Ubs Group Ag · SIX:UBSG
Ubs — Debt Investor Presentation (April 2025)
42 slides from Ubs's debt investor presentation, Apr 30, 2025
Slide 1: First quarter 2025 Fixed Income investor presentation
First quarter 2025 Fixed Income investor presentation This document should be read in conjunction with UBS’s first quarter of 2025 report and earnings presentation, as well as the UBS Group Annual Report 2024 30 April 2025
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 Financial performance Group balance sheet Slides 3-8 Slides 9-17 2
Slide 4: Key messages
Key messages Strong 1Q25 financial performance demonstrates the power of our global, diversified model in a complex environment; net profit 1.7bn, underlying profit before tax 2.6bn, underlying RoCET1 11.3% Franchise strength demonstrated by robust client momentum; 6.2trn IA with GWM NNA 32bn and AM
Slide 5: Financial performance
Financial performance 36 UBS
Slide 6: 1Q25 profitability driven by positive operating leverage in core business divisions
1Q25 profitability driven by positive operating leverage in core business divisions Underlying, bn Revenues Operating expenses Profit before tax Underlying 1Q25 0% PBT 2.6bn 12.0 11.9 0% Core: RoCET1 11.3% 9.2 9.2 +6% Core: +3% Cost / (1%) 77.4% income 2.6 2.6 Core: 11.6 +15% Reported 11.0 8.5 8.7 2
Slide 7: 1Q25 demonstrates the strength of our global diversified business model
1Q25 demonstrates the strength of our global diversified business model Profits m ~0.6bn expected Underlying in 2Q251 652 (1%) 292 273 26 2,617 2,586 (215) (397) (10) o/w tax: (430m) 2,132 (1,106) ~1.1bn expected 1,692 in 2Q25 (441) 1Q24 GWM P&C AM IB NCL Group Items 1Q25 Non- Non- 1Q25 Tax 1Q25 PBT
Slide 8: Achieved 65% of gross cost save ambition, on track to ~13bn by year-end 2026
Achieved 65% of gross cost save ambition, on track to ~13bn by year-end 2026 Cumulative annualized exit rate Underlying Cumulative integration- gross cost reductions operating expenses related expenses2 USD bn / % of expected cumulative total USD bn USD bn / % of expected cumulative total (~10%) / (
Slide 9: NCL run-down continuing at pace
NCL run-down continuing at pace Reducing complexity Underlying operating expenses excl. litigation Risk-weighted assets bn bn (60%) ~6.1 86 74% books closed Operational since June 2023 30 Risk Target: >95% by YE26 1Q25 annualized: 1.9bn 2.3 34 48% ~1.8 Credit and 56 <28 IT apps decommissioned market
Slide 10: Group balance sheet
Group balance sheet 36 UBS
Slide 11: Our balance sheet for all seasons is a key pillar of our strategy
Our balance sheet for all seasons is a key pillar of our strategy USD bn, except where indicated USD bn, except where indicated 1Q25 4Q24 1Q24 QoQ YoY 1Q25 4Q24 1Q24 QoQ YoY Total assets 1,543 1,565 1,607 (1%) (4%) Regulatory capital o/w: Cash and balances at central banks 231 223 271 +4% (15%) CET1
Slide 12: Maintaining a strong capital position with CET1 capital ratio at 14.3%
Maintaining a strong capital position with CET1 capital ratio at 14.3% CET1 capital ratio CET1 capital, bn 71.4 1.7 (0.8) (0.5) (2.5) 0.8 n/a (0.9) 69.2 0.3% 0.6% − RWA 483.3bn, (15.3bn) QoQ 14.3% (0.2%) 14.3% (0.1%) (0.2%) − Implementation of final Basel III standards resulted in (8.6bn) impact (0.
