Ubs Group Ag · SIX:UBSG
Ubs — Q1 2010 Earnings Presentation
30 slides from Ubs's earnings presentation, May 4, 2010
Slide 1: First Quarter 2010 Results
First Quarter 2010 Results May 4, 2010
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: 1Q10 highlights
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot 1Q10 highlights Profitable in all business divisions… Pre-tax profit CHF 2.8 billion Net profit CHF 2.2 billion, diluted EPS CHF 0.58 Return on equity 21.0% Good IB results with significant FICC contribution and limited additional risk utiliz
Slide 4: 1Q10 – performance by business division
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot 1Q10 – performance by business division (CHF million) WM&SB WMA Global AM IB CC1 UBS Income 2,879 1,361 521 4,024 356 9,141 Credit loss (expense) / recovery 3 0 112 116 Own credit (247) (247) Total operating income 2,882 1,362 521 3,899 356 9
Slide 5: Net profit
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Net profit1 Improvement driven by revenues, particularly in IB, partly offset by higher personnel expenses and tax expense Profit before tax +1,898 (1,198) 179 2,915 (1,083) 184 2,202 (CHF million) 1,205 997 4Q09 Revenues Personnel Non-person
Slide 6: Revenues
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Revenues FICC Equities IBD WM R&C WMA Global CLE Own CC1 AM credit 307 145 199 1,054 (142) (44) (33) (16) (223) 1,669 27% 9,010 (CHF million) 48% 6,095 4Q09 1Q10 259 257 21 46 574 (12) (48) (26) (13) 2,302 35% 9,010 (CHF million) 5,650 59% Av
Slide 7: Operating expenses – 1Q10 versus 2009 quarterly average
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Operating expenses – 1Q10 versus 2009 quarterly average 2009 average1 1Q10 ♦ Improved revenue performance led to increased accruals for variable 6,200 compensation 7% 5,812 ♦ Reduction of non-personnel expenses continued in 1Q10 508 (120) ♦ I
Slide 8: Headcount
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Headcount Overall headcount expected to remain broadly stable in 2010 ♦ Headcount reduced by a further 940 during 1Q10 ♦ 1Q10 also reflects the additional allocation of approximately 1,250 Corporate Center staff to the business divisions, mai
Slide 9: Divisional reporting structure
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Divisional reporting structure ♦ Wealth Management & Swiss Bank Previous reporting structure Wealth Management & Swiss Bank Swiss clients International clients New reporting structure Wealth Management & Swiss Bank Wealth Management Retail &
Slide 10: WM&SB - revenues
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot WM&SB - revenues 1Q10 revenue growth reflects early success of strategic initiatives 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 4,201 3,975 3,692 1Q10 vs 731 656 3,153 4Q09 577 2,892 631 2,914 2,769 2,882 2,814 596 523 519 540 +4% 500 2,071
Slide 11: Wealth Management & Swiss Bank
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Wealth Management & Swiss Bank Improved performance – higher quality profits Retail & Corporate Wealth Management 1Q09 4Q09 1Q10 1Q09 4Q09 1Q10 1,903 1,904 1,800 (CHF million) (CHF million) 989 968 978 636 674 696 442 435 465 Operating income
Slide 12: Wealth Management – gross margins
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Wealth Management – gross margins1 Recovery in gross margin supported by strategic initiatives 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Gross margin 1Q10 vs. 4Q09 Mandates Lending Brokerage and core advisory 102 101 Pricing 97 97 95 One-o
Slide 13: WM&SB – net new money
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot WM&SB – net new money ♦ Continued net inflows in Asia Pacific region ♦ NNM turned positive in the UHNW segment ♦ NNM in Europe remained negative but at a significantly lower level and a number of locations recorded net inflows ♦ Outflows rela
Slide 14: Wealth Management – client advisors and invested assets
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Wealth Management – client advisors and invested assets Hiring initiatives expected to lead to increasing client advisors in 2H10 ♦ 1Q10 decrease in client advisors mainly reflects 2009 re-sizing actions, slight net decline expected in 2Q10 ♦
Slide 15: Wealth Management Americas
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Wealth Management Americas Business stabilizing under new leadership team 1Q09 4Q09 1Q10 ♦ 1Q10 pre-tax result impacted by – Introduction of financial advisor loyalty programs 1,409 1,395 1,362 – Additional allocation of Corporate Center cost
Slide 16: Global Asset Management
