Ubs Group Ag · SIX:UBSG
Ubs — Q1 2018 Earnings Presentation
29 slides from Ubs's earnings presentation, Apr 23, 2018
Slide 1: First quarter 2018 results
First quarter 2018 results April 23, 2018
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentations 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 strat
Slide 3: Net profit +19% YoY to 1.5bn
Net profit +19% YoY to 1.5bn CHF / USD Reported PBT 1Q18 vs. 1Q17 Strong performance +17% / +24% • Reported PBT 1,973m, +17% YoY 2.0 • Adjusted PBT 1,876m, (3)% YoY • Net profit 1,514m, +19% YoY +20% Strong capital position 1.1 • CET1 capital ratio 13.1% • CET1 leverage ratio 3.76% +23% • Total loss
Slide 4: Very strong underlying operating performance
Very strong underlying operating performance CHF / USD +20% / +27% +6% 225 435 116 1,973 (123) (269) (101) 1,690 +2% 1Q17 Operating Adjusted Adjusted Restructuring Pension CC-GALM 1Q18 PBT income excl. operating technology costs1 fund operating PBT CC-GALM expenses costs credit1 income excl. technol
Slide 5: 1Q18 highlights and strategic priorities
1Q18 highlights and strategic priorities Demonstrating the strength of our diversified business CHF / USD Continued strong momentum across our businesses • GWM: Capturing growth with PBT +7% / +14% YoY; record PBT in the Americas3 and in APAC • P&C: Further growth in transaction and recurring net fe
Slide 6: Global WM – Unique strategic growth drivers
Global WM – Unique strategic growth drivers Double-digit USD PBT growth in the Americas, APAC and Global UHNW USD Americas APAC Global UHNW1 +19% 400 +14% 337 322 283 +33% 238 179 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 Numbers in USDm and adjusted unless otherwise indicated; refer to slide 28 for details on
Slide 7: Global WM – driving profitable growth
Global WM – driving profitable growth USD 14% 10-15% 2-4% PBT growth 65-75% NNM growth C/I ratio 76% 76% 74% 12% 3% 73% 2% 2% 2% 6% 7% (1%) FY15 FY16 FY17 1Q18 FY18 FY19 FY20 FY15 FY16 FY17 1Q18 FY18 FY19 FY20 FY15 FY16 FY17 1Q18 FY18 FY19 FY20 First 80 days Management priorities 2018-2020 • Deliver
Slide 8: UBS Group AG results (consolidated)
UBS Group AG results (consolidated) CHFm, except where indicated FY17 1Q17 2Q17 3Q17 4Q17 1Q18 Total operating income 29,067 7,532 7,269 7,145 7,122 7,698 Total operating expenses 23,800 5,842 5,767 5,924 6,266 5,725 Profit before tax as reported 5,268 1,690 1,502 1,221 855 1,973 of which: net restr
Slide 9: Global Wealth Management
Global Wealth Management Strong PBT growth, up 14% in USD CHF / USD Strong recurring fee momentum Invested assets CHFm bn +6% / +12% 93 2,302 1Q17 PBT 1,050 43 33.1% 2,166 mandates¹ +140bps Transaction-based 6 +5% / +12% YoY income operating 1Q17 NNM Market, 1Q18 income FX and other Net interest 50
Slide 10: Global Wealth Management – regional performance
Global Wealth Management – regional performance Americas1 (CHF / USD) EMEA Asia Pacific Switzerland 6,956 advisors 1,764 advisors 1,077 advisors 731 advisors PBT contribution2 1,126m 33% 377 26% 297 27% 303 16% 182 400 Cost/income ratio 84 84 85 67 68 64 67 56 57 83 66 67 61 56 83 64 54 55 54 54 73%
Slide 11: Personal & Corporate Banking
Personal & Corporate Banking Continued strong growth in transaction and recurring net fee income and NNBV 157 157 159 Net interest 154 155 margin bps 437 436 428 379 393 Operating income (1)% Profit Transaction-based income +8% on higher referral fees before tax from GWM and FX transaction fees m Ne
Slide 12: Asset Management
Asset Management Continued strong net new money 153 123 133 116 108 Profit before tax m Operating income (2)% 450 479 494 469 441 26 36 38 27 14 Net management fees +4m driven by higher invested Operating assets, partly offset by sale of fund administration 423 443 456 442 427 business in 4Q17 incom
Slide 13: Investment Bank
Investment Bank Strong PBT growth, up 20% in USD; 25% return on attributed equity CHF / USD +13% 558 629 419 352 Profit 168 Operating income +10% / +17% before tax CCS +15% / +22% with strong ECM, DCM and Advisory m 2,098 2,308 1,919 1,800 1,697 ICS +8% / +15% 718 825 732 720 643 Operating 452 293 2
Slide 14: Corporate Center
Corporate Center Profit before tax 1Q17 2Q17 3Q17 4Q17 1Q18 (234) (269) (380) (479) Corporate Center total (m) (607) Corporate Center results by unit (m) Services Operating income (18) (20) (70) (46) (38) Operating expenses 189 117 322 114 110 o/w before allocations 1,983 1,912 2,122 2,072 2,047 o/w
Slide 15: Workforce management
Workforce management Insourcing roles to improve efficiency and effectiveness UBS Group 1Q18 vs. 3Q17 Corporate Center – Services 1Q18 vs. 3Q17 Headcount Headcount 87,146 86,743 86,564 (582) 26,350 25,490 24,027 (2,323) 48,892 48,570 48,072 (820) 23,749 22,947 21,506 (2,243) 60,796 61,253 62,537 +1,
Slide 16: Corporate Center – Group ALM
Corporate Center – Group ALM Revenues affected by adverse market conditions 1Q17 1Q18 YoY Operating income 65 (204) (269) o/w business division-aligned risk management 209 130 (79) Fully allocated o/w capital investment and issuance (35) (69) (34) o/w group structural risk management (43) (249) (206
Slide 17: RWA 1Q18
RWA 1Q18 RWA mostly driven by significant market volatility, regulatory-related and client demand 7 254 (1) Driven by VaR and stressed VaR 43 IB: 3 Expected regulatory- 6 GWM: 2 related RWA increases of ~11bn for the Credit risk: 31 remainder of 2018, of which ~4bn in 2Q18 Market risk: 32 237 31.12.
