Ubs Group Ag · SIX:UBSG
Ubs — Q2 2024 Earnings Presentation
32 slides from Ubs's earnings presentation, Aug 14, 2024
Slide 1: Form 6-K Report of Foreign Private Issuer
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________ FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 Date: August 14, 2024 UBS Group AG (Registrant's Name) Bahnhofstrasse 45, 8001 Zurich, Switz
Slide 2: Form 6-K presentation materials note
This Form 6-K consists of the presentation materials related to the second quarter 2024 financial results of UBS, which appear immediately following this page.
Slide 3: Second quarter 2024 Financial results
3% UBS Second quarter 2024 Financial results
Slide 4: Important information
Important information Forward Looking Statements: Ihis 2reseatation contains stetements shar constitire “sorvars! looking stetemerts," inc ding hut cat limited to managemeat’s ourlonk for UB5's tinarcial performance, statemerts -elating 70 the is and stratecic niflistives on UBS's o.siness ard “Un p
Slide 5: Agenda
Agenda Key messages Sergio P. Ermotti, Group CEO a UBS Financial performance Todd Tuckner, Group CFO Q&A
Slide 6: We are positioning UBS for sustainable growth and long-term value creation
We are positioning UBS for sustainable growth and long-term value creation We are delivering for our clients and stakeholders Enhancing client franchises, capabilities and scale Supporting the Swiss economy and financial market Returned to reported profitability in 1Q24 Strengthened capital and liqu
Slide 7: Financial performance
Financial performance Todd Tuckner, Group CFO a UBS
Slide 8: Sustained revenue momentum with steady progress on cost reduction
Sustained revenue momentum with steady progress on cost reduction Underlying revenues Underlying costs Underlying PBT bn bn bn (~ 10% 114.4 woo a oe (3%) 4 ~10.1 92 9.0 (~0.6) 2Q23! 1924 2Q24 2Q23! 1924 2Q24 2Q23 1Q24 2Q24 & UBS. Feferto slide 21 for details on underlying results; 1 Estimated underl
Slide 9: 1.1bn net profit with strong underlying profitability
1.1n net profit with strong underlying profitability Profits m 6bn expected in Underlying Eos f (557) Za 2,617 267 2,060 " (836) 1,469 (7%) QoQ 8%) QoQ (1,372) 2%) excl, NC 3%) excl, variable ‘bn expected (333) FA compensation in 3Q24 and litigation 1924 Revenues CLE Opex 2Q24 PPA effects and —_Inte
Slide 10: Ongoing progress on gross and net cost saves
Ongoing progress on gross and net cost saves Cumulative annualized exit rate gross Cumulative integration-related Underlying operating expenses cost reductions? expenses USDbn USD bn/ % of expected cumulative total USD bn / % of expected cumulative total {Core Ml Non-core and Legacy r (10%) /(~4bn;
Slide 11: Maintaining a balance sheet for all seasons
Maintaining a balance sheet for all seasons RWA LRD CET1 capital ratio on n % r— (8%) r— (7%) 7%) hs 557 r (3%) 1,678 iz “| fi “| 1,600 526 1,564 511 2023, «1024 2924 2923 1Q24 2924 Medium-term guidance a UBS Total loss absorbing capacity bn Holdco 2024
Slide 12: Strong capital position at group and parent bank level
10 Strong capital position at group and parent bank level UBS Group AG consolidated 198bn, 38.7% Gone concern: 106bn Gone concern: 20.7% Going concern: 92bn Going concern: 18.0% ofw CET! ofw CET1 76bn 2924 2924 U BS AG (parent bank) standalone 13.5% UBS AG standalone CET! capital ratio, fully applie
Slide 13: Global Wealth Management
Global Wealth Management Underlying Reported ere indicated 2024 ©1024 QoQ -2024 1024 QoQ Bnoarving 2024s. 124 Pi 9 Total revenues 5,820 5,909 2%) 6,053 6,143. (1%) Bil Clinal Ge) Net interest income 1586 1,615 2%) 1825 «1873 BM) Total revenues 5,820m, (2%) as higher recurring net fee = : ncome was o
Slide 14: Personal & Corporate Banking (CHF)
12 Personal & Corporate Banking (CHF) Total revenues Net interest income Recurring net fee income Transaction-based income Other income Credit loss expense / (release) Operating expenses Profit before tax Cost / income ratio Deposits, bn Loans, bn RWA, bn a UBS 2Q24 1,838 1,024 60% 255 249 132 Under
Slide 15: Asset Management
Asset Management ere indicated Total revenues Net Management fees Performance fees Net gain from disposals Credit loss expense / (release) Operating expenses Profit before tax Cost / income ratio Invested assets, bn Net new money, bn 2Q24 228 70% 1,701 (12) Underlying 1024 776 745, 30 17% 1,691 21 Q
Slide 16: Investment Bank
14 Investment Bank Total revenues Global Banking Advisory Capital Markets Global Markets Execution Services Derivatives & Solutions Financing Credit loss expense / (release) Operating expenses Profit before tax Cost / income ratio RWA (bn) Return on attributed equity KUBS 1 sirce2013 2Q24 2,493 668
Slide 17: Non-core and Legacy
Non-core and Legacy 7 indica Total revenues Credit loss expense / (release) Operating expenses Profit before tax RWA (bn) LRD (bn) a UBS 2Q24 50 80 Underlying 1924 769 197 58 120 (37%) (14%) (33%) 2Q24 807 (405) 50 Reported 1Q24 1,001 36 1,011 (46) 58 120 QoQ (60%) (20%) (14%) (33%) Underlying 2Q24
