Ubs Group Ag · SIX:UBSG
Ubs — Q3 2021 Earnings Presentation
30 slides from Ubs's earnings presentation, Oct 26, 2021
Slide 1: Third quarter 2021 results
Third quarter 2021 results 26 October 2021
Slide 2: Important information
Important information Forward Looking Statements: This presentation 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 initiat
Slide 3: Agenda
Agenda 1 2 3 Key messages Financial performance Q&A and capital Ralph Hamers Kirt Gardner Group CEO Group CFO 2
Slide 4: Key messages: We are executing relentlessly
Key messages We are executing We are delivering on We are committed to relentlessly our strategic initiatives driving higher returns for our clients to drive growth and efficiency by unlocking the power of UBS 80bn 32bn 22bn >3x 2.3bn 20.8% GWM AM NNM NNM from assets invested Net profit RoCET1 NNFGA
Slide 5: We are executing relentlessly for our clients
We are executing relentlessly for our clients GWM GWM GWM AM IB P&C Fee-generating assets Loans Transaction-based Invested assets Global Banking Investment products, income income Personal Banking, CHF 1.4trn 231bn 3.0bn 1.2trn 2.5bn 23bn 201bn 2.8bn 1.2trn 1.0trn 19bn 1.7bn 30.9.20 30.9.21 30.9.20
Slide 6: Delivering on the core elements of the ecosystem for investing
Delivering on the core elements of the ecosystem for investing Private markets SMAs2 Sustainable finance My Way Scalability Invested assets1, GWM+AM Invested assets, AM S&I3 invested assets, Invested assets, GWM NNFGA per advisor, GWM GWM+AM+P&C 140bn 116bn 207bn 5.1bn 8.4m 122bn 89bn 141bn 1.5bn 2.
Slide 7: Financial results overview
Financial results overview 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% Group Net profit attributable to shareholders USD 2.3bn USD 6.1bn CET1 capital ratio 14.9% 14.9% Guidance: ~13% CET1 leverage ra
Slide 8: Purpose, client promise, vision and strategic imperatives
Purpose Reimagining the power of investing. Connecting people for a better world. Client promise Vision Strategic imperatives Personalized Convene THE global ecosystem for Clients, Connections, Contributors Relevant investing where thought leadership On-time is impactful, people and ideas are Focus
Slide 9: We are the #1 bank in Switzerland
We are the #1 bank in Switzerland PBT, 9M213 Recognized leader in a highly attractive market Universal banking profile, serving all market segments 55% +75% 27% P&C mobile banking fewer logins4 branches 9M21 vs. 9M19 since 31.12.19 Best Bank Leading Digital Bank in Switzerland1 in Switzerland2 2.5bn
Slide 10: P&C – Strategic priorities
P&C – Strategic priorities Growing above Digital Driving the market at the core transformation Achieve superior growth by shifting gears in Bring the bank to the app with improved user Increase speed, become leaner, reduce focus areas such as pension and retirement, experience and expand the UBS eco
Slide 11: Americas – We have built a franchise that delivers substantial profit growth
Americas – We have built a franchise that delivers substantial profit growth Delivering leading capabilities to wealth and institutional clients in the world’s largest financial market +9% +42bn IA CAGR NNFGA North America’s Top-5 GWM, 1Q17-3Q21 GWM, 9M21 Best Bank for WM1 SMA manager 2.1bn PBT, 9M2
Slide 12: Americas – Strategic priorities
Americas – Strategic priorities Build on Core Scalable our scale banking advice Continue to expand the UBS ecosystem Expand capabilities to drive market share in Deliver a digitally scalable for our clients core banking advice model to affluent clients 2025 vision Build on our momentum to sustain Ex
Slide 13: Leveling up technology to drive digitalization and differentiation
Leveling up technology to drive digitalization and differentiation for our clients Agile@UBS Digital culture QBR and digital Data intelligence Modern tech roadmaps and automation Uniform agile model to Build high-performing Regular change the bank Leverage data and AI Drive healthy modular increase
Slide 14: Executing our strategy to deliver attractive returns and improve efficiency
Executing our strategy to deliver attractive returns and improve efficiency RoCET1 19.5% 17.6% RoTE 15.5% 12.9% 72.7% C/I 71.4% Net profit Profit before tax m m CAGR: +17% CAGR: +18% 7,755 6,109 6,169 4,921 9M16 9M17 9M18 9M19 9M20 9M21 9M16 9M17 9M18 9M19 9M20 9M21 13
Slide 15: 3Q21 net profit USD 2.3bn; 20.8% RoCET1
3Q21 net profit USD 2.3bn; 20.8% RoCET1 Profit before tax m 3Q21 +11% 102 93 2,865 2,279m 0.63 91 net profit diluted EPS 2,578 +9% +12% Operating income +2% Operating expenses (1%) 20.8% 2.8bn return on CET1 capital CET1 capital accretion2 30.9.21 3Q20 Income Credit loss expense Operating expenses 3
