Slide 1: Third quarter 2023 Financial results
Third quarter 2023 Financial results 7 November 2023
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 achievements performance Sergio P. Ermotti, Group CEO Todd Tuckner, Group CFO 2
Slide 4: 3Q23 key achievements
3Q23 key achievements Delivered underlying profitability with continued strong flows Stayed close to clients as we helped them navigate challenging markets Executed on our integration at pace while planning for the next milestones Reinforced our balance sheet for all seasons 3
Slide 5: Strong progress amid challenging market conditions
Strong progress amid challenging market conditions Underlying profit / (loss) before tax 3Q23 USD bn • Underlying revenues +6% QoQ • Underlying operating 1.1 expenses (5%) QoQ 0.8 0.7 0.9 0.8 14.4% 844m CET1 capital ratio Underlying 0.1 0.2 PBT (0.1) (0.1) (0.2) 195bn 89.3% (0.6) (0.7) Total loss-ab
Slide 6: Delivering on integration priorities
Delivering on integration priorities 1 2 3 4 Franchise stabilization Funding cost Balance sheet Cost base right-sizing and client win-back efficiencies optimization +22bn ~450m (52bn) ~3bn Net new money, Gross funding cost LRD reduced in Annualized exit rate gross GWM efficiencies delivered in 3Q NC
Slide 7: Client trust and confidence demonstrated by strong flows in GWM and P&C
Client trust and confidence demonstrated by strong flows in GWM and P&C Wealth management Wealth management Swiss businesses Net new money / net new assets, USD bn1 Net new deposits, USD bn1 Net new deposits, CHF bn 28 16 18 17 13 14 9 8 5 3 3 5 2 4 3 4 (3) (2) (0) (7) (7) (5) (19) (30) (27) (29) (3
Slide 8: Accelerating the rundown of Non-core and Legacy assets
Accelerating the rundown of Non-core and Legacy assets Finalized perimeter with further active unwinds Rundown based on natural run-off profile Credit and market risk RWA1 RWA bn bn Natural run-off profile to be accelerated with >80% driven by active unwinds when economically accretive active unwind
Slide 9: Integration planning and execution well underway
Integration planning and execution well underway Select 3Q achievements 4Q23 key priorities 2024 milestones ✓ Commenced onboarding of − Legal entity consolidation 1. Execute legal mergers of significant subsidiaries CS employees and flows onto planning UBS systems and platforms 2. First waves of cli
Slide 10: Working towards ~15% RoCET1
Working towards ~15% RoCET1 Underlying return on CET1 capital Illustrative ~15% ~15% ~14% underlying RoCET1 CET1 capital ratio 2026 exit rate over medium-term >10bn <70% gross cost saves by underlying cost/income end-2026 vs. FY22 ratio, 2026 exit rate Capital returns Committed to existing progressi
Slide 11: Financial performance
Financial performance Todd Tuckner, Group CFO 10
Slide 12: Update on new group structure and reporting changes
Update on new group structure and reporting changes Divisional structure as of 3Q23 Reporting changes 3Q23 Global Personal & Introduction of underlying reporting definition Wealth Management Corporate Banking 4Q23 Introduction of GWM NNM plus dividends and interest as well as Asset Investment GWM NN
Slide 13: 3Q23 underlying PBT of 0.8bn, higher revenues and lower costs QoQ
3Q23 underlying PBT of 0.8bn, higher revenues and lower costs QoQ Profits 3Q23 bn 1.0 +1.4 (255m) (785m) PBT Net profit 0.5 0.8 Estimated for three months combined, refer 0.4 to slide 29 for details 0.6 (4.0%) 1.1% RoCET1 RoCET1 underlying 2Q23 included 548m day-1 ECL recognition (2.1) (0.3) on acqu
Slide 14: 3Q23 underlying total revenues 10.7bn, up 6% QoQ
3Q23 underlying total revenues 10.7bn, up 6% QoQ Total revenues bn 1.0 11.7 ~450m QoQ benefit in Group Items from fully repaying PLB and ELA+ in August, ~100m residual cost in 3Q +6% 0.6 10.7 958m Pull to par and other PPA effects not 10.1 0.1 0.0 0.2 reflected in underlying in 3Q (0.0) (0.2) ~650m
Slide 15: PPA pull to par overview and revenue recognition
PPA pull to par overview and revenue recognition Accretion of PPA adjustments on financial instruments Recognized Opening balance Remaining balance to USD bn June 3Q23 as of 12.6.23 (close) be recognized GWM ~1.5 (0.1) (0.2) ~1.2 P&C ~4.8 (0.2) (0.4) ~4.3 IB ~2.12 (0.1) (0.3) ~1.8 Group Items ~0.9 0
Slide 16: 3Q23 underlying operating expenses 9.6bn, down 5% QoQ
3Q23 underlying operating expenses 9.6bn, down 5% QoQ Operating expenses bn 2.1 11.6 13k Headcount reduction vs. Dec-22 pro forma2 (5%) 10.0 (0.2) 0.0 9.6 >1bn (0.0) (0.1) Integration-related expenses (0.1) (0.0) expected in 4Q 2Q23 GWM P&C AM IB NCL Group Items 3Q23 Integration- 3Q23 estimated unde