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Global Asset Management 1Q09 4Q09 1Q10 ♦ Continued strong investment performance ♦ NNM outflows decreased significantly to CHF 502 537 521 2.6 billion – CHF 2.1 billion inflows from third parties – CHF 4.7 billion outflows from WM channels (C
Slide 17: Investment Bank - summary
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Investment Bank - summary Good results with significant contribution from FICC ♦ Revenues: (CHF million) 1Q09 4Q09 1Q10 – IBD: increased rank and market share on Investment banking 304 746 604 lower fee pool Equities 1,371 948 1,255 – Equitie
Slide 18: Equities revenues
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Equities revenues Increased revenues and maintained market share1 >1,750 ♦ Revenues increased 32% from 4Q09, even as lack of market activity held 1,371 back client franchise revenues 1,255 88 ♦ Cash revenues increased on higher 49 217 948 231
Slide 19: FICC revenues
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot FICC revenues Good performance driven by Credit turnaround 2,165 >2,000 ♦ Good quarter with diversified 250 revenues 241 ♦ Credit’s successful turnaround 752 496 continued with a good result due to 77 strong trading activity and high 37 922 f
Slide 20: Investment banking revenues
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Investment banking revenues Gained market share on seasonally low fee pool ♦ Advisory revenues impacted by the >1,000 subdued volumes in 2009 746 604 304 ♦ Equity revenues declined on 4Q09 185 despite strong performance in the 218 213 America
Slide 21: Capital position
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Capital position CHF 1.6 billion net capital accretion from 1Q10 profits 16.0% 15.4% 15.0% ♦ Tier 1 capital ratio 16.0% 13.2% 12.5% ♦ Core tier 1 capital ratio 11.0% 11.9% 10.5% 11.5% improved to 12.5% 10.1% ♦ Risk-weighted assets 8.5% increa
Slide 22: Appendix
Appendix
Slide 23: Invested assets
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Invested assets Wealth Management Retail & Corporate 17 (8) (8) 825 0% 827 (CHF billion) (CHF billion) (0) 2 (1) 135 1% 136 Dec 09 NNM Market FX / Other Mar 10 Dec 09 NNM Market FX / Other Mar 10 Wealth Management Americas Global Asset Manage
Slide 24: Global AM – net new money
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Global AM – net new money 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 (16.5) (24.5) (34.4) (27.6) (7.7) (17.1) (10.0) (11.0) (2.6) (1.1) (1.2) 1.0 (3.8) (3.6) (6.6) (CHF billion) (9.6) (8.4) (6.6) (8.8) (16.7) (7.2) (21.0) (10.6) (6.9) (16.1
Slide 25: Regulatory capital
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Regulatory capital Tier 1 BIS Tier 1 Total Total capital RWA ratio capital ratio CHF billion 31.12.09 31.8 206.5 15.4% 40.9 19.8% Net P&L attributable to shareholders 2.2 2.2 Own credit 0.2 0.2 MCN coupon accrual (0.2) (0.2) Tier 1 deductions
Slide 26: Balance sheet development: 2Q07 – 1Q10
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Balance sheet development: 2Q07 – 1Q10 Assets 2,542 2,207 2,015 Total B/S size 958 1,356 1,341 Total excl. PRVs 1,161 919 938 Positive RVs 312 Other assets 775 (CHF billion) 348 232 229 Trading portfolio 180 188 Collateral trading 408 450 385
Slide 27: Asset funding – March 2010
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Asset funding – 31 March 2010 Assets Liabilities and equity Cash, balances with central Due to banks 70 banks and due from banks 87 Money market paper issued 49 Financial investments available- for-sale 77 Cash collateral on securities lent C
Slide 28: Exposure to monoline insurers, by rating
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Exposure1 to monoline insurers, by rating Credit Fair value of Fair value of Fair value of Notional valuation underlying CDSs4 prior CDSs after amount3 adjustment assets to CVA CVA as of 31.3.10 USD billion Credit protection on US sub-prime R
Slide 29: Student loan auction rate securities
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Student loan auction rate securities Inventory Carrying Carrying value as of value as of 31.3.10 31.12.09 USD million US student loan auction rate securities 9,275 1 10,347 1 Includes USD 6.6 billion (CHF 6.9 billion) at carrying value of stu
Slide 30: Reclassified assets
C:\Program Files\UBS\Pres\Templates\PresPrintOnScreen.pot Reclassified assets Ratio of Notional Fair Carrying carrying to value value value notional 31.3.10, CHF billion value US student loan and municipal auction rate securities 8.2 7.1 7.3 89% Monoline protected assets1 7.3 6.2 6.3 87% Leveraged f