Ubs Group Ag · SIX:UBSG
Ubs — Q2 2009 Earnings Presentation
28 slides from Ubs's earnings presentation, Aug 4, 2009
Slide 1: Second Quarter 2009 Results
Second Quarter 2009 Results Aug 4, 2009
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: Stabilized financial position
Stabilized financial position ♦Strengthened Tier 1 capital ratio to 13.7%1 Capital protection ♦FINMA leverage ratio increased to 3.5% ♦Reduced balance sheet and risk exposures Reducing risk ♦Reduced risk-weighted assets by CHF 30bn to 248bn ♦Continued to reduce fixed cost base and on track Reducing
Slide 4: Group results
Group results 2Q08 1Q09 2Q09 Profit before tax1 (CHF m) (4'067) (1'547) (1'316) Net profit attributable to UBS shareholders (CHF m) (395) (1'975) (1'402) Diluted earnings per share (CHF) (0.16) (0.57) (0.39) Total assets (CHF bn) 2'080 1'861 1'600 Risk-weighted assets (CHF bn) 325 278 248 Tier 1 rat
Slide 5: Performance by division
Performance by division (CHF m) WM&SB WMA Global AM IB CC UBS Income 2'934 1'367 530 2'114 425 7'371 Credit loss (expense) / recovery (20) 1 (369) (388) Own credit1 (1'213) (1'213) Total operating income 2'914 1'368 530 532 425 5'770 Personnel expenses 1'358 1'154 309 1'474 284 4'578 Non-personnel e
Slide 6: Revenues
Revenues (CHF m) Net fee and Net income Net income Net income Total income Own credit Total income2 commission from interest from trading from treasury excl. own income margin businesses excl. activities and credit businesses own credit other1 7'371 6'158 6'104 5'453 4'502 4'241 1'321 1'302 1'006 1'
Slide 7: Headcount
Headcount 2Q09 as reported ♦ Communicated over 8'000 job (1'103) cuts in 2Q09 (1'816) (143) (1'142) (196) ♦ A significant proportion of (FTE) 76'206 these job losses will only be (4'400) 71'806 reflected in our disclosures in the coming quarters Mar 09 WM&SB WM Global IB CC Jun 09 Americas AM ♦ Targ
Slide 8: Personnel expenses
Expenses (CHF m) ♦ Fixed costs run rate on track to reach our target, despite base 9% salary increases 1'074 ♦ Personnel expenses increased (823) 487 largely on higher performance (173) related compensation 7'093 6'528 5'705 6'019 ♦ Significant items in 2Q09 6% – Goodwill impairment CHF 492m – Restr
Slide 9: Invested assets
Invested assets WM&SB (CHF bn) ♦ Swiss clients outflows improved to CHF 0.2bn from CHF 10.2bn prior quarter 56 (12) (17) ♦ International clients outflows increased to CHF 934 961 3% 16.3bn from CHF 13.2bn prior quarter Mar 09 NNM Market FX / Other Jun 09 WM Americas (CHF bn) 53 ♦ Outflows in WM Amer
Slide 10: Further reduction of risk exposure
Further reduction of risk exposure Monoline ♦Commuted trades with a notional value of USD 5.7bn1 with 3 monoline insurers insurers ♦Remaining exposure to monoline insurers reduced to USD 3.2bn Leveraged ♦Net exposure reduced to USD 2.6bn finance ♦No longer identified as risk concentration Auction ♦N
Slide 11: Risk-weighted assets
Risk-weighted assets (CHF bn) ♦ Market risk expected to 278 increase to ~60bn post (11)% 248 248 implementation of 46 proposed enhancements to 8 46 23 the Basel II framework 28 8 22 52 ♦ Overall, there is still further scope to reduce risk- weighted assets by at least 195 10% over time 172 161 1Q09
Slide 12: Regulatory capital
Regulatory capital Tier 1 BIS Tier 1 Total Total capital RWA ratio capital ratio CHF billion 31.03.09 29.2 278 10.5% 41.0 14.7% Net P&L attr. to shareholders (1.4) (1.4) Net P&L not eligible for capital 1.2 1.2 Share placement 3.8 3.8 Other1 (0.2) (0.2) Risk-weighted assets (30) Impacts on Tier 2 ca
Slide 13: Capital position
Capital position Tier 1 ratio (%) ♦ Tier 1 capital ratio at the end of Core Tier 1 ratio (%) 13.7 2Q09 was 13.2%, while pro 13.2 forma1 was 13.7% 11.0 10.7 10.5 10.1 8.5 ♦ Core tier 1 capital ratio at the end 7.8 of 2Q09 was 10.1%, while pro 33.2 33.6 forma1 was 10.7% 32.6 29.2 7.4 7.5 7.5 7.7 (CHF
Slide 14: FINMA leverage ratio
FINMA leverage ratio FINMA leverage ratio (%) 3.7 ♦ Average adjusted assets 3.5 decreased by CHF 137bn or 2.7 13% during 2Q09 2.5 2'212 ♦ Pro-forma leverage ratio of 1'999 3.7% using: – 2Q09 ending adjusted assets of 654 1'689 1'600 CHF 907bn 704 166 – CHF 33.6bn of Tier 1 capital 41 543 480 taking
