Ubs Group Ag · SIX:UBSG
Ubs — Q4 2021 Earnings Presentation
64 slides from Ubs's earnings presentation, Feb 1, 2022
Slide 1: Fourth quarter 2021 Strategic update and results
UBS Fourth quarter 2021 Strategic update and results
Slide 2: Important information
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Slide 3: Agenda
Agenda 1 Strategic update Ourvision Our progress Our future Our ambition Rajph Hamers, Group CEO. UBS: 2 Financial performance FY and 4Q21 performance Divisional results Capital management Q&A
Slide 4: Key messages
Key messages © Focusing on growth UBS: Q ia’ Expanding into new client segments = Accelerating strategic tech investments lia, risk and cost discipline e Creating sustainable value
Slide 5: Strategic update: Our vision
1 Strategicupdate | Our vision Ralph Hamers, Group CEO SUBS
Slide 6: Reimagining the power of investing
Personalized Relevant On-time Seamless UBS: Reimagining the power of investing. Connecting people for a better world. ton stepeinpernnes Convene THE global ecosystem for OQ tenscomecion investing where thought leadership is impactful, people and ideas are 6B tos connected, and opportunities ase are
Slide 7: Our global ecosystem delivers the power of investing to our clients
Our global ecosystem delivers the power of investing to our clients Contributors benefit from: Clients bent rom: helateaneustes nese tery + nora eer entre anseamesitons 1 gad andsale meseston Bubs ‘i
Slide 8: Sustainability is core to our purpose and ecosystem
Sustainability is core to our purpose and ecosystem ‘Our sustainability ® Planet Q People &D Partnerships commitment bene andl pocerot NetZero commitment 650m Setting standards Goce for dens whowsh © even Doy208 Scere UBSonpyneet Kanone ot ‘rooleecoptaltomeatbe ‘Sarmiento Feogiimewetgetcteees sna te
Slide 9: Strategic update: Our progress
1 Strategic update Our progress Ralph Hamers, Group CEO SUBS
Slide 10: Our ecosystem grew to 4.6trn in invested assets
Our ecosystem grew to 4.6trn in invested assets 4.6trn imvestedassets, GWMAAMSPEC 107bn 48bn 28bn etn a SHAE Penna ning Private markets saa, SHAAN Sustainable investing nadine ese 25100 ABUBS to st none armors teeny tes 2d ny me ne UBS Manage™ ?
Slide 11: We supported our clients and drove positive operating leverage
We supported our clients and drove positive operating leverage... We supported our clients with investing liquidity and transactions. while managing our ost base to deve positive ‘operating leverage UBS TYansacion baedincome 2% Operatngincome Slobatbankingincome ‘Global Markesincome a an ea— 2280 jn
Slide 12: Another year of strong performance
...fesulting in another year of strong performance 178% = Exceeding our financial targets' a 27° 17.5% sw Poe fash 2 . 73.6% = a | eos | 19% oe BUDS x) aa reece
Slide 13: Strategic update: Our future
1 Strategicupdate Our future Ralph Hamers, Group CEO SUBS
Slide 14: Our clients' needs are at the center of our strategy
Our clients’ needs are at the center of our strategy... Inver auras vos 5 9 wn ATI 68% $y sascha [B) seams dna wath 5 1.4x icrieminponce fener pou RR) -Personaizaion and bespoke Soon nomebuesern snsient 7% >75% Ss POG csc, EOE aon, Soret Saree toearenise he) Onfeieniaen ad saies exatonce beac mnn en
Slide 15: Making wealth coverage more needs-based, digital and effective
AD tees ...$0 we are making our wealth coverage more needs-based, digital and effective UBS Digitally customized Cigtat fst weary rmanagemertseces with Femoteruman sone Personally advised wealth Penonalaavcewth gil suppor Global Family and Institutional Wealth Custom oerngstor Insttutonalnceds Atice