Slide 13: Funding overview
Funding overview Group funding bn 786 1,330 1,191 1,201 1Q25, QoQ 1% 1% 1% 100% 1% 100% − +2.1, mainly driven by total comprehensive income 87bn attributable to shareholders of +3.3bn, including net profit of +1.7bn and OCI of +1.6bn, partly offset by shareholder equity net treasury share activity o
Slide 14: Capital markets issuances and redemptions
Capital markets issuances and redemptions Issuances and redemptions1 Upcoming maturities and first calls1,2 Issuances, year-to-date USD bn USD bn As of 30.4.25 1Q25 AT1 HoldCo OpCo 104 USD 3.0bn EUR 2.8bn USD 1.3bn 13 2025 funding plan 35 2 We manage our funding resources prudently and opportunistic
Slide 15: Long-term wholesale funding diversification
Long-term wholesale funding diversification Group funding 1Q25 Total long-term wholesale funding: 162bn Covered Bonds Other 6% <1 year CHF 7% 19% 4% OpCo >5 years 20% 31% By By source By maturity1 EUR 30% currency USD AT1 HoldCo 58% 10% 64% 1-3 years 3-5 years 34% 15% As of quarter-end, does not inc
Slide 16: Liquidity
Liquidity Liquidity coverage ratio1,2 quarterly averages Average high-quality liquid assets, bn − Balance efficiency with resiliency and safety 257 368 416 423 378 361 332 319 − Expect to operate at below 4Q24 level going forward, Net cash outflows3, bn reflecting continued efforts to manage towards
Slide 17: Deposits
Deposits A well diversified deposit base 1Q25 Total deposits: 745bn Other 9% EUR Demand Time 9% 30% P&C deposits USD 38% 39% 40% By By By client type currency segment GWM 62%1 CHF Sweeps Retail savings 41% 5% 26% 1 Includes customer brokerage payables which are presented in separate reporting lines
Slide 18: High-quality loan portfolio, mostly secured by real estate or securities
High-quality loan portfolio, mostly secured by real estate or securities Loans and advances to customers On-balance sheet, 1Q25 Other3 9% Corporates2 Mortgages1: 341bn, ~50% LTV 8% › Swiss mortgages make up the majority of the portfolio Lombard: 153bn › Fully collateralized, with daily monitoring of
Slide 19: Appendix
Appendix 1Q25 financial results Group balance sheet and credit quality 18
Slide 20: Reiterating our financial targets and long-term ambitions
Reiterating our financial targets and long-term ambitions Financial targets Capital guidance Long-term ambitions ~15% ~14% ~18% Underlying RoCET1 CET1 capital RoCET1, 2026 exit rate ratio reported by 2028 <70% >4.0% >5trn Underlying cost / income CET1 leverage GWM invested assets ratio 2026 exit rat
Slide 21: UBS Group results
UBS Group results USD m, except where indicated 1Q25 4Q24 3Q24 2Q24 1Q24 Total revenues 12,557 11,635 12,334 11,904 12,739 Credit loss expense / (release) 100 229 121 95 106 Operating expenses 10,324 10,359 10,283 10,340 10,257 Operating profit / (loss) before tax 2,132 1,047 1,929 1,469 2,376 Tax e
Slide 22: 1Q25 overview of financial performance by business division
1Q25 overview of financial performance by business division USD m, except where indicated UBS Group GWM P&C AM IB NCL Group Items Total revenues as reported 12,557 6,422 2,211 741 3,183 284 (284) of which: PPA effects and other integration items1 574 165 241 138 30 of which: gain related to an inves
Slide 23: Global Wealth Management
Global Wealth Management Underlying USD m, except where indicated 1Q25 4Q24 1Q24 QoQ YoY Underlying 1Q25 vs. 1Q24 Total revenues 6,253 5,942 5,909 +5% +6% PBT 1,545m, +21% Net interest income 1,549 1,657 1,615 (7%) (4%) Total revenues 6,253m, +6% driven by higher recurring Recurring net fee income 3
Slide 24: 1Q25 Global Wealth Management results by region
1Q25 Global Wealth Management results by region Americas APAC EMEA Switzerland 1Q25 1Q24 YoY 1Q25 1Q24 YoY 1Q25 1Q24 YoY 1Q25 1Q24 YoY Underlying revenues, m 3,003 2,727 10% 1,034 948 9% 1,177 1,198 (2%) 1,031 1,033 0% Net interest income, m 513 488 5% 311 325 (4%) 372 421 (12%) 345 391 (12%) Recurr
Slide 25: Personal & Corporate Banking (CHF)
Personal & Corporate Banking (CHF) Underlying CHF m, except where indicated 1Q25 4Q24 1Q24 QoQ YoY Underlying 1Q25 vs. 1Q24 Total revenues 1,705 1,810 1,913 (6%) (11%) PBT 597m, (23%) Net interest income 923 994 1,119 (7%) (18%) Total revenues 1,705m, (11%) on lower NII; NII (7%) QoQ Recurring net f
Slide 26: Asset Management
Asset Management Underlying USD m, except where indicated 1Q25 4Q24 1Q24 QoQ YoY Underlying 1Q25 vs. 1Q24 Total revenues 741 766 776 (4%) PBT 208m, +15% (3%) Net management fees 713 709 745 +1% (4%) Performance fees 30 44 30 (32%) 0% Total revenues 741m, (4%) on lower net management fees Net gain fr
Slide 27: Investment Bank
Investment Bank Underlying USD m, except where indicated 1Q25 4Q24 1Q24 QoQ YoY Underlying 1Q25 vs. 1Q24 Total revenues 3,045 2,547 2,458 +20% +24% PBT 696m with revenues +24% Global Banking 564 675 584 (16%) (4%) Global Banking revenues (4%) Advisory 221 260 189 (15%) +17% − Advisory +17%, driven b
