Slide 1: Second quarter 2022 Financial results
Second quarter 2022 Financial results 26 July 2022
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 1 2 3 Key messages Financial performance Q&A Ralph Hamers, Group CEO Sarah Youngwood, Group CFO 2
Slide 4: Key messages
Key messages We are helping our We are executing our We delivered strong reported clients navigate strategy to drive sustainable results and good underlying challenging markets growth and efficiency performance 3
Slide 5: Helping our clients navigate challenging market conditions
Helping our clients navigate challenging market conditions Market, macroeconomic, Invested assets Invested assets Loans Deposits Global Markets revenues and geopolitical factors GWM AM GWM + P&C GWM + P&C IB Equities in bear market territory High inflation and monetary tightening Russia’s invasion o
Slide 6: Delivering on the core elements of the ecosystem for investing
Delivering on the core elements of the ecosystem for investing Private markets SMAs2 Sustainable finance My Way Investment Products Net new commitments1 Net new money from SMA Invested assets in S&I3, Net inflows into mandates Net new investment GWM initiative in the US, AM Group through My Way, GWM
Slide 7: Leveraging technology as a differentiator while improving efficiency
Leveraging technology as a differentiator while improving efficiency UBS key4 Circle One A new, purely digital, segment agnostic A global ecosystem app, connecting product line in Switzerland 17% of non-clients are aware of UBS key42 clients to top insights and actionable ideas ✓ Relevant, smart, in
Slide 8: We are executing our plans across the regions
We are executing our plans across the regions Americas Switzerland EMEA APAC − 37% YoY increase in GWM NII − Record loan balances of − 9% YoY decline in − +3.3bn NNFGA in 2Q22 in 2Q22; 4% QoQ increase in CHF 142bn in P&C operating expenses − UBS Securities stake increased GWM loan balances driven by
Slide 9: We delivered strong reported results and good underlying performance
We delivered strong reported results and good underlying performance 8
Slide 10: Financial performance
1 Key messages 2 Financial performance 3 Q&A Financial performance Sarah Youngwood, Group CFO 9
Slide 11: 2Q22 net profit USD 2.1bn; 18.9% RoCET1
2Q22 net profit USD 2.1bn; 18.9% RoCET1 1 2Q22 includes a gain of 848m on the sale of our shareholding in Mitsubishi Corp.-UBS Realty Inc. and 2Q21 includes a gain of 37m on the sale of Fondcenter, subsequently renamed Clearstream 10 Fund Centre; 2 Over the cycle; 3 Annualized; NNFGA exclude the eff
Slide 12: 2Q22 Group results by region
2Q22 Group results by region Group total revenues Group profit before tax Group cost / income ratio excluding litigation Excludes 0.6bn revenues, of which 848m from the gain on the sale of our shareholding in Mitsubishi Corp.-UBS Realty Inc., 0.0bn expenses and 0.5bn PBT from items managed at the Gr
Slide 13: Global Wealth Management
Global Wealth Management Profit before tax, m PBT (11%), or (2%) ex-litigation vs. a record 2Q in the prior year as lower revenues were only partly offset by lower expenses Total revenues (2%) as higher net interest income was more than offset by lower recurring net fee and transaction-based income
Slide 14: Asset Management
Asset Management Profit before tax, m PBT 959m, driven by 848m gain on sale of joint venture announced in 1Q22; (49%) excluding gains on sales in 2Q22 and 2Q211 Total revenues (17%) excluding gains on sales, reflecting lower net management fee driven by negative market performance and FX, and lower
Slide 15: Investment Bank
Investment Bank Profit before tax, m PBT 410m; RoAE 12%, or 15% ex-litigation Global Markets revenues +10%; +4% excl. 2Q21 loss on the default of a prime brokerage client ₋ Execution Services (10%) driven by lower Cash Equities revenues in APAC ₋ Derivatives & Solutions +9% led by Rates and FX on hi
Slide 16: Personal & Corporate Banking (CHF)
Personal & Corporate Banking (CHF) Profit before tax, m PBT 398m, (13%) YoY driven by 33m of credit loss expense vs. a 42m credit loss release in 2Q21 as well as a number of non-recurring items in 2Q21 Total revenues +2% driven by higher NII, recurring net fee income and transaction-based income Ope
Slide 17: Common equity tier 1 capital
Common equity tier 1 capital CET1 capital ratio 14.2% CET1 capital ratio 30.6.22 Guidance: ~13% 4.37% CET1 leverage ratio 30.6.22 Guidance: >3.7% 3.3bn share buybacks 1H22 Guidance: ~5bn in FY22 1 Includes currency effects of (0.6bn) and other items 16
Slide 18: Reimagining the power of investing. Connecting people for a better world.
Purpose Reimagining the power of investing. Connecting people for a better world. Client promise Vision Strategic imperatives Personalized Convene THE global ecosystem for Clients, Connections, Contributors Relevant investing where thought leadership On-time is impactful, people and ideas are Focus
Slide 19: Appendix
Appendix 18
Slide 20: Creating sustainable value through the cycle
Creating sustainable value through the cycle ESG Commercial Financial Selected aspirations Selected aspirations Targets Net-Zero >6trn 15–18% own operations (scope 1, 2) by 2025 invested assets across GWM, AM, P&C return on CET1 capital 235bn >5% growth1 70–73% invested assets aligned to net zero by
Slide 21: Group results
Group results USDm, except where indicated 2Q21 3Q21 4Q21 1Q22 2Q22 Total revenues 8,897 9,115 8,705 9,382 8,917 Credit loss expenses / (releases) (80) (14) (27) 18 7 Total operating expenses1 6,384 6,264 7,003 6,634 6,295 Operating profit / (loss) before tax 2,593 2,865 1,729 2,729 2,615 Tax expens
Slide 22: 2Q22 Group results by region
2Q22 Group results by region Americas Switzerland EMEA Asia Pacific Total revenues bn Profit before tax 0.5bn excl. bn 0.3 litigation 0.8 0.5 0.5 Operating expenses bn 3.0 1.1 1.2 0.9 Cost/income 84% excl. ratio 91% litigation 58% 71% 66% Excludes 0.6bn revenues, of which 848m from the gain on the s
Slide 23: 2Q22 Global Wealth Management results by region
2Q22 Global Wealth Management results by region Americas Switzerland EMEA Asia Pacific 0% excl. litigation Profit before tax m 2Q22 Cost/income 81% excl. 85% litigation 54% 66% 63% ratio Invested assets 1,569 241 538 460 bn Net new fee- generating assets1 (3.5) +1.1 (0.5) +3.3 bn Net new loans bn +3
Slide 24: Capital and leverage ratios
Capital and leverage ratios Refer to the “Capital management” and “Recent developments” sections of the 2Q22 report for more information; 1 The reactivation of the countercyclical capital buffer for Swiss residential mortgages is 23 expected to increase our minimum CET1 capital requirement by ~30 ba
Slide 25: Common equity tier 1 capital
Common equity tier 1 capital CET1 capital bn 1 Includes currency effects of (0.6bn) and other items 24
Slide 26: Risk-weighted assets
Risk-weighted assets Risk-weighted assets bn • +1.7bn mainly driven by asset size and • +2.0bn reflecting the remaining op. other movements, primarily related to risk increase related to the impact • +2.9bn from model updates / changes higher average regulatory and stressed of the French cross-borde
Slide 27: 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