Ubs Group Ag · SIX:UBSG
Ubs — UBS AG (Amna, Amnd, Amtr, Amub, BDCX, BDCZ, Cefd, DJCB, Esus, Fedl, HDLB, Ifed, Iwdl, Iwfl, Iwml, Mlpb) — Investor Day (November 2011)
95 slides from Ubs's investor day presentation, Nov 17, 2011
Slide 1: Agenda UBS Investor Day November 17, 2011
Agenda UBS Investor Day-November 17, 2011 Start End Topic Speaker 12.00 12.30 Our strategy S. Ermotti 12.30 13.00 Capital, liquidity and funding T. Naratil 13.00 13.30 Investment Bank C. Kengeter 13:30 14:00 Q&A / opening session All previous speakers 14:30 15.00 Wealth Management J. Zeltner 15.55 1
Slide 2: UBS Investor Day
UBS Investor Day Sergio Ermotti Group Chief Executive Officer November 17, 2011 Investor Day 2011
Slide 3: 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 strategic initiatives on UBS's business and future development.
Slide 4: Key messages
2 Key messages Key messages We intend to propose a dividend of CHF 0.10 per share for FY11 and to implement a progressive capital return program thereafter We are targeting Basel 3 risk-weighted assets of no more than CHF 150 billion in our core Investment Bank We are targeting a Group return on equ
Slide 5: The pre-eminent wealth management franchise worldwide
3 651 720 The pre-eminent wealth management franchise worldwide Net new money (CHF billion) Pre-tax profit1 (CHF million) Advisors Total profits up despite challenging markets 9M10 9M11 NNM inflows in UHNW, Asia-Pacific, emerging markets and the US Improved retention rates and successful targeted re
Slide 6: We are building on the strengths of all of our businesses
4 We are building on the strengths of all of our businesses World's leading HNW and UHNW wealth manager: CHF 1.4 trillion of invested assets Unrivalled in scope, reach and client mix Strong footprint in all major financial centers WM: #1 Europe, APAC, EM, CH, UNHW by invested assets WM: Industry-lea
Slide 7: Our capital, funding and liquidity positions are strong
5 Our capital, funding and liquidity positions are strong Liquidity & funding1 Substantial excess liquidity: Basel 3 liquidity coverage ratio2 >100% Sound funding sources: diversified by market, product and currency Customer deposits and long-term debt > 50% of funded balance sheet Capital position1
Slide 8: Return on risk-weighted assets highlights the need for change
Return on risk-weighted assets highlights the need for change Our wealth management, asset management and R&C businesses generated three quarters of pre-tax profit over the last year 1 Adjusted for own credit, restructuring charges, unauthorized trading incident, UK Bank Payroll Tax, gains on the sa
Slide 9: We plan to reduce Investment Bank RWAs
We plan to reduce Investment Bank RWAs by CHF 145 billion Targeting a ~50%1 reduction in the total Investment Bank RWAs 30.9.11 pro forma ~CHF 400 billion 2016 pro forma ~CHF 270 billion Current and indicative future Basel 3 RWA breakdown (%) Legacy2 Global Asset Management Wealth Management Corpora
Slide 10: Optimizing risk-adjusted returns in the Investment Bank
Optimizing risk-adjusted returns in the Investment Bank We reviewed all business activities and made decisions ... .... to reduce risk and complexity and improve client focus and capital efficiency Portfolio attractiveness Return generation Client relevance and synergy Growth prospects RoE, RoRWAs,
Slide 11: Institutional, corporate, sovereign, sponsor and wealth management client needs
Institutional, corporate, sovereign, and sponsor client needs Wealth management client needs Thought leadership and high quality client coverage Global presence with particular strength in growth markets High speed trade execution and robust clearing platform Provider of liquidity and financing Deep
Slide 12: We remain vigilant on costs
10 We remain vigilant on costs We are managing scarce resources by driving tactical and strategic efficiency initiatives ... Restructuring charges1 (~CHF 550 million) 30% 10% 5% 55% Staff reductions1 (~3,500 FTE) Investment Bank Wealth Management & Swiss Bank Global Asset Management Wealth Managemen
Slide 13: Our strategic priorities
11 Our strategic priorities Wealth Management Strengthen industry-leading positioning: C/I, profit contribution and growth momentum Consolidate European onshore and cross-border businesses due to converging client needs Accelerate development within growth markets (Asia Pacific, Emerging Markets) Dr
Slide 14: Annual target performance ranges for the Group
12 Annual target performance ranges for the Group1 We intend to propose a dividend of CHF 0.10 per share for the financial year 2011 and we intend to implement a progressive capital return program thereafter 9M11 annualized Target2 12-17 10.7 9M11 65-75 77.5 Target Return on equity Cost / income rat
Slide 15: Key messages
13 Key messages Key messages We intend to propose a dividend of CHF 0.10 per share for FY11 and to implement a progressive capital return program thereafter We are targeting Basel 3 risk-weighted assets of no more than CHF 150 billion in our core Investment Bank We are targeting a Group return on eq
Slide 16: Finance - Tom Naratil
Finance Tom Naratil Group Chief Financial Officer November 17, 2011 Investor Day 2011
Slide 17: 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 strategic initiatives on UBS's business and future development.
