Slide 1: First quarter 2021 results and strategic update
First quarter 2021 results and strategic update 27 April 2021
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: Agenda
Agenda 1 1Q21 highlights Ralph Hamers, Group CEO 2 1Q21 financial performance, divisional results and capital Kirt Gardner, Group CFO 3 Unlocking the power of UBS Ralph Hamers, Group CEO 4 Q&A 2
Slide 4: Key messages
Key messages › Building on client momentum with record invested assets and loan balances, and highest transaction-based revenues in a decade across our asset-gathering businesses › 1Q21 PBT 2.3bn, +14% YoY driven by GWM and AM › 1Q21 net profit 1.8bn, +14% YoY including (0.4bn) net impact from the d
Slide 5: Delivering for our clients and driving growth
Delivering for our clients and driving growth… AM P&C GWM GWM GWM IB invested assets loans1 loans transaction-based fee-generating assets Global Banking income income 1,121bn 138bn 219bn 1.2bn 1.3trn 0.8bn 133bn 1.1bn 185bn 832bn 1.0trn 0.5bn 26bn 7.6% 11bn +6% 36bn +48% net new money, net new busin
Slide 6: Building on our strengths to help clients achieve their objectives
…while building on our strengths to help our clients achieve their objectives Invested assets bn +33% 4,229 Collaborating for our clients 3,170 1,121 8bn Net new money from SMA1 initiative in the US 1Q21, AM Asset 832 Management Sustainability integrated into our client offering 3,108 5bn Net sales
Slide 7: 1Q21 results overview
1Q21 results overview Return on CET1 capital 18.2% Target: 12-15% Return on tangible equity 14.0% Cost/income ratio 73.8% Target: 75-78% Group Net profit attributable to shareholders USD 1.8bn CET1 capital ratio 14.0% Guidance: ~13% CET1 leverage ratio 3.89% Guidance: >3.7% Tangible book value per s
Slide 8: 1Q21 net profit USD 1.8bn; 18.2% RoCET1
1Q21 net profit USD 1.8bn; 18.2% RoCET1 Profit before tax m 1Q21 +14% 1,824m 0.49 296 net profit diluted EPS (481) +14% +15% 2,298 475 2,008 18.2% 1.1bn Operating income Operating expenses return on USD volume of shares +10% +8% CET1 capital repurchased YTD +2% due to FX +3% due to FX 31.3.21 14.0%
Slide 9: Executing our cost strategy
Executing our cost strategy Operating expenses bn 6.4 6.0 0.2 5.9 0.3 0.0 1Q20 Costs excl. variable Variable and financial FX 1Q21 and financial advisor advisor compensation compensation 8
Slide 10: Global Wealth Management
Global Wealth Management +16% 1,409 1,218 Profit 880 1,057 864 PBT 1,409m, +16% with YoY profit growth in all regions and records before tax in the Americas and APAC m 4,547 4,848 Operating income +7% reflecting higher recurring net fee and Transaction-based 3,942 4,280 4,277 transaction-based incom
Slide 11: Global Wealth Management
Global Wealth Management Invested assets End of period, bn 3,016 3,108 Solutions & direct investments 2,754 348 337 › Includes direct client holdings of stocks, bonds, money market 2,590 instruments, structured products, FX and precious metals products 321 2,339 315 › Revenues predominantly driven b
Slide 12: Global Wealth Management
Global Wealth Management Recurring net fee income Net interest income Transaction-based income m m m Loans 185 189 201 213 219 bn Deposits 8% 311 315 321 348 337 bn 2,629 2,434 2,341 2,468 2,128 6% (3%) 1,031 1,113 1,183 1,023 962 1,011 997 824 863 776 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q
Slide 13: Personal & Corporate Banking (CHF)
Personal & Corporate Banking (CHF) +11% 322 318 358 305 PBT +11% reflecting credit loss releases compared with credit loss Profit 229 before tax expenses in 1Q20 CHFm 871 850 950 Operating income +9% with record recurring net fee income and 790 896 Transaction- benefitting from a 26m valuation gain
Slide 14: Asset Management
Asset Management +45% 739 401 PBT 227m, +45%; 8th consecutive quarter of YoY PBT growth Profit 571 227 157 157 before tax m 169 Operating income +24% Gain from the sale of a majority stake in Fondcenter › Performance fees +153%, mainly driven by our Hedge 1,162 Fund Businesses 571 774 637 › Net mana
Slide 15: Investment Bank
Investment Bank (42%) RoAE 13% including a 774m loss on the default of a US-based prime Profit 709 632 612 529 brokerage (PB) client; >30% excluding the loss before tax 412 m Global Markets revenues (27%); +11% excluding PB loss › Execution Services 555m, (6%) as higher cash equities was more than o
Slide 16: Capital and leverage ratios
Capital and leverage ratios Total loss-absorbing 100.7 35.0% capacity (TLAC) Requirements RWA LRD bn Gone concern 9.70% loss-absorbing 44.4 15.4% capacity TLAC 24.6% 8.63% 4.27% AT1 15.9 5.5% Going concern 14.0% 4.88% 1.53% Going CET1 9.7% 3.38% concern capital CET1 40.4 14.0% Guidance: ~13% Guidanc
Slide 17: Purpose: Reimagining the power of investing
Purpose Reimagining the power of investing. Connecting people for a better world. 16
Slide 18: Shaping the industry's path towards sustainability
Shaping the industry's path towards sustainability Three focus areas to maximize our impact Net Zero for the 21st century New governance to drive execution › Science-based intermediate targets: › GEB-level leadership to lead firm wide net zero in our own operations by 2025, and sustainability and im