Slide 15: Highly liquid balance sheet and diversified funding profile
Highly liquid balance sheet and diversified funding profile Asset funding, 30 June, 2009 CHF bn Cash & banks 88 Due to banks 109 Loans 316 Deposits 446 Time deposits 126 141% coverage Demand 160 deposits Trading assets 286 Retail savings 109 / deposits Fiduciaries 52 Long term 190 debt ♦ Maintained
Slide 16: Wealth Management & Swiss Bank
Wealth Management & Swiss Bank Pre-tax profit ♦ Pre-tax profit excluding restructuring (CHF m) charges is up 16% from 1Q09 1'858 ♦ Personnel expenses excluding restructuring 1'253 charges are down 9%, mainly due to lower performance-related accruals and the 16% reductions of personnel 1'077 932 ♦ No
Slide 17: Wealth Management Americas
Wealth Management Americas Pre-tax profit as reported (CHF m) ♦ Restructuring charges of CHF 152m in 2Q09 (35) (221) (748) ♦ Revenues down 3%, while underlying2 expenses increased 1% 2Q08 1Q09 2Q09 ♦ Gross margins were stable in US dollar terms Pre-tax profit - adjusted1 (CHF m) ♦ NNM impacted by an
Slide 18: Global Asset Management
Global Asset Management Pre-tax profit as reported (CHF m) ♦ Underlying pre-tax profit decreased by CHF 30m 352 ♦ Increased performance fees were more 82 than offset by higher personnel (59) expenses 2Q08 1Q09 2Q09 ♦ Cost / income ratio on adjusted basis is Pre-tax profit - adjusted1 79.4% (CHF m) ♦
Slide 19: Investment Bank
Investment Bank Pre-tax profit ♦ Lower losses on risk positions from businesses (CHF m) being exited compared with 1Q09 ♦ 2Q09 results include own credit losses of CHF 1'213m compared with gains of 651m in 1Q09 (1'846) ♦ Increased revenues in IBD and Equities, while FICC remained weak (3'162) ♦ Unde
Slide 20: Investment Bank revenues
Investment Bank revenues Investment banking Sales & Trading – Equities Sales & Trading – FICC (CHF m) (CHF m) (CHF m) 1'680 1'456 1'371 1'008 717 304 (59) (1'970) (4'645) 2Q08 1Q09 2Q09 2Q08 1Q09 2Q09 2Q08 1Q09 2Q09 ♦ Advisory revenues down 2% ♦ Higher cash revenues, ♦ Reported revenues include: to
Slide 21: Stabilized financial position
Stabilized financial position ♦Strengthened Tier 1 capital ratio to 13.7%1 Capital protection ♦FINMA leverage ratio increased to 3.5% ♦Reduced balance sheet and risk exposures Reducing risk ♦Reduced risk-weighted assets by CHF 30bn to 248bn ♦Continued to reduce fixed cost base and on track Reducing
Slide 22: 21
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Slide 23: Appendix
Appendix
Slide 24: WM&SB - International clients
WM&SB - International clients Revenues ♦ Revenues declined 24m or 2%, mainly (CHF m) driven by lower asset based fees, partly offset by higher brokerage 2'058 commissions, following increased client trading activities 1'393 1'369 ♦ International clients outflows (2%) increased to CHF 16.3bn from CHF
Slide 25: WM&SB - Swiss clients
WM&SB - Swiss clients Revenues ♦ Revenues declined CHF 54m or 3% on (CHF m) lower interest income and decreased fee income 1'924 1'619 1'565 ♦ Net new money outflows improved to CHF 0.2bn from CHF 10.2bn prior quarter (3%) (19%) 2Q08 1Q09 2Q09 2Q08 1Q09 2Q09 vs. 1Q09 Revenues (CHF m) 1'924 1'619 1'5
Slide 26: Corporate Center
Corporate Center Pre-tax profit from cont. operations ♦ 2Q09 includes (CHF m) – Goodwill impairment of CHF 492m 621 related to Pactual – SNB fund call option gain of CHF 129m – MCN gain of CHF 78m – Restructuring charges of CHF 33m ♦ 1Q09 includes – MCN gain of CHF 524m – Gain on buy-back of subordi
Slide 27: Balance sheet trend
Balance sheet trend (CHF bn) 2'542 2'487 335 2'275 2'233 2'080 1'997 2'015 1'861 1'600 958 754 543 289 286 775 315 303 408 452 416 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Lending Collateral trading Trading portfolio Other assets Positive replacement values 26
Slide 28: Exposure to monoline insurers
Exposure1 to monoline insurers2 Credit Fair value of Fair value of Fair value Notional valuation underlying CDSs5 prior of CDSs amount3 adjustment CDOs4 to CVA after CVA USD billion as of 30.6.09 Credit protection on US RMBS CDOs 6.3 0.7 5.6 4.0 1.6 of which from monolines rated investment grade (BB