Slide 18: Key messages
Our target return on equity is 12-17% for the Group Capital strength is the foundation for our success and we are targeting a common equity tier 1 ratio of 13% under Basel 3 We will implement a progressive capital return program as we successfully execute our strategy Key messages
Slide 19: We retained earnings and built our capital base
We retained earnings and built our capital base Balance sheet Tier 1 capital and capital ratios Basel 2 risk-weighted assets Book value / book value per share 1 PRVs = positive replacement values 2 For 2009 and earlier, calculation adjusted to include shares related to mandatory convertible notes Di
Slide 20: Diversified funding with a long-term funding surplus
Equity Money market Diversified funding with a long-term funding surplus 1 Including net replacement values 2 Based on UBS internal model for stressed liquidity 3 Tradable liabilities consist of trading portfolio liabilities, cash collateral on securities lent and repurchase agreements 4 Tradable as
Slide 21: Our liquidity position is strong
Our liquidity position is strong Funded balance sheet (30.9.11) 23% of our funded balance sheet assets are in the form of available liquidity1 We continue to be compliant with FINMA's liquidity regime We continue to have substantial excess liquidity Available liquidity as % of funded balance sheet U
Slide 22: Financial performance affected by challenging markets
Financial performance affected by challenging markets 1 Adjusted for own credit, restructuring charges, unauthorized trading incident, UK Bank Payroll Tax, gains on the sale of WM&SB's strategic investment portfolio, gains on the sale of property, provision for arbitration case (WMA, 3Q10) 2 Quarter
Slide 23: Key messages
Key messages Our target return on equity is 12-17% for the Group Capital strength is the foundation for our success and we are targeting a common equity tier 1 ratio of 13% under Basel 3 We will implement a progressive capital return program as we successfully execute our strategy
Slide 24: Risk-weighted assets - path to Basel 3
Risk-weighted assets-path to Basel 3 Basel 2 30.9.11 Basel 2.5 30.9.11 (CHF billion) 1 Reversal of CHF 17 billion of stressed VaR related to the unauthorized trading incident 2 Includes net long participations not consolidated (CHF ~3 billion additional RWAs), deferred pension expenses (RWAs reduced
Slide 25: Basel 3 risk-weighted assets reduction plan
Basel 3 risk-weighted assets1-reduction plan 2013 2014 2015 2016 2012 ~45% ~80% 100% 1 Basel 3 RWAs on a pro forma basis 2 Credit valuation adjustment 3 Over-the-counter to central counterparty 4 Student loan auction rate securities 5 Factors that will affect the timing of the exercise of our option
Slide 26: We are targeting a CET1 ratio of 13%
13.0% We are targeting a common equity tier 1 (CET1) ratio of 13% 30.9.11 6%4 31.12.12 31.12.13 Target common equity capital 19% 14.0% 10.1%3 6.2% 30.9.11 31.12.12 31.12.13 Target loss- absorbing capital 24.6 30.5 35.5 ~35 49.1 45.8 40.4 CET1 capital RWAs ~400 ~340 ~290 ~270 ~290 ~340 ~400 9.7% (CHF
Slide 27: A non-dilutive structure is our preferred form
A non-dilutive structure is our preferred form Loss-absorbing capital Swiss parliament passed the TBTF law in September 2011 Law most likely to come into force in early 2012 The regulation will be finalized by 2Q12 at the earliest and define important implementation details UBS is eligible for a cap
Slide 28: Deferred tax assets on net operating losses
Deferred tax assets on net operating losses The potential to recognize additional deferred tax assets remains significant Unrecognized potential DTAs on NOLs1,2 of CHF 18.1 billion on 30.9.11 Tax losses have a remaining average life of approximately 17 years in the US; indefinite life in the UK Prof
Slide 29: Key messages
Key messages Our target return on equity is 12-17% for the Group Capital strength is the foundation for our success and we are targeting a common equity tier 1 ratio of 13% under Basel 3 We will implement a progressive capital return program as we successfully execute our strategy
Slide 30: Our equity allocation framework
Our equity allocation framework WM WMA RWAs Assets RBC1 Internal measure of economic risk CC Central items ("Swiss finish", DTAs on net operating losses, deferred pension expenses) + 50% 25% 25% + Capitalize with 10% Basel 3 tier 1 ratio Capitalize with 3.5% Basel 3 leverage ratio Goodwill / intangi
Slide 31: Annual target performance ranges
Annual target performance ranges1 1 Annual performance ranges for 2012 through 2016; excluding own credit and future significant non-recurring items, if any; 2 Client assets (invested and custody-only assets) and loans (on-balance sheet client liabilities); 3 Net interest income (annualized) / avera
Slide 32: Key messages
Key messages Our target return on equity is 12-17% for the Group Capital strength is the foundation for our success and we are targeting a common equity tier 1 ratio of 13% under Basel 3 We will implement a progressive capital return program as we successfully execute our strategy
Slide 33: Appendix
Appendix UBS
Slide 34: Basel ratios: capital assumptions for illustrative example
Basel 3 ratios: capital assumptions for illustrative example 30.9.11 31.12.12 31.12.13 1 Profit assumptions based on 9M11 annualized net profit attributable to shareholders adjusted for significant items (own credit, restructuring charges, unauthorized trading incident, gains on the sale of WM&SB's
Slide 35: Exposures to selected European countries not rated AAA / Aaa
Exposures to selected European countries not rated AAA / Aaa1 1 Refer to pages 44-45 of UBS's 3Q11 report for more information 2 Includes central governments, agencies and central banks 3 Net of credit protection bought 4 The majority of the Ireland exposures relates to funds and foreign bank subsid
Slide 36: Investment Bank - Carsten Kengeter
Investment Bank Carsten Kengeter Investor Day 2011 CEO UBS Investment Bank November 17, 2011
Slide 37: 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 strategic initiatives on UBS's business and future development.
