,118 2,126
Total operating
expenses 7,003 6,264 6,132 12 14 26,058 24,235
Operating profit
/ (loss) before
tax 1,729 2,865 1,985 (40) (13) 9,484 8,155
Tax expense /
(benefit) 370 576 341 (36) 9 1,998 1,583
Net profit /
(loss) 1,359 2,289 1,645 (41) (17) 7,486 6,572
Net profit /
(loss)
attributable to
non-controlling
interests 11 9 9 18 26 29 15
Net profit /
(loss)
attributable to
shareholders 1,348 2,279 1,636 (41) (18) 7,457 6,557
Comprehensive
income
Total
comprehensive
income 1,178 1,678 1,728 (30) (32) 5,119 8,312
Total
comprehensive
income
attributable to
non-controlling
interests 7 (5) 27 (73) 13 36
Total
comprehensive
income
attributable to
shareholders 1,171 1,683 1,701 (30) (31) 5,106 8,276
Comparison between UBS Group AG consolidated and UBS AG
consolidated
As of or for the quarter ended
As of or for the quarter ended 31.12.21 As of or for the quarter ended 30.9.21 31.12.20
USD million,
except where UBS Group AG UBS AG Difference UBS Group AG UBS AG Difference UBS Group AG UBS AG Difference
indicated consolidated consolidated (absolute) consolidated consolidated (absolute) consolidated consolidated (absolute)
Income statement
Operating income 8,732 8,846 (114) 9,128 9,224 (95) 8,117 8,220 (103)
Operating
expenses 7,003 7,227 (224) 6,264 6,512 (248) 6,132 6,324 (192)
Operating profit
/ (loss) before
tax 1,729 1,619 109 2,865 2,712 152 1,985 1,896 89
of which: Global
Wealth
Management 563 541 22 1,516 1,500 16 864 855 9
of which:
Personal &
Corporate
Banking 365 362 3 478 479 (1) 353 353 (1)
of which: Asset
Management 334 328 6 214 214 0 401 401 0
of which:
Investment
Bank 713 710 3 837 833 4 529 528 1
of which: Group
Functions (246) (321) 75 (180) (314) 134 (161) (241) 79
Net profit /
(loss) 1,359 1,266 93 2,289 2,163 125 1,645 1,572 73
of which: net
profit / (loss)
attributable to
shareholders 1,348 1,255 93 2,279 2,154 125 1,636 1,563 73
of which: net
profit / (loss)
attributable to
non-controlling
interests 11 11 0 9 9 0 9 9 0
Statement of
comprehensive
income
Other
comprehensive
income (181) (197) 16 (610) (598) (12) 83 54 29
of which:
attributable to
shareholders (177) (194) 16 (596) (584) (12) 65 36 29
of which:
attributable to
non-controlling
interests (4) (4) 0 (14) (14) 0 18 18 0
Total
comprehensive
income 1,178 1,069 109 1,678 1,565 113 1,728 1,626 102
of which:
attributable to
shareholders 1,171 1,062 109 1,683 1,570 113 1,701 1,599 102
of which:
attributable to
non-controlling
interests 7 7 0 (5) (5) 0 27 27 0
Balance sheet
Total assets 1,117,182 1,116,145 1,037 1,088,773 1,088,246 528 1,125,765 1,125,327 438
Total
liabilities 1,056,180 1,057,702 (1,522) 1,028,221 1,030,828 (2,607) 1,066,000 1,067,254 (1,254)
Total equity 61,002 58,442 2,559 60,552 57,418 3,134 59,765 58,073 1,691
of which: equity
attributable to
shareholders 60,662 58,102 2,559 60,219 57,085 3,134 59,445 57,754 1,691
of which: equity
attributable to
non-controlling
interests 340 340 0 333 333 0 319 319 0
Capital
information
Common equity
tier 1 capital 45,281 41,594 3,687 45,022 41,356 3,665 39,890 38,181 1,709
Going concern
capital 60,488 55,434 5,054 60,369 55,334 5,035 56,178 52,610 3,567
Risk-weighted
assets 302,209 299,005 3,204 302,426 299,612 2,814 289,101 286,743 2,358
Common equity
tier 1 capital
ratio (%) 15.0 13.9 1.1 14.9 13.8 1.1 13.8 13.3 0.5
Going concern
capital ratio
(%) 20.0 18.5 1.5 20.0 18.5 1.5 19.4 18.3 1.1
Total
loss-absorbing
capacity ratio
(%) 34.7 33.3 1.3 34.0 32.6 1.4 35.2 34.2 1.0
Leverage ratio
denominator 1,068,862 1,067,679 1,183 1,044,916 1,044,438 479 1,037,150 1,036,771 379
Common equity
tier 1 leverage
ratio (%) 4.24 3.90 0.34 4.31 3.96 0.35 3.85 3.68 0.16
Going concern
leverage ratio
(%) 5.7 5.2 0.5 5.8 5.3 0.5 5.4 5.1 0.3
Total
loss-absorbing
capacity
leverage ratio
(%) 9.8 9.3 0.5 9.8 9.4 0.5 9.8 9.5 0.3
Information about results materials and the earnings call
UBS's fourth quarter 2021 report, news release and slide
presentation are available from 06:45 CET on Tuesday, 1 February
2022, at ubs.com/quarterlyreporting.
UBS will hold a presentation of its fourth quarter 2021 results
on Tuesday, 1 February 2022. The results will be presented by Ralph
Hamers (Group Chief Executive Officer), Kirt Gardner (Group Chief
Financial Officer), Sarah Mackey (Head of Investor Relations), and
Marsha Askins (Head Communications & Branding).
Time
09:00 CET
08:00 GMT
03:00 US EST
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 COVID-19 pandemic 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.
UBS Group AG and UBS AG
Investor contact
Switzerland: +41 44 234 41 00
Americas: +1 212 882 57 34
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
ubs.com
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CONTACT:
UBS AG
SOURCE: UBS AG
Copyright Business Wire 2022
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