Ubs Group Ag · SIX:UBSG
Ubs — Q3 2015 Earnings Presentation
41 slides from Ubs's earnings presentation, Nov 3, 2015
Slide 1: Third quarter 2015 results
&%% UBS confident Third quarter 2015 results November 3, 2015
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements ‘ep ca nme oo ard ing ag omar nf ana perma agate lg ‘ca eof consciom anne neste sean and tre soccer ce omasocun teen once Us sr sees ‘Secon egy nar mgh npn on regan omnes sie andepunay neta lige pr nate om eran (U5 215.1 and ns a amege epi an
Slide 3: 3Q15 highlights - Group
3Q15 highlights - Group Net profit attributable to UBS Group AG shareholders of CHF 2.1 billion Group results + Net profit attributable to shareholders CHF 2,068 million, diluted EPS CHF 0.54 ‘* Reported profit before tax (PBT) CHF 788 million, adjusted PBT CHF 979 million * Achieved CHF 1.0 billion
Slide 4: 3Q15 highlights — Business divisions
3Q15 highlights — Business divisions Solid performance and good risk management in an extremely challenging environment Wealth Management: PBT CHF 698 million and adjusted NNM CHF 3.5 billion’ Continued recurring income growth; mandate penetration up 70 bps QoQ to 27.0% Wealth Management Americas: P
Slide 5: Updated capital and key performance metrics
Updated capital and key performance metrics Basel ill CET ratio RWA Bis tro set 59 “ 143% 236-950 128% 134% 213% 2s 16 oe 38 | 4ors 40183015 Target 401340183015. short to 1015 20155015 shortto ‘medium teem edi term “oxpectation ‘expectation Group RoTE Group resource utilization May 215% > aes ee sou
Slide 6: UBS Group AG results (consolidated)
UBS Group AG results (consolidated) CHE millon 3014 41s 10152015 -3QIS Total operating income 687 675 Bett 7818 7,170 Total operating expenses 7430-632 6134 «6059632 Profit before tax as reported (5a) 40a 2.708 1,759 788 ‘of which wn cre on finances designated at fo value Ce ee ee ‘of which: gai rel
Slide 7: The world's leading wealth management franchise
The world's leading wealth management franchise UBS is the world's faiiest anid fastest growing wealth manager! Invested assets Operating income Profit before tax Brrrrine 16, 110. og 106 3a 26 25 Brie: 24 + B sss San me 3912 3913 3Q14 3Q15 M12 913 9MIa OMIS, 9m12 9M3/9NI4 oS, Superior growth prospe
Slide 8: Wealth Management
Wealth Management PBT CHF 698 million, resilient performance against a backdrop of high market volatility Operating —y4zy yasp 1200 921 202 2008 2398 2028 50) ‘come? @Q2Oe2eoeoo0OQ 1 aration bed 8 ane 28h ans Si nase 130 ase ass 20s Ss an sa Severs tom ote buses ion and Comprar Cate, Hirecont Profit
Slide 9: Wealth Management
Wealth Management Mandate penet Net new money Invested assets duns Sooo ion up 70 bps to 27.0% som aa = + Adjusted NM" CHE 3.5 billion, 1.5% growth aay 27% Fate, with inflows inal regions, despite Oo | | 1a i 415% deleveraging in Asia Pacific caused by high market volatity BODDOWDADG]S - woes mmarra
Slide 10: Wealth Management
Wealth Management Adjusted NNM! positive in all regions, high and improving quality of NNM Europe Asia Pacific Switzerland Emerging markets | _of which: UNNW netnew CO vAdotsd 008 ‘money bas aa, ow romney 2% cay, Ps severe a2 ae Sins critics — DOODD @O02> @OODQ Gross iiiii jiiij margin iii ee ees 36
Slide 11: Wealth Management Americas
Wealth Management Americas PBT up 24% to USD 287 million on record recurring income Operating 174s 1451 1.965 1.898 1.919 14924 1901 1947 1931 tone SSoseeeee Profit 2 gam om 206 28a at before tax into QO@ODOO2OooO 3013 413 1914 2014 301 4 1095 2095 3015 SEUBS “otic meat tn ‘Operating income USD 1,93
Slide 12: Wealth Management Americas
Wealth Management Americas Improved NNM and net margin — 7 [NNM USD 0.5 billion, 0.2% growth . + NM Usp 0.2% growth rate, manly money feflecting net infiows rom fnancal adWsrs, sonata employed for more than one year (1.0%) {2g wanna ath ni pres Invested assets + Invested assets USD 992 billion decli
Slide 13: Wealth Management Americas
Wealth Management Americas Industry-leading productivity per advisor for revenue and invested assets Invested assets and FA productivity Net interest income and lending “BE Anoutzed evene per FASO thousand) i Netioterst come (US0 milion) Se tnvested ass per FA (US0 milion) © rei os (expersedreovery
Slide 14: Retail & Corporate
