Slide 1: Third quarter 2019 results
Third quarter 2019 results October 22, 2019
Slide 2: Important information
Important information Forward Looking Statements: This presentation contains statements that constitute “forward-looking statements,” including but not limited to performance targets, expectations and ambitions, as well as management’s outlook for UBS’s financial performance and statements relating
Slide 3: 3Q19 net profit of USD 1,049m
3Q19 net profit of USD 1,049m Solid results in a challenging environment 1,345m Group PBT, (21%) YoY Global Wealth Management Personal & Corporate Banking › PBT 894m, adjusted 919m › PBT 354m, adjusted 362m 0.28 › Transaction-based income +14% YoY › 9M19 adjusted PBT +3%2 › 16bn NNM, 2.5% annualized
Slide 4: Market context
Market context 2019 IMF real GDP growth forecast Equity markets Yield curves MSCI World USD swap rates 30.9.18 3.9% 2,180 3.05% (158bps) 3.7% 3.5% 2,082 3.3% 3.2% 1.48% 3.0% 30.9.19 Jul-18 1 Oct-18 2 Jan-19 3 Apr-19 4 Jul-19 5 Oct-19 6 7 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 3m 1y 2y 3y 4y 5y Ge
Slide 5: UBS global investor sentiment survey
UBS global investor sentiment survey Investors remain concentrated in cash and generally satisfied with their asset allocation Investors' cash holdings remain high… …with mixed views about the global economy 27% 53% of investors are optimistic of investable assets Regional QoQ development are in cas
Slide 6: Positioning for growth
Positioning for growth Combining capabilities to generate synergies Strategic partnerships Collaboration initiatives Creating partnerships to scale presence in strategic markets › Adding further scale in GFO following strong performance +15% ~20% 3-year revenue CAGR overall GFO revenue following GFO
Slide 7: Front-to-back digitalization
Front-to-back digitalization Investing in technology to enable business growth and improve efficiency Strengthening digital lead Developing leading digital capabilities to improve #1 #1 >800 Technology in 2019 Euromoney in the equity plan net new SME clients client experience Private Banking and Wea
Slide 8: Sustainable finance
Sustainable finance Leader in sustainable investing for private and institutional clients Core sustainable investments GWM client assets invested into new As % of GWM and AM invested impact investments for the UN SDGs1 bn +130% 12.9% 5.0 2.9 5.6% 0.9 31.12.17 30.6.19 31.12.17 30.6.19 2021 objective
Slide 9: 9M19 highlights
9M19 highlights Delivered good performance › 13.8% RoCET1 in challenging markets › 55bn NNM across GWM and AM › Operating expenses down 3%, adj. cost/income ratio 77.7% Generating capital and maintaining › CET1 capital ratio 13.1%, CET1 leverage ratio 3.8%, tier 11 leverage ratio 5.6% balance sheet
Slide 10: UBS Group AG results (consolidated)
UBS Group AG results (consolidated) 3Q18 4Q18 1Q19 2Q19 3Q19 Total operating income 7,428 6,972 7,218 7,532 7,088 Total operating expenses 5,724 6,492 5,672 5,773 5,743 Profit before tax as reported 1,704 481 1,546 1,759 1,345 of which: adjusting items (66) 3 (31) (28) (114) of which: net restructur
Slide 11: Global Wealth Management
Global Wealth Management +2% PBT excluding litigation; positive momentum across all growth levers +2% Profit before tax m 936 873 886 919 PBT +2% excluding litigation 302 Excl. litigation +1% Operating income Operating income +1%, largely driven by double-digit m 4,084 4,028 4,003 4,057 4,142 growth
Slide 12: Global Wealth Management
Global Wealth Management 14% increase in transaction-based income; positive recurring net fee momentum Recurring net fee income Net interest income Transaction-based income 2,411 2,374 2,315 2,371 2,218 1,011 1,028 1,009 966 979 765 764 741 650 627 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 3
Slide 13: Global Wealth Management
Global Wealth Management 11bn NNM in APAC in 3Q19, >10% annualized growth YTD 3Q19 Profit before tax Cost/income Invested assets Net new money m ratio bn bn › Record operating income +3% YoY Americas 342 85% 1,334 0.0 › 3bn NNM from UHNW clients › 10.6% annualized NNM growth in 9M19 APAC 171 70% 420
Slide 14: Personal & Corporate Banking (CHF)
Personal & Corporate Banking (CHF) 9M19 adjusted PBT +3%; strong business momentum (10%) 399 389 391 360 303 PBT (10%) mainly reflecting higher credit loss expenses and Profit lower net interest income before tax Cost/income ratio 58% 66% 59% 59% 59% Transaction-based income +1% on higher credit car
Slide 15: Asset Management
