Ubs Group Ag · SIX:UBSG
Ubs — Q1 2016 Earnings Presentation
28 slides from Ubs's earnings presentation, May 3, 2016
Slide 1: First quarter 2016 results
First quarter 2016 results May 3, 2016
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: 1Q16 results
1Q16 results Resilient adjusted PBT CHF 1.4 billion in challenging market conditions Group Net profit attributable to UBS Group AG shareholders CHF 707 million, diluted EPS CHF 0.18 Reported profit before tax (PBT) CHF 978 million, adjusted PBT CHF 1,366 million Adjusted return on tangible equity 8.
Slide 4: UBS Group AG results (consolidated)
UBS Group AG results (consolidated) CHF million, except where indicated 1Q15 2Q15 3Q15 4Q15 1Q16 Total operating income 8,841 7,818 7,170 6,775 6,833 Total operating expenses 6,134 6,059 6,382 6,541 5,855 Profit before tax as reported 2,708 1,759 788 234 978 of which: net restructuring charges (305)
Slide 5: Wealth Management
Wealth Management Resilient performance despite lowest first quarter transactional revenues on record Operating 1,943 1,921 2,031 2,004 2,106 2,024 1,943 1,897 1,885 Operating income CHF 1,885 million income 542 472 479 436 589 459 366 364 402 Transaction-based income increased primarily in Asia 4
Slide 6: Wealth Management
Wealth Management NNM CHF 15.5 billion, highest since 2007 with continued focus on high-quality inflows 6.5% Net new 4.9% 4.8% 4.2% 5.8% NNM CHF 15.5 billion, despite moderate money1 3.5% deleveraging, with net inflows from all regions, 1.2% 1.5% particularly in Asia Pacific Annualized growth rate
Slide 7: Wealth Management
Wealth Management Positive net new money in all regions, particularly strong UHNW Europe Asia Pacific Switzerland Emerging markets of which: UHNW Net new 12.9% money1 12.2% 10.5% 6.5% 8.1% 6.3% 5.4% 5.6% Annualized 3.3% 2.1% 3.6% 3.0% 3.6% 3.2% growth rate 0.8% 1.8% 2.8% 0.5% 2.1% 0.2% 1.3% 1.8% 1.8
Slide 8: Wealth Management Americas
Wealth Management Americas Solid performance with record net interest income Operating income USD 1,899 million Operating 1,865 1,898 1,919 1,924 1,901 1,947 1,931 1,874 1,899 464 441 448 432 425 381 376 361 Transaction-based income declined due to lower income 472 261 276 280 277 301 311 326 351
Slide 9: Wealth Management Americas
Wealth Management Americas Strong net new money and record managed account assets 6.8% Net new 5.3% money NNM USD 13.6 billion predominantly from newly recruited advisors, as well as from advisors who 1.9% 2.2% 1.9% Annualized 0.9% have been with UBS for more than one year growth rate 0.2% (0.3%)
Slide 10: Wealth Management Americas
Wealth Management Americas Industry leading productivity per advisor for revenue and invested assets Invested assets and FA productivity Net interest income and lending Annualized revenue per FA (USD thousand) Net interest income (USD million) Invested assets per FA (USD million) Credit loss (expens
Slide 11: Personal & Corporate Banking
Personal & Corporate Banking Higher PBT and highest net new business volume growth for personal banking since 1Q12 958 913 979 Operating 932 938 952 964 915 963 Operating income CHF 963 million income 234 247 267 273 284 241 238 196 244 Transaction-based income increased mainly as the previous qua
Slide 12: Asset Management
Asset Management Lower performance fees reflecting market conditions 489 497 511 502 512 Operating income CHF 468 million Operating 451 465 68 476 23 44 468 38 27 34 20 23 income 47 Performance fees decreased mainly in Equities, Multi-Asset & O'Connor CHF million 427 462 463 443 456 479 468 446 40
Slide 13: Investment Bank
Investment Bank Disciplined resource management and returns comfortably above cost of equity 2,657 Operating 2,344 Operating income CHF 1,879 million 2,200 2,225 779 2,088 income 1,969 1,919 822 1,721 1,879 CCS revenues down 39% YoY mainly reflecting a 768 981 710 global decline in the market fee
Slide 14: Corporate Center
Corporate Center Continued reduction in Non-core and Legacy Portfolio LRD 1Q15 2Q15 3Q15 4Q15 1Q16 Profit before (332) (417) (514) (586) tax (1,174) Corporate Center total (CHF million) Corporate Center results by unit (CHF million) Services Operating income (4) (41) (38) (54) (55) Operating expen
