Ubs Group Ag · SIX:UBSG
Ubs — Q1 2011 Earnings Presentation
38 slides from Ubs's earnings presentation, Apr 26, 2011
Slide 1: Form 6-K Report of Foreign Private Issuer
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 Date: April 26, 2011 Commission File Number: 1-15060 UBS AG (Registrant’s Name) Bahnhofstrasse 45, Zurich, Swi
Slide 2: Form 6-K presentation materials note
This Form 6-K consists of the presentation materials related to the First Quarter 2011 Results of UBS AG, which appear immediately following this page.
Slide 3: First quarter 2011 results
Firs t quar ter 2011 r esul ts F irs t quart er 2011 r esult s Apr il 26, 20 11
Slide 4: Cautionary statement regarding forward-looking statements
Cauti onary s tatement regar ding fo rward - looking s tatements Th is pr esentati on contains stat em ent s th at co nsti tute "forwar d-looking s tatements ," including b ut not lim ited to management's outloo k for UBS 's f inancial perfo rmance and s tatements r elating to the anticipated eff ec
Slide 5: 1Q11 highlights
1Q11 highli ghts 1 Own credit on financial li abi lities desig nated at fair val ue CHF 1.8 bill ion net pr ofit att ributabl e t o shar eh olders Diluted E PS CHF 0.47; r eturn on equ ity 15.5% Over CHF 20 billion net new money for the Gro up; CHF 11.1 b illion f or Wealth M anagement CHF 1.0 billi
Slide 6: 1Q11 - performance by business division
1Q11 - per for mance by bus iness divi sion 1 Own credit on financial li abi lities desig nat ed at fair v al ue 2 Operating pr ofi t fr om continuin g operations befo re tax
Slide 7: Net profit attributable to shareholders 1Q11 vs. 4Q10
Net prof it attri butable to s hareholder s 1Q1 1 vs. 4 Q10 4Q10 Own cr edi t1 Tax expens e / (b en ef it) 1 Q11 Pers onnel expens es No n -con trolli ng interes ts Credit los s expenses Operating income excluding own cr edit and credi t los ses Non- per s onnel expenses 1 Own credi t on fi nan ci a
Slide 8: 1Q11 operating expenses
1Q11 operating ex pen ses Higher per sonn el ex penses more th an offs et redu ced li tigation p rovis ions Pers onnel cos ts comparable to 1 Q10 levels 1Q11 pers onnel expens es in cl ude CHF 467 mil lion r el at ed t o the amort izat ion of bonus awar ds gr anted in pr ior per iods Annual s alary
Slide 9: Changes to reporting - effective 1Q11
Changes to r ep orting - ef fective 1Q111 Income lines s plit int o interes t, f ees , tradi ng and other i ncome Comparis on with the prior year quar ter T otal litigati on prov isio n char ges s hown s eparately 1 Ref er to the "Accounting and reporti ng st ructur e changes " section and "Not e 1
Slide 10: Wealth Management
(CHF mil lion) Wealth Management Oper ating income and p re -tax prof it Pr e-tax prof it increas ed 40% o n higher i nco me an d lower expens es Net n ew m oney Quarter ly average Operating income up 7% on impr oved client activit y and higher i nteres t income Reported cos ts down 4% mainly due to
Slide 11: Wealth Management - revenues
Wealth Management - revenues Revenues up 7% on higher i nteres t income and incr eas ed client activit y Inter es t F ees excluding t rans acti on-bas ed fees Tr ading Other income 13% 3% 10% 1Q11 vs 4Q10 ( CHF mill ion) I nvested as s et s ( CHF billi on) 18% Tr ansaction - bas ed fees
Slide 12: Wealth Management - gross margin
Wealth Management - gros s m ar gin1 ( bps ) 1 Operati ng income befor e credit lo ss (expens e) or recovery ( annualized) / aver age i nvested as sets ; gr oss mar gin excludes valuation adjus tments on a pr operty f und of CHF 17 mill ion in 2Q10 , CHF 28 mil lion in 1Q1 0, CHF 155 mi llion in FY0
Slide 13: Wealth Management - invested assets and NNM by region
4 Wealt h Management - invest ed as s et s and NNM by r egion1 31.3.1 1 inves ted ass ets CHF 791 billi on 1 Inv es ted as sets and net new mon ey bas ed on client domicile 2 I ncludes Wes tern E uro pe and al l other count ries not covered els ewhere 3 L atAm, M iddle E ast & Afri ca and Centr al &