Slide 16: Americas - Capturing future growth through technology-enabled solutions
Americas - Capturing future growth through technology-enabled solutions North Areva’ mest Bank for! ln non Ustrokerin cash equities? ‘Top-sswAmanager! ‘Tep-Susweathmanagert ‘Top-SAmercasresenct 28% of ciovsraTs 2 SAR DIBE sero pase ore gh Pela ent 0 24 an Be 7% ay 20H im = we ee he ass ee Build on o
Slide 17: Leveraging digital to expand our reach in the US
Leveraging digital to expand our reach in the US aS UBS in gltalinenent ce eda Oceana uaa (Wealthfront ‘anoctnningaitom andor egeroreempere Digitaly-customized wealth management & ca =) Q Personalized digital investment offering and financial planning, powered by best.n-class ‘C10 content and invest
Slide 18: APAC - Accelerating growth in key markets and segments
APAC - Accelerating growth in key markets and segments Largest ests edt rtanone mamgenanc fen sera niatv ae ee ranetmanogertorcrostooies | 12, * ‘equtestokern apace Peik: | aa ene std ont thts ogg a oe | ie He vas “y ine | 24% I * = of cruprat rai re pis pao Ratt is oat ‘Accelerate China growth Spi
Slide 19: EMEA - Improving profitability and driving focused growth
EMEA - Improving profitability and driving focused growth Westen Europe's Best Bank certo et fows Westem Europe's Best Investment ank” 2% mH 7m oy #2 Euopeontund manager Necren ee geetng aes i of GoupPaTS Fr} ery Fao at mis mie pao rat UBS eee 2 22 so an ip aero at mcg i aan ho th wi NE Monge 9 NS S
Slide 20: Switzerland - Expanding our lead as the #1 universal bank
AD ree Switzerland — Expanding our lead as the #1 universal bank ‘Swizeranesbestbank’ ofa et certocne =) Sozstandsasngcgtal book? —&— Growing above os Gk a sex ae, oe 2.6m 100k 20 ws Poses any palate Goranend Cone = it it = atthe core iciietia oe en eps “ owen cnt Dotlrn! Sonemeesepodte ur cewney Bi
Slide 21: Asset Management is core to our investment engine
Asset Management is core to our investment engine Custom Alternatives portfolios Brosdotteing with excuse Comprehensive scessto pate ‘accesstopremiumcstomized __and public markes through drect services pdmult-manaperoppertuies 27 153bn Suv trom asetsinested Swaine aN inaternatnes? ABRUBS. seerveyees
Slide 22: Our IB capabilities support our growth plans
AB rca Our IB capabilities support our growth plans across the client franchise oe Invest in digital Focused coverage Market insight Increased alignment Capital Markets He : ou lbaiwacess ooaankng evar Bacum = + spend>tonon + Deepencoveageans + Proidingunique _+—Enancedconsnton tehnotn 22 oferagfo f
Slide 23: Accelerating strategic tech investments
Accelerating strategic tech investments recog changenenane - ere bn canen bn Making technology a differentiator... | 2 a Ss io) wo Usererpetenceand ——_Sealabty Access to cantent ata cme ‘tensor roscoe —_ntepence on . by Leveling up technology as a & @ @ & J AgieOUeS —Digtalcue cBRanddgt) AVtomaton M
Slide 24: Maintaining our cost discipline to support our growth plans
Maintaining our cost discipline to support our growth plans (On track to delver~1bn gross cost saves by 2023, funding our growth initiatives “rosscos saves bn sop tents optimzaton hen “04 Automationand Sweamines sanpiieation oxgaizasonaset gin p al v gies Dicplnedeneesion | ‘UBS
Slide 25: Strategic update: Our ambition
1 Strategicupdate | Our ambition Ralph Hamers, Group CEO SUBS
