Ubs Group Ag · SIX:UBSG
Ubs — Debt Investor Presentation (March 2025)
49 slides from Ubs's debt investor presentation, Mar 17, 2025
Slide 1: Full-year and fourth quarter 2024 Fixed Income investor presentation
Full-year and fourth quarter 2024 Fixed Income investor presentation This document should be read in conjunction with the Fourth quarter 2024 report and earnings presentation, the UBS Group Annual Report 2024 and the 31 December 2024 Pillar 3 Report available on ubs.com/investors 17 March 2025
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 4Q24 and Investor Group balance FY24 financial update sheet performance Slides 3-5 Group – Slide 7-14 Slides 23-27 Divisional – Slides 16-21 2
Slide 4: Continued positive operating leverage in 4Q24 on higher revenues and lower costs
Continued positive operating leverage in 4Q24 on higher revenues and lower costs Underlying, bn Revenues Operating expenses Profit before tax Underlying 4Q24 FY24 +6% PBT 1.8bn 8.8bn 11.1 (6%) 10.4 9.7 RoCET1 7.2% 8.7% 9.1 +198% Cost / 81.9% 79.5% income 1.8 Reported Net profit 0.8bn 5.1bn 0.6 EPS 0
Slide 5: Strong execution in 2024, delivering ahead of plan
Strong execution in 2024, delivering ahead of plan Underlying RoCET1 Cumulative gross cost saves Non-core and Legacy RWA CET1 capital ratio 8.7% 7.5bn 63bn ~14% 14.3% ~5.9bn Mid-single digit 41bn FY24 FY24 actual YE24 YE24 actual YE24 based YE24 actual Guidance YE24 actual guidance guidance on natur
Slide 6: 2024 key messages
2024 key messages Delivered strong full-year Net profit 5.1bn financial performance Underlying profit before tax 8.8bn Underlying RoCET1 8.7% Franchise strength continues to drive Group invested assets 6.1trn, +7% YoY, GWM NNA 97bn, AM NNM 45bn, client momentum IB underlying revenues +23% YoY, CHF >
Slide 7: Investor update: Group
Investor update Group 36 UBS
Slide 8: Executing on our proven strategy to deliver for all stakeholders
Executing on our proven strategy to deliver for all stakeholders − Balance sheet for all seasons and strong capital position Balance sheet for − Disciplined risk management and resource usage with focus on sustainable growth in all seasons asset gathering businesses − Capital efficient business mode
Slide 9: Unique globally diversified model focused on asset gathering businesses
Unique globally diversified model focused on asset gathering businesses Revenue mix by business vs North American and European GSIBs Revenue mix by region UBS1 North American & European GSIB average2 UBS3 APAC Americas ~60% ~20% EMEA 46bn WM + AM WM + AM Switzerland Wealth and Asset Management Perso
Slide 10: On track to substantially complete integration by end-2026
On track to substantially complete integration by end-2026 2023 – 2024 2025 – 2026 2027+ ✓ 2024 key achievements Key priorities 58% ✓ Completed parent and Swiss − Substantially complete the migration of Swiss Driving Gross cost saves bank mergers and established Business by year-end 2025, with all r
Slide 11: On track to deliver on our cost and profitability ambitions in our core businesses
On track to deliver on our cost and profitability ambitions in our core businesses Underlying cost / income ratio Underlying RoAE GWM P&C AM IB 85% ~15% 80% 78% <70% 73% <70% 10% 57% 59% <50% (5%) 2H23 FY24 2026 2H23 FY24 2026 2H23 FY24 2026 2H23 FY24 Through- exit rate exit rate exit rate the cycle
Slide 12: Achieved 58% of gross cost save ambition, on track to ~13bn by year-end 2026
Achieved 58% of gross cost save ambition, on track to ~13bn by year-end 2026 Cumulative annualized exit rate Underlying Cumulative integration- gross cost reductions operating expenses related expenses2 USD bn / % of expected cumulative total USD bn USD bn / % of expected cumulative total (~10%) / (
