Ubs Group Ag · SIX:UBSG
Ubs — Q1 2022 Earnings Presentation
25 slides from Ubs's earnings presentation, Apr 26, 2022
Slide 1: First quarter 2022 Financial results
First quarter 2022 Financial results 26 April 2022
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 1 2 3 Key messages Financial performance Q&A Ralph Hamers, Group CEO Kirt Gardner, Group CFO 2
Slide 4: Key messages
Key messages We are executing our We are helping our We delivered strong strategy to drive growth clients navigate firm-wide results while and efficiency challenging markets managing risk 3
Slide 5: We are executing our strategy to drive growth and efficiency
We are executing our strategy to drive growth and efficiency Focusing on +7.9bn commitments #1 in the US growth Private markets Client satisfaction3 GWM, 1Q22 GWM Expanding into +7.5bn NNM House of the Year new client segments SMA Advantage1 Currency Derivatives4 AM, 1Q22 IB Creating sustainable 52%
Slide 6: Sustainability is core to our purpose and ecosystem
Sustainability is core to our purpose and ecosystem Our sustainability People Planet Partnerships commitment Be the financial provider of Support for Ukraine Climate roadmap Setting standards choice for clients who wish to • Working with partners to provide critical UBS’s strategic climate roadmap w
Slide 7: Helping our clients navigate challenging markets
Helping our clients navigate challenging markets Macroeconomic, geopolitical Fee-generating assets Invested assets Investment products Global Markets income and market factors GWM AM P&C Personal Banking, CHF IB Russia’s invasion 1.4trn 1.1trn 1.2trn 23.1bn 2.4bn of Ukraine 1.3trn 20.9bn 1.5bn2 COVI
Slide 8: We reduced Russian exposures early and actively
We reduced Russian exposures early and actively… Clients Risk management and resilience Our Russia exposures, as of 31.3.22 − Beacon of stability for clients amid − Continue to implement the rapidly evolving Direct country exposure 0.4bn significant uncertainty and complex sanctions imposed by vs. 0
Slide 9: ...and delivered strong firm-wide results
…and delivered strong firm-wide results RoCET1 19.0% 18.2% 1Q22 key figures 73.8% RoTE 16.0% Targets / guidance 14.0% Group PBT 2,729m C/I 70.7% Net profit 2,136m EPS 0.61 Net profit Profit before tax RoCET1 19.0% 15-18% bn bn +21% CAGR Cost/income 70.7% 70-73% +23% 2.7 CAGR GWM PBT growth (7%) 10-1
Slide 10: Financial performance
1 Key messages 2 Financial performance 3 Q&A Financial performance Kirt Gardner, Group CFO 9
Slide 11: 1Q22 net profit USD 2.1bn; 19.0% RoCET1
1Q22 net profit USD 2.1bn; 19.0% RoCET1 Profit before tax m 1Q22 +19% 705 (47) 2,729 2.1bn 0.61 net profit diluted EPS (227) +17% +24%1 2,298 Operating income +8% Operating expenses +4% 19.0% 1.7bn return on shares +2% excl. variable and FA CET1 capital repurchased2 comp., litigation and FX 31.3.22
Slide 12: Global Wealth Management
Global Wealth Management (7%) PBT 1,310m, (7%) as growth in Switzerland and Profit before tax 1,409 1,516 1,310 m 1,294 EMEA was more than offset by a decline in APAC 563 Operating income +1%; revenue per advisor 2.1m1, +1% +4% YoY 4,848 4,774 5,002 4,824 4,912 Transaction-based income 953 894 807 9
Slide 13: Global Wealth Management
Global Wealth Management Recurring net fee income Net interest income Transaction-based income m m m Loans / bn +7% 219 228 231 234 230 2,896 Deposits / bn 2,774 2,872 2,806 2,629 337 344 352 370 372 +14% (19%) 1,107 1,114 1,141 1,183 997 1,026 953 954 894 807 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21