Slide 38: Key messages
Key messages The Investment Bank will be focused and simpler Our execution will be disciplined and effective Successful execution of our strategy will lead to attractive and sustainable risk- adjusted returns Our business mix is driven by core client needs and capital efficiency
Slide 39: An Investment Bank critical to the Group strategy
An Investment Bank critical to the Group strategy Optimize capital allocation while actively reducing risk Deliver sustainable risk-adjusted returns with a strategy balanced across three pillars Competitively service our core clients across wealth management, institutional, corporates, sovereigns, a
Slide 40: Build on our fundamental strengths
Build on our fundamental strengths Leadership position in core businesses ... Consistently top-ranked research house1 (covering 85% of global market cap) Top 3 Global Equities house2 Top 3 overall FX market share consistently since 20053; #1 FX House in 20114 #7 in Global M&A, #2 in Global ECM and #
Slide 41: Strategy focused on client needs
C/I ratio Capital intensity RoE What? Clients? Strategy focused on client needs Simpler business model based on three strategic pillars ... .... requires a careful balance to optimize returns Flow Execution Market-making Clearing WM, institutional High Medium Low Invest and Grow Solutions Support ke
Slide 42: Optimizing risk-adjusted returns
Optimizing risk-adjusted returns Portfolio attractiveness based on: Return generation Client relevance and synergy Growth prospects RoE, RoRWAs, RoA Importance for core clients across wealth management, institutional, corporates, sovereigns and sponsors Pre-tax profit contribution and growth Market
Slide 43: We have analyzed performance and capital allocation at a granular level
Average 9M11 pro forma Basel 3 RWAs Business mix 2010 and 9M11 annualized average ECBB1 We have analyzed performance and capital allocation at a granular level Exit Small to medium decrease Increase Large decrease Future RWA2 usage: Approximately flat 1 ECBB is an internal measure of business perfor
Slide 44: Optimizing the portfolio for capital and client needs
Optimizing the portfolio for capital and client needs Portfolio attractiveness of selected businesses (Return generation, client relevance and synergy, growth prospects, market standing) Capital intensity (Basel 2.5 / 3) 1 Basel 3 future RWAs expectations compared to the 9M11 average on a pro forma
Slide 45: Generating capital efficiency
Generating capital efficiency Targeting a ~50% reduction in total RWAs by 2016 ... .... with ~35% reduction in core businesses and ~90% in Legacy RWAs Core Investment Bank1 Basel 3 pro forma RWAs (CHF billion) Legacy 3Q11 2013 target 2016 target ~70 ~30 ~5 ~90% ~2-3x 3Q11 2008 Market and Credit Risk
Slide 46: Risk-weighted assets reduction targets
Basel 3 risk-weighted assets1 - reduction targets 1 Basel 3 RWAs on a pro forma basis 2 Credit valuation adjustment 3 Over-the-counter to central counterparty 4 Student loan auction rate securities 2013 2014 2015 2016 2012 ~45% ~80% 100% IB targeted completion RWA reductions (CHF billion) ~30 ~0-10
Slide 47: FICC business impact from RWA reduction
