Ubs Group Ag · SIX:UBSG
Ubs — UBS AG (Amna, Amnd, Amtr, Amub, BDCX, BDCZ, Cefd, DJCB, Esus, Fedl, HDLB, Ifed, Iwdl, Iwfl, Iwml, Mlpb) — Q2 2009 Earnings Presentation
28 slides from Ubs's earnings presentation, Aug 4, 2009
Slide 1: Second Quarter 2009 Results
Second Quarter 2009 Results Aug 4, 2009
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: Stabilized financial position
Stabilized financial position Capital protection Restoring profitability Reducing costs Strengthened Tier 1 capital ratio to 13.7%1 FINMA leverage ratio increased to 3.5% Adjusted pre-tax profit of CHF 1bn2 Improved operating results from prior quarter Continued to reduce fixed cost base and on trac
Slide 4: Group results
Group results 2Q08 1Q09 2Q09 Profit before tax1 (CHF m) (4'067) (1'547) (1'316) Net profit attributable to UBS shareholders (CHF m) (395) (1'975) (1'402) Diluted earnings per share (CHF) (0.16) (0.57) (0.39) Total assets (CHF bn) 2'080 1'861 1'600 Risk-weighted assets (CHF bn) 325 278 248 Tier 1 rat
Slide 5: Performance by division
Performance by division (CHF m) WM&SB WMA Global AM IB CC UBS Income 2'934 1'367 530 2'114 425 7'371 Credit loss (expense) / recovery (20) 1 (369) (388) Own credit1 (1'213) (1'213) Total operating income 2'914 1'368 530 532 425 5'770 Personnel expenses 1'358 1'154 309 1'474 284 4'578 Non-personnel e
Slide 6: Revenues
Revenues (CHF m) 4'241 1'321 (1'291) 1'182 5'453 651 6'104 4'502 1'302 1'006 560 7'371 (1'213) 6'158 Net fee and commission income Net income from interest margin businesses Total income excl. own credit Own credit 1Q09 2Q09 Total income2 Net income from trading businesses excl. own credit Net incom
Slide 7: Headcount
Headcount 2Q09 as reported (FTE) Yet to come in 2H09 (FTE) Communicated over 8'000 job cuts in 2Q09 A significant proportion of these job losses will only be reflected in our disclosures in the coming quarters Target of 67'000 expected to be reached in 2010, reflecting previously announced headcount
Slide 8: Expenses
Expenses (CHF m) Fixed costs run rate on track to reach our target, despite base salary increases Personnel expenses increased largely on higher performance related compensation Significant items in 2Q09 Goodwill impairment CHF 492m Restructuring charges CHF 582m Significant items in 1Q09 Goodwill i
Slide 9: Invested assets
Invested assets WM&SB (CHF bn) WM Americas (CHF bn) Global AM (CHF bn) (12) (17) 56 961 934 Mar 09 NNM Market FX / Other Jun 09 3% (25) (6) 53 695 673 Mar 09 NNM Market FX / Other Jun 09 3% 576 593 (17) 37 (3) Mar 09 NNM Market FX / Other Jun 09 3% Swiss clients outflows improved to CHF 0.2bn from C
Slide 10: Further reduction of risk exposure
Further reduction of risk exposure Monoline insurers Reclassified assets2 Auction rate securities Commuted trades with a notional value of USD 5.7bn1 with 3 monoline insurers Remaining exposure to monoline insurers reduced to USD 3.2bn The fair value of the portfolio of reclassified assets increased
Slide 11: Risk-weighted assets
Risk-weighted assets 195 172 28 22 8 8 46 46 1Q09 2Q09 Credit risk Market risk Non-counterparty related risk Operational risk 278 248 WM Americas (CHF bn) Investment Bank WM&SB (11)% 248 161 52 23 2Q09 Corporate Center Global AM Market risk expected to increase to ~60bn post implementation of propos
Slide 12: Regulatory capital
Tier 1 capital BIS RWA Tier 1 ratio Total capital Total ratio Regulatory capital CHF billion 31.03.09 Net P&L attr. to shareholders Net P&L not eligible for capital Share placement Other1 Risk-weighted assets Impacts on Tier 2 capital 30.06.09 Pro-forma for announced UBS Pactual sale 29.2 (1.4) 1.2
Slide 13: Capital position
Capital position 25.8 21.6 25.1 7.4 7.7 7.5 33.2 29.2 32.6 4Q08 1Q09 2Q09 Core Tier 1 capital Hybrid Tier 1 capital Core Tier 1 ratio (%) Tier 1 ratio (%) (CHF bn) 10.1 13.2 8.5 7.8 11.0 10.5 Tier 1 capital ratio at the end of 2Q09 was 13.2%, while pro forma1 was 13.7% Core tier 1 capital ratio at t
Slide 14: FINMA leverage ratio
FINMA leverage ratio Average adjusted assets decreased by CHF 137bn or 13% during 2Q09 Pro-forma leverage ratio of 3.7% using: 2Q09 ending adjusted assets of CHF 907bn CHF 33.6bn of Tier 1 capital taking into account effects of announced sale of UBS Pactual 1'352 1'081 944 41 51 41 166 165 162 654 7