Slide 28: Non-core and Legacy
Non-core and Legacy Underlying Underlying 1Q25 vs. 1Q24 USD m, except where indicated 1Q25 4Q24 1Q24 QoQ YoY PBT (200m) Total revenues 284 (58) 1,001 (72%) Total revenues 284m driven by gains on position exits, Credit loss expense / (release) 7 6 36 partially offset by funding costs Operating expens
Slide 29: Appendix
Appendix 1Q25 financial results Group balance sheet and credit quality 28
Slide 30: Balance sheet
Balance sheet For the quarter-end 1Q25 1,543 1,543 1. Cash and balances at central banks 58 a a. Short-term borrowings2,3 15 and amounts due from banks 1 252 b b. Securities financing transactions 2. Loans and advances to customers at amortized cost 3. Securities financing transactions c. Customer d
Slide 31: Credit loss expense / (release) and credit-impaired exposures
Credit loss expense / (release) and credit-impaired exposures Credit loss expense / (release) ECL coverage ratio for core loan portfolio (stage 3)3 USD m On balance sheet 1Q24 2Q24 3Q24 4Q24 1Q25 GWM (3) (1) 2 (14) 6 26% P&C 44 103 83 175 53 24% IB 32 (6) 9 63 35 22% 22% NCL 36 (1) 28 6 7 Other1 (2)
Slide 32: Maintaining a strong capital position
Maintaining a strong capital position 187.2bn 38.7% 12.0% Gone concern: 99.3bn Gone concern: 20.6% Gone concern: 6.4% Total loss-absorbing capacity: 25.6% Total loss-absorbing capacity: 8.75% Going concern: 87.8bn Going concern: 18.2% Going concern: 5.6% o/w CET1 Going concern: 14.9% Going concern:
Slide 33: RWA and LRD QoQ walk
RWA and LRD QoQ walk Risk weighted assets bn (3%) 498.5 0.0 5.9 483.3 (9.3) (0.8) (2.3) (8.6) • o/w: market risk +6.5bn; credit and counterparty credit risk (6.1bn); operational risk (9.0bn) 4Q24 Credit and Non-counterparty- Market risk1 Operational risk1 Final Basel III Currency effects 1Q25 counte
Slide 34: Synthetic Risk Transfers (SRT)
Synthetic Risk Transfers (SRT) UBS’s strategy and risk management with respect to securitization activities − Synthetic securitization exposures in the banking book are aimed at − Such transactions usually comprise first loss protection provided by a third reducing or limiting risk and commensuratel
Slide 35: YTD 2025 issuances and redemptions
YTD 2025 issuances and redemptions Issuances ISIN Instrument Currency Notional (bn) Coupon Rate Issuance Date Call/Maturity US90261AAD46 OpCo USD 1.250 4.864% 10.01.25 10.01.27 US225401BH08 AT1 USD 1.500 7.000% 10.02.25 10.02.30 US225401BJ63 AT1 USD 1.500 7.125% 10.02.25 10.08.34 CH1414003454 HoldCo
Slide 36: UBS Group AG capital requirements and eligibility criteria
UBS Group AG capital requirements and eligibility criteria Group consolidated requirements Grandfathering rules Going concern RWA LRD Gone concern RWA LRD Any going concern-eligible capital above the minimum Minimum capital 4.50% 1.50% Minimum gone-concern2 10.73% 3.75% requirement can be o/w additi
Slide 37: UBS Liquidity & Funding (Risk Management) Framework
UBS Liquidity & Funding (Risk Management) Framework Liquidity coverage ratio Net stable funding ratio Group Treasury • Proposes the liquidity and funding (L&F) strategy • Maintains the UBS L&F risk management framework, 100% 100% together with the 2nd line of defence, including the BCBS REQUIREMENT
Slide 38: Credit ratings peer comparison
Credit ratings peer comparison Long-term senior unsecured debt – operating company, as of 29.4.25 MOODY’S S&P FITCH Baa2 Baa1 A3 A2 A1 Aa3 Aa2 Aa1 BBB- BBB BBB+ A- A A+ AA- AA BBB- BBB BBB+ A- A A+ AA- AA UBS Barclays BNP BoA Citi DB GS HSBC JPM MS SocGen [No arrow] Review for downgrade Outlook nega
Slide 39: Credit ratings peer comparison
Credit ratings peer comparison Long-term senior unsecured debt – holding company, as of 29.4.25 MOODY’S S&P FITCH Ba1 Baa3 Baa2 Baa1 A3 A2 A1 Aa3 BB+ BBB- BBB BBB+ A- A A+ AA- BB+ BBB- BBB BBB+ A- A A+ AA- UBS Barclays BNP1 BoA Citi DB1 GS HSBC JPM MS SocGen1 [No arrow] Review for downgrade Outlook
Slide 40: Ratings on main UBS entities
Ratings on main UBS entities MOODY’S S&P FITCH UBS Group AG Long-term A3/Developing A-/Stable A/Stable Long-term Aa2/Negative A+/Stable A+/ Stable UBS AG Short-term P-1 A-1 F1 Long-term A+/Stable A+/ Stable UBS Switzerland AG Short-term A-1 F1 Long-term Aa3/Negative A+/Stable A+/ Stable UBS Europe S
Slide 41: Legal structure of the UBS Group
Legal structure of the UBS Group 1 Other non-US subsidiaries are held either directly or indirectly by UBS AG; 2 Of which 98% held by UBS AG and 2% held by UBS Group AG; 3 Of which 99% directly held by UBS Americas Inc. and 1% 40 held by UBS Americas Holding LLC; 4 Other US subsidiaries are typicall
Slide 42: 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