Slide 18: Capital and leverage ratios
Capital and leverage ratios Operating at ~13% CET1 capital ratio and ~3.7% CET1 leverage ratio Loss-absorbing capacity Capital ratio Leverage ratio bn % % Total loss- 79.2 1.1.20 1.1.20 absorbing 33.2 Capital ratio Leverage ratio capacity (TLAC) 73.6 31.2 requirements requirements TLAC requirement w
Slide 19: Appendix
Appendix %% UBS
Slide 20: Global Wealth Management
Global Wealth Management PBT up 14% in USD; record PBT in APAC and the Americas1 CHF / USD 20 19 Net 19 19 margin 17 PBT +7% / +14% with record PBT in the Americas1 and bps 1,050 1,013 1,041 1,126 APAC 976 Profit before tax Operating income +5% / +12% m 3,979 3,959 3,967 4,068 4,195 Recurring net fe
Slide 21: Invested assets composition
Invested assets composition Global Wealth Management Asset Management % % Hedge Fund Other1 11 10 Other Businesses, 12 Other 15 2 GBP Real Estate & Private Markets 6 GBP 8 CHF Multi Assets & 16 Mutual funds 30 11 EUR Solutions 14 CHF Cash & MM Fixed Income 30 24 EUR 12 instruments2 Bonds 14 69 USD 4
Slide 22: Revenue and expenses currency mix
Revenue and expenses currency mix Operating income Operating expenses % % 2 4 7 Other 11 13 15 15 Other 1 22 6 21 25 EUR 9 EUR 4 9 12 4 51 3 12 32 36 USD 55 57 41 94 2 USD 71 86 60 30 42 37 31 CHF 26 21 17 CHF 10 5 GWM P&C AM IB Group GWM P&C AM IB Group Currency distribution based on EUR/CHF 1.17 a
Slide 23: 3y US Treasury yield vs. overnight index swap rate
3y US Treasury yield vs. overnight index swap rate CC – Group ALM results affected by mark-to-market moves in hedged HQLA vs. OIS 1Q18: +4bps 25 bps 1Q17: (14)bps 20 bps 15 bps 10 bps 5 bps 0 bps (5) bps Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Source: Reuters Eikon 22
Slide 24: CET1 capital and IFRS equity
CET1 capital and IFRS equity 3.6 +0.5 0.0 0.2 2.0 0.0 (0.6) (0.1) (0.2) (0.1) 33.2 (0.1) 32.7 (0.8)4 (1.7)4 31.3 (0.3) CET1 capital bn 3.6 (0.6) Current tax expense (3.1) Deferred tax expense 53.7 0.2 +0.0 IFRS equity (3.8) (0.2) 2.0 attributable to (0.4) shareholders 51.2 (0.5) 0.1 51.26 (0.4) bn (
Slide 25: Swiss SRB leverage ratio requirements
Swiss SRB leverage ratio requirements UBS leverage ratio balance¹ 1.1.20 requirements % % TLAC-eligible debt 3.07% (27.1bn) UBS Group AG TLAC bonds2 2.0 5% gone concern requirement subject to a rebate of up to 2% of LRD based on improved resolvability 3.07 – FINMA granted a rebate on the gone co
Slide 26: Regional performance
Regional performance Americas Asia Pacific EMEA Switzerland Global Total 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 GWM 2.1 2.2 0.6 0.7 0.9 0.9 0.4 0.4 (0.0) (0.0) 4.0 4.2 P&C - - - - - - 1.0 0.9 - - 1.0 0.9 Operating AM 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 (0.0) (0.0) 0.4 0.4 income IB
Slide 27: Adjusted results
Adjusted results Adjusting items FY17 1Q17 2Q17 3Q17 4Q17 1Q18 m Operating income as reported (Group) 29,067 7,532 7,269 7,145 7,122 7,698 of which: Gains on sale of financial assets available for sale IB 136 107 29 Gains/(losses) on sales of subsidiaries and businesses AM 153 153 Net FX translation
Slide 28: Performance targets and capital guidance 2018–2020
Performance targets and capital guidance 2018–2020 Cost/income ratio1 Profitability & growth1 Capital & resource guidance Group <75% ~15% RoTE2 excl. DTAs ~13% fully applied CET1 capital ratio ~3.7% fully applied CET1 leverage ratio Global Wealth 65-75% 10-15% PBT growth3 Management 2-4% NNM growth
Slide 29: 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