UBS Core MSCI Japan UCITS ETF JPY Ukdis- Distribution · LSE:0E1J
UBS Core MSCI Japan UCITS ETF JPY Ukdis- Distribution — UBS Group — Debt Investor Presentation (July 2015)
37 slides from UBS Core MSCI Japan UCITS ETF JPY Ukdis- Distribution's debt investor presentation, Jul 28, 2015
Slide 1: Second quarter 2015 results
Second quarter 2015 results Fixed income investor presentation July 28, 2015
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This report 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 strategic in
Slide 3: 2Q15 highlights
2Q15 highlights 1H15 net profit CHF 3.2 billion, up 73% YoY; 1H15 12% annualized return on tangible equity1 Group Net profit attributable to UBS Group AG shareholders CHF 1,209 million, diluted EPS CHF 0.32 Reported profit before tax (PBT) CHF 1,759 million, adjusted PBT CHF 1,635 million Basel III
Slide 4: UBS Group AG results (consolidated)
UBS Group AG results (consolidated) CHF million 2Q14 3Q14 4Q14 1Q15 2Q15 2Q15 Total operating income 7,147 6,876 6,746 8,841 7,818 Total operating expenses 5,929 7,430 6,342 6,134 6,059 Profit before tax as reported 1,218 (554) 404 2,708 1,759 of which: own credit on financial liabilities designated
Slide 5: Wealth Management
Wealth Management PBT CHF 769 million, highest second quarter PBT since 2009 Operating 1,953 1,837 1,859 1,943 1,921 2,031 2,004 2,106 2,024 Operating income CHF 2,024 million income 505 406 423 542 472 479 436 589 459 Recurring net fee income increased, mainly reflecting 569 583 560 568 pricing m
Slide 6: Wealth Management Americas
Wealth Management Americas Record recurring net fee and total operating income 1,919 1,924 1,901 1,947 Operating 1,780 1,748 1,851 1,865 1,898 Operating income USD 1,947 million 472 464 441 448 432 425 income 507 433 476 276 280 277 301 Recurring net fee income increased on higher managed 286 276
Slide 7: Retail & Corporate
Retail & Corporate Highest second quarter PBT since 2010 and all KPIs within target range Operating 948 958 931 938 958 913 979 952 Operating income CHF 952 million 932 income 272 262 256 234 247 267 273 284 241 Net interest income decreased slightly on lower income from the investment of the Grou
Slide 8: Global Asset Management
Global Asset Management NNM CHF 8.3 billion1 with net inflows in all capabilities Operating 489 447 482 451 465 489 497 511 476 Operating income CHF 476 million 41 72 27 34 68 20 income 29 47 38 Net management fees increased, mainly in traditional investments and global real estate CHF million 449
Slide 9: Investment Bank
Investment Bank PBT CHF 617 million; continued strong performance in Equities Operating 2,657 Operating income CHF 2,344 million 2,344 2,189 2,200 2,225 income1 1,843 1,969 1,919 779 ICS Equities revenues increased 30% YoY with particular 773 1,668 768 822 strength in Derivatives and Financing Ser
Slide 10: Corporate Center
Corporate Center Significant reduction in Non-core and Legacy Portfolio LRD, down >40% YoY 2Q14 3Q14 4Q14 1Q15 2Q15 Profit before (442) (332) (514) tax (816) (1,164) Corporate Center total (CHF million) Corporate Center results by unit (CHF million) Services Operating income 4 9 (6) (4) (41) Opera
Slide 11: Capital and leverage ratios
Capital and leverage ratios Swiss SRB LRD reduced by CHF 33 billion to CHF 944 billion Swiss SRB Basel III CET1 capital ratio Leverage ratio Fully applied, CHF billion Fully applied, CHF billion Swiss SRB BIS Basel III 14.4% 13.5% 13.7% 13.4% 13.7% 4.2% 4.2% 4.6% 4.7% 4.1% 3.6% 3.4% of which: of whi
Slide 12: Capital strength is the foundation of our success
Capital strength is the foundation of our success We have the highest Basel III fully applied CET1 capital ratio among large global banks Swiss SRB Basel III fully applied capital Basel III fully applied capital – large global banks 30.6.15 Based on latest available disclosure European1 US2 21.2% 21
