Slide 1: Third quarter 2016 results
Third quarter 2016 results October 28, 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: 3Q16 results
3Q16 results Strong performance with adjusted PBT CHF 1.3 billion, up 33% YoY Group Net profit attributable to shareholders CHF 827 million, diluted EPS CHF 0.22 Reported profit before tax (PBT) CHF 877 million, up 11% YoY, adjusted PBT CHF 1,300 million 10.1% annualized adjusted return on tangible
Slide 4: UBS Group AG results (consolidated)
UBS Group AG results (consolidated) CHF million, except where indicated 3Q15 4Q15 1Q16 2Q16 3Q16 Total operating income 7,170 6,775 6,833 7,404 7,029 Total operating expenses1 6,382 6,541 5,855 5,915 6,152 Profit before tax as reported 788 234 978 1,489 877 of which: net restructuring expenses (298)
Slide 5: Wealth Management
Wealth Management Solid performance; PBT CHF 643 million with costs down 6% YoY Operating 2,031 2,004 2,106 2,024 1,943 1,897 Operating income CHF 1,809 million 1,885 1,817 1,809 income 479 436 589 459 366 364 402 347 334 Transaction-based income down YoY to lowest level 569 583 560 568 600 598 57
Slide 6: Wealth Management
Wealth Management Strong net new money CHF 9.4 billion; net margin up 1 bp QoQ 6.5% Net new 5.8% 4.2% NNM CHF 9.4 billion driven by strong net inflows in money1 3.5% 4.0% 2.6% APAC and Europe, which more than offset emerging 1.2% 1.5% market cross-border asset outflows; year-to-date Annualized gro
Slide 7: Wealth Management
Wealth Management Strong net new money in Europe and Asia Pacific Europe Asia Pacific Switzerland Emerging markets of which: UHNW Net new 12.9% money1 10.2% 10.5% 6.3% 7.5% Annualized 4.6% 5.1% 3.8% 5.2% 3.0% 3.2% growth rate 0.8% 1.8% 2.8% 0.5% 2.1% 2.5% 1.3% 1.8% 1.8% (0.6%) (0.3%) (2.4%) (6.1%) (
Slide 8: Wealth Management Americas
Wealth Management Americas Strong quarter with record PBT on record operating income Operating income USD 1,988 million Operating 1,919 1,924 1,901 1,947 1,931 1,874 1,899 1,924 1,988 441 448 432 425 381 376 361 369 372 Transaction-based income decreased YoY due to income 276 280 277 301 311 326 3
Slide 9: Wealth Management Americas
Wealth Management Americas Record managed account penetration on record invested assets 6.8% Net new 5.3% money NNM USD 0.8 billion driven by net inflows from 1.9% 2.2% 1.9% ~1.2% ~2.1% financial advisors employed with UBS for more than one Annualized year; year-to-date annualized NNM growth rate
Slide 10: Wealth Management Americas
Wealth Management Americas Increased revenue and invested assets per advisor, remaining industry-leading Invested assets and FA productivity Net interest income and lending Annualized revenue per FA (USD thousand) Net interest income (USD million) Invested assets per FA (USD million) Credit loss (ex
Slide 11: Personal & Corporate Banking
Personal & Corporate Banking Highest PBT since 4Q08; 3.5% annualized NNBV growth for personal banking 958 913 979 983 974 Operating income CHF 974 million Operating 952 964 915 963 income 267 273 284 241 238 196 244 254 274 Transaction-based income up YoY due to higher fees from WM for net client
Slide 12: Asset Management
Asset Management PBT CHF 138 million with performance fees up YoY and QoQ Operating 489 497 511 476 502 512 468 483 481 Operating income CHF 481 million 27 34 68 20 23 44 23 24 44 income Performance fees increased YoY mainly driven by O'Connor CHF million 462 463 443 456 479 468 446 458 437 Net
Slide 13: Investment Bank
Investment Bank Return on attributed equity of 18%, with strong FRC performance 2,657 Operating 2,344 Operating income CHF 1,796 million 2,088 income 1,969 1,919 779 822 1,721 1,879 2,000 1,796 CCS revenues down 25% YoY as lower revenues in 736 710 474 668 ECM, DCM, Financing Solutions and Risk Ma
