Slide 1: First quarter 2017 results
First quarter 2017 results April 28, 2017
Slide 2: 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 and statements relating to the anticipated effect of transactions and strate
Slide 3: 1Q17 net profit up 79% to 1.3bn
1Q17 net profit up 79% to 1.3bn Strong profits Strong returns Strong capital Net profit 1,269m, diluted EPS 0.33 12.6% adjusted RoTE CET1 capital ratio 14.1%; LR 3.55%2 PBT 1,690m, adjusted PBT 1,934m 17.4% adjusted RoTE excl. DTA1 Total loss-absorbing capacity 74bn Pre-tax profit up YoY in all busi
Slide 4: Global WM – Superior, sustainable profit growth
Global WM Global WM – Superior, sustainable profit growth 8%2 Profit before tax1 LTM3, bn 2.8 3.8 Strong profit growth 6%2 Invested assets1 End of period, CHF trn 1.7 2.2 CHF 2.2 trillion invested assets; 32% mandates 7%2 Recurring revenues1 9.5 12.3 High quality revenues; 80% recurring LTM3, bn 84
Slide 5: The only truly global wealth manager
Global WM The only truly global wealth manager UBS is the only bank with leading positions across all regions Global1 Asia Pacific2 United States3 A B C D E C F G A B H I Europe4,5 Switzerland4 Emerging markets4,6 J C K L K C G J C J G E 1 Scorpio Global Private Banking Benchmark Report 2016, by inv
Slide 6: Global WM unique and diversified footprint
Global WM Global WM unique and diversified footprint Americas1 Asia Pacific Switzerland Europe Emerging markets 6,969 advisors 1,025 advisors 747 advisors 1,298 advisors 672 advisors 17% 7% 152 Invested 53% 371 assets 9% 31.3.17, 1,155 186 bn 14% 311 Profit contribution 34% 19% 17% 15% 14% LTM2 38 3
Slide 7: Global UHNW – Fueling growth
Global WM Global UHNW – Fueling growth The largest global UHNW business1 in the fastest-growing wealth segment UBS UHNW asset growth outpacing market Strong revenue, profit and operating leverage Invested assets, bn2 bn2 37% UHNW 45% UHNW Revenue growth Profit growth 11% CAGR 4.8 989 UHNW 12% CAGR 6
Slide 8: APAC – Fueling growth
Global WM APAC – Fueling growth The largest wealth manager in the fastest-growing region Largest wealth manager Strong asset growth Highly profitable 2016 league table1, USD bn Invested assets, bn PBT, m 10% CAGR 21% CAGR 311 739 286 218 214 164 350 108 79% 82 81 UHNW Peer 1-5 ranked by AuM 31.3.13
Slide 9: Strong, profitable IB key to Global WM success
Strong, profitable IB key to Global WM success Strength in equities, FX and advisory is a competitive advantage for Global WM World-class in areas critical to #1 #1 #2 #3 #4 Global WM Family APAC Global Global Global clients offices1 Equities2 Research3 FX4 Equities2 46% 34% 34% 23% 24% Delivering 1
Slide 10: UBS Global Wealth Management
Global WM UBS Global Wealth Management Unique global footprint Successful in the world's largest and fastest-growing regions Dominant in ultra-high net worth Strong and profitable IB key to Global WM success 9
Slide 11: UBS Group AG results (consolidated)
UBS Group AG results (consolidated) CHF m, except where indicated 1Q16 2Q16 3Q16 4Q16 1Q17 Total operating income 6,833 7,404 7,029 7,055 7,532 Total operating expenses 5,855 5,915 6,152 6,308 5,842 Profit before tax as reported 978 1,489 877 746 1,690 of which: net restructuring expenses (265) (377
Slide 12: Global WM performance
Global WM Global WM performance Profit before tax up 19%, improved efficiency and strong asset growth Demonstrating operating leverage m1 Revenues +5% 50 1,050 40 (36) 113 Costs +1% 880 1Q16 PBT Transaction- Net interest Recurring net Costs 1Q17 PBT based income income fee income Better net margin a
Slide 13: Personal & Corporate Banking
Personal & Corporate Banking Profit before tax up 4% despite significant pressure on net interest income Profit 463 473 437 422 395 before Best NNBV growth1 since 2007 at 6.7% tax m Net interest income down, partly as a result of 963 983 974 941 958 increased TLAC costs and the revised equity at
Slide 14: Personal & Corporate Banking
Personal & Corporate Banking Further potential for growth from our award-winning digital services Increasing digital penetration Driving business growth Active e-banking 46% 48% Income per client2 43% clients1 Clients logging in during 1.2x last month as a % of Higher client satisfaction and loyalty
Slide 15: Asset Management
Asset Management Profit before tax up 12%, net new money excluding money markets 20bn 148 156 138 Profit 110 123 PBT up 12% driven by 9% decrease in costs before tax m 483 481 499 Operating 468 450 23 24 44 31 income 26 m Net management fees included a 14m impairment on 446 458 437 468 423 a co-