Slide 17: Maintaining strong capital and liquidity, and diversifying sources of funding
Maintaining strong capital and liquidity, and diversifying sources of funding 3Q23 achievements Capital and leverage ratios Liquidity 3Q23 3Q23 − Issued 4.5bn of TLAC and 3bn of benchmark 14.4% 197% OpCo, with strong investor demand CET1 capital ratio LCR3 Guidance ~14% − Deposit inflows totaling 33
Slide 18: Global Wealth Management
Global Wealth Management 3Q23 3Q23 3Q23 underlying vs 2Q23 estimated underlying USD m, except where indicated underlying reported USD bn Total revenues 5,492 5,810 5.5 5.5 Total revenues 5,492m, broadly stable on Net interest income 1,648 1,946 higher recurring net fee income, offset by Total lower
Slide 19: Personal & Corporate Banking (CHF)
Personal & Corporate Banking (CHF) 3Q23 3Q23 3Q23 underlying vs 2Q23 estimated underlying CHF m, except where indicated underlying reported CHF bn Total revenues 2,159 2,556 2.1 2.2 Revenues 2,159m, up slightly as lower NII was Net interest income 1,189 1,550 offset by higher non-NII revenue Total R
Slide 20: Asset Management
Asset Management 3Q23 3Q23 3Q23 underlying vs 2Q23 estimated underlying USD m, except where indicated underlying reported USD bn Total revenues 755 755 Net management fees 737 737 Total revenues 755m, up slightly QoQ driven 0.7 0.8 by higher net management and performance Performance fees 18 18 Tota
Slide 21: Investment Bank
Investment Bank 3Q23 underlying vs 3Q22 3Q23 3Q23 3Q22 USD m, except where indicated reported USD bn underlying reported (6%) Global Banking revenues +36% YoY Total revenues 1,900 2,151 2,032 2.0 1.9 − Advisory +40% YoY mainly due to higher Global Banking 447 698 329 M&A revenues Total Advisory 191
Slide 22: Non-core and Legacy
Non-core and Legacy 3Q23 3Q23 USD bn USD m, except where indicated underlying reported (6) PBT (1,932m), (1,014m) underlying which excludes 84 77 integration-related expenses Total revenues 350 350 RWA Credit loss expense / (release) 125 125 Total revenues 350m, driven by gains from early unwinds, p
Slide 23: On track to deliver our integration goals
On track to deliver our integration goals Delivered underlying profitability with continued strong flows Stayed close to clients as we helped them navigate challenging markets Executed on our integration at pace while planning for the next milestones Reinforced our balance sheet for all seasons 22
Slide 24: Appendix
Appendix 23
Slide 25: UBS Group results
UBS Group results USD m, except where indicated 3Q23 2Q23 1Q23 4Q22 3Q22 Total revenues 11,695 9,540 8,744 8,029 8,236 Negative goodwill 28,925 Credit loss expense / (release) 306 623 38 7 (3) Operating expenses 11,644 8,486 7,210 6,085 5,916 Operating profit / (loss) before tax (255) 29,356 1,495 1
Slide 26: UBS Group 3Q23 underlying results
UBS Group 3Q23 underlying results UBS Group AG GWM P&C AM IB NCL Group USD m, except where indicated Items Operating profit / (loss) before tax as reported (255) 1,007 1,124 31 (230) (1,932) (255) o/w: Pull to par and other PPA effects 958 318 446 251 (57) o/w: Integration-related expenses (2,003) (
Slide 27: CET1 capital and RWA walk
CET1 capital and RWA walk CET1 capital Risk weighted assets bn bn (2%) (2%) 80.3 556.6 0.4 0.0 (0.3) 546.5 (4.9) (0.1) (5.5) (0.6) 78.6 Expect regulatory-driven (0.8) updates to credit and counterparty credit risk models will result in an RWA increase of ~2bn in 4Q23 318.5 2Q23 PBT Current tax Other
Slide 28: Capital and leverage ratios
Capital and leverage ratios Total TLAC 195bn 35.7% 12.1% 103bn HoldCo 18.9% 6.4% TLAC: 25.6% TLAC: 8.8% Total T1 capital 92bn 16.8% 5.7% 13bn AT1 2.4% 0.8% Going concern: 14.9% Going concern: 5.0% CET1 capital CET1 leverage CET1: 10.6% ratio guidance: 14.4% ratio guidance: 4.9% 79bn CET1 >4.0% CET1:
Slide 29: Finalized Non-core and Legacy perimeter as of 30.9.23
Finalized Non-core and Legacy perimeter as of 30.9.23 RWA versus 2Q23 pro forma RWA and LRD by instrument and risk type bn bn (6bn) 84 77 55 30 30 30 77 156 77 (1) Equities 4 18 54 54 47 Macro 8 2Q23 Scope 2Q23 Operational 2Q23 3Q23 30 Loans 15 Credit risk 39 pro forma changes1 finalized risk RWA to
Slide 30: Reconciliation of estimated underlying combined results for 2Q23
Reconciliation of estimated underlying combined results for 2Q23 Credit loss expense / USD bn Revenues Operating expenses Profit before tax (release) UBS sub-group1 (IFRS) 8.4 0.0 6.8 1.5 Credit Suisse sub-group (US GAAP)2,3 (0.7) 0.1 9.2 (10.0) UBS sub-group exclusions from underlying results4 (0.5
Slide 31: 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