Slide 14: Corporate Center
Corporate Center Profit before tax 3Q15 4Q15 1Q16 2Q16 3Q16 (267) (417) (586) (654) (1,174) Corporate Center total (CHF million) Services Corporate Center results by unit (CHF million) Operating income (38) (54) (55) (42) (66) Services operating expenses before Operating expenses 217 272 156 170 1
Slide 15: Interest rate sensitivity
Interest rate sensitivity Balanced currency exposure partially mitigates expected impact of implied forwards Net interest income (NII) impact1 CHF billion Estimated incremental annual NII vs. 9M16 annualized, 2017 2018 2019 based on implied forward interest rates as of 30.9.16 WM ~0.0 ~(0.2) ~(0.2)
Slide 16: Cost reduction
Cost reduction Achieved CHF 1.5 billion net cost reductions despite higher permanent regulatory expenses Cost base and net cost reductions CHF billion Achieved CHF 1.5 billion net cost reductions based on Corporate Center Corporate Center and business Sep-2016 annualized exit rate within scope of th
Slide 17: Cost reduction
Cost reduction Corporate Center cost savings have benefited the business divisions Corporate Center costs excl. litigation1 Adjusted Corporate Center Services CHF billion allocations to business divisions % of 9M16 total IB 7% WM 9.6 Net restructuring P&C 9.1 16% expenses 0.7 WMA 33% Temporary regul
Slide 18: Net tax expense and deferred tax assets
Net tax expense and deferred tax assets Net additional recognized DTA of CHF 424 million in respect of future years' profits 3Q16 net tax expense of CHF 49 million1 Tax loss DTAs2,3 CHF million CHF billion, 30.9.16 Net deferred tax expense/(benefit) US UK CH Other Total (424) with respect to net add
Slide 19: Going concern capital and leverage ratios
Going concern capital and leverage ratios 14.0% fully applied Basel III CET1 ratio and 3.45% fully applied CET1 leverage ratio Swiss SRB Basel III capital ratio1,2 Swiss SRB Basel III leverage ratio2 Fully applied, CHF billion CHF billion AT1 Phase-in3 Fully applied, rules as of 1.1.20 CET1 (AT1 + T
Slide 20: Appendix
Appendix 3% UBS
Slide 21: Group and business division targets and expectations
Group and business division targets and expectations Ranges for sustainable performance over the cycle 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 m
Slide 22: Capital requirements under Swiss SRB
Capital requirements under Swiss SRB UBS leverage capital ratio balances vs. revised Swiss SRB UBS position as of 30.9.161 Phase-in leverage ratio requirements Meeting 1.1.20 requirements TLAC-eligible debt • 1.95% (CHF 17.1 billion) existing UBS Group AG TLAC bonds3 Existing UBS AG • 2.96% (CHF 25.
Slide 23: Corporate Center – Non-core and Legacy Portfolio
Corporate Center – Non-core and Legacy Portfolio RWA LRD2 and RWA by category CHF billion CHF billion, 30.9.16 103 Operational risk1 Rates 12.6 4.3 14 Credit and market risk Credit 2.8 0.5 Securitizations 1.5 1.1 32 31 32 31 APS/ARS 2.5 0.8 88 20 19 Muni swaps and options 2.4 0.5 21 22 22 10 Other 3
Slide 24: Regional performance
Regional performance CHF billion Americas Asia Pacific EMEA Switzerland Global Total 3Q15 3Q16 3Q15 3Q16 3Q15 3Q16 3Q15 3Q16 3Q15 3Q16 3Q15 3Q16 WM 0.1 0.1 0.5 0.5 0.9 0.9 0.4 0.4 0.0 (0.0) 1.9 1.8 WMA 1.9 1.9 - - - - - - - - 1.9 1.9 P&C - - - - - - 1.0 1.0 - - 1.0 1.0 Operating AM 0.2 0.2 0.1 0.1 0
Slide 25: Adjusted results
Adjusted results Adjusting items FY14 FY15 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 CHF million Operating income as reported (Group) 28,027 30,605 6,876 6,746 8,841 7,818 7,170 6,775 6,833 7,404 7,029 of which: Gains/(losses) on sales of subsidiaries and businesses WM 169 141 56 (28) (23) AM 56
Slide 26: 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