Slide 13: Swiss SRB Basel III capital and ratios
Swiss SRB Basel III capital and ratios 2Q15 fully applied Basel III CET1 capital ratio 14.4% Fully applied Phase-in 25.5% 25.9% 25.0% 20.6% 21.2% 5.8% T2 18.9% 4.6% T2 Low-trigger 0.9% AT1 1.0% AT1 Low-trigger 0.4% T2 High-trigger Ratio 0.8% AT1 High-trigger 19.4% 18.6% 18.2% 18.2% CET1 13.4% 13.7%
Slide 14: Swiss SRB leverage ratio
Swiss SRB leverage ratio 2Q15 fully applied Swiss SRB leverage ratio 4.7% Fully applied Phase-in 5.4% 5.6% 5.4% 4.7% 4.6% 1.1% T2 1.0% T2 Low-trigger 4.1% 0.2% AT1 0.2% AT1 Low-trigger 0.1% T2 High-trigger Ratio 0.2% AT1 High-trigger 4.3% 4.2% 4.1% 4.1% CET1 2.9% 3.0% 3.2% 3.2% CET1 CHF billion 4Q14
Slide 15: Deferred tax assets
Deferred tax assets We expect to revalue DTA balances in 3Q15 DTA revaluation Illustrative example 3Q15 DTA revaluation1 based upon: Updated business plan forecasts and extended profit recognition period2 i. a reassessment of future profitability taking 2014 6 years into account updated business p
Slide 16: Strong balance sheet, funding and liquidity position
Strong balance sheet, funding and liquidity position Asset funding1 30.6.15, CHF billion Due to banks (13) Cash, balances with central Short-term debt issued (31) banks and due from banks 98 Financial investments Trading portfolio liabilities (32) available-for-sale 67 Cash collateral on securities
Slide 17: Robust liquidity profile
Robust liquidity profile Our funding diversification and global scope help protect our liquidity position in the event of a crisis Liquidity coverage ratio (LCR) 1 Our contingent funding sources include a large, multi-currency portfolio of unencumbered, (CHF billion) Average 2Q15 high-quality, liq
Slide 18: Stable and diversified funding sources
Stable and diversified funding sources Funding plan is regularly reviewed and adapted to changes in requirements Short-term debt Repos and securities lending Funding by Interbank 4% Pro-forma net stable funding ratio 2% source Cash margin 5% (CHF billion) 30.6.15 30.6.15 11% Available stable funding
Slide 19: Long-term debt – contractual maturity profile
Long-term debt – contractual maturity profile Amount of long-term debt maturing by period of maturity CHF billion, 30.6.15 13.8 0.9 0.7 10.3 8.7 3.5 1.0 1.2 5.8 5.5 5.7 1.3 4.7 4.0 0.6 0.6 3.3 3.3 2.4 9.4 2.0 8.7 2.2 3.5 0.9 1.7 0.2 3.7 0.5 5.1 1.1 0.4 3.8 0.8 3.0 3.3 0.4 1.2 2.7 1.2 1.8 1.5 1.4 0.8
Slide 20: Substantial and growing capital cushion
Substantial and growing capital cushion Relevant Capital Ratio including high trigger instruments Excess CET1 capital before reaching 7.0% level excluding high trigger instruments (CHF bn) Excess CET1 and high trigger instruments before reaching 5.125% level (CHF bn) Basel III phase-in CET1 20.1% 19
Slide 21: Implementing our target group structure
Implementing our target group structure Significant progress managing regulatory change Capital and dividends Key actions and milestones in improving our resolvability Capital 2014 2015 2016 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Met current fully applied 2019 estimated capital requirements Completion
Slide 22: The new legal structure of UBS Group
The new legal structure of UBS Group UBS Group AG as our holding company meets Single Point of Entry requirements and allows for issuance of bail-in eligible debt Our R&C and WM businesses booked in Switzerland were transferred to UBS Switzerland AG on June 14 UBS Switzerland AG and UBS AG are
Slide 23: Overview of resolution strategy (FINMA)
Overview of resolution strategy (FINMA) Point of non-viability Post-Resolution Resolution Liquidation conducted by FINMA in close cooperation with foreign Refill CoCos regulators; bank management suspended Restructuring Recapitalization Management changes Conversion of low strike Cocos to common equ