Slide 15: Highly liquid balance sheet and diversified funding profile
Highly liquid balance sheet and diversified funding profile Asset funding, 30 June, 2009 CHF bn Assets Liabilities & Equity Cash & banks Loans Trading assets Collateral trading Other (incl net RVs) Due to banks Deposits Demand deposits Fiduciaries Long term debt Time deposits Retail savings / deposi
Slide 16: Wealth Management & Swiss Bank
Wealth Management & Swiss Bank Pre-tax profit excluding restructuring charges is up 16% from 1Q09 Personnel expenses excluding restructuring charges are down 9%, mainly due to lower performance-related accruals and the reductions of personnel Non-personnel expenses excluding restructuring charges ar
Slide 17: Wealth Management Americas
2Q08 1Q09 2Q09 -748 -35 -221 171 -19 -149 0 Wealth Management Americas Restructuring charges of CHF 152m in 2Q09 Revenues down 3%, while underlying2 expenses increased 1% Gross margins were stable in US dollar terms NNM impacted by annual client income tax payments as well as financial advisor attri
Slide 18: Global Asset Management
2Q08 1Q09 2Q09 352 -59 82 171 -19 -149 0 Global Asset Management Underlying pre-tax profit decreased by CHF 30m Increased performance fees were more than offset by higher personnel expenses Cost / income ratio on adjusted basis is 79.4% CHF 13bn of NNM outflows related to clients of UBS's wealth man
Slide 19: Investment Bank
Investment Bank Pre-tax profit (CHF m) Lower losses on risk positions from businesses being exited compared with 1Q09 2Q09 results include own credit losses of CHF 1'213m compared with gains of 651m in 1Q09 Increased revenues in IBD and Equities, while FICC remained weak Underlying1 expenses are sig
Slide 20: Investment Bank revenues
Investment Bank revenues Investment banking (CHF m) Sales & Trading - Equities (CHF m) Sales & Trading - FICC (CHF m) Advisory revenues down 2% to CHF 211m Capital market revenues were up 60% to CHF 771m Other fee income and risk management revenues were negative CHF 265m Higher cash revenues, prime
Slide 21: Stabilized financial position; cautious outlook
Stabilized financial position Cautious outlook Headwinds from overall economic environment Re-building reputation & franchise will take time Capital protection Restoring profitability Reducing costs Strengthened Tier 1 capital ratio to 13.7%1 FINMA leverage ratio increased to 3.5% Adjusted pre-tax p
Slide 22: UBS
2 UBS
Slide 23: Appendix
Appendix
Slide 24: WM&SB - International clients
WM&SB - International clients Revenues declined 24m or 2%, mainly driven by lower asset based fees, partly offset by higher brokerage commissions, following increased client trading activities International clients outflows increased to CHF 16.3bn from CHF 13.2bn prior quarter Inflows in Asia Pacifi
Slide 25: WM&SB - Swiss clients
WM&SB - Swiss clients Revenues declined CHF 54m or 3% on lower interest income and decreased fee income Net new money outflows improved to CHF 0.2bn from CHF 10.2bn prior quarter Revenues (CHF m) (3%) (19%) 1'565 1'619 1'924 2Q08 1Q09 2Q09 2Q08 1Q09 2Q09 vs. 1Q09 Revenues (CHF m) 1'924 1'619 1'565 (
Slide 26: Corporate Center
Corporate Center 2Q09 includes Goodwill impairment of CHF 492m related to Pactual SNB fund call option gain of CHF 129m MCN gain of CHF 78m Restructuring charges of CHF 33m 1Q09 includes MCN gain of CHF 524m Gain on buy-back of subordinated bonds of CHF 304m SNB fund call option loss of CHF 302m Pre
Slide 27: Balance sheet trend
Balance sheet trend 2'542 2'487 2'275 2'233 2'080 1'997 2'015 1'861 1'600 452 408 416 315 775 303 289 958 286 754 335 543 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Lending Collateral trading Trading portfolio Other assets Positive replacement values (CHF bn)
Slide 28: Exposure to monoline insurers
Exposure1 to monoline insurers2 USD billion Credit protection on US RMBS CDOs of which from monolines rated investment grade (BBB & above) on US sub-prime RMBS CDO high grade on US sub-prime RMBS CDO mezzanine on other US RMBS CDO of which from monolines rated BB and below on US sub-prime RMBS CDO h