FICC business impact from RWA reduction1 Macro Credit Emerging Markets Reduce capital-inefficient trades in Long-End Rates Continued focus on increasing client flow and electronic execution Optimize Short-End Rates platform Estimated revenue impact of ~ CHF 300 million3 RWA reduction driving rationa
Slide 48: FICC - reduced capital usage with a focus on serving clients
FICC - reduced capital usage with a focus on serving clients Flow Solutions Advisory and analytics Flow Advisory Solutions Advanced algorithmic trading capabilities Next-generation automation of market- making and agency client platforms OTC to CCP and PIN-FI1 Increase velocity UBS Neo to increase m
Slide 49: Equities - grow with targeted investment in technology
Equities - grow with targeted investment in technology Flow Advisory and analytics Flow Advisory Electronic execution, client platforms (UBS Neo) and algorithmic capabilities EM footprint in cash and access products High frequency trading through technology offerings Processing scale Derivatives off
Slide 50: IBD - increase market share and leverage global footprint
IBD - increase market share and leverage global footprint Geographic focus Advisory and analytics Geography Advisory Strengthen US IBD Restore EMEA IBD market share Extend leading market position in APAC Derivatives and principal solutions in a capital-efficient manner Monetization of lending book E
Slide 51: Initiatives to strengthen IB / WM partnership
Specific initiatives underway to strengthen IB / WM partnership Guiding principle is to align service delivery and execution of each pillar based on client needs and economics Client Flow Solutions Advisory & analytics Ultra High Net Worth (UHNW) HNW and other Global Family Office (GFO) Dedicated se
Slide 52: We remain vigilant on costs
We remain vigilant on costs ~1,300 gross front office headcount exits initiated in 9M11, with full impact reflected in 2012 Discretionary spending focused on client revenue generating activities Operating model and process improvements to increase efficiency Increased management focus and transparen
Slide 53: Effective and disciplined execution
Effective and disciplined execution Focused on staff development Incentive compensation that incorporates resource use Systematic interface with WM / WMA Clearer client coverage model Centralized measurement of client profitability, scarce resource use Differentiated execution of pillars Tightly con
Slide 54: Our targets for the future
Pre-tax RoaE4 Cost / income ratio3 RWA2 (CHF billion) <150 127 198 ~300 Basel 2 Target 78 90 70 - 80 2010 3Q11 YTD Target (%) (%) Our targets for the future1 Basel 2.5 3Q11 Basel 3 pro forma 10.8 3.5 12 - 17 2010 3Q11 YTD 1 Annual performance ranges for 2012 through 2016; excluding own credit and fu
Slide 55: Key messages
Key messages The Investment Bank will be focused and simpler Our execution will be disciplined and effective Successful execution of our strategy will lead to attractive and sustainable risk- adjusted returns Our business mix is driven by core client needs and capital efficiency
Slide 56: UBS Wealth Management - Jurg Zeltner
UBS Wealth Management Jurg Zeltner CEO UBS Wealth Management November 17, 2011 Investor Day 2011
Slide 57: 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 strategic initiatives on UBS's business and future development.
