Ubs Group Ag · SIX:UBSG
Ubs — Morgan Stanley conference (March 2015)
24 slides from Ubs's conference presentation, Mar 24, 2015
Slide 1: Morgan Stanley conference
Morgan Stanley conference Tom Naratil Group Chief Financial Officer and Group Chief Operating Officer March 24, 2015
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: 2015 and beyond: unlocking UBS's full potential
2015 and beyond: unlocking UBS’s full potential Continuing to execute a clear and consistent strategy 2011 2012 2013 2014 2015 and beyond Implement and execute Unlock full potential ü Wealth management businesses at the core of our strategy • Capital strength ü Strategic commitment to be the leading
Slide 4: Capital efficient growth in our highly cash-flow generative businesses
Capital efficient growth in our highly cash-flow generative businesses Business mix predominantly higher growth and lower capital intensity businesses PBT contribution Quarterly operating income CHF billion, adjusted %, 2014 PBT By business division1 ~80% 5.3 5.3 21% 5.1 Expected future 4.9 5.0 5.0
Slide 5: UBS is best positioned to seize the global wealth management opportunity
UBS is best positioned to seize the global wealth management opportunity Our footprint is unique with a strong presence in growth markets UBS invested assets • Fundamentally attractive industry CHF billion 31.12.14 economics Europe including Switzerland1,3 • Compelling growth prospects estimated mar
Slide 6: UBS is the world's leading wealth manager
UBS is the world’s leading wealth manager Invested assets of CHF 2 trillion managed by over 11,000 advisors globally Wealth Management Americas Wealth Management 2014 2014 • USD 1 trillion invested assets • CHF 1.0 trillion invested assets USD 1 billion adjusted pre-tax profit CHF 2.4 billion adjust
Slide 7: Our wealth management franchise is unrivaled
Our wealth management franchise is unrivaled Superior growth prospects, a strong track record and a unique global footprint Operating income Profit before tax Invested assets adjusted, CHF billion adjusted, CHF billion CHF trillion +7% CAGR +14% CAGR +12% CAGR 14.9 3.3 3.5 2.0 14.1 12.9 1.8 2.7 1.6
Slide 8: Delivering on our strategic initiatives
Delivering on our strategic initiatives Successfully targeting the fastest growing wealth segments and high quality revenues Growth in target segments Improving recurring revenues Increased asset base Strong growth in target segments Mandates CHF trillion Invested assets by client wealth segment1, 3
Slide 9: Delivering results in a variety of market conditions
Delivering results in a variety of market conditions Our consistent strategy and long term initiatives allow us to succeed in a variety of market conditions Foreign exchange rates CHF per currency; dotted lines: average since 15.1.15 GBP GBP 1.45 1.48 EUR 1.25 EUR 1.07 USD USD 0.93 1.01 3.1.11 20.3.
Slide 10: Driving effectiveness and efficiency: Costs
Driving effectiveness and efficiency: Costs Targeting CHF 2.1 billion in cost savings; CHF 1.1bn remaining in Corporate Centre in 2015 Cost reductions by division • Net cost reduction target in the Corporate Center to drive net cost savings target in CHF billion1 maximum cost efficiency in services
Slide 11: Investments in digital platforms support business growth
Investments in digital platforms support business growth UBS Switzerland1 Wealth Management Income per RoBV2 NNBV3 growth rate Investor Profile SAA/TAA4 Investment client account per client account CIO Monthly implementation opportunity and (House View) suitability tools 4.2x Without e-banking With
Slide 12: Fully applied Swiss SRB Basel III capital and ratios
Fully applied Swiss SRB Basel III capital and ratios 19.0% 20.6% 18.9% Loss-absorbing Loss-absorbing 15.4% 7.1% capital in the form of 4.8% T2 Low-trigger 5.5% capital in the form of AT1 or T2 AT1 or T2 11.4% 0.4% T2 High-trigger 0.2% AT1 High-trigger Ratio 12.8% 13.4% 13.4% CET1 13.5% 13.5% CET1 13