Asset Management Fourth consecutive quarter of YoY PBT increase; strong net new money +6% PBT +6% on higher net management fees and flat costs, 127 126 135 135 109 9M19 PBT +6% Profit before tax Cost/income ratio 72% 73% 76% 72% 71% 457 468 475 465 446 17 28 23 14 27 Net management fees +3% reflecti
Slide 16: Investment Bank
Investment Bank Market environment particularly challenging given our business and geographic mix (59%) 489 RoAE of 7% on 12.2bn average attributed equity 440 Profit before tax1 221 203 Operating expenses +6%, mainly driven by a net 59m litigation (5) release in 3Q18, as well as higher technology an
Slide 17: Tangible equity
Tangible equity Larger gap between CET1 capital and tangible equity 49.6 Tangible equity 46.6 › 3bn increase in tangible equity, including the recognition of a 2bn Swiss pension plan net surplus, which had no impact on CET1 capital 25% 11.61 15.01 30% of tangible equity of tangible equity o/w 34.9 3
Slide 18: UBS at a glance
UBS at a glance › Clients are at the center of everything we do Outstanding › Unique position as the only truly global wealth manager client › Leading universal bank in Switzerland with focused franchises Investment Bank and Asset Management franchises › Strong brand and global reach Managing › Posi
Slide 19: Appendix
Appendix %% UBS
Slide 20: Growing book value while distributing capital
Growing book value while distributing capital TBVPS growth with dividends well ahead of European peers and close to US peers TBVPS + dividends CAGR 6% Average, 2011-3Q19 CAGR 7% Cumulative 4.17 cash dividends 6% per share Tangible book 13.671 value per share 11.03 2% (TBVPS) 31.12.11 30.9.19 US peer
Slide 21: Corporate Center
Corporate Center Limited drag, partly due to hedge accounting ineffectiveness and accounting asymmetry gains 3Q18 4Q18 1Q19 2Q19 3Q19 (17) › PBT of (225m) excluding 57m gains from accounting asymmetries, 4m of hedge accounting ineffectiveness (65) income and a 4m litigation release Profit › Expectin
Slide 22: Capital and leverage ratios
Capital and leverage ratios Total loss-absorbing 88.2 33.3% capacity (TLAC) 1.1.20 requirements1 RWA LRD 9.8% TLAC including 2019 Gone concern rebate and Tier 2- loss-absorbing 37.5 24.9% 14.2% 8.8% related reduction2 capacity 4.2% AT1 16.0 6.1% Going concern 14.3% 5.0% 1.8% Going CET1 10.0% 3.5% co
Slide 23: Swiss SRB leverage ratio requirements
Swiss SRB leverage ratio requirements UBS leverage ratio balance 1.1.20 requirements1 9.78% 4.16% gone concern 8.8% TLAC including 2019 rebate and Tier 2-related reduction TLAC-eligible senior unsecured debt 3.33% (30.1bn) Gone concern 5.0% requirement subject to a rebate of up to Non-Basel III-comp
Slide 24: GWM regional timeseries
GWM regional timeseries 3Q18 4Q18 1Q19 2Q19 3Q19 Americas Operating income 2,264 2,304 2,170 2,272 2,322 Operating expenses 1,922 2,019 1,838 1,904 1,980 Profit before tax 342 284 333 367 342 Cost/income ratio 85% 88% 85% 84% 85% Invested assets (bn) 1,307 1,200 1,298 1,321 1,334 Loans, gross (bn) 5
Slide 25: 3Q19 reported and adjusted performance
3Q19 reported and adjusted performance 1 Adjusted results are non-GAAP financial measures as defined by SEC regulations; 2 Prior-year comparative figures in this table have been restated for the changes in Corporate Center cost and resource allocation to the business divisions and the changes in the
Slide 26: Regional performance – 3Q19
Regional performance – 3Q19 Americas Asia Pacific EMEA Switzerland Global Total 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 GWM 2.3 2.3 0.6 0.6 0.9 0.8 0.4 0.4 (0.0) 0.0 4.1 4.1 P&C - - - - - - 1.0 0.9 - - 1.0 0.9 Operating AM 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 (0.0) - 0.5 0.5 income IB
Slide 27: Performance targets and ambitions 2019 – 2021
Performance targets and ambitions 2019 – 2021 Capital/resource Annual targets Ambitions guidelines FY19 FY19-21 FY21 FY19-21 Reported return on CET1 capital ~15% ~17% Adjusted cost/ income ratio ~77% ~72% Group CET1 capital ratio ~13%1 CET1 leverage ratio ~3.7%2 Adjusted pre-tax profit growth 10-15%
Slide 28: 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 29: GOALS. WHICH IS YOURS?
17 GOALS. WHICH IS YOURS? #TOGETHERBAND champions the UN’s 17 Goals for a sustainable future by bringing together British sustainable fashion brand BOTTLETOP and world leader in financial services UBS. Ratt GOAL 03 GOOD HEALTH AND WELL-BEING GOAL 08 DECENT WORK AND ECONOMIC GROWTH GOAL 13 GOAL 14 GO