Slide 16: Executing our cost strategy
Executing our cost strategy Operating expenses bn 19.1 18.1 0.1 0.4 0.0 0.5 9M20 Costs excluding Variable and FA Litigation and FX 9M21 variable and FA compensation1 restructuring2 compensation, litigation, restructuring and FX Cost / income ratio3 72.7% (1.3ppts) 71.4% 1 3Q20 includes 359m from the
Slide 17: Global Wealth Management
Global Wealth Management +43% 1,409 1,516 1,294 PBT 1,516m, +43% highest on record with Profit before tax 1,057 864 m double-digit growth in all regions Operating income +17% on record recurring fee +17% income and including 100m gain from the sale of our domestic business in Austria 4,848 4,774 5,0
Slide 18: Global Wealth Management
Global Wealth Management Recurring net fee income Net interest income Transaction-based income m m m Loans / bn +23% 201 213 219 228 231 2,872 Deposits / bn 2,774 2,629 321 348 337 344 352 2,468 2,341 +15% +4% 1,107 1,183 962 1,011 997 1,026 953 863 894 776 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q
Slide 19: Global Wealth Management
Global Wealth Management Fee-generating assets1 bn +19bn NNFGA , 5% annualized growth in 3Q21 1 +21% 1,416 1,412 1,328 Americas EMEA APAC Switzerland 1,277 119 113 112 +12bn +6bn (2bn) +3bn 1,163 103 APAC 93 329 326 311 306 EMEA 277 123 123 111 112 Switzerland 102 +98bn NNFGA , 8% growth last 12 mon
Slide 20: Personal & Corporate Banking (CHF)
Personal & Corporate Banking (CHF) +44% 456 439 PBT 439m, +44% reflecting strong business 358 momentum Profit before tax 305 318 m Operating income +18% with record recurring net fee income and higher net interest and +18% transaction-based income 1,037 1,002 850 950 896 Operating Transaction-based
Slide 21: Asset Management
Asset Management (71%) 739 +27% excluding Fondcenter gain PBT 214m, +27% excluding 571m gain from the Profit before tax 401 m 227 255 sale of Fondcenter1 in 3Q20; 10th consecutive 214 quarter of YoY PBT growth 169 218 Gain from the sale of Fondcenter1 Operating income flat excluding last year’s gain
Slide 22: Investment Bank
Investment Bank +32% 837 RoAE 26%; PBT 837m, +32%, best PBT since 1Q13 632 668 Profit before tax 529 m 412 Global Markets revenues +5% excluding 215m gain1 in 3Q20 ₋ Execution Services 444m, +6% driven by higher volumes in APAC and EMEA cash equities +1% ₋ Derivatives & Solutions 780m, (3%) excludin
Slide 23: Capital and leverage ratios
Capital and leverage ratios Total loss-absorbing capacity (TLAC) 103bn 34.0% 9.84% 11bn buffer 27bn TLAC: 8.77% buffer 42bn Gone concern 14.0% 4.06% loss-absorbing capacity TLAC: 25.1% Going concern capital 60bn 20.0% 5.78% 8bn 15bn AT1 5.1% 17bn 1.47% Going concern: 5.00% CET1 capital 45bn 14.9% 4.
Slide 24: Appendix
Appendix 36 UBS
Slide 25: Group results
Group results USDm unless otherwise indicated 3Q20 4Q20 1Q21 2Q21 3Q21 Total operating income 8,935 8,117 8,705 8,976 9,128 of which: credit loss (expenses) / releases (89) (66) 28 80 14 Total operating expenses1 6,357 6,132 6,407 6,384 6,264 Operating profit / (loss) before tax 2,578 1,985 2,298 2,
Slide 26: IFRS 9 credit loss (expenses) / releases
IFRS 9 credit loss (expenses) / releases Credit loss (expenses) / releases m 3Q21 Stage 1 & 2 Stage 3 Total Stage 1 & 2: 11m net credit loss releases Global Wealth Management 9 2 11 Management overlay given continued Personal & Corporate Banking (1) 8 7 macroeconomic uncertainty: 219m, +36m QoQ Asse
Slide 27: 3Q21 Group results by region
3Q21 Group results by region Americas Switzerland EMEA Asia Pacific +32% 47% 1.0bn 0.9bn 20% Profit before tax 0.8bn 77% 0.6bn 0.6bn 0.6bn 0.5bn 0.3bn 3Q20 3Q21 3Q20 3Q21 3Q20 3Q21 3Q20 3Q21 Operating income 3.9bn +14% 2.0bn +14% 1.8bn +10% 1.6bn +1% Operating expenses 2.9bn +9% 1.1bn (3%) 1.2bn (7%
Slide 28: 3Q21 Global Wealth Management results by region
3Q21 Global Wealth Management results by region Americas Switzerland EMEA Asia Pacific +51% +74% 559m 447m +12% Profit before tax 371m +34% 293m 257m 261m 222m 167m 3Q20 3Q21 3Q20 3Q21 3Q20 3Q21 3Q20 3Q21 Cost / income ratio 79.8% (4.3ppts) 54.6% (7.4ppts) 58.1% (13.1ppts) 58.5% (4.7ppts) Invested a
Slide 29: Common equity tier 1 capital
Common equity tier 1 capital CET1 capital bn (0.4) 45.0 (0.2) 0.2 2.9 42.6 30.6.21 Profit Current Foreign currency Other1 30.9.21 before tax tax expense translation effects 1 Includes (0.3bn) from accruals for 2021 dividend, +0.2bn from higher eligible DTAs on temporary differences and other items a
Slide 30: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation 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