Slide 58: Key messages
Key messages We have delivered stronger profits in a difficult environment We are strongly positioned to grow We aspire to higher profitability We are putting Investment Management & Advisory at the heart of our business
Slide 59: Wealth Management - unique global client base
Wealth Management-unique global client base UBS position5 UBS WM invested assets on 30.9.111 o/w UHNW Asia Pacific Europe2 Net new money1 Emerging markets4 Switzerland3 #1 #1 #1 #1 #1 9M10 9M11 Total WM (CHF billion) (CHF billion) 273 135 292 158 154 (3.3) (15.7) (3.4) 8.9 16.3 8.3 6.7 (0.2) 6.7 7.1
Slide 60: Wealth Management performance
(13%) (87.1) (12.1) 20.51 NNM (CHF billion) Invested assets (CHF billion) RoA5 (bps) Total operating expenses4 (CHF million) Profit before tax (CHF million) 1 YTD 9M11 2 Excluding gain on the sale of the strategic investment portfolio (CHF 433 million) 3 YTD 9M11 annualized for total operating incom
Slide 61: Performance against WM peers
Performance against WM peers 1 Delta RoA of period shown vs. RoA of preceding period; RoA calculated based on reported total operating income and average invested assets of respective period 2 Cost / income ratio of period shown 3 Peers: Barclays, Credit Agricole, Credit Suisse, EFG International, H
Slide 62: Achievements 2009 to date
Achievements 2009 to date RoA increase by 6 bps Cost / income ratio improved by 2 ppt to 68% 9M11 Positive operational leverage ? Sustainable NNM turnaround APAC with positive NNM in each year >70% of NNM from UHNW in 2011 Access to growth through unique client base and global footprint ? Profitabil
Slide 63: Key messages
Key messages We have delivered stronger profits in a difficult environment We are strongly positioned to grow We aspire to higher profitability We are putting Investment Management & Advisory at the heart of our business
Slide 64: The new investor challenge
The new investor challenge Interest rates Equity performance Market volatility Credit spreads "Bull market" The past (until 2007) "Survival mode" Post crisis (2008-2010) "Alpha challenge" The future (2011- ) S&P 5001 VIX1 US Treasury1 iTRAXX1 1 Source: Bloomberg Time series shown from January 2004 u
Slide 65: Investment Management and Advisory - key components
Investment Management and Advisory-key components Vast, deep understanding of markets Top-tier investment insight Leading investment management capabilities High quality product shelf One house view Local market insights Fast and focused communication to CAs Timely implementation of investment ideas
Slide 66: Chief Investment Officer driving the new investment process
Chief Investment Officer driving the new investment process CIO contribution Fast and crisp communication of UBS House View to advisors and clients Locally customized and suitable advisory packages providing actionable investment guidance for clients Ad-hoc communication in case of market events / t
Slide 67: Investment Management and Advisory
Investment Management and Advisory Risk management Asset servicing / Global custody Wealth Management Advisory Portfolio management Traditional funds Hedge Funds Private Equity Real Estate Mandates Investment Bank Global Asset Management Global Investment Committee ECM / DCM Prime brokerage Product
Slide 68: Investment Banking - a prerequisite for Wealth Management
Investment Banking-a prerequisite for Wealth Management Low Mid High Need for IB product DCM ECM M&A Flow credit Credit solutions Corporate lending Rates FX Other macro / Prop Emerging markets Commodities Prime brokerage Cash equities Equity derivatives Prop Research Institutional-like coverage (e.g
Slide 69: UBS Wealth Management - the clients' choice
UBS Wealth Management-the clients' choice FX-hedging Commodities financing Global network Pre-IPO financing Placement Wealth advisory / planning Multi- booking Global Family Office Mandates Alpha opportunities Alternative mandates Direct access Execution capabilities Financing solutions Wealth struc
Slide 70: Key messages
