Ubs Group Ag · SIX:UBSG
Ubs — Q3 2024 Earnings Presentation
27 slides from Ubs's earnings presentation, Oct 30, 2024
Slide 1: Third quarter 2024 Financial results
Third quarter 2024 Financial results 30 October 2024
Slide 2: Important information
Important information 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, statements relating to the anticipated effect of transactions and strategic initiat
Slide 3: Agenda
Agenda Key Financial Q&A messages performance Sergio P. Ermotti, Group CEO Todd Tuckner, Group CFO 2
Slide 4: Key messages
Key messages Strong financial performance; net profit 1.4bn, underlying profit before tax 2.4bn and underlying RoCET1 9.4% Continued franchise strength and client momentum; Group invested assets 6.2trn, +15% YoY, Global Wealth Management NNA 25bn and underlying transaction revenues +19% YoY, Investm
Slide 5: Financial performance
Financial performance Todd Tuckner, Group CFO 4
Slide 6: Strong revenue momentum with lower costs driving positive operating leverage
Strong revenue momentum with lower costs driving positive operating leverage Underlying Revenues Operating expenses Profit before tax bn bn bn +9% Underlying 3Q24 9M24 11.7 (4%) 10.7 9.6 9.2 Profit 2.4bn 7.1bn before tax +161% 2.4 RoCET1 9.4% 9.2% Cost / 78.5% 78.8% income 0.9 3Q23 3Q24 3Q23 3Q24 3Q
Slide 7: Net profit 1.4bn, while integration continues at pace
Net profit 1.4bn, while integration continues at pace Profits m ~0.5bn expected in 4Q241 Underlying 662 Reported 3Q24 9M24 +161% 419 2,386 Net profit 1.4bn 4.3bn o/w: tax: (502) 118 1,929 935 (1,119) Diluted EPS 0.43 1.29 1,425 ~1.2bn expected in 4Q24 (505) 914 RoCET1 7.6% 7.5% Cost / 83.4% 83.5% in
Slide 8: Underlying operating expenses flat QoQ excluding currency effects
Underlying operating expenses flat QoQ excluding currency effects Underlying operating expenses bn 9.6 +2% Flat QoQ 0.2 9.2 9.0 0.1 0.1 (0.2) 69m release in 3Q24 vs. 153m release in 2Q24 3Q23 2Q24 Costs excl. currency Variable and FA Litigation Currency effects1 3Q24 effects, litigation, compensatio
Slide 9: Achieved >50% of gross cost save ambition
Achieved >50% of gross cost save ambition Cumulative annualized exit rate Cumulative integration- Underlying operating expenses gross cost reductions related expenses1 USD bn USD bn / % of expected cumulative total USD bn / % of expected cumulative total Core Non-core and Legacy (~8%) / (~3.2bn) ~13
Slide 10: Strong capital position supporting growth and capital return ambitions
Strong capital position supporting growth and capital return ambitions CET1 capital ratio CET1 capital, bn 76.1 1.6 (0.6) n/a 0.6 77.6 (3.4) 74.2 − Voluntary acceleration of the remaining PPA regulatory adjustment 0.3% amortization does not impact UBS 14.9% 0.1% 14.9% AG capital; 13.3% UBS AG (0.1%)
Slide 11: Balance sheet for all seasons
Balance sheet for all seasons USD bn, except where indicated USD bn, except where indicated 3Q24 2Q24 3Q23 QoQ YoY 3Q24 2Q24 3Q23 QoQ YoY Total assets 1,624 1,561 1,644 +4% (1%) Regulatory capital o/w: Cash and balances at central banks 243 248 262 (2%) (7%) CET1 capital 74.2 76.1 76.9 (2%) (4%) o/w
Slide 12: Global Wealth Management
Global Wealth Management Underlying USD m, except where indicated 3Q24 2Q24 3Q23 QoQ YoY Underlying 3Q24 vs. 3Q23 Total revenues 5,975 5,820 5,565 +3% +7% PBT 1,280m, +30% Net interest income 1,590 1,586 1,621 0% (2%) Total revenues 5,975m, +7% driven by higher recurring Recurring net fee income 3,2
Slide 13: Personal & Corporate Banking (CHF)
Personal & Corporate Banking (CHF) Underlying CHF m, except where indicated 3Q24 2Q24 3Q23 QoQ YoY Underlying 3Q24 vs. 3Q23 Total revenues 1,818 1,838 1,945 (1%) (7%) PBT 659m, (7%) Net interest income 1,008 1,024 1,128 (2%) (11%) Recurring net fee income 363 357 345 +1% +5% Total revenues 1,818m, (
Slide 14: Asset Management
Asset Management Underlying USD m, except where indicated 3Q24 2Q24 3Q23 QoQ YoY Underlying 3Q24 vs. 3Q23 Total revenues 873 768 775 +13% PBT 237m, +46% +14% Net Management fees 755 711 757 +6% 0% Performance fees 46 28 18 +62% +157% Total revenues 873m, +13% driven by 72m net gain from disposals; n
