Slide 1: First quarter 2015 results
First quarter 2015 results May 5, 2015
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: 1Q15 highlights
1Q15 highlights Net profit attributable to UBS Group AG shareholders of CHF 1,977 million Group Net profit attributable to UBS Group AG shareholders CHF 1,977 million, diluted EPS CHF 0.53 Reported profit before tax (PBT) CHF 2,708 million, adjusted PBT CHF 2,268 million Basel III fully applied CET1
Slide 4: UBS Group AG results (consolidated)
UBS Group AG results (consolidated) CHF million FY13 FY14 1Q14 4Q14 1Q15 1Q15 Total operating income 27,732 28,027 7,258 6,746 8,841 Total operating expenses 24,461 25,567 5,865 6,342 6,134 Profit before tax as reported 3,272 2,461 1,393 404 2,708 of which: own credit on financial liabilities design
Slide 5: Wealth Management
Wealth Management PBT CHF 856 million, highest since 3Q08 1,913 1,953 1,837 1,859 1,943 1,921 2,031 2,004 2,106 Operating income CHF 2,106 million Operating 479 436 589 Transaction-based income increased across all regions, income 554 505 406 423 542 472 most notably in APAC 523 513 518 569 583 56
Slide 6: Wealth Management
Wealth Management Strong growth in mandate penetration, net margin up 7 bps to 35 bps 7.3% Net new 5.8% money 4.6% 4.9% 4.8% 4.2% NNM CHF 14.4 billion, 5.8% growth rate on strong inflows from APAC as well as Europe Annualized 2.3% 2.7% growth rate 1.2% Domestic and International CHF billion 15.0 1
Slide 7: Wealth Management
Wealth Management Strong NNM growth, positive in all regions, with APAC and Europe as main contributors Europe Asia Pacific Switzerland Emerging markets of which: UHNW Net new 16.0% money 13.1% 12.2% 11.0% 9.2% 8.7% 9.1% Annualized 7.8% 7.1% 8.1% growth rate 5.3% 5.1% 5.9% 3.3% 3.6% 3.6% 1.1% 0.9% 0
Slide 8: Wealth Management Americas
Wealth Management Americas Record PBT USD 293 million 1,851 1,865 1,898 1,919 1,924 1,901 Operating income USD 1,901 million 1,696 1,780 1,748 Operating 476 472 464 441 448 432 Operating income decreased, mainly due to lower 507 433 income 530 276 250 261 276 280 277 transaction-based income 235 2
Slide 9: Wealth Management Americas
Wealth Management Americas Record USD invested assets and loan balances 4.4% Net new money NNM USD 4.8 billion, 1.9% growth rate 2.1% 1.9% 2.2% 1.9% 1.3% reflecting net new money inflows from financial 0.9% 0.9% Annualized advisors employed more than one year growth rate (1.0%) USD billion 9.2 2.8
Slide 10: Wealth Management Americas
Wealth Management Americas Record USD invested assets and industry-leading FA productivity Invested assets and FA productivity Net interest income and lending Annualized revenue per FA (USD k) Net interest income (USD million) Invested assets per FA (USD million) Credit loss (expense)/recovery (USD
Slide 11: Retail & Corporate
Retail & Corporate Highest first quarter PBT since 1Q10 and all KPIs within target ranges 948 958 931 938 958 913 979 Operating income CHF 979 million Operating 919 932 267 273 284 Transaction-based income increased, mainly due to income 243 272 262 256 234 247 FX-trading and hedging-related incom
Slide 12: Global Asset Management
Global Asset Management PBT CHF 186 million, up 50% and highest since 4Q09 483 489 482 489 497 511 Operating income CHF 511 million 447 451 465 Operating 53 41 72 38 27 34 68 29 47 Performance fees increased, primarily in O’Connor and income A&Q funds, partly offset by global real estate and CHF m
Slide 13: Investment Bank
Investment Bank Strong performances in both ICS and CCS 2,728 2,666 Operating income CHF 2,666 million Operating 2,250 2,190 2,241 997 801 CCS increased on higher revenues in DCM, ECM and income1 771 1,707 1,861 1,985 1,935 770 986 financing solutions as well as higher risk management 706 738 712
Slide 14: Investment Bank
Investment Bank Solid 1Q15 results delivered with continued efficient resource utilization Market volatility Equity trading volumes VIX and VDAX (index value), USD/EUR and USD/CHF 90-day volatility (%) Indexed, 1.1.13 = 100 30 250 200 20 150 10 100 50 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 1Q1
Slide 15: Corporate Center
Corporate Center Improved results across all three Corporate Center units 1Q14 2Q14 3Q14 4Q14 1Q15 Profit Corporate Center PBT negative CHF 340 million before (340) Losses reduced due to improved results in all three Corporate Center (458) tax (501) units, mainly due to improved operating income i
Slide 16: Corporate Center cost reductions
Corporate Center cost reductions ~CHF 0.8 billion net cost reductions using March 2015 annualized exit rate Cumulative annualized net cost reduction CHF billion Lower net cost reduction Annualized incremental due to exit-rate normalization, Target CHF 1.4 billion net cost net cost reduction in 1Q1
Slide 17: Swiss SRB Basel III capital and leverage ratios
Swiss SRB Basel III capital and leverage ratios Fully applied Swiss SRB leverage ratio 4.6% Basel III CET1 capital ratio (fully applied) Swiss SRB leverage ratio (fully applied) CHF billion CHF billion 13.7% 13.4% 13.7% 13.2% 13.5% CET1 Leverage capital ratio 4.6% ratio 3.8% 4.2% 4.2% 4.1% 1Q14 2Q14
Slide 18: The world's leading wealth management franchise
The world's leading wealth management franchise Superior growth prospects and strong track record Invested assets Operating income Profit before tax CHF trillion CHF billion CHF billion +10% CAGR +7% CAGR +16% CAGR 2.0 3.9 1.1 3.5 3.6 1.7 1.8 3.2 0.9 0.9 1.5 1.0 2.1 0.7 0.9 0.9 1.9 1.9 1.8 0.9 WM 0.