Key messages We have delivered stronger profits in a difficult environment We are strongly positioned to grow We aspire to higher profitability We are putting Investment Management & Advisory at the heart of our business
Slide 71: Well positioned in the most attractive markets
Well positioned in the most attractive markets 2% GDP growth p.a. until 2016 23% of global GDP in 2016 ^ 190 billionaires2 Western Europe1 4% GDP growth p.a. until 2016 17% of global GDP in 2016 ^ 240 billionaires2 Emerging Markets3 6% GDP growth p.a. until 2016 33% of global GDP in 2016 ^ 290 billi
Slide 72: APAC - our strongest growth market
APAC-our strongest growth market Net new money (CHF billion) Invested assets (CHF billion) Hub strategy out of financial centers Singapore and Hong Kong Selective onshore market presences (e.g. Japan, Taiwan) Long-term investments in India and China Tight collaboration with IBD, IB Research and IB e
Slide 73: Emerging markets - leading franchise with growth potential
Emerging markets1-leading franchise with growth potential Net new money (CHF billion) Invested assets (CHF billion) Strong UBS franchise WM present in more than 20 countries Growing Investment Bank capabilities: "Best M&A Bank in Middle East" (Global Finance) "Top 2 overall Emerging Market Deal of t
Slide 74: Switzerland - strengthen #1 position
Switzerland-strengthen #1 position Full integration across all businesses (Retail and Corporate, Asset Management, Investment Bank) Strong referrals from Swiss Corporate and Retail client base Strong regional integration with Corporate and Retail leveraging joint platform and distribution network St
Slide 75: Cross-border Europe - the rules are changing
Convergence of client needs Cross-border Europe-the rules are changing Increased international pressure on banking secrecy jurisdictions Fiscal transparency Increased regulatory requirements and complexity (high entry barriers) Comprehensive Pan-European market access Investor protection MiFID AIFMD
Slide 76: Europe - our largest franchise
Strong UBS franchise "Best Private Bank in Europe" (The Banker, Global Private Banking Awards 2011) "Best Private Bank for UHNW in Western Europe" (Euromoney 2011) Global Asset Management: strong position in mutual fund business Combined market coverage - gain market share again Strong onshore franc
Slide 77: Key messages
Key messages We have delivered stronger profits in a difficult environment We are strongly positioned to grow We aspire to higher profitability We are putting Investment Management & Advisory at the heart of our business
Slide 78: UBS Wealth Management performance and targets
Cost / income ratio Gross margin4 (bps) UBS Wealth Management performance and targets1 4286.00000000049 4172.00000000047 4252.00000000048 4700.00000000053 Target ~4,700 9M11 4,252 2010 4,172 2009 4,286 91.0000000000103 92.0000000000105 97.000000000011 100.000000000011 Target 95-105 9M11 972 2010 200
Slide 79: Key levers to reach our targets
Net new money growth Efficiency Revenue increase Our challenges Key levers to reach our targets1 Our key levers Sales and advisory process Pricing and discount management Product shelf performing throughout market cycle Access to Investment Bank Cumulative net new money by client advisors Gross marg
Slide 80: Pursuing our successful trajectory
Earnings quality (RoA) NNM turnaround Focused investments Retention Cost management Rigorous compliance framework Investment Management and Advisory Accelerated growth Fully exploit group potential Execute and Perform Pursuing our successful trajectory Profit margin (Pre-tax profit in % of Income) S
Slide 81: Key messages
Key messages We have delivered stronger profits in a difficult environment We are strongly positioned to grow We aspire to higher profitability We are putting Investment Management & Advisory at the heart of our business
Slide 82: Wealth Management Americas - Robert McCann
Wealth Management Americas Robert McCann CEO Wealth Management Americas November 17, 2011 Investor Day 2011
Slide 83: 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 strategic initiatives on UBS's business and future development.
