Ubs Group Ag · SIX:UBSG
Ubs — Bank of America Merrill Lynch Banking & Insurance Conference 2014
14 slides from Ubs's conference presentation, Sep 30, 2014
Slide 1: Bank of America Merrill Lynch Banking & Insurance Conference
Bank of America Merrill Lynch Banking & Insurance Conference Tom Naratil Group Chief Financial Officer Group Chief Operating Officer September 30, 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 We have adapted our strategy to the new regulatory environment – Transformed our business model and exited high capital intensity activities under Basel III – Continue successful RWA and balance sheet reduction in Non-core and Legacy Portfolio We are well ahead of existing regulatory re
Slide 4: We adapted our strategy and business mix to the new regulatory environment
We adapted our strategy and business mix to the new regulatory environment Our businesses Our objectives World’s leader in HNW and Remain leading large-scale wealth manager in the world Wealth UHNW banking with unrivaled Gain market share in established markets, and capture wealth management sco
Slide 5: Leveraging the Group's capabilities to serve our clients
Leveraging the Group's capabilities to serve our clients Retail & Corporate • Leading Swiss product offering; award-winning e-banking platform • Full-service coverage for SMEs of wealth management clients • Local service with over 300 branches across Switzerland Global Asset Management • Wide range
Slide 6: Driving capital efficient growth in our highly cash-flow generative businesses
Driving capital efficient growth in our highly cash-flow generative businesses Group RWA targets will be met by reduction of Non-core and Legacy Portfolio Swiss SRB RWA Quarterly operating income CHF billion CHF billion ~400 5.1 5.0 5.0 4.9 4.9 4.9 4.7 4.7 4.6 4.5 227 4.4 321 4.3 ~200 52 ~25 68 ~70
Slide 7: We have adapted to increasing capital requirements
We have adapted to increasing capital requirements Met our estimated 2019 requirements for Swiss SRB capital and leverage ratios Swiss SRB RWA and capital ratios Swiss SRB LRD and leverage ratio CHF billion CHF billion Total capital ratio (fully applied) Leverage ratio (phase-in) 18.1% CET1 capital
Slide 8: Capital strength is the foundation of our success
Capital strength is the foundation of our success We have the highest Basel III CET1 capital ratio amongst large global banks Swiss SRB Basel III Basel III fully applied capital fully applied capital Large global banks 30.6.14 30.6.14 UBS European1,2 US2,3 19% ~18.8% 18.1% 18.1% 17.5% ~CHF 9 ~4.5% b
Slide 9: Cost efficiency is a key lever to support profitability
Cost efficiency is a key lever to support profitability We are on track to deliver targeted cost reductions in the Corporate Center Corporate Center cost reduction Clean slate budgeting and planning Core Functions Illustrative example, CHF billion Before allocations to business divisions Changes in
Slide 10: Optimizing pricing today and geared for higher interest rates in the future
Optimizing pricing today and geared for higher interest rates in the future We are improving pricing and are positively geared to rising interest rates Today: we are optimizing pricing Future: geared to increasing interest rates Estimated incremental revenues per year1 • Pricing of retrocession free
Slide 11: Group holding company: further adapting to global regulatory changes
Group holding company: further adapting to global regulatory changes Modifying legal structure to enhance resolvability and to improve capital returns potential Intention to establish UBS Group AG, a Group holding company Measures announced previously Switzerland UK US • Establish a Swiss banking •
Slide 12: Group holding company: share for share exchange timeline
Group holding company: share for share exchange timeline Share exchange timetable commenced 29 September Indicative timetable of principal events1 Cooling-off period Initial acceptance period2 Additional acceptance period2 30 Sept to 13 Oct 14 Oct to 11 Nov 17 Nov to 1 Dec 29 Sept: Swiss offer 12 No
Slide 13: Key messages
Key messages We have adapted our strategy to the new regulatory environment We are well ahead of existing regulatory requirements Cost efficiency and pricing discipline are supporting profitability We are well-positioned to benefit from rising interest rates 12
Slide 14: Important information related to numbers shown in this presentation
Important information related to numbers shown in 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 fina
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