Slide 19: Purpose, client promise, vision and strategic imperatives
Purpose Reimagining the power of investing. Connecting people for a better world. Client promise Vision Strategic imperatives Personalized Convene THE global ecosystem for Clients, Connections, Contributors Relevant investing where thought leadership On-time is impactful, people and ideas are Focus
Slide 20: Delivering the full power of investing to our clients
Delivering the full power of investing to our clients Clients, Connections, Contributors Thought leadership and advice #1 Best Private Banking Services Overall Capacity to fund growth Leading customized investment Personalized and financing solutions > 10% of revenue (~USD 3.5bn) spent on technology
Slide 21: Investing in our most attractive growth markets and segments
Investing in our most attractive growth markets and segments Focus US APAC +12% CAGR +8% CAGR 2.4bn 2.2bn 1.9bn 1.6bn PBT PBT ~30% of ~25% of Group total Group total 2017 2020 2017 2020 › Focus resources to capture entrepreneur opportunity › Expand our leadership through growth opportunities and pri
Slide 22: Levelling up technology as a differentiator
Levelling up technology as a differentiator Technology 2021 onwards Digital native and impact 2016 to 2020 Technology as differentiator Efficiency and stability for our clients and employees Client experience focus with integrated Continued investments to create front and tech teams and beyond a res
Slide 23: Enabling growth by making UBS simpler and more efficient
Enabling growth by making UBS simpler and more efficient Simplification & efficiency Simplify business setup › Streamlined structures and governance enabling maximum time with clients › Operations realigned within business divisions › Footprint and legal entity setup Optimize processes ~1bn p.a. gro
Slide 24: Building on our strong culture to deliver as one firm
Building on our strong culture to deliver as one firm Culture Client centric Fast to adapt Risk aware › Bringing the best of UBS to our clients › Developing a UBS New Way of › Elevated focus on risk management through seamless interfaces and Working to more quickly capture current along strategic re
Slide 25: Delivering on our Purpose
Delivering on our Purpose › Outstanding client franchise with multiple initiatives to deepen relationships and grow We continue to evolve our strategic and › Investing in our most attractive growth markets and client opportunities financial plans › Building on our edge in sustainability We will prov
Slide 26: Purpose, client promise, vision and strategic imperatives
Purpose Reimagining the power of investing. Connecting people for a better world. Client promise Vision Strategic imperatives Personalized Convene THE global ecosystem for Clients, Connections, Contributors Relevant investing where thought leadership On-time is impactful, people and ideas are Focus
Slide 27: Appendix
Appendix 3 UBS
Slide 28: Group results
Group results Group results USDm unless otherwise indicated 1Q20 2Q20 3Q20 4Q20 1Q21 Total operating income 7,934 7,403 8,935 8,117 8,705 of which: credit loss (expense) / release (268) (272) (89) (66) 28 Total operating expenses1 5,926 5,821 6,357 6,132 6,407 Operating profit / (loss) before tax 2,
Slide 29: Global Wealth Management
Global Wealth Management Americas Switzerland EMEA Asia Pacific +23% +17% 467 468 380 11% 398 Profit before tax +4% 287 259 m 184 191 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 Cost/income ratio 81.7% 59.0% 69.9% 46.9% (1.4ppts) +1.7ppts (0.5ppts) (3.0ppts) Invested assets 1,642bn 274bn 613bn 576bn +34
Slide 30: Common equity tier 1 capital
Common equity tier 1 capital Common equity tier 1 capital bn 0.4 0.8 2.3 0.2 0.4 40.4 39.9 31.12.20 Profit before tax Current tax expense Foreign currency Defined benefit plans1 Other2 31.3.21 translation effects 1 Includes the second of three contributions to the Swiss pension plan, as announced in
Slide 31: RWA and LRD
RWA and LRD Risk-weighted assets Leverage ratio denominator By currency bn bn %, as of 31.3.21 of which: (5.6bn) of which: (28.7bn) due to FX due to FX (1.3bn) +1.1bn 289.1 287.8 1,037.1 1,038.2 287.8 1,038.2 31.3 31.2 Off-balance 8% 12% Other 115.3 123.2 sheet items 3% 75.8 75.8 Operational risk Se
Slide 32: IFRS 9 credit loss (expense) / release
IFRS 9 credit loss (expense) / release Credit loss (expense) / release m Stage 1 and 2: 26m net credit loss releases 1Q21 Stage 1 & 2 Stage 3 Total › 13m net release from model and risk parameter updates › 13m net release from a combination of book quality and GWM 4 (2) 3 book size movements P&C 16
Slide 33: 1Q21 results by region
1Q21 results by region Americas Switzerland EMEA Asia Pacific PBT PBT PBT PBT +19% +12% 0.9bn Operating 0.8bn Operating Operating 0.8bn Operating income 0.7bn income income income (42%) 0.5bn 3.2bn 1.9bn (1%) 1.8bn 1.9bn (3%) +12% 0.5bn 0.5bn +4% +12% 0.3bn Operating Operating Operating Operating ex
Slide 34: 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