Slide 1: Second quarter 2021 results
Second quarter 2021 results 20 July 2021
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 Financial performance, Q&A messages divisional results and capital Ralph Hamers Kirt Gardner Group CEO Group CFO 2
Slide 4: Key messages: We are executing relentlessly
Key messages We are executing We are delivering on We are committed to relentlessly our strategic initiatives driving higher returns for our clients to drive growth and efficiency by unlocking the power of UBS 25bn 9bn 8bn >3x 2.0bn 19.3% GWM AM NNM SI mandate GWM NNFGA Net profit RoCET1 NNFGA1 excl
Slide 5: We are executing relentlessly for our clients
We are executing relentlessly for our clients GWM GWM GWM AM IB P&C Fee-generating assets Loans Transaction-based Invested assets Global Banking Investment products, income income Personal Banking, CHF 1.4trn 228bn 953m 1.2trn 881m 22bn 189bn 824m 1.1trn 0.9trn 18bn 525m 30.6.20 30.6.21 30.6.20 30.6
Slide 6: Delivering on the core elements of the ecosystem for investing
Delivering on the core elements of the ecosystem for investing Private markets SMAs1 Sustainability My Way Scalability Invested assets, GWM+AM Invested assets, AM Sustainability-focused Invested assets, GWM NNFGA per advisor, GWM invested assets, AM 128bn 111bn 129bn 4.2bn 6.4m 118bn 89bn 97bn 1.5bn
Slide 7: All regions contributing to growth and efficiency
All regions contributing to growth and efficiency As of or for the quarter ended 30.6.21, YoY +25% Americas Switzerland Profit before tax Profit before tax IA IA 0.8bn +65% 0.8bn +57% 2.0trn Cost / income ratio 0.8trn Cost / income ratio +24% 78.8% (3.1) ppts +23% 59.6% (3.2) ppts 4.5trn invested as
Slide 8: Financial results overview
Financial results overview 2Q21 1H21 Return on CET1 capital 19.3% 18.8% Target: 12-15% Return on tangible equity 15.4% 14.7% Cost / income ratio 71.8% 72.8% Target: 75-78% Group Net profit attributable to shareholders USD 2.0bn USD 3.8bn CET1 capital ratio 14.5% 14.5% Guidance: ~13% CET1 leverage ra
Slide 9: 2Q21 net profit USD 2.0bn; 19.3% RoCET1
2Q21 net profit USD 2.0bn; 19.3% RoCET1 Profit before tax m 2Q21 +64% 352 2,006m 0.55 1,222 net profit diluted EPS 2,593 +63% +65% (563) 1,582 19.3% 2.5bn return on CET1 capital CET1 capital accretion2 Operating income Operating expenses +21% +10% +19% excl. FX +6% excl. FX 30.6.21 2Q20 Income Credi
Slide 10: Executing our cost strategy
Executing our cost strategy Operating expenses bn 12.8 11.7 0.0 0.4 0.1 0.6 1H20 Costs excluding Variable and FA Litigation and FX 1H21 variable and FA compensation restructuring1 compensation, litigation, restructuring and FX Cost / income ratio2 74.0% (1.2) ppts 72.8% 1 1H20 includes net restructu
Slide 11: Delivering attractive returns and improving efficiency
Delivering attractive returns and improving efficiency RoCET1 19.3% 13.2% RoTE 15.4% 75.8% C/I 71.8% 9.7% Net profit Profit before tax 2,593 m m 2,006 1,582 1,232 2Q12 2Q13 2Q14 2Q15 2Q16 2Q17 2Q18 2Q19 2Q20 2Q21 2Q12 2Q13 2Q14 2Q15 2Q16 2Q17 2Q18 2Q19 2Q20 2Q21 10
Slide 12: Global Wealth Management
Global Wealth Management +47% 1,409 1,294 1,057 PBT 1,294m, +47% with growth in all regions Profit before tax 880 864 m Operating income +21%, reflecting increases across all revenue lines +21% 4,848 4,774 Credit loss releases 14m vs. 64m credit loss Transaction-based 3,942 4,280 4,277 1,183 953 exp
Slide 13: Global Wealth Management
Global Wealth Management Recurring net fee income Net interest income Transaction-based income m m m Loans / bn +30% 189 201 213 219 228 2,774 Deposits / bn 2,629 2,468 315 321 348 337 344 2,341 2,128 +0% +16% 1,183 1,023 962 1,011 997 1,026 953 824 863 776 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q
Slide 14: Global Wealth Management