Slide 13: Growth in core business profitability to drive returns
Growth in core business profitability to drive returns Underlying RoCET1 Illustrative ~15% ~10% 8.7% ~ Accelerated Underlying Tax rate ~23% Cost saves + Underlying Tax rate ~20% cost saves, pre-tax loss higher pre-tax loss continued ex-litigation volumes and ex-litigation business less
Slide 14: Rebuilding profitability and positioning for sustainable growth post-integration
Rebuilding profitability and positioning for sustainable growth post-integration Group underlying return on CET1 capital Illustrative Underlying cost / income 72%1 91% 80% <70% ratio ~18% 17% ~15% ~13% ~10% 9% 3% FY22, 2H23 FY24 FY25e FY26e 2026e FY28e, reported exit rate reported Forward-looking gu
Slide 15: Reiterating our financial targets and long-term ambitions
Reiterating 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 rati
Slide 16: Investor update: Business divisions
Investor update Business divisions 15
Slide 17: GWM – Capitalizing on integration and growing the platform
GWM – Capitalizing on integration and growing the platform Select 2024 2025-2026 Ambitions achievements priorities Stay close to clients and Capitalize on scale Restore US profitability grow the platform through integration and position for growth >5trn 4.9bn Invested assets Underlying PBT by 2028 L
Slide 18: GWM Americas – Strong franchise with upside on profitability
GWM Americas – Strong franchise with upside on profitability Strong client franchise supported Taking action to improve operating leverage and Key levers by advice-led solutions profit sustainability As of 31.12.24 PBT margin 1 Build on strong positioning with UHNW and Family Offices 2.1trn 2 Drive
Slide 19: P&C – A core pillar of our strategy and reliable partner to the Swiss economy
P&C – A core pillar of our strategy and reliable partner to the Swiss economy Select 2024 2025-2026 Ambitions achievements priorities Stay close Capitalize on Drive productivity and to our clients integration benefits efficiency CHF 2.7bn Underlying PBT Continue providing Opportunities from Optimize
Slide 20: AM – Driving focused growth and improving operating leverage
AM – Driving focused growth and improving operating leverage Select 2024 2025-2026 Ambition achievements priorities Deliver differentiated Capture alternatives Drive efficiencies and and scalable offering growth opportunity transform the platform 45bn NNM Further scale SMA and Unlock benefits from C
Slide 21: IB – Integration complete, unlocking opportunities for long-term value
IB – Integration complete, unlocking opportunities for long-term value Select 2024 2025-2026 Ambition achievements priorities Unlock full value of Support clients and Resource Record integration grow market share discipline Market share in Cash Equities1 Deliver added products, Build on market share
Slide 22: NCL – Run-down well ahead of schedule
NCL – Run-down well ahead of schedule Reducing complexity Underlying operating expenses excl. litigation Risk-weighted assets bn bn (52%) ~6.1 86 66% books closed Op. since June 2023 Risk 30 4Q24 Target: >95% by YE26 annualized: 2.2bn ~44 41 2.7 42% ~1.8 Credit and 56 27 ~25 ~29 IT apps decommission
Slide 23: Group balance sheet
Group balance sheet 36 UBS
Slide 24: Disciplined management of capital, liquidity and funding
Disciplined management of capital, liquidity and funding 4Q24 Capital 14.3% 13.5% - Group CET1 ratio to remain ~14%, total going concern to increase to Group Parent bank ~18% by 2029 CET1 capital ratio CET1 capital ratio - 13bn of capital repatriated in 4Q24 to UBS AG; 7bn from Credit Suisse Interna
Slide 25: Funding overview
