Ubs Group Ag · SIX:UBSG
Ubs — Investor Day (May 2014)
19 slides from Ubs's investor day presentation, May 6, 2014
Slide 1: 2014 Investor Update
2014 Investor Update Capital Strength and Cost Efficiency Tom Naratil Group Chief Financial Officer Group Chief Operating Officer May 6, 2014
Slide 2: 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 and statements relating to the anticipated effect of transactions and strate
Slide 3: Key messages
Key messages Capital strength is the foundation of our success – Maintaining our Basel III fully applied CET1 ratio of 13%, committed to 10% post-stress in 2014 – Targeting a Swiss SRB leverage ratio denominator of CHF 900 billion by 20161 – We can achieve our growth objectives with limited retentio
Slide 4: Capital strength is the foundation of our success
Capital and Capital strength is the foundation of our success balance sheet management We have met our 13% Basel III fully applied CET1 ratio target Swiss SRB Basel III Basel III fully applied capital fully applied capital Large global banks 31.3.14 31.3.14 UBS European1,2 US2,3 19% ~18.8% 17.5% ~CH
Slide 5: Committed to a 10% Basel III fully applied CET1 ratio post-stress
Capital and Committed to a 10% Basel III fully applied CET1 ratio post-stress balance sheet management We expect to achieve our post-stress target of 10% in 2014 Basel III fully applied CET1 ratio – Stress testing Baseline development Scenario development x Combined stress test scenarios encompass m
Slide 6: Swiss SRB leverage ratio
Capital and Swiss SRB leverage ratio balance sheet management Targeting a Swiss SRB LRD1 of CHF 900 billion by 2016 Swiss SRB leverage ratio and LRD Swiss SRB LRD and RWA CHF billion 31.3.14 for selected businesses (illustrative example)2 Phase in An increased leverage ratio impacts our ratio Swiss
Slide 7: We can achieve our growth objectives with limited retention of earnings
We can achieve our growth objectives with limited retention of earnings Rates and Credit business utilizes only ~ 5% of Group LRD Swiss SRB leverage ratio denominator (LRD) 31.3.14 Non-core and Legacy Portfolio Being exited Investment Bank – CCS Investment Bank – ICS Rates and Credit Capital allocat
Slide 8: We have strengthened our cost management and will further reduce costs
We have strengthened our cost management and will further reduce costs CHF 2.1 billion net cost reduction target Strengthened cost management, As of 31.12.13, adjusted operating expenses, CHF billion increasing cost accountability and discipline 5.4 Corporate center 1.5 ¾ Net cost reduction target t
Slide 9: Reducing Corporate Center—Core Functions costs
Reducing Corporate Center—Core Functions costs Framework • Promote cost accountability • Full end-to-end approach • Incentivize long term efficiency • Clean slate budgeting and planning ~2/3 of expected cost savings ~1/3 of expected cost savings Group Technology Examples Other functions Examples • A
Slide 10: Clean slate budgeting and planning for the Group
Clean slate budgeting and planning for the Group We are increasing efficiency – with a "zero" cost base as the new starting point Structural cost Exit Maximize Map and cost reduction with non-essential efficiency of existing activities "zero" as new activities retained activities budget starting poi
Slide 11: Targeting CHF 2.1 billion cost reductions in the Corporate Center (vs. FY13)
Targeting CHF 2.1 billion cost reductions in the Corporate Center (vs. FY13) FY13 adjusted operating expenses CHF 2.1 billion cost reduction target CHF billion versus FY13 By By Provisions type source for litigation, CHF 0.4 billion reduction by year-end 20151,2 regulatory Non-core & and similar 1.7
Slide 12: Tracking our cost reduction progress
Tracking our cost reduction progress Corporate Center cost reduction Revised annual cost/income target ranges Core Functions Before allocations to business divisions Adjusted Current Targets Changes in Changes in provisions cost/income ratio targets7 from 2015 regulatory for litigation, Cost demand
Slide 13: Tax losses and deferred tax assets
Tax losses and deferred tax assets We have the potential to recognize Potential CHF 28.6 billion tax loss DTA available significant additional tax loss DTAs to offset against future taxable income3 z Tax loss DTAs are recognized on the basis of a future z CHF 17.2 billion unrecognized tax loss DTA i
Slide 14: Business division and Corporate Center targets
Business division and Corporate Center targets Ranges for sustainable performance over the cycle Business divisions Net new money growth rate 3-5% Wealth Management Gross margin 95-105bps Adjusted cost/income ratio 55-65% from 2015 (remains 60-70% for 2014) Net new money growth rate 2-4% Wealth Mana
Slide 15: Appendix
Appendix a UBS
Slide 16: Revenue sensitivity to external factors
Revenue sensitivity to external factors Factors and scenarios Estimated incremental revenues per year1 Based on 31.3.14 data CHF billion Scenario Factor WM WMA R&C Global AM (Illustrative) 10% weakening of Swiss Franc Foreign (against major global ~0.5 ~0.7 <0.1 ~0.1 exchange currencies)2,3 10% rise
Slide 17: Regional and business division performance—FY13
Regional and business division performance1—FY13 CHF billion Corporate Center EMEA2 Switzerland Americas Asia Pacific Total and global3 WM 3.9 1.5 0.4 1.7 0.1 7.6 WMA 0.0 0.0 6.5 0.0 0.0 6.5 Investment Bank 2.2 1.1 2.5 2.6 0.2 8.6 Operating income Global AM 0.4 0.5 0.7 0.3 0.0 1.9 R&C 0.0 3.8 0.0 0.
Slide 18: Regional and business division performance—1Q14
Regional and business division performance1—1Q14 CHF billion Corporate Center EMEA2 Switzerland Americas Asia Pacific Total and global3 WM 1.0 0.4 0.1 0.5 0.0 1.9 WMA 0.0 0.0 1.7 0.0 0.0 1.7 Investment Bank 0.6 0.3 0.7 0.6 (0.0) 2.2 Operating income Global AM 0.1 0.1 0.2 0.1 0.0 0.5 R&C 0.0 0.9 0.0
Slide 19: Important information related to numbers shown in this presentation
Important information related to numbers shown in this presentation Use of adjusted numbers Adjusted results are non-GAAP financial measures as defined by SEC regulations. Refer to page 12 of the first quarter 2014 report and pages 76-77 of our 2013 annual report for an overview of adjusted numbers.