Global Wealth Management Fee-generating assets1 bn +28% 25bn NNFGA , 2Q21 1 1,416 ₋ Americas 14bn 1,328 1,277 119 ₋ EMEA 5bn 112 123 1,163 103 ₋ APAC 4bn 1,104 112 93 111 APAC 87 ₋ Switzerland 3bn 102 329 Switzerland 96 311 306 277 EMEA 263 84bn NNFGA , 8% growth last 12 months 1 ₋ Americas 48bn, 7%
Slide 15: Personal & Corporate Banking (CHF)
Personal & Corporate Banking (CHF) +100% 456 PBT 456m, +100% 358 Profit before tax 305 318 229 m Operating income +31% driven by credit loss releases, higher transaction-based income, record recurring net fee income and a 26m gain from real +31% estate sales 1,037 850 950 790 896 Credit loss release
Slide 16: Asset Management
Asset Management +62% 739 401 PBT 255m, +38% excluding 37m gain on sale Profit before tax 255 m 227 of remaining investment in Fondcenter1; 157 169 218 9th consecutive quarter of YoY PBT growth Gain from the sale of Fondcenter1 Operating income +27% +27% ⁻ Net management fees +31% benefitting 1,162
Slide 17: Investment Bank
Investment Bank +9% 612 632 668 RoAE 21%; PBT 668m, +9% 529 Profit before tax 412 m Global Markets revenues (14%) ₋ Execution Services 443m, +5% driven by cash equities ₋ Derivatives & Solutions 773m, (18%) against +9% strong 2Q20 in rates, FX and credit, partially 2,485 2,470 offset by higher reven
Slide 18: IFRS 9 credit loss (expenses) / releases
IFRS 9 credit loss (expenses) / releases Credit loss (expenses) / releases m 2Q21 Stage 1 & 2 Stage 3 Total Stage 1 & 2: 88m net credit loss releases Global Wealth Management 13 0 14 ₋ Released 91m of post-model adjustment; Personal & Corporate Banking 51 (5) 46 183m remaining Asset Management 0 0 0
Slide 19: Capital and leverage ratios
Capital and leverage ratios Total loss-absorbing capacity (TLAC) 104bn 35.6% 10.03% TLAC: 8.63% 45bn Gone concern 15.4% 4.34% loss-absorbing capacity TLAC : 24.6% Going concern capital 59bn 20.2% 5.69% 17bn AT1 5.7% 1.60% Going concern: 4.88% CET1 capital 43bn 14.5% 4.09% Going concern: 14.0% CET1:
Slide 20: Purpose, client promise, vision and strategic imperatives
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 21: Appendix
Appendix 6 UBS
Slide 22: Group results
Group results USDm unless otherwise indicated 2Q20 3Q20 4Q20 1Q21 2Q21 Total operating income 7,403 8,935 8,117 8,705 8,976 of which: credit loss (expense) / release (272) (89) (66) 28 80 Total operating expenses1 5,821 6,357 6,132 6,407 6,384 Operating profit / (loss) before tax 1,582 2,578 1,985 2
Slide 23: 2Q21 Group results by region
2Q21 Group results by region Americas Switzerland EMEA Asia Pacific 65% 57% 0.8bn 0.8bn 15% 45% Profit before tax 0.6bn 0.5bn 0.5bn 0.5bn 0.5bn 0.4bn 2Q20 2Q21 2Q20 2Q21 2Q20 2Q21 2Q20 2Q21 Operating income 3.6bn +23% 2.0bn +22% 1.8bn +17% 1.6bn +11% Operating expenses 2.8bn +15% 1.1bn +5% 1.3bn +9%
Slide 24: 2Q21 Global Wealth Management results by region
2Q21 Global Wealth Management results by region Americas Switzerland EMEA Asia Pacific +122% 505m +15% +22% Profit before tax +37% 308m 267m 283m 227m 233m 204m 149m 2Q20 2Q21 2Q20 2Q21 2Q20 2Q21 2Q20 2Q21 Cost / income ratio 80.9% (5.6) ppts 57.5% (3.5) ppts 68.5% (0.3) ppts 60.2% (4.4) ppts Invest
Slide 25: Common equity tier 1 capital
Common equity tier 1 capital CET1 capital bn 0.4 (0.4) (0.4) 0.3 (0.3) 42.6 2.6 40.4 31.3.21 Profit Current Foreign currency Fondcenter1 Compensation and Other2 30.6.21 before tax tax expense translation effects own-share related capital components 1 0.4bn CET1 capital increase following the sale of
Slide 26: RWA and LRD
RWA and LRD RWA LRD By currency bn bn %, as of 30.6.21 +5.4bn +1.7bn of which: +1.8bn of which: +8.7bn due to FX due to FX Off-balance sheet items Other 287.8 293.3 1,038.2 1,039.9 293.3 1,039.9 Operational risk 31.2 31.1 7% GBP 12% 123.2 121.5 Securities financing 3% EUR 75.8 75.8 8% 4% transaction
Slide 27: 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 relating to the anticipated effect of transactions and strategic