Slide 19: UBS – a unique and attractive investment proposition
UBS – a unique and attractive investment proposition UBS is the world's largest wealth manager1 • Unique global footprint provides exposure to both the world's largest and fastest growing global wealth pools • Leading position across the attractive HNW and UHNW client segments The world's leading •
Slide 20: Appendix
Appendix a UBS
Slide 21: IFRS equity attributable to UBS Group AG shareholders
IFRS equity attributable to UBS Group AG shareholders Equity attributable to UBS Group AG shareholders CHF 52 billion as of 31.3.15 QoQ movement CHF million, except for per share figures in CHF 31.12.14 31.3.15 Total book value per share: 13.94 +2.8% 14.33 Tangible book value per share: 12.14 +3.7%
Slide 22: Swiss SRB Basel III capital and ratios
Swiss SRB Basel III capital and ratios 1Q15 fully applied Basel III CET1 capital ratio 13.7% Fully applied Phase-in 25.5% 25.9% 22.7% 5.9% T2 20.6% 18.9% 4.6% T2 Low-trigger 1.4% AT1 16.8% 1.0% AT1 Low-trigger 0.4% T2 High-trigger Ratio 0.8% AT1 High-trigger 17.9% 19.4% 18.6% 18.6% CET1 13.2% 13.4%
Slide 23: Swiss SRB leverage ratio
Swiss SRB leverage ratio 1Q15 fully applied Swiss SRB leverage ratio 4.6% Fully applied Phase-in 5.4% 5.6% 5.0% 4.6% 1.1% T2 4.1% 1.0% T2 Low-trigger 0.3% AT1 3.8% 0.2% AT1 Low-trigger 0.1% T2 High-trigger Ratio 0.2% AT1 High-trigger 4.1% 4.3% 4.2% 4.2% CET1 3.0% 2.9% 3.0% 3.0% CET1 CHF billion 1Q14
Slide 24: LRD: Swiss SRB vs. BIS Basel III rules
LRD: Swiss SRB vs. BIS Basel III rules We expect the net difference to decrease by year-end 2015, as we adjust our exposures to new regulation LRD (CHF billion) Description of changes Swiss SRB LRD Fully applied 973 Inclusion of net notionals for protection sold through Spot, 31.3.15 credit deriva
Slide 25: Breakdown of changes in RWA
Breakdown of changes in RWA By type By business division CHF billion CHF billion 216 31.12.14 216 31.12.14 Non-core and Legacy Portfolio1 Methodology/model-driven • CHF 0.8 billion increase in operational risk RWA related to AMA • CHF 2.0 billion increase in operational risk RWA due to (0) model par
Slide 26: Strong balance sheet, funding and liquidity position
Strong balance sheet, funding and liquidity position Asset funding1 31.3.15, CHF billion Due to banks (10) Cash, balances with central Short-term debt issued (23) banks and due from banks 82 Trading portfolio liabilities (30) Financial investments available-for-sale 71 Cash collateral on securities
Slide 27: Corporate Center cost reductions
Corporate Center cost reductions ~CHF 0.8 billion net cost reduction as per March 2015 exit rate 7.9 Litigation 7.9 Services & provisions1 0.2 7.8 ~CHF 0.8 billion 0.5 Group ALM Temporary 0.2 (0.1) (<0.1) (0.2) Normalization, incl. seasonality annualized regulatory demand2 0.6 (0.1) (<0.1) <0.1 7.2
Slide 28: Group and business division targets
Group and business division targets Ranges for sustainable performance over the cycle1 Business divisions Net new money growth rate 3-5% Wealth Management Adjusted cost/income ratio 55-65% 10-15% annual adjusted pre-tax profit growth Wealth Management Net new money growth rate 2-4% for combined busi
Slide 29: Regional performance – 1Q15
Regional performance – 1Q151 Corporate Center CHF billion Americas Asia Pacific EMEA² Switzerland Total and global³ 4Q14 1Q15 4Q14 1Q15 4Q14 1Q15 4Q14 1Q15 4Q14 1Q15 4Q14 1Q15 WM 0.1 0.1 0.5 0.6 1.0 1.0 0.4 0.4 (0.0) - 2.0 2.1 WMA 1.9 1.8 - - - - - - - - 1.9 1.8 R&C - - - - - - 0.9 1.0 - - 0.9 1.0 O
Slide 30: Adjusted results
Adjusted results Adjus ting items Bus ines s divis ion / Corporate Center 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 CHF million Operating income as reported (Group) 7,775 7,389 6,261 6,307 7,258 7,147 6,876 6,746 8,841 Of which: Gain on sale of a subsidiary Wealth Management 141 Gain on sale of G
Slide 31: 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 the previous slide, to the extent applicable, on a Group and business division level. Adjusted results are a non-GAAP financial measure as