Ubs Group Ag · SIX:UBSG
Ubs — Q3 2022 Earnings Presentation
32 slides from Ubs's earnings presentation, Oct 25, 2022
Slide 1: Third quarter 2022 Financial results
Third quarter 2022 Financial results 25 October 2022
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 Ralph Hamers, Group CEO Sarah Youngwood, Group CFO 2
Slide 4: 3Q22 net profit USD 1.7bn
3Q22 net profit USD 1.7bn 15.5% RoCET1 We have strong momentum with our clients, in 71.8% cost/income ratio challenging markets 14.4% CET1 capital ratio We delivered a good performance and are executing our strategy We maintain a strong balance sheet and disciplined risk management 3
Slide 5: Continuing commercial momentum by staying close to our clients
Continuing commercial momentum by staying close to our clients Invested assets Invested assets Deposits Loans Global Markets revenues GWM AM GWM + P&C GWM + P&C IB 3.2trn 1.2trn 523bn 501bn 380bn 366bn1 1.7bn 1.7bn 2.7trn 1.0trn o/w: FGA 1.4trn 1.2trn 3Q21 3Q22 3Q21 3Q22 3Q21 3Q22 3Q21 3Q22 3Q21 3Q2
Slide 6: We are executing our strategy across the regions
We are executing our strategy across the regions Americas Switzerland EMEA APAC PBT 0.6bn; C/I 83% PBT 0.7bn; C/I 60% PBT 0.7bn; C/I 61% PBT 0.5bn; C/I 66% − GWM C/I <80% − 0.4bn NNIP, P&C PB1 − Completed sales of Spain WM − #1 in ECM for non-domestic − GWM NII +38% YoY − +8 ppts YTD in mobile banki
Slide 7: RoCET1 and cost/income ratio on track to meet full-year targets
RoCET1 and cost/income ratio on track to meet full-year targets Key figures Targets / RoCET1 Target: 15-18% 3Q22 9M22 guidance 21.9% 20.8% Group PBT 2,323m 7,667m 16.3% Net profit 1,733m 5,977m 18.8% 12.1% 15.4% 15.5% Diluted EPS 0.52 1.74 LTM1 11.3% RoCET1 15.5% 17.8% 15-18% Cost/income 71.8% 71.0%
Slide 8: We maintain a strong balance sheet and disciplined risk management
We maintain a strong balance sheet and disciplined risk management 3Q22 Strong capital and liquidity position 7bn 14.4% 4.51% capital generation, LTM1 CET1 capital ratio CET1 leverage ratio Balance sheet for all seasons 163% 95% <55% of loans average LTV on collateralized Liquidity coverage ratio Di
Slide 9: Financial performance
1 Key messages 2 Financial performance 3 Q&A Financial performance Sarah Youngwood, Group CFO 8
Slide 10: 3Q22 net profit USD 1.7bn; 15.5% RoCET1
3Q22 net profit USD 1.7bn; 15.5% RoCET1 Net profit 3Q22 m (24%) 2,279 2.3bn 15.5% PBT (19%), YoY RoCET1 (6%) 348 1,733 Underlying: (22%)1 Underlying: 14.8%1 (5) (879) (11) 71.8% 13.9% (10%) C/I ratio RoTE Underlying: 72.7%1 Underlying: 13.2%1 o/w FX: (318m) o/w FX: +267m Capital 14.4% 4.51% CET1 cap
Slide 11: 3Q22 total revenues USD 8.2bn
3Q22 total revenues USD 8.2bn Total revenues m (10%) 9,115 (7%) underlying1 excl. FX 223 (491) (20) (174) 46 8,236 (463) 3Q21 Asset-based Transaction- NII, Global Global Other 3Q22 fees2 based fees GWM+P&C Markets Banking 1 Excluding items not representative of underlying performance; refer to slide
Slide 12: Net interest income
Net interest income Net interest income GWM + P&C, bn +13% 1.0 3Q22 (0.1) 0.0 5.3 (0.3) − NII up 223m, +14% YoY 4.7 − Mostly driven by 41% incremental revenues in USD partly offset by a reduction in CHF 9M22 − NII up 627m Our expectations for 4Q22 − Expecting ~200m incremental NII in 4Q22 vs. 3Q22 −
Slide 13: Executing our cost strategy
Executing our cost strategy Operating expenses bn 3Q22 (1%) 19.1 − Operating expenses (6%) +1% 0.4 18.8 − (1%) excluding litigation and FX with inflationary 0.2 pressure on salaries, T&E, technology and consulting costs offset by variable compensation (0.6) (0.3) +3% YoY 9M22 − 9M22 costs excl. liti
Slide 14: Global Wealth Management
Global Wealth Management Total revenues, m USDm, except where indicated 3Q22 2Q22 3Q21 QoQ YoY PBT 1,453m (4%) or (10%) excluding gains on sales in 3Q22 and 3Q21 and FX1 (4%) Total revenues 4,786 4,677 4,992 +2% (4%) 4,992 4,786 Total revenues (4%) as higher NII was more Net interest income 1,366 1,
Slide 15: Asset Management
Asset Management Total revenues, m USDm, except where indicated 3Q22 2Q22 3Q21 QoQ YoY PBT 140m (13%) Total revenues 516 1,372 593 (62%) (13%) 593 516 Net management fees 502 515 560 (2%) (10%) Total revenues (13%) driven by negative Performance fees 14 9 33 +46% (59%) market performance and FX impa
Slide 16: Investment Bank
Investment Bank Total revenues, m USDm, except where indicated 3Q22 2Q22 3Q21 QoQ YoY PBT 447m; RoAE 14% (19%) Total revenues 2,032 2,094 2,514 (3%) (19%) Global Markets revenues (1%) 2,514 Global Banking 329 377 792 (13%) (58%) ₋ Execution Services (15%) mainly driven by lower 2,032 Cash Equities p