Funding overview Group funding bn 786 1,330 1,191 4Q24, QoQ 1% 1% 1% 100% − (1.9bn), mainly driven by total comprehensive 85bn income attributable to shareholders of (1.9bn), shareholder equity including net profit of 0.8bn and OCI of (2.6bn) 60% 63% 67% Securities financing 346bn − Of which short-t
Slide 26: Capital markets issuances and redemptions
Capital markets issuances and redemptions Issuances and redemptions1 Upcoming maturities and first calls1,2 Issuances FY24+2025 year-to-date USD bn USD bn As of 17.3.25 AT1 HoldCo Covered Bonds OpCo 2024 USD 5.5bn USD 7.3bn CHF 0.6bn USD 1.3bn 97 SGD 1.3bn EUR 4.0bn EUR 3.8bn EUR 1.5bn CHF 0.3bn JPY
Slide 27: Long-term wholesale funding diversification
Long-term wholesale funding diversification Group funding 4Q24 Total long-term wholesale funding: 163bn Covered Bonds Other 5% <1 year CHF 7% >5 years 21% 4% OpCo 21% 29% By By source By maturity1 EUR 29% currency USD AT1 HoldCo 59% 9% 65% 1-3 years 3-5 years 32% 18% As of quarter-end, does not incl
Slide 28: Liquidity
Liquidity Liquidity coverage ratio1,2 quarterly averages Average high-quality liquid assets, bn − Balance efficiency with resiliency and safety 230 257 368 416 423 378 361 332 − Expect to operate at below 4Q24 level going forward, Net cash outflows3, bn reflecting continued efforts to manage towards
Slide 29: Appendix: Group balance sheet and credit quality
Appendix Group balance sheet and credit quality 28
Slide 30: Balance sheet
Balance sheet For the quarter-end 4Q24 1,565 1,565 54 a 1. Cash and balances at central banks 15 a. Short-term borrowings2,3 1 242 b 2. Loans and advances to customers b. Securities financing transactions 3. Securities financing transactions at amortized cost at amortized cost c. Customer deposits 4
Slide 31: A balance sheet for all seasons as a key pillar of our strategy
A balance sheet for all seasons as a key pillar of our strategy USD bn, except where indicated USD bn, except where indicated 4Q24 3Q24 4Q23 QoQ YoY 4Q24 3Q24 4Q23 QoQ YoY Total assets 1,565 1,624 1,717 (4%) (9%) Regulatory capital o/w: Cash and balances at central banks 223 243 314 (8%) (29%) CET1
Slide 32: Deposits
Deposits A well diversified deposit base 4Q24 Total deposits: 746bn Other 9% Demand EUR 30% 10% Time P&C deposits USD 37% 40% 42% By By By client type currency segment GWM 63%1 CHF Sweeps Retail savings 40% 6% 24% This slide has been updated on 17.3.25 following publication of the UBS Group Annual R
Slide 33: High-quality loan portfolio
High-quality loan portfolio Loans and advances to customers On-balance sheet, 4Q24 Other 9% Corporates2 Mortgages1: 332bn, ~50% LTV 8% › Swiss mortgages make up the majority of the portfolio Lombard: 148bn › Fully collateralized, with daily monitoring of margin requirements 580bn Mortgages1 Corporat
Slide 34: Credit loss expense / (release) and credit-impaired exposures
Credit loss expense / (release) and credit-impaired exposures Credit loss expense / (release)1 ECL coverage ratio for core loan portfolio (stage 3)4 USD m On balance sheet 4Q23 1Q24 2Q24 3Q24 4Q24 GWM (8) (3) (1) 2 (14) 24% P&C 85 44 103 83 175 23% IB 48 32 (6) 9 63 22% 22% NCL 15 36 (1) 28 6 Other2
Slide 35: UBS Group AG capital requirements and eligibility criteria
UBS Group AG capital requirements and eligibility criteria Group consolidated requirements Grandfathering rules Going concern RWA LRD Gone concern RWA LRD Any going concern-eligible capital above the minimum requirement can be counted towards Minimum capital 4.50% 1.50% Minimum gone-concern1 10.73%
Slide 36: Maintaining a strong capital position
Maintaining a strong capital position 185.4bn 37.2% 12.2% Gone concern: 97.7bn Gone concern: 19.6% Gone concern: 6.4% Total loss-absorbing capacity: 25.5% Total loss-absorbing capacity: 8.75% Going concern: 87.7bn Going concern: 17.6% Going concern: 5.8% o/w CET1 o/w CET1 o/w CET1 Going concern: 14.
