UBS Group AG · SIX:UBSG
UBS — Morgan Stanley Financials Conference (March 2013)
19 slides from UBS's conference presentation, Mar 19, 2013
Slide 1: Morgan Stanley Financials Conference
Morgan Stanley Financials Conference Tom Naratil Group Chief Financial Officer March 19, 2013
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation contains statements that constitute "forward-looking statements", including statements relating to UBS's financial performance and to the anticipated effect of strategic initiatives on UBS's business and future development.
Slide 3: UBS—A unique value proposition
UBS—A unique value proposition UBS’s compelling business mix, financial and capital strength and its capacity for returns is unique amongst global banks Attractive model centered on businesses with high risk-adjusted returns An unrivaled franchise with compelling growth prospects Industry-leading ca
Slide 4: UBS—Leading positions across all business divisions
UBS—Leading positions across all business divisions An unrivaled franchise with compelling growth prospects Wealth management businesses Retail & Corporate • World’s leading HNW and UHNW franchise • “Best bank in Switzerland”2 • Unrivaled scope, reach and client mix • The leading universal bank in S
Slide 5: The transformation of UBS—Key focus areas
The transformation of UBS—Key focus areas Our track record and a positive response from our stakeholders… Industry-leading capital ratios are a key pillar supporting our long-term success • Basel III phase-in CET1 ratio of ~15.3%1, up 460 bps in 2012 • Basel III fully applied CET1 ratio of ~9.8%1, u
Slide 6: Significant contribution from businesses with high risk-adjusted returns
Significant contribution from businesses with high risk-adjusted returns ~80% of pre-tax profits expected from high-return businesses Expected pre-tax profit mix Returns on attributed equity (RoAE) 2015 and beyond Pro forma Projected Pro forma 1 2 4Q12 AE 2015 AE 2012 RoAE (CHF billion) (CHF billion
Slide 7: Business mix versus other global banks
Business mix versus other global banks ~60% of our pre-tax profits expected from wealth and asset management businesses… Expected Estimated 2012 pre-tax profit mix1 pre-tax profit mix 2015 and beyond 100% 80% 60% 40% 20% 0% UBS A B C D E F G H I Wealth and asset management businesses Retail and corp
Slide 8: UBS—Leading the way on Basel III
UBS—Leading the way on Basel III Targeting a 13% fully-applied CET1 ratio in 2014, higher than the expected target ratios for other global banks Basel III common equity tier 1 ratio ~ phase-in fully applied ~15.3% 13.0% ~13.6% 11.5% ~13.1% ~11.8% Expected range of targets by ~10.7% other global bank
Slide 9: Our balance sheet, funding and liquidity positions are strong
Our balance sheet, funding and liquidity positions are strong Our balance sheet structure has many characteristics of a AA-rated bank Funding by product1 Due to banks Strong and significantly Short-term debt issued reduced balance sheet – Funded balance sheet down ~62% 51% from its peak in 2007 Re
Slide 10: CDS spreads (5 year, senior)
CDS spreads (5 year, senior) UBS’s credit spreads have significantly tightened since announcing our 4Q12 results and debt buyback program 140 25% 127 121 20% 120 116 107 15% 101 102 100 92 10% 84 84 (basis points) 5% 80 72 0% 60 (5%) 40 (10%) (15%) 20 (20%) 0 (25%) A UBS B C D E F G H I CDS spreads
Slide 11: Positioned to benefit from rising interest rates
Positioned to benefit from rising interest rates We are deliberately not extending duration of interest-earning assets Net interest income (NII) sensitivity of banking book1 The forward curve implies moderate rate increases (CHF billion) 300 Impact from no changes in rates: Parallel 200 bps rise
Slide 12: Upside from an increase in client risk appetite
Upside from an increase in client risk appetite % of cash in client portfolios1 Upside from an increase in client risk ~30% ~31% ~30% ~29% appetite: WM: >4 bps of gross margin ~12% ~12% ~11% ~13% WMA: >2 bps of gross margin Strongly geared towards a more positive capital markets cycle in the
Slide 13: Significant upside from an increase in invested assets
Significant upside from an increase in invested assets Our wealth management businesses are outpacing industry growth rates Invested Gross 2012 growth rate Expected assets margin industry Invested assets by region 31.12.12 2012 total (CHF billion) (bps) NNM Market Total growth2 Wealth Management Ame
Slide 14: Managing for growth and sustainable performance
Managing for growth and sustainable performance Disciplined growth Organic growth Investing in relationships with clients Pricing Revenue initiatives Cross-divisional client focus Paying for “alpha” Cost discipline Multi-year focus on cost reduction 13
Slide 15: UBS—A unique value proposition
UBS—A unique value proposition Positioned to benefit from market factors UBS and demographics of client base UBS today 2015 and beyond1 Invested Assets Risk appetite Attractive business Interest rates Return on Equity model of at least 15% Leading positions Managing for growth and sustainable perfor
Slide 16: Appendix
Appendix 3 UBS
Slide 17: Business division targets
Business division targets1 Ranges of sustainable performance in our businesses Wealth Wealth Management Retail & Management Americas Corporate NNM growth rate 3-5% NNM growth rate 2-4% NNBV growth2 1-4% Gross margin 95-105 bps Gross margin 75-85 bps Net interest margin 140-180 bps Cost / income rati
Slide 18: Investment Bank—2012 indicative pro-forma results under new structure
Investment Bank—2012 indicative pro-forma results under new structure1 From 1Q13, Non-core and Treasury results will be reported in Corporate Center 2012 CHF 8.6 billion 0.4 Treasury IBD 1.6 1.0 Non-core 1Q12 2Q12 3Q12 4Q12 CHF 2.9bn CHF 1.7bn CHF 2.3bn CHF 1.7bn Adjusted operating FICC 4.4 0.6 7.2
Slide 19: Important information related to numbers shown in this presentation
Important information related to numbers shown in this presentation Use of adjusted numbers Throughout this presentation, unless otherwise indicated, “adjusted” figures exclude each of the following items, to the extent applicable, on a Group and business division level: – Own credit loss on financi
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