Retail & Corporate PBT CHF 428 million, all KPIs within target range and best first nine month PBT since 2010 Operating 958531922 928 958 913979 952962 Operating income CHF 964 million income + Net intrest income increased on improved revenues from both lending and deposits * ss + Net credit os expe
Slide 15: Asset Management
Asset Management PBT CHF 137 million, strong net management fees Operating — say income os Operating §— a7 ‘Operating income CHF 502 million + Net management fees increased, mainly de to highet income from traditional investments and Global Rea Estate, aswell as positive currency effects Operating e
Slide 16: Investment Bank
Investment Bank PBT CHF 614 million, strong performance in all ar 2.657 rating income: million Operating oe 2388 uy OPetating income CHF 2.088 income’ 1969 1.919 1+ ICSFRC revenues increated 37% YoY, driven by strong ae Macro performance, with liscipined credit inventory management unchanged VaR and
Slide 17: Investment Bank
Investment Bank Continued efficient and disciplined resource utilization driving strong returns Return on RWA Revenue per unit of VaR Gurblion Carmien so 2019 2012 4913 1914 20142014 4988 1915 2015 2015 1999 20133012 4919 1018 20143018 4014 1015 20153015 — Rerum on WAY Basel? — revenue perunit of Va
Slide 18: Corporate Center
Corporate Center Non-core and Legacy Portfolio LRD! now ~20% of 4Q12 bi Services Operating income 2s © @ ‘Operating expenses wo 2s 28 a, oa ta net allocations omy ax Operating expenses os. Profit before tox Com [Non-core and Legacy Portfolio. Operating income om 679) an, Operating expenses 23350160
Slide 19: Corporate Center cost reductions
Corporate Center cost reductions ~CHF 1.0 billion net cost reductions based on September 2015 annualized exit rate Cumulative annualized net cost reduction’? CHF 10 billion (71) achieved of CaF billon yearend 2095 target cu 09 ion 64%) achieve a of CHE Allon yer and 2013 target 09 Serves and ‘Group
Slide 20: Net tax benefit and deferred tax assets
Net tax benefit and deferred tax assets 5Q15 included net additional recognized deferred tax assets of CHF 1,515 million 3Q15 at fx benefit of CHF 1,295 million ‘Tax loss DTAs'234 eee) we wis i Recognized paiaeas sto ear 3015 taxable profits ee bind aa an “ © G wl ie + Net increase in recognized DTA
Slide 21: Capital and leverage ratios
Capital and leverage ratios Achieved 5.0% Swiss SRB leverage ratio — =n 4.6% 4.7% 5.0% ATIST2 3.4% 3.6% 33% a | Sa5 bison 296 303 30.9 feat 485 a6 ler 1 cap 335 0 365 " = eee oe eee coe mcs aed SB UBS Sosseesoerensperomransanamaeata rene
Slide 22: Capital requirements under revised Swiss TBTF proposal
Capital requirements under revised Swiss TBTF proposal Effective end-2019, with a four-year transitional period starting 1.1.16 EL_Gone concern capital (TLAC) + Overall requirement mirrors the going concern requirement + To be met with ballin instruments (TAQ) + Potential reduction of up to 2% lever
Slide 23: Capital requirements under revised Swiss TBTF proposal
Capital requirements under revised Swiss TBTF proposal We will be compliant from the inception of the new requirements UBS lever 8S postion a of 309.15 Gone concern (TLAC) + 04% (0 bio) xing UBS Gove AG TAC Bon! 1 258 (CH 2 billon UBS AG ur ced an once tt ch eps trap pena th OBS ‘Gio Ab maser of AC
Slide 24: RoTE — implications of revised TBTF proposal
RoTE — implications of revised TBTF proposal RoTE impact of ~5% from ci RoTE impact of revised TBTF (fully applied) 15% [>| 12% Addtional Revised TBTF ATI and TLAC presmitigation Before Additional revised TBTF CET! capital SEUBS “etme eat nim rrying additional CET and loss-absorbing capi RoTE impact
Slide 25: Impact of regulation on RWA
Impact of regulation on RWA Our usable RWA are unchanged, but the calibration of regulatory metries is moving Group RWA ‘of which: Investment Bank RWA. esl fly apie RWA, CH Billion sie i fly applied RWA, CH Bion 230 200 — Previous Operational Reguatory Short to Previous Regulatory Target Tak mur? me
Slide 26: Updated capital and key performance metrics
Updated capital and key performance metrics Basel CET ratio Vy se) RWA uty oped 1 bon) [BIS LRD (uy oos CHF ban) oie 980 rex Bae TN ora ms ae oe 280 4013 4014 3015 Target 403 sou 2015, 1OIS 2015 3015 S828, “neces “Toecnon [Group ROTE (asjivins ) Group costlincome ratio sie.) _LRD andl RWA (ios id Ex
Slide 27: Executing our strategy ...