Slide 26: Creating sustainable value through the cycle
Creating sustainable value through the cycle ESG Commercial Selecteer Selec oration NetZero >6ten vin operoonsope, 2) 2025 Breteosets across GOAN, P 235bn >5% growth? ‘needs stoneotonstzny2020.aM | nonnmeeneeegeneaingasets {bn philanthropy donations to reach 25mbenelaies raed by 2025 400bn invested
Slide 27: Active capital management to enable growth and deliver attractive returns
Active capital management to enable growth and deliver attractive returns Balance sheet Invest for Share WN sor a sessors P) ate 3 Dwvidends Ge cise + Maintain 13% CET eioand + Statagcontny + usDosoorsnaycidendper + Upto Sin 2002 SUACEtiewegerto.” + Opentobotonacniion "‘retobepopoectortne | exemcapt
Slide 28: Key messages
Key messages © Focusing on growth ‘UBS Q ia’ Expanding into new client segments = Accelerating strategic tech investments lin, risk and cost discipline e Creating sustainable value
Slide 29: Financial performance
2 Financial performance Financial performance Kirt Gardner, Group CFO SUBS
Slide 30: FY21 net profit USD 7.5bn; 17.5% RoCET1
FY21 net profit USD 7.5bn; 17.5% RoCET1 Profit before tax ss 7,457m —|2.06 wn | aa a vo ae ene 17.5% — |7.7bn = cn wes ie Ee es a= SS 15.0% |4.24% — csveoaian lei he sy ven ABUBS oegnea noms ne weseng me cst oes HES cA
Slide 31: Executing our cost strategy
Executing our cost strategy Operating expenses 2 pot ‘oo pete UBS 07, oe beans Uegatensnd Peete tiapenesreg arene iia oa nen tebe ab ics v espana ota Ea + Ontacktodeiver-tongroscostsovesp.8. bj 2023, fundingour grothintaves + Costsexc variable and FA compensation gation, estuctuing ana (0.2%) YoY Cu
Slide 32: 4Q21 net profit USD 1.3bn; 11.9% RoCET1
4Q21 net profit USD 1.3bn; 11.9% RoCET1 Profit before tax as ooneing reore oe 749% 55008 = 1,348m to om = 11.9% aa iter Se = - 15.0% se _— 0.38 ansesers 4%) 1.6bn ceri copia cretion? 4.24% CE eeage rte ABUBS sorcery ream easy moran seus care wep on emmys tne cnn nin STAN tn
Slide 33: Interest rate sensitivity
Interest rate sensitivity eae aoe pots —— soe oa 0 1m wo ae — - m UBS: 10 bee ‘Annual net interes income sensitivity Faber itineme fomuslanone! oe ae 070 abe ‘Asseesi | Niece em 00 pls lsc 20 ne 030 te cotton Wy Tenner d aces Cus tapas dem sop nae OR eA Se ia ancy a see SO a as eteatewboaentes cmoey
Slide 34: Global Wealth Management
Global Wealth Management Profit before tax Costincame ratio Invested assets BUBS eee Be 1409 ae 20% sore n% 73% 0% aT +41% exc provision for french cross-border mate FY21 PBT 4783, «19%; Americas nd ‘APAC with record 40 andy FET Operating income +13%, wth rowhin a {egies revenue pr advsor2 Tm, +1635
Slide 35: Personal & Corporate Banking (CHF)
Personal & Corporate Banking (CHF) Operating income Costincome ratio ‘UBS 902 = P87 335m, 45%; 429% exc. pronionfor French cos border mate, elecing continued ‘song buses momentum FY21 PBT 1,587, +35% peratingincame 11% cthenby higher net Interest ntome anctrantaton baedincome ‘wells ecorrecuring net
Slide 36: Asset Management
Asset Management Profit before tax Costincome ratio Invested assets 0% se om 1 62% 64% 5AM oe a wee a zon 3am gt P51 334m, (179 F¥21 POT 1,030m, POT 412% ‘exc Fondcetersalegansin 320and2021, Operatingincome(r%) ~ Netmanagementtes +219 on higher average Invested assets supprtedbycontnuedstong ‘el new
Slide 37: Investment Bank