Slide 15: Cost reduction
Cost reduction Corporate Center operating expenses Corporate Center – Services adjusted operating expenses before allocations to business divisions and Corporate Center – Non-core and Legacy Portfolio, CHF billion March 2016: ~CHF 2.4 billion FY12-15 Achieved CHF 1.2 billion Corporate Center cumulat
Slide 16: Cost reduction
Cost reduction On track to deliver CHF 1.4 billion by 2Q16 and steady progress thereafter to end 2017 Cumulative annualized net cost reduction1 CHF billion 2.1 Achieved CHF 1.2 billion as of March 2016 1.4 1.2 1.1 0.9 0.8 March FY152 December March Expected Target 2015 2015 2016 June 2016 2017 Adjus
Slide 17: Cost reduction
Cost reduction Structural initiatives to achieve our CHF 2.1 billion net cost reduction target and mitigate the impact of regulatory demand … Corporate Center On-going structural cost reduction program to be completed by end-2017 Actions across workforce & footprint, organization, processes and
Slide 18: Capital and leverage ratios
Capital and leverage ratios Strong capital position with 14.0% Basel III CET1 ratio and 5.4% Swiss SRB leverage ratio Basel III CET1 capital ratio1 Swiss SRB leverage ratio Fully applied, CHF billion Fully applied, CHF billion 14.4% 14.3% 14.5% 14.0% 13.7% 10.0% 2019 requirement 5.0% 5.3% 5.4% 4.6%
Slide 19: Appendix
Appendix st UBS
Slide 20: Group and business division targets and expectations
Group and business division targets and expectations Ranges for sustainable performance over the cycle Net new money growth rate 3-5% Wealth Management Adjusted cost/income ratio 55-65% 10-15% annual adjusted pre-tax profit growth Net new money growth rate 2-4% for combined businesses through the cy
Slide 21: Group ALM operating income
Group ALM operating income Business division-aligned risk management includes managing 1 the interest rate risk in the banking 2 book on behalf of Wealth 3 Management and Personal & Corporate Banking and high-quality liquid asset (HQLA) portfolios on behalf of specific business divisions Capital inv
Slide 22: Capital requirements under draft proposal for revised Swiss SRB
Capital requirements under draft proposal for revised Swiss SRB UBS leverage capital ratio balances vs. revised Swiss SRB Meeting 2019 requirements UBS position as of 31.3.161 Phase-in leverage ratio requirements2 Gone concern capital requirement is subject to a potential reduction of up to 2.0% Gon
Slide 23: Corporate Center – Non-core and Legacy Portfolio
Corporate Center – Non-core and Legacy Portfolio RWA LRD1 and RWA by category CHF billion CHF billion, 31.3.16 103 Operational risk Rates 17.2 4.3 14 Credit and market risk Credit 6.7 0.5 Securitizations 1.6 1.3 36 32 32 31 32 APS/ARS 2.6 0.8 88 20 Muni swaps and options 2.4 0.5 20 20 21 22 Other 10
Slide 24: Oil and gas exposures
Oil and gas exposures Oil and gas net banking products exposure1 CHF billion As of 31.3.16, our total funded and unfunded net CHF 5.5 billion CHF 5.5 billion CHF 5.5 billion banking products exposure to the oil and gas sector was CHF 5.5 billion, CHF 0.6 billion lower than on 31.12.15, Other Servi
Slide 25: Cost reduction
Cost reduction Corporate Center operating expenses before allocations1 CHF billion 10.3 Litigation 1.5 expenses2 1 9.1 Regulatory programs 0.2 (0.9) 0.6 costs 2 0.7 (0.1) (0.3) CHF 1.2 billion net cost 7.4 reductions based on Residual March 2016 annualized operating 8.6 exit rate expenses1,3 of wh
Slide 26: Regional performance – 1Q16
Regional performance – 1Q16 1 CHF billion Americas Asia Pacific EMEA Switzerland Global Total 4Q15 1Q16 4Q15 1Q16 4Q15 1Q16 4Q15 1Q16 4Q15 1Q16 4Q15 1Q16 WM 0.1 0.1 0.5 0.5 0.9 0.9 0.4 0.4 0.0 0.0 1.9 1.9 WMA 1.9 1.9 - - - - - - - - 1.9 1.9 P&C - - - - - - 0.9 1.0 - - 0.9 1.0 Operating AM 0.2 0.1 0.
Slide 27: Adjusted results
Adjusted results Adjus ting items FY14 FY15 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 CHF million Operating income as reported (Group) 28,027 30,605 7,258 7,147 6,876 6,746 8,841 7,818 7,170 6,775 6,833 of which: Gains/(losses) on sale of subsidiaries and businesses WM 169 141 56 (28) AM 56 56 WM
Slide 28: 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