Slide 18: Strong progress on cost and balance sheet reductions in Non-core and Legacy
16 Strong progress on cost and balance sheet reductions in Non-core and Legacy Underlying operating expenses D1 (2.4) 2.6 FY22 June 2023. 2Q24 combined annualizedannualized’ baseline! RWA Updated natural run-off profile’ bn % of a eee, ant Ambition to neal Grup le) 10s reduce furtherto "8 86 ~5% thr
Slide 19: We are positioning UBS for sustainable growth and long-term value creation
We are positioning UBS for sustainable growth and long-term value creation We are delivering for our clients and stakeholders Enhancing client franchises, capabilities and scale Supporting the Swiss economy and financial market Returned to reported profitability in 1Q24 Strengthened capital and liqu
Slide 20: Appendix
Appendix
Slide 21: Our financial targets and long-term ambitions
Our financial targets and long-term ambitions Financial targets o Underlying RoCET1 ~15% 2026 exit rate Underlying cost / income 9, $70% tic 2026 ext rate a UBS Capital guidance ~14% >4.0% CET1 capital ratio CET1 leverage ratio Ambitions long-term ~18% >5tm RoCET1, reported by 2028 GWM invested asse
Slide 22: High-level overview of the UBS Group structure as of July 2024
20 High-level overview of the UBS Group structure as of 1 July 2024 UBS Group AG 100% UBS AG (sub-) consolidated UBS AG 100% 98% UBS UBS Asset Uns Euroce § UBS Americas Other non-US Credit Suisse Switzerland AG Management AG rue 2 Holding LLC subsidiaries! International? 100% Credit Suisse UBS Ameri
Slide 23: UBS Group results
UBS Group results USD m, except where indicated 2Q24 1924 4Q23 3923 2Q23 Total revenues 11,904 12,739 10,855 11,695 9,540 Negative goodwill 27,264 Credit loss expense / (release) 95 106 136 239 623 Operating expenses 10,340 10,257 11,470 11,640 8,486 Operating profit / (loss) before tax 1,469 2,376
Slide 24: UBS Group 2Q24 underlying results
22 UBS Group 2Q24 underlying results Dm, except where indi UBS Group AG cawm Pac AM 1B NCL Group Items Operating profit / (loss) before tax as reported 1,469 871 713 130 47 (405) G77) o/w: PPA effects and other integration iterns 780 233 246 310 (8) o/w: Integration-related expenses and PPA effects
Slide 25: PPA pull to par overview and revenue recognition
PPA pull to par overview and revenue recognition Accretian of PPA adjustments an financial instruments Opening balance el as of 12.6.23 (close)? wm ~30 PRC ~43 B 23 Total ~9.6 Additional PPA related benefits Nilexpected to be USD bn recognized as of 12.6.23 (close) Elimination of CS's pricr cash flo
Slide 26: Significant progress in reducing financial resource consumption
24 Significant progress in reducing financial resource consumption CET1 capital on 2%) 1 (0.3) 770) [ (1.0) ‘o/w: (0.15bn} 2Q24 share bio repurchases and (0.85bn) ay) capital reserve for potential share repurchases 1924 PRT Current tax Share Other? 2924 expense repurchases Risk weighted assets bn r
Slide 27: Capital and leverage ratios
Capital and leverage ratios _ ___1980n _ __ 38.7% Gone concern: 106n Gone concern: 20.7% x a Going concern: 92bn Going concern: 18.0% 2 ofw CETI ofw CETI x g 76bn 14.9% E ia vs. guidance: 2 & 8 ~14% Se ie BEE =e 2a 388 2Q24 2Q24 Requireinents AWA, 511bn UBS. Feterto the “capital Management” section
Slide 28: Reconciliation of estimated underlying combined results for 2Q23
26 Reconciliation of estimated underlying combined results for 2Q23 Credit loss expense / JSD bn Revenues (release) Opereting expenses Profit before tax UBS sub-group (IFRS)! a4 0.0 5.8 18 Credit Suisse sub-group (US GAAP)? (0.7) 04 9.2 10.0) UBS sub-group exclusions from underlying results” (0.5) 0
Slide 29: FY22 combined cost baseline
FY22 combined cost baseline FY22 SD bn Operating expenses UBS sub-group (IFRS)! 24.9 Credit Suisse sub-group (US GAAP)? 19.1 sub-group exclusions UBS sub: I ‘ (0.3) Credit Suisse sub-group exclusions®* (2.0) Commission expense reclassification?* (1.1) FY22 combined cost baseline 40.6 Of which: ~34.5
Slide 30: Overview of purchase price allocation adjustments (PPA)
28 Overview of purchase price allocation adjustments (PPA) PPA adjustments Measurement period adjustments” (147) 15.2} ( (4.5) (5.6) (0.9) ~~ (0.6) (0.3) (0.6) Fair value Litigation, regulatory Goodwill and Fair value adjustmentson and similar matters __ intangibles, net adjustments on financial ass
Slide 31: Cautionary statement regarding forward looking statements
Cautionary statement regarding Forward looking statements Cautionary Statement Regarding Forward looking Statements Fis prssentetion contains s ts that constitute "Fo ing statement," fluding but rot nites so maragements cullook to J8s's Tnercial ge mance, ststerents lating to he antisites ofle=: of
Slide 32: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized. UBS Group AG By: /s/ David Kelly _ Name: David Kelly Title: Managing Director By: /s/ Ella Campi _