Slide 37: CET1, RWA and LRD QoQ walk
CET1, RWA and LRD QoQ walk CET1 capital Risk weighted assets bn bn (4%) (4%) 519.4 1.0 2.2 0.0 498.5 (8.3) (0.1) (14.6) 74.2 (1.0) (0.9) 71.4 (1.8) (0.1) 3Q24 Credit and Non- Market risk Operational Currency 4Q24 counterpartycounterparty- risk effects credit risk related risk Leverage ratio denomina
Slide 38: Balance sheet optimization funds profitable growth
Balance sheet optimization funds profitable growth Risk-weighted assets bn CET1 14.3% 14.3% ~14% capital ratio Basel III finalization ~1bn ~5 ~510 8 ~15 ~0 +/- 499 500 (7) Increases in core businesses expected to be broadly offset o/w: ~(10) by decreases in NCL − FRTB +9bn1 − Credit-risk (1)bn YE24
Slide 39: Synthetic Risk Transfers (SRT)
Synthetic Risk Transfers (SRT) UBS’s strategy and risk management with respect to securitization activities − Synthetic securitization exposures in the banking book are aimed at − Such transactions usually comprise first loss protection provided by a third reducing or limiting risk and commensuratel
Slide 40: UBS Liquidity & Funding (Risk Management) Framework
UBS Liquidity & Funding (Risk Management) Framework Liquidity coverage ratio Net stable funding ratio Group Treasury • Proposes the liquidity and funding (L&F) strategy • Maintains the UBS L&F risk management framework, 100% 100% together with the 2nd line of defence, including the BCBS REQUIREMENT
Slide 41: Credit ratings peer comparison (operating company)
Credit ratings peer comparison Long-term senior unsecured debt – operating company, as of 15.3.25 MOODY’S S&P FITCH Baa2 Baa1 A3 A2 A1 Aa3 Aa2 Aa1 BBB- BBB BBB+ A- A A+ AA- AA BBB- BBB BBB+ A- A A+ AA- AA UBS Barclays BNP BoA Citi DB GS HSBC JPM MS SocGen [No arrow] Review for downgrade Outlook nega
Slide 42: Credit ratings peer comparison (holding company)
Credit ratings peer comparison Long-term senior unsecured debt – holding company, as of 15.3.25 MOODY’S S&P FITCH Ba1 Baa3 Baa2 Baa1 A3 A2 A1 Aa3 BB+ BBB- BBB BBB+ A- A A+ AA- BB+ BBB- BBB BBB+ A- A A+ AA- UBS Barclays BNP1 BoA Citi DB1 GS HSBC JPM MS SocGen1 [No arrow] Review for downgrade Outlook
Slide 43: Ratings on main UBS entities
Ratings on main UBS entities MOODY’S S&P FITCH UBS Group AG Long-term A3/Developing A-/Stable A/Stable Long-term Aa2/Negative A+/Stable A+/ Stable UBS AG Short-term P-1 A-1 F1 Long-term A+/Stable A+/ Stable UBS Switzerland AG Short-term A-1 F1 Long-term Aa3/Negative A+/Stable A+/ Stable UBS Europe S
Slide 44: FY24 redemptions
FY24 redemptions ISIN Instrument Currency Notional (bn) Coupon Rate Issuance Date Call/Maturity CH0459297435 HoldCo CHF 0.400 0.875% 30.01.19 30.01.24 US90352JAF03 AT1 USD 2.500 7.000% 31.01.19 31.01.24 US22550L2E081 OpCo USD 0.906 0.495% 02.02.21 02.02.24 US22550UAB701 OpCo USD 0.925 SOFR + 39bps 0
Slide 45: FY24 (continued) and YTD 2025 redemptions
FY24 (continued) and YTD 2025 redemptions ISIN Instrument Currency Notional (bn) Coupon Rate Issuance Date Call/Maturity CH0488506673 AT1 AUD 0.700 4.375% 27.08.19 27.08.24 CH0495570928 AT1 SGD 0.750 4.850% 04.09.19 04.09.24 US22546QAP28 OpCo USD 2.808 3.625% 09.09.14 09.09.24 US225401AM02 HoldCo US
Slide 46: FY24 issuances
FY24 issuances ISIN Instrument Currency Notional (bn) Coupon Rate Issuance Date Call/Maturity US902613BJ61 HoldCo USD 1.750 5.428% 08.01.24 08.02.29 US902613BH06 HoldCo USD 2.250 5.699% 08.01.24 08.02.34 CH1305916897 HoldCo EUR 1.250 4.125% 09.01.24 09.06.32 CH1321481462 Covered bond CHF 0.180 1.543
Slide 47: FY24 (continued) + YTD 2025 issuances
FY24 (continued) + YTD 2025 issuances ISIN Instrument Currency Notional (bn) Coupon Rate Issuance Date Call/Maturity CH1348614152 HoldCo CHF 0.335 2.113% 22.05.24 22.05.29 CH1348614202 Covered bond CHF 0.150 1.508% 28.05.24 28.05.29 CH1357852636 AT1 SGD 0.500 5.600% 24.06.24 21.12.29 CH1357852636 AT
Slide 48: Legal structure of the UBS Group
Legal structure of the UBS Group 1 Other non-US subsidiaries are held either directly or indirectly by UBS AG; 2 Of which 98% held by UBS AG and 2% held by UBS Group AG; 3 Of which 99% directly held by UBS Americas Inc. and 1% 47 held by UBS Americas Holding LLC; 4 Other US subsidiaries are typicall
Slide 49: 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