UBS Group AG · SIX:UBSG
UBS — Morgan Stanley conference 2016
19 slides from UBS's conference presentation, Mar 16, 2016
Slide 1: Morgan Stanley conference
Morgan Stanley conference Sergio P. Ermotti Group Chief Executive Officer March 16, 2016
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: We have successfully changed our model
We have successfully changed our model Achieved strategic targets announced in 2011/2012 Reduced Achieved our Transformed our risk-weighted assets capital targets Investment Bank Basel III RWA (fully applied), CHF billion Basel III CET1 ratio (fully applied) Investment Bank pre-tax RoAE1 (45%) +780
Slide 4: Balanced businesses and global diversification
Balanced businesses and global diversification Leading wealth management businesses and Swiss universal bank PBT by business division PBT by region FY15 PBT, excluding Corporate Center, CHF billion FY15 PBT, excluding items managed globally, CHF billion Investment Wealth Bank management 2.3 business
Slide 5: Strong capital generation throughout our transformation
Strong capital generation throughout our transformation CHF 20 billion capital generation FY12-15 pre dividend payments and litigation expenses1 FY12-15 cumulative 8 litigation expenses1 FY12-15 cumulative 7 dividend payments + CHF 5 billion CET1 capital 29 29 30 CET1 capital Fully applied, 25 FY12-
Slide 6: Challenging conditions have continued into 2016
Challenging conditions have continued into 2016 Divergence between expected and realized rates have reduced our earnings capacity Expected rates Realized rates 3M interbank rates, implied forwards as of October 2012 3M interbank rates 1.5% 1.5% EUR 1.0% USD 1.0% USD 0.5% 0.5% CHF 0.0% 0.0% EUR (0.5%
Slide 7: WM and WMA invested assets composition
WM and WMA invested assets composition Client activity affected by market volatility and invested assets by lower market levels Wealth Management Wealth Management Americas % of CHF 947 billion total IA, 31.12.15 % of USD 1,033 billion total IA, 31.12.15 100% 100% 100% Other1,2 9% Other1 14% 17% Oth
Slide 8: World's leading wealth management franchise
World's leading wealth management franchise Low revenue volatility with profit growth and NNM inflows Revenues1 WM + WMA 3.6 3.6 3.6 3.8 3.9 3.9 3.8 3.8 3.8 Ø 3.6 CHF billion 3.3 3.3 3.5 3.4 3.5 3.2 3.2 Total Ø 2.7 • Low revenue volatility Recurring of which: 2.9 3.0 2.9 3.0 3.1 3.0 recurring 2.2 2.
Slide 9: Personal & Corporate Banking
Personal & Corporate Banking Continued success in Switzerland's leading bank Leading coverage High-quality selective loan growth Net new business volume growth for personal banking, % with ~300 branches UBS branch locations Target range 2.3% 2.4% 1.9% 1-4% Improving net interest margin Net interest
Slide 10: Investment Bank
Investment Bank Strategic re-alignment completed – focused on excelling in targeted segments • One of the world's leading equities franchises Investor Client Return on average attributed equity Services – • Top tier Cash and Derivatives franchises, with one of the most Excluding charges for provisio
Slide 11: Investments in technology
Investments in technology We invested ~CHF 2 billion in technology FY151 to improve effectiveness and efficiency, provide the best offerings to our clients and to safeguard our security Investment projects Infrastructure Complexity Business Innovation Challenges modernization reduction enablement 1
Slide 12: Corporate center cost reductions
Corporate center cost reductions We have reduced expenses by CHF 1.9 billion1 since FY11 and are executing further reductions Corporate Center operating expenses Corporate Center – Services adjusted operating expenses before allocations to business divisions and Corporate Center – Non-core and Legac
Slide 13: Draft proposal for revised Swiss SRB capital requirements
Draft proposal for revised Swiss SRB capital requirements We are well positioned to meet the proposed requirements 2.0% 2.0%1 concern • Bail-in bonds: We expect to replace maturing UBS AG Gone 3.8% Public debt issued out of UBS AG public debt with TLAC-eligible bonds from UBS Group AG 3.0% • AT1: We
Slide 14: Delivering attractive capital returns to our shareholders
Delivering attractive capital returns to our shareholders Dividend per share to be proposed for FY15: CHF 0.60 ordinary and CHF 0.25 special dividend Total capital return per share CHF per share Special 0.25 dividend 0.251 Ordinary 0.50 0.60 • We are committed to a total dividend 0.25 pay-out ratio
Slide 15: Continued focus on execution …
Continued focus on execution … What we have delivered Management priorities ✓ Successfully executed the transformation of UBS Demonstrate sustainability of our business model Made substantial progress ✓ in reducing costs and achieving operational efficiency Complete on-going cost reduction programs
Slide 16: Appendix
Appendix
Slide 17: Group and business division targets and expectations
Group and business division targets and expectations Ranges for sustainable performance over the cycle1 Net new money growth rate 3-5% Wealth Management Adjusted cost/income ratio 55-65% 10-15% annual adjusted pre-tax profit growth for combined businesses through the cycle Wealth Management Net new
Slide 18: Oil and gas exposures
Oil and gas exposures As of 31 December 2015 our total net banking products exposure to the oil and gas sector, mainly in North America, was CHF 6.1 billion, including both funded and unfunded exposures, of which CHF 5.9 billion was recorded within the Investment Bank and the remaining exposure with
Slide 19: Important information related to this presentation
Important information related to this presentation Use of adjusted numbers Adjusted results are a non-GAAP financial measure as defined by SEC regulations. Refer to page 6 of the 4Q15 earnings release which is available in the section "Quarterly reporting" at www.ubs.com/investors for an overview of