Slide 24: Loss absorption along the CET1 / RWA ratio
Loss absorption along the CET1 / RWA ratio Loss Absorption along the CET1 / RWA ratio Article 48 BIO-FINMA provides guidance with respect to bail-in-able debt: Common equity Tier 1 i. sufficient debt needs to be converted into equity to ensure that, without doubt, the firm complies with the capital
Slide 25: Credit Ratings – UBS Group and UBS AG
Credit Ratings – UBS Group and UBS AG Each of these ratings reflects only the view of the applicable rating agency at the time the rating was issued, and any explanation of the significance of a rating may be obtained only from the rating agency. 24
Slide 26: Credit Ratings – UBS Switzerland and UBS Limited
Credit Ratings – UBS Switzerland and UBS Limited Each of these ratings reflects only the view of the applicable rating agency at the time the rating was issued, and any explanation of the significance of a rating may be obtained only from the rating agency. 25
Slide 27: UBS – a unique and attractive investment proposition
UBS – a unique and attractive investment proposition UBS is the world's largest and fastest growing 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 Th
Slide 28: Appendix
Appendix s% UBS
Slide 29: The world's leading wealth management franchise
The world's leading wealth management franchise UBS is the world's largest and fastest growing wealth manager1 Invested assets Operating income Profit before tax CHF trillion CHF billion CHF billion +8% CAGR +7% CAGR +14% CAGR 1.9 7.8 2.1 1.8 7.1 7.2 1.7 1.5 6.3 1.7 0.9 1.5 0.9 4.1 1.4 0.9 3.9 3.9 W
Slide 30: Corporate Center cost reductions
Corporate Center cost reductions ~CHF 0.9 billion net cost reductions using June 2015 annualized exit rate Cumulative annualized net cost reduction1,2 CHF billion CHF 1.4 billion CHF 1.4 billion CHF 0.9 billion (64%) achieved of CHF 0.8 billion (57%) achieved CHF 1.4 billion year-end 2015 target of
Slide 31: Breakdown of changes in RWA
Breakdown of changes in RWA By type By business division CHF billion CHF billion 216 31.3.15 216 31.3.15 Non-core and Legacy Portfolio Methodology/model-driven • CHF 3 billion decrease in credit risk RWA primarily due to lower • CHF 4.2 billion decrease in incremental operational risk (4) derivative
Slide 32: Interest rate sensitivities
Interest rate sensitivities1 Our revenues are positively geared to rising interest rates Interest rate scenarios: estimated impact on NII, OCI and regulatory capital CHF billion Annual incremental OCI OCI impact on net interest income2 impact3,4 regulatory capital4 A Steepener (+20 bps to +200 bps)
Slide 33: IFRS equity attributable to UBS Group AG shareholders
IFRS equity attributable to UBS Group AG shareholders Equity attributable to UBS Group AG shareholders CHF 50.2 billion QoQ movement CHF million, except for per share figures in CHF 31.3.15 30.6.15 Total book value per share: 14.33 (4.3%) 13.71 Tangible book value per share: 12.59 (4.4%) 12.04 1,209
Slide 34: 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 35: Regional performance – 2Q15
Regional performance – 2Q151 CHF billion Americas Asia Pacific EMEA² Switzerland Global³ Total 1Q15 2Q15 1Q15 2Q15 1Q15 2Q15 1Q15 2Q15 1Q15 2Q15 1Q15 2Q15 WM 0.1 0.1 0.6 0.6 1.0 0.9 0.4 0.4 - 0.0 2.1 2.0 WMA 1.8 1.8 - - - - - - - - 1.8 1.8 R&C - - - - - - 1.0 1.0 - - 1.0 1.0 Operating Global AM 0.2
Slide 36: Adjusted results
Adjusted results Adjus ting items 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 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 7,818 Of which: Gain on sale of a subsidiary Wealth Management 141 Gain on sale of the Belgian domestic WM busine
Slide 37: 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