Ubs Group Ag · SIX:UBSG
Ubs — Investor Day (May 2014)
10 slides from Ubs's investor day presentation, May 6, 2014
Slide 1: 2014 Investor Update: Managing Down the Non-core and Legacy Portfolio
2014 Investor Update Managing Down the Non-core and Legacy Portfolio Phil Lofts Group Chief Risk Officer May 6, 2014
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: Successfully and materially reduced RWA and LRD since 2012
Successfully and materially reduced RWA and LRD since 2012 Modest and closely managed remaining credit and market risk Non-core and Legacy Portfolio RWA CHF billion x Non-core and Legacy Portfolio RWA reduced 59% since 31.12.12, excluding operational risk: 59% reduction in Sold the vast of majority
Slide 4: Non-core Credit
Non-core Credit Dominated by Structured Credit with strong further reduction expected Non-core Credit RWA excluding operational risk, CHF billion 7.1 0.6 Other (65%) 0.9 Loans 20.3 18.9 Credit Structured risk 13.0 5.6 9.7 credit 7.8 7.1 Market risk 31.12.12 31.3.13 30.6.13 30.9.13 31.12.13 31.3.14 3
Slide 5: Non-core Rates
Non-core Rates RWA1 is mainly credit risk and driven by derivative counterparty exposure Non-core Rates RWA excluding operational risk, CHF billion 11.2 (62%) 2.0 Non-linear OTC 29.3 28.6 23.0 Credit 18.9 9.2 Linear OTC risk 13.8 11.2 Market risk 31.12.12 31.3.13 30.6.13 30.9.13 31.12.13 31.3.14 31.
Slide 6: A clear trajectory for exiting Non-core
A clear trajectory for exiting Non-core Unwind strategies have been developed and implemented across all areas OTC positions: natural decay of RWA CHF billion x Unwind strategies include a mix of: 44 Clearing, compressing and back-loading trades with other dealers Negotiating unwinds bilaterally 37
Slide 7: Legacy Portfolio
Legacy Portfolio Significant exits across all asset classes; reduced risk profile well hedged Legacy Portfolio RWA excluding operational risk, CHF billion CDOs, RLNs, Monolines: Predominantly CDS protection 50% reduction referencing ABS assets, hedged by long positions in those or in five quarters s
Slide 8: Maximizing shareholder value
Maximizing shareholder value Unwinds balance capital release and exit costs to be economically efficient Cumulative RWA reduction and quarterly revenues RWA in CHF billion and revenues in CHF million x Direct oversight by Group CEO, Group 222 CFO/COO and Group CRO x Operating income negatively impac
Slide 9: Key messages
Key messages Counterparty risks are largely collateralized or are with good quality credits Clear strategy and robust oversight for further disciplined reduction of Non-core and Legacy Portfolio RWA and leverage ratio denominator Speed of reduction is weighed against the ultimate benefit to sharehol
Slide 10: Important information related to numbers shown in this presentation
Important information related to numbers shown in this presentation Use of adjusted numbers Adjusted results are non-GAAP financial measures as defined by SEC regulations. Refer to page 12 of the first quarter 2014 report and pages 76-77 of our 2013 annual report for an overview of adjusted numbers.