Slide 13: Fully applied Swiss SRB leverage ratio
Fully applied Swiss SRB leverage ratio 4.6% 4.1% 4.2% Loss-absorbing Loss-absorbing 3.4% 1.6% capital in the form of 3.4% 1.0% T2 Low-trigger 1.2% capital in the form of AT1 or T2 ~2.4% AT1 or T2 0.1% T2 High-trigger 0.05% AT1 High-trigger Ratio 2.8% 2.9% 2.9% CET1 3.0% 3.0% CET1 3.0% 3.0% CET1 31.1
Slide 14: Capital strength is the foundation of our success
Capital strength is the foundation of our success We have the highest Basel III fully applied CET1 capital ratio among large global banks Swiss SRB Basel III fully applied capital Basel III fully applied capital – large global banks 31.12.14 Based on latest available disclosure2 European1,2 US2,3 18
Slide 15: Delivering attractive returns to our shareholders
Delivering attractive returns to our shareholders Proposed ordinary dividend and accrued one-time supplementary capital return in 2014 Total capital return per share CHF per share One-time • The ordinary dividend1 and the supplementary one-time supplementary capital 0.25 capital return return2 will
Slide 16: UBS – a unique and attractive investment proposition
UBS – a unique and attractive investment proposition UBS is the world’s largest wealth manager1 • Unique global footprint provides exposure to both the world’s largest and fastest growing global wealth pools • Leading position across the attractive HNW and UHNW client segments The world’s leading •
Slide 17: Appendix
Appendix SUBS
Slide 18: Capital – foreign currency translation effect
Capital – foreign currency translation effect Pro-forma foreign currency translation effect on Group capital metrics1 Basel III CET1 capital (fully applied) Swiss SRB LRD (fully applied) CHF billion CHF billion 13.4% ~13.5% 6% ~4.2% 4.1% Ratio Ratio 31.12.14 reported 31.12.14 reported and pro-forma
Slide 19: Updated performance targets from 1Q15
Updated performance targets ? from 1Q15 Our strategy is durable and we are growing our core businesses profitably Durable strategy Changes to Group targets, KPIs and guidance1,2 Our strategy and performance targets have served us well Target: in many environments Group • 2015: adjusted RoTE3 around
Slide 20: Group and business division targets – from 1Q15
Group and business division targets – from 1Q15 Ranges for sustainable performance over the cycle Business divisions Net new money growth rate 3-5% Wealth Management Adjusted cost/income ratio 55-65% 10-15% annual adjusted pre-tax profit growth for Wealth Management Net new money growth rate 2-4% co
Slide 21: Fully applied Swiss SRB Basel III capital and ratios
Fully applied Swiss SRB Basel III capital and ratios 19.0% 20.6% 18.9% Loss-absorbing Loss-absorbing 15.4% 4.8% 5.5% capital in the form of 7.1% capital in the form of AT1 or T2 0.4% T2 Low-trigger AT1 or T2 11.4% 0.2% T2 High-trigger AT1 High-trigger 12.8% 13.4% 13.4% CET1 13.5% 13.5% CET1 13.5% 13
Slide 22: Fully applied Swiss SRB leverage ratio
Fully applied Swiss SRB leverage ratio 4.6% 4.1% 4.2% Loss-absorbing Loss-absorbing capital in the form of 3.4% 1.6% 1.0% T2 Low-trigger 1.2% capital in the form of AT1 or T2 AT1 or T2 Ratio ~2.4% 0.1% T2 High-trigger 0.05% AT1 High-trigger 2.9% 2.9% CET1 3.0% 3.0% CET1 3.0% 3.0% CET1 2.8% 31.12.12
Slide 23: Phase-in Swiss SRB Basel III ratios
Phase-in Swiss SRB Basel III ratios Capital ratios Leverage ratios 25.5% 5.4% 22.2% 0.9% T2 Other 1.0% T2 Low-trigger 4.7% 4.7% T2 Low-trigger T2 High-trigger 18.9% 0.1% (DCCP) T2 High-trigger ~3.6% 0.4% AT1 High-trigger (DCCP)—(DCCP) AT1 High-trigger—Ratio (DCCP) 19.4% CET1 4.3% 4.3% CET1 18.5% 19.
Slide 24: Important information related to this presentation
Important information related to this presentation Use of adjusted numbers Unless otherwise indicated, “adjusted” figures exclude the adjustment items listed on the previous slide, to the extent applicable, on a Group and business division level. Adjusted results are a non-GAAP financial measure as