Ubs Group Ag · SIX:UBSG
Ubs — UBS AG (Amna, Amnd, Amtr, Amub, BDCX, BDCZ, Cefd, DJCB, Esus, Fedl, HDLB, Ifed, Iwdl, Iwfl, Iwml, Mlpb) — Bank of America Merrill Lynch Financials Conference 2011
22 slides from Ubs's conference presentation, Oct 4, 2011
Slide 1: Bank of America Merrill Lynch Financials Conference
Bank of America Merrill Lynch Financials Conference October 4, 2011 Tom Naratil Group Chief Financial Officer
Slide 2: Cautionary statement regarding forward-looking statements
1 Cautionary statement regarding forward-looking statements This presentation contains statements that constitute "forward-looking statements", including statements relating to UBS's financial performance and statements relating to the anticipated effect of strategic initiatives on UBS's business an
Slide 3: Key messages
2 Key messages UBS will report a modest net profit and positive net new money in its wealth management businesses for 3Q11 We will leverage our unique competitive advantages in wealth management while strengthening the alignment with a less complex and more focused Investment Bank Our financial, cap
Slide 4: 3Q11 preview
3 3Q11 preview Modest net profit attributable to UBS shareholders for the quarter Positive net new money in wealth management businesses in line with 2Q11 Basel 2 tier 1 capital base broadly in line with 2Q11 quarter end
Slide 5: Actions related to the unauthorized trading incident
4 Actions related to the unauthorized trading incident Wednesday 14.9.11 Thursday 15.9.11 Sunday 18.9.11 Risks resulting from unauthorized trading fully covered Media release outlining the incident and estimating loss in the range of USD 2 billion UBS discovered unauthorized trading in the Investmen
Slide 6: Leveraging competitive advantages in wealth management
5 We will leverage our unique competitive advantages in wealth management while strengthening the alignment with a less complex and more focused Investment Bank Key messages Our financial, capital and funding positions are sound UBS will report a modest net profit and positive net new money in its w
Slide 7: Complementary client-focused businesses, aligned
6 WM & WMA Retail & Corporate Global AM Clients Employees Shareholders We will leverage our unique competitive advantages in wealth management... Investment Bank UBS combines strong and complementary client-focused businesses ....while strengthening the alignment of all our businesses Clients
Slide 8: Our global wealth management business is unrivaled
7 Our global wealth management business is unrivaled We have global presence and a premier Ultra High Net Worth franchise... UBS WM Americas UBS Wealth Management Invested assets1 CHF 1,398 billion 650 748 ....in the largest established markets and in the fastest growing markets ~200 offices1 4,203
Slide 9: Wealth management franchise built on UHNW & HNW client relationships
8 Our wealth management franchise is built on relationships with sophisticated UHNW & HNW clients IB is a key contributor to our UHNW and HNW businesses Global Family Office Advisory Research Execution / risk capabilities Product development Client relevance Key wealth management client needs HNW UH
Slide 10: Why institutional clients value UBS Investment Bank
9 Why institutional clients value UBS Investment Bank Platform Capabilities and expertise Relationships Unique capability to quickly reach large and sophisticated global audience of wealthy private investors Our presence and relationships throughout the globe give us deep insight into the economic,
Slide 11: Optimizing risk-adjusted returns in the Investment Bank
10 Optimizing risk-adjusted returns in the Investment Bank Resources Capital Balance sheet Costs / People Constraints Basel 3 RWA Leverage Profitability Consideration Businesses enhancing: wealth management franchise Businesses enhancing: Investment Bank franchise Other businesses requiring justific
Slide 12: New strategy rebalances risk in the Group
11 Investment Bank Global Asset Management WM&SB Corporate Center Our new strategy will lead to a rebalancing of risk in the Group We will reduce risk and complexity in our Investment Bank... 31.12.08 Basel 2 WMA 30.6.11 Basel 3 pro-forma Indicative future Basel 3 pro-forma Historic and indicative f
Slide 13: Key messages
12 Key messages Our financial, capital and funding positions are sound UBS will report a modest net profit and positive net new money in its wealth management businesses for 3Q11 We will leverage our unique competitive advantages in wealth management while strengthening the alignment with a less com
Slide 14: Our financial position is sound
13 5.8 9.2 9.0 6.7 7.1 8.3 7.2 6.1 5.8 5.0 84% 70% 71% 88% 81% 73% 77% 107% 106% 115% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Group revenue Cost / income ratio (CHF billion) (CHF billion) (14) (39) (36) (56) (18) (4) 1 4 20 9 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Our financial
Slide 15: We have significantly reduced our risk and balance sheet
14 1 Excludes the benefit of credit protection purchased from unrelated third parties Basel 2 risk-weighted assets We have significantly reduced our risk and balance sheet Balance sheet Student loan auction rate securities Exposure to monoline insurers1 (CHF billion) (CHF billion) (CHF billion) Asse
Slide 16: Exposure to selected European sovereigns is limited
15 Our exposure to selected European sovereigns is limited Exposures to sovereigns1 in selected European countries rated AA and below2,3 1 Includes central governments, agencies and central banks 2 Traded products exposures are measured on a net replacement value basis 3 Net of credit hedges (CHF mi
Slide 17: Increased quality and size of our capital base
16 We have increased the quality and size of our capital base We have added CHF 7.6 billion of earnings to our capital base since the end of 2008 Basel 2 Core tier 1 capital Hybrid tier 1 capital Core tier 1 ratio (%) Tier 1 ratio (%) 1 Includes own shares related components, capital deduction and F
Slide 18: Funded balance sheet reduced by more than half since 4Q07
17 Funded balance sheet reduced by more than half since 4Q07 2Q11 CHF 907 billion 4Q07 CHF 1,853 billion Significantly less reliance on short term wholesale unsecured funding... 1 Liabilities and equity excluding NRVs 5% 4% 4% 6% 18% 2% 33% 6% 12% 6% 4% 6% 4% 4% 14% 3% 24% 9% 18% 8% 7% 2% ....and a
Slide 19: Funding sources by currency - June 2011
18 Funding sources by currency - 30 June 2011 43% USD1 CHF 336 billion 21% EUR1 CHF 159 billion 22% CHF1 CHF 170 billion 14% other1 CHF 107 billion 1 In % of total funding balance sheet (CHF 772 billion) comprising repurchase agreements, securities lending against cash collateral received, due to ba
Slide 20: UBS combines strong and complementary client-focused businesses
19 UBS combines strong and complementary client-focused businesses Delivering value for shareholders Our business is unrivalled in scale, presence and client mix We are leaders in the largest established markets and fastest growing emerging markets Strong cross-border footprint and onshore presence
Slide 21: Key messages
20 Key messages Our financial, capital and funding positions are sound UBS will report a modest net profit and positive net new money in its wealth management businesses for 3Q11 We will leverage our unique competitive advantages in wealth management while strengthening the alignment with a less com
Slide 22: UBS Investor Day 2011
21 2011 Investor Day UBS Investor Day 2011 Thursday, 17 November 2011 The Waldorf Astoria, New York 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