Ubs Group Ag · SIX:UBSG
Ubs — Q3 2018 Earnings Presentation
23 slides from Ubs's earnings presentation, Oct 25, 2018
Slide 1: Third quarter 2018 results
2% UBS Third quarter 2018 results 25 October 2018
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements
Slide 3: 3Q18 net profit +32% to CHF 1.2bn
3Q18 net profit! +32% to CHF 1.2bn Solid performance with cost- and capital-efficient growth 437% 1435% 7 10% i Oo] om | sim 0% nc | = es Se ow oa 3 an ie) 75% I army 1 APAC EMEA Switzrond 018 reported Por 3017 reported Per © returns Ip] cost scipline ‘capital strength SD 157% RTE exch OTAS, fo0%8]
Slide 4: 9M18 net profit +19% to CHF 4.0bn
9M18 net profit! +19% to CHF 4.0bn — Highest 9M PBT in a decade saver 22% di 33 14% a om | os 7 ne a on ae a) «26% se | snesomy "So. sm sure reported vot sn reported Por Returns Jose} costcscnine Capital strength 167% ROTE excl OTA, fo5%3| 66 costincome ratio, GEM capital ratio 135% ‘ppt improvement
Slide 5: 9M18 capital generation of 4.1bn
9M18 capital generation of 4.1bn Strongest 9M CET1 capital generation’ since the implementation of Basel Ill in 2013, Strong capital generation Strong capital postion ~07 > repurchased atm sharest Dividend acruatin ne with stated policy Ln increas in ET capital sme cent cn Ter 1 ‘aptal ratio. levera
Slide 6: UBS Group AG results (consolidated)
UBS Group AG results (consolidated) 3017 2918 308 ‘Total operating income ed 7554 aps ‘Total aerating expenses 5508 505 seit zt 1.678 7668 es) , ©. ‘Tax expenaioenet) ma se ae et roti atrouteble to on-contoting terest 2 1 Net profit attributable to shareholders 346 1288 1286 Diutes ES (CHP) 025 om o
Slide 7: Global Wealth Management
Global Wealth Management Client activity affected by equity market performance! emerging Mares cna wong Kong ow um) ee ee er United states Tam 36 oN te i ee) ee) es number intnousnaruniesotnere ince nde sd SEPSEOUS, uoRonSO Eons, SMStaena. MS Cap iterationa SUBS Ecsite aga comoaitecina nangsengona o
Slide 8: Global Wealth Management
Global Wealth Management CHE Uso Decade high in recurring net fee income; challenging quarter for transactions as) os) 2% jon 16% peo Costfincome ratio % 3017 4Q17 1918218 SQt8 UBS Growthin recurring net fee and net interest income partly offset by lowest transaction-based income since the criss Rec
Slide 9: Global Wealth Management
Global Wealth Management Strong recurring net fee income more than offset lower transaction-based income HE Fuso Recurring revenues Se of income Higher Us0 rates, deposit Netinterest ‘margin management and ‘ righer lending balances drove ome (NI) hare Recurring net Record mandate penetration feeinco
Slide 10: Global Wealth Management
Global Wealth Management Net interest income affected by US deposits moving into money market products Netinterest income 20 ; i ae cc) hoe - o 3017 FX Loans Depots interest «2018 ~=*SK:*=*«t SSC‘ Higher «S18 rate hedge funding porttolia costs and ‘expiry and continued higher ‘ag from funding negati
Slide 11: Global Wealth Management
Global Wealth Management HE Fuso reas _— ose wen catia “te “ae a on 0 rm — BE on Be i= a Costfincome ratio, z —— a sm - am ree BE fs roe ae oe ee (iraamecg, \Gaieaeaeal| ‘Be’ Hen aa, G21 ||| >. Wa || BE Fs & Sai ew || See Sea ||| Gat See ||| ee Game || Sao See naar ae no a ote nes tevin caters 2 oat
Slide 12: Personal & Corporate Banking
Personal & Corporate Banking Good performance despite negative interest headwinds Profi before tax br reflects tesient revenues and costcpine een expenses up 2% while absorbing technology and ratio regulatory investments 979859473367 Net interest income resilient despite headwinds from lower rates o
Slide 13: Asset Management
Asset Management Solid performance when normalizing for sale of the fund administration business in 4Q17 _ oy ek ne a 3017 4Qh7 20183018 GSUBS — wreesincrrmensequnesenesctenicinsctes tertosie72 force onatenumberenarctintesrtaton
Slide 14: Investment Bank
Investment Bank Another strong quarter with revenue growth and positive operating leverage He Uso {44% PBT growth underpinned by 7% revenue. oft Grower vey Srony Aeron wh PUT Up 100% Ce en ane = oe . , am cororateient oltion (11% / (12) strength in 1sz7 _fhsoryoffsetbyEeM which hd o stong pot year F
Slide 15: Corporate Center
Corporate Center YoY and QoQ improvement in retained loss Servicestetained P&L improved Group ALMimproved QoQ with risk Non-coreand Legacy Portolo! YoY on lower litigation expenses management net income after continued to benefit from BHlocations stable Valuation gains 307 age 308 so 2018018 xo aoe
Slide 16: New DTA recognition approach from 4Q18
New DTA recognition approach from 4Q18 Changes will improve predictability of earnings; limited effect on P&L, equity and CETI capital expected Profit before tax > We expect to eliminate the 7-year measurement period a recognize DTAs for the US IHC tax group to reflect the ful life Of the underlying
Slide 17: Capital and leverage ratios
Capital and leverage ratios Loss-absorbing capacity Capital ratio Total lowabsobing 7e4 902 capocty LAG th 2 Gone conceen loss absorbing capacty ing concer art Gong “aptal | ETE 20987 30918 a8 55 139 20917 30918 2 22 Leverage ratio 3917 20818 RO. bn e598 Numbers nF nies oternsnaeats tert se 2 for et
Slide 18: Appendix
Appendix
Slide 19: Global Wealth Management excl. US
Global Wealth Management ove 1us0 Strong reported profit growth YoY Adjusted Profit before tax ‘Operating income operating expenses Costfincome ratio — ‘oi? oMte GSUBS — wreesincrrmensequnesenesctenicinsctes tertosie72 force onatenumberenarctintesrtaton
Slide 20: Swiss SRB leverage ratio requirements
Swiss SRB leverage ratio requirements [UBS leverage ratio balance! TLACeligible senior te unsecured debe S 38 Ter 2! grandfathered Aihe, tontiapet featene SS B = 50 en mad "2 wblbon 190, we Seen a UBS [Sted cerage at rooms canoe courestonnn gang conarm apsalustotesntcal sat manera fecal cease TAC el
Slide 21: Reported and adjusted performance
Reported and adjusted performance Performance by business division and Corporate Center unit reported and adjusted™ forthe que rd 303.18 Pevenl& Aut Caperate Manage Inset CC Sing ‘Bek _Senic) ow o_o (a7 (65) UBS Peeters af aa chim oa
Slide 22: Regional performance
Regional performance me. me, a. Ga) ae. se ore, he ta SOS atthe wt Soret i a ee enters, SUBS ee Sis tasaseantsic ses eerenaee noon nantononcecwapoeac cas”
Slide 23: Speeches by Sergio P. Ermotti and Kirt Gardner
Third quarter 2018 results 25 October Speeches by Sergio P. Ermotti , Group Chief Executive Officer and Kirt Gardner , Group Chief Financial Officer Sergio P. Ermotti Slide 1 – Cautionary statement about forward-looking statements Thank you, Caroline and good morning everyone. Slide 2 – 3Q18 net pro