Slide 14: Personal & Corporate Banking (CHF)
Personal & Corporate Banking (CHF) +10% PBT 395m, +10% reflecting continued strong business Profit before tax m 456 439 395 momentum; 4% positive operating leverage 358 335 Operating income +3% driven by a 112m increase from strong business momentum, partly offset by a +3% 16m valuation loss vs. a 2
Slide 15: Asset Management
Asset Management (23%) 334 227 255 PBT 174m, (23%) reflecting lower performance fees Profit before tax 214 174 m Fondcenter1 sale gains Operating income (9%), as an increase in net management fees was more than offset by a decrease in performance fees from particularly high (9%) levels in 1Q21 721 6
Slide 16: Investment Bank
Investment Bank +126% 837 929 RoAE 28%; PBT 929m Profit before tax 668 713 m 412 Global Markets revenues +59%; +4% excl. the loss on the default of a prime brokerage client in 1Q21 ₋ Execution Services (11%) partly driven by lower cash equities revenues +28% ₋ Derivatives & Solutions +14% led by equ
Slide 17: Capital and leverage ratios
Capital and leverage ratios Total loss-absorbing capacity (TLAC) 107bn 34.2% 9.93% 12bn buffer 28bn TLAC: 8.78% buffer 47bn Gone concern 14.9% 4.34% loss-absorbing capacity TLAC: 25.1% Going concern capital 60bn 19.2% 5.60% AT1 6bn 15bn 5.0% 15bn 1.44% Going concern: 5.00% CET1 capital 45bn 14.3% 4.
Slide 18: Reimagining the power of investing. Connecting people for a better world.
Purpose Reimagining the power of investing. Connecting people for a better world. Client promise Vision Strategic imperatives Personalized Convene THE global ecosystem for Clients, Connections, Contributors Relevant investing where thought leadership On-time is impactful, people and ideas are Focus
Slide 19: Appendix
Appendix 18
Slide 20: Group results
Group results 1Q21 2Q21 3Q21 4Q21 1Q22 Total operating income 8,705 8,976 9,128 8,732 9,363 of which: credit loss (expenses) / releases 28 80 14 27 (18) Total operating expenses1 6,407 6,384 6,264 7,003 6,634 Operating profit / (loss) before tax 2,298 2,593 2,865 1,729 2,729 Tax expense / (benefit)
Slide 21: 1Q22 Group results by region
1Q22 Group results by region Americas Switzerland EMEA Asia Pacific +22% (2%)1 3.8 Operating income 3.2 bn +4% +12% (16%) 1.9 2.0 2.0 1.9 1.8 1.6 1Q21 1Q22 1Q21 1Q22 1Q21 1Q22 1Q21 1Q22 Profit before tax bn 0.8 0.9 0.7 0.6 Operating expenses bn 3.1 1.2 1.3 1.0 Cost/income ratio 81% 57% 65% 64% Exclu
Slide 22: 1Q22 Global Wealth Management results by region
1Q22 Global Wealth Management results by region Americas Switzerland EMEA Asia Pacific (6%) (38%) 467 468 439 +21% Profit before tax +30% 347 m 287 288 249 191 1Q21 1Q22 1Q21 1Q22 1Q21 1Q22 1Q21 1Q22 Cost/income 84% 51% 65% 59% ratio Invested assets 1,772 270 605 494 bn Net new fee- generating asset
Slide 23: Common equity tier 1 capital
Common equity tier 1 capital CET1 capital bn (0.4) 2.7 (1.7) 45.3 (0.4) (0.4) 44.6 (0.6) n.a. ~100% of 1Q22 net profit CET1 capital ratio (0.1%) 0.9% (0.5%) 15.0% (0.1%) (0.1%) (0.2%) (0.5%) 14.3% 31.12.21 PBT Current tax Share repurchase Dividend Debt instruments Other2 Increase 31.3.22 expense pro
Slide 24: Risk-weighted assets
Risk-weighted assets Risk-weighted assets bn 2.1 (2.0) 312.0 2.8 7.0 302.2 • Mainly driven by +2.6bn from asset • +2.1bn driven by impact of French size and other movements, primarily cross-border matter verdict in 4Q21 related to higher average regulatory − Additional +2.0bn op. risk RWA to and str
Slide 25: 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