Slide 15: Investment Bank
Investment Bank Underlying USD m, except where indicated 3Q24 2Q24 3Q23 QoQ YoY Underlying 3Q24 vs. 3Q23 Total revenues 2,461 2,493 1,911 (1%) +29% PBT 377m with revenues +29% Global Banking 555 668 458 (17%) +21% Global Banking revenues +21% Advisory 220 239 195 (8%) +13% − Advisory +13%, with stro
Slide 16: Non-core and Legacy
Non-core and Legacy Underlying Underlying 3Q24 vs. 3Q23 USD m, except where indicated 3Q24 2Q24 3Q23 QoQ YoY PBT (333m) Total revenues 262 401 366 (35%) (29%) Total revenues 262m driven by gains on position exits, Credit loss expense / (release) 28 (1) 59 partially offset by funding costs and mark-d
Slide 17: Non-core and Legacy run-down ahead of schedule
Non-core and Legacy run-down ahead of schedule Underlying operating expenses RWA Updated natural run-off profile5 bn bn % of Group 15% 9% Current YE26 ambition ~5% 52% ~2.9bn books closed 86 ~6.1 since June 2023 Op. Target: >95% by YE26 Risk 30 45 42 3.2 32 31% Credit and 27 27 56 25 IT apps decommi
Slide 18: Appendix
Appendix 17
Slide 19: Our financial targets and long-term ambitions
Our financial targets and long-term ambitions Financial Capital Ambitions targets guidance long-term Underlying RoCET1 RoCET1, reported ~15% 2026 exit rate ~14% CET1 capital ratio ~18% by 2028 Underlying cost / income GWM invested assets <70% ratio 2026 exit rate >4.0% CET1 leverage ratio >5trn by 2
Slide 20: UBS Group results
UBS Group results USD m, except where indicated 3Q24 2Q24 1Q24 4Q23 3Q23 Total revenues 12,334 11,904 12,739 10,855 11,695 Credit loss expense / (release) 121 95 106 136 239 Operating expenses 10,283 10,340 10,257 11,470 11,640 Operating profit / (loss) before tax 1,929 1,469 2,376 (751) (184) Tax e
Slide 21: 3Q24 overview of financial performance by business division
3Q24 overview of financial performance by business division USD m, except where indicated UBS Group GWM P&C AM IB NCL Group Items Total revenues as reported 12,334 6,199 2,394 873 2,645 262 (39) of which: PPA effects and other integration items1 662 224 278 185 (25) Total revenues (underlying) 11,67
Slide 22: 3Q24 Global Wealth Management results by region
3Q24 Global Wealth Management results by region Americas Switzerland EMEA APAC 16% 11% 368 33% 117% 330 317 298 304 286 Underlying 229 profit before tax m 132 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q24 Underlying cost / income ratio 88% 65% 74% 69% Invested assets 2,096 796 684 678 bn Net new asse
Slide 23: RWA and LRD increased due to currency effects
RWA and LRD increased due to currency effects Risk weighted assets Leverage ratio denominator bn bn 2% 3% 11.2 519.4 53.6 1,608.3 511.4 2.4 0.0 1.0 1,564.2 6.1 (6.7) (9.2) (0.9) (1.9) (3.6) 318.5 2Q24 Credit and Non- Market Operational Currency 3Q24 2Q24 On- Derivatives Securities Off- Deduction Cur
Slide 24: Maintaining a strong capital position
Maintaining a strong capital position 194.9bn 37.5% 12.1% Gone concern: 103.9bn Gone concern: 20.0% Gone concern: 6.5% Total loss-absorbing capacity : 8.75% Total loss-absorbing capacity: 25.6% Going concern: 91.0bn Going concern: 17.5% Going concern: 5.7% o/w CET1 o/w CET1 o/w CET1 Going concern: 1
Slide 25: PPA pull to par overview and revenue recognition
PPA pull to par overview and revenue recognition Accretion of PPA adjustments on financial instruments Recognized Estimated amortization profile4 Expected future P&L Opening balance Remaining balance USD bn 2023 – 3Q24 releases at 30.09.24 4Q24 2025 2026 2027+ as of 12.6.23 (close)2 to be recognized
Slide 26: FY22 combined cost baseline
FY22 combined cost baseline FY22 USD bn Operating expenses UBS sub-group (IFRS)1 24.9 Credit Suisse sub-group (US GAAP)2,3 19.1 UBS sub-group exclusions4 (0.3) Credit Suisse sub-group exclusions3,5 (2.0) Commission expense reclassification3,6 (1.1) FY22 combined cost baseline 40.6 Of which: ~34.5bn
Slide 27: Cautionary statement regarding forward-looking statements
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, statements rela