Slide 14: Retail & Corporate
Retail & Corpor at e ( CHF mil lion) S table pro fits , low credi t los s expens es Op er ating incom e u p 4% as lower cr ed it los s expens es offs et lower revenues Revenues down 2% as lower interes t income was partl y off set by h igher tr ansactional f ees Credit los s expens es to taled CH F
Slide 15: Retail & Corporate - loan portfolio
Retail & Corpor at e - loan portf olio Ov er 70% o f loans outs tanding ar e secured by resi den tial mor tgages L oans , gros s ( 31.3.11) Loans s ecur ed by res idential p ropert y (31.3.11 ) 100% = CHF 13 6 billion 1 This dis tr ibution s hows the loans in the r espective L TV b uck et s. F or ex
Slide 16: Wealth Management Americas
Wealth Management Am er icas Oper ating income do wn 2% ( up 2% in USD ter ms) as cur rency eff ect s of fs et higher f ee and co mmis si on income Operati ng expenses decreased 12 % (9 % in US D terms ), m ainly due to l ower liti gat ion pro visi ons F inancial advis or attr ition near his torical
Slide 17: Wealth Management Americas - operating income
Wealth Management Am er icas - operating in co me Cur rency eff ects of fs et increas e in underl ying USD f ee & commis s ion income CHF m illion US D mill ion Int er est F ees Commi ss ions Tr ading Other income & CL E YoY ( 1%) YoY +13% QoQ +2 % QoQ ( 2%)
Slide 18: Wealth Management Americas - financial advisor productivity
Wealth Management Am er icas - financial advis or p roductivi ty Im proved f inancial advis or pr oductivity in US dol lar term s Revenue per F A, annualized (thou sand) Inves ted ass ets per FA ( milli on)
Slide 19: Global Asset Management
Global As set M anagement Operati ng income decreas ed 8 % Net management f ees decreas ed prim ar ily in A &Q, Global Real Es tate and F und Serv ices Per form ance f ees decreas ed by CHF 19 mi llion compar ed with a very str ong 4Q10 Oper ating expens es down, mainly due to l ower pers onnel expe
Slide 20: Investment Bank
Inves tment Bank CHF 1 bil lion pr e- tax prof it excluding o wn credit1 1 Own cr edit on f inancial liabil ities d es ignated at f air value ( CH F 133 mi llion charge i n 1Q11) Oper ating income excludi ng own credit 1 Pre -tax prof it and cos t / income r at io (CHF m illion) Pr e-tax prof it exc
Slide 21: Equities revenues (vs. 1Q10)
Equit ies r ev enu es (v s. 1Q10 ) Cash: str ong perf ormance in As ia Pacif ic and the US par tially of fs et by lower revenues i n Eur ope, M iddle Eas t and Af rica Derivati ves: Der ivatives revenues d ecr eas ed s lightly des pite a s tro nger perf ormance in As ia Pacif ic; 1Q11 does not inclu
Slide 22: FICC revenues (vs. 1Q10)
FICC revenues (vs . 1Q10) Macro : FX revenues marg inally down on lower client activ ity Good r esult s in non -linear rates were of fs et by a decline in lin ear rates due to market u ncer tainty and po or liqu idity Credit : very s tro ng quarter as s tructu red credit and f low tr ading s aw a r
Slide 23: Investment banking revenues (vs. 1Q10)
Inves tment banking revenues ( vs . 1Q10) Adv isor y: revenues increas ed 31% v er sus a mark et fee pool incr eas e of 2 1% Capital mar kets: Equit ies: r evenues declined 3 3% due to lower part icipation in I PO's an d follo w- ons F ICC: revenues virtu al ly unchanged Other: Ri sk m an agem ent c
Slide 24: Corporate Center and SNB StabFund option revaluation
The revaluati on of ou r optio n to buy the S NB StabFund co ntribut ed CHF 192 mil lion in 1 Q11 Option f air value CHF 1 .9 billio n (USD 2 .1 billio n) on 31.3 .11 Net income f rom tr easur y act ivities decreased f rom t he prior quarter Operating expens es n ot allocated to the bus ines s d ivi
Slide 25: Capital position - Basel 2
Capit al posi tion - Bas el 2 Basel 2 r is k -wei ghted ass ets increased CHF 4.5 billi on to CHF 203. 4 billion as at 31.3.1 1 USD 500 m illion h ybrid t ier 1 ins tr ument with f irs t call date in June 2011 1 31.3.11 ti er 1 capital and ti er 1 ratio al ready ref lect redemption (CHF bil lion) CH