Executing our strategy ... What we have delivered Management priorities Execution of the 7 7] Solidified position as the world's largest and > fastest growing wealth manager! ... to better serve our clients, to deliver shareholder value and to grow capital returns RUBS “orem nenetmentmn ciate te nen
Slide 28: Appendix
Appendix UBS
Slide 29: Group and business division targets and expectations
Group and business division targets and expectations Ranges for sustainable performance over the cycle! = Net new money growth ate 35% een at 10-15% annual aghusted pretax prt growth Tet new mney growth aie 2% for combined busieses tough tele Adjusted eosincome aio 75858 Netnew busines volume growth
Slide 30: IFRS equity attributable to UBS Group AG shareholders
IFRS equity attributable to UBS Group AG shareholders Equity attributable to UBS Group AG shareholders CHF 54.1 billion 09 movement Total book value per share: 1371 reat Tangible book value pershare: 1204 = ——[ssam}—> 1269 ra 2 1.159 oa 2068 =i —_ 30615 Wetprot foeign Fnac! Cahlow Defined Emploee Te
Slide 31: Swiss SRB Basel III capital and ratios
Swiss SRB Basel Ill capital and ratios 5Q15 fully applied Basel III CET capital ratio 14.5% Fully applied Phase-in = mex nm 28 ; ' 2 oD ®2 @ @D ww GD S38 SQQUBS Tera ecm TTT tect ston tin tt
Slide 32: Swiss SRB leverage ratio
Swiss SRB leverage ratio 5Q15 fully applied Swiss SRB leverage ratio 5.0% Fully applied a “GaN Arh tow ger — pe ae i ino DD ®D Qa] oo @ ®@ @ Total apt reaper + BS Basel leverage rato 3.9% ona fully applied bass (of which CET! 3.386)" + 85 Basel LRO CHF 936 billion on a fully applied basi?
Slide 33: Breakdown of changes in RWA
Breakdown of changes in RWA By type By business division
Slide 34: Breakdown of changes in Swiss SRB LRD
Breakdown of changes in Swiss SRB LRD By business division
Slide 35: Breakdown of changes in BIS LRD
Breakdown of changes in BIS LRD
Slide 36: Corporate Center — Non-core and Legacy Portfolio
Corporate Center — Non-core and Legacy Portfolio Non-core and Legacy Portfolio Swiss SRB LRD down CHF 12 billion in the quarter iin coos by =o einer aed 65% of residual LRD in Rates products » eer i ss a ert —— a Seouritizations 922 22 Ld a 32 32 APSARS B28 09 : 2 » ‘Muni swapsand options 129 06 —s
Slide 37: Retained funding cost
Retained funding cost We continue to expect r ‘Treasury income retained in Corporate Center - Group ALM 2053015 ‘Gross results (excluding accounting asymmetry and other adjustments) 1180 Allocations to business dione aay Go [Net revenues (excluding accounting asymmetty and other adjustments) Cc) ‘of
Slide 38: Corporate Center cost reductions
Corporate Center cost reductions ~CHF 1.0 billion net cost reduction as per September 2015 exit rate Services & ee » “CH 1.9 bition
Slide 39: Regional performance — 3Q15
Regional performance — 3Q15! ‘ton ‘Americas Asia Pacific == EMEA? Switerland Global Total 2015 3015 2015 3015 2015 3015 2015 3015 2015 3015 2095 3015, 0707 os a6 a? 8 kak oo " a: a Fe SS ee) ei ate) at wt tt wt meas as as 8s kts ws www CC oa as os ks wet) 1 UB: See ee ‘Shasta peta cape tt rs enna Sa
Slide 40: Adjusted results
Adjusted results Beara eon pSTETST TE Te RUBS seciortreessinetnictert ats cect gan et ate ps amen een »
Slide 41: Third Quarter 2015 Earnings Call Remarks
UBS Third Quarter 2015 Earnings Call Remarks November 3, 2015 Sergio P. Ermotti (Group CEO): Opening remarks SLIDE 2 – 3Q15 highlights – Group Thank you, Caroline. Good morning everyone. For the quarter, we reported a net profit attributable to UBS shareholders of 2.1 billion francs, which included