Investment Bank Pei before tax 9 Operating Costincome ratio 71% so HUBS romccmnionememann nas 69% son oAE22%;F81 713m, 435% supportedby record Income;F¥21 ROAE 20%, FY21 PBT 2,630m,+6% Global Markets reverie 46% = Execton ences «6% ven by higher FX and cashequtes = Derathes & Solutions (6%) aaista s
Slide 38: Capital and leverage ratios
Capital and leverage ratios 105bn Soros 60bn 19 SS) 48b0 ‘UBS 34.7% 20.0% 15.0% 9.20% Hes 5.66% soe 4.24% bed 5
Slide 39: Delivering attractive capital returns
Delivering attractive capital returns utlyear2021 % 050 2. 2.6bn 58% ordinary dividend per share to be proposed _of shares bought back? total payout ratio? for the financial year 20217 ‘Committed to progressive dividends Up to Sb in 2022 Excess capital to be distributed via share buybacks
Slide 40: Appendix: Strategic update
Appendix Strategic update SUBS
Slide 41: Our global ecosystem delivers the power of investing to our clients
Our global ecosystem delivers the power of investing to our clients Thought leadership + Sst leslie map tor 7 tne a ede! and advice P ibacbeny renee Leading customized investment and financing solutions Pessonalzed ardent Liquidity andscale + Genny cenavegroae dt ne et — i ascey) 2 Saiigoreanteonne
Slide 42: Our strategic imperatives guided our execution in 2021
Our strategic imperatives guided our execution in 2021 RR Clients, Connections ‘and Contributors Become. tly ent.centic ganization + ound ecg wn Sen comune. & Focus Pay where we are postionedto win + Ouined sand ac ener Be + binog Sead Aisa nd Scontonese bares 8 Technolooy Make edhnooay Acierentitor
Slide 43: Leveling up technology to drive digitalization and differentiation
Leveling up technology to drive digitalization and differentiation for our clients Q Agile@ues nit age modelo Irceasespeedtomises + Agle@Uss:one ‘emwice model setined sndeommunested + 10.000 people ‘vastionng to Aagieauss ‘UBS ® Digital culture Bull high performing engineeingclture + Defonedand Impl
Slide 44: Wealthfront - Strategic rationale
Wealthfront - Strategic rationale Accelerate digitally led offering inthe Us. roving he next generation ofimestos th cess to planing lesimentanabaniing ‘ktons toughen avareswinnngplatorm + comectog smc wen Be ‘Gems CB comrsansesnene + Scasennglue pepoont US es ectngspiaonysonen, + prog btn ec nde +
Slide 45: Wealthfront - Transaction overview
Wealthfront — Transaction overview + Uashasagreesto acqure Wealthtion, anindust leading, cial weath management provide Serving the ne generation inves: crane + Basedin Palo Ato, Calor with 238 employees 1 Weatironthat > 470dens wth >270n AUNtas of 28.122 ‘+ lkcash tansacton of USD 1.4 itn, ancedby e
Slide 46: Global Family and Institutional Wealth - Evolving our One UBS approach
Global Family and Institutional Wealth - Evolving our One UBS approach Today... Tomorrow. + btn oe certs ne * seater engagement Sholecocaze pont! ota tom iontobaccalgamenttcoveape SSrecng:onenypontecos Gone nape oe rere Unlocking See + Cents interface wth etferent dvsions ‘our potential + Clentsserv
Slide 47: Appendix to FY and 4Q21 results
Appendix 1. Appendix to FY and 4Q21 results SUBS
Slide 48: Group results
Group results 4Q20 1Q21 2921 3Q21 4Q21 “along cone ai ais a7 ane om Tealeoweng ose am ean eu ee 700 Operating profit (os) before tax 1.985 2.298 2593 2,865 179 irreecwr een oa m cr we a Net profit/ (oss) attibutableto shareholders 1,636 1824 2,006 2.279 1,348 ima oa = os wa ie eae te mas 205% nas 21
Slide 49: 4Q21 Group results by region