Slide 26: Capital position - Basel 2.5
Capit al posi tion - Bas el 2.5 Basel 2 .5 RWAs of CHF 279 bill ion fo r the Gro up Bas el 2.5 t ier 1 capital of CHF 35.2 bi llion T ier 1 deducti on of CHF 1 .2 billio n due to additi onal deduction f or low - rated s ecur itization expos ur es Pr o-form a Bas el 2.5 tier 1 ratio o f 12.6% on 31.3
Slide 27: Movements in IFRS equity
Movements in IFRS equity orehich of which IFRS equity Total attributable to a ene eee UBS shareholders re tstaretet es (CHF million) Net profit 1,809 1,807 2 Foreign currency trandation of foreign operations (OC) (78) (182) 104 Finandal investments available-for-sale (OC) (121) (121) 0 Cash flow hed
Slide 28: Appendix
Appendix &% UBS
Slide 29: Invested assets
Inves ted ass ets Wealth Management Wealth M anagement Amer icas Glob al Ass et M an agem ent Retail & Corpor ate
Slide 30: BIS regulatory capital (Basel 2)
31.3.11 BIS regulator y cap ital (Bas el 2) 1 I ncludes CHF 0.6 billi on due to changes in deduction i tems, CHF 0.3 billi on due to oth er tier 1 chang es , part ly off set by CHF 0.4 bill ion changes i n own s hare related com ponents 2 Includes CHF 0.6 b illion du e t o chan ges in d edu ct ion i
Slide 31: Hybrid tier 1 instruments outstanding
Hybrid t ier 1 ins tr uments outs tanding1 1 All UBS hybri d tier 1 i nst ruments are s ubject to phas ing out for BI S tier 1 capital recognit ion pur pose ( 10% per annum s tarting 1 Januar y 2013) under Basel 3 2 Fixed r at e until call date, f loating r ate co upon payment th er eaf ter 3 I f in
Slide 32: Asset funding - 31 March 2011
125% cover age CHF 68 billio n sur plus CHF 116 bi llion collater al sur plus Ass et f unding - 31 Mar ch 2011 As sets L iabilities and equity Cas h, CBs, due f rom b ank s 43 L oans 267 T rading por tfol io ass ets 236 Cash coll at er al on s ecu rities borr owed and rever se repur chase agr eement
Slide 33: Balance sheet development
Balance s heet devel opment 1 I ncluding cas h collateral on d er ivative tr ansactions 2 I ncluding f inancial liabili ties d es ignated at f air value 3 P ercentages bas ed on tot al balance s heet s ize exclu ding negative r epl acement val ues ( CHF billio n) T otal excl. PRVs CHF 933 bil lion A
Slide 34: Exposure to monoline insurers, by rating
Expos ure to monoline i nsur ers , by ratin g 1 (US D billion) Credit pr otection on US s ub -prime RM BS CDOs2 o f which: f rom monolines rated in ves tment grade (BBB and above) of which: fr om mon olines rated s ub- investm ent grade (BB and below) Tot al 31.3.11 12.0 2.2 0.9 1.3 Not ional amount
Slide 35: Student loan auction rate securities
Student lo an aucti on rate s ecu rities (US D milli on) US student loan auction r at e s ecurit ies Carr ying value as of 31.1 2.10 9,784 1 I ncludes USD 4.5 bi llion ( CHF 4.1 bill ion) at carr ying valu e of s tudent loan auction rate secur ities (SL ARS) that were reclas sif ied to "L oan s and
Slide 36: Reclassified assets 31.3.11
Reclas sif ied ass ets 31.3.11 ( CHF billi on) M onolin e p rotected ass ets US s tudent loan and municipal auction rate secur ities US ref er ence linked notes Lever ag ed f inance 5.3 4.4 0.4 0.4 0.7 Ratio of car ryin g to notion al value 87% 89 % 80% 77% 8 3% Carr ying value 5.7 4. 2 0.4 0.4 0.8
Slide 37: Form 6-K incorporated by reference into registration statements
This Form 6-K is hereby incorporated by reference into (1) each of the registration statements of UBS AG on Form F-3 (Registration Numbers 33-153882; 333-156695; and 333-156695-01 to -17) and Form S-8 (Registration Numbers 333-57878; 333-50320; 333-49216; 333- 49214; 333-49212; 333-49210; 333-103956
Slide 38: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. UBS AG By: /s/ Louis Eber Name: Louis Eber Title Group Managing Director By: /s/ Sarah M. Starkweather