Slide 84: Key messages
Key messages We are reconfirming our client-focused and advisor-centric strategy Our growth will be driven by three key areas - banking and lending, advice-based solutions and delivering the firm We are confident that we will achieve our targets
Slide 85: Reconfirming our strategy
Reconfirming our strategy Unique positioning and global reach provide optimal size and agility 1 On 30.9.11 = USD 500 billion Circle size reflects invested assets1 1 C B A UBS WMA + WM WMA Scale-driven firms (US peers) Private bank / trust models Future
Slide 86: Executing our strategy
1 CHF converted to USD as follows: 9M09 average 1.10; 9M11 average 0.88 2 9M09 includes USD 139 million in restructuring charges and USD 17 million in goodwill impairment charges; 9M11 includes USD 11 million in restructuring charges 3 Annualized, based on WMUS headcount 4 Figures reflect period-end
Slide 87: Industry-leading advisor productivity
Industry-leading advisor productivity Competitor A Competitor B Competitor C UBS 112 113 513 650 647 612 662 767 785 747 837 931 893 854 683 855 884 3Q09 1Q11 2Q11 3Q11 895 37 73 74 69 84 97 97 90 93 102 98 90 92 3Q09 1Q11 2Q11 3Q11 103 Revenue per FA (USD thousand) Invested assets per FA (USD milli
Slide 88: Key messages
Key messages We are reconfirming our client-focused and advisor-centric strategy Our growth will be driven by three key areas - banking and lending, advice-based solutions and delivering the firm We are confident that we will achieve our targets
Slide 89: Banking opportunity - lending & mortgages
1 Households with more than USD 100,000 in assets held at UBS and a Resource Management Account relationship as of June 2011 2 Estimated using internal models with IXI (third-party research firm) and UBS proprietary data 3 Jumbo: mortgage loan greater than USD 625,250 in certain high cost US cities
Slide 90: Banking opportunity - credit line balances
Continued focus on HNW & UHNW segments has resulted in significant credit line balance and NNM increases since 2009 Banking opportunity-credit line balances Balances with HNW & UHNW clients have grown over 41% since 2009 Credit conditions have allowed proper risk-based pricing YTD 2011 NNM inflows o
Slide 91: Evolution of advisor focus
Evolution of advisor focus Description % FAs4 ROA lift5 Revenue concentrated in transactional products1 Revenue mainly split between transactional products and fee- based business2 Majority of revenues in fee- based business2 Some use of complementary solutions3 Revenue concentrated in fee- based bu
Slide 92: Delivering the firm
Over 16% of FAs have made an internal referral YTD, generating USD 1.1 billion in NNM Referrals to the Investment Bank have increased over 21%1 Integration of Corporate, Institutional and Middle Markets platforms Incentives and accountability in place to drive cultural change Delivering the firm We
Slide 93: Key messages
Key messages We are reconfirming our client-focused and advisor-centric strategy Our growth will be driven by three key areas - banking and lending, advice-based solutions and delivering the firm We are confident that we will achieve our targets
Slide 94: Recent success supports confidence in growth ambitions
Recent success supports confidence in growth ambitions Annual NNM growth Cost / income ratio Gross margin (bps) 75-85 81 80 78 2009 2010 3Q11 Target YTD 99 102 90 80-90 2009 2010 3Q11 Target YTD (%) (%) We are confident we will achieve our targets1 (1.8) 2.0 2-4 2009 2010 3Q11 Target (0.9) 1 Annual
Slide 95: Key messages
Key messages We are reconfirming our client-focused and advisor-centric strategy Our growth will be driven by three key areas - banking and lending, advice-based solutions and delivering the firm We are confident we will achieve our targets This Form 6-K is hereby incorporated by reference into (1)