Slide 17: Personal & Corporate Banking (CHF)
Personal & Corporate Banking (CHF) Total revenues, m CHFm, except where indicated 3Q22 2Q22 3Q21 QoQ YoY PBT 430m, (2%) YoY as higher revenues and credit 0% loss releases were more than offset by higher Total revenues 1,000 1,018 995 (2%) 0% operating expenses 995 1,000 Net interest income 489 502 4
Slide 18: Common equity tier 1 capital
Common equity tier 1 capital CET1 capital ratio 0.6% 14.4% CET1 capital ratio 3Q22 (0.3%) Guidance: ~13% 0.0% 14.4% 0.0% (0.1%) 4.51% 0.0% 14.2% CET1 leverage ratio 3Q22 Guidance: >3.7% 4.3bn share buybacks 9M22 Guidance: ~5.5bn in FY22 2Q22 Net profit1 Share repurchase Dividend Other RWA, Currency
Slide 19: 3Q22 net profit USD 1.7bn
3Q22 net profit USD 1.7bn 15.5% RoCET1 We have strong momentum with our clients, in 71.8% cost/income ratio challenging markets 14.4% CET1 capital ratio We delivered a good performance and are executing our strategy We maintain a strong balance sheet and disciplined risk management 18
Slide 20: Appendix
Appendix 19
Slide 21: Creating sustainable value through the cycle
Creating sustainable value through the cycle ESG Commercial Financial Selected aspirations Selected aspirations Targets Net-Zero >6trn 15–18% own operations (scope 1, 2) by 2025 invested assets across GWM, AM, P&C return on CET1 capital 235bn >5% growth2 70–73% invested assets aligned to net zero by
Slide 22: Leveling up technology to drive digitalization and differentiation for our clients
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 23: Group results
Group results USDm, except where indicated 3Q21 4Q21 1Q22 2Q22 3Q22 Total revenues 9,115 8,705 9,382 8,917 8,236 Credit loss expenses / (releases) (14) (27) 18 7 (3) Total operating expenses 6,264 7,003 6,634 6,295 5,916 Operating profit / (loss) before tax 2,865 1,729 2,729 2,615 2,323 Tax expense
Slide 24: Underlying results
Underlying results USDm, except where indicated 3Q21 4Q21 1Q22 2Q22 3Q22 Operating profit / (loss) before tax 2,865 1,729 2,729 2,615 2,323 o/w: Gain on sales and real estate 100 802 2191 o/w: Accounting asymmetries (56) (106) (138) (214) (153)2 o/w: Litigation settlement in Non-core and Legacy 622
Slide 25: 3Q22 Group results by region
3Q22 Group results by region Americas Switzerland EMEA Asia Pacific (13%) 3.9 Total revenues 3.4 bn (8%) +2% (13%) 2.0 1.8 1.8 1.8 1.6 1.4 3Q21 3Q22 3Q21 3Q22 3Q21 3Q22 3Q21 3Q22 Profit before tax bn 0.6 0.7 0.7 0.5 Operating expenses bn 2.8 1.1 1.1 0.9 Cost/income ratio 83% 60% 61% 66% Excludes (0.
Slide 26: 3Q22 Global Wealth Management results by region
3Q22 Global Wealth Management results by region Americas Switzerland EMEA Asia Pacific (4%) +11% 559 537 499 447 Profit before tax (19%) m (20%) 293 222 237 179 3Q21 3Q22 3Q21 3Q22 3Q21 3Q22 3Q21 3Q22 3Q22 Cost/income 80% 57% 53% 62% ratio Invested assets 1,523 226 492 412 bn Net new fee- generating
Slide 27: Invested asset split
Invested asset split Global Wealth Management Asset Management 3Q22 3Q22 2,655bn 2,655bn 979bn 979bn Real Estate & 10% Others 10% 9% 9 Other Private Markets 5 Other1 18% 7% CHF Hedge Fund 5% 6% GBP 6 Alternatives 6% 8% EUR Multi Assets & 15% 15 Solutions 24% CHF Cash 12% 24 Fixed Income - MM 10% MM
Slide 28: Capital and leverage ratios
Capital and leverage ratios Total loss-absorbing capacity (TLAC) 105bn 33.7% 10.58% 18bn buffer 27bn buffer 45bn Gone concern 14.6% 4.59% TLAC: 8.75% loss-absorbing TLAC: 24.9% capacity Going concern capital 59bn 19.1% 6.00% 10bn 15bn AT1 4.7% 14bn 1.48% CET1 45bn 14.4% 4.51% Going concern: 5.00% ca
Slide 29: Common equity tier 1 capital
Common equity tier 1 capital CET1 capital bn (1.0) 2.0 (0.4) (0.6) 44.8 44.7 0.0 2Q22 Net profit1 Share repurchase Dividend Currency Other 3Q22 program accrual effects 1 Excluding deferred tax assets on losses carried forward 28
Slide 30: Risk-weighted assets
Risk-weighted assets Risk-weighted assets bn 0.3 2.7 (2.9) 315.7 0.0 (5.1) • +1.8bn from model updates / changes • (3.7bn) mainly driven by asset size and • +0.9bn from asset size and other other movements, in Global Markets. 310.6 movements, of which: +3.9bn GWM, (2.2bn) • +0.6bn in regulatory add-
Slide 31: Reimagining the power of investing. Connecting people for a better world.
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 32: Cautionary statement regarding forward-looking statements
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 rela