Slide 16: Investment Bank
Investment Bank Profit before tax up 51%, driven by CCS revenues and prior-year cost actions Return on 23.2% 24.4% attributed 19.2% 18.0% 18.1% 26% increase in attributed equity as a result of the equity bps1 new equity attribution framework 558 27m net increase in funding costs following TLAC P
Slide 17: Corporate Center
Corporate Center Profit before tax 1Q16 2Q16 3Q16 4Q16 1Q17 (267) (234) (417) (654) (764) Corporate Center total (m) Corporate Center results by unit (m) Services Operating income (55) (42) (66) (59) (18) Operating expenses 156 170 148 216 189 o/w before allocations 2,022 1,890 1,830 2,028 1,983 o/w
Slide 18: Cost reduction
Cost reduction Achieved 1.7bn net cost reductions Cost base and net cost reductions bn 0.9bn1 0.8bn1 (1.1bn based on Dec-15 exit rate) 16.3 15.6 15.4 ~0.5 ~0.6 ~0.6 8.6 ~0.2 7.8 ~0.5 FY13 FY15 FY15 FY16 Mar-17 annualized exit rate CC in scope CC and BDs in scope Cost base for net cost reduction prog
Slide 19: Higher funding cost allocations to business divisions
Higher funding cost allocations to business divisions More TLAC debt and increased allocations impact business division NII Pro-forma business division TLAC capital and leverage ratios 1Q17 RWA-based TLAC ratio1 LRD-based TLAC ratio1 40% 33% 33% 30% Strong attributed total capital 19% 16% position
Slide 20: Capital and leverage ratios (fully applied)
Capital and leverage ratios (fully applied) Ahead of glide path to meet 2020 leverage ratio requirements Loss-absorbing capacity Capital ratio1 Leverage ratio bn %, bn %, bn Total loss- 1.1.20 1.1.20 absorbing 73.7 33.2% Capital ratio Leverage ratio capacity (TLAC) requirements requirements 69.2 31.
Slide 21: Appendix
Appendix &%% UBS
Slide 22: Global WM
Global WM Global WM Profit before tax up 19% to CHF 1.1bn, net margin improved Profit 1,001 1,050 880 881 871 before PBT up 19%, demonstrating operating leverage across tax our global franchise m Operating 3,774 3,696 3,747 3,848 3,980 689 875 Operating income up 5% YoY with all revenue lines up i
Slide 23: Wealth Management
Wealth Management Profit before tax up 14%, net margin improved on higher client activity, cost discipline 727 636 606 643 Profit 5731 before PBT up 14% on higher client activity and cost discipline tax 511 m Operating 1,885 1,817 1,809 1,782 1,929 income 402 347 334 314 479 Increased client act
Slide 24: Wealth Management Americas
Wealth Management Americas Record first quarter profit before tax, up 32% with increases in all revenue lines Profit 367 358 324 281 before 245 PBT up 32% on higher revenues and improved efficiency tax m Operating 1,924 1,988 2,049 2,053 1,899 372 372 396 income 361 369 Industry-leading annualiz
Slide 25: Regional performance
Regional performance CHF bn Americas Asia Pacific EMEA Switzerland Global Total 1Q16 1Q17 1Q16 1Q17 1Q16 1Q17 1Q16 1Q17 1Q16 1Q17 1Q16 1Q17 WM 0.1 0.1 0.5 0.6 0.9 0.9 0.4 0.4 0.0 (0.0) 1.9 1.9 WMA 1.9 2.1 - - - - - - - - 1.9 2.1 P&C - - - - - - 1.0 1.0 - - 1.0 1.0 Operating AM 0.1 0.1 0.1 0.1 0.1 0.
Slide 26: Adjusted results
Adjusted results Adjusting items FY16 1Q16 2Q16 3Q16 4Q16 1Q17 CHF m Operating income as reported (Group) 28,320 6,833 7,404 7,029 7,055 7,532 of which: WM 21 21 WMA 10 10 Gains on sale of financial assets available for sale P&C 102 102 IB 78 78 Gains/(losses) on sales of subsidiaries and businesses
Slide 27: Swiss SRB leverage ratio requirements
Swiss SRB leverage ratio requirements UBS leverage ratio balance1 Requirements Meeting 1.1.20 requirements TLAC-eligible debt • 2.82% (CHF 24.9bn) existing UBS Group AG TLAC bonds2 2.0% • CHF 21.4bn long-term debt not counted in total loss absorbing capacity6 which we may replace upon maturity with
Slide 28: Performance targets, expectations and ambitions
Performance targets, expectations and ambitions Ranges for sustainable performance over the cycle Net new money growth rate 3-5% Wealth Management Adjusted cost/income ratio 55-65% Expectation: 10-15% annual adjusted pre-tax profit growth for combined businesses over Wealth Management Net new money
Slide 29: Important information related to this presentation
Important information related to this presentation Use of adjusted numbers Unless otherwise indicated, “adjusted” figures exclude the adjustment items listed on slide 25, to the extent applicable, on a Group and business division level. Adjusted results are a non-GAAP financial measure as defined by