4Q21 Group results by region Americas EMEA, Asia Pacific 88 5 og ihn Profit before tax oa o 05904, i = 2 sgn on som 4021 sq sant sam san pratingincame 39 +6 2.01% 1.6 418 14 a Qperaingexnerses 29.2% 13.2% 17 am 0.9 2%, Contncome ratio 75.2% 02ers 65.6% +0500 109.4% -28200 64.7% asco) tine SESE Se ee
Slide 50: FY21 Group results by region
FY21 Group results by region Americas Switzerland EMEA, Asia Pacific 10% " | 2% Profit before tax 3a 4 . 2% 20 a mre pat rm ma rm ma pa pat pratingincame 145 os 7.9 19% 7.0 +05 65-98 Qperaingexnerses 5 10% Adam 5.6 «11% 3828 Conticome ratio «79.2%. osee 60.5% 0386s) 79.8% -2550% 59.3% oreo)
Slide 51: Global Wealth Management
Global Wealth Management Recurring net fee income Net interestincome ait , 2 mn aa 2872 6 ep bn ass a7 a son om 1036 117% YoY on higher FGA balances {110% YoY ervey higheroan and 41% Qo0 supported bycontinuedstong Crepes NAGA momentum +1% 000 sven by igherloan volumes BUBS Voss Transaction-based inc
Slide 52: Global Wealth Management
Global Wealth Management Fee-generating assets! ee se fo &EéE ese BUBS vas ase tera +2711 nneca\, 8% annualized growth in 4921 xa Amerkas EMEA apac py 2200 ib sen +1071n wneca\, 8% growth in F¥21 Amerias EMEA pac 640 +1960 abo, a ‘witzertns S20, ‘Switzer ‘bn
Slide 53: FY21 Global Wealth Management results by region
FY21 Global Wealth Management results by region Profit before tax oncome Invetedasets Netnewtee groeingases Netrewloans Americas 1300 81% ores) 1.842 «7% 643 196 Switzerland 61% toe 283 08 106 23 RUBS 2: oc an mses Ss ro oc EMEA, 38 ‘Asia Pacific
Slide 54: RWA trajectory
RWA trajectory WA Erang enn combo mane imc. bo a meat anes Reply Ma ‘own mecuningcarge! had UBS ieperenon Fioaeiedee ‘Weare assesing the operational RWA Impac tom the Fenchcoss Boer matin, consutatonvh ERMA ‘Wecurrentyexpecttorefect potent lion opeatonalnskRWA mpct intaze ‘Weerpect ore viilty onthe
Slide 55: Appendix
Appendix
Slide 56: Global Wealth Management
Global Wealth Management . Prof betoretax ae 3 Costncome aio ee od i Operating ees 1 ireome [esr toms tan ats AP vor 356 = ne = a & seer ait pais cee 1m eer sassiyssue 12555 oa tm RUBS eeere ome
Slide 57: Global Wealth Management
Global Wealth Management sets Ey Feegeneatng Netnewtee grrssinganes UBS ae eT Devos: es momo 1067 aon a5 avons ¥ a:
Slide 58: Personal & Corporate Banking (CHF)
Personal & Corporate Banking (CHF) . . 2 Proftbetoretax erate mance My : can Ccovincome rata os i oe peratng py iecome r eee si sen say 30 jor ions a a | Aeunon stntedeciy operating a = aanaz 229 ass 233721 RUBS tcorwmen sees scram wens
Slide 59: Personal & Corporate Banking (CHF)
Personal & Corporate Banking (CHF) Loans 2h Acive DigtalBankingcens PesonatBanking so Mobile dankigloginshare inesmert pods es 3 heoninong = Pesonatbanking Branches Investment roots i ea Ed UBS
Slide 60: Asset Management
Asset Management Proftbetoretax operating iecome operating r oe ‘ epee: sane aos 38 BUBS 1 eeeecey weeres common nas cone
Slide 61: Asset Management
Asset Management irvesesassets mbrreaon cae 7 an tone mos al = ae e be i UBS ested assets by bybanen ine Invetedassers
Slide 62: Investment Bank
Investment Bank Proftbetoretax operating operating bubs sass Costncome ratio Retunon stoutedequty
Slide 63: Investment Bank
Investment Bank GlobatBanking cee wie lobatnarkets at income = abe 78 gag 0 P teas Globatnarkets ircome 5220 4 minimis, Ha SBUBS 1020: Rekweighted Leverageratio enominito. aay averagevan! 4 ow
Slide 64: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized. UBS Group AG By: _/s/ David Kelly_______